Argon Asset Management

Transcription

1 An African investment firm with global standards Argon Asset Management Challenges in the current environment and how to deal with them 19 May 2015 Kyle Hulett, CFA Head of Multi Asset Class FAIS Accreditation: Kyle Hulett (RE1, RE3 & RE5) is FAIS accredited Compliance Officer : Ms Bontle Matlou FSB approved number CO 3407, compliance@argonasset.co.za, Tel "An investor initiative in partnership with UNEP FI and the UN Global Compact".

2 Debt

3 Debt

4 Challenges in the current market environment Source: McKinsey 4

5 Demographics

6 Challenges in the current market environment Source: BCA 6

7 Productivity

8 GDP per capita (PPP 2014) GDP per capita (PPP 2014) Challenges in the current market environment US$ US$ South Africa China (Shanghai) Source: BCA Student test scores in math and science 8

9 Quantitative Easing

10 Challenges in the current market environment Euro area Switzerland Denmark Sweden -0.8 Source: BCA 10

11 Valuation

12 % % Challenges in the current market environment BOJ QQE starts JGB 10-Year yield (actual) Model estimation (in-sample) Shadow rate Source: Goldman Sachs 12

13 Pick your benchmark wisely

14 Frequency Cumulative frequency How to deal with them? 10% 9% 8% 7% 100% 90% 80% 70% 6% 5% 4% 3% 2% 1% 60% 50% 40% 30% 20% 10% 0% $4.000 $5.000 $6.000 $7.000 $8.000 $9.000 $ $ $ % Frequency Cumulative % Market cap weighted Equal weighted (2.1) Diversity weighting (2.3) Equal risk contribution (2.2) Risk clustering (2.4) Inverse volatility (2.5) MVP weighted (3.1) Maximum diversification weights (3.2) Risk efficient (3.3) Source: Clare, Motson

15 Understand factor exposure

16 How to deal with them? Value Cyclical value Defensive value Cash-flow value Deep-risky value Source: Bloomberg 16

17 Be tactical

18 How to deal with them? QE3 ends ECB QE End QE1 QE2 Twist Whatever it LTRO1 takes QE TALF QE Source: Bloomberg 18

19 Biography Kyle Hulett, CFA (Head of Multi Asset Class) B Bus Sc (Actuarial Science) UCT, Fellow of the Faculty of Actuaries FFA (UK) Kyle has over 14 years of multi organizational investment experience and is an accomplished money manager. He brings experience from established industry players such as Cadiz Asset Management, Prescient Securities and Symmetry where he occupied portfolio management roles in the absolute return space. 19

20 FAIS disclosures 1) The intermediary Argon Asset Management (Pty) Ltd ( ARGON ) is an authorised Financial Services Provider; FSP no. 835 Physical Address: 1st floor, Colinton House Tel: The Oval, 1 Oakdale Road, Fax: Newlands ) Representative(s) Name Qualification Experience Kyle Hulett CFA, B Bus Sc (Actuarial Science) UCT 14 years Fellow of the Faculty of Actuaries FFA (UK) ARGON has mandated the representative(s) in terms of contract(s) of employment to render the following services on its behalf: Kyle Hulett, Category 1&2 Securities and Instruments: Shares Securities and Instruments: Money market instruments Securities and Instruments: Bonds Securities and Instruments: Debentures and securitised debt Securities and Instruments: Derivative instruments Participatory interests in Collective Investment Schemes Foreign currency denominated investment instruments Deposit define in the banks Act exceeding 12 months Deposit defines in banks act 12 months or less Fit and proper requirements The Representative(s) comply with the fit and proper requirements per FAIS Act. 3) Compliance Officer Bontle Matlou CO 3407 Tel: Fax: compliance@argonasset.co.za 4) Key Individuals (responsible for the representatives): Mr Mothobi Seseli Dr Manas Bapela Mr Luyanda Joxo Mr Sello Setai Chief Executive Officer Chief Investment Officer Head of Institutional Business Head of Finance & Operations 5) Complaints handling procedure Should you have complaints regarding advice given by the representative(s) or their conduct, or any complaint relating to the services rendered by ARGON please contact the Compliance Officer in writing at the addresses supplied in section 1 or 3 above. Upon receipt of a written complaint we will provide you with an acknowledgement of receipt, within 48 hours and endeavour to resolve your complaint as soon as possible. Should there be any delays in resolving your complaint, we will advise you timeously. If your complaint is not resolved to your satisfaction you may direct it, in writing, to the Office of the Ombud for Financial Services Providers whose details are set out below. FAIS Ombud PO Box Lynwood Ridge, 0040 Telephone: Facsimile: ; Address: info@faisombud.co.za Responsibility for the Representative(s) ARGON takes full responsibility for the actions of the Representative(s) carried out in terms of the agreement concluded and has suitable guarantees in place, including professional indemnity cover, amongst others. 20

21 GIPS performance disclosures an independent investment management company registered in South Africa, company registration number 2002/016801/07 and an authorised financial services provider under the Financial Services Board (FSB) registration number 835 as well as FSB section 13B pension funds administrator registration number 24/434. The main business of Argon Asset Management is the provision of investment management services to institutional clients. Argon Asset Management manages South African specialist equity portfolios, SA fixed income portfolios and multi-asset class absolute return portfolios. Argon Asset Management (Pty) Ltd has been verified by an independent verifier. Copies of the verification reports are available on request. The composites include all portfolios that are managed according to the best investment view of Argon Asset Management, follow the same investment philosophy and process, have the same benchmark and Argon has total discretion. Performance figures are calculated and presented gross of management fees, custodial fees, trustee fees, audit fees but net of all transaction costs. Returns are calculated net of withholding taxes, any reclaimable portion is accounted for on receipt. The minimum portfolio size for inclusion in the composite is R10 million. No changes have taken place to this minimum asset level. A complete list and description of all composites is available on request by contacting Mr Luyanda Joxo on , luyanda@argonasset.co.za. Portfolio valuations are computed and performance results are reported in South African Rands (ZAR). No leverage is allowed in the implementation of the investment strategy. Multi asset class investment strategies include the use of derivatives. Additional information regarding the firm s policies and procedures for calculating and reporting performance results is available upon request. No representation is made that the performance of these investment accounts are indicative of future investment performance. The composite results are asset weighted on a monthly basis. Quarterly and annual composite performance figures are computed by linking monthly returns, resulting in a time weighted rate of return. The firm s annual fee schedule for the Argon product is available on request. 21

22 Contact details Luyanda Joxo, CFA Head of Institutional Business Jeremy Jutzen Client Relationship Officer Tel Tel Fax Fax Cell Cell Cape Town Office Johannesburg Office 1 st Floor, Colinton House, The Oval 7 th Floor, Fredman Towers 1 Oakdale Road, Newlands, Fredman Drive,Sandton, 2146 General Tel Insurance notification We have Professional indemnity and fidelity guarantee cover in place to indemnify us against negligence, theft, fraud, errors and omissions. 22