OUR INVESTMENT PHILOSOPHY:

The ethos of our investment process for our equity portfolios is largely based on our belief that capital markets are inefficient. As a result, a large part of our analysis is centred on fundamentals where a bottom up approach is at the core of our decisions. Our in-house valuation models coupled with strenuous checks are implemented to ensure that we are paying the right price for quality companies. In conjunction with our fundamental analysis a top-down overlay is applied in order to highlight sectors, global trends and geographic regions we believe will present above average growth in the future.

Our process for stock picking filters through to our fund manager selection process for our standardised funds . Thorough meetings are held with several fund managers before an allocation is made. We ensure we have a deep understanding of their respective processes ensuring it aligns with our own all the while being aware of covariances between managers and their effect on our portfolios’ overall volatility. Our analysis feeds into our models and ensures that each respective fund sits on our efficient frontier providing an investment opportunity for investors with varying demands and needs. Our macro-overlay ensures we have views on all investable asset classes whereby changes are made to over or under weight a given asset class. This is to ensure that our portfolios have a large likelihood of reaching both our return and volatility targets for each respective fund.

We maintain the view that managing risk is the precursor to above average sustainable returns. For this reason, we are willing to make active changes where we see fit to ensure that our portfolios are best suited for the ongoing investment landscape at any given time. We believe that volatility is not the sole determinant of risk and simply forms part of our multivariate risk analysis of potential investment opportunities. We attribute much of our alpha generation to our open workspace where ideas are constantly discussed, researched and expanded upon. This has the added benefit of increasing the synergy within our diverse investment team whereby individual skills between our investment professionals come together towards our common goals.

OUR INVESTMENT PHILOSOPHY:

The ethos of our investment process for our equity portfolios is largely based on our belief that capital markets are inefficient. As a result, a large part of our analysis is centred on fundamentals where a bottom up approach is at the core of our decisions. Our in-house valuation models coupled with strenuous checks are implemented to ensure that we are paying the right price for quality companies. In conjunction with our fundamental analysis a top-down overlay is applied in order to highlight sectors, global trends and geographic regions we believe will present above average growth in the future.

Our process for stock picking filters through to our fund manager selection process for our standardised funds . Thorough meetings are held with several fund managers before an allocation is made. We ensure we have a deep understanding of their respective processes ensuring it aligns with our own all the while being aware of covariances between managers and their effect on our portfolios’ overall volatility. Our analysis feeds into our models and ensures that each respective fund sits on our efficient frontier providing an investment opportunity for investors with varying demands and needs. Our macro-overlay ensures we have views on all investable asset classes whereby changes are made to over or under weight a given asset class. This is to ensure that our portfolios have a large likelihood of reaching both our return and volatility targets for each respective fund.

We maintain the view that managing risk is the precursor to above average sustainable returns. For this reason, we are willing to make active changes where we see fit to ensure that our portfolios are best suited for the ongoing investment landscape at any given time. We believe that volatility is not the sole determinant of risk and simply forms part of our multivariate risk analysis of potential investment opportunities. We attribute much of our alpha generation to our open workspace where ideas are constantly discussed, researched and expanded upon. This has the added benefit of increasing the synergy within our diverse investment team whereby individual skills between our investment professionals come together towards our common goals.

Our investment beliefs:

We believe that diversification is integral to creating optimal portfolios and are committed to ensuring that our solutions are well diversified across a broad range of asset classes and asset types.

Maintaining low fees and managing costs

is extremely important to generating strong long-term returns and we are focused on managing both.

Manager selection
is also vital

and we employ a rigorous qualitative and quantitative approach to ensure that selected managers are diversified, top rated and cost effective, all the while seeking to reduce manager-specific performance risk.

Investing in our unit trusts provide a number of additional benefits including

Together with our independent research partner, Analytics Consulting, which acts as an independent member of the investment committee, the Helfin fund range is managed by a combined team of qualified and experienced investment professionals.

The Helfin fund range enables us to access institutionally priced funds (certain of which are passive investments), which are inaccessible to individual investors. The scale benefits of the partnership with Analytics Consulting also provides access to lower fee classes for other funds, which will reduce the cost impact for investors to the Helfin funds over time. The investment committee selects funds with an explicit focus on performance and costs to ensure that the solutions are ideally suited for our clients.

Furthermore, we are constantly looking for ways to further decrease costs to our clients and maintain strong oversight of all fees within our funds.

Helfin Global Capital and Analytics Consulting annual fees:

The total annual management fee applicable to the Helfin funds is up to 0.65% (ex VAT). This annual fee includes an annual fee of 0.25% (excluding VAT) that is payable to Analytics Consulting for their consulting services, an annual fee of 0.25% (excluding VAT) that is payable to Helfin Global Capital for management of the Helfin fund range and an annual administration fee of 0.15% (excluding VAT) that is payable to Ci, the administrator of the Helfin fund range.

In the Helfin funds, these fees will be deducted from within the unit trust fund before the declaration of your distributions. This effectively reduces the number of transactions that may attract tax and does not result in a Capital Gains Tax (‘’CGT”) event in respect of the deduction of these fees.

We may decide to invest in other top tier unit trusts funds from time to time.

Although this will increase the total cost of your investment, we will only do so where this enhances the portfolio construction of your investment.

We expect that the total cost you are exposed to will reduce over time.

Capital Gains Tax (“CGT”) creates challenges and complications for many investment managers who do not have access to tax-efficient investment vehicles. These investment managers incur CGT events for their clients whenever they vary their investment portfolios. In certain instances, investment managers may delay making necessary changes to investment portfolios in order to avoid CGT, which may not be in the best interest of investors over the long term.

CGT events may occur in certain instances when you switch into the Helfin fund range. Once you are invested in the Helfin funds, no further CGT will be payable until you redeem your investment or switch from one fund to another unit trust fund. Given the potential for CGT increases over the coming years, we believe it is in your interest to invest in unit trusts where you will remain unaffected when we change the composition of your underlying portfolios. This enables you to control your own tax affairs.

It is important to note that CGT is not levied within certain products. CGT is currently only applicable in voluntary products (including an Endowment).

Pre- and post-retirement investors (Preservation Funds, Retirement Annuities and Living Annuities) will not be affected by CGT.

By investing in the Helfin fund range, clients are able to get their funds to work almost instantly. Once client capital has been allocated, clients become exposed to a portfolio of instruments and funds that has been rigorously constructed to meet their objectives.

By investing in a unit trust fund, other than in extraordinary circumstances, you are able to switch out of your investment portfolio within 2 – 5 days.

As is the case with your current investment, your investment may however still be subject to certain regulatory liquidity constraints.

We are not restricted to the availability of funds or securities offered on any specific administrative platform. This allows us to access global markets including top rated internationally recognised funds, low-cost global ETFs and diverse direct instruments beyond what is available in South Africa.

Administration is significantly improved with no requirements for clients to provide additional documentation for changes within the funds.

As members of the Helfin Global Capital investment committee, Helfin advisors will have a deep understanding of the Helfin fund range and are able to choose the most appropriate solution for their clients. Furthermore, regular feedback on performance, managers and economic data is provided by the investment team directly to the advisors to answer any questions clients might have and to ensure continued appropriateness of the solutions.

The Helfin funds are hosted and administered by Ci Collective Investments (RF) (Pty) Ltd (“Ci”). Ci is approved by the Financial Sector Conduct Authority as a manager in terms of the Collective Investment Schemes Control Act.

We are happy to be able to confirm that the administration of the Vertu funds has been outsourced to two of the top third -party administrators in the country, namely:

FNZ – is a subsidiary of the FNZ Group.

Curo Fund Services – a wholly owned subsidiary of the Old Mutual and Sanlam groups of companies.

Through this strategy, we are confident that your investment will be administered effectively and safely.