MITONOPTIMAL LAUNCHES RANGE OF HEDGE FUND MODEL PORTFOLIOS
MitonOptimal has launched a range of model portfolios made up of only SA absolute return funds and hedge funds. The ASTUTE range currently consists of two models and is suited to investors looking to diversify their long only investment portfolio with funds that have the capability to utilise a wider array of investment tools that can include gearing, shorting and the use of derivatives.
- MitonOptimal ASTUTE Guarded Portfolio targets CPI +4% and was created with the living annuity market in mind.
- MitonOptimal ASTUTE Bold Portfolio targets CPI+6% and was created for investors who are comfortable with taking on long term volatility.
Roeloff Horne, Head of SA Portfolio Management, has appointed Jacques de Kock as Lead Manager on these portfolios. Jacques will be assisted by Oscar de Waal and the rest of the Investment Team in terms of process and manager selection.
“I believe that these models complement our existing models, and where advisers have the correct licensing within their tailored model portfolios, where appropriate, we will incorporate absolute return ‘hedge’ funds into those models. We already have a two year track record including these strategies within some of our tailored models portfolios.” – Roeloff Horne, Head of SA Portfolio Management.
George Dell, Executive Director – DFM, said: “Over the years we have had numerous requests from various advisers and networks that we partner with looking for access to these absolute return type strategies – and have actually included them in some of our tailored solutions for advisers with the appropriate licence. We are extremely excited about these turnkey solutions and believe they will provide advisers with another option in providing a truly diversified investment offering for their clients.”
Due to Regulation 28 restrictions, these models will only be available in discretionary products, endowments and living annuities and to advisers who hold the 1.26 licence category. The range is available via the Momentum platform currently.
Lead Manager, Jacques de Kock, said: “It was a tremendously exciting and interesting experience doing the due diligence and back testing for these portfolios. We have some excellent hedge fund managers in South Africa with long term track records of not only preserving capital in down markets, but also providing excellent returns (after fees) through time. And with sequence risk being a major factor within retirement planning, it felt like a natural progression to utilise these attributes within portfolios. Hedge fund regulation is much more stringent than it was in the past, which provided peace of mind for us to start utilising these strategies in our portfolios.”
Whilst the range will be managed by Jacques de Kock with input from the MitonOptimal Investment Team – oversight will also be provided by the MitonOptimal Investment Committee.
Chair of the MitonOptimal Investment Committee, Gavin Betty, stated: “It is an exciting opportunity for MitonOptimal to be able to include absolute return and hedge funds in their client portfolio offering. In the existing dislocated and complex investment environment, access to managers that have broader mandates and multiple investment tools at their disposal to achieve risk adjusted absolute returns, has become not only a nice to have but an essential component of any investment portfolio.”
If you would like more information, please contact:
- George Dell – Executive Director, Discretionary Fund Management
+27 (0) 82 809 4220 | george@mitonoptimal.com
- Sarah Cowan – Head of Marketing
+27 (0) 79 821 2012 | sarah@mitonoptimal.com
MitonOptimal South Africa (Pty) Limited is an Authorised Financial Services Provider Licence No. 28160, regulated by the Financial Sector Conduct Authority (FSCA) – Registration No. 2005/032750/07. MitonOptimal Portfolio Management (Pty) Limited is an Authorised Financial Services Provider Licence No. 734, regulated by the FSCA – Registration No. 2000/000717/07.