Investment Approach

The investment objective is to fortify capital against long term risks of inflation and currency depreciation.

 

Did you know?
At an inflation rate of 8% per annum, money’s purchasing power is halved every nine years. After twenty years the purchasing power of an initial ZAR1 million will depreciate to a mere R188,000.

 

When a new investment portfolio is constructed, we like to use the metaphor of a house that is planned and built in phases. The opposite is when an investor makes a once-off investment in a unit trust and accepts the generic product as is.

 

VEGA Asset Management’s investment philosophy centres around buying growth at a reasonable price.

 

We aim to invest in companies that have the following qualities:

  • Strong cash flow generation ; sound dividend growth
  • Solid balance sheet ; low gearing
  • Management has entrepreneurial mindset ; proven track-record
  • High returns on invested capital
  • Quality earnings growth
  • Attractive valuation relative to prospects, market and peers

No investment decisions are made without thorough and objective research.