The Lion of Africa Real Return CPI+5 Fund is a specialist unit trust portfolio with the objective to secure consistent real total returns in excess of headline inflation plus 5% per annum over any rolling 3 year period. The prime objective of a real return fund is to preserve future purchasing power whilst delivering real returns.  The fund aims to provide low variability of returns that offset the negative effects of inflation and that adequately absorb the effects of costs and taxation.

The portfolio is constructed using a methodology that focuses on both strategic and tactical asset allocation.

The strategic asset allocation methodology concentrates on establishing a "base mix" of the assets.  This is done to provide a platform for an inflation beating portfolio that minimuses downside risk and that homes in on a real return target above inflation.  The "base mix" is determined by employing methodologies that optimise the weighting of assets over the various asset classes.  This process utilises expected returns, back tested returns and mean variance optimisation techniques.

A long term strategic asset allocation policy may however limit the ability to take advantage of opportunities that may present themselves in the short term.  This is where tactical asset allocation methodology is employed.  Through careful analysis and valuation the base is adjusted to capitalise on these opportunities.

Medium to low risk.  The investment strategy focuses on maintaining low variability of returns whilst minimising downside risk.

Please see attached fact sheet (top of page).

Please see attached fact sheet (top of page).