Absa Multi Managed Core Accumulation Fund: Investment Insight
October 10, 2023 by JoyAnswer.org, Category : Finance
What is Absa multi managed core accumulation fund? Discover information about the Absa Multi Managed Core Accumulation Fund, an investment fund, and its role in financial planning.
What is Absa multi managed core accumulation fund?
The Absa Multi Managed Core Accumulation Fund is a unit trust offered by Absa Fund Managers in South Africa. Here are some key details about this fund:
- Investment Objective: The fund aims to provide moderate to high long-term capital growth by investing in a mix of asset classes.
- Asset Allocation: The fund invests in equities, bonds, money market instruments and listed property both locally and abroad. Typically 65-75% equities, 15-25% bonds and cash, 5-10% listed property.
- Fund Managers: The fund is managed by a team of Absa fund managers and sub-advisors.
- Investment Approach: The fund follows a core investment approach with exposure across various asset classes. The equities portion invests in a mix of value and growth stocks.
- Benchmark: The fund's performance is measured against a composite benchmark of 75% equities and 25% bonds.
- Risk Profile: The fund has a moderate to high risk profile due to the majority exposure to volatile equities. It suits investors with 5+ years investment horizon.
- Fund Size: As of January 2023, the fund has over R2.3 billion assets under management.
- Fees: Ongoing annual fees of 1.44% is charged on the fund.
So in summary, it is a multi-asset domestic and international fund meant for long-term capital growth for investors with higher risk tolerance. Being actively managed by Absa Fund Managers, it provides diversified exposure across various asset classes.
The Absa Multi Managed Core Accumulation Fund is a diversified mutual fund that invests in a variety of asset classes, including equities, bonds, and cash. The fund is managed by a team of experienced investment professionals who aim to generate capital growth over the medium to long term.
The fund's investment strategy is based on the following principles:
- Diversification: The fund invests in a variety of asset classes to reduce risk. This means that if one asset class performs poorly, the other asset classes may help to offset the losses.
- Asset allocation: The fund's asset allocation is dynamically managed to reflect the changing market conditions. This means that the fund managers may adjust the mix of assets in the fund to take advantage of opportunities and to reduce risk.
- Risk management: The fund managers use a variety of risk management techniques to protect the fund's capital. This includes setting limits on the fund's exposure to any one asset class or sector.
The Absa Multi Managed Core Accumulation Fund is a good option for investors who are looking for a diversified fund that offers the potential for capital growth over the medium to long term. The fund is suitable for investors with a moderate risk tolerance.
Here are some of the benefits of investing in the Absa Multi Managed Core Accumulation Fund:
- Diversification: The fund is diversified across a variety of asset classes, which helps to reduce risk.
- Active management: The fund is managed by a team of experienced investment professionals who actively manage the fund's portfolio to seek capital growth.
- Transparency: The fund provides investors with regular updates on its performance and investment strategy.
- Affordability: The fund has a low management fee, which makes it an affordable investment option.
If you are considering investing in the Absa Multi Managed Core Accumulation Fund, it is important to do your own research and to understand the risks involved. You should also speak to a financial advisor to get personalized advice.
