Model Portfolios, Morningstar and award-winning funds – The benefits of a robust investment process

by | Aug 1, 2019

James Ferreira, CFP

Private Wealth Manager

South African investors deciding to invest their money face an incredibly difficult decision in choosing where to allocate their hard-earned capital. In South Africa, we have over 1,500-unit trusts that are limited to investing in just over 160 shares listed on the JSE. How do you choose the correct fund when there are so many options, let alone trying to understand the various investment strategies each fund follows, the varying levels of analysis capabilities, and each fund manager’s own ideas and philosophies that are integrated into the running of their fund?

Why Model Portfolios?

Through our partnership with Morningstar, we have built our model portfolios through a detailed and robust process, driven by the objective of blending top fund managers who we believe, given their strategies and processes, will deliver the best outcomes to our clients over the long-term. Blending different fund managers sets out to achieve one simple goal – to offer our clients good investment returns, at lower levels of risk than the market.

Together we have established a range of investment portfolios that will facilitate the active management of our clients’ portfolios. This follows a strict process whereby investments are managed by an Investment Committee of specialists with proven track records. In their selection of unit trusts, the investment committee aims to achieve an appropriate degree of diversification while combining the investment expertise of quality investment managers.

A noticeable theme throughout our model portfolios is that we have invested in large, respectable, top performing funds such as Allan Gray, Investec and Coronation. These funds have long-term track records of great performance and have been selected because they each complement one another with their varying investment styles.

Raging Bull Awards

The Raging Bull Awards is an annual awards ceremony where fund managers compete for a variety of awards which highlight the top performing fund managers and funds available to local investors. The ceremony celebrates the top performers across a range of sectors and acknowledges investment managers in terms of top outright performers, best risk-adjusted performers and the best unit trust management companies. The first Raging Bull Awards ceremony was held in 1997, with top performers awarded to the most consistent performers over three years.

Below are some of the 2018 winners in their respective categories, all which feature in our model portfolios which is reassuring to the investment committee that the processes we have in place for managing our client’s funds is proving to be successful.

South African Management Company of the Year: 

1st place: Allan Gray

2nd place: PSG

3rd place: Coronation

Offshore Management Company of the Year:

Investec and Nedgroup Investments (tie for first place)


Straight performance over three years 

  1. Best South African Equity General Fund: Fairtree Equity Prescient Fund
  2. Best South African Interest-Bearing Fund: Fairtree Flexible Income Plus Prescient Fund
  3. Best (SA Domiciled) Global Equity General Fund: Allan Gray-Orbis Global Equity Feeder Fund
  4. Best (FSB Approved) Offshore Global Equity Fund: Orbis Global Equity Fund



We strive to always put our clients first and we are confident that our investment process ensures that our clients are not only in the best performing funds available to them, but that they are always being looked after through the investment committee’s active approach to fund management and fund selection.