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Afena Capital (Pty) Limited

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

We are long term, fundamental, value investors. We are attracted to shares that trade at a discount to our own determination of intrinsic value. We typically invest when we are satisfied that we are being sufficiently rewarded through the discount to intrinsic value for the inherent risk in the investment.

 

As value investors we tend to specifically exploit opportunities where the market prices reflect current prospects of a company as opposed to a level of profits that a business can generate through an economic cycle. We take long term views on each investment and realise value for clients as market prices converge to the intrinsic value of a share.

At Afena Capital, we believe that Responsible Investing enhances the depth and breadth of the investment research process and assists in the consideration of a wider range of risks and opportunities within the universe of companies in which we invest in on behalf of our clients. As such, we believe that the integration of ESG factors into the investment decision making process delivers long-term investment performance for our clients.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Afena Capital is a signatory to the United Nations Principles for Responsible Investing and endorses the Code for Responsible Investing. We find value in being associated with these firms as they publish insightful research focussing on key matters which could potentially impact on the investment cases of the companies we invest in.

 

At Afena Capital, we believe that Responsible Investing enhances the depth and breadth of the investment research process and assists in the consideration of a wider range of risks and opportunities within the universe of companies in which we invest in on behalf of our clients. As such, we believe that the integration of ESG factors into the investment decision making process delivers long-term investment performance for our clients.

 

We have adopted two approaches as the pillars of our Responsible Investing strategy:

 

ESG integration into our investment process with a view to helping our analysts make more informed investment decisions
Being active share owners by undertaking voting and, where appropriate engagement activities

 

We believe that following the above Responsible Investing strategy enhances the depth and breadth of our investment research process and helps us to consider a wider range of risks and opportunities within the universe of companies we invest in on behalf of our clients.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Afena  Capital places the highest priority on its client’s interests and recognises the importance of identifying, avoiding or managing any conflicts that may arise in the course of providing a financial service. As a result, Afena capital acknowledges that its clients' interests will always take priority. If conflict situations cannot be avoided, they must be mitigated and managed equitably and in the client's interest.

The Afena Capital Conflicts of Interest Policy includes the following:

  • Mechanisms for the identification of conflicts
  • Measures for avoidance or mitigation of conflicts
  • Measures for disclosure of conflicts
  • Processes, procedures and internal controls to facilitate compliance
  • Consequences of non-compliance
  • Basis on which Representatives qualify for a financial interest
  • Policy review
  • List of Associates
  • Names of Third Parties in which Afena holds an Ownership Interest
  • Names of Third Parties that hold an Ownership Interest in Afena

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

Afena Capital views seriously its responsibility for identifying and managing ESG incidents that may occur in our clients’ portfolios.
Proxy statements increasingly contain material issues involving shareholder rights and corporate governance issues, among others, which deserve careful review and consideration.
Taking this into account, this Policy Document, in addition to the King Reports on Corporate Governance, is intended to provide guidance on how to vote on proxies on behalf of our clients’ assets.
Afena Capital believes that the principles contained in the Proxy Voting Guidelines are important considerations in furthering good corporate governance. However, Afena Capital recognises that some of the ‘Guidelines’ may not be appropriate for every situation, due to a company’s differing developmental stages, ownership structure, competitive environment etc.


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