Absa Managed Fund targets

Absa Asset Management is capitalising on its growing status as a value investment leader with the launch of a unit trust fund that leverages the firm’s position as a long-term strategist committed to solid capital appreciation and steady income generation.

The new Absa Managed Fund targets the “feet on the ground” retail investor and will be run by award-winning asset manager Errol Shear, a respected pragmatic value investor whose Absa Select Equity Fund recently won three Raging Bull accolades for category-topping performance over three and five years.

Says Shear: “We detect a new consumer mood after a period of ostentatious consumption and the wake-up call provided by the 2009 recession. After the credit binge, many families are reassessing their lifestyle and long-term needs.

“We see growing demand for solid investment products that act as the core building blocks of the average family’s wealth strategy. The Absa Managed Fund is ideal for this type of saver-investor.”

The new product falls within the prudential managed fund category and conforms to Prudential Investment Guidelines, the Financial Service Board parameters that govern the administration of pension fund investments.

Absa AM has strong category credentials in view of successful penetration of the institutional market by the Absa Managed Life Fund and the award-winning success of the Absa Balanced Fund in the medium equity class.

The maximum equity component of the Absa Managed fund is 75%, though this could be reduced to a low of 45%. Other elements in the mix are bonds as generators of stable income, cash for liquidity and offshore investments for risk diversification.

The fund seeks maximum capital growth and optimum income. The targeted return is CPI plus 6%.

Absa Asset Management is part of Absa Investments, the wealth, stockbroking and private client arm of the Absa financial services group.

Shear adds: “The backing of a group of Absa’s stature carries a lot of weight given today’s consumer mindset. More and more families are looking for solidity and enduring values. Product innovation like this could hardly be better timed.”