MitonOptimal Portfolio Management managed models celebrate their 10-year performance track record in South Africa. We are proud to announce the 10-year anniversary of the MitonOptimal South Africa Managed Portfolio Models. These models were originally established in the name of Bond Street Financial Services in November 2005 (Bond Street FS merged with MitonOptimal in 2014) on the Allan Gray LISP. From their inception, Roeloff Horne, now Head of MitonOptimal SA Portfolio Management, was instrumental in setting up and managing these portfolios on a client-by-client basis, with the assistance of his team.
The models were established to assist our IFA partners in managing their client portfolios and, in addition to our managing them, MitonOptimal’s operational team has reported to clients on a quarterly basis throughout the entire 10-year period.
A notable aspect of the models’ performance throughout the period since their inception has been their consistency on a risk-adjusted basis – no mean feat given a market backdrop that has included two equity bull markets, a credit crisis and some of the most extreme economic conditions in modern history. These often challenging conditions have provided a true test for an investment methodology that combines the MitonOptimal Mean-Variance Optimisation process (which sets out a Strategic Asset Allocation plan), our tactical input and fund selection skills. That we have delivered what we set out to achieve, when measured against the CPI Plus target returns and SA capital market indices over the past 3, 5 and 10 years, is certainly a testament to the effectiveness of that process.
The composition of these managed models has included exposure to MitonOptimal’s domestic multi-asset fund of funds, which were blended with offerings from the likes of Allan Gray, Coronation, Investec, Foord, PSG, Old Mutual and Prudential. More recently, we have included exposure to boutique managers, incorporating names such as Rezco, Truffle, Laurium and Prescient funds.
These Managed Model portfolios are one of two distinctly different Discretionary Managed Portfolio (DFM) services offered by MitonOptimal. We manage Discretionary as well as Regulation 28 Compliant portfolios, hence the presence of more than one set of CPI + 3, 4, 5 and 6% portfolio data in the accompanying table (our Managed Portfolio service caters for the needs of more than 4,000 clients and more than 40 advisors and we, therefore, cannot afford any advice gaps by simply proving three risk-profiled model portfolios).
Where an IFA requires a Category II FSP to manage a large client/asset base on Domestic LISPs, our Tailored Model Portfolio Service considers the IFA/Client’s existing book to pay respect to CGT implications, along with that adviser’s Strategic Asset Allocation plan.
The IFA partner forms an integral part of the Investment Committee, which meets on a quarterly basis to manage and discuss markets, funds and asset classes. We perform due diligence on each fund we hold in the portfolio and also those we identify via our quantitative screening process.
We have a track record in managing Tailored Model Portfolios and we have agreed on Terms of Business with a further six IFA business partners in the past 6 months alone.
That track record and our risk-adjusted performance generates much confidence in our experienced team, in bull and bear markets, providing our IFA partners with sufficient confidence to deal with the current volatility and low return markets in both the short and long term.
Celebrate 10-year performance track record in South Africa
