ABAM awarded mandate to manage Absa Flexible Fund

Absa Asset Management, fund management arm of the Absa financial services group, has been awarded the mandate to manage the Absa Flexible Fund.

Stephen Arthur has been appointed fund manager. His role as manager of the Absa Rand Protector Fund is unaffected.

The Absa Flexible Fund currently holds R285 million in assets and falls into the domestic asset allocation (flexible) category. The medium-risk collective investment scheme aims to outperform inflation by 4%. The investment mix covers equities, bonds and cash.

Stephen Arthur noted: “We are delighted by the mandate as we see strong growth potential in this segment of the unit trust market. A flexible asset allocation fund such as this has good claim to be a key holding in any individual’s portfolio.

“There is growing realisation at retail level that astute asset allocation is the biggest single long-term driver of wealth creation. Unfortunately, private individuals lack the time and research resources to develop an appropriate asset allocation strategy.

“Well-resourced professionals with strong asset allocation credentials can apply the necessary focus, however. This is where we believe we can add considerable value.”