To minimise the pressures of determining asset allocation and fund choices for investor portfolios, Momentum has launched Momentum Investment Consulting (MIC), a service to Financial Advisers that delivers an independent, well-researched and scientific process, by an institutional investment team with consulting expertise and MultiManager technologies.
The role of MIC is to provide Financial Advisers with a clear strategic direction through the maze of increasingly complex investment choices, investment portfolios and legislation, optimising the management of a Financial Adviser’s client portfolios and facilitating compliance with the necessary statutory requirements, giving Financial Advisers more time to concentrate on managing client relationships. The service is managed on a bespoke basis with terms defined by the Financial Advisers exact requirements.
The Service provides specialist investment consulting to select Independent Financial Advisers by facilitating consultation to a dedicated investment advisory team whose primary role is to oversee and provide assistance with investor portfolios.
Confidence in MultiManager capabilities enables MIC to combine traditional and alternative asset classes to meet the specific risk and return objectives of clients, working closely to construct the optimal strategic asset allocation for each portfolio with an increase in the predictability of returns and reduction of volatility. This differentiated approach is based on a broader range of asset classes defined by their different expected responses to changes in economic conditions. MIC tailors their approach for each asset class instead of uniformly applying a pre-defined approach to all asset classes. For example, internationally we analyse the level of exploitable inefficiencies and determine the appropriate level of active management for each asset class.
MIC capitalises on the expertise of specialised managers situated throughout the world, combined with long-standing experience in local and global investment management and portfolio structuring. MIC utilises the global asset management skills of RMB Asset Management International* (formerly RMB MultiManagers), as well as the manager selection, evaluation and blending skills of the group’s specialised domestic multi-manager, Advantage Asset Managers*.
Louise Usher (pictured), Head of Business Development for MIC, believes the success of the service can primarily be attributed to MIC’s willingness to truly understand the client’s business. She says: “The diversity of the particular needs of our clients is matched by the diverse adaptability of our skills-set. For example, we have been working with a large intermediary who operates across the Far and Middle East. Our competency involved getting to grips with the investment objectives of an expatriate living and working in Dubai versus the demands of wealthy Japanese businessmen. Our close working relationship with the client’s investment committee resulted in the delivery of an array of portfolios which ensured a tailored approach to their varied client base, whilst remaining cost competitive”.
MIC has already made significant inroads both locally and internationally. They currently boast R2.2 billion assets under management/advice internationally and R2.5 billion assets (including Momentum fund of funds) under management/advice domestically. The minimum portfolio size that will be considered is R50m.
Three key areas of expertise can provide real benefit:
1. Review of existing portfolio
This area of expertise has proven invaluable in re-evaluating resultant asset allocation within the current fund mix and highlighting areas of possible concern. Appraisal and implementation of minor changes often enhances the portfolio’s risk / return profile.
2. Provision of independent investment consulting to a Financial Adviser’s Investment Committee
This facility provides detailed quantitative and qualitative research of asset classes, styles, managers and funds, both domestically and internationally, as well as providing due diligence on recommended managers and their funds. This approach results in finding optimal combinations of approved managers and funds to out-perform portfolio benchmarks.
3. Discretionary Management of a bespoke, tailored Portfolio
Both domestic or international portfolios and combinations thereof can be tailored, presenting a differentiated approach to strategic asset allocation. With access to specialised experts the most tax efficient and cost effective structures are factored to secure anticipated returns and reduction of volatility. This facility includes regular and ongoing feedback and tailored fact sheets and investor newsletters.
Usher is excited about the role that MIC will play with key clients of Momentum Wealth. In conclusion she says: “The Investment Consulting service provides a complete portfolio solution to intermediaries and High Net Worth clients across the globe. With the end client demanding increasingly bespoke solutions, Momentum Investment Consulting offers outsourced investment management with proven specialists, whilst maintaining costs and ensuring the highest level of administrative efficiencies.”
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