The investment management team employs a four-step investment process:
1. Developing the investment strategy
This process involves selecting suitable asset classes and developing the long-term strategic asset allocation required for each investment strategy to achieve its targeted return. This involves reviewing and forecasting the returns, correlations and risks of each asset class. Long-term data (periods for as long as 100 years) is referenced to ensure that every economic cycle and eventuality is anticipated. Two statistical models are used to minimise volatility and maximise the probability of success over a strategy’s recommended investment period.
2. Appointing managers
Much care is taken to select the most appropriate specialist fund managers for particular asset classes. In making this choice, the investment team follows a stringent process aimed at consistently selecting top quality fund managers who are capable of delivering excess returns over the long term. Their process is logical and thorough, and the team does not select a fund manager based on short-term investment performance. Instead, they conduct both qualitative and quantitative analyses which examine the fund manager’s depth of skills, philosophy, processes, qualifications and track record, among other characteristics.
Once a fund manager has passed the investment management team’s rigorous screening process, they are awarded a mandate with a clear objective and are subject to ongoing monitoring. All fund managers are required to adhere to exacting standards of transparency and communication.
To have access to the best fund managers in the industry, our investment managers conduct ongoing research on potential managers.
3. Constructing the portfolio
Constructing the portfolio is the responsibility of the appointed asset class manager or fund manager. It is the responsibility of investment management team to ensure that the activities of the various managers are properly integrated and co-ordinated so that they don’t work at cross-purposes to each other. This is particularly true in cases where more than one manager has been appointed to manage a particular asset class.
4. Monitoring and reporting
This vital part of the process is done with the help of detailed performance attribution analysis. This enables the team precisely to isolate the sources of strategy returns, whether strategic asset allocation decisions, financial market movements, manager security selection decisions or the like. Fundamental to the entire investment management process is the team’s belief in the value of rigorous research and analysis.
How do I know my money is secure?
In most of our cases, your retirement pot holds the majority of your wealth. For this reason, the decision of how to invest these funds is one of the biggest and most important investment decision you will ever make.
At Chartered Wealth Solutions, we invest in a trust. Neither we nor our investment consultants have access to client funds. The unit trust industry manages in excess of R900 billion, and is one of the safest places to invest.