Absa Smart Alpha Property Fund

Absa Smart Alpha Property Fund, Find Out How It Works

In our guide today, we will briefly discuss the Absa smart alpha property fund in South Africa.

Smart alpha is an investment strategy that combines the best techniques available to investment managers to optimize excess returns and ensure diversified exposure to various risk factors.

The smart alpha property fund uses a value proposition to generate an excess return in the listed property market.

The excess managers have successfully made use of a valuation methodology in an attempt to outperform market capitalized weighted indices.

We will first show you the features of this fund.

Absa Smart Alpha Property Fund

The fund is categorized in the SA real Estate General industry.

You need a minimum lump sum investment of R2 000 and a minimum monthly sum of R200.

The funds have a medium to high-risk profile, and the minimum investment term advised is three years.

The fund invests directly in the individual securities in the FTSE/JSE Africa SA Property Yield Index constituents.

It is a quasi-passive fund that invests in securities predominantly through indices while generating alpha using quantitative asset allocation.

These are the features of the Absa smart alpha fund in South Africa.

What Securities Are Included In The Absa Smart Alpha Property Fund In South Africa

Below are the securities in the fund:

  • Non-equity securities
  • Warrants
  • Property equity
  • Property-related securities listed on exchanges
  • Securities listed in the Real Estate Sector on SA exchanges
  • Property shares
  • Property loan stock 
  • Cash and cash equivalent securities
  • Listed and unlisted financial instruments 

Securities also include participatory interests in collective investment schemes in a property listed on South African exchanges.

These are the securities included in the Absa smart alpha fund in South Africa.

What Are The Risks

There is a risk in liquidity in the event of delays in trading due to insufficient buyers or sellers.

Large market fluctuations may cause a lot of financial loss to the investors.

Investing in real estate securities carries the same risks as investing directly in real estate.

Real estate prices fall and rise in response to factors like local, regional, national economic, and political conditions and the interest rates and tax considerations.

These are the risks of investing with the Absa smart alpha fund in South Africa.

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