Amplify’s new hedge funds – aiming for consistent returns in 2025

Amplify Investment Partners has launched two innovative hedge funds aimed at delivering consistent returns while effectively managing volatility. These funds – the Amplify SCI Cautious Retail Hedge Fund and the Amplify SCI Stable Income Retail Hedge Fund – add to a growing portfolio of investment options that showcase Amplify’s unique approach to stable performance and strategic growth.

Building on the success of earlier launches like the Amplify SCI Property Retail Hedge Fund and the Amplify SCI Active Equity Retail Hedge Fund, the company has attracted heightened investor interest. As a result, Amplify’s assets under management have grown significantly, reaching R66bn in 2025 from R46.7bn at the end of 2023.

Introducing Amplify’s new hedge funds

1. Amplify SCI Cautious Retail Hedge Fund

Managed by Southchester Investment Managers, this hedge fund focuses on consistency of returns and liquidity management.

• Investment Philosophy: The fund utilises a conservative, active fixed income strategy. It targets low volatility using a transparent geared fixed interest approach.
• Key Strategy: Returns are generated by trading spreads between fixed and floating investments. Risk is minimised with derivatives hedging and an 80% allocation to high-quality SA government bonds, corporate bonds, and cash equivalents.
• Performance History: Its counterpart, the Southchester Smart Escalator Prescient QIF, has delivered annual after-fee returns of 12.9% since 2017, outperforming its benchmark repo +4%.

Jeleze Hattingh, CIO at Southchester Investment Managers, commented, “This fund offers cautious investors an opportunity to achieve high relative returns with lower risk, thanks to our robust liquidity management and hedging strategies.”

2. Amplify SCI Stable Income Retail Hedge Fund

This fund, managed by Ninety One, aims for a target of ZAR cash +4% over 12 months with a strong focus on absolute returns.

• Investment Portfolio: A mix of SA fixed income assets, listed property, and offshore investments.
• Key Differentiators:
  • Focus on credit, duration, and relative value in the SA bond market.
  • 50% allocation to investment-grade credit for stable yields.
  • Short-term cash positioning when market conditions are uncertain.
• Historical Performance: Since inception in 2004, it has delivered an annual return of 12.9%, exceeding STEFI’s 7.1%.

Portfolio manager Malcolm Charles shared, “Our approach focuses on proprietary analysis and high-conviction positions to exploit market mispricings. This gives us a unique edge in SA’s bond market.”

Why invest in Amplify’s new hedge funds?

Investors are drawn to Amplify’s hedge funds for several compelling reasons:

1. Stable and Consistent Returns
   Both hedge funds are designed to navigate volatility while achieving above-average returns compared to traditional financial indices like STEFI and repo.
2. Diversification Opportunities
   From government bonds to offshore investments, Amplify offers diversified portfolios to match various risk appetites.
3. Experienced Fund Managers
   Managed by industry leaders like Southchester Investment Managers and Ninety One, these funds leverage expertise to ensure low-risk, high-value opportunities.

Market outlook in 2025

Despite a challenging economic landscape, the new hedge funds are uniquely positioned to thrive. Here’s why:

• SA Bond Market Potential: South African bonds remain highly attractive, offering yields that are cheap relative to emerging market peers and inflation.
• Demand for Stability: Conservative investors are seeking consistent returns amid global economic volatility.

As Malcolm Charles explains, “The bumpiest roads are behind us. We’re excited about the opportunities in the bond market—it’s a time for smart, calculated positioning.”

Amplify’s hedge funds pave the way for growth

In 2025, Amplify’s new hedge funds bring innovation, resilience, and reliability into the investment landscape. Whether you’re a cautious investor looking to hedge your risks or someone aiming for stable income through strategic asset allocation, Amplify’s latest funds provide the diversity and expertise you need to grow your portfolio.

For more information on these exciting investment opportunities, visit Amplify Investment Partners.