We are proud to announce our partnership with PortfolioMetrix as one of our Global Investment Firms
Background: Global investing - ie selecting global managers to mange direct offshore investments can be tricky as well as time consuming and not absolutely within our expertise due to the huge universe; while we will continue our partnership with Sanlam Private Wealth UK on the share portfolio side, it has become increasingly difficult to keep up with global asset managers from South Africa. We have been looking for 4 years and watching different players in the market to try and ensure we make the right choice of multi-manager (which is a firm that chooses the single managers for us and constructs the portfolios.)
Why PortfolioMetrix: PortfolioMetrix was founded in 2010 with the intention of providing financial advisers with a real alternative to their central investment proposition. By combining world class investment management and world class technology, they offer a scalable alternative to advisory portfolios and a consistent and repeatable process as a substitute to discretionary fund managers, their mandate is to provide us and our clients with an alternative way to access discretionary investment management at a competitive price.
Investment performance since 2010 has demonstrated consistent and reliable risk and return separation of portfolios. They achieve this through their academically-robust, risk-based investment approach. Their team is handpicked and highly qualified. Currently, along with five who hold the internationally recognised Chartered Financial Analysts (CFA®) designation, we have six Certified Financial Planners (CFP®).
PortfolioMetrix have offices in South Africa, London, Sweden and Ireland.
Whats on offer: PortfolioMetrix has launched their new GPS blended solutions through which investors can invest in their two new multi-asset Fund of Funds (FoFs) in varying combinations. The PortfolioMetrix Global Diversified Fund and the PortfolioMetrix Global Equity Fund.
Benefits: Some of the key benefits of this type of structure are:
Larger Investable Universe
The structure provides a much wider universe of investible funds, as PortfolioMetrix can choose funds:
That are not be available on a given platform.
That are available in different currencies.
That may not wish to be marketed directly to South African clients due to regulatory constraints (Section 65).
The greater choice of funds ultimately means they can construct a better portfolio.
Trading in portfolios that include dozens of funds, across thousands of accounts on multiple platforms tends to be a cumbersome process. The FoF structure allows PortfolioMetrix to:
Materially reduce the costs and risks of trading by trading in bulk within the fund.
Substantially improve the speed at which trades can be implemented, enabling them to more rapidly implement decisions and respond to condition in the market.
Ensure that trades impact all accounts and all platforms at the same time.
When investing directly in the underlying funds, the mix of funds for a particular asset class in each model is a function of the size of the exposure to that asset class. Where the exposure to the asset class is small, fewer funds are included so as not to “clutter” portfolios with tiny holdings. This is sub-optimal and the FoF structure ensures all investors get the best investment view in all asset classes, regardless of the asset class weight in the portfolio.
Reduced trading costs
Trading in underlying third-party funds is done within the FoF, eliminating trading costs in the investors account.
Lower costs with underlying funds
It is easier to negotiate lower fee classes from the underlying funds as this does not require a cheaper fee class to be loaded on the platform.
We are excited and look forward to you benefiting from this partnership and seeing your money grow, creating more opportunities for you to achieve your goals.