Investment Capabilities

ALUWANI Capital Partners offers a suite of investment products that can be blended into any client’s investment strategy to suit a specific objective and risk profile. Clients can access these products either through segregated mandates or via pooled investment vehicles. We fully appreciate the regulatory environment that investors are faced with, and as such, our building block investment approach enables us to tap into our in-house investment skills to

create products that will meet the changing regulatory environment. The following information details our investment capabilities and the products that are available to institutional investors.

Equity & Multi-Asset

Fixed Income Strategies

Frontier Strategies

Medical Fund

Equity and Multi-Asset Class

Our investment approach is style agnostic, with the bottom up process driven by the belief that fundamental intrinsic company valuation is the only basis for sustained long-term performance. We integrate portfolio construction techniques to manage risk and as a tool that allows us to generate competitive, risk-adjusted returns on a consistent basis through any full market cycle.

Equity Fund

This is a specialist equity portfolio that aims to maximise returns over the FTSE/JSE SWIX over time, and is ideally suited to investors with a high risk profile and a tolerance for capital volatility over the short to medium term. The portfolio invests in up to 25 equity securities and such equity securities will not include companies outside of the top 50 companies by market capitalisation on the JSE.

Aluwani Equity Fund

Benchmark

Shareholder Weighted (SWIX) Indices

Performance Target

To outperform the JSE SWIX index and achieve top quartile performance against peers

Investment Horizon

3-5 years

Multi-Asset Class Fund

Our multi-asset class fund is a fully discretionary portfolio that invests both locally and abroad in major asset classes, and aims to achieve consistent superior performance by delivering real returns over the medium to longer term with a strong emphasis on risk management. The fund is suitable for institutional investors seeking an actively managed balanced portfolio with a moderate risk profile. A broad asset allocation range allows the fund to take advantage of asset classes that exhibit low correlation characteristics, thus ensuring there is adequate diversification to enable consistent long term growth throughout the various market cycles.

Multi-Asset Class Fund

Regulation Compliancy

Regulation 28

Benchmark

CPI + 5%

Investment Horizon

3-5 years

Fixed Income

Our approach to managing portfolios is underpinned by a strong philosophy that seeks to consistently deliver superior risk adjusted returns over various market cycles. The philosophy is based on the following three principles: Risk adjusted returns can be maximized by actively extracting value from as many sources as possible; Broad diversification of risk will generate consistent performance in all market conditions and Incremental, consistent alpha that compounds over time ensures a low volatility portfolio that generates competitive active return in a predictable fashion, through all stages of the investment cycle.

Money Market Funds

Our money market portfolios are ideal for investors with a low risk profile who wish to preserve capital but seek returns superior to those of pure cash holdings. The objective is to enhance yield by actively managing interest rate risk and credit risk through the cycle. These portfolios make use of short-dated, investment grade fixed income instruments to deliver a diversified money market solution that is low volatility and high liquidity. The differences between our money market funds are depicted in the tables.

Core Money Market

Enhanced Money Market

Modified Duration

0 – 90 days

0 – 180 days

Maximum Term to Maturity of any Single Instrument

1.5 years

3 years

Return Target

SteFi + 0.5%

SteFi + 1.0%

Bond Funds

ALUWANI Capital Partners currently has one of the most experienced fixed-income teams in South Africa. Our bond funds cater to the various risk and return requirements and are suitable for clients that have a medium risk profile. The investment philosophy employed in managing these portfolios is based on the principle of maximising risk-adjusted returns by extracting value from as many sources as possible through active management. The table below depicts the differences between our bond funds.

Flexible Income

Inflation Linked

Nominal Fund

Credit Fund

Benchmark

SteFi

IGOV ILB

ALBI

SteFi

Performance Target

SteFi + 2%

IGOV + 0.5%

ALBI + 1%

SteFi + 3%

Investment Horizon

3 years

3 years

3 years

3 years

Frontier Strategies

Our Frontier funds seek to provide sustainable risk-adjusted returns over the long-term through the selection of stocks that trade below their intrinsic value. Active management and a disciplined process focused on risk management is core to our approach.

Africa Equity & Fixed Income Funds

The Africa funds are suitable for investors who require investments that offer diversification, significant growth opportunities and low correlation to developed markets. The table below depicts the various Frontier Strategies managed by ALUWANI Capital Partners.

Africa Equity Fund

Africa Fixed Income Fund

Benchmark

MSCI Africa ex-SA Emerging Frontier Markets Index

LIBOR + 5% USD

Investment Target

Outperform the benchmark over rolling 3 years

Absolute net return of 3 month LIBOR + 5% in USD, and to outperform the Standard Bank Africa ex-SA (USD) Index

Investable Universe

Africa ex-SA

Africa ex-SA

Investment Horizon

3 – 5 years

3 – 5 years

Medical Funds

Our medical funds are designed to meet liquidity requirements and specific regulatory stipulations of medical schemes. Given our building block approach to managing multi asset class funds, we are able to tailor make relevant solutions to meet the various investment objectives.

Money Market Fund

Flexible Income Fund

Medical Multi-Asset Fund

Benchmark

SteFi

SteFi

CPI + 4%

Performance Target

SteFi + 0.5%

SteFi + 2%

Outperform the benchmark

Minimum Credit Quality

3 – 5 years

Investment Grade (BBB-)

3 – 5 years

Regulation

Annexure B of Medical Scheme Act

Annexure B of Medical Scheme Act

Annexure B of Medical Scheme Act