P r i v a t e C l i e n t A s s e t M a n a g e m e n t

Transcription

1 P r i v a t e C l i e n t A s s e t M a n a g e m e n t

2 About Absa Investments Absa Investments is the investment house of South Africa s largest retail banking group, Absa Group Limited. Absa Investments offers a wide range of local and international investment products and services for all investors, from individuals looking to invest a small amount each month to companies and institutions looking for professional investment management of their assets. We have some of the most stringent risk controls in the business and as you would epect from Absa our focus is on providing our clients with investment opportunities that meet their needs, that are epertly managed and that offer wealth preserving and wealth building opportunities. In focussing on consistent long-term returns we take every precaution to ensure that the investments we select are reputable and well managed, and will add value to your portfolio. At Absa Investments we have a team of investment professionals that have etensive eperience and that are dedicated to providing our clients with ecellent products and services. Absa Investments is a one-stop investment shop with the cluster s various business units providing single and multimanager unit trust solutions, direct segregated equity portfolios, participation mortgage bonds, stockbroker services and a linked investment service provider (LISP) platform. In aggregate the seven business units within Absa Investments manage and administer over R140bn worth of client assets. Absa Asset Management, the country s fastest growing large fund manager, manages close to R100bn worth of those assets for both retail and institutional investors. Absa Investments Asset Management Private Client Asset Management Multi Management Unit Trusts Stockbroking Participation Bonds Linked Investments Private Client Asset Management High net worth individuals require a personalised investment product that is tailored to their unique needs and preferences. These clients are looking for an investment manager who will look at their circumstances and lifestyle and design an investment portfolio that will satisfy their specific requirements. Absa Asset Management Private Clients offers such a service to clients with over R1million to invest. The focus is on building wealth through long-term returns in portfolios individually tailored for each investor. Those portfolios may also be personalised to cater for a client s unique wealth preservation or income-generation needs

3 The team at Absa Asset Management Private Clients is well established and has a significant amount of industry knowledge and epertise. Long-term relationships with clients are key to building investment portfolios that meet epectations and, as the name suggests, the emphasis at Absa Asset Management Private Clients is on the client. Through ongoing communication and conversation with each client, we ensure the provision of a high quality of service together with an investment portfolio that meets the needs of each high net worth investor. Absa Asset Management Private Clients ( ABAM PC ) with over R6bn of private client funds under management and administration is fortunate to be able to leverage off the wealth of knowledge and epertise within Absa Asset Management, Absa Investments and the wider Absa and Barclays group. That resource supplements ABAM PC s own strong, well-established and professional investment team. The balance sheet and brand of both Absa and Barclays are key differentiators in the investment markets and both are strong business enablers. ABAM PC, which manages the investment portfolios of high net worth individuals, interacts regularly with the analysts and portfolio managers of Absa Asset Management through daily shared morning market meetings and regular asset allocation discussions. Our Investment Philosophy ABAM PC aims to provide its clients with discretionary sleep at night portfolios at a competitive fee. The sleep at night label is premised on well reasoned and researched asset allocation, stock selection and portfolio construction together with open channels of communication between ABAM PC s portfolio and relationship managers and their high net worth clients. Stock selection is limited to the quality counters amongst the 100 largest listed companies on the market (FTSE/JSE Top 40 and Mid-cap indices) with proven management and established track records of earnings and dividend growth over the medium to long term. ABAM PC s portfolios are constructed for inflation-beating growth over the longer-term and as a consequence, portfolio turnover is minimised. Trades are only effected to rebalance portfolios when warranted and to make strategic stock selection changes for longer-term outperformance. The sleep at night philosophy is further enhanced by sound governance and oversight through Absa s governance structures and ABAM PC s Policy Board which counts amongst its members the Managing Eecutive of Absa Investments, the Chief Investment Officer of Absa Asset Management and representatives from Absa Investments compliance, risk and legal support teams. ABAM PC s eperienced and knowledgeable administration team provide an additional level of comfort and security to clients with ABAM PC-managed investment portfolios. Our Clients The clients of Absa Asset Management Private Clients are the sort of people who would rather not invest in packaged products where they have no direct contact with their portfolio managers. Their investment portfolios are, to them, like tailor made suits - quality cloth, fine workmanship, made to measure and very comfortable. Plus of course, each client knows his or her tailor personally. At Absa Asset Management Private Clients, personal service is central to our philosophy. Yes, of course we have the skills and eperience to ensure solid, consistent investment performance over the long-term but additionally we believe in transparency and detailed client reporting. Most of all we believe in talking to our clients. That s why each client is assigned a Portfolio Manager as well as a Relationship Manager

4 Our Investment Portfolios Each and every client of Absa Asset Management Private Clients is invested into a portfolio that is designed to meet their unique investment objectives and that fits in with their investment constraints and risk profile. An investment strategy appropriate to the client s portfolio is agreed between the client and the portfolio manager at the outset and that strategy is applied to the portfolio and reviewed annually. The clients of ABAM PC are able to invest in a broad spectrum of asset classes from pure JSE-listed equities, property stocks and preference shares to money market investments, listed bonds and other fied-interest instruments. Derivatives may also be incorporated into portfolios for hedging purposes. Fact sheets that provide details on all of the single- and multi-asset class portfolios that are available from ABAM PC are updated quarterly on Our Investment Strategy Absa Asset Management Private Clients adopts a Top-down, Bottom-up approach to the management of its clients portfolios. The Top-down element of the strategy incorporates a comprehensive analysis of the global and local economies in order to identify key themes and trends that will drive investment performance over the medium to longer term. The outcome of this leg of the strategy is a clear view on epected future returns from the various asset classes (e.g. equities, bonds, cash) and the various sectors within the equity market (resources, industrials, financials). Using this information the investment team then analyses the prospects of individual shares and instruments amongst the various asset classes. In the equity market the stock selection process is firmly guided by an analysis of the epectations of the future earnings and dividend payments of individual shares relative to the market. Value opportunities are identified as well as those which offer strong long-term growth prospects. The product of the application of the ABAM PC investment strategy is a sound investment portfolio geared for growth over the longer term. Our Fees All portfolios (apart from preference share portfolios): Annual management fee: Minimum portfolio size: 1% p.a. or R p.a. whichever is the greater. R1m (one million rand). The management fee may be reduced if a licensed financial adviser is additionally providing ongoing advice for a fee. Preference share portfolios: Annual management fee: Minimum portfolio size: 0.5% p.a. or R8 000 p.a. whichever is the greater. R1m (one million rand). The management fee may be reduced if a licensed financial adviser is additionally providing ongoing advice for a fee. The annual management fee is calculated and levied on a monthly basis. Absa Asset Management Private Clients does not levy an upfront fee on new portfolios but may charge an initial advice fee of no more than 1% where no initial advice was provided by a Financial Adviser. The business introducer may, where they are appropriately licensed to dispense advice, negotiate an initial advice fee of no more than 3.0% with a client. Please note the fees are before VAT. ABAMPC Contact Details Contact one of our Relationship Managers on (011) / 0827 /

5 Absa Asset Management Private Client s Fund Map UNDERLYING ASSET FOCUS INCOME INVESTMENT GROWTH Low 1 STRATEGY High 10 DURATION RISK CAPITAL RISK RISK TERM LOW MED HIGH LOW MED HIGH FIXED INTEREST ABAM PC Preference Share Portfolio L - M Medium ASSET ALLOCATION ABAM PC Fleible Portfolio M Medium ABAM PC Balanced Portfolio M Medium ABAM PC Quattro Portfolio M Medium EQUITY ABAM PC Optimal Equity Portfolio M - H Medium yrs ABAM PC Property Portfolio M - H High yrs ABAM PC Equity Portfolio H High yrs M Q RISK DURATION -Sensitivity to interest rate movement of the underlying fied interest instruments INCOME based DISTRIBUTION frequency - Monthly M Quarterly Q Bi-Annually CAPITAL - Risk / eposure to equity securities GROWTH based EQUITY BANDS - Bands that the fund has eposure to underlying equity instruments Funds overall risk rating Low (L) to High (H) - refer to relevant fund fact sheet INVESTMENT STRATEGY Underlying instrument generation/orientation - INCOME 1-3 GROWTH 8-10 Asset Allocation Combination both TERM Term in-line with product mandate & specific investment objective. In-line with industry guidelines based on sector. These portfolios are all available within an Absa Life Endowment Wrapper. Contact one of our Relationship Managers for more information. Disclaimer : The product map provides factual insight into the funds particular mandate and management parameters, conceptualising product offering into a structured framework. The Fund Fact sheets must be consulted for further detailed and up-to-date information as this is a static overview for illustration purposes only as it does NOT provide financial advice. The Map doesn t constitute any recommendation or proposal to enter into any transaction. Absa Investments does not accept any liability, responsibility for any loss, damage or epense whatsoever direct or indirect or consequential incurred in relying on this information. Any person making use of this information does so entirely on their own accord. All information is subject to change without notice

6 Absa Portfolio Managers (Pty) Limited trading as Absa Asset Management Private Clients, Registration No: 1954/001116/07, Authorised Financial Services Provider (Licence No. 552)