Portfolio construction
Each client can benefit from the many years of investment experience and knowledge within the FirstRand Group, and each client will be able to design their own unique portfolio. Our portfolio construction service is a three stage process
Stage One - The International Investment Centre controls the product selection function, as described below.
Stage Two - The Wealth Manager works directly with the client so that they may reach a carefully considered investment solution taking into account their risk profile, thereby recommending products that best suit the client’s needs and matching future assets and liabilities with returns ambitions.
Stage Three - We then work to establish an investment portfolio which is unique to that client.
We understand the importance of client participation, ensuring the most appropriate products are used in the portfolio construction process. The Wealth Manager and client are fully supported by the International Investment Centre throughout.
The three stage process is illustrated below:
Product Accreditation and Selection System (PASS)
In order to source the best products, we have developed a proprietary product appraisal system called “PASS”. PASS is a highly structured and robust manager due diligence and product selection process. PASS uses both quantitative and qualitative methods, examining performance and risk, plus characteristics such as manager style, process and solvency. The process fully utilises the FirstRand Group’s specialist multi-manager resources and experience in the understanding of funds and their managers. For each product we assess, a PASS report is produced which is reviewed by our Product Committee, which makes the final decision on whether or not to add it to our list of preferred products. PASS enables us to select the most appropriate products in each class from the very best market leading managers, thus ensuring the highest standards are set for our clients.
Approved Product Matrix
The approved product matrix is derived from the PASS process and consists of a series of core products, solutions and services. The matrix is divided into three main investment categories; secure, defensive and growth. We cover the following categories of products:
The Wealth Managers will work with their clients to reach a carefully considered investment solution. They will determine the client’s risk profile, selecting the products that best suit the client’s needs and matching assets with future liabilities and returns ambitions.
Clients who want a hands-on approach to managing their investments may prefer the advisory portfolio solution. Clients who do not want to be actively involved will probably be more suited to a discretionary portfolio solution.
