Investment Philosophy and Process

The Select FR Enhanced Core Equity Fund aims to deliver returns close to the FTSE/JSE All Share Total Return Index at low cost, with a low tracking error relative to the ALSI. The Fund follows an investment policy that seeks to closely follow the composition of the ALSI while using enhancement opportunities to improve overall returns. It may use physical assets and derivatives to create efficient ALSI or sub-index exposure.

The Fund invests mainly in local equities using factor-based, passive and enhanced index strategies. Applicable factors may include growth, momentum, quality and value. The portfolio’s minimum equity exposure is 80% of net asset value, and its investment universe may include equity securities, property securities, interest-bearing securities, non-equity securities, money market instruments, preference shares, assets in liquid form and participatory interests in collective investment schemes.