We also manage segregated funds on an absolute return basis. The absolute return strategy essentially combines flexible asset allocation, stock selection, uncorrelated asset classes and derivatives. In terms of this strategy exposure to equity securities, interest-bearing securities, financial instruments and liquid assets is managed defensively. Our approach actively uses both asset allocation and security selection to maximize returns while limiting the downside risk of the portfolio.
Stock-picking, one of our core competencies is a skill which plays a significant role in absolute return portfolios, both in the generation of excess returns and the protection of capital. The equity selection process is active and bottom-up. However, all instruments (equities, bonds and listed property) are selected with an emphasis on downside risk. The greater focus on risk management required in managing an absolute portfolio may limit exposure to equity markets and investors should be prepared to sacrifice an element of return in the early stages of an equity bull run.
Investment on behalf of the portfolio in offshore investments is allowed for as legislation permits. Investment in interest bearing securities in currency of a country, other than Namibia, will only be included if it complies with a grading of A and higher from Standard & Poor's and/ or Moody’s, provided further that if the grading of an instrument differs between the rating agencies the lowest of the two gradings will apply.
Absolute Medical Aid Fund
