1 year ago

Blue Chip Issue 82

  • Text
  • Financial
  • Advisors
  • Investments
  • Equity
  • Wealth
  • Offshore
  • Asset
  • Portfolio
  • Investing
  • Global
  • Momentum
Welcome to our Investing Offshore Special Edition of Blue Chip. a quarterly journal for the financial planning industry and the official publication of the Financial Planning Institute of Southern Africa NPC (FPI). Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry.


INVESTMENT One of the most important ways of adding value to clients is through our asset allocation and portfolio construction process. As a core fixed income manager, we firstly want to answer the question we always seem to get from clients: Should I be invested in cash, bonds or inflation-linked bonds? We believe we have, through time, built a skillset in firstly allocating to the correct fixed income asset class, but secondly also in allocating assets to the correct points on the various yield curves. Selecting the correct points on the yield curve is as important as selecting the correct fixed income asset class. It is no easy task, and the team is always trying to improve and refine our allocation process. That is what investing is all about – building a better tomorrow. LISTED PROPERTY Our listed property capability is an active equity manager with a primary focus on investing client capital in JSE-listed property companies and real estate investment trusts (REITs). Our listed property team manages capital of approximately R2 billion on behalf of South African retail and institutional clients. Our investment process is overseen by a talented and experienced team of real estate investment professionals with diverse industry-specific backgrounds including fund management, private equity real estate and direct property investment research and analysis. Pelo Manyeneng is head of property and also a portfolio manager. In his previous role, Manyeneng worked as a co-portfolio manager and equity analyst for the listed property team within Momentum Asset Management beginning in 2011. Before joining Momentum Asset Management, he worked at one of the leading development finance institutions in South Africa. Lawrence Koikoi is a co-portfolio manager in the listed property team. Before joining Momentum Investments, Koikoi worked at Stanlib Asset Management as a portfolio manager and equity analyst within the listed property business. Koikoi began his career at Standard Bank Corporate and Investment Banking where he spent time in private equity real estate. Madibana Letsoalo is an equity analyst and assistant portfolio manager in the team. Prior to joining the team, Letsoalo worked as a research analyst for JLL, a leading commercial real estate services company. Letsoalo began her career in the construction industry. Our people are our greatest assets and together the team is responsible for the overall management of the portfolios. Pelo Manyeneng Lawrence Koikoi Madibana Letsoalo 32

INVESTMENT Core to the team’s existence is a focus on being a responsible manager in how we look after client assets and being a trusted advisor to clients. We do this by investing client capital for the long term and having a clear focus on managing portfolios to deliver on clients’ investment outcomes. This outcome is underpinned by following a disciplined investment process that is anchored on investing in attractively valued businesses with great qualities, and which are expected to benefit from a combination of high-conviction company and industry specific themes. We also believe in the practical integration of ESG processes into our investment process by taking a proactive stance on ESG. We believe this approach is vital for the creation of sustainable long-term value for shareholders, while simultaneously having an immediate and long-term impact on the society and the environment in which our portfolio companies operate – all this for the benefit of future generations. RESEARCH HUB We believe in an evidence-based approach to investing. Sound and thorough investment research, coupled with detailed analytical evidence, goes a long way in finding unique investment opportunities and assist with risk management processes. Eugene Botha, deputy chief investment officer, oversees the strategic direction and construction of outcome-based investing (OBI) client portfolios and manages and sets the investment research agenda for our dedicated Investment Research and Innovation Hub, while making sure the research analysis, innovation and insights are incorporated into the design and development of world-class industry-relevant portfolio solutions. Botha holds a BSc (Honours) Actuarial Science degree as well as an MSc Quantitative Risk Management degree. With more than 16 years of industry experience, all spent at Momentum, Botha has been instrumental in developing the outcome-based investing philosophy. The Investment Research and Innovation Hub provides subject-matter expertise on technology trends, knowledge and strategic innovation management, and industry-specific insights for the investment management business to the benefit of clients. Our research effort is widely entrenched in the business. However, the dedicated research team consists of two members, Professor Evan Gilbert and Hamza Moosa. Professor Evan Gilbert holds a PhD in Finance from the University of Cambridge. He has worked in both academia and investment management over the past 20 years. As the research strategist of the research hub, he is responsible for initiating and managing diverse research projects. Hamza Moosa holds a BSc (Mathematical Sciences) degree and has 13 years of industry-related experience. He is senior quantitative research analyst and co-portfolio manager, jointly responsible for setting the strategic asset allocation of portfolios. He is also responsible for quantitative and statistical support and evidence to enhance investment decision-making in the multiasset portfolio solutions team and co-manages the Momentum Shariah Fund. The three key areas of focus of research that we deem important to clients and our business are as follows: Firstly, the broad investment management pillar, which includes portfolio construction in an evolving world, innovative investment ideas, responsible investing practices as well as alternative investment strategies. The second pillar covers clients, including understanding the psychological behaviour of clients and the impact on investment decisions to ultimately nudge them to make better decisions. The third pillar covers technology, specifically the application thereof in either of the other pillars. This would include the use of Big Data and machine learning techniques to further enhance the investment research effort and ultimately improve the investment outcomes. The focus of the research effort is very much premised on clients, because with us, investing is personal. Eugene Botha Evan Gilbert Hamza Moosa CORPORATE PORTFOLIO SOLUTIONS Nina Saad is head of institutional portfolio solutions and has 23 years of experience. Mohammed Sibda is a senior portfolio manager in the institutional portfolio solutions team. The Corporate Portfolio Solutions team at Momentum Investments creates and manages institutional outcome-based investment portfolios aligned to an investing philosophy that is anchored in a detailed portfolio construction process. This is underpinned by a thorough analysis of asset classes, a smart investment strategy, an identification of risk premia as well as an effective execution of our mandate. The team is responsible for our comprehensive factor range of risk-profiled portfolios and solutions for corporate clients. These portfolios are tailor-made for clients’ specific outcomes. Client goals are at the heart of building a portfolio in an outcome-based philosophy. 33

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