OUR INVESTMENT PHILOSOPHY:
Bay Union adopts a long-term approach to managing investment portfolios and consequently selects asset managers and constructs risk-profiled portfolios that complement this philosophy.
In order to generate absolute real returns for our client's portfolios we have two key factors that we base our decisions on: Diversification and Asset Allocation.
Diversification
We feel that it is essential to diversify clients' portfolios across various asset classes in order to reduce risk and smooth returns over time. Over the past few years we have seen major fluctuations in returns from various asset classes and these have also been independent and uncorrelated from each other. Diversification will smooth out these fluctuations and protect the portfolio from unnecessary downside risk.
Asset Allocation
The selection of asset allocation is dependent upon the risk profile of the client. All client portfolios are spread amongst equities, bonds, property and cash. In addition, these asset classes are further split amongst South African markets and International markets. Once we have decided on a client's asset allocation based on his risk profile we do not vary this unnecessarily by trying to "time" the market. To get the precise market timing between asset classes spot on, is almost impossible. Markets are inherently volatile and market timing is very risky.
Risk Profiling:
before determining the type of investment and appropriate asset allocation for each client we need to determine his or her risk profile. What some people consider an unnecessary risk, others may consider a chance worth taking. That's what risk profiling is all about. It identifies how comfortable you are with certain investments.
Fund Manager Selection:
Bay Union is part of the 4 Arrows Investment Group which provides expertise, ideas and research with regard to client investments. This group has contracted with specialists who provide quantitative investment and risk management advice.
As a result of this process we have three risk profiled funds which form the core of most of our clients' investments.
Ongoing Monitoring and Reporting
Our involvement does not end once the initial recommendation has been implemented. We will continue to monitor the performance of the investment as well as that of the underlying funds to ensure that the investment objectives are met.
Often circumstances change during the period of the investment and we will stay in touch to ensure that these changing circumstances are catered for.
Contact our Investment Solutions Department:
If you would like more information on our Investment solutions please contact: Tony Dickinson or Nando Menin.
The Bay Union Operating Divisions:
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