Afrifocus is a level two BEE contributor and registered member of the JSE that manages the Wealth Income Portfolio. The portfolio aims to enhance after-tax yield on cash through longer-term fixed deposits, JSE-listed shares and property with high dividends. It has a medium risk profile and minimum investment of R500,000. The portfolio is actively managed by Afrifocus to identify undervalued companies with forecast dividend yields greater than the market.
1. Afrifocus is a level two contributor with a BEE procurement level of 125.0%, and a registered member of JSE
PERSONAL WEALTH
Investment mandate The portfolio is constructed to enhance the after-tax yield on cash, with a forecast growth
in income.
The full-discretionary, actively managed portfolio is in the investor’s name and is not in a
pooled portfolio or unit trust.
Benchmark Alexander Forbes Money Market Index
Risk Profile Medium risk
Investment Universe Cash on call and on fixed-term deposit, JSE-listed equities, property, preference shares
and bonds
Minimum investment R500 000
Investment horizon The recommended investment term for the portfolio is greater than 3 years.
Tax liability Afrifocus is not a tax advisor, and we would recommend that the investor consults with
his or her tax advisor on potential tax implications arising from an investment in the
product.
Investment strategy The portfolio aims to enhance the yield on a money market deposit, by investing in
longer-term fixed deposit accounts and in JSE-listed shares and property that have high-
yields and where the consensus view is that the company will be able to maintain and
grow its dividends into the future. Debt instruments used to enhance yields include
variable-rate preference shares and nominal and inflation-linked bonds. . The portfolio is
suitable for investors with a medium tolerance for risk.
The Wealth Income Portfolio is actively managed. The stock selection process seeks to
identify undervalued counters with forecast dividend yields greater than that of the overall
market and with forecast growth in dividends. Basic materials shares are generally
excluded from the selection.
Risk management Interest rate risk is high in the portfolio. As such an analysis of the domestic interest rate
cycle is key to our asset allocation strategy. A rising interest rate cycle will result in an
increased allocation to preference shares, whilst a declining cycle will result in a higher
allocation to bonds and property.
A review of the portfolio occurs twice a year.
Management fee 1% p.a. (excl VAT), charged quarterly in arrears. No other administration or performance
fees are charged.
Investment team An Afrifocus team makes the investment decisions and asset allocation.
The disclaimer is available at the end of this document, and on our website: http://www.afrifocus.co.za
WEALTH Income Portfolio Information Sheet
2. Afrifocus is a level two contributor with a BEE procurement level of 125.0%, and a registered member of JSE
PERSONAL WEALTH
Johannesburg Cape Town Durban
Afrifocus House,
31B Impala Rd
Chislehurston,
Sandton 2196
Tel: +27 11 290-7800
Fax: +27 11 290-7878
10 Waterford Mews,
Century City Blvd,
Century City,
Cape Town 7441
Tel: +27 21 528-9900
Fax: +27 21 551-4541
Suite 119, 1st Floor, II
Palazzo
5 Zenith Dr,
Umhlanga Rocks 4320
Tel: +27 31 584-6491
Fax: +27 31 584-6847
Disclaimer
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The disclaimer is available at the end of this document, and on our website: http://www.afrifocus.co.za