ABSA NewFunds Volatility Managed Moderate Equity
This ETF has delivered -3.55% on a year-to-date (y-t-d) basis as at 30 September 2022, underperforming relative to its benchmark, the NewFunds/Absa Volatility Managed SA Moderate Equity Index which was at -0.10%. The fund has seen pressure in companies such as Vodacom and Capitec while Gold Fields remained relatively flat, with British American Tobacco (BAT) having improved on a year-to-date basis.
Geneos Wealth Management Inc lowered its stake in BAT by 18.1% during the second quarter with the institutional investor owning 6,010 shares after offloading 1,329 during the period, as it noted in its disclosure to the Securities and Exchange Commission (SEC). There have also been changes from other institutions in BAT holdings. GQG Partners LLC raised its shares by 91.3% in the period to now own 29,035,870 shares. Capital International Investors also increased its holdings by 12.6% in the first quarter to own 9,449,045 shares while Bank of America raised its shareholding by 20.0% to own 7,132,011 shares. BlackRock Inc upped its holding by 11.6% to own 5,624,861 shares and Arrowstreet Capital raised its stake in BAT by 8.6% to own 4,311,628 shares. According to Refinitiv, hedge funds and other institutional investors own 6.70% of the company’s stock.
The fund tracks and replicates the NewFunds/Absa Volatility Managed SA Moderate Equity Index. This index allows investors to gain full market exposure to a universe of 25 liquid, JSE-listed equity securities selected on a 50/50 factor specification to momentum and low volatility characteristics demonstrated in their performance. The fund consists of both equity securities and cash (assets in liquid form), the proportion of which is determined by the risk management process (the concurrent target volatility control mechanism and drawdown management process). Its three-year tracking error (the standard deviation of ETF returns minus benchmark returns) of 0.33% suggests that any given return deviation from the benchmark may be an additional 0.33% higher or lower. This tracking error is better than both its peer, NewFunds Volatility Managed Defensive Equity ETF (1.13%) and NewFunds Volatility Managed High Growth Equity ETF (0.47%) as at 30 September 2022.
Fund suitability
Fees
Top Holdings
New to investing and want to learn more about other ETFs?
Read: Top Fund Picks for December
Background: Exchange-traded funds (ETFs)
Exchange-traded funds (ETFs) are passively managed investment funds that track the performance of a basket of pre-determined assets. They are traded the same way as shares and the main difference is that whereas one share gives exposure to one company, an ETF gives exposure to numerous companies in a single transaction. ETFs can be traded through your broker in the same way as shares, say, on the EasyEquities platform. In addition, they qualify for the tax-free savings account, where both capital and income gains accumulate tax free.
Benefits of ETFs
Disclaimer
This research report was issued by Intellidex (Pty) Ltd. Intellidex aims to deliver impartial and objective assessments of securities, companies or other subjects. This document is issued for information purposes only and is not an offer to purchase or sell investments or related financial instruments. Individuals should undertake their own analysis and/or seek professional advice based on their specific needs before purchasing or selling investments. The information contained in this report is based on sources that Intellidex believes to be reliable, but Intellidex makes no representations or warranties regarding the completeness, accuracy or reliability of any information, facts, estimates, forecasts or opinions contained in this document. The information, opinions, estimates, assumptions, target prices and forecasts could change at any time without prior notice. Intellidex is under no obligation to inform any recipient of this document of any such changes. Intellidex, its directors, officers, staff, agents or associates shall have no liability for any loss or damage of any nature arising from the use of this document.
Remuneration
The opinions or recommendations contained in this report represent the true views of the analyst(s) responsible for preparing the report. The analyst’s remuneration is not affected by the opinions or recommendations contained in this report, although his/her remuneration may be affected by the overall quality of their research, feedback from clients and the financial performance of Intellidex (Pty) Ltd.
Intellidex staff may hold positions in financial instruments or derivatives thereof which are discussed in this document. Trades by staff are subject to Intellidex’s code of conduct which can be obtained by emailing mail@intellidex.coza.
Intellidex may also have, or be seeking to have, a consulting or other professional relationship with the companies mentioned in this report.