Why Actively Managed Fixed Income ETFs Make Sense in Today’s Market

South Africa’s latest Medium-Term Budget Policy Statement (MTBPS) arrived at an important moment for investors. It delivered a stronger-than-expected set of signals: credible fiscal reform, greater budget discipline and progress across several key structural areas. It also moved the country closer to a formal 3% inflation target, a meaningful step toward a more predictable, rule-based policy environment.

For income-oriented investors, these developments matter. Lower, more stable inflation tends to mean lower interest rates over time. And when interest rates fall, the returns available on cash come down immediately. At a time when South African households are holding record levels of cash in bank deposits, understandable given recent uncertainty, this capital is not going to continue earning the returns investors have become accustomed to.

This raises an important question: How do you keep capital accessible and low-risk, whilst keeping that capital productive?

This is where income-focused actively managed ETFs (AMETFs) offer valuable balance. They blend the convenience of ETFs – intraday trading, flexibility, low minimums – with the oversight and judgement of active portfolio management.

Instead of tracking a single index, these strategies are actively managed by the investment teams to adjust allocations, manage risk and take advantage of opportunities across fixed income markets and instruments.

The role of fixed income-focused ETFs in portfolios today

Even as global and local risk appetite improves, there is still an important place for low-volatility income strategies. Markets do not move in straight lines; volatility tends to reappear when investors least expect it. Actively managed fixed income ETFs provide a stabilising component, something that can smooth returns during transitions, without forcing investors into higher-risk assets before they are ready.

A key consideration is whether “parked cash” represents a replacement for fixed income strategies or something additional. For many investors, cash is the holding place while they wait for clarity. But cash is not an income strategy, and in a downward-trending interest rate environment, it becomes progressively less rewarding. While capital is not guaranteed, actively managed fixed income ETFs give investors a way to remain liquid, while still earning a more meaningful, risk-managed income over time.

These strategies can also help investors stay ready for future opportunities. By targeting a higher steadier return than cash, they offer an income boost that can complement growth assets, while still keeping capital available for redeployment. And because they blend different types of fixed income exposures, they often come with lower drawdown potential than single-asset strategies.

Where Ninety One’s AMETFs fit in

91DINC – Ninety One Diversified Income Prescient Feeder Actively Managed Exchange-traded Fund (ZAR-based)

91DINC gives you access to Ninety One’s well-established multi-asset income strategy in a listed format, targeting stable, enhanced cash returns with downside risk management. The portfolio is Regulation 28 compliant and diversified across local bonds, credit, cash, property and offshore assets, with a strong focus on income generation and capital preservation.

91GINC – Ninety One Global Diversified Income Prescient Feeder Actively Managed Exchange-traded Fund (ZAR feeder into USD fund)

91GINC offers offshore diversification through a global, low-duration, multi-asset income strategy aiming to deliver US dollar cash +1.5% over rolling 12-month periods, with no negative returns, also over rolling 12 months. With a focus on high-quality fixed income assets and built-in currency diversification, the Fund seeks to deliver consistent yield while limiting drawdowns.

Both can sit at the centre of an investor’s liquid, income-generating allocation, helping to keep portfolios productive while maintaining optionality.

A way to stay invested, even when life is shifting

As my family navigates our relocation from Johannesburg to Cape Town, we’ll experience this firsthand. The proceeds from our home sale need to remain accessible as we search for the right property, but that doesn’t mean they should sit idle. Placing that capital in an actively managed fixed income ETF allows me to keep it working, while still being ready to act when we’re ready to invest in our new home.

In a world where interest rates are likely to drift lower and investors are looking for more thoughtful ways to position themselves, fixed-income-focused AMETFs offer a modern, intuitive way to stay invested and stay flexible, without compromising on caution or liquidity.

Learn More

We sat down with their team to unpack the thinking behind the launch.

If you’re curious about the AMETF space or just want to hear directly from the team behind the funds, this is a great place to start. Invest in one or both of the AMETFs before 12 December 2025 and you could win R91 000 to invest with. Ts&Cs Apply.

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