Strong Growth at Absa Investments

30 July 2012 Absa Investments

Absa Investments, the asset management and investment arm of the Absa Group, has maintained strong growth in the first half of the year.

An update to investors close on the heels of the interim results published by its parent last week indicates solid growth in investment mandates and increased support from the institutional sector.

Alan Miller, Managing Executive, Absa Investments, noted: “In the year to date, more than R4 billion in new institutional mandates has been awarded to Absa Asset Management (ABAM).

“The mandate mix indicates high regard for a broad range of competencies – some are equity mandates, others focus on absolute returns across asset classes while others tap our listed property expertise.

“The inflow is chiefly attributable to large pension funds advised by consulting actuaries.”

ABAM has now established a “solid five-year track-record”, a key milestone for institutional clients, Miller added.

Single-manager funds had done especially well.

“Another key characteristic of recent inflows is the growth in contractual assets,” said Miller. “They are up more than 11% for the six months to June.

“Commitments into instruments like RAs, living annuities and endowments indicate that our clients are happy to trust Absa Investments with their money for five years or more – a pleasing endorsement.”

Assets under management total almost R180 billion. The contractual savings portion stands at R20 billion.

Service standards and stakeholder engagement were also key performance areas for the investment operation.

Miller pointed out: “A critical customer service measure is the call centre answer-rate. Internationally, the accepted benchmark for prompt and appropriate response is 90%. Our call centre at Absa Investment Management Services recently achieved a rate of 97% – an impressive performance.”

Recent stakeholder engagement initiatives included a national roadshow, featuring presentations in all major centres by senior executives and a comprehensive survey of Absa Investments carried in a leading financial publication.

“Stakeholder feedback was highly positive,” said Miller. “We’ve not only been congratulated on our growth, but our service, communication and open engagement. This is heartening as we’re committed to professional performance in all areas of activity.”

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