Please provide an overview of the team’s mission and how it fits within Absa’s broader Corporate and Investment Banking (CIB) strategy.
Absa Index and Structured Solutions (AISS) offers clients solutions which fit into three capabilities:
- Index Solutions. Exchange traded products (ETFs, ETPs and AMCs) offering low-cost, seamless and efficient trading.
- Structured Solutions. Pre-packaged solutions that allow retail investors to achieve customised risk-return objectives and enhance their investment opportunities by offering tailored exposure to various asset classes and market conditions.
- Fund Solutions. A range of investment strategies that optimally manage risk and return objectives on a single fund or portfolio
of funds.
What inspired the decision to take traditional investment banking products into the retail market? What opportunities do you see in this space?
By innovating to allow scalable access to retail investors, we create opportunities for our clients to expand their investment universe, achieving better outcomes from both a risk and return perspective. There is currently a very low penetration of these products in retail client investment strategies. An opportunity exists for retail advisors to build better solutions for their clients by taking advantage of tool sets that complement how they have historically worked for clients.
How does Absa CIB support the integration of traditional investment banking products into the retail market?
Part of CIB’s strategy is to be purposeful in how we compete; by identifying attractive growth pockets by geography, segment and product. We identified the retail market as a segment that benefits from the solutions historically offered to institutional investors.
We offer lower minimum investment amounts to retail investors in our Structured Products range monthly, making these products far more accessible. The same is true for our fund-linked solutions where advisors provide customised solutions on a client-by-client basis.
How does Absa CIB’s global reach and expertise enhance innovation and meet the needs of retail clients?
Absa Group is a diversified financial services provider headquartered in Johannesburg with over 41 000 banking professionals and a customer base of over 12-million. Our presence in Africa includes regionally coordinated coverage in 12 markets. We provide global reach through our London and New York offices. The firm leverages its strength in capabilities across the global markets and investment banking disciplines together with internal and external partnerships that ensure retail clients have access to current and relevant solutions.
What role do global markets play in the delivery of retail banking products?
As a part of the broader CIB, the Global Markets division delivers on the strategy to be a leading pan-African bank. The depth of capabilities within Global Markets, the partnerships leveraged both on and outside the continent, our drive to be a digitally powered business and a robust control environment ensure the successful development and delivery of a valuable range of solutions.
How does AISS provide added value to retail clients, and what differentiates it from other players in the market?
AISS distinguishes itself by offering:
- Customisation and flexibility. Clients can test different approaches across a diverse solutions range.
- Comprehensive documentation. Transparency and jargon-free explanations allow a more certain investing experience.
- Advanced trading platforms. Providing relevant data on the performance of investors’ strategies.
- Dedicated support. A diverse response team that covers all aspects of investing journeys.
- Ethical practices. Prioritising investors’ best interests and avoiding conflicts of interest.
Please outline upcoming initiatives or products.
While our structured products have a well-established track record of delivery, we continuously innovate in this space with product or transactional improvements. Our fund solutions are new to market, and will revolutionise how advisors and investors structure their portfolios.
How does this initiative align with Absa’s overall client commitment?
Absa Group aims to be a leading pan-African bank, grounded in its responsibility to serve its clients. This dedication involves a deep understanding of the value provided throughout the entire client relationship. AISS extends the availability of traditional banking products, once exclusive to institutional clients and hedge funds, to retail clients. Consequently, our services allow retail clients to tailor solutions to their needs, granting them the flexibility in defining their own investment goals.
