Discretionary Fund Management

MitonOptimal offers a range of Discretionary Fund Management (DFM) services to assist financial planners in providing their clients sound investment advice and effective implementation of that advice: a key to the FP’s value proposition. To do this properly is becoming a time- and resource-intensive exercise and the growing implications of getting it wrong are increasingly severe.

As a DFM manager, MitonOptimal partners with an ever-growing number of financial planners who recognise the importance of the investment function and the long-term benefit of sharing that responsibility with investment specialists; freeing themselves to focus on client relationships and other aspects of their business, thereby adding even more value to their clients. MitonOptimal sees this whole process as a long-term partnership solution, leaving all partners to concentrate on what they do best and ensuring that the clients reap the benefits. With offices in Cape Town, Johannesburg, Durban and Stellenbosch, we are able to offer a professional service to all of our SA-based clients.

What DFM services do we offer?

We offer three simple DFM services, based on the premise of treating clients fairly, the size of their portfolio, the client’s investment mandate and a desire to keep all costs to a minimum.

Tailored Model Portfolios

Bespoke Solutions

MitonOptimal PM Managed Models

MitonOptimal SA Managed Model Portfolio Suite

Tailored Model Portfolios

Our Tailored multi-asset model portfolios offer different investment objectives over various time horizons that are specifically designed to meet advisers’ structured specifications and for their exclusive access.

 

  • Monthly portfolio sheets (MDD)
  • Monthly attribution report
  • Unique buy lists
  • Monthly market momentum, value, trend and market cap research
  • Ad-hoc market and portfolio updates
  • Podcasts and articles of interest.
  • Quarterly Investment Committee Meetings
  • Ad-hoc client presentations
  • Quarterly client reporting

Bespoke Solutions

These are personalized portfolios, developed for individual high net worth clients according to their specific needs.

  • Investment Policy Statement Shares
    • Retirement (pre and post)
    • Discretionary
    • Private equity
    • Venture capital
  • Where appropriate, we will meet individually with these clients in partnership with the FSP.
  • Where appropriate, these solutions will be run off our MitonOptimal SA (Pty) Ltd Cat II licence (FSP 28160) or MitonOptimal Portfolio Management Cat II licence (FSP 734).

Reporting and Service Standards

  • Unique reporting at a client-specific level

MitonOptimal PM Managed Models

The MOPM Managed Models come with a professional and tested para-planning service.

  • Our para-planning team works with the Financial Planner and completes a number of the non-client facing tasks involved in preparing and administering a financial plan or service report for a client.
  • The para-planning service becomes your investment back-office for administration, financial advice and on-going client reporting, creating a consistent compliance framework and longevity to your practice.
  • This function was created to allow the financial planners to focus on the sell-side by working more closely with customers to identify their investment needs.

These are a suite of managed multi-asset portfolios that have a range of several objectives, acceptable volatility bands and time horizons, which are available on Life Company or Nominee platforms, examples;

  • Allan Gray
  • Discovery Invest
  • Glacier
  • Investec
  • Momentum
  • Old Mutual International
  • Old Mutual Wealth
  • Stanlib
  • PPS

Reporting and Service Standards

  • These models are run off our MitonOptimal Portfolio Management Cat II licence (FSP 734).
  • Monthly portfolio sheets (MDD)
  • Ad-hoc market and portfolio updates
  • Podcasts
  • Quarterly client reporting

MitonOptimal SA Managed Model Portfolio Suite

These are a range of independently managed models to meet the needs of FSPs investment clients seeking pre and post-retirement investment options with growth and income needs.

  • These are a range of independent models, catering for any clients risk appetite and need. The models can be used in any investment vehicle available on the lisp platforms rather than what we have got there currently.
  • Suitable for professional financial planners seeking model portfolios to complement their internal processes to facilitate client investments.
  • The models can be utilised as an “incubation” framework for FSP’s who wish to offer their clients a “Tailored” service in the future.

Reporting and Service Standards

  • Monthly portfolio sheets (MDD)
  • Quarterly client reporting

MitonOptimal Conservative Income
(low risk)

  • Benchmark – outperform the SA Multi-Asset Income Sector
  • CPI +2% real return objective
  • Rolling 36-month time horizon

MitonOptimal Conservative Growth
(low to moderate risk)

  • Benchmark – outperform the SA Multi-Asset Low Equity Sector
  • CPI +3% real return objective
  • Rolling 4-year time horizon

MitonOptimal Moderate Growth Reg. 28
(moderate risk)

  • Benchmark – outperform the SA Multi-Asset High Equity Sector – Balanced Funds
  • CPI +5% real return objective
  • Rolling 5-year time horizon

MitonOptimal Aggressive Growth
(high risk)

  • Benchmark – outperform the JSE ALSI Index over 7-year rolling periods
  • CPI +6-7% real return objective
  • Rolling 7-year time horizon

For more information on our Discretionary Fund Management (DFM) services, please contact us directly.

Why partner with MitonOptimal as your DFM?

  • Independence: We are an independent, owner-managed investment business, with a presence in the Channel Islands, South Africa, the Isle of Man and Asia. We are platform, fund and fund manager agnostic.
  • Investment expertise: We have experienced investment teams, located in both Guernsey and South Africa, who are focused on investment research and portfolio management.
  • One size does not fit all: We customize our services to your needs as a financial planner and business owner.
  • Administrative experience: We have administered model portfolios for well over a decade and have a highly experienced client service team to provide high-quality administrative support.
  • Track record: We have offered DFM services, both internationally and in South Africa, for over a decade.

What are the benefits of using MitonOptimal’s services?

  • We help your clients achieve their investment goals consistently over time.
  • We help you meet your regulatory and compliance obligations.
  • We reduce your risk in respect of investment advice, implementation and reporting.
  • We enable you to provide your clients with customized, branded investment reporting.
  • We free up your time so that you can focus on other areas of business that are of most benefit to your business and your clients.
  • We can facilitate succession planning and a smoother transition of clients, through having model portfolios in place.

What DFM services do you get if you partner with MitonOptimal?

  • We construct, monitor, manage and review discretionary and compulsory model portfolios.
  • We research asset classes and make strategic and tactical asset allocation decisions.
  • We research and select active and passive fund managers and investment products after conducting a full due diligence.
  • We provide regular, comprehensive and customized reporting to you and your clients.
  • We provide full administrative support in the set-up, implementation and ongoing management of portfolios.
  • We co-brand Monthly portfolio sheets for each portfolio.
  • We co-brand Quarterly reports offering market, manager and portfolio commentary.
  • Where appropriate, we offer regular meetings with portfolio managers.

For more information on our DFM services please contact us directly.

Download the MitonOptimal South Africa DFM brochure

Main Address

MitonOptimal South Africa (Pty) Limited
Great Westerford,
Suite 202,
South Wing, 2nd Floor,
240 Main Road,
Rondebosch, 7700,
South Africa

Phone

t: +27 (0) 21 689 3579
f: +27 (0) 21 685 6944

Regulatory Information

MitonOptimal South Africa (Pty) Limited (Registration No. 2005/032750/07) is regulated by the South Africa Financial Services Board – Licence no. 28160.

MitonOptimal Portfolio Management (Pty) Limited is an Authorised Financial Services Provider License No. 734, regulated by the South African Financial Services Board – Registered No. 2000/000717/07 – Vat No.4070188646.