OUR OFFERING | SOLUTIONS
- I² Income Solution
- I² Cautious Solution
- I² Moderate Solution
- i² Moderate Passive PSP Solution
- i² growth Solution
Description
An Income investor values protecting principal over seeking capital appreciation. This investor is comfortable accpeting lower returns for a higher degree of liquidity and/or stability. Typically, an Income investor primarily seeks to minimize risk and loss of principal. Generally low risk porfolios have minimal equity exposure or no equity exposure, resulting in far less volalitity and in turn the probability of capital loss is less likely.
Benchmark
ASISA South African IB Short Term category average
Platform Availability
AIMS, Glacier, Investec, Momentum & Stanlib
Description
A Cautious investor values protecting principal over seeking capital appreciation. This investor is comfortable accepting lower returns for a higher degree of liquidity and/or stability. Typically, a Cautious investor primarily seeks to minimize risk and loss of principal. Generally low risk portfolios have minimal equity exposure, resulting in far less volatility and in turn the probability of capital loss is less likely.
Benchmark
ASISA South African MA Low Equity category average
Platform Availability
Allan Gray, AIMS, Glacier, Investec, Momentum & Stanlib
Description
A Moderate investor values reducing risk and enhancing returns equally. This investor is willing to accept moderate levels of risk to seek higher long-term returns. A Moderate investor may endure a short-term loss of principal in exchange for long-term appreciation. This portfolio generally holds more equity exposure than low risk portfolios. In turn the expected volatility is higher than low risk portfolios.
Benchmark
ASISA South African MA High Equity category average
Platform Availability
Allan Gray, AIMS, Glacier, Investec, Momentum & Stanlib
Description
A Moderate investor values reducing risk and enhancing returns equally. This investor is willing to accept moderate levels of risk to seek higher long-term returns. A Moderate investor may endure a short-term loss of principal in exchange for long-term appreciation. This portfolio generally holds more equity exposure than low risk portfolios. In turn the expected volatility is higher than low risk portfolios.
Benchmark
ASISA South African MA High Equity category average
Platform Availability
Investec
Description
A high risk investor values maximizing returns and is willing to accept higher levels of risk. A High risk investor may endure large losses in favour of potentially higher long-term returns. Generally, these portfolios hold more equity exposure than any other risk profiled portfolios and therefore tend to carry higher volatility.
Benchmark
ASISA South African Equity General category average
Platform Availability
Allan Gray, AIMS, Glacier, Investec, Momentum & Stanlib
- I² TFSA (Tax Fee Savings Account) Solution
- I² Global Solution
- I² Global Solution (Direct)
- i² Global PSP Solution
- I² Overall Offering
Description
A high risk investor values maximizing returns and is willing to accept higher levels of risk. A High risk investor may endure large losses in favour of potentially higher long-term returns. Generally, these portfolios hold more equity exposure than any other risk profiled portfolios and therefore tend to carry higher volatility.
Benchmark
ASISA South African Equity General category average
Platform Availability
AIMS, Glacier, Investec, Momentum & Stanlib
Description
A High risk investor values maximizing returns and is willing to accept higher levels of risk. A High risk investor may endure large losses in favour of potentially higher long-term returns. Generally, these portfolios hold more equity exposure than any other risk profiled portfolios and therefore tend to carry higher volatility
Benchmark
ASISA Global MA High Equity category average
Platform Availability
AIMS, Glacier, Investec, Momentum & Stanlib
Description
High risk investor values maximizing returns and is willing to accept higher levels of risk. A High risk investor may endure large losses in favour of potentially higher long-term returns. Generally, these portfolios hold more equity exposure than any other risk profiled portfolios and therefore tend to carry higher volatility.
Benchmark
ASISA Global MA High Equity category average
Platform Availability
Capital International Group
Description
High risk investor values maximizing returns and is willing to accept higher levels of risk. A High risk investor may endure large losses in favour of potentially higher long-term returns. Generally, these portfolios hold more equity exposure than any other risk profiled portfolios and therefore tend to carry higher volatility.
Benchmark
ASISA Global MA High Equity category average
Platform Availability
Capital International Group
The i² range of solutions is constructed by a professional independent investment committee who is tasked with the selection and ongoing review of the specific underlying funds, thus continually ensuring that the correct blend of unit trust funds is combined to achieve the desired risk adjusted returns.
The portfolio is comprised of a selection of top rated, award winning fund managers with exceptional track records in achieving their respective benchmarks.
OUR PROCESS | FUND SELECTION
1INITIAL SCREENING
Fund size greater than R150 million
Three year minimum track record
Single Managers
2QUANTITATIVE ANALYSIS
PERFORMANCE ANALYSIS using cumulative (static) return, which is used to identify funds that display outperformance relative to their benchmarks over 1 – 10 year periods with most of the emphasis placed on longer periods, including statistical risk measure analysis aimed at understanding the volatility of the fund – i.e. standard deviation.
STATISTICAL RISK RETURN MEASURE ANALYSIS of the funds which is aimed at understanding the return achieved per unit of risk taken – i.e. Sharpe, Sortino and Information ratios.
DRAWDOWN ANALYSIS which is aimed at understanding the capital preservation ability of the fund over specific periods – i.e. maximum drawdowns.
CORRELATION ANALYSIS which is aimed at understanding the extent to which the inclusion of the selected funds supports the achievement of the required risk return objective under varying market conditions.
The quantitative analysis process is conducted quarterly.
3QUALITATIVE ANALYSIS
INVESTMENT PHILOSOPHY
Well defined and fundamentally sound Investment philosophy
INVESTMENT PROCESS
Disciplined and repeatable investment process
INVESTMENT TEAM
Stable, multi-skilled and experienced investment team
INVESTMENT CULTURE
Long-term & client focussed
COMPANY CHARACTERISTICS
Financially sound and stable
INCENTIVE STRUCTURE
Fair and aligned with investors
4FINAL SELECTION
Funds that meet the stringent qualitative requirements are further analysed and assessed in relation to one another. A final selection is approved by the investment committee and these funds are added to the watch list as building blocks for the I² portfolios.
OUR APPROACH | BUILDING BLOCK
DETERMINE THE CLIENT’S RISK PROFILE
This step is carried out by a skilled financial planner taking account of each individual client’s needs and specific circumstances.
MATCH THE CLIENT’S RISK PROFILE TO THE CORRECT STRATEGIC ASSET ALLOCATION
Five back-tested strategic asset allocation profiles have been formulated, based on the rigorous fund selection process. Each profile targets a return above inf lation at the lowest level of risk (i.e. maximizing risk-return profiles).
FUND SELECTION
During this phase the respective building block funds are selected from the I² approved fund range and allocated I accordance with the predetermined strategic asset class weightings.
ENSURE RISK PROFILES MATCH
Consideration is given to the holistic portfolio’s asset allocation relative to the client risk-return objective to ensure that they are correctly matched and if appropriate, the strategy is implemented.
QUARTERLY REVIEWS OF PORTFOLIOS
Emphasis is placed on rebalancing asset class weights as a result of changing market conditions and performance drift. In line with our philosophy of long-term investing, underlying funds are only replaced in the event that they show a consistent pattern of underperformance relative to their benchmark.
ACCESS TO ROBUST INVESTMENT TOOLS
Access to our robust investment tool backed by financial intelligence and fuelled by data and technology innovation. The investment tool will assist the advisor in providing a user friendly investment proposal, including Cashf lows, Risk Profiles, Factsheets and Market Insight.
