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Author Topic: Interesting presentation from ABSA stockbrokers last night  (Read 8073 times)

Patrick

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Interesting presentation from ABSA stockbrokers last night
« on: November 05, 2015, 08:24:23 am »
I went to one of their seminars. This one was called "Build better portfolios using ETFs", so it was right up my alley.
Points of interest:
  • I asked how they were able to keep their ETF fees so low, everyone else is +-0.4%, DBX is nearly 1%, but the ABSA ETFs are +-0.13%. Their answer - "We provide them at cost to encourage investing". Whether or not that's true is debatable, but they are three times cheaper than anyone else.
  • ABSA has launched a new ETF only account. Just like their TFSA it works on 0.2% commission, the best in SA, there are no monthly fees, but it has a R20 minimum, so ideally you would only use it if you trade R10 000 a month or more. The break even point comes in at R8000 a month. Invest more than that in ETFs and you want to be with ABSA, less than that then easy equities wins.
  • The TFSA has no minimum because the JSE offers a discount on their fees for TFSAs.
  • Afterwards I asked one of the ABSA ETF staff when they were going to launch a competitor to the DBX trackers. I said it they could do that, at reasonable fees they'd have people throwing money at them. Apparently it's on the cards. During the discussion he also mentioned that ABSA wants to put themselves into the market as a kind of a local Vanguard. Yes surprisingly they know of Vanguard, and know that the low profit high volume model works for them.
  • And the big topic of the night. If they are to be believed, ABSA will be launching international trading on 28 global markets by the end of November. There will be no additional monthly fees, and trading fees will be based on the destination market. You will first have to convert your Rand into Dollars or Euros, and ensure you don't go over your R1m allowance, then transfer into their foreign currency account, but after that you can buy pretty much whatever you want globally. I'm going to keep an eye out for that one.
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marguerittereed

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Re: Interesting presentation from ABSA stockbrokers last night
« Reply #1 on: November 05, 2015, 08:37:20 am »
Did you learn about any new ETF's that rock your boat!! :LHST: :LHST:
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devan

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Re: Interesting presentation from ABSA stockbrokers last night
« Reply #2 on: November 06, 2015, 02:41:43 pm »
thanks for the update Patrick.
Also looking forward to be able to buy globally
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Patrick

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Re: Interesting presentation from ABSA stockbrokers last night
« Reply #3 on: November 09, 2015, 10:22:31 am »
Changes seem to be appearing slowly but surely:
https://www.absastockbrokers.co.za/absa-public/baFaqs.xsp#what_does_absa_stockbrokers_offer
Quote
What does Absa Stockbrokers offer?

Absa Stockbrokers offers clients various products, from investing locally and offshore (coming soon). Our Smart Account allows you to invest in all local JSE™-listed equities (shares), warrants, share instalments and all Exchange Traded Funds (ETFs) and over 25 offshore exchanges. The product range expands to the Tax-Free Savings account and ETF Only. Click on our Products Tab to find out more.

Unfortunately the products page just says "Coming soon".
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erwintwr

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Re: Interesting presentation from ABSA stockbrokers last night
« Reply #4 on: November 09, 2015, 04:28:00 pm »
interesting update Patrick.

Thx for sharing!
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