Our Investment ApproachWe follow a fundamental, valuation-based investment approach that is enhanced by considering the company attributes of quality, growth and sentiment. While we believe that undervalued shares outperform over the long term, we recognise that returns from a pure value based (low price-earnings) approach are cyclical and subject to periods of shorter-term underperformance. For this reason, we enhance our approach by combining our valuation with an understanding of a company's quality, its earnings growth potential and market sentiment. Our disciplined portfolio construction process determines the best combination of these ideas from a risk perspective, which enhances our ability to achieve more stable returns through various market cycles.
Our Africa portfolio is managed on a similar basis, but with a stronger focus on growth and dividends, and taking potential liquidity, currency and political risks into consideration. As a result, this portfolio is liquidity cognisant (and not benchmark cognisant). We also depend on our proprietary currency analysis and regularly visit the countries to meet management and interact with the wider business community to better gauge sentiment.
We offer investors exposure to actively managed South African and Africa (ex-SA) equity funds that aim to outperform their benchmarks with less volatility. We invest in companies that have excellent long-term prospects, are well managed businesses and are attractively valued.
Our Competitive Edge
Cognitive diversity within a dynamic, well-resourced team. We are an experienced and a well-qualified and diverse team. A collaborative leadership style ensures that investment ideas are challenged and debated, with only the best-ranked companies being selected.
We focus on more than just value. Our distinctive approach of combining valuations with a deep understanding of the quality of a company, its earnings growth potential and market sentiment assists us in delivering a more consistent source of alpha over time.
Risk management through intelligent portfolio construction. Our disciplined portfolio construction process provides detailed insight into each share’s contribution to portfolio volatility. This enables us to create an optimal and a risk-adjusted portfolio of shares and enhances our ability to achieve more stable returns through various market cycles.
ESG integration. Environmental, social and governance considerations are a core component of our investment philosophy. Our proprietary ESG analysis helps identify issues that currently, or at some point in the future, may materially impact the long-term value of a company. Our model is used to score companies on their ESG ratings and their ability to grow sustainably. We have been independently recognised as industry leaders in Responsible Investing in South Africa (by Kigoda Consulting, an independent consultancy that offers specialist political risk and responsible investment advisory services in sub-Saharan Africa). Learn more