In 2004, Investec Asset Management approved an MBO whereby Investec Analytics became Portfolio Analytics (Pty) Ltd. Analytics is a privately owned multi-manager business, structured to offer specialist, risk-profiled solutions for wealth management businesses and branded model portfolios as a Discretionary Fund Manager (DFM) to growing independent advisory businesses. In addition to the DFM services, Analytics Consulting provides bespoke investment, product, governance and operational support services to top-end CAT II discretionary FSPs. With offices in Johannesburg and Cape Town, Analytics is 100% owned by management and staff only, with no external shareholders.
The owner-manager culture focuses on creating long-term partnerships with our clients. In 2022 and 2024, Analytics took home the Citywire SA DFM of the Year award, while in 2023, the business won the Overall Service award.
With total group assets under management at R90- billion+, the key goal of Analytics us to grow independent businesses across South Africa
Investment philosophy
With total group assets under management at R90-billion+, the key goal of Analytics is to grow independent advisory businesses across South Africa. Analytics follows a multi-management philosophy, selecting and blending fund managers with different styles and skill sets across different asset classes in order to construct optimal diversified portfolios which are appropriate for various investors’ risk profiles.
When an advisor partners with us, we spend time understanding how they currently construct portfolios for their clients and then cater our advice on portfolio construction to their current mix of balanced, specialist or combination of funds. We will retain funds if they pass our evaluation. Our process includes both qualitative and quantitative evaluation of funds. When we combine the funds into a portfolio, we ensure that the funds are uncorrelated across a range of factors and perform simulations to evaluate the overall portfolio’s performance over varying market conditions.
Processes and performance
Our investment process covers four phases that address all facets of investment management:
- Design: The investment return objective and associated risk profile of portfolios are defined together with the appropriate time horizon over which the returns can be expected.
- Objective: The performance objective for each individual manager is defined so that, in aggregate, the selected managers contribute to delivering on the expectations for the portfolio.
- Maintenance: Regular performance measurement and monitoring provides insights into the way in which the portfolio is responding under prevailing market conditions and the extent to which the expected returns are being generated
- Evaluation: In this phase, regular reviews are undertaken to evaluate the overall portfolio performance relative to the initial design objectives.
We aim to construct diversified portfolios that will deliver consistent performance over rolling three year periods
Analytics provides bespoke and aggregated discretionary investment management services through IFA-branded model portfolios. Analytics also manages the Analytics fund range. Analytics Consulting provides technical support services to top-end CAT II discretionary FSPs. These services include independent investment consulting, product development, governance, legal and compliance services.
We aim to construct diversified portfolios that will deliver consistent performance over rolling three-year periods. Fund manager
performance is measured monthly. We will consider replacing a manager if there is a change in philosophy or process, if a lead portfolio manager leaves and we are not comfortable with the replacement manager, or if there is ongoing underperformance which can’t be explained.
Partnering with Analytics is a strategic decision that extends far beyond simply outsourcing investment management. It’s an investment in advisors’ time, freedom and ultimately, their peace of mind.
Daniel Schoeman is currently CIO of the Analytics multi-manager funds of funds. He has more than 19 years of investment and portfoliomanagement experience. He has previously worked at three of the largest multi-managers in South Africa, first at Investment Solutions, then joined Momentum Multi-Managers which later merged with MCubed to form Advantage Asset Managers. His main responsibilities include economic research, tactical asset allocation, investment manager research, portfolio construction, monitoring and risk management, system development and innovative investment research. He is also a member of Investment Committees of some of the largest advisor networks in South Africa, providing investment consulting services to these groups on an ongoing basis.
Telephone: -11 563 9600
Email: james@analytics.co.za
James Towell
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