Astoria Investments, Life Healthcare Group
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.