Investment Strategy and Focus Portfolios
Finfocus Investment Strategy and Focus Portfolios
Finfocus’s investment clients can choose between bespoke investment portfolios and our Focus range of model portfolios.
WHAT IS A BESPOKE PORTFOLIO?
An investment is bespoke when the client wants an investment portfolio constructed just for him/her and it usually includes funds that the investor prefers.
An investment is bespoke when the client wants an investment portfolio constructed just for him/her and it usually includes funds that the investor prefers.
WHAT IS A MODEL PORTFOLIO?
A model portfolio consists of a combination of funds used to achieve a specific outcome for example CPI + 4% per annum. Research is done on various funds. Combinations are tested in different ways to determine the fund choice and the percentage allocation to each fund in the model portfolio in order to achieve a specific outcome.
The Focus range of model portfolios are Wrap funds, meaning a combination of different funds managed by different Fund managers, strategically structured based on asset allocation principles, investment style, volatility and consistency of performance. They aim to achieve certain investment goals. The Fund managers (for example Allan Gray, Coronation, Prudential, Investec, PSG) are still the same asset managers we have entrusted with our client's money in the past. We have just taken our tried and tested investment approach and translated it into different Focus model portfolios. These Focus model portfolios can be used in different combinations and applied across different clients’ investment profiles to achieve different outcomes.
A model portfolio consists of a combination of funds used to achieve a specific outcome for example CPI + 4% per annum. Research is done on various funds. Combinations are tested in different ways to determine the fund choice and the percentage allocation to each fund in the model portfolio in order to achieve a specific outcome.
The Focus range of model portfolios are Wrap funds, meaning a combination of different funds managed by different Fund managers, strategically structured based on asset allocation principles, investment style, volatility and consistency of performance. They aim to achieve certain investment goals. The Fund managers (for example Allan Gray, Coronation, Prudential, Investec, PSG) are still the same asset managers we have entrusted with our client's money in the past. We have just taken our tried and tested investment approach and translated it into different Focus model portfolios. These Focus model portfolios can be used in different combinations and applied across different clients’ investment profiles to achieve different outcomes.
WHAT IT IS NOT?
It is not a Fund of Funds, where your money is invested in a registered unit trust managed by Finfocus. We therefore do not hold your money.
It is not a Fund of Funds, where your money is invested in a registered unit trust managed by Finfocus. We therefore do not hold your money.
WHY WE OFFER THE FOCUS RANGE OF MODEL PORTFOLIOS
We offer the Focus range of model portfolios because we are a fairly large team of advisers and we want to ensure that clients can expect consistency of returns on investments and advice given. We aim to ensure sustainability of service irrespective of employee changes and business risk management associated with a growing staff compliment.
The Focus portfolios are constructed by the three members of Finfocus’s Investment Committee. The two shareholders of Finfocus (Amy van Niekerk, Schalk van Niekerk) are members of the Investment Committee and are skilled investment advisers with combined experience of 56 years in the advice and investment environment. The Investment Committee is assisted by the Mi-Plan analysts and research team. Through Mi-Plan we have access to sophisticated analysis and modelling tools and it also brings a scientific approach to our Focus portfolio construction. All our advisers are kept up to date with any changes made to the portfolios, receive training on the funds used within the portfolios, and engage with the Investment Committee on a regular basis. More importantly, our advisers are also trained on how to combine the Focus portfolios to align with a specific client’s personal needs and expectations.
We offer the Focus range of model portfolios because we are a fairly large team of advisers and we want to ensure that clients can expect consistency of returns on investments and advice given. We aim to ensure sustainability of service irrespective of employee changes and business risk management associated with a growing staff compliment.
The Focus portfolios are constructed by the three members of Finfocus’s Investment Committee. The two shareholders of Finfocus (Amy van Niekerk, Schalk van Niekerk) are members of the Investment Committee and are skilled investment advisers with combined experience of 56 years in the advice and investment environment. The Investment Committee is assisted by the Mi-Plan analysts and research team. Through Mi-Plan we have access to sophisticated analysis and modelling tools and it also brings a scientific approach to our Focus portfolio construction. All our advisers are kept up to date with any changes made to the portfolios, receive training on the funds used within the portfolios, and engage with the Investment Committee on a regular basis. More importantly, our advisers are also trained on how to combine the Focus portfolios to align with a specific client’s personal needs and expectations.
MODEL PORTFOLIO COSTING
Our Focus model portfolio's costing is transparent. We specifically use the cheapest fund classes available for the funds within our Focus portfolios. We include passive/index funds where sensible with a view to enhance performance and further reduce fees.
Mi-Plan charges a fee of 0.1% per annum for technical and analytical research, as well as the administration of the Focus range of portfolios, on behalf of Finfocus, on the investment platforms of various product providers. The administrative services include a discretionary mandate. This means, that should the investment committee deem it necessary to amend the portfolios, it can be done without requiring each client to sign documents. This could reduce downside exposure and protect client investments against unnecessary delays caused by required documentation. Clients therefore have to sign a mandate to enable Mi-Plan to deliver the administrative services.
Our Focus model portfolio's costing is transparent. We specifically use the cheapest fund classes available for the funds within our Focus portfolios. We include passive/index funds where sensible with a view to enhance performance and further reduce fees.
Mi-Plan charges a fee of 0.1% per annum for technical and analytical research, as well as the administration of the Focus range of portfolios, on behalf of Finfocus, on the investment platforms of various product providers. The administrative services include a discretionary mandate. This means, that should the investment committee deem it necessary to amend the portfolios, it can be done without requiring each client to sign documents. This could reduce downside exposure and protect client investments against unnecessary delays caused by required documentation. Clients therefore have to sign a mandate to enable Mi-Plan to deliver the administrative services.
FREEDOM OF CHOICE
Clients can request bespoke portfolios and are not restricted to our Focus portfolios. They can even combine some of the Focus portfolios with funds of their choice. We encourage clients and advisers to use the model portfolios to ensure the equitable treatment of all clients and similar investment returns when dealing with Finfocus.
We believe that the use of the Focus range of model portfolios will also give our clients peace of mind that even in the event of an adviser retiring, dying or leaving Finfocus, they will still experience the same service, expertise and management of their investments.
Quarterly fund reports are available to all our clients who invest in one or more of the Focus portfolios.
Clients can request bespoke portfolios and are not restricted to our Focus portfolios. They can even combine some of the Focus portfolios with funds of their choice. We encourage clients and advisers to use the model portfolios to ensure the equitable treatment of all clients and similar investment returns when dealing with Finfocus.
We believe that the use of the Focus range of model portfolios will also give our clients peace of mind that even in the event of an adviser retiring, dying or leaving Finfocus, they will still experience the same service, expertise and management of their investments.
Quarterly fund reports are available to all our clients who invest in one or more of the Focus portfolios.
|
Investment Strategy |
Investment ( Return
) Objective |
Investment time for objectives to be
achieved |
Benchmark |
Risk Profile |
Regulation 28 Compliant |
Volatility |
|
Focus Fixed Income Portfolio |
Cash Plus |
2 years |
STeFI |
Conservative |
Yes |
Low |
|
Focus Cautious Portfolio |
CPI+2-3% |
2 – 3 years |
CPI+2% |
Moderate Conservative |
Yes |
Low |
|
Focus Defensive Growth Portfolio |
CPI+4-5% |
4 - 5 years |
CPI+4% |
Moderate |
Yes |
Medium |
|
Focus Balanced Growth Portfolio |
CPI+5-6% |
6 - 7 years |
CPI+5% |
Moderate Aggressive |
Yes |
Medium |
|
Focus Future Wealth Portfolio |
Capital Growth |
8 years plus |
60% SA General Equity Sector; 35% SA
Multi-Asset Flexible Sector; 5% SA Real Estate General Sector |
Aggressive |
No |
High |
|
Focus Global Growth Portfolio |
Capital Growth |
8 years plus |
50% Global Equity General Sector; 50% Global
Multi-Asset Flexible Sector |
Aggressive |
No |
High |
