• Investment Strategy
FRAGG Investment Management adopts an active approach to investing in either debt or equity investment mandates, with the aim of bringing investment agencies, private and social investors to invest in the social impact Fund.
The Funds' core objective is to produce capital gains for investors whilst investing in projects with social impact. The investment strategy combines a series of short-term strategic portfolio allocations of medium sized loans. This strategy allows us to ensure that the approach of managing FRAGG's portfolio is consistent to accommodate the needs of the multi-sector SMEs and reflect our social goal.
FRAGG concentrates on channelling investments into multi-sector SMEs in order to generate economic growth for SMEs. This strategy involves injecting social impact projects with investment and technical support that strive to combat unemployment, promote income-generating activities, support economic development and alleviate poverty.
We adopt competitive and social return mandates, which allow the investment manager to protect the portfolio from downturns and this can include identifying companies without social impact and prospects, through our thorough due diligence techniques. In order to mitigate other portfolio risks associated with investments, a collaboration of investors (private and public) are invited to invest in our Funds. This reassures the elimination of any single investor's exposure to a project and allows for the investment consortium to spread risks and share in the rewards. This not only controls risk but also adds value to the management process.
Our Unique Structure
The FRAGG Investment's mandate is based on the investment strategy that distinguishes us from a commercial fund. We have an investment-only mandate, unencumbered by any influences other than investment, and insulated from political interference in investment decision-making. Our management reports to our supervisory board.
Risk Mitigation Measures
The following features assist in limiting risk:
• Concentration – avoidance of excessive concentration in any one sector
• Portfolio Weight – Constant check and balances of different portfolio size and sector investment
• Liquidity – ensure that the portfolio companies are liquid to meet withdrawals depending on fund maturity dates and pay back periods
• Currency – is managed to ensure that the local currency investments generates return and covers the foreign exchange risk and volatility