Multi-Manager platform launched by BJM
The asset management division of BJM Private Client Services – part of the Barnard Jacobs Mellet Holdings Group of stock broking and affiliated businesses – has launched a multi-manager arm dedicated to the quest for optimum investment returns at the lowest possible risk.
BJM Multi-Manager, based in Rosebank, Johannesburg, has begun operations with a product suite of five multi-managed funds and the assurance of strong demand from an established client base of high net worth individuals.
In recent years, the multi-management concept has won growing support from South African investors as fund management by a complementary ‘blend’ of asset managers diversifies the risk of under-performance by any one manager and guards against poor relative returns because a particular investment style falls out of favour with the market.
At the same time, expert selection of quality managers creates the prospect of superior returns while the multi-management model allows investors to delegate the task of monitoring performance and actively aligning asset allocations with market conditions.
Louis Bekker, head of BJM Multi-Manager, noted: “We launched our multi-management platform in response to growing demand from our clients. They see significant value in a model that actively guards against risk while pursuing optimum returns.
“In particular, they were looking for selected managers who share the BJM philosophy of absolute professionalism, alignment of one’s interest with that of the client, judicious focus on risk-related returns and considered asset allocation and stock selection that is informed by rigorous research.
“We have assured our clients that all asset managers assembled on our multi-management platforms share the BJM philosophy and will be guided by mandates that are framed in the best interests of our clients.”
Manager selection is guided by key factors that BJM believe will result in enhanced gains. These include:
- Ownership or profit-sharing by the asset manager
- Low staff turnover
- Focus on performance rather than the volume of assets under management
- Low portfolio turnover
- Portfolio and portfolio returns primarily driven by large cap stocks with a core holding in large caps
- Experienced and well trained staff with exceptional track records
- Asset managers who are unencumbered by operational and administrative duties
Bekker explained: “Before designing our platform, we looked extensively at how the multi-manager model performed internationally.
“We found that these factors worked in favour of the client and were more material than issues such as a firm’s age and size, product age and staff size.
“BJM is known for intense client focus. It was therefore vital to structure an offering that had nothing to do with what was convenient for us or what suited our own relationships, but had everything to do with what worked best for our client.”
BJM Multi-Manager adds value through the identification, selection, balancing and monitoring of the asset managers while providing constant local and international research.
The multi-manager model also creates cost efficiencies as BJM can amend portfolio composition without triggering a Capital Gains Tax event or incurring the charges that normally accompany the switching of investments or managers.
BJM Multi-Manager offers five funds:
1. The BJM Multi-Manager Income Fund (investing typically in money market products, short-dated bonds, cash, property, preference shares and other high yielding instruments)
2. The BJM Multi-Manager Core Equity Fund (a general equity fund with positions in a wide range of domestic equities)
3. The BJM Multi-Manager Bond Fund (focused on fixed-interest instruments including government bonds, corporate bonds and issuances from leading parastatals)
4. The BJM Multi-Manager Property Fund (investing in property shares and property loan stocks)
5. The BJM Multi-Manager Prudential Flexible Equity Fund (Regulation 28-compliant, with positions in property, equities and non-equity securities, and some offshore investments)
As a matter of policy, BJM Multi-Managers are investors in all funds in the range.
Louis Bekker added: “Market soundings indicate that these are the five core areas and will meet most client needs. If new needs emerge, they will be addressed.”
