The NAM Medical Absolute Fund is a unit trust portfolio and is managed according to our absolute investment philosophy. The Fund complies with the requirements of the Namibian Medical Aid Funds Act, 1995.
The NAM Medical Absolute Fund takes cognisance of the higher liquidity requirements of medical aid schemes; and the need for asset returns to keep pace (as much as possible) with medical aid inflation.
Investment Strategy
The investment philosophy guiding our absolute return oriented portfolios is one where capital preservation in real terms is of equal importance as return optimisation. The investment approach is focused, with emphasis on bottomup stock selection and strong asset allocation views.
Proprietary quantitative modeling guides the selection of strategic asset allocation models appropriate to the specified risk profile of each absolute portfolio. Tactical calls around the long-term model drive the top-down returns. A benchmark unrelated to peer group performances gives the portfolio manager the freedom to vary asset allocation in direct response to market conditions.
The equity selection within the portfolio also has no reference to a benchmark and stocks are chosen that provide a substantial "margin of safety" to NAM'S fair value. Acceptable liquidity and credit yield enhancement criteria steer bond investments. Active use of derivatives enables us to manage the downside risk. Our investment view is therefore developed through fundamental research and rigorous debate conducted by the absolute team.
The absolute team draws on the same research used in arriving at NAM'S "best houseview" strategy for its traditional balanced portfolios. However, the absolute portfolio manager has substantial flexibility to vary asset composition in such a manner as to reduce the risk profile of the fund.
Investment Objective
The primary investment objective of the NAM Medical Absolute Fund is to provide real return in excess of inflation. The secondary objective is to preserve capital over rolling 12 month periods.
With this strong focus on capital preservation, the portfolio may underperform other asset managers during equity bull markets, while outperforming during equity bear markets. Performance is therefore likely to be countercyclical to that of a traditionally managed portfolio.
Please note that capital preservation is an objective and is not guaranteed..
General Information
• Launch date: 1 November 2007
• Regulation 28: Complies
• Income distribution: Quarterly (March, June, September, December)
• Investment minimum: N$5,000 lump sum and/or N$500 monthly debit order
Benchmark : | Namibian Consumer Price Index |
Aims to outperform: | Consumer Price Index (CPI) plus 4.5% p.a. (gross of fees and taxes) over a rolling 12 month period. |
For more information, contact us, or download fact sheet here.
