Absa Global Discretionary Portfolios
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Absa Global Discretionary
Portfolios
Absa Global Discretionary Portfolios | Page 2
Absa Global Discretionary Portfolios
Sound investing requires carefully blending art experience, skills and expertise that exist within
and science, where flair needs to be balanced the broader Barclays groups. Equally we are
with rigour. Generating returns helps able to leverage Barclays’ quantitative research
accumulate wealth, understanding risk is critical into global benchmarks, their considerable
to preserving it. Most importantly, matching investment in international manager research,
your needs to an appropriate solution as well as their fundamental economic insights
determines whether or not your expectations into global asset class valuation.
are likely to be met over time.
The portfolios are managed by an investment
Philosophy committee in which multi-management,
portfolio construction and quantitative expertise
is well represented.
Our philosophy towards achieving long-term
growth is risk-based with a strong emphasis on
Guiding principles
your specific circumstances and preferences.
This philosophy is expressed via your strategic
asset allocation which, in turn, is centred on the Absa Global Discretionary Portfolios are based
concepts of diversification and efficiency. on the following key principles:
Efficiency in portfolio construction means
targeting the optimal blend of asset classes to • Risk-based
• Open architecture
generate the highest possible return - for any
given level of risk. • Best-of-breed
• Diversification
• Simplicity
Pedigree
The Absa Global Discretionary Portfolios (GDPs)
are a synthesis of the best of the considerable
The investment process: 3 steps
Derive Strategic Select Managers
Apply Tactical Tilts
Asset Allocation and Funds
Absa Global Discretionary Portfolios | Page 3Strategic Asset Allocation
The GDP solutions are designed to give the • Diversified across seven global asset
flexibility to meet individual investor classes
requirements across both risk and base • Optimised to generate the highest possible
currency, whilst still ensuring consistency of return for a given level of risk
approach. • Choice between USD, GBP and EUR based
portfolios
• Five risk profiles designed to meet a range • Bond portion of each portfolio hedged back
of risk-return objectives to base currency
• Calibrated to our proprietary client risk-
profiling tools
High level asset allocation
Detailed breakdown of global SAA benchmarks*
Asset Class Stable Cautious Balanced Growth Aggressive
US Equities 9% 20% 27.5% 29.5% 35%
UK Equities 1.5% 3.5% 4.5% 5.5% 6%
Japan Equities 2% 3.5% 4.5% 6% 5.5%
Euro Area Equities 3.5% 5.5% 8% 11% 10.5%
Far East ex-Japan Equities 1% 1.5% 2.5% 3% 3%
Emerging Market Equities 3% 8% 12% 15% 17%
Global Gov Bonds 13% 17% 14% 10% 7%
Global Corporate Bonds 7% 9% 7% 5% 4%
Global High Yield Bonds 4% 6.4% 8% 7.2% 7.2%
Emerging Market Bonds 1% 1.6% 2% 1.8% 1.8%
Cash and Short-Term Bonds 55% 24% 10% 6% 3%
Total 100% 100% 100% 100% 100%
*Figures used are for illustrative purposes only
Absa Global Discretionary Portfolios | Page 4Manager Selection Process
Quantitative Qualitative Manager Ongoing
Screening Assessment Selection Monitoring
Quantitative screening Manager selection
Using Mutual Fund and Institutional Due diligence materials are presented to
databases, peer groups are created per the Investm ent Com m ittees, w here
asset class. These peer groups are ranked consideration is given to both the ability of
according to a range of quantitative the managers, as determined by the
factors. Key performance factors include quantitative and qualitative assessments,
skill, consistency and downside risk. as well as the overall blend of managers
within the portfolio. Voting is undertaken
Qualitative assessment by a quorum of members.
A questionnaire is distributed to shortlisted Ongoing monitoring
managers. The responses are analysed and
scored on three main criteria: the team, Ongoing monitoring consists of analysis
the process and consistency of process. against specific performance objectives and
The weighted score determines investment guidelines. The quantitative
candidates eligible for a full on-site due aspect involves ratio analysis, performance
diligence, which involves interviews with attribution, peer group analysis and
the main decision-makers. The final scoring assessm ent of style bias. This is
leads to a recommendation. complemented by the qualitative aspect,
which involves regular manager contact
and a formal manager meeting in person,
at least annually.
Absa Global Discretionary Portfolios | Page 5Portfolio Construction and Review
Fund
Selection
Portfolio
Construction
Portfolio
Monitoring and
Risk Management
Contact Details
Wealth Management, Absa
Tel: +27 (0)11 562 0000
www.absawealth.com
Fees and Charges
Annual platform fees apply as well as underlying asset manager fees, where possible charging of
performance fees may apply. An annual charge is levied for portfolio management and ongoing
advice. A comprehensive breakdown of fees and charges is available upon request and will be
confirmed prior to/at the time of investment.
Investment Minimums
USD 25,000 (or currency equivalent)
Absa Global Discretionary Portfolios | Page 6FAIS Act Notice and Disclaimer Past performance does not guarantee or predict future performance and may not be repeated. The value of investments can go down as well as up. You may not get back the original amount of your investment. Investment products may be subject to investment risks, involving, but not limited to market and currency exchange risks, fluctuations in value and possible loss of principal invested. None of the graphical information in this document takes into account the impact of taxation and assumes that income is reinvested (as appropriate). We remind you that the levels and bases of, and reliefs from taxation can change. Clients should obtain legal/taxation advice particular to their circumstances. This brochure/document/material/report/communication/commentary (“this commentary”) has been prepared by Absa Wealth, a division of Absa Bank Limited (Registration No: 1986/004794/06) (“Absa Wealth”). Any reference to Wealth Management includes its affiliates. Absa Wealth has issued this commentary for information purposes only and you must not regard this as a prospectus for any security or financial product or transaction. Absa Wealth does not expressly, tacitly or by implication represent, recommend or propose that the securities and/or financial or investment products or services (the “Products”) referred to in this commentary are appropriate and/or suitable for your particular investment objectives or financial situation or needs. This commentary is not, nor is it intended to be, advice as defined and/or contemplated in Financial Advisory and Intermediary Services Act, 37 of 2002 (“FAIS”), or any other financial, investment, trading, tax, legal, accounting, retirement, actuarial or other professional advice or service whatsoever (“advice”). All the risks and significant issues related to or associated with the Products are not disclosed and therefore, prior to investing or transacting, you should fully understand the Products and any risks and significant issues related to or associated with them. This commentary is neither an offer to sell nor a solicitation of an offer to buy any of the Products, which shall always be subject to Absa Wealth’s internal approvals and the execution of all requisite documentation between you and Absa Wealth. You have to obtain your own advice prior to making any decision or taking any action based hereon and neither Absa Wealth, nor any affiliate, nor any of their respective officers, directors, partners, or employees (in whose favour this constitutes a stipulation on behalf of another) accepts any liability whatsoever for any direct, indirect or consequential damages or loss arising from any use of or reliance on this publication or its contents, and irrespective of whether or not you have obtained independent advice. Should you be a consumer in terms of the Consumer Protection Act No 68 of 2008, as amended, (i.e. a natural person or an entity with an asset value and annual turnover below R2m) then, the above provisions limit and exclude the liabilities which Wealth Management will have towards you and also place obligations on you. Any South African person or entity wishing to effect a transaction in any information discussed herein should do so only by contacting a representative of Absa Wealth in South Africa, 187 Rivonia Road, East Block, 1st Floor, Morningside, Sandton, Johannesburg, 2196. Absa Wealth A division of Absa Bank Limited Reg No 1986/004794/06 Authorised Financial Services Provider Reg No 523 Registered Credit Provider Reg No NCRCP7 Absa Global Discretionary Portfolios | Page 7
Absa Global Discretionary Portfolios | Page 8 East Block, 1st Floor, 187 Rivonia Road • Tel: +27 (0)11 562 0000 • www.absawealth.com
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