Our South African Unit Trust Funds

Our unit trust funds products provide an investor with an easy and cost-effective way to invest in various asset classes e.g equities, bonds and property.

We offer a set range of multi-managed funds with clearly defined investment objectives; risk levels; and investment returns. Each fund’s goal is to achieve superior risk adjusted returns.

Conservative Fund
Novare Capital Preserver Fund of Funds

The Fund is a conservative risk managed fund of funds which aims to offer investors steady capital growth over the medium to long-term. The portfolio's equity exposure will be limited to a maximum of 10%. The investment strategy follows a bottom-up approach that focuses on both qualitative and quantitative measures in the manager research process to ensure the best possible portfolio mix to achieve the targeted return. Tactical asset allocation actions are taken (when necessary) should potential threats or opportunities arise that can influence the portfolio’s risk and return profile.

Risk profile Conservative
Investment objective The portfolio aims to offer investors steady capital growth over the medium to long-term.
Return objective CPI + 2 % net of fees
Minimum investments R5 000 lump sum / R500 per month
Forms View all forms
Total expense ratio (TER) including vat 1.11%
For more information: Click here for the Minimum Disclosure Document of this fund.

Moderate Fund
Novare Balanced Fund

The Fund is a moderate risk managed fund of funds which aims to offer investors a moderate total return over the long-term by investing in a broad spectrum of South African and offshore securities. The portfolio's equity exposure will be limited to a maximum of 60%. To achieve its objective, the portfolio invests in a broad spectrum of South African and offshore securities.

The investment strategy follows a bottom-up approach that focuses on both qualitative and quantitative measures in the manager research process to ensure the best possible portfolio mix to achieve the targeted return. Tactical asset allocation actions are taken (when necessary) should potential threats or opportunities arise that can influence the portfolio’s risk and return profile.

Risk profile Moderate
Investment objective The portfolio aims to offer investors a moderate total return over the long-term by investing in a broad spectrum of South African and offshore securities.
Return objective CPI + 4% net of fees
Minimum investments R5 000 lump sum / R500 monthly debit order.
Forms View all forms
Total expense ratio (TER) including VAT 1.15%
For more information: Click here for the Minimum Disclosure Document of this fund.

Aggressive Fund
Novare Worldwide Flexible Fund of Funds

The Fund is a moderate to high-risk, flexible fund of funds. There are no limitations on the relative exposure of the portfolio to any asset class. The Fund is permitted to invest, in offshore investments, to an extent permissible by legislation.

The investment strategy follows a bottom-up approach that focuses on both qualitative and quantitative measures in the manager research process to ensure the best possible portfolio mix to achieve the targeted return. Tactical asset allocation actions are taken (when necessary) should potential threats or opportunities arise that can influence the portfolio’s risk and return profile.

Risk profile Aggressive
Investment objective The portfolio is a moderate to high-risk, flexible fund of funds. There will be no limitations on the relative exposure of the portfolio to any asset class.
Return objective CPI+ 6% net of fees
Minimum investments R5 000 lump sum / R500 per month
Forms View all forms
Total expense ratio (TER) including VAT 1.13%
For more information: Click here for the Minimum Disclosure Document of this fund.

Our Fund of Hedge Funds

Our flagship fund of hedge fund products is “Mayibentsha”, a Xhosa word meaning “let it be new” following the pioneering launch of what was then one of the first fund of hedge funds in South Africa. It seeks to provide investors with an easy way to access various leading hedge funds in the country.

We also offer a set range of fund of hedge funds with clearly defined investment objectives; risk levels; and investment returns. Each fund’s goal is to achieve superior risk adjusted returns.

Our unique insights into the hedge fund industry, combined with years of multi-manager experience enables us to carefully blend some of South Africa’s best hedge fund managers into one fund.

Our funds combine different hedge funds strategies including but not limited to traditional long/short funds; market neutral funds; fixed income arbitrage; commodities.

Low-to-Medium Risk
Novare Mayibentsha Market Neutral QI FoHF

The Fund is a qualified investor fund of hedge funds. The long-term return objective of the portfolio is to achieve CPI+2.5% over a rolling three-year period. The investment objective will be achieved through diversifying asset managers with an emphasis on investment in hedge funds, absolute return funds and long-only funds.

The portfolio has a low to medium risk return profile. It is suitable for investors with a medium to long-term investment horizon that seek moderate capital growth with reasonable levels of income, whilst being mindful of capital preservation. The portfolio will typically consist of a blend of South African domiciled hedge funds with a focus on strategies with limited market exposure, predominantly equity market neutral, fixed interest arbitrage and low equity long/short strategies. The portfolio aims to preserve capital by not producing a negative return over a 36-month period, while also maintaining a low correlation with the JSE All Share Index and the All Bond Index. The portfolio does not use leverage but the underlying portfolios may apply leverage.

Risk profile Moderate risk
Investment objective The portfolio is a qualified investor fund of hedge funds. The long-term return objective of the portfolio is to achieve CPI + 2.5% over a rolling three-year period. This objective also corresponds to the portfolio's benchmark and hurdle rate. The investment objective will be achieved through diversified asset management with an emphasis on investment in hedge funds, absolute return funds and long-only funds.
Return objective CPI + 2.5% net of fees
Suitable investors Suitable for investors with a long-term investment horizon.
Minimum investments R1 million lump sum / R100 000 per month
Forms View all forms
Total expense ratio (TER) including VAT 2.98%
For more information: For more information regarding this fund please contact clientservice@novare.com
Click here for the Minimum Disclosure Document of this fund.

Moderate
Novare Mayibentsha Moderate QI FoHF

The Fund is a qualified investor fund of hedge funds. The long-term return objective of the portfolio is to achieve CPI+3.5% over a rolling three-year period. The investment objective will be achieved through diversifying asset managers with an emphasis on investment in hedge funds, absolute return funds and long-only funds.

The portfolio has a moderate risk return profile. It is suitable for investors with a medium to long-term investment horizon that seek moderate capital growth with reasonable levels of income, whilst being mindful of capital preservation.

The portfolio will typically invest in South African domiciled hedge funds across various strategies and asset classes, including equity long/short, equity market neutral and fixed income hedge funds. Novare aims to capitalize on investment opportunities across asset classes, investment strategies and sectors. The portfolio aims to preserve capital by not producing a negative return over a 36-month period while maintaining a low correlation with the JSE All Share Index and the All Bond Index. The investment manager may make foreign investments. The portfolio does not use leverage but the underlying portfolios may apply leverage.

Risk profile Moderate risk
Investment objective The portfolio is a qualified investor fund of hedge funds. The long-term return objective of the portfolio is to achieve CPI + 3.5% over a rolling three-year period. This objective is also considered the portfolio's benchmark and hurdle rate. This will be achieved through diversified asset management with an emphasis on investment in hedge funds, absolute return funds and long-only funds.
Return objective CPI + 3.5% net of fees
Suitable investors Suitable for investors with a long-term investment horizon.
Minimum investments R1 million lump sum / R100 000 per month
Forms View all forms
Total expense ratio (TER) including VAT 2.75%
For more information: For more information regarding this fund please contact clientservice@novare.com
Click here for the Minimum Disclosure Document of this fund.

Aggressive
Novare Mayibentsha Focused QI FoHF

The Fund is a qualified investor hedge fund of funds. The long-term return objective of the portfolio is to achieve CPI+4.5% over a rolling three-year period. The objective will be achieved through diversifying asset managers, with an emphasis on investment in hedge funds, absolute return funds and long-only funds.

The portfolio has a moderate to aggressive risk return profile. It is suitable for investors with a medium to long-term investment horizon that seek moderate capital growth with reasonable levels of income, whilst being mindful of capital preservation. The portfolio will typically consist of a blend of South African domiciled hedge funds with a focus on actively traded strategies (predominantly equity long/short) while maintaining low volatility in monthly returns. Novare will aim to capitalize on investment opportunities across asset classes, investment strategies and sectors. The portfolio aims to preserve capital by not producing a negative return over a 36-month period while maintaining a low correlation to the JSE All Share Index and the All Bond Index. The investment manager may make foreign investments. As additional mandate stipulations, the portfolio provides compounded returns, aims to avoid large drawdowns and aims to maintain the volatility of monthly returns lower than the South African All Bond Index. The portfolio does not use leverage but the underlying portfolios may apply leverage.

Risk profile Aggressive
Fund objective The portfolio is a qualified investor hedge fund of funds. The long-term return objective of the portfolio is to achieve CPI + 4.5%, over a rolling three-year period. This objective also serves as the portfolio's benchmark and hurdle rate. This will be achieved through diversified asset management, with an emphasis on investment in hedge funds, absolute return funds and long-only funds.
Investment objective CPI + 4.5% net of fees
Suitable investors Suitable for investors with a long-term investment horizon.
Minimum investments R1 million lump sum / R100 000 per month
Forms View all forms
Total expense ratio (TER) including VAT 2.29%
For more information: For more information regarding this fund please contact clientservice@novare.com
Click here for the Minimum Disclosure Document of this fund.

Under the new regulations in South Africa, the Collective Investment Schemes Control Act classifies hedge funds into two categories namely retail investor funds (RIHF) which have more stringent regulation requirements, and qualified investor hedge funds (QIHF) which are less stringent.

A Qualified investor, as defined by the Financial Sector Conduct Authority (FSCA) Notice 52 of 2015, is: any person who invests a minimum investment amount of R1 million per hedge fund and who – (a) has demonstrable knowledge and experience in financial and business matters which would enable the investor to assess the merits and risks of a hedge fund; or (b) has appointed a Financial Services Provider (FSP) who has demonstrable knowledge and experience to advise the investor regarding the merits and risks of a hedge fund investment.

A retail investor hedge fund is defined as a hedge fund in which any investor may invest because it meets the requirements set out by the FSCA. Some of the other characteristics are tabulated below:

Retail Investor Hedge Funds
Investors Available to general public (varying minimums) Only available to qualified investors (>R1,000,000)
Gross Exposure Limit <200% Not Defined
VAR limit <20% Not Defined
Disclosure to clients Monthly Quarterly
Max holding in a single security <10% Not Defined
Investor Liquidity Calendar Month 90 Days
Risk Management Daily Daily
Marketing Able to solicit investments from all investors Only solicit and accept investments from a restricted pool of qualified investors.
NOVARE 2021 HEDGE FUND SURVEY

Minimum Disclosure Documents

 Before investing, we urge you to review each Minimum Disclosure Document (MDD). The MDD’s contain information related to each fund’s objectives, risk profile, performance and fees.

Quarterly Reports

FUND PRICES

Forms

New Investors

Application form
Address declaration
General info & conditions

Existing Investors

Additional investment
Switch investment
Withdrawal
Debit order instruction
Transfer of ownership
Change of static detail
Notice of cession

Tax

Declaration and undertaking for exemption of tax
Declaration and undertaking for reduced rate of tax
Dividend withholding tax summary

Financial Advisor

Financial advisor application
Financial advisor sub-code

New Investors

Application form
 Address declaration
 General info & conditions

Existing Investors

Additional investment
 Switch investment
 Withdrawal
 Debit order instruction
 Transfer of ownership
 Change of static details
 Notice of cession

Tax

Declaration and undertaking for exemption of tax
Declaration and undertaking for reduced rate of tax
Dividend withholding tax summary

Financial Advisor

Financial advisor application
Financial advisor sub-code

NOVARE 2021 HEDGE FUND SURVEY
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