Cachalia Capital (Pty) Ltd

www.cachaliacapital.co.za

Company details

FAIS FSP registration number:

43755

Switchboard: +27 11 326 6699

General email: info@cachaliacapital.co.za

Address:

Flat 214 Hyde Gate, 27 Ruth Avenue, Hyde Park, Sandton 2196

Compliance officer name: Mr Jan Scholtz - Compliserve +27 083-631-6570 or 086-127-3783

Investment philosophy

We employ a fundamental based valuation philosophy which combines both top down and bottom up research. We believe fundamentals are important. A top-down strategy is applied in deciding sector emphasis while the bottom up approach is driven by valuation as our primary concern. Our equity selection also considers other crucial risk factors and opportunities such as investment views and themes (secular, cyclical, structural) and quality rankings of companies taking into account the attractiveness of the industry, competitive advantage and financial strength. We employ a disciplined and thorough approach to the research and valuation process.

Also, we believe that rigorous and open minded debate between team members facilitates superior investment decisions. We are long term value investors. We would aim to identify value opportunities from both a top down as well as a bottom up approach. The top down process is initiated by assessing macro-economic variables in order to interpret the investment cycle which is conducted by external strategists.

Based on this research, the expected returns for the different equity sectors are forecast which enables us to determine sector weightings and consolidated themes. A value filter is then implemented in the various sectors in order to establish the best prospective opportunities. Coupled to this we will seek out value situations from a bottom up perspective utilizing Refinitiv by running filters and searching for companies that are trading at a rating lower than its history or companies that are attractively priced relative to its future earnings prospects. Companies that trade at a discount to their net asset value, trade at low free cash flow to price multiples or which have a high dividend yield will also have preference.

Company research is conducted for these various companies which culminate in detailed financial models with the aim of estimating future earnings. In depth consideration is given to both quantitative and qualitative factors. The earnings derived from these models are then further translated into valuations. Three valuation mythologies will be employed for each company in order to cross check valuations derived. This is to create certainty in the portfolio manager’s mind of valuations.

These valuations then allow us to compare different companies and rank the relative value of each stock analysed. The portfolio manager is then able to effectively construct the portfolio.

FAIS requirements

Who is your FAIS complaints officer?

Ms Mashuda Cassim

Please provide the link to the complaints policy on your website: admin@cachaliacapital.co.za or mashuda@ cachaliacapital.co.za

Ownership

What is the ownership structure of the company?

100% Black female owner managed Who are the directors of the company?

Mr Gert Vorster & Ms Mashuda Cassim

Do staff and management have an interest in ownership? Please provide the percentage held by staff and management:

Ms Mashuda Cassim is the Managing Director and owns 100% of the company at this stage

History

When was the company established?

2011

List of mergers and acquisitions that have taken place since being established:

2015 Old Mutual Investment Group - 26% stake in Cachalia Capital, this was repurchased in February 2016

B-BBEE credentials

Are you B-BBEE accredited?

Yes

What is your B-BBEE status? Level 1

By whom have you been accredited? Affidavit Date of accreditation: 2022-07-08