Our Frontier Africa strategy is designed for clients wishing to capitalize on our investment team's stock picking ability in small, undiscovered stock markets of Africa. This strategy offers investors a pure exposure to African stocks in African countries outside South Africa. The investment team looks for companies, within these countries, that are undervalued relative to their long-term growth prospects. Due to the focus on stock picking and on markets outside global indices, benchmark risk is high in this strategy.

In this strategy:

• Stock selection takes precedence over country allocation.
  
  
• The Portfolio Manager is responsible for country and stock allocation for this strategy. The Portfolio Manager, with the help of an Analyst, selects stocks for the portfolio.
  
  
• The investment team selects stocks from the bottom-up. The stock selection process is rigorous, systematic and value-oriented. We conduct numerous company visits in Africa and utilize our proprietary database and earnings forecasts to compare industries and stocks. Given the lack of sell-side research in these small, undiscovered markets, the dependence on travel and in house research is particularly high.
  
  
• The final investment decision is made by the Portfolio Manager and does not require Investment Committee review or approval. Any stock which is also held directly in a Global Active portfolio must go through our normal Investment Committee review process.
  
  
• Frontier markets are the focus of this investment universe in order to capitalize on market inefficiencies.