Absa Fund Managers, the unit-trust management company within Absa Investments, has launched four new funds to complement its existing range of unit trusts.
The Absa Absolute Fund, which is ideal for cautious investors seeking a real return with relatively low capital risk, has an investment objective of inflation plus 4%.
The other three, collectively known as the Absa Offshore Income Funds, provide investors with a choice of dollars, pounds and euros.
Capital volatility within the funds will be low so that funds are pure currency hedges. The unique feature is that investors may choose to have exposure to one, two or three of the world’s major currencies. Because the funds are rand-based, no South African Reserve Bank or South African Revenue Service approval is required.
Absa Asset Management (formerly Abvest), the institutional asset manager in Absa Investments, has been appointed to manage the four portfolios. The company manages a range of unit trusts for Absa, including the R48-billion Absa Money Market Fund and various equity funds.
Alan Miller, managing executive of Absa Investments, said the change of name from Abvest to Absa Asset Management follows the acquisition by Absa of a 30% outside shareholding in Absa Asset Management.
“Abvest was an appropriate name when we had a minority shareholder. Now that the company is wholly owned by Absa, we are proud to give it the Absa name,” Miller said.
Absa Asset Management is one of six companies comprising Absa Investments. The others are Absa Fund Managers, Absa Investment Management Services, Absa Stockbrokers, Absa Portfolio Managers and Absa Mortgage Fund Managers.
“We appreciate the immense strength of the Absa brand and it is important to us that all our companies should carry the Absa name,” said Miller.
Miller added that Absa’s association with Barclays is a further advantage because Barclays has a powerful international presence in asset management. He said the potential for synergies between Absa Investments and Barclays are unlimited.
“While we have begun incorporating some of Barclays’ offshore offerings into our product range, this is just the tip of the iceberg. Sharing ideas and investment strategies will enhance all of our companies over time,” he said. — I-Net Bridge