Unit Trusts

The investment goal of the Anchor Accelerator FR Retail Hedge Fund (the fund) is to generate absolute returns in excess of an agreed benchmark of STeFI. The fund will consist of exposure to various local and international financial instruments primarily equities and, at times, derivatives, fixed income, and unlisted instruments. The fund has a medium- to high-risk profile, often with directional market exposure and may have high concentration in gearing. The fund is suitable for sophisticated investors who have a long-term investment horizon and invest primarily in emerging markets, subject to the regulatory limits on offshore exposure.

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.

The investments normally to be included in the portfolio will comprise a combination of assets in liquid form and a combination of gilts and interest-bearing securities, including loan stock, semi-gilts, notes, debentures, debenture bonds, preference shares, money-market instruments, bonds, corporate debt, convertible equities and non-equity securities. 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 Core Income Fund aims to preserve capital, whilst providing income returns higher than those offered by traditional money market portfolios. Investments to be acquired for the portfolio may include assets in liquid form, money market instruments, bonds, fixed deposits, floating-rate instruments, and other interest-earning instruments. The portfolio may also invest in participatory interests and other forms of participation in portfolios of collective investment schemes, registered in South Africa (SA) as well as 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 is consistent with the portfolio’s primary objective. The portfolio may also, from time to time, invest in listed and unlisted financial instruments, in accordance with the provisions of the Act, and the regulations thereto, as amended from time to time, in order to achieve the portfolio’s investment objective. The portfolio may also, from time to time, invest in listed and unlisted financial instruments, in order to achieve its investment objective. The manager may only include forward currency, interest rate, and exchange rate swap transactions for efficient portfolio management purposes. This mandate is more flexible as the average portfolio duration will be longer than that of traditional money market portfolios. To provide relative capital stability, the weighted average modified duration of the underlying assets is limited to a maximum of two years.

The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act. The portfolio’s equity exposure is limited to a maximum of 75% of the portfolio’s net asset value. In order to achieve its objective, those investments normally to be included in the portfolio may comprise a combination of assets in liquid form, money market instruments, interest-bearing securities, bonds, debentures, corporate debt, equity securities, other interest-bearing securities, property securities, preference shares, convertible equities, and non-equity securities. 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. This fund is appropriate for clients who want exposure to Anchor’s capabilities in a solution that is appropriately blended and diversified with other offerings to ensure a more consistent return profile.

The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act. The portfolio’s equity exposure is limited to a maximum of 60% of the portfolio’s net asset value. 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, interest-bearing securities, bonds, debentures, corporate debt, equity securities, other interest-bearing securities, property securities, preference shares, convertible equities, and non-equity securities. 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. This fund is appropriate for clients who want exposure to Anchor’s capabilities in a solution that is appropriately blended and diversified with other offerings to ensure a more consistent return profile.

The portfolio will be managed in compliance with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act. To provide a limited level of capital protection, the portfolio’s equity may be as high as 40% of the portfolio’s net asset value. 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, interest-bearing securities, bonds, debentures, corporate debt, equity securities, other interest-bearing securities, property securities, preference shares, convertible equities and non-equity securities. 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. This fund is appropriate for clients who want exposure to Anchor’s capabilities in a solution that is appropriately blended and diversified with other offerings to ensure a more consistent return profile.

The portfolio’s net equity exposure will be a minimum of 80% of its asset value. The portfolio’s investment universe consists of South African equity securities, preference shares, property shares and property-related securities listed on exchanges, interest-bearing instruments, and assets in liquid form. The portfolio may also invest in participatory interests and other forms of participation in South African collective investment scheme (CIS) portfolios. The portfolio may, from time to time, invest in listed and unlisted financial instruments to achieve the portfolio’s investment objective.

The portfolio is constructed from bottom-up, fundamental research with an investment philosophy that favours quality stocks with superior returns on capital, cash flows, and pricing power. While acceptable valuation is an important component of the stock-selection process, the fund’s style is not “value” – investments will be made in premium-rated stocks, where the growth outlook and quality profile warrants it. The fund will also own shares that are often not well researched, yet offer exceptional valuation-driven opportunities. The quality of companies included is judged by rates of earnings growth, return on capital employed, cash conversion, and the stability of margins. The portfolio may, from time to time, invest in listed and unlisted financial instruments. 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 the portfolio’s net asset value.

Investments to be acquired for the portfolio may include equity securities, property securities, property related securities, interest-bearing securities, non-equity securities, money-market instruments, preference shares and assets in liquid form. The portfolio may, from time to time, invest in listed and unlisted financial instruments. The manager may only include the following unlisted financial instruments for efficient portfolio-management purposes: forward currency, interest rate and exchange rate swap transactions. The portfolio will comply with prudential investment guidelines to the extent allowed for by the Act. However, the portfolio’s equity exposure may be as high as 10% of the portfolio’s net asset value, whilst its property exposure may be as high as 25%.

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 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 fund will be managed in compliance with Regulation-28 investment guidelines. The net equity exposure will range between 0% and 75%. 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, interest-bearing securities, bonds, debentures, corporate debt, equity securities, property securities, preference shares, convertible equities and non-equity securities. The portfolio may 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 fund aims to achieve an above-benchmark total return for investors over the medium- to long-term. The fund will invest at least 80% of the market value of the portfolio in shares listed on the FTSE/JSE Real Estate industry group or a similar sector of an international stock exchange. Up to 10% of the portfolio may be invested in shares outside the property sector in companies that conduct similar business activities in order to achieve the fund’s objective. The portfolio may 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 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.

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 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).

The Anchor Stable FR Retail Hedge Fund (the fund) is a rand-denominated South African long/short equity hedge fund. The primary objective of the fund is to provide a stable return, with as little volatility as possible. The portfolio has a strong focus on capital preservation, targeting an absolute return in excess of cash.