Investment Proposition and Philosophy

Real returns optimised within a risk framework

Our investment philosophy aims to meet the twin objectives of capital preservation and capital appreciation over the long term, through an investment strategy that considers diverse sources of return while being risk aware. The outcome of this process is to deliver real returns which are in line with with your risk appetite.

Our fundamental aim is to maximise risk-adjusted returns for our clients, and this is done both at the asset class level in the case of actively managed funds and at asset allocation level in the case of multi asset funds. We follow a consistent investment process based on the conviction that returns are obtained through a combination of the correct strategic and tactical asset allocation. We value each asset class to identify mispricing opportunities which can be captured either via selection within an asset class or by our asset allocation process when comparing across asset classes.

Our team-driven and prudent investment process is applied across all our investment decisions and across all mandates and funds with individual accountability given to the portfolio managers managing your money. We follow a systematic, fundamentally based approach to investing which allows us to avoid behavioural biases.

Top-down and Bottom-up

We believe that asset prices are driven both by macro factors (top-down) and bottom-up fundamentals. By analysing local and global economic data, we identify trends that will influence asset prices.

Our investment approach is built on the below principles:

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Macro

Macro factors are important inputs in the asset allocation and valuation process. We use a wide range of economic and market data alongside an array of proprietary inputs from one of the largest and most sophisticated teams of economists in the country. Macro awareness aims to incorporate big-picture thinking into the investment process, a key component in a fast-changing world.

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Valuation

We rely on asset class valuation when making active investment decisions. We employ asset class specialists onshore and offshore to be able to provide the best possible understanding of specific asset classes. The bottom-up valuation assists in asset allocation decision-making. We have access to a broad spectrum of assets and a fundamental advantage when it comes to originating, selecting and monitoring credit which is an important building block in many of the fixed income funds.

By combining a top-down view and bottom-up valuations, we are able to determine the best possible combination of asset classes to deliver on your real return targets, while optimising for risk. We also account for ESG (Environmental, Social and Governance) factors when analysing companies to evaluate the sustainability of their returns in the long term.

Responsible Investing

Our investment decisions consider a wide range of factors that may affect the risk and return profile of the investments we make, now and in the future. Our long-term success is not measured in investment performance alone, but also on the impact on society and the environment.

We recognise that responsible companies ought to have good governance processes, effective risk management and compliance functions and stakeholder engagement. They prepare for changes in their operating environment, from shifts in public opinion to the challenges of resource scarcity and the impact of climate change.

Incorporating environmental, social and governance factors into our investment and ownership decisions supports the pursuit of superior risk-adjusted returns for our clients.

Ashburton Investments is a participant in the Association for Savings and Investment South Africa’s Responsible Investing sub-committee and fully endorse the Codes for Responsible Investing South Africa. We are a signatory to the United Nations Principles for Responsible Investment (UNPRI).