Absa Capital’s multi-asset exchange traded funds listed

MAPPS offer exposure to equities, bonds, cash and money market through a single listed ETF

Absa Capital, the investment banking division of Absa Bank Ltd, today listed South Africa’s first multi–asset class Exchange Traded Funds (ETFs) on the Johannesburg Stock Exchange.

The new ETFs known as MAPPS (Multi-Asset Passive Portfolio Solutions) allow investors to invest in, and passively track, the performance of a portfolio of equities, government nominal bonds, government inflation bonds and cash - all through the purchase of a single ETF.

Traditionally ETFs have offered exposure to only one asset class.

Vladimir Nedeljkovic, Head of Investments at Absa Capital said there was strong investor interest in MAPPS, with R38m in initial investments, attracted during the initial public offer, and further investments lined up.

“MAPPS ETFs are a very compelling offering for investors. They combine all the benefits of unit trusts with the low cost, ease of purchase, and the instant pricing and trading benefits of ETFs,” said Nedeljkovic.

Two ETFs in the MAPPS stable listed today.

The more conservative MAPPS Protect ETF will trade under the JSE code MAPPSP. The initial listing price was R20.32. It contains a portfolio of domestic equities (40% weighting), government nominal bonds (15% weighting), government inflation-linked bonds (35% weighting), and cash (10% weighting).

The MAPPS Growth Fund ETF listed under the JSE code MAPPSG with a listing price of R10.65. It targets higher real returns and holds a portfolio of domestic equities (75% weighting), government nominal bonds (10% weighting), government inflation linked bonds (10% weighting) and cash (5% weighting).

The asset allocation for the MAPPS portfolios was designed in conjunction with Colourfield Liability Solutions (Pty) Ltd.

MAPPS are Regulation 28 compliant.