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 Absa Capital launches South Africa’s first multi-asset exchange traded funds 

 

MAPPSTM offer exposure to equities, bonds, cash and money market through a single listed ETF

Absa Capital, the investment banking division of Absa Bank Ltd, continues to pioneer the local Exchange Traded Fund (ETF) market with the introduction of South Africa’s first multiple asset class ETFs.

Unlike traditional ETFs, that offer exposure to only one asset class, the groundbreaking NewFunds Multi-Asset Passive Portfolio Solutions (MAPPSTM) 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 on the Johannesburg Stock Exchange.

Vladimir Nedeljkovic, Head of Investments, at Absa Capital said: “MAPPSTM ETFs offer investors a simple, transparent and cost-effective multiple asset class pre-retirement solution. They combine all the benefits of unit trusts with the low cost, ease of purchase and instant pricing benefits of ETFs.”

On May 24, 2011 Absa Capital will be listing two MAPPSTM ETFs:

  • The more conservative NewFunds MAPPSTM Protect contains a portfolio of domestic equities weighted at 40%, government nominal bonds at 15%, government inflation-linked bonds at 35% and cash at 10%.
  • The NewFunds MAPPSTM Growth Fund, which targets higher real returns and will typically exhibit greater volatility than the NewFunds MAPPSTM Protect, will hold a portfolio of domestic equities weighted at 75%, government nominal bonds at 10%, government inflation linked bonds at 10% and cash at 5%.

Liability driven investment manager, Colourfield Liability Solutions (Pty) Ltd provided input into the optimal asset allocation for the MAPPSTM portfolios.

Nedeljkovic added that the MAPPSTM portfolios avoid an additional layer of costs, inherent to an alternative method of gaining diversification across asset classes, by using single-asset ETFs as building blocks.

Furthermore, Nedeljkovic noted that before the creation of the NewFunds MAPPSTM portfolios, an investor wanting to access similar products would normally pay asset management, and often also multi-manager and consulting fees. This makes it an expensive and return-eroding investment.

“The NewFunds MAPPSTM product suite has a sliding scale fee structure starting at just 0.8% per annum dropping to 0.2% per annum for larger investments,” said Nedeljkovic.

Another advantage is that the NewFunds MAPPSTM are fully transparent as opposed to active solutions which tend to only disclose their top five to 10 holdings.

Ends…

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

etf.absacapital.com

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

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 SA.

Issued by:
FD Media & Investor Relations
Kate Kelly
+27 11 214 2407
+27 79 637 4663
kate.kelly@fd.com

For further information contact:
Ammerance Kidson
Manager
Marketing and Corporate Communications
Absa Capital
+27 11 895 6040
+27 82 556 7065
ammerance.kidson@absacapital.com

MAPPSTM offer exposure to equities, bonds, cash and money market through a single listed ETF

Absa Capital, the investment banking division of Absa Bank Ltd, continues to pioneer the local Exchange Traded Fund (ETF) market with the introduction of South Africa’s first multiple asset class ETFs.

Unlike traditional ETFs, that offer exposure to only one asset class, the groundbreaking NewFunds Multi-Asset Passive Portfolio Solutions (MAPPSTM) 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 on the Johannesburg Stock Exchange.

Vladimir Nedeljkovic, Head of Investments, at Absa Capital said: “MAPPSTM ETFs offer investors a simple, transparent and cost-effective multiple asset class pre-retirement solution. They combine all the benefits of unit trusts with the low cost, ease of purchase and instant pricing benefits of ETFs.”

On May 24, 2011 Absa Capital will be listing two MAPPSTM ETFs:

  • The more conservative NewFunds MAPPSTM Protect contains a portfolio of domestic equities weighted at 40%, government nominal bonds at 15%, government inflation-linked bonds at 35% and cash at 10%.
  • The NewFunds MAPPSTM Growth Fund, which targets higher real returns and will typically exhibit greater volatility than the NewFunds MAPPSTM Protect, will hold a portfolio of domestic equities weighted at 75%, government nominal bonds at 10%, government inflation linked bonds at 10% and cash at 5%.

Liability driven investment manager, Colourfield Liability Solutions (Pty) Ltd provided input into the optimal asset allocation for the MAPPSTM portfolios.

Nedeljkovic added that the MAPPSTM portfolios avoid an additional layer of costs, inherent to an alternative method of gaining diversification across asset classes, by using single-asset ETFs as building blocks.

Furthermore, Nedeljkovic noted that before the creation of the NewFunds MAPPSTM portfolios, an investor wanting to access similar products would normally pay asset management, and often also multi-manager and consulting fees. This makes it an expensive and return-eroding investment.

“The NewFunds MAPPSTM product suite has a sliding scale fee structure starting at just 0.8% per annum dropping to 0.2% per annum for larger investments,” said Nedeljkovic.

Another advantage is that the NewFunds MAPPSTM are fully transparent as opposed to active solutions which tend to only disclose their top five to 10 holdings.

Ends…

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

etf.absacapital.com

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

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 SA.

Issued by:
FD Media & Investor Relations
Kate Kelly
+27 11 214 2407
+27 79 637 4663
kate.kelly@fd.com

For further information contact:
Ammerance Kidson
Manager
Marketing and Corporate Communications
Absa Capital
+27 11 895 6040
+27 82 556 7065
ammerance.kidson@absacapital.com

Copyright 2013 Corporate and Investment Banking, Absa. All Rights Reserved. Corporate and Investment Banking is a division of Absa Bank Limited, Reg No. 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider Reg No NCRCP7.