Caution right on the money for Absa Multi Management

Caution has a lot to be said for in the current uncertain market as confirmed by the recent success of a unit trust with one of the most unexciting names in the financial services sector.

The Absa Cautious Fund of Funds launched at the end of 2009 by Absa Multi Management (AMM) maintained a top quartile position in its category during both the first and second quarters of 2010.

It is measured against the mean performance of all low equity asset allocation South African collective investment schemes and showed positive returns up to mid-year when many funds lost money.

The Cautious Fund of Fund favours a conservative asset allocation approach and in recent months has stepped up its defensive position.

Johan Gouws, AMM Chief Investment Officer, noted: “The fund name may seem unexciting to some, but it strikes a chord with many investors who simply want to achieve a real return against inflation and are happy to leave it up to the experts to smooth out market volatility and get the asset weightings right.

“We only launched Absa Cautious late last year and have received steady inflows ever since with the fund size growing by more than 50% in the last six months. It has met all our expectations. Its success confirms our reading of the current investor mood.”