“We invest in companies with sustainable business models that are led and managed by competent, honest management teams. The companies should generate cash and have a strong balance sheet to withstand turbulent times,” Asanda Notshe, a fund manager at Mazi Capital, says.
You can invest in Mazi’s Prime Equity Fund with a lump sum of R5,000 or make monthly contribution of R500.
The fund now has just over R1-billion invested in it.
As with all unit trust funds you can withdraw your money at any time, but because the value of your investment can go up or down in line with the shares in which it invests, it is best suited for investments that you are able to leave invested for about five years to ensure you will earn a positive return overall despite any short-term ups or downs.
Notshe says if you want exposure to listed equities you need to be an investor who has little regard for volatility or short- to medium-term losses in your investment. You must have some tolerance for the investment risk to enjoy longer-term capital growth, she says.
“We say remain invested for at least five years as this volatility and the short-term hits become less significant over the long term,” Notshe says.
The fund managers also considers environmental, social and governance factors when investing in companies. They look for companies that behave responsibly in light of global warming, transformation, inequality and diversity, and which have good corporate governance.
Currently, the Mazi Prime Equity Fund is heavily invested in shares in the financial and consumer services sectors of the JSE, followed by resources, industrials, consumer goods and healthcare. It also holds some offshore and domestic cash investments.
From time to time, the portfolio may also invest in some unlisted derivatives to protect its investments.