Sub-Saharan Africa Funds

Institutional Investments for Individuals



Using fundamental analysis to select investments that will out perform other assets

“Top-down” macro-economic analysis

At Lombard Asset Management we firstly use a method of analysis that involves looking at the "big picture" and then analyzing the details of smaller components. By first analyzing the overall picture, such as a macroeconomic trend, we can start narrowing potential companies to analyze.

Before individual stocks are chosen we look at how the globally economy is performing and in particular the African economy.

We analyse macro-economic trends, and project future growth. We establish a market view for the region as a whole an identify key opportunities and risks. We are very cognoscente that Africa is part of a global economy and falls under the influence of international factors.

Traditional “bottom-up”, fundamental and financial analysis of investment opportunities

We then use an investment approach that d-emphasizes the significance of economic and market cycles. This approach focuses on the comprehensive analysis of individual stocks. By “bottom-up investing”, therefore, we focuses our attention on specific company rather than on the industry in which that company operates or on the economy as a whole.

The “bottom-up” approach assumes that individual companies can do well even in an industry that is not performing very well.
When we make informed decisions based on a bottom-up investing strategy we do a thorough review of the company being analyzed. This includes becoming familiar with the company's products and services, its financial stability and its growth prospects.

Relative Value Analysis to expose mis-pricing between stocks, sectors and markets.

We combine our macro-view (top-down) with our micro-view (bottom-up) and identify our target investments. We take our universe of potential investments and cross analyze them to identify which specific shares will outperform the market, and in particular other shares.

We believe that selling is as important as buying. By limiting the number of shares in a portfolio, our fund managers are required to monitor each portfolio holding to ensure it is stronger than a share that is not currently held.

If a share is considered for the portfolio then one of the current holdings has to be considered for exiting the portfolio. In this way our fund remains focused and return driven


Monthy Report- October 2018

19 Nov 2018

Poor investor sentiment left emerging assets strongly underweight in the global basket. Fund redemptions in illiquid markets forced good and bad quality risk assets even lower than last month. However, things are looking up. Reductions in the energy price and some rotation out of US assets have provided support for emerging assets towards the end of the month.

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Monthly Report- May 2018

09 Jul 2018

South Africa

S&P affirmed South Africa’s sub-investment grade credit rating and kept its stable outlook. S&P rates the country’s foreign currency debt ‘BB’ and its local currency debt ‘BB+’. The stable outlook is based on the agency’s view that South Africa’s economic growth would move up over the next year following economic and social reforms undertaken by the new administration. Sentiment has turned positive on South Africa since President Cyril Ramaphosa has pledged to undertaken necessary fiscal and economic reforms. Inflation remains in the target range.

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