Novare Investments

Our multi-manged solutions aim to assist investors achieve their investment objectives within their desired risk parameters.

What We Do

 We offer multi-managed investment solutions in the form of South African Funds of Hedge Funds, Unit Trust Funds, an offshore Fund of Funds and Bespoke Solutions. We understand that each investor has a different investment objective and risk appetite thus we offer different products and solutions for our clients to achieve their stated investment objectives within their desired risk parameters.

Our Fund of Hedge Funds

Our award-winning flagship fund of hedge fund products are called “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. The Funds seek to provide investors with an easy way to access various leading hedge funds in South Africa.

The funds have clearly defined investment objectives; risk levels; and investment returns. We have three funds which are Novare Mayibentsha Market Neutral (low-to-medium risk), Novare Mayibentsha Moderate (moderate risk) and Novare Mayibentsha Focused (aggressive risk). Each fund is designed to preserve capital and achieve maximum performance with minimal risk.

Our deep and 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.

The hedge fund strategies we invest in include but are not limited to traditional long/short funds; market neutral funds; fixed income arbitrage; commodities.

Low-to-Medium Risk
Novare Mayibentsha Market Neutral

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 2.93%
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

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 2.74%
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

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 1.89%
For more information: For more information regarding this fund please contact clientservice@novare.com
Click here for the Minimum Disclosure Document of this fund.

South African Hedge Fund Survey

We conduct a comprehensive annual survey of the South African hedge industry which aims to give would-be investors and the general public an insight into the South African Hedge Fund Industry.

Our South African Unit Trust Funds

Our unit trust funds products provide investors 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 is designed to achieve maximum performance with minimal risk.

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 1.72%
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 1.35%
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 1.66%
For more information: Click here for the Minimum Disclosure Document of this fund.

Our Offshore Fund

We have operated in the offshore multi-manager space for over 17 years and we thus have an extensive network of global asset managers and offshore capabilities across various asset classes.

We offer access to a unique range of offshore fund managers not typically accessible to South African investors. Our offshore funds are not approved for distribution in South Africa by the FSCA and are only available via select institutional investment channels. For more information, please e-mail offshore@novare.com.

Multi-Management

Our Tailored or Bespoke Solutions

Our multi-managed funds are designed to offer investors different options across the investments risk spectrum. This does not make them suitable for every single investor and there are times when investors would want a bespoke solution with objectives not covered by our multi-managed funds. Our talented team of investment professionals partner with institutional clients to craft these bespoke investment solutions specific to their investment needs and risk appetite. These bespoke solutions could be specialist or balanced mandates which include South African equities, bonds, property, hedge funds and other alternative asset classes or offshore asset classes. The Novare team will seek to understand the client’s objectives and do the necessary asset allocation, manager research, manager selection and portfolio construction in consultation with the investor until a suitable solution has been crafted.

Benefits of our Solutions

Our multi-managed funds can invest across different asset classes and sectors. This type of diversification minimizes the dependence on the performance of a single asset class and enables investors to benefit from reduced risk without sacrificing returns.

By broadening the investment horizon beyond a single fund manager, exposure to the performance and management style of that fund manager is reduced. No single fund manager can consistently outperform across all asset classes all the time as each fund manager has a different area of focus and approach to their investment philosophy and process. Our multi-managed funds harness the specialized expertise of several fund managers into one collaborated fund. In some instances, our funds can give investors access to managers with limited capacity who are not taking money from new investors.

Investing in our multi-managed fund eliminates the need for investors to choose where and how to invest their money as the research, selection and ongoing monitoring of each fund manager is done on behalf of Investors by our expert team at Novare. Our funds offer diversification in one single investment option and removes the pressure of having to find, as well as monitor, individual fund managers.

Our approach provides investors with access to the pooled expertise of multiple investment experts. Each expert is dedicated to understanding how every fund manager contributes to the overall fund structure. Each fund manager also looks after their unique asset class and areas of expertise, allowing each fund within the fund to operate optimally. Every fund is monitored to ensure optimal performance and is rebalanced when necessary.

Due to economies of scale, we are able to negotiate discretionary fees with underlying managers which an individual investor would ordinarily not be able to attain. The cost-efficiency of the product ultimately result in enhanced returns.

Fund operations

Our Fund operations are handled by Novare Collective Investment Schemes (NCIS). In 2014 we launched NCIS to facilitate the growth of our existing investments products and solutions. NCIS is registered as a management company with the Financial Services Conduct Authority in South Africa to administer collective investment schemes. It was the first management company to launch regulated hedge funds in the South African market in 2016 which is a testament to our continued focus on innovation. Please click here to here to visit the NCIS website.