STANLIB Asset Management has adopted a multiple specialist approach to managing the various asset classes. As part of this approach, we have outsourced the management of our offshore fixed interest solution to Brandywine Global Investment Management and our offshore equity solution to Origin Asset Management.
In managing STANLIB’s Fixed Interest mandates, Brandywine aims to do the following:
- Outperform the Barclays Capital Aggregate Global Index by at least 2% annually over a market cycle (approximately three to five years)
- Provide long-term returns in excess of the rate of inflation
- Provide capital preservation through focus on undervalued securities
The investment process focuses on the following:
- Investing in bonds with the highest real yields
- Managing currency in a way that is designed to protect principal and increase returns
- Patiently rotating among countries
- Controlling risk by purchasing undervalued securities
Brandywine Global believes in Value Investing; Active Management; Absolute Return and Mean Reversion.
Origin is an investment management boutique that specialises in Global and UK equity portfolio management for institutional clients.
It was founded in May 2005 by a team of investment professionals that now have over 90 years of combined experience in the industry.
The factors that appealed to STANLIB in selecting Origin as an offshore partner were the following key strengths:
- They form an experienced and cohesive team
- There is an alignment of client and manager interests: all the partners have invested their own capital in the business
- They have a clear, logical and systematic investment process
The investment philosophy is based on selecting shares on the basis of evidence, not opinion. The team employs a purely bottom-up approach to build a portfolio of companies that share four very specific characteristics:
- Demonstrating improving operating performance
- Already possessing a rising share price relative to the market
These criteria are measured objectively using publicly available financial data, earnings forecasts and historic share price information. Empirical evidence demonstrates that these four factors are effective across geographic regions, economic sectors and even different time periods. Any one of the factors could be used individually as the basis for a value adding strategy, but when they are used in combination, they offer stronger out-performance and lower volatility of returns.
STANLIB's managed portfolios, in it's offshore Unit Trust range are fund of funds, each comprising a carefully selected balance of portfolios from the Fidelity International range. The structure provides access to Fidelity's global network of investment management and research expertise.
Fidelity International, established nearly 40 years ago, has portfolio management and research staff in 12 financial centres around the world and offices in 23 countries. Fidelity International and its subsidiaries manage assets worth $141.8 billion.
The cornerstone of Fidelity’s investment approach is research. As well as studying financial results, analysts and fund managers visit companies, meet their managers and talk to suppliers, customers and distributors, giving the investment team a clear 360° view of each company they invest in.