08 Jun AFG launches investment products to accelerate black wealth accumulation
African Financial Group (AFG), through its subsidiary AFG Wealth, is pleased to announce that it has launched innovative investment products that target investors seeking maximum exposure to superior returns, while simultaneously promoting the transformation of the South African economy.
“The increase in black middle class creates opportunities for building a foundation for intergenerational wealth using modern financial instruments.
This will also help speed up wealth accumulation and ownership of the economy by black people,” said AFG chairman Dr Gil Mahlati. “We have created investment vehicles that are designed to pool savings in black communities, while investing the capital in fast-growing companies that also embrace transformation.
AFG’s strategy of building wealth for previously excluded groups through mobilising savings, with astute asset management, goes a long way to augment the current approach of raising debt to buy minority stakes in white-owned companies.”
For investors looking to partake in accelerated wealth accumulation, AFG has designed products that are expected to generate superior investment returns from a range of asset classes, including shares, bonds, property and cash. The products have been designed to suit the pockets and needs of diverse individual investors.
High-net-worth individuals can invest in direct share portfolios, whereby investors with investable assets of up to R5 million can invest a lump sum of at least R500 000. Other clients can invest in unit trusts that require monthly contributions of no less than R2 000 or a lump sum of no less than R100 000.
AFG has developed indices that track companies with the highest levels of transformation, but at the same time generate decent returns. These indices will give investors exposure to both.
“AFG Wealth will invest the bulk of the funds in listed shares to give black investors exposure to the compounding growth power of listed shares. However, we will also give them exposure to fast-growing unlisted companies that generate a significant amount of cash, despite a subdued global economy.
“Our investment solutions and products provide an excellent opportunity for empowerment schemes, e.g. the R4.5 billion cash pay-out by MTN Zakhele on the 14th of December 2016. We are ideally positioned to grow such funds, while at the same time utilising the funds to push for real and meaningful transformation of our economy,” said Dr Mahlati.
“We have an opportunity to leverage local and global investment vehicles to invest in our economic initiatives. A sustainable way of achieving this goal is pooling savings and investing these funds in debt-free assets that generate wealth. The current black economic empowerment model has slowed transformation and concentrated wealth in the hands of a few,” said Dr Mahlati.
Investors interested in placing funds in AFG’s innovative investment products can call our call centre number 0860 995 205, where they will be directed to independent financial advisors for further advice.