Let’s Create Wealth & Peace of Mind Together.
Mon - Thu: 8:00am - 4:30pm
Friday:         8:00am - 1:00pm
Saturday & Sunday Closed
27 Mahogany Street, Olympus Estate
Pretoria East, South Africa, 0081
+27 12 809 2993 FSB 4750
GET APPOINTMENT

Monitoring and review process

Monitoring Tools

Managers are closely monitored and reviewed regularly to ensure that they do not deviate from their DNA which led to their inclusion in the funds to begin with. Monitoring and reviewing involves both quantitative and qualitative elements. On the quantitative side, we track the movement of managers within our quantitative framework over various periods. Qualitatively, we look out for the following:

  • Material changes in the fund management team
  • Loss of investor confidence in brand
  • Mismatch between the numbers achieved and the process implemented. Is the manager doing what he says he is doing?
  • Fund becoming too large to efficiently respond to changes in market conditions.

What if a manager is starting to drift?

Any drift in the manager’s position within the quantitative framework serves as a trigger for further investigation and qualitative questions (see points listed above). This may involve additional quantitative analysis as well as onsite visits to the manager to discuss current positions and any changes in strategy, or investment approach.

To switch or not to switch?

When deciding whether to substitute a manager following a drift in the manager’s DNA, it is important to drill deeper to establish the cause of the drift – have there been material changes in DNA or is it simply a temporary market related drift. If it transpires that the manager’s DNA has changed materially then this may warrant substitution of the manager for another.

 

Figure 5: Illustrating monitoring for manager dritf

Risk disclosure:

The client acknowledges that it understands and has been made aware by the discretionary FSP of the risks associated with investing in financial products. The value of the investments and income may rise or fall, and there is a risk that the client may suffer financial loss over the investment period. The client acknowledges that it has no claim over the discretionary FSP in the event of the realisation of such loss unless it can be proved that such loses were due to gross negligence, fraud, or dishonesty by the discretionary FSP.

MI-PLAN software disclosure: Mi-Plan offers investors a unique liability matching offering that matches the client's portfolio to their unique needs as documented at www.miplan.co.za. The complexity and uniqueness of this process and variability of each client's needs, required that technology be used to embed Mi-Plan's intellectual property in the financial service offering. In delivering this financial service, software is provided by Mi-Plan to advisers that determines a liability matched asset allocation, constructed using Haven Prosperity Prosper strategies. No fee is charged for the software and no obligation is placed on the advisor to offer, continue to offer, or offer to a minimum number of clients, this financial service. There are no other conditions placed on the advisors for the continued use of such technology that may influence the objective performance of the advisor. The advisor's obligations to render unbiased, fair advice in the best interests of you, the client, remains with your advisor. Your advisor's obligation is to compare this financial offering against all others and ensure it is the most appropriate for your needs.

Conflict of interest disclosure: The discretionary FSP may invest in its own Collective Investments or provide intermediary services to investment schemes administered by IP Management Company and receive additional income accordingly. The income received by way of any fees applicable to such Collective Investments are disclosed on each fact sheet or as required by CISCA at the time on our website www.miplan.co.za. In signing this mandate, it is assumed Mi-Plan’s Conflict Of Interest Management Policy available from this website has been read.

Advisor fees disclosure: In selecting this strategy, the investor acknowledges that financial advice has been sought and that such fees are agreed between the advisor and the investor by separate agreement.

Foreign investments disclosure: When investing in foreign investments, the client understands and accepts the risks and will not hold the discretionary FSP responsible, which include but are not limited to the following: the fluctuating value of the Rand; investments are exposed to different tax regimes that may influence investment returns; exchange control limitations may influence accessibility; pricing, liquidity and investment performance may differ from South Africa.