New global opportunities fund for locals

14 September 2021 | Economics

Arysteq Asset Management recently launched a first of its kind global equity fund for Namibia.

The Arysteq Global Opportunities Fund was established late in 2020 and obtained approval from the Namibia Financial Institutions Supervisory Authority (Namfisa) as a unit trust fund in April this year. Unlike competing global equity funds, this fund is actively managed by a local team of investment experts.

Arysteq Asset Management, established in 2016, was also the first local asset management company to be awarded a N$700 million mandate under the Government Institutions Pension Fund’s (GIPF) asset management incubation programme in 2019.

The Global Opportunities Fund affords investors the opportunity to invest in developed equity markets like the USA, the UK, Europe, Japan, and Hong Kong.

“With the South African rand consistently depreciating over the last 20 years, the Arysteq Global Opportunities Fund allows investors to diversify their investments and enjoy exposure to international currencies in some of the most innovative and well-established markets,” says Arysteq Asset Management managing director Purvance Heuer.

According to Heuer, the fund aims to outperform the MSCI World Index to maximise long-term capital appreciation. This is achieved by investing in listed equities in developed markets globally, allowing investors to achieve a better risk adjusted return.

“Our investment philosophy gives us an edge. It is centred around four key principles, namely liquidity, quality, a margin of safety, and a longer-term view,” Heuer says.

High risk, high return

The Arysteq Global Opportunities Fund is classified as a higher-risk/return investment, ideal for investors who wish to maximise their wealth over the long-term. The top investment positions held in the global fund are Nintendo, BMW, Japan Tobacco, Pfizer, Alibaba, British American Tobacco, Verizon Communications, Roche Holdings, Bank of China and Johnson & Johnson.

Arysteq Asset Management is wholly owned and managed by Namibians. The company has a strong investment culture with eight of 13 staff members forming part of the investment team, making it one of the largest investment teams in Namibia.

The company currently offers investors five investment strategies: Money Market, Balanced, Real Return, SA Equities and Global Equities. The Arysteq Money Market Fund currently ranks number one in the Namibian market, and its South African equity mandates rank 11th out of 85 registered funds.

Although Arysteq Asset Management may appear to be a relatively new company, some of its funds are close to reaching their 3-year performance mark, setting the stage for the company to become a serious contender within the local asset management industry.

Investors who want to maximise their wealth and diversify currency risk, can contact Arysteq Asset Management at [email protected] or 061 238 823