Absa Tactical Income Fund

Absa Tactical Income Fund, How It Works & Benefits

In our guide today, we will briefly discuss the Absa tactical income fund in South Africa.

This fund aims to deliver higher risk-adjusted returns than a traditional money market or pure income portfolio.

While at it, the fund aims to preserve capital over a twelve-month rolling period.

This fund actively manages exposure to the South African yield curve based on the interest rate cycle.

We will first show you the requirements to apply for this fund in South Africa.

Requirements to Apply For Absa Tactical Income Fund In South Africa

Below are the basic requirements to apply for this fund:

  • a south African ID signed three times
  • a birth certificate if you are below 18 years
  • proof of address such as a lease or rent agreement not older than three months 
  • submit your tax number or that of a guardian if you are not of the legal age
  • submit proof of income If you are not an Absa client

These are the requirements to apply for the Absa tactical income fund in South Africa.

What Are The Features

The fund is not in any way constrained by a particular fixed-interest benchmark weighting.

The duration characteristics of this fund may be that of a money market fund, pure income fund, or a combination of the two.

The strategy allows benefits from reduced risk and improved returns on a cycle-adjusted basis.

The minimum investment deposit is R2 00, and the minimum monthly contribution is R200.

You must invest in the fund for a minimum of one year.

These are the features of the tactical income fund in South Africa.

Absa Tactical Income Fund

This fund is managed actively to allow cycle-based tactical allocations along the yield curve specific to prevailing market conditions.

The fund looks to achieve risk-adjusted-performance returns in r=excess of money market yields or traditional yield.

Its success, therefore, depends on the interest rate cycle.

Securities used in this fund include liquid form assets, interest-bearing securities, and other non-equity securities acquired on the exchange.

The allocation of securities follows the ASISA SA Multi assets income category limits.

All the listed and unlisted instruments should be acquired at fair market prices.

This is all you need to know about Absa tactical income fund in South Africa.

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