Our Investment ApproachOur primary focus is building multi-asset class solutions. Our active asset allocation process has proven to deliver superior long-term, risk-adjusted returns for clients. Our investment process combines top-down macroeconomic research with bottom-up fundamental analysis. This two-dimensional approach to sourcing alpha-generating ideas also takes the interplay between different asset classes and sectors into consideration and enables us to maximise the potential sources of excess returns within our portfolios. The result is carefully constructed portfolios comprising an optimal blend of asset classes to meet and exceed clients’ risk/return objectives.
Our institutional offering includes risk-adjusted multi-asset class solutions, multi- and single manager global portfolios and a pure SA listed property portfolio. Our Profile range for retirement funds spans the risk/return spectrum, while our US dollar-denominated solutions provide global diversification via select offshore-based asset managers. We also offer a medical aid solution that complies with the requirements of Regulation 30 of the Medical Schemes Act, and we are able to we build customised portfolios tailored to meet specific client needs.
We manage a range of retail unit trust funds on behalf of Old Mutual Unit Trusts, along with a suite of life funds for Old Mutual, available via MAX and Fairbairn Capital.
Our Competitive Edge
By using a structured, disciplined and measurable implementation framework, our philosophy captures both price (valuation) and theme (environment) in a two-dimensional approach.
The full toolbox of asset classes. We access the full toolbox when building portfolios to provide superior risk-adjusted returns to our clients. We look beyond the conventional asset classes and break the investment universe into smaller asset clusters that behave similarly. We also access other assets such as commodities, convertible bonds and alternative assets in our more dynamic offerings.
Integrated approach. We consider the interplay between the asset classes and sectors. We also look at each holding’s correlation with all the other holdings and how this contributes to the portfolio’s overall sensitivity to different macro drivers, such as currency levels or interest rate risk.
Size sweet spot. We are nimble enough to implement our investment ideas swiftly, while being part of a larger organisation with excellent infrastructure and support. This means we can, for instance, hold meaningful positions in mid-cap stocks and between-the-gap asset classes (such as convertible bonds, floating rate notes and preference shares), which tend to be in smaller issue sizes.
ESG integration. Environmental, social and governance factors are embedded in our investment decisions at both a macroeconomic and a company level. This feeds into responsible ownership in two ways: firstly, whether to own an asset and, secondly, how we influence ESG outcomes on assets we already own.