GLOBAL INVESTMENT SOLUTIONS

The Aspirant Offshore Equity Portfolio is a concentrated version of the Anchor High Street Equity Portfolio. Due to the long-term view taken in constructing the portfolio, there will be periods where it may differ from the Anchor High Street Equity Portfolio. The portfolio is therefore an aggressive equity portfolio, tailored to the needs and risk profile of young professionals. The portfolio invests in global-listed businesses and is ideal for young investors looking to take on a higher degree of risk, in search of potentially high returns.Being a higher-risk investment, it is appropriate for clients with many years of earnings ahead of them and the ability to take on greater risk.

In order to achieve its objective, the investments normally to be included in the portfolio may comprise a combination of assets in liquid form, money market instruments, bonds, debentures, convertible securities, cash deposits, corporate debt, listed property, preference shares, non-equity securities, equity securities and any other securities which are considered consistent with the portfolio’s primary objective and the inclusion of which the Act my allow from time to time. The portfolio may also, from time to time, invest in listed and unlisted financial instruments. The manager may also include forward currency, interest rate, and exchange rate swap transactions for efficient portfolio management purposes. The maximum effective equity exposure (including international equity) will be 10% and a maximum effective property exposure (including international property) of 25%. The portfolio’s African exposure, excluding South Africa, will always exceed 80% of the portfolio’s asset value.

We aim to achieve this objective by investing in a concentrated portfolio of high-quality, growing companies that are attractively valued. These companies are selected from both developed and emerging markets.

The Fund will invest predominantly in higher-yielding fixed and variable rate securities, including corporate bonds and debentures, with no geographic restrictions and may include emerging market instruments. In addition, the full spectrum of available securities, including non-investment grade paper, may be utilised. The Fund may also invest in a variety of high-yielding securities, including equities, convertible securities as well as instruments that exhibit qualities similar to both debt and equity (mezzanine debt). When they determine that such an investment policy is warranted, the fund managers may invest without limitations in cash and cash equivalents. The use of derivatives within the Fund will be limited to protecting the Fund against currency and market risk and will not be used for speculation or to increase risk within the Fund.

The Anchor BCI Global Flexible Income Fund is a global flexible income portfolio with the objective of achieving a higher return than US dollar fixed-term bank deposits. Investments to be acquired for the portfolio may include equity securities, property securities, property related securities, interest-bearing securities and instruments, non-equity securities, money market instruments, preference shares, and assets in liquid form. The portfolio may also invest in participatory interests and other forms of participation in portfolios of collective investment schemes, registered in South Africa (SA) and other similar schemes operated in territories with a regulatory environment which is, to the satisfaction of the manager and trustee, of a sufficient standard to provide investor protection at least equivalent to that in SA and which is consistent with the portfolio’s primary objective. The portfolio’s maximum equity exposure will be limited to 10% of its net asset value. The portfolio may, from time to time, invest in listed and unlisted financial instruments, to achieve its investment objective. The manager may only include forward currency, interest rate, and exchange rate swap transactions for efficient portfolio management purposes.

The portfolio may invest in global and local equity securities, property shares, property related securities listed on exchanges, and assets in liquid form, preference shares, debentures, debenture bonds, money market instruments, and assets in liquid form. The manager may include the following unlisted financial instruments: forward currency, interest rate and exchange rate swap transactions for efficient portfolio management purposes. The portfolio‘s equity exposure will always exceed 80% of its net asset value, and at least 80% of net asset value will be invested outside of South Africa, with no more than 80% exposure to assets of a specific geographical region. The fund aims to maximise the long-term return for investors by way of a global equity portfolio actively investing in companies that create and benefit from advances in technology.

The portfolio is a rand-denominated worldwide fund that has the flexibility to invest in equities, bonds, property, and cash both globally and in South Africa.The heart of our investment philosophy is investing in companies with a durable competitive advantage that are underappreciated by investors and, consequently, trade for less than they are worth. They have enduring qualities and a history of attractive returns on capital. Ideally, they are led by highly talented management teams. The portfolio may, from time to time, invest in listed and unlisted financial instruments. The manager may also include forward currency, interest rate, and exchange rate swap transactions for efficient portfolio management purposes.

The Anchor BCI Worldwide Opportunities Fund focuses on individual stock selection from a bottom-up approach, rather than a top-down investment process. The portfolio’s total equity exposure will always exceed 30% of the portfolio’s net asset value, with the maximum offshore exposure as per regulatory limits. The portfolio’s investment universe consists of local and global equity securities, preference shares, property shares, and property related securities listed on exchanges, non-equity securities, interest-bearing instruments as well as assets in liquid form. The portfolio may also invest in participatory interests and other forms of participation in portfolios of collective investment schemes, or other similar schemes, operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa and which is consistent with the portfolio’s primary objective. The portfolio may, from time to time, invest in listed and unlisted financial instruments, to achieve the portfolio’s investment objective.

A minimum of 75% of the portfolio’s assets will be invested in domestic equities at all times. The portfolio is differentiated by being prepared to invest in “off the radar screen” shares and taking high-conviction positions when a potential winner is identified.

The objective of this portfolio is to create a balanced offshore investment mix, with a combination of equities, government bonds, corporate bonds, property, and cash. The equity portion will range between 50% to 75%, depending on the view of markets. The yield component aims to achieve 2%-4%, while adding some defensiveness to the portfolio mix. The benchmark is 60% MSCI World Index and 40% Bloomberg Barclays Global Aggregate Bond Index.

We aim to achieve this by investing in a concentrated portfolio of high-quality, growing companies that are attractively valued. These companies are selected from both developed and emerging countries.The fund will invest primarily in equity securities, which may include preference shares and other securities with equity characteristics. The fund may also invest indirectly in equity securities through holdings in collective investment schemes.We recommend that investors in the fund have at least a 5-year time horizon.

The Global High Street Equity Portfolio seeks to offer investors long-term capital growth through active stock selection within the global developed equity market. The focus is on quality companies with strong global franchises and long-term growth potential. The portfolio might, from time to time, take exchange traded fund (ETF) positions in high-conviction thematic ideas.

The fund invests in equities, fixed-income securities, cash, real estate investment trusts (REITs) and eligible commodity indices. Primarily, the fund invests in countries with the most significant contribution to global GDP. The net equity exposure will typically be 20%-30% (but never more than 40%) of net asset value (NAV). Listed real estate exposure will typically be 5%-15% (but never more than 25%) of NAV. The remainder of the fund will typically be invested in fixed-income securities and cash. The fund may use financial derivative instruments (including futures and options) for investment or hedging purposes (but not to gain leverage). The fund has the ability to invest in other collective investment schemes and exchange-traded funds (ETFs).