ETF CentralETFCentral


Absa Capital

NewFunds Volatility Managed Defensive Equity ETF (NFEDEF)



Summary

Issuer
Absa Capital
Short Code
NFEDEF
Launch Date
1/1/1
Index Tracked
NewFunds/Absa Volatility Managed SA Defensive Equity Index
Ticker Symbol
JSE:NFEDEF


Exposure

Local/Offshore
Local
Asset Class
Equity


Cost

TER
0.50%


Smart Beta

Smart Beta
Yes
Smart Beta Type
Alternative Weighting


Dividends

Distribution Dates
Total Return - dividends are automatically reinvested
Last Dividend Payout
N/A
Next Dividend Payout
N/A


Detailed Description

´╗┐The Portfolio will track and replicate the NewFunds/Absa Volatility Managed SA Defensive Equity Index, an index which allows an Investor to gain full market exposure to a universe of 30 liquid, JSE-listed equity securities selected on a factor specification to low volatility characteristics demonstrated in their performance. The Portfolio will comprise of both equity securities and cash (assets in liquid form), the proportion of which will be determined by the risk management process (the concurrent target volatility control mechanism and drawdown management process). The target volatility control mechanism aims to increase the proportion allocated to equity securities during periods of low volatility; and in turn increases the proportion allocated to cash during periods of high volatility. Specifically, where volatility rises and exceed the target threshold of 8%, the proportion allocated to cash will be increased. Where such volatility decreases, the proportion allocated to equity securities will be increased. The drawdown management process aims to increase allocation to cash during periods where the drawdown of the equity basket approaches 15% i.e. where there is a 15% fall from the most recent price peak. In all instances the trade threshold is set at 10%.