Understanding the First Inward-Listed Global Multi-Asset Income AMETF on the JSE
January 2025 | FundHub Insights
On Thursday, 23 January 2025, the TBI team gathered in our Bellville, Cape Town office to ring the bell—an important moment marking the official listing of our TBI Global Multi-Asset Income UCITS ETF – ZAR HEDGED Distributing C Class on the Johannesburg Stock Exchange (JSE).
The occasion was the culmination of months of strategic groundwork aimed at providing South African investors with a way to earn global income without excessive currency risk.
The JSE, home to over 100 ETFs and a thriving exchange-traded market, has seen growing investor appetite for diversified, tax-efficient investment vehicles. However, until now, no inward-listed fund provided both global income exposure and active Rand hedging in a single structure. This ETF bridges that gap, making it easier than ever for local investors to access global markets without the complexities of offshore investing.
A Journey to Smarter Investing
The road to this launch began in February 2023, when we introduced the Global Multi-Asset Income Fund. Since then, our team has been hard at work laying the foundation for this ETF, ensuring it aligns with our mission: helping investors generate sustainable income with capital preservation.
For years, South African investors have had limited options. The local credit market is small and overpriced, forcing many to choose between lower returns or higher risk. Our new ETF offers a well-structured alternative: a globally diversified, income-generating investment with active Rand hedging and strategic risk management.
Eugene Goosen, Portfolio Manager at TBI Investment Managers, explains why this is a game-changer:
“South Africa’s credit market is fundamentally constrained—there are too few assets, and pricing is often inefficient. Investors either accept lower returns or take on excessive risk. Our new ETF offers an alternative: global, diversified, income-generating assets, but without the typical forex volatility.”
A First-of-Its-Kind Investment Option
Unlike conventional local income funds, this ETF provides investors with global diversification while still allowing them to transact in rands on the JSE. It is structured to offer the benefits of multi-asset investing, blending fixed income, equity income, and real assets to achieve stability, yield, and, all this without taking any USD currency risk.
Key Features:
✔ Global Exposure – Investments in high-quality international assets provide access to a broader, more balanced range of opportunities.
✔ Rand Hedging – Hard currency is actively hedged against the South African rand, protecting investors from excessive forex volatility.
✔ Multi-Asset Strategy – The fund includes bonds, equities, and property, balancing risk and return while generating stable income.
✔ Tax-Efficient Income – Foreign dividends are taxed at just 20% for individuals and 0% for companies, significantly enhancing after-tax returns.
✔ ETF Convenience – The inward listing means investors avoid the regulatory and administrative burdens of offshore accounts.
Why Now? The Case for Going Global
Recent market volatility, inflationary pressures, and local economic constraints have made offshore income exposure more relevant than ever. The South African market remains small, concentrated, and increasingly volatile, making a strong case for diversification.
Goosen highlights why this is a particularly timely development:
“Many investors understand the benefits of offshore diversification, but the practical barriers—exchange controls, offshore accounts, and tax complexity—often make it difficult. This ETF removes those roadblocks, making global income investing accessible in a way that simply wasn’t possible before.”
What Financial Managers Should Watch
As with any fund, financial managers should keep an eye on key performance indicators to ensure optimal returns and risk management:
- Asset Allocation: Understanding the distribution across asset classes and global regions.
- Currency Management: Evaluating the effectiveness of hedging strategies.
- Income Generation: Assessing the sustainability and consistency of dividend payouts.
- Market Conditions: Monitoring macroeconomic shifts that influence asset performance.
How This Fund Fits Into an Investment Strategy
For income-focused investors, capital preservation is just as important as yield generation. The TBI Global Multi-Asset Income UCITS ETF has been structured specifically for those who require stable, predictable income without excessive volatility.
Here’s how it compares to conventional options:
| Investment Option | Global Exposure | Currency Risk | Income Focus | Tax Efficiency |
| Local Income Fund | Mainly SA credit market with limited global exposure. | Very low currency risk. | Moderate, dependent on interest rates | Interest income taxed at marginal rates |
| Offshore Fixed Income | Global bonds & credit | Full FX exposure | High, but volatile due to forex | Varies by jurisdiction |
| TBI Global Multi-Asset Income ETF | Global, diversified assets | Hedged to ZAR | Sustainable, defensive income | Tax-efficient foreign dividends |
A Thoughtful Approach to Income Investing
By leveraging active management and tactical asset allocation, the fund is designed to navigate international economic cycles effectively. Unlike passive ETFs that track a broad index, this fund is managed dynamically, allowing it to adjust allocations based on market conditions.
This means that instead of relying solely on South African interest income, which is taxed at high rates and vulnerable to rate fluctuations, the fund prioritises global income-generating assets and capital appreciation—a more sustainable and tax-efficient strategy.
Final Thoughts: A Smarter Alternative for Cautious Investors
For South Africans looking to diversify income streams without taking on the full risk of offshore currency volatility, this ETF provides a well-structured, accessible, and tax-efficient solution.
“This ETF is a fundamental shift in how South African investors can approach offshore income. It’s a better, more resilient way to invest in global assets while keeping control of currency exposure,’’ says Goosen.
For more information, visit tbi.co.za or speak to your financial advisor about how this fund could fit into your investment strategy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial professional before making investment decisions.
