How Atheq's 40-40-20 allocation strategy works

Every naira contributed to Atheq is deployed according to a fixed allocation framework: 40% Defensive, 40% Growth, 20% Opportunistic. This is not a marketing slogan — it is written into the partnership deed and requires a 7/10 partner vote to change.

Here is what each bucket means in practice.

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Bucket 1 — Defensive (40%)

Assets: Treasury bills, high-yield savings accounts, and money market funds.

The defensive allocation has one job: preserve capital and generate consistent, low-risk returns denominated in naira. Nigeria's 91-day T-Bill rate has historically tracked well above inflation during periods of high monetary policy rates. Money market funds offer daily liquidity at competitive yields.

Why 40%? Because a collective investment fund needs a floor. If the growth and opportunistic buckets underperform in any given year, the defensive bucket ensures the fund does not go into reverse. It is the anchor.

What you should expect: Stable, inflation-linked returns. No drama. No big swings.

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Bucket 2 — Growth (40%)

Assets: Dividend stocks listed on the NGX, Real Estate Investment Trusts (REITs), and other income-generating equity assets.

The growth allocation targets capital appreciation over the fund's 5-year horizon. Nigerian blue-chip equities — banks, consumer staples, cement — have historically generated strong returns for patient, long-term investors. REITs add real estate exposure without requiring property management.

Why 40%? Growth assets are volatile in the short term but tend to outperform fixed-income over multi-year horizons. At 40%, growth is large enough to move the needle on total returns, but not so dominant that a market downturn wipes out the fund.

What you should expect: Volatility in monthly valuations. Meaningful gains over 3–5 years. Quarterly dividends reinvested into your unit value.

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Bucket 3 — Opportunistic (20%)

Assets: Private equity opportunities, early-stage startups, agricultural value chains, and structured debt instruments.

The opportunistic bucket is where the fund takes calculated, higher-conviction bets. These could be a direct equity stake in a Nigerian fintech, a structured loan to an agribusiness, or a syndicated private equity deal. Decisions in this bucket require partner visibility and are disclosed in monthly statements.

Why 20%? Enough to be meaningful if a position succeeds. Small enough to be survivable if it does not.

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How the allocation is maintained

The fund does not rebalance monthly. Instead, new contributions each month are directed to whichever bucket is below its target weight. This dollar-cost-averages into underweight positions without triggering unnecessary transaction costs.

If a bucket drifts more than 10 percentage points from target — say, a strong equity rally pushes Growth to 55% — the Investment Committee will propose a rebalancing. Any rebalancing above a defined threshold requires the 7/10 partner vote.

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How this affects your unit value

Your monthly ₦20,000 buys units at the current net asset value (NAV) per unit. The NAV reflects the blended performance of all three buckets:

• Defensive income accrues daily and is reflected in the NAV
• Growth dividends are reinvested at the end of each quarter
• Opportunistic gains or losses are marked-to-market quarterly based on the Investment Committee's valuation

You can see your unit count and current NAV in your dashboard after each contribution.

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The honest trade-off

This allocation is designed for a 60-month horizon. Over 5 years, the blended strategy should outperform a simple savings account by a meaningful margin. Over 12 months, it may not — and the value of your units could be lower than what you contributed.

If you need your money within 18 months, this fund is not right for you. If you are willing to commit for the full term, the 40-40-20 structure gives your capital a diversified, professionally managed path to growth.