The objective of the portfolio is to achieve long-term real capital growth in the value of assets, denominated in rands. The portfolio will hold a diversified portfolio of local hedge funds and aims to achieve returns in excess of consumer inflation plus 4%, after fees.
Who Should Invest
The Fund is suitable for investors with a moderate to high risk profile and those that have a longer investment time horizon. The Fund will hold a diversified portfolio of local hedge funds which may include equity long/short, market neutral, macro, fixed-income and cash mandates. The Fund is designed to have a low correlation/beta relative to fixed income and equity markets.
The Fund targets positive returns in all market conditions. This is done by carefully selecting a range of underlying hedge fund managers who target positive returns in all markets. The hedge funds are selected, after being exposed to a thorough due diligence, to complement one another. Performance of the various strategies will vary in different market conditions, with the combined portfolio benefitting from reduced volatility. The manager alters the allocations to styles and managers based on market expectations going forward.
Risk Indicator = Moderate
Risk Indicator Definition
The fund typically will have a moderate to high equity exposure and will have exposure to offshore markets, which may result in capital volatility over the short term.