Edify was founded in 2020. The team saw an opportunity to offer alternative multi-manager solutions to the retail sector after a career of building alternative investment solutions for institutional clients.
Meet the team
Christiaan Janse van Rensburg, Adam Bulkin and Chelsea Heath form the investment team at Edify. Christiaan has 16 years of investment experience. He has previously held positions such as Investment Manager and Specialist, Investment Analyst and Portfolio Manager at various top-rated investment firms.
Alongside him, Adam Bulkin, the former Head of Global Products at Alexander Forbes Investments, has 24 years of experience while Chelsea Heath has two years of investment experience and holds a Bachelor’s degree in investments. She is currently in the process of completing her Honours and CFA designation.
Investment philosophy
Central to our philosophy at Edify is a steadfast commitment to a structured and meticulously defined investment process. We uphold the belief that a methodical and disciplined approach to investing should yield outcomes that are not only consistent but also replicable over time.
At Edify, our portfolio construction methodology has evolved to incorporate a sophisticated building block approach, enabling us to deliver more resilient and adaptable investment solutions. This approach begins with a carefully designed strategic asset allocation framework, meticulously tailored to meet the client’s long-term investment objectives.
The building block approach organises the portfolio into distinct asset categories, each serving as a foundational element of the investment strategy. These include the SA Equity Block, Income Block, Offshore Equity Block, as well as a Defensive Hedge Fund and Growth Hedge Fund Block, with each block comprised of funds specifically aligned to its respective asset class.
Hedge funds
We can evidence empirically that the addition of hedge funds as an asset class to a balanced portfolio of traditional assets has increased returns and at the same time reduced volatility and drawdown risk. Hedge funds exploit different drivers of return which are not necessarily correlated with broad market movements. This is because hedge funds are absolute return focused. They attempt to deliver positive returns in all market conditions.
Process
We want to develop a deep knowledge of a manager’s strategy, risk management and approach. We need to understand the way in which a manager generates returns and how repeatable and reliable that methodology is. Ideally, we want to identify highly skilled managers who are able to generate that asymmetry of returns (capturing more of the upside than the downside of a given market) that we expect from hedge funds.
Ideally, we want to invest in managers whose interests are aligned with their clients and who have integrity, track records and robust risk management. This analysis uses qualitative and quantitative inputs.
We seek to blend managers that are diversified in terms of strategy, asset class risk and directional bias. The result is relatively low correlation among funds. Ultimately, we are attempting to achieve a blend which improves the efficient frontier and risk-adjusted returns. Fortunately, in South Africa, the hedge fund industry is fairly small, and our experience in the market means that we have developed a familiarity and knowledge of most of the credible managers.
Edify is a boutique that offers high-touch service to clients. Advisors have a direct line to the investment team. We are problem solvers and are always willing to assist in finding business solutions that make sense to advisors. Additionally, Edify hosts various initiatives that aim to educate and provide access to the underlying hedge fund managers utilised in the solutions.
Products and performance
Edify offers two hedge fund specific solutions:
- Edify Defensive Hedge is a cautious solution with a benchmark of CPI +3%. The fund is well suited for shorter-term investment goals and is also well suited to be used in living annuities.
- Edify Growth Hedge is a moderate aggressive risk with a benchmark of CPI +5%. The fund is well suited for Reg28 (where the advisor can allocate 10% to the solutions and be within regulation limits), discretionary investments and living annuities.
We offer:
- Bespoke and white-labelled solutions to both cat I and cat II advisors.
- Model portfolios across the risk spectrum, from strategic income solutions to long-term growth flexible mandates, Reg28, TFSA solutions and everything in between.
Performance
Edify Defensive Hedge
Target CPI +3%, delivered CPI +7.5% over 5 years with no negative return over any 12-month period.
- Annualised Performance (3yr): 12.6%
- Annualised Performance (5yr): 12.4%
- Standard deviation (5yr): 3.0%
- % Positive months: 86%
Edify Growth Hedge
Target CPI +5%, delivered CPI +13.2% over 5 years.
- Annualised Performance (3yr): 18.4%
- Annualised Performance (5yr): 18.7%
- Standard deviation (5yr): 7.4%
- % Positive months: 74%
Contact information:
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- Chelsea Heath
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- Telephone: 087 265 0072
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- Email: info@edifyinvest.co.za
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- Website: www.edifyinvest.co.za
