Sustainability Fund

Fund Investment Objectives

The Africa Sustainability Fund is a long-only, 50-stock equity portfolio diversified across African geographies, currencies, sectors and companies. The fund employs a Market-Value-Independent (MVI) strategy with a sustainability overlay. The MVI strategy is based on fundamental financial factors (revenue, operating cash flow, shareholder equity and cash dividends) and seeks to avoid the structural flaw of market-capitalisation indices (whereby overpriced stocks are systematically over-weighted). As price is not a determinant in the portfolio's construction, the investment process seeks to minimise participation in sector / theme bubbles. The sustainability overlay is based on country and company sustainability ratings that are derived from in-house proprietary research. The country and company sustainability assessments have the net effect of aggressively up-weighting the stocks and currencies in the most sustainably managed companies and countries (and vice versa). The Fund will be a long-only equity Fund based on market value independent data and sustainability assessment ratings (country and company) and will not engage in any leverage, borrowing or derivatives investment activities. Investing directly in listed African equity securities will allow the Fund to pass on the economic benefits of lower costs on to clients in the form of higher net-of-fee returns. There is no incentive fee.