Any investment over the medium to long term is all about outperforming inflation after tax and after cost. However, not all investors have the same ability to manage their fear when investment markets are under pressure for short periods of time. It is for this reason that we follow a strategy of allocating capital to three different risk categories. In each of these risk categories we have established a unique Amity multi-managed fund.


Why a multi-managed solution?

A multi-managed investment solution is one where more than one unit trust fund is used to assemble a portfolio. The reason for this approach is because the same unit trust manager’s unit trust fund seldom ranks consistently as the top performing fund in its sector. By combining funds with different styles and strategies, the probability of achieving the return objectives is improved. It is like having a sports team where the individual strengths of the players are combined to produce a winning team.

By using more than one manager the risk in the fund can be reduced significantly, and consistency in performance can be enhanced. By using fund managers that have different styles and investment strategies, the effect of one underperforming manager can be minimised. We understand that fund managers can misread the market and when this happens, we would not like the entire fund to be exposed.

The advantages of using a multi-managed approach are:

• A comprehensive due-diligence process on asset managers.
• Return/risk optimisation through diversification.
• The construction of investment portfolios using complementary asset managers    increases the probability of achieving the targeted return.
• Ongoing monitoring of the suitability of the funds in accordance with the Fund’s    objectives.
• Enhanced consistency over the investment term.
• Value for money.

Criteria for fund structuring

We follow a comprehensive and sound process when constructing our funds. The process entails evaluating the potential funds by using a list of predefined quantitative and qualitative criteria. These include the asset management company, the suitability of the companies’ funds for the mandates of each of the Amity Funds, the management styles, how the combination of funds will complement each other, and many other considerations.

Asset management partners

Amity Wealth has selected four key investment houses as underlying investment managers. They are:

Allan Gray
Coronation
Investec
Prudential