Key takeaways

• Two portfolios in one: a disciplined core for legacy, and a small tactical sleeve for timely opportunities.
• Rules beat hunches: set position limits, entry/exit triggers, and rebalance bands so emotions don’t drive decisions.
• Liquidity first: cash ladders (TZS and USD) prevent forced selling and fund tactical moves.
• Match currency to goals: align assets with future spending (local life in TZS, offshore needs in USD/GBP).
• Govern for decades: structures, successors, and a written policy keep your plan on track across generations.

Market context

Markets swing on rates, inflation, and geopolitics; headlines change fast, but family objectives—education, healthcare, succession, philanthropy—don’t. African HNWIs in Tanzania need a setup that captures short-term opportunities without jeopardizing the long-term mission: preserve and grow purchasing power, pass wealth cleanly, and keep options open across borders.

The core vs. tactical split

• Core (85–95%): the “sleep-at-night” portfolio—global, diversified, quality bias, with income and growth aligned to your multi-year plan. It’s run by rules (IPS), not news.
• Tactical sleeve (5–15%): the “quick-wins” bucket—staged entries into opportunities (dislocations, reforms, flow reversals). Small, deliberate, time-boxed; success is additive, not essential.

Short-term playbook

• Set the rails: max position size (e.g., 2–3% per idea), time stop (e.g., 90 days), and exit triggers (valuation, spreads, FX bands).
• Stage entries: buy in clips; never “all in.” Use pre-defined levels, not feelings.
• Keep dry powder: a USD and TZS cash ladder funds opportunities and bills without touching the core.
• Mind FX first: pre-buy part of known USD needs (tuition, travel) so currency swings don’t consume quick-win gains.

Long-term engine

• Own real cash flows: quality businesses and real assets with pricing power; keep leverage modest.
• Diversify custody and access: local accounts for TZS needs plus offshore custody for global markets and continuity.
• Compounding > guessing: automate rebalancing; let time and earnings growth do the heavy lifting.
• Document the plan: IPS, FX policy, and a “letter of wishes” so successors can execute without drama.

Tanzania & regional nuances

• USD/TZS alignment: avoid USD debt against TZS income; match currency to spending.
• Banking & transfers: confirm settlement timelines and backups for cross-border flows.
• Vehicle choice: favor liquid vehicles for frontier exposure; size private deals to your cash runway.

Playbook for HNWIs

• Households & family offices: map cash flows by month and by currency; run two ladders (TZS + USD); review quarterly; keep a secure vault of mandates, contacts, and passwords.
• Entrepreneurs: link working-capital buffers to FX bands; diversify suppliers and banking lines; use board-approved limits for tactical trades.

Execution guidelines

• Rebalance bands: act at ±20% drift from target weights—no debate.
• Position checklist: thesis, valuation, catalysts, risks, exit; if any box is blank, pass.
• Risk controls: caps on illiquid exposure, counterparty checks, MFA/hardware keys, and tested backups.

What to avoid

Chasing hot tips, using leverage for “quick wins,” turning the tactical sleeve into the whole portfolio, ignoring FX on offshore goals, and over-engineering structures you can’t maintain.

Bottom line

You don’t have to choose between speed and staying power. Build a durable core for legacy, add a rule-bound tactical sleeve for opportunities, protect liquidity, and align currency with real-world spending. Quick wins then support, not sabotage, your long-term plan.

Contact Hament to set up your core-and-tactical framework, cash ladders, and policy documents tailored to Tanzania and broader African exposure.

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