Absolute Investment Advisors has partnered with active manager St. James Investment for the listing of its first ETF. The holdings of the actively managed ETF will be decided by St. James’s portfolio manager.
The Absolute Core Strategy ETF (ABEQ) is comprised of securities that St James determines to be underpriced across any sector and market-cap.
ABEQ is looking to hold between 20 and 25 companies with each having a limiting weight of 8% and each sector should be no greater than 20%.
The fund does say it may invest a substantial volume of its assets into cash if no underpriced assets are found. So with a price of 0.85%, it could turn out to be a rather expensive current account if valuations are high.