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.
Note to the editor:
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
About Absa Capital ETFs and Index Products
Absa Capital is a leading originator of exchange traded funds (ETFs) in the South African market. Absa Capital ETFs are listed on the JSE Ltd and can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the FTSE/JSE Top 40 Index, a market sector such as resources or financials, or a commodity such as gold.
About Colourfield Issued by:
Colourfield Liability Solutions (Pty) Ltd is SA’s largest liability driven investment management boutique. Colourfield focuses on creating cost effective, innovative retirement solutions and has had a successful track record in de-risking some of the largest defined benefit pension funds in South Africa.
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