Grindrod Private Clients are prudent, long-term investors and in selecting investments follow a value approach. Our
investment objective is to maintain and enhance the value of the client’s capital and income.
The Asset Management Investment Committee (AMICO) determines the investment strategy and the Committee’s view is reflected in an
asset allocation framework and model portfolios that form the basis of the client’s discretionary portfolios. Portfolio managers tailor portfolios to meet the specific risk profile, capital and income needs, and mandate requirements of each individual client.
Discretionary portfolio management is the core activity of Private Clients and portfolios may include equities, listed property, bonds, preference shares, cash and foreign investments. Various factors are considered in selecting specific equities and these include the company’s earnings track record, cash flows, price earnings ratio,
dividend yield, rand-
hedge properties and management expertise.
Contractual and retirement fund management is only undertaken for clients with managed discretionary portfolios. Contractual funds such as living annuities, retirement annuities, pension and provident preservation funds are placed with, and managed through, various Linked Investment Service Providers or wrap funds.
Fee structure
Investment management fees of 1.2% per annum plus VAT are calculated on the market value of the assets under management and cover the professional management of the investments and all related administration and reporting. Fees are negotiable for larger portfolios.
Portfolio performance
Performance is measured against various benchmarks agreed in advance with clients. Over the six year period 2005 to 2010 the performance of our model portfolios, which reflect the investment committee’s houseview, has been consistently good relative to comparable and relevant benchmarks.