By Tatenda Makoni
Zimnat Asset Management (ZAM) provides carefully constructed, individually customised and separately managed accounts.
These discretionary and non-discretionary portfolios allow clients to define their own parameters for returns and liquidity based on their risk tolerance, cash flow needs and investment horizon.
A research team holds detailed discussions with prospective clients to establish the desired investment objective, performance benchmark and expected risk/return characteristics, among other requirements.
Critical elements of our separately managed accounts include:
Risk management: robust analysis of cash flows, debt and corporate governance of the companies underlying the bonds, equities and private equity we invest in.
Strong structure, thorough set-up and documentation process.
Adaptability to changing inflation rates and interest rates that are characteristic of the local economic environment given the changing policies.
Our strategy is designed to deliver consistent returns, preserve the principal investment and provide liquidity. This is achieved in the following way:
The research team regularly meets to discuss the fundamental outlook of the economy, focusing on factors such as Gross Domestic Product (GDP) growth, unemployment and interest rates. Data from a range of internal and external economic sources are compiled and debated by the team and a consensus on them is established. This is then translated into investment strategies, which guide portfolio decisions.
Periodic reviews of the portfolio and investment guidelines ensure that the portfolio remains relevant for the client’s investment objectives.
Scenario analysis is used to evaluate portfolio performance in different environments to help determine optimal portfolio positioning across different investment sectors.
Investment classes include government bonds, corporate bonds, listed equities and private equity.
ZAM provides an integrated approach to client servicing for separately managed accounts.
Each client has access to a client service team consisting of the client advisor, who also acts as the portfolio manager, the risk and compliance officer and a client account manager.
The client advisor serves as the key point of contact for the client and manages the overall client relationship. He/she provides strategic advice reflecting an industry perspective and presents insights on investment allocation.
The client advisor is supported by a team of research analysts who continuously assess the economic environment and the portfolio’s performance in line with the market outlook.
The client account manager sets up the client’s account on ZAM’s accounting and client information systems. He/she also responds to day-to-day queries regarding deposits, withdrawals, current account balances and updated statements.
The risk and compliance officer handles all contractual, legal and regulatory issues.
A crucial component in the risk management of separately managed accounts is the role of the custodian. A custodian works alongside the asset manager and is tasked with the settlement, safekeeping and reporting of all investments made.
Managed funds are especially valuable for large investors who have the goal but not the ability or resources to expertly manage their risks and returns.