Investment Analysis and Portfolio Management
The methodology is determined by the Investment Process and Strategy with goals and objectives as per the targets set out in the mandate and the Investment Policy Statement of our clients:
Having an appropriate investment strategy:
The setting of Investment goals and objectives are of utmost importance:
o Primary aim: Preservation of capital
o Investment period
o Risk appetite
o Regulatory constraints; i.e. Municipal Financial Management Act (“MFMA”)
o Investment Policy Constraints
Provide portfolio contrsuction with regards to market conditions and practical implications for the near future:
o Credit Analysis
o Views on Market
o Bottom-up outperformance generators
Portfolio Construction decisions:
o Asset Allocation
o Return Targets
o Risk Appetite
Total Investment Portfolio in 2 categories, namely:
o Short Term Investments: 24 – 48 hour liquidity.
o Long Term Investments: Funds not immediately required and deposited for a longer period.
Group Retirement Annuity
Allan Gray has a very cost effective Group Retirement Annuity System:
The Allan Gray Group Retirement Annuity enables employers to make a retirement savings solution available to their staff:
1.) Based on individual membership of the Allan Gray Retirement Annuity
2.) With the benefits of group-based administration
The Allan Gray Group RA recognises that many employers wish to encourage their staff to make provision for their future retirement – but at the same time, recognises that their staff may encounter change, both in their personal lives, employment and their financial requirements.
The Allan Gray Group Retirement Annuity:
1.) Caters for individual needs without the complexity of many group retirement funding arrangements, but any risk protection should be provided separately
2.) Enables staff to monitor and manage their own retirement savings
3.) Offers access to Allan Gray’s proven expertise and experience in managing retirement fund money
4.) Enables employers to offer their staff a tax-efficient, flexible and hassle-free way to save for their retirement
There are various structured products available in the market of which the following Banks or Financial Institutions are the market leaders: Investec, Momentum, BNP Paribas etc.
We structure the product according to client’s risk, needs and expectations. The term of a structured product ranges typically from 3 years to about 15 years.
Some of the structured products include:
Zero coupon deposits
Negotiable Certificates of Deposit
Capital guaranteed products with exposure to various international and local indexes. These products can also have a built-in guaranteed growth component.
Structured products which have a 50/50 growth and fixed deposit component.
Details are as follows for Call account:
• Minimum of R10 000
• Immediate liquidity for R1,000,000 plus.
• Only the client’s current account as registered beneficiary.
• Rates are market related and can change at any point in time ±6.5% per annum.
There are Income Funds available based on a 48-hour liquidity.
Details are as follows for an Income Fund:
• 48-hour liquidity
• Rates are market related and can change at any point in time.
Fund return objective: STeFI + 2 - 3% per annum.
Unit Trust Portfolio
There are currently ±1300 Unit Trust funds in South Africa.
The IFG Portfolio composition is modelled to suit your risk appetite multi-asset class portfolio. The underlying investments are allocated to a number of specialist Asset Managers selected by IFG based on their skills, experience, performance and operational and financial soundness. The aim of the Portfolio is to offer investors access to the best Asset Managers in their field, while ensuring that the risk profile of the strategy remains consistent over time.
To build reserve over a medium term period for future utilization with a conservative approach .
±7 day liquidity at any point in time over the period
CPI + 2 - 7% per annum over a typical 3-5 year investment period but no capital or growth guarantees
Asset class allocation:
This type of portfolio has typically a well-balanced approached over all 5 asset classes namely: Cash, Equity, Bond, Property and International
IFG Africa has the capability to effectively administer and structure a sinking fund in all aspects; i.e. to effectively pay off loans. We assist in the whole process of getting the loans to composing a pay-off structure through an endowment policy.