Investors show faith in Absa’s internet portal

Even in an uncertain economy, direct, Net-based investors show an ability to take a long term view on investing by committing to saving in unit trusts.

The favourable report card comes from Absa Investments, the investment arm of the Absa banking group and provider of the digital unit trust transaction platform, MyAbsa, an increasingly popular feature of Absa’s internet banking portal.

Since launching in November 2008, transaction volumes have gathered strong traction, says Wayne Dicks, General Manager, Unit Trusts, at Absa Investments.

“Analysis of MyAbsa activity for the year to December 31, 2010, shows that investors in our unit trusts were net buyers by a significant margin,” says Dicks.

“Behaviour of MyAbsa users confirms our view that direct clients using a new technology platform tend to be investors who are well informed and quite knowledgeable about markets, asset classes and their unit trust options.”

Growing Net-based volumes are viewed as confirmation of a key finding of web-based research for Absa Fund Managers that MyAbsa clients are comfortable with site security and convenience.

Dicks predicts continued growth of MyAbsa volumes, as part of an alternative distribution strategy, however he reiterates that the majority of investments placed in Absa’s unit trusts are via financial advisors.

“MyAbsa is suitable for a specific demographic,” he adds. “However, market education and guidance by knowledgeable advice professionals are crucial for the vast majority of consumers”.