Framework

Our investment framework achieve the following:

  • Improve our decision-making process
  • Increase the probability of a successful outcome
  • Diversification across asset classes and investment styles
  • Remove the emotional component when investing
  • Create the necessary separation between our practice and our clients' funds
  • Ensure pro-active management with essential control and continuous review

The Framework

Read more >>

We emphasise the following:

  • Control over costs
  • Overall transparency (fees and performance)
  • Investment performance which is linked to risk
  • Efficient administration
  • Improved client service
  • No contractual obligations; i.e. freedom of choice related to our clients’ investment options as well as advisor

Our investment framework consists of 3 basic building blocks:

  1. The advisor (also known as the Financial Service Provider or Intermediary)
  2. Administration platform (sometimes called a LISP)
  3. The fund- or asset manager who decides on the asset allocation or mix e.g. between equities, bonds, listed property and cash

1. Financial Service Provider

The independent Financial Service Provider (FSP) offers the client access to an advanced decision-making process, as well as a financial planning model. In addition the advisor ensures that the fund manager's mandate corresponds with the short-, medium-, and long-term objectives of the client.

2. Administration Platform

Investments are placed through various administrators via a Nominees Account (an independently audited trust account). Transactions such as daily pricing, switches, capital gains tax etc. occur on the administration platform. We have agreements with Momentum, Investec, Allan Gray, and AIMS (ABSA Investment Management Services). For direct equity portfolio's we work in association with PSG Online and BJM (Bernard Jacobs and Mellett).

3. Fund Managers

Afrafin manage direct equity portfolios as well as inflation-targeted unit trust funds in collaboration with Investec, Prescient, Allan Gray and Coronation. The inflation-targeted investment strategies have allocations to all the asset classes (cash, bonds, equities, and listed property). The investment strategies each have a targeted return mandate to beat inflation by 2%, 4% en 6% per year (in real terms). Each mandate adheres to different timeframes. We achieve these objectives by modifying the asset allocation mix through various market cycles - sometimes referred to as "flexi-funds".

 

Follow Us