ETFSA Oyster Global AMETF

As Shakespeare put it, ‘The world is your oyster.’ And for retirees and investors seeking global diversification, ETFSA, on 16 April 2026, listed a 100% offshore investment portfolio on the JSE: the Oyster Global AMETF (OYSTER).  The Oyster strategy is 100% allocated to offshore assets utilising ETFs, or index tracking notes (ETNs), issued by leading banks, either purchased directly on foreign markets, or through ‘inward investment’ ETFs listed on the JSE. The Oyster AMETF is classified as in ‘inward investment’ on the JSE, so no foreign exchange restrictions apply to individual, trust, and corporate investors. 

The use of ETFs, listed on the London Stock Exchange (LSE), provides ETFSA as the asset manager, with a larger choice of ETFs than those available on the JSE. Also, by using Irish registered ETFs, there are tax efficiencies which can enhance product efficiency. Finally, the total cost (TERs) associated with many global ETFs can be significantly lower than for similar products, listed on the JSE. 

By buying and holding Oyster constituent ETFs in London, ETFSA can avoid the day-to-day volatility of the rand/dollar exchange rate, which can make a difference, over time, for longer-term investors. 

However, for the purposes of maintaining daily liquidity, brought on by the ease of trading on the JSE, ETFSA maintains a fair portion of the Oyster holdings in rands on the JSE, although the underlying assets are globally based. Also, flows into the ETFSA LA Fund or by investors using its electronic Investor Hub, are such that the portfolio always remains open-ended. There is also increasing investment interest in the Oyster by other investors, including institutional and intermediary companies, so the use of locally secured assets enables the daily liquidity requirements to be accommodated. 

The asset manager also makes use of index tracking notes issued by banks, which provide 100% index tracking results, coupled with low costs. As this is a highly competitive model, the use of notes can improve both tracking performance efficiency, as well as lowering overall costs, which can be crucial in the long run. 

As the Oyster AMETF is a registered Collective Investment Scheme (CIS), the Board Notice 90 requirement of the CISCA Act means that part of the portfolio (20%) has to be invested directly in securities, and not only in other CIS Funds (i.e. ETFs). The notes enable the Board 90 requirement of the FSCA to be fulfilled. 

While this is a new portfolio on the JSE, and therefore has no performance history, the Oyster methodology has been available to members of the ETFSA Living Annuity Fund since August 2024. 

The underlying graph of total investment returns, including the reinvestment of dividends from August 2024 to June 2026, shows that the Oyster portfolio has outperformed its ASISA category peers for the past 12 months or longer periods, but underperformed over a two-year period. 

The asset allocation strategy is based on a formulaic allocation to the various asset classes. This will limit portfolio churn and will focus on the longer-term expectation from these asset classes. The tolerance limits allowed to the asset manager enables a degree of shift among the asset classes, if required, by macro-economic events or through secular market changes. 

The Wealth Oyster portfolio has a strategic asset allocation of 80% growth assets and 20% defensive assets. ETFSA delivers the investment strategy by holding ETFs benchmarking major global indices, including S&P 500, Eurostoxx 600, Nasdaq, MSCI World, ACWI and Bond indices. The portfolio also has an allocation to global themes, currently high-tech and AI. 

The JSE listing of the Oyster AMETF brings with it not only regulatory oversight and transparency, but also instant liquidity for investors wishing to transact in the listed security. Jane Street, the acknowledged global market leaders, are the liquidity providers for the Oyster portfolio.

With global equities having outperformed JSE equity indices in recent times, the Oyster, with its carefully diversified exposure to global asset classes, is a competitive product for retirees and individual investors seeking international investment exposure, with the convenience of a JSE listing. 

Although the Oyster has not been listed for the requisite 12-month period, after which TERs and other information can be formally reported in its monthly fact sheets, it is anticipated that the total
TER will come in at around 50 bps (0.50%) per annum. 

For more information on the Wealth Oyster AMETF, visit the ETFSA website.