STANLIB Multi-Manager Brochure

Transcription

1 STANLIB Multi-Manager Brochure

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3 01 Our belief Our franchise model 02 Overview The team 03 Investment philosophy Investment process and portfolio construction Investment risk management 05 Broader risk management Environmental, social and governance factors Capabilities Products for individuals and institutions 06 Contact details 07 Appendices Appendix 1: Investment Team collaboration Appendix 2: Team profiles

4 STANLIB Focused Investing

5 STANLIB is a leading asset management company in Africa, with assets under management and administration of R579 billion* (USD37 billion) for over retail and institutional clients across the African continent. We have a physical presence in ten African countries and are able to leverage from a wider Standard Bank Group Africa footprint. STANLIB Focused Investing Our belief There is no one size fits all investment solution for clients. Diverse clients need diverse investment outcomes. We therefore look at investments through many lenses and from many angles to give us an in-depth understanding of an ever changing investment landscape. Our investment model thus houses multiple focused units with unique philosophies, which cater for diverse client needs. These specialist investment teams handle market changes with agility and speed, as they are supported by dedicated research, trade, implementation, risk management and compliance teams. Our multi-specialist franchise model truly reflects the complex investment world we operate in and echoes our desire to deliver tailored solutions for diverse clients. The result is a broad investment offering designed to deliver our investment promise to clients. Our franchise model The STANLIB investment team consists of franchises made up of specialist teams of investment professionals. They manage clients assets in their area of expertise, namely: fixed interest, property, equities, multi-asset allocation, multi-management and alternatives. The power of focus and the strength of diversity STANLIB - built to meet the ever-evolving needs of our clients *As at 30 June

6 Overview Your investment portfolio is as reliant on the asset managers you select as it is on how you select and monitor them. That s why at STANLIB Multi-Manager we focus on both what s in your portfolio and what s behind it. Inside your portfolio The right asset managers The right asset managers for your investments are those whose approaches and capabilities best match your needs The right mix of assets and investment vehicles Beyond selecting the right managers we ensure that your investment is also in the right underlying assets and investment vehicles The right value A single point of entry to a range of diversified and compelling asset managers Behind your portfolio Global investment intelligence network Knowledge is the best foundation for investment decisions Total freedom of choice Our unlimited investment scope and our total impartiality ensure that your portfolio can always take advantage of the right opportunities no matter where or when they arise Understanding and information sharing Being clear about what it is you want to achieve is the first step towards achieving it Intelligent processes and smart systems All of our investments are supported by intelligent processes and smart systems Constant monitoring and dynamic action We are committed to constantly monitoring changes and to taking decisive, reasoned actions The team Joao Frasco CIO/Acting Head of STANLIB Multi-Manager BSc, MBA, CFA, CIPM, FASSA, FIA, CAIA Malcolm Holmes Head of Portfolio Management (South Africa) BCom(Hons), CFA Kent Grobbelaar Head of Portfolio Management (Global) BCom(Hons), ICMQ, FAUT, IMC Michael Farry Portfolio Manager BCom, CFA Jennifer Henry Portfolio Manager BCom(Hons), CFA 2

7 Investment philosophy We recognise that some asset managers may have the ability to deliver returns in excess of their benchmarks or passive alternatives We can identify these managers through a rigorous and integrated approach of quantitative and qualitative manager research Combining these managers with passive alternatives where appropriate, will produce superior net investment returns, with a greater consistency than single manager mandates Strategic (long-term) and tactical (short-term) asset allocation ensures our portfolios are appropriately designed and maintained to maximise the probability of meeting the investment objectives Our systematic and ongoing portfolio management process includes inputs from manager and market research, asset allocation and portfolio construction Portfolio risk is managed at each and every step of the process to ensure that portfolios are designed, constructed and maintained to minimise the chances of not meeting the investment objectives Investment process and portfolio construction We apply a disciplined, research-driven approach to our investment process, allowing investors to benefit from more consistent, long-term performance with lower levels of risk. Investment risk management is a fundamental and integral component of our investment philosophy and process and is therefore approached holistically and permeates through every step of our investment process, and not as a distinct component or an after-thought. The investment process comprises six steps, each of which has a fully integrated risk management framework 1. Portfolio specification In order to ensure that there is a clear understanding of how portfolios are expected to perform, a portfolio s objectives and constraints are defined, documented and communicated, using Portfolio Management Guidelines as a tool. Portfolios are then designed, constructed, managed and monitored against these. 2. Asset allocation Asset allocation provides the framework for portfolio construction and ongoing portfolio management, creating inputs for strategic (long-term) and tactical (short-term) decision-making. 3. Manager research In order to obtain an understanding of portfolio behavior and expectations of performance, we conduct thorough quantitative and qualitative analyses, culminating in an extensive investment due diligence. This results in the production of high conviction buy/hold/sell lists, as well as mandate performance expectations under different environments, defining events and sell triggers/disciplines. These then feed into the portfolio construction and ongoing management processes. 4. Portfolio construction Portfolios are designed to meet the investment objectives specified and communicated upfront. They are designed to maximize the chances of meeting competing investment objectives in a robust way, while taking the appropriate and acceptable level of risk inherent in all investment processes. There are many different manager-blending frameworks and we identify the most appropriate framework for the given portfolio. 5. Ongoing portfolio management 6 Product Review 1 Product Specifi cation Asset Allocation 2 As an additional source of value-add and risk management, we perform an ongoing evaluation of underlying managers and strategy. This includes implementing strategic and tactical decisions at asset allocation and manager selection levels; managing liquidity and cash flows into and out of portfolios; performance evaluation of portfolios and all the underlying contributors to performance; maintaining manager relationships; compliance management; and client reporting and communication. 6. Portfolio review 5 Portfolio Management Manager Research 3 A separate high level governance and risk management overview ensures that portfolios are meeting their competing investment objectives, that individual decisions throughout the investment process are adding value and that possible areas of concern are identified and resolved quickly. Portfolio Construction 4 3

8 Investment risk management Investment risk management is a fundamental component of our investment philosophy and process and is therefore approached holistically. It permeates to every part of our investment process, requiring participation and accountability from all individuals involved in the process. It is therefore important to understand the distinction between this and the investment risks inherent in portfolios such as credit and market risk. As a multi-manager, our investment risk management process begins at the time of portfolio specification and design, because by the time securities are included in portfolios by the underlying managers, you have already accepted the risks and have limited ability to mitigate them. We see ourselves as custodians of investors wealth and take this fiduciary duty very seriously. As such, our investment risk management philosophy does not begin at the level of individual securities and how these aggregate at the level of portfolios, but rather at the fundamental level of everything we do. Even the investment risk management component, is only a sub-set of the broader risk management within our business, which is itself encapsulated within the STANLIB risk management process. Our risk management framework at a high level requires the identification, measurement, mitigation, monitoring and reporting of investment risks. At the level above portfolios, it is a task delegated to highly skilled and experienced investment professionals who understand capital markets and investment businesses, and their related environments. At the level of portfolios, it is delegated to the portfolio management team (identification, measurement, monitoring) and the operational support team (reporting). Reporting is then consumed by the investment committee, which performs the oversight and governance. Portfolios and the underlying mandates/managers and investment strategies are informally monitored continuously by the portfolio managers and formally on a monthly basis as part of the Portfolio Review Sub-Committee meetings. Underlying mandates/managers are monitored through quarterly report-back meetings or conference calls with the managers. The review process focuses on, amongst other things, ensuring that strategies are adhered to. The senior investment team creates our investment risk management policies, with assistance from the rest of the team. Once finalised (a temporary state since it is always subject to revision), it is communicated broadly within the business and the various team heads are required to implement the sections that apply to them directly or identify where work/systems are required to implement. Where the process is distinct and formal, it has a monitoring and reporting element to facilitate the monitoring. Where the process is more qualitative and subjective, team collaboration is required to ensure that it is adhered to. There are many separate teams and people looking at risk management and compliance. For multi-managers, this begins at the single manager level where, even at this level, there is a separation of duties. At the STANLIB Multi-Manager level, the portfolio managers will look at this completely separately from STANLIB compliance. There is also an element of reporting that will be performed by the operational support team, which is separate to the portfolio management team. Finally, there will be oversight at the Portfolio Review Sub-Committee and at a less detailed level by the Investment Committee. Legal Compliance Risk management STANLIB Multi-Manager Portfolio management team - investment risk management Portfolio Review Sub- Committee Investment Committee Manager Research Team - investment due diligence Operations Team - operational due diligence Single Manager A Single Manager B Single Manager C Portfolio management Mandate A Risk management Compliance Portfolio management Mandate B Risk management Compliance Portfolio management Mandate C Risk management Compliance 4

9 Broader risk management Compliance and investment risk management are the cornerstones of our business. To this end, we have robust risk management, compliance and governance structures. Our highly experienced Middle Office consists of Compliance, Legal, and Risk Management, which provide systems and processes to ensure that mandate compliance are monitored. In addition to the portfolio monitoring tools mentioned above, we use the STATPRO system to measure our performance relative to benchmarks and indices, where appropriate. STATPRO is also used for performance attribution. Risk management is effected through appropriate diversification across sectors and counters and ensuring that investment sizes are within limits. We have made provision for IT and business recovery facilities including office space. Our robust systems are designed to ensure that our organisation operates efficiently at all times. Insurance policies for professional indemnity as well as directors and officers liability are always in place, through Standard Bank Insurance Brokers (Pty) Ltd. Environmental, social and governance factors STANLIB is committed to and is a signatory of the United Nations Principles for Responsible Investing (UNPRI). In addition, we manage assets in accordance with the Code for Responsible Investing in South Africa (CRISA). The work done with respect to the full implementation of these principles includes, but is not limited to, continuous monitoring of corporate governance and reputation risk, assessment of health and safety as well as environmental practices and shareholder activism. Capabilities A core belief of STANLIB Multi-Manager is to simplify an increasingly complex investment universe: We add value through a compelling model portfolio range, mitigating against single manager risk Our investment process provides improved levels of diversification aimed at better long term outcomes As a business we have access to large volumes of information which we continuously convert into investment knowledge for the benefit of adviser and their clients Over time we have built up strong relationships within the asset management industry. We extend this partnership model to advisers and investors alike, as it undoubtedly supports the execution of excellence in client experiences As manager of underlying managers, we are in an unique position to successfully and timeously adapt to everchanging investment environments We maintain our focus on service rather than selling products Products for individuals and institutions Our solutions are generally available in segregated or pooled forms, with certain solutions also available in collective investment scheme form (unit trusts) to individual investors. We also offer wrapped (model) portfolios to financial advisers. Equities (domestic and global) Fixed interest (domestic and global) Property Absolute return Balanced range Specialist risk-profled range Multi-asset class funds/ portfolios Building block funds/ portfolios 5

10 Contact details Should you have any questions about the detail provided in this document or if you would like to meet the portfolio manager to discuss his management style in greater depth please contact us using the following contact details: Albert Louw Director of Business Development T +27 (0) E albert.louw@stanlib.com Renate Potgieter Business Relationship Manager: Institutional T +27 (0) E renate.potgieter@stanlib.com Thobile Finca Investment Specialist: Retail T +27 (0) E thobile.finca@stanlib.com Ipeleng Lephoto Client Liaison Officer T +27 (0) E Ipeleng.Lephoto@stanlib.com 6

11 Appendices Appendix 1: Investment Team collaboration Weekly these are governance meetings to assess work progress and focus areas Monthly Portfolio Management Team meeting Manager Research Team meeting Research and Development Team meeting Manager Research Sub- Committee meeting Asset Allocation Sub- Committee meeting Portfolio construction meeting Portfolio Review Sub- Committee meeting Global conference call Review current team deliverables, discuss markets and portfolios at a high level to flag and debate any ideas or portfolio issues Discuss and manage the current manager research schedule Plan and prioritise future manager research trips and meetings Debate and evolve the manager research philosophy and process Discuss and manage current research and development projects Prioritise and plan new research initiatives and product development ideas Discuss and manage the delivery of tools and research to assist other teams within the business Ratify manager research recommendations from the analyst reports distributed throughout the month Discuss items or issues raised by team members relating to the manager report and recommendations distributed throughout the month Establish the forward looking investment view across the different asset classes (risk and return) Review and debate inputs from global and local managers, various broker sources and our own research, to determine where value lies and tactically position portfolios to suit our forward view Ultimate decision-making forum for portfolio construction and manager selection within our portfolios Debate and discussion of proposals from the portfolios managers for either approval or redirection for further research Review of portfolios and performance, as well as a critical assessment of how we can improve portfolios or investment process Held with STANLIB Multi-Manager Global, based in London On rotation we discuss global equities, global bonds and global markets to better understand the STANLIB Multi-Manager Global Equity and Global Bond funds and their respective underlying managers Review of both holdings and returns-based analysis, including insight from global partners Interpretation of STANLIB Multi-Manager global tactical asset allocation (TAA) views from the perspective of the SA investor Measurement and monitoring of the STANLIB Multi-Manager TAA value-add 7

12 Appendix 2: Team profles Joao Frasco BSc, MBA, CFA, CIPM, FASSA, FIA, CAIA Chief Investment Offcer Industry experience 12 years Joao joined STANLIB Multi-Manager in February 2012, as Chief Investment Officer. He joins from the Alexander Forbes Group, where he started in September 2006 in the Asset Consultants division in a consulting role, before moving to head up investment research for Alexander Forbes Financial Services in Joao started his career in employee benefit consulting at Glenvaal in 1991 before joining the IT industry. Joao holds a BSc (Actuarial Science and Mathematical Statistics). He is a CFA and CIPM Charterholder (CFA Institute in the US), as well as a Chartered Alternative Investment Analyst Association Charterholder (CAIA in the US). Joao is a qualified actuary and a Fellow of the Institute of Actuaries in the UK and the Actuarial Society of South Africa. PORTFOLIO MANAGEMENT Malcolm Holmes - BCom(Hons), CFA Head of Portfolio Management (South Africa) Industry experience 18 years Malcolm started his career at Standard Bank in 1995 and was transferred into the Asset Management division in Initially starting as a portfolio assistant, Malcolm moved quickly into research covering property, electronic and technology companies. Based on the expertise gained in analysing technology companies he became a registered portfolio manager and launched the Standard Bank Science and Technology Fund in January 1999 and the Standard Bank Global Technology Fund in October Allied to this, within the SCMB Asset Management portfolio management team, he was responsible for managing traditional balanced mandates for pension fund clients. In July 2002, he moved to Lodestone Investments which was subsequently renamed STANLIB Multi-Manager. As the Portfolio Manager he took responsibility for all the fund management s within the business and was instrumental in growing the retail and institutional asset base. Currently he is the Head of Portfolio Management, directly responsible for the investment management of all the portfolios within STANLIB Multi-Manager. Kent Grobbelaar - BCom(Hons), ICMQ, FAUT, IMC Head of Portfolio Management (Global) Industry experience 16 years Kent Grobbelaar is responsible for the management of the STANLIB Multi-Manager Global Funds. Before being seconded to FundQuest in London, Kent worked for STANLIB Asset Management (formerly SCMB) since 1997, and has over 10 years experience in managing global portfolios. Previously, Kent was offshore manager for Fidelity investments, having moved from his role as investment marketing manager for Standard Bank Fund Managers. Prior his current role he was Head of International Multi-Asset Allocation for the Group s foreign allowance funds. Michael Farry - BCom, CFA Portfolio Manager Industry experience 12 years Michael is responsible for making recommendations to the Investment Exco regarding manager selection, portfolio construction and asset allocation. His duties include the preparation of fund commentaries, identification of performance themes, holdings-based analysis of underlying funds and the co-ordination of the daily management of STANLIB Multi-Manager Funds. Prior to joining STANLIB Multi-Manager, Michael worked for six years as a Portfolio Manager for a fund of hedge funds based in San Diego, California. Michael began his career as a Commercial Credit Analyst for Absa Bank. Jennifer Henry - BCom(Hons), CFA Portfolio Manager Industry experience 7 years In addition to investment knowledge, Jennifer brings valuable experience and diversity to the team and it is expected that she will contribute at the highest level. As part of her formal training, Jennifer will co-manage some of the STANLIB Multi- Manager portfolios with Michael Farry and Malcolm but will ultimately take full responsibility for certain portfolios. Jennifer joined the team from Standard Bank Group Securities where she was an Equity Analyst covering Media, Electronic and IT stocks. She has over seven years of investment experience and has been highly rated in her area of expertise. 8

13 RESEARCH AND DEVELOPMENT MANAGER RESEARCH Richo Venter - BCom(Hons) (cum laude), CFA Research/Quantitative Analyst Industry experience 11 years Richo is involved in many facets of the Research and Development, conducting investment research and building tools for the Manager Research, Portfolio Management; and Sales and Marketing teams. One of his first projects is the implementation of the APT system and risk management for the Portfolio Management team more generally i.e. Bloomberg Alpha and Qlikview Holdings Based Analysis systems. Richo transferred to the Multi-Manager Research and Development Team from within STANLIB. He started his career at STANLIB as a Portfolio Compliance Manager before starting and heading up the STANLIB Implementation Team. The team subsequently merged into the STANLIB Risk, Analytics and Implementation Team and his role broadened to include risk management and analytical related responsibilities. Prior to STANLIB, Richo worked within the Collective Investments Schemes Department at the Financial Services Board. He started his career in 2004 at Life Healthcare as an Information Analyst. Richo holds a BCom (Hons) in Investment Management (cum laude) and is a CFA Charterholder. Naweed Hoosenmia - BSc(Hons) Quantitative Analyst Industry experience 4 years Naweed joined the STANLIB Multi-Manager Research and Development Team at as a Quantitative Analyst. Prior to STANLIB, Naweed was a Portfolio Risk Analyst at Eminence Partners, a Johannesburg-based long/short equity hedge fund operated under the Peregrine fund platform. Here he gained experience in monitoring and managing portfolio risk exposures; compiling daily risk and performance reports; and modeling equity risk and return data to assist the portfolio construction process. His actuarial training and quantitative experience at a single manager fund level, complements the Research and Development Team. Naweed holds a BSc(Hons) in Actuarial Science and has four years of work experience in financial services and investments Anele Ngidi - BCom Manager Research Analyst Industry experience 8 years Anele focuses on conducting manager research around traditional asset classes and strategies. This entails running the manager research process for allocated mandates (across strategies and managers), including visits to asset managers offices to perform the investment due diligence portion of the research. Anele joined STANLIB Multi-Manager after spending six years with Standard Bank Group Securities (formerly Credit Suisse Standard Securities) as an equity analyst. While at Standard Bank Group Securities, she covered various companies and sectors ranging from Small Cap Financials to Hotels and Leisure, where she obtained top internal client ratings. Anele holds a BCom in Accounting, as well as a branding qualification. Nowana Mlungwane - BCom(Hons) Manager Research Analyst Industry experience 4 years Nowana focuses on conducting manager research around traditional asset classes and strategies. This entails running the manager research process for allocated mandates (across strategies and managers), including visits to asset managers offices to perform the investment due diligence portion of the research. Nowana started her career at Thebe Stockbroking Ltd as a Junior Equity Research Analyst, before moving to 20/20 Insight Enterprise Development Specialists as an Enterprise Development Consultant/Analyst. She joins the STANLIB Multi-Manager Investment Team from Empowerdex, where she held the position of Ratings Analyst. Nowana holds a BCom (Hons) in Management Accounting and a Diploma in Investment Analysis and Portfolio Management. She has written the Registered Persons Exam: Equity and has completed courses in Financial Modeling, Company Equity Valuations and Advanced Company Valuations. Kamini Moodley HDipAcc, CA (SA) Manager Research Analyst Industry experience 7 years 9

14 Kamini focuses on conducting manager research around traditional asset classes and strategies. This entails running the manager research process for allocated mandates (across strategies and managers), including visits to asset managers offices to perform the investment due diligence portion of the research. Kamini joined the Investment Team from Afrifocus Securities Ltd where she worked for two years within the sell-side research, focusing predominately on small and midcap general mining companies. Prior to that she worked at Investec Securities Ltd also within the sell-side space as part of the global mining team. Before starting at Investec, Kamini worked at Gold Fields Ltd, within the international finance division focusing on financial analysis for their international operations in Ghana, Australia and South America. Kamini holds an HDipAcc and qualified as CA (SA) in 2007 and is studying towards becoming a CFA Charterholder. 10

15 Legal Notices Information and Content The information and content (collectively information ) provided herein are provided by STANLIB Asset Management ( STANLIBAM ) as general information for information purposes only. STANLIB does not guarantee the suitability or potential value of any information or particular investment source. Any information herein is not intended nor does it constitute financial, tax, legal, investment, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Adviser. Nothing contained herein constitutes a solicitation, recommendation, endorsement or offer by STANLIBAM. Copyright The information provided herein is the possession of STANLIBAM and are protected by copyright and intellectual property laws. The information may not be reproduced or distributed without the explicit consent of STANLIBAM. Disclaimer STANLIB has taken care to ensure that all information provided herein is true and accurate. STANLIB will therefore not be held responsible for any inaccuracies in the information herein. STANLIBAM shall not be responsible and disclaims all loss, liability or expense of any nature whatsoever which may be attributable (directly, indirectly or consequentially) to the use of the information provided. STANLIB Asset Management Limited Registration No: 1969/002753/06. A Financial Services Provider licensed under the Financial Advisory and Intermediary Services Act, 37 of FSP license No: 719. Document relevant as of 27 February 2015 Compliance number: 2519HX 11

16 17 Melrose Boulevard Melrose Arch 2196 PO Box 203 Melrose Arch 2076 T (SA only) T +27 (0) E contact@stanlib.com W stanlib.com GPS coordinates S , E W STANLIB Asset Management Limited Reg. No. 1969/002753/06 Authorised FSP in terms of the FAIS Act, 2002 (Licence No. 26/10/719)