Segregated Investments

Typical range of portfolios

Segregated portfolios are aimed at large institutions, and can be structured to suit the client’s risk profile and preferences.  The underlying assets are registered in the name of the client.

 

The variety of portfolios managed can be broadly classified as below.  Where appropriate, portfolios gain international exposure via the multi-manager capability offered by Sanlam Multi-Manager International (SMMI).


Balanced investment portfolios

Our balanced investment portfolios incorporate all investment classes, including international investments. Balanced portfolios are either fully discretionary with unrestricted asset class ranges and managed in a peer group environment, or managed in a risk-profiled fashion, which includes narrower asset class ranges such as:

  • Conservative
  • Moderate; and

  • Aggressive


Specialist investment portfolios

Specialist investment portfolio consists of single asset classes such as equities, bonds or cash.


Equities

We manage general equity and sector-specific portfolios (e.g. resources, FINDI, INDI). These can either be managed in a best-house-view manner, which is relatively unconstrained with high conviction, or in a risk-controlled fashion against a benchmark such as:
  • Equity index tracker – zero tracking error;
  • Enhanced equity - maximum tracking error of 1.5%;
  • Moderate equity – benchmark cognisant, with a maximum tracking error of  4.5%; and
  • Unconstrained equity – no tracking error limit, not benchmarked cognisant. Click here to download product detail.

In addition to the fundamental research based portfolios, we also manage portfolios on a quantitative basis using a multi-factor model:
  • Enhanced index quants product – maximum tracking error of 2%; and
  • 130/30 quants product – similar to a hedge fund with the ability to sell shares short.

Bonds

Bond portfolios can either be managed in a best-house-view manner, which is relatively unconstrained with high conviction, or in a risk-controlled fashion against a benchmark such as:
  • Bond Index Tracking mandate – no tracking error;
  • Conservative Modified Duration Bond mandate – maximum 0.35 modified duration;
  • Moderate Modified Duration Bond mandate – maximum 0.75 modified duration;
  • Aggressive Modified Duration Bond mandate – maximum 1.25 modified duration; and
  • Specialised Aggressive Modified Duration Bond mandate – maximum 2.0 modified duration.

In addition, we can actively manage specialised bond portfolios consisting of:
  • Inflation-linked bonds;
  • Development bonds;
  • Credit-enhanced bonds; and
  • Infrastructure bonds. 

Cash portfolios

Clients can invest in either the Low Risk or Enhanced Cash portfolios. Alternatively, we can structure an investment portfolio according to a client’s specific needs.


Absolute Return portfolios

Our absolute return portfolios aim to minimise the risk of achieving returns less than a specified benchmark, where the benchmark is defined in absolute terms. Most of these portfolios are managed using all available asset classes, although some utilise only interest-bearing instruments.

Our portfolios have a two-tiered investment return target:
  • Over rolling three-year periods to achieve real returns of a pre-defined percent above inflation per annum before tax and costs, e.g. x% in excess of inflation as measured by the increase in the headline consumer price index; and
  • To never earn a negative return in any consecutive twelve-month period.

We offer the following portfolios, each clearly differentiated from the other, depending on each client’s specific requirements and risk appetite:
  • CPI + 3%;
  • CPI + 4%;
  • CPI + 5%; and
  • CPI + 6%.

Hedge funds

We manage fixed interest and equity hedge funds using a variety of strategies.



International Investments

Where appropriate, portfolios gain international exposure via the multi-manager capability offered by Sanlam Multi-Manager International (SMMI).

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