Welcome to Investment Solutions

Transcription

1

2 We are a solutions-focused business providing savings, wealth and investment solutions to corporations, trusts, retirement funds and individuals. Welcome to Investment Solutions We Simplify We live in a fast-paced world where we are bombarded with financial information. Whether this information involves statistics, academic input or the opinion of industry experts, there is no shortage of new ideas or smarter ways to invest. But in this world complexity is the norm. At Investment Solutions, we aim to work through the complexity to simplify matters. We distill good investment strategies from bad ones, identifying those talented investment managers that will outperform over time. We find solid investment opportunities, identify risks and blend asset classes, investment styles and asset managers to find a solution that allows our clients to sleep well at night, knowing it s all been taken care of. We Protect Extensive systems and controls are employed to safeguard our clients assets. We verify transactions, we price daily and we stand by those prices. We hold our asset managers accountable to the highest ethical standards and encourage this through the investment value chain right down to the companies in which we invest. We Listen Our consultative approach sets us apart. Our business model is set to evolve as our clients needs change, ensuring our value proposition remains relevant and valuable to our investors. In all our dealings we strive to provide expert guidance delivered with the highest degree of ethical conduct and professionalism. Chat to us, we can assist you to find the perfect solution to your investment needs. We Grow We aim to consistently achieve sustainable benchmark-beating returns at below-average risk. This means no nasty surprises. Derrick Msibi Managing Director

3 The company s reason for existence is to protect and grow the wealth of its clients by providing world-class investment-management services to help them achieve investment success. Fulfilling our Mission with a firm Vision Investment Solutions vision is to continue to be a successful investment-management and solutions organisation that helps clients achieve investment success and peace of mind on investment matters.

4 Executive Team Led by managing director Derrick Msibi, the close-knit executive team has an average tenure of 10 years. Guided by the company s internal value system, robust debate and diversity are encouraged, with expertise ranging from pensions, investment and business strategies to human resources, technology and finance. As a subsidiary company of Alexander Forbes, Derrick reports directly to Edward Kieswetter, the Alexander Forbes Group CEO. Seated (left to right): Derrick Msibi Managing Director, Zanele Thomas Head: Human Resources, Glenn Silverman Chief Investment Officer. Standing (left to right): Ntobeko Nyawo Financial Director, Manoj Gopal Head: Retail Operations, Steven Price Chief Operating Officer, Esti Smal Head: Technology, Mark Lindhiem Head: Platform Services, Muitheri Wahome Head: Technical Solutions, Alan Wood Head: Institutional Business.

5 1997 A proud 17-year track record R250 Billion in assets under management Independent of all asset managers 2000 Institutional clients have entrusted the company with pension and retirement savings Forty-thousand individuals have invested in its discretionary range of portfolios Investment Solutions Limited was established in It is the leading provider of multi-manager investment portfolios and related investment services in the South African market with assets under management of R250 billion. The company provides investment expertise and services to institutional and private investors. The company s value proposition is to: Provide a wide range of flexible investment services Achieve superior returns at lower than market risk Exceed clients service expectations Ensure the safe custody and accurate administration of clients assets Manage the assets entrusted to it responsibly for the benefit of clients and society Maintain a meaningful empowerment profile To achieve this, the company has adopted a spirit of investment and administration excellence and ensures a client-centric focus across the business. About the Company

6 The Multi-manager Legacy Investment Solutions is proud of its multi-manager legacy. The South African roots in multi-management go back to The industry expanded rapidly and at its peak, over 20 multi-managers were operating. As the industry came to terms with the fact that running a successful multi-manager required scale and significant investment in skilled expertise, the SA industry consolidated into essentially four main players, of which Investment Solutions is the largest by asset size and number of dedicated investment professionals.

7 INVESTOR Why Multi-management? The proliferation of funds available for selection makes a case for skilled and professional asset-manager selection The philosophy adds value through manager selection and portfolio construction Expertise is essential across multiple disciplines and all asset classes Diversification is managed through exposure to different asset managers and asset classes Risk-profiled products are embedded with ongoing advice Investment administration and legislative requirements are managed daily Asset Managers INVESTMENT SOLUTIONS PRODUCT GLOBAL Asset Managers Asset Managers Asset Managers FINANCIAL INSTRUMENTS SHARES, BONDS, Etc. LOCAL Asset Class 1 Asset Class 2 Asset Class 3 Asset Class 1 Asset Class 2 Asset Class 3 Asset Managers Asset Managers Administration Advice Cashflow Management Compliance Governance Mandate Negotiation Pricing Reporting Risk Management

8 ALEXANDER FORBES GLOBAL LARGE MANAGER WATCH Volatility vs Return Scatterplot - 3 Years ended 31 December % RETURN 19% 18% 17% 16% Investment Solutions Performer Investment Solutions Investment Approach The investment philosophy is based on the following beliefs: Markets are generally efficient, but there are inefficiencies that can be exploited Investment Solutions Investment Process This is aligned to the company s investment objective of: Achieving above-benchmark returns At below average risk 15% There are skilled/qualified managers that can outperform over time, but outperformance is cyclical With consistency over a three to five year investment horizon 14% Differing styles and risk premiums complement each other, and diversification across managers reduces the volatility of Investment Solutions follows its proprietary Manager Assessment Ranking System (MARS ) to select the best-pick managers in a outperformance particular manager universe. 13% 6.0% 6.5% 7.0% 7.5% 8.0% It is necessary to make active decisions to outperform consistently as markets are dynamic and volatile, hence it is also necessary to be This gives the company a better perspective of the investment-manager VOLATILITY Investment Solutions Performer Portfolio Single manager balanced portfolios adaptable and to continually assess the risks environment, allowing for effective blending of the best-pick managers to construct multi-managed portfolios. The chart illustrates the performance as well as the volatility (a measure of risk) of Investment Solutions flagship balanced portfolio, Performer, in the Alexander Forbes Global Large Manager Watch survey. Performer has outperformed many other single manager balanced portfolios at lower levels of risk. Source: Alexander Forbes Research & Product Development, Investment Solutions

9 Client Service The company listens to its clients and develops solutions as their needs and the environment change. A consultative approach is adopted in dealing with clients and a platform is provided for ease of access to information electronically and through one-on-one interactions. Useful tools and information specific to each client is available online through a pin-and-password protected site. The Treating Clients Fairly (TCF) principles have been embraced and the company will continue to work to ensure clients always get a fair deal.

10 While proud of its roots in multi-manager investments, Investment Solutions has expanded its business to offer a wide array of investment services, leveraging off its depth of expertise in these roots. Its offering is suitable for individuals as well as institutional investors such as retirement funds, corporates and trusts. Products & Services The company s value proposition is underpinned by it s multi-manager proposition, which ensures investment portfolios provide a less volatile return stream with improved long-term returns. Our value proposition is delivered through three core service areas: CUSTOMISED INVESTMENT SOLUTIONS MULTI-MANAGER PACKAGED PORTFOLIOS INVESTMENT ADMINISTRATION SOLUTIONS Investment Strategy Manager Selection Portfolio Construction Multi Asset Class Real Return Life Stage Investment Administration Investment Monitoring Governanace & Compliance Investment Administration Equity Specialist Range Global Investment Monitoring Governance & Compliance

11 Investment Administration Solutions Investment Solutions has built a powerful investment platform to better serve clients in an environment of ever-changing legislation, increased governance requirements and greater complexity. This investment platform, which supports total client assets exceeding R40 billion, provides a range of key investment services for retirement funds and other institutional investors. These services include: Investment governance Investment administration Manager research and selection Portfolio construction and bespoke solutions Why use an Investment Platform? Investment platforms can automate and simplify a large part of the investment-governance chain. This includes: Collecting large volumes of data as well as valuing and pricing portfolios Managing the entire legal and compliance process Identifying and reporting compliance breaches Managing complex cashflow arrangements and re-balancing portfolios Implementing local and global investment strategies As a result of Investment Solutions strong and long-standing relationships with local and global asset managers, clients can easily select and build their own local and global asset-manager solutions within a comprehensive governance framework. Benefits Flexibility and ease of implementation and switching Improved governance, disclosure and transparency Quicker response times and expertise via systems and processes Consolidated, customised reporting; extensive checks and reconciliations and better analytics Provision of an array of services from a single provider Full transparency of process and costs

12 Technical Solutions The Technical Solutions team was set up to meet the needs of larger clients seeking customised solutions and a more sophisticated and consultative delivery approach. The team has a broad range of complementary skills ranging from actuarial and consulting to investments and structuring that allows it to meet client needs. The team is responsible for designing and implementing bespoke investment strategies using local and global single-manager offerings on the Investment Solutions platform and/or the company s existing packaged products. The extent of Technical Solutions involvement depends on the gaps in knowledge and expertise clients want to fill. This includes: Developing bespoke investment strategies for clients Asset-liability modelling and portfolio optimisation Manager selection and portfolio construction Investment research Product development Technical Solutions leverages off the broader infrastructure of Investment Solutions, including the extensive asset-manager research and portfolio-construction experience of the Investment Team and the monitoring and reporting systems across the business. This means the team is well placed to provide exceptional service to clients.

13 Individual Investments Investment Solutions offers individual investors a comprehensive product suite for investment and retirement planning. A choice of multi-managed unit trust portfolios caters for the more conservative as well as for those looking for competitive returns at lower risk. Individual investors seeking diversification of style and funds benefit from a risk-profiled offering. The portfolios range from the conservative IS Superior Yield Fund to the IS Multi-Managed Balanced Fund of Funds and the aggressive IS Multi-Managed Equity Fund of Funds. Individual investors can access Investment Solutions products directly from the company through an intermediary or various Linked Investment Service Providers (LISPs) platforms.

14 Offshore Capability Investment Solutions has provided competitive global offerings to clients through its global partners and affiliates since the inception of the business in With increasing importance being placed on the integration of local and global assets and the significant contribution of global assets to overall investment outcomes, the company is well placed to meet clients future needs in this area. Its Research team, based in London, which follows the same process and philosophy applied across all the portfolios, reports directly to the Johannesburg office, with both offices covering over 100 offshore managers on a quantitative and qualitative basis. Investment Solutions Jersey Investment Solutions (Jersey) Limited offers a range of unit trusts to investors through the IS Strategic Global Fund range. This is an open-ended unit trust established in compliance with the laws of Jersey and constituted by a trust deed. The fund, which has built a solid track record since 1997, is regulated by the Jersey Financial Services Commission for the conduct of fund services business and is approved by the SA Financial Services Board. The fund largely follows a multi-manager approach by researching and then investing into a combination of other collective investment schemes. Its investment adviser is Investment Solutions Limited.

15 Responsible Investing Investment Solutions views responsible investing as an investment practice that integrates factors that may materially affect the sustainable performance of assets, including those of an environmental, social and governance (ESG) nature. The company believes in achieving responsible and sustainable benchmark-beating returns (responsible alpha) by ensuring it and the asset managers it selects consider and evaluate the risks and opportunities arising from incorporating ESG factors. The objective is to encourage local and global asset managers to consider and then incorporate appropriate responsible investing practices into their investment decision-making process, and to provide evidence that these practices are being applied. Investment Solutions embraces the principles of active engagement in terms of its own engagement with underlying asset managers and the asset managers engagement with the underlying corporate and/or institutions into which they invest. The company is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and endorses the Code for Responsible Investing in South Africa (CRISA).

16 Investment Solutions Technology Technology is a key business enabler that supports Investment Solutions vision and mission. The company has created reliable and secure systems that enable it to provide for the varying needs of individual and institutional investors. This platform is a combination of custom-built solutions and commercial off-theshelf products. Investment Solutions main investment-administration system is SAMMI, the concept of which was created when the business was established. The system securely manages the daily administration and pricing of the company s R250 billion in assets under management. It also provides secure online transacting and client reporting for over funds.

17 Procurement The participation of broad-based BEE-compliant service providers in procurement opportunities within the company is fully encouraged. Annual targets based on discretionary expenses have been set and a central database of suppliers contributes towards achieving these. This process encourages employees to build a database to procure from black-empowered or -owned enterprises. Non-BEE suppliers are also encouraged to fast-track their empowerment process. The company believes in contributing positively to sustainable economic development. Recruitment Investment Solutions recruitment process aims to facilitate equitable representation across all levels of the business. Transformation The company s success in achieving its strategic objectives depends largely on recruiting and retaining the best talent in the market for roles that suit their experience, competencies, technical know-how and culture For its concerted efforts, the company is recognised as a Level Three Black Economic Empowerment (BEE) contributor by fit. The recruiting process is fair, consistent and all-inclusive. The Human Resources division operates on the the Department of Trade and Industry. premise that an organisation s success stems directly from the intellectual capital of its people. Transformation is a key strategic business imperative and in its effort to be a leader in this endeavour, Investment Solutions The more engaged and empowered people are, the greater the competitive advantage, so the company s has an integrated approach to sustainably achieving this goal. As a corporate citizen, the company considers itself socially mandate is to attract, develop, motivate and retain high-calibre people whose personal values are aligned responsible for its communities and embraces and encourages diversity in its transformation initiatives. to those of Investment Solutions.

18 Regulation Risk and compliance is more than just securing regulatory licences and requirements, Investment Solutions Risk and Compliance divisions ensure approvals. It is about doing the right thing, managing the actual and potential rules, policies and processes are embedded within the business to provide all risks the business may face and safeguarding the company and investors from stakeholders, from the board of directors down, with a sense of certainty, order reputational and financial distress. and comfort in how to deal with each piece of relevant legislation. The regulatory environment has become increasingly onerous as a result of Prudent compliance and proper risk management reduce business disruptions, additional legislation and regulatory requirements, as well as demands for complaints and regulatory penalties, making these divisions a vital component greater transparency and better communication and reporting. To meet these of the Investment Solutions business model.

19 Johannesburg South Africa Building 1, Inanda Greens Office Park, 54 Wierda Road West, Wierda Valley, RSA P O Box , Sandton, 2146, RSA t: +27 (11) f: +27 (11) Cape Town South Africa Block A, The Boulevard, Searle Street, Woodstock, RSA P O Box 253, Cape Town 8000, RSA t: +27 (21) f: +27 (21) London 6 Bevis Marks London, EC3A7AF t: +44 (0) f: +44 (0) Follow us on Connect with us on Linkedin: Investment Solutions (South Africa)