In our guide today, we will show you how the Absa property equity fund in South Africa.
This fund is suitable for investors who want a regular income stream from their capital base and seek an asset class with lower volatility and lower return correlation to a pure equity fund.
The fund is benchmarked by FTSE/JSE All Property Index and managed by Anton de Goede and Mauro Longano.
The fund was launched on 20th November 2000 and has a fund size of R1.1 billion.
We will start by showing you an overview of the fund.
What Is The Fund Overview
The fund maximizes long-term growth from investing in South African listed properties.
The fund has been a top-quartile performer since it was launched in 2000.
R100 000 invested at the time the fund was launched would have grown to R1 274 403 as of the end of January 2022.
The fund return is 1.8%, and the benchmark return is 13.0%.
This is the overview of the Absa property equity fund in South Africa.
Absa Property Equity Fund
The fund is categorized under the SA -Real Estate General industry.
The minimum lump sum investment with this fund is R2 000, and the minimum monthly contribution is R200.
The majority of the assets in this fund are invested in South African investment markets.
The fund invests in securities of a property equity nature and non-equity shares.
The fund is ideal for medium to long-term investments and allows diversification from general equity shares.
The advisable investment term is at least three years.
There are higher risks than the traditional fixed interest or the income fund.
This is how the Absa property equity fund works in South Africa.
What Are The Risks
Insufficient buyers or sellers cause liquidity challenges to this fund.
The large fluctuation in the value of the fund causes large financial losses.
Investment in property securities is a risk since the prices rise and fall in response to factors like local, regional, national economic, and political conditions.
Interest rates and taxation also have a great impact on real estate securities.
This is all you need to know about the Absa property equity fund in South Africa.