As­to­ria In­vest­ments, Life Health­care Group

Finweek English Edition - - NEWS - By Si­mon Brown

An­chor Cap­i­tal is listing this hold­ing com­pany that is due to start trad­ing on the JSE on 25 Novem­ber.

The idea here is a JSE-traded com­pany that has, as its pri­mary as­set, US dol­lars, which it then in­vests glob­ally.

Sixty per­cent will be in in­ter­na­tional stocks such as Ap­ple, Nestlé and the like. An­other 20% will be in niche fund man­agers. So if As­to­ria wants to in­vest into Brazil but feels it doesn’t have the ex­per­tise, it can in­vest into a fund that does have the ex­per­tise. The last 20% goes into al­ter­na­tive and pri­vate eq­uity funds, in other words un­listed as­sets. This blend is at­trac­tive but what also strikes me is that they have the lux­ury of per­ma­nent cap­i­tal. What I mean here is with a unit trust, if peo­ple sell their units the fund man­agers have to sell shares in or­der to pay out the sell­ers. Here the cap­i­tal can­not be redeemed. If I want out I sim­ply sell it on the JSE. Im­por­tantly, the net as­set value is $1 per share, and I will be look­ing to buy but won’t pay more than maybe 5% more for the stock.

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