INVESTEC WEALTH AND INVESTMENT - SELECT BCI EQUITY FUND

BACKGROUND

Investec Wealth and Investment was created out of the merger of Investec Private Client Securities, the Private Bank’s Wealth Management division and the acquisition of Rensburg Sheppards in the United Kingdom (UK). Investec Wealth and Investment is a global investment house, offering clients a depth of investment experience, personalised service and global reach. With established investment operations in the UK and SA, they currently manage in excess of R1024 billion on their clients’ behalf.

INVESTMENT PHILOSOPHY AND PROCESS

The Global Investment Strategy Group is a committee comprising several of the firm’s most experienced investment professionals across the key geographies (UK and SA). The committee is chaired by the global head of research, John Haynes.

The objective of the committee is to identify and ascribe probabilities to the “tailwinds and icebergs” that could potentially influence investment markets and formulate a risk-on or risk-off view of markets and asset classes. The output from the Global Investment Strategy Group is introduced into each Regional Strategy Group. In SA, this process is chaired by Professor Brian Kantor, the Chief Strategist. At this committee, specific tactical bands are set for investment mandates.

The Central Investment Committee is at the heart of the stock-selection process. The committee is chaired by Paul Deuchar, the head of Portfolio Management in SA. In addition, the committee incorporates seven senior portfolio managers and analysts, each representing a different area of specialty. It is the mandate of this committee to provide the framework for the implementation of buy-and-sell ideas.

Clive Stoutjesdyk heads up the equity research team. This team is responsible for fundamental bottom-up equity research. The process is thorough and entails research on sectors and companies within their investment universe. The process includes attending companies’ results presentations and management meetings. After this they then create a model of the respective company’s financial statements. This model helps the team to arrive at an assessment of the investment case for each company. Recommendations incorporate the top-down macro view provided by the Global Investment Strategy Group. The equity analysts have multi-sector responsibilities that enable them to hone their skills across various industries. Their longer-term focus and approach allow them to avoid overreacting to news, which often has no bearing on the longer-term valuation of companies.

CORE INVESTMENT TEAM