Investing is personal, which is why it will always be important to us to keep humans in the picture when it comes to managing your money. But it’s as important to us to create access, to deliver strong returns and to help educate you throughout the investment journey you take with us. So like any explorer about to embark on a quest for greatness, and in your case to help you summit the peaks of your financial goals, we’ve mapped out routes based on solid science and summoned a team of experts to encourage and help you trailblaze your way to the top – no matter the climate.
This is one of the reasons we’ve adopted a data-driven, algorithmic approach to investing that does not rely on human judgment and can be objectively tested and affirmed using historical data. It also allows us to bypass the expensive traditional model that requires teams of specialists on the ground to analyze and evaluate individual companies. This coupled with strategies that combine low-cost index-tracking ETFs and a proprietary active asset management process that is driven by algorithmic analysis of the market, makes your ascent more affordable, and precisely measured. This approach isn’t just applicable to South African markets. It is a universal approach that covers markets in the US, UK, Europe, Asia and elsewhere.
We use four main building blocks to construct our portfolios: Value, Quality, Stability and Momentum. These are the guiding principals that really shape a particular portfolio. You can also invest in any one of these building blocks, or a combination of them, as part of an equity portfolio that matches your defined risk-return objectives. Each of these building blocks is driven by different risk factors, and may not be correlated with other building blocks. Like any voyage or expedition, there are a lot of variables to consider. Climates and conditions can change direction, and so will you. Similarly, building-block returns are highly cyclical. They are sensitive to macroeconomic and market forces and each building block has underperformed the market at various times.
Diversification between building blocks enhances returns and optimises risk. Emperor’s algorithms determine optimal portfolios for investors based on their risk preference, whether conservative, moderate, or aggressive. In the result we have created a suite of portfolios to meet these risk preferences being Managed ETF Portfolios (Core), Managed Share Portfolios (Enhanced) and Managed Leveraged Portfolios (Alternative). Included within these categories are portfolios designed to comply with Retirement Regulations (Regulation 28) as well as TFSA Regulations