• Our Approach
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 micro needs of the multi-sector SMEs and reflect our social goal. FRAGG Impact Fund concentrates on channeling funding into multi-sector SMEs in order to generate economic growth throughout Sub-Saharan Africa. 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 thorough due diligence. In order to mitigate other portfolio risks associated with investments, a collaboration of investors (private and public) will be investing in the Fund. This will aid in eliminating any single investor's exposure to a project and allow for the investment consortium to spread risks and share in the rewards. This not only controls risk but 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 the investment committee.
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
Investment ideas are generated from innovative business opportunities from our investment team. Investment opportunities may originate from our company's visit, general news flow, financial sector need or other related sources (quantitative analysis and regional events). The premise of the investment case is then discussed in detail with the portfolio manager and the rest of the investment team.
This review process is designed to create a complete investment thesis covering all angles and benefiting from the entire teams' investment experience. Following the review process, the investment decision will be made by the investment committee and the portfolio manager. Portfolio size is evaluated having regard to the liquidity of the investment, the interest rate, social impact and its likely impact on the overall portfolio.