MANAGED SOLUTIONS
Our collaborative investment approach of blending active and passive investment strategies allows us to optimally construct a range of risk profiled solutions.
We believe that staying focused on long-term goal achievement versus short-term performance offers the best opportunities for investors. We use a combination of quantitative and qualitative tools in our rigorous portfolio construction process seeking the optimal balance between risk and reward.
Our risk-profiled managed solutions offer a selection of South African and global multi asset solutions covering the risk spectrum to best suit client needs and objectives. Each investment solution targets a specific outcome and is designed to suit different client risk profiles.
STRATEGIQ SA & Global Managed Solutions:
Our strategic investing approach looks to determine what proportion of a portfolio should be allocated to Growth Assets, Defensive Assets and Uncorrelated Assets.
The strategy is a disciplined, value-conscious, historically informed, risk-managed and a full-cycle approach to long-term investment.
Building an optimal investment solution involves two levers:
The first is the portfolios strategic asset allocation (i.e. identifying the right mix of assets to achieve the investors risk return objectives), the second is execution which involves the process of selecting the right investment managers.
Our focus is to invest with some of the best-in-class asset managers in each investment universe, which we define as achieving top quartile risk-adjusted returns over a market cycle, typically five to seven years. The approach is to identify managers whose success has been based on their long-term investment skill.
We draw on a multitude of qualitative and quantitative techniques which, when combined, give an informed view. Our qualitative due diligence process is centred around both an investment due diligence which identifies best in class investment managers as well as a thorough operational due diligence.
Our manager selection process in three parts:
PROCESS:
Filter the investment universe according to minimum investment requirements criteria. Thereafter, the defined investment universe is quantitatively screened by using the following metrics; excess returns, alpha, beta, standard deviation, Sharpe ratio, information ratio, risk/reward, up/down capture ration, consistency ratio and correlation.
RESULT:
We rank fund managers, reducing the investible universe into a more researchable list of suitable managers.
PROCESS:
Our manager due diligence process can be divided into two distinct steps:
- the investment due diligence which identifies best in class managers and;
- operational due diligence to ensure operational structures are aligned with our requirements.
SEEKING MANAGERS WITH:
- Level of differentiation
- Specialised advantage
- Repeatable investment process
RESULT:
In-depth analysis of identified investment managers into an approved list.
PROCESS:
We blend top-down macroeconomic views and bottom-up manager analysis to arrive at our investment decisions.
RISK MANAGEMENT:
DAILY/WEEKLY: We monitor managers, in real-time.
MONTHLY: We review managers’ performance monthly relative to the standards we have set.
QUARTERLY: We undertake a detailed performance review focused on the relative performance & factors impacting the portfolio. We bring any unresolved questions to the investment manager.
RESULT:
Actively managed investment solution targeting superior risk-adjusted returns.
Platform Availability:
Our range of investment solutions are available on leading linked investment services provider (LISP) platforms in South Africa, providing pre- and post retirement solutions, discretionary investment and tax-free savings products as well as a range of global investment solutions on leading global platforms.
