CATTLE INVESTMENT

INFORMATION UPDATE AT AUGUST 2023

What is the fund’s objective?

The portfolio is a long-term investment that aims

General fund information
to achieve capital growth over a time horizon of
12 months. It aims to generate a return on buying Classification: Alternative Asset
and selling cattle while putting measures in place Benchmark: 13.00%
to reduce the related risk. 12-Month Return: 14.07%
Number of cattle: 25,379
What does the fund invest in?
This investment is not FSCA approved
This is a cattle investment portfolio. Calves are Launch: September 2017
purchased between the weight of 200kg - 240kg. This portfolio was launched in September 2017.
The calves are placed into a feedlot for a
minimum period of 120 days with the purpose of Minimum investment requirements -
controlled feeding and fattening of the cattle for Lump sum R 2,000
sale into the market once the optimum weight Monthly R 500
ranging between 400kg - 500kg has been
reached while maintaining the quality of the
What are the costs to invest in this fund?
meat. Once the cattle have reached the optimum
weight, they are sold to an abattoir under an
offtake agreement.
Upfront Fee: 3.80% (Excl VAT)
What possible risks are associated with Performance Fee: 20%*
this fund?
*Performance fee is only charged on returns that exceed the
There are market price risks associated with this
benchmark.
portfolio. The Cattle are sold at the prevailing
market price when the optimum weight is
reached. Market factors such as an increase in Risk rating
demand or an increase in supply for beef may
impact the price positively or negatively
Conservative Moderate Aggressive
respectively. We have put measures in place to
manage the associated risks through constant
monitoring of the market price and ensuring the
sale at the correct point in the market. Other Minimum period
market forces such as disease outbreaks and
regulation change can also impact this portfolio. 3 Months 5 Months 12 Months

Who should consider investing in

this fund?
The investment is suitable for anyone with the
goal of producing steady, inflation-beating
returns over 12 months and who is looking for a
long term asset backed investment.

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THE NUMBERS
INFORMATION UPDATE AUGUST 2023

Asset Allocation

OTHER FARMS CASH

10% 5%

BEEFCOR
90% CATTLE
95%

Performance net of fees

Since 12 month 12 month

1 year 2 years 3 years
inception high low

Returns 14.10% 14.79% 15.69% 14.94% 14.93% 13.43%

Benchmark 13.00% 11.60% 8.90% 9.36% 11.60% 9.90%

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 Returns Benchmark
20%

15%

10%

5%

0%
Since Inception 3 years 2 years 1 year

Example: If you invested R10,000

Return Benchmark
R12,500

R10,000

R7,500

R5,000

R2,500

R0
Since Inception 36 Months 24 Months 12 Months

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 PARTNERS
INFORMATION UPDATE AUGUST 2023

Who are the Farmers?

Asset allocation (%)

We partner with multiple livestock farmers in South Africa who have extensive knowledge and skills in their
respective industries. Our farmers also have off-take agreements in place to make sure they are able to sell
the livestock when they are ready. Our main farmer is Beefcor, one of the largest and oldest feedlots in
South Africa with operations situated in Bronkhorstspruit:

Beefcor procures livestock from reputable producers, source feed directly from mills and farmers,
produce their own scientifically formulated feed and provide custom feeding services to livestock
feeders without an established feedlot.
We are working with Beefcor through their custom feeding programme. This allows us to hold the
investment livestock on their farm and Beefcor to ensure the procurement, feeding and vaccinating and
sale of the livestock.
Beefcor has an abattoir on site and is the off-taker for all livestock invested in.
Beefcor also guarantees the replacement of the herd if the mortality rate exceeds 1% (industry norm).
Beefcor operations were established in 1973 with only 1000 head of cattle, they now market up to 70
000 cattle per year and have diversified their products and services. Beefcor is an industry leader and
innovative company that employs over 600 people.
Beefcor is privately owned by the founding families and by an employee shareholding scheme. The
management of Beefcor is a well-qualified team, having over 80 years of combined experience in the
beef industry.

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