How do I know my money is secure?

Because in most of our cases, our retirement pot holds the majority of our wealth, the decision of how to invest these finances is probably the biggest and most important investment decision we will ever make. Should we get it wrong, our retirement could be adversely affected and irreparably damaged.

At Chartered Wealth Solutions, all monies are invested in a Trust and at no point do we as financial planners, or our investment consultants, have any access to clients’ funds. The unit trust industry manages in excess of R900 billion, and is one of the safest places to invest money.

We are unique in the fact that we do not invest in retail funds but have institutionally managed funds managed under a segregated mandate at a reduced fee to the market.

If you have gone through our financial planning process, you will have seen how we run numerous scenarios using our leading financial planning tools. With the guidance of one of our retirement planners, you will have got to a point where you know, possibly for the first time, what you need to target as an investment return to ensure that your money outlives you. We call this your Investment Strategy.

At Chartered Wealth Solutions, we maintain our independence in relation to the products selected to be part of a client’s Investment Strategy. We have a strong view that we should have no influence on the party who designs your Investment Strategy. We therefore use an independent investment consulting company for this purpose and their role includes the following:

Investment philosophy

The Research and Investment Management team is responsible for the effective implementation of advice to enable clients to achieve their lifestyle goals reliably over time.

The team’s investment approach is based on a conservative investment philosophy built around four key principles, which we believe remain constant, regardless of market circumstances. These are:


Investment process

The investment process consists of four key steps:

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 of as long as 100 years) is used 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 selecting asset managers, we follow a strict process aimed at consistently selecting top quality managers who are capable of delivering excess returns over the long term. Our process is logical and thorough, and we do not select a fund manager based on short-term investment performance. Instead, we 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 manager has passed our rigorous screening process, they are awarded a mandate with a clear objective and are subject to ongoing monitoring. All managers are required to adhere to exacting standards of transparency and communication.

In order to have access to the best fund managers in the industry, we continually undertake research on potential managers.

3. Constructing the portfolio

Constructing the portfolio is the responsibility of the appointed asset class manager. It is the responsibility of the investment consulting 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 to precisely 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.