Portfolio Management | Private Client Holdings

By: Private Client  11-11-2011
Keywords: Client Holdings

Most people would agree that the aspiration to continually grow your wealth is a natural one. But just as simple as this wish may be, the process of growing wealth is complex. Effectively growing wealth requires a skill borne of experience, expertise, talent and passion coupled with a natural instinct to carry out this highly specialised service.
At Private Client Portfolios, our investment experts use their combined talents and experience to successfully build up our clients’ portfolios, maintaining and generating wealth through the discretionary management of unique equity portfolios for our private clients.

Investment Process

At Private Client Holdings we focus on companies that illustrate outstanding growth potential, with dynamic management and those that trade at discounts to their intrinsic values. We also identify the blue chip companies of the future and blend these with quality shares that have proven track records.

We conduct our own in-house research with the dealing administration outsourced to our stockbrokers and we collaborate with independent research company, Avior Research, in constructing an optimal portfolio mix. The continuous support from our affiliated stockbroker houses, in the form of expert research and input in our Investment Committee Meetings ensures that our portfolios are constructed in a manner that will deliver the highest risk adjusted returns.

Our analysis focuses on identifying:
• Sound management;
• Solid performance and sustainability;
• A low P/E multiple relative to the consensus growth forecasts;
• High prospective dividend yields;
• High cash flow per share and low gearing;
• High relative strength;
• A strong competitive advantage.

Private Client Holdings regards our relationships with our portfolio clients as key. Equally important is professional administration and constant communication with clients on all aspects of their portfolios.

Stock brokers
Private Client Portfolios work with the following stockbrokers who handle the dealing and back office administration:
• Investec Securities
• Standard Equities
• Barnard Jacobs and Mellet
• Sanlam Private Investments
• PSG

PCP Core Equity Portfolio

The objective of the PCP CORE EQUITY PORTFOLIO is to provide long-term capital growth through a diversified portfolio of JSE-listed shares. The portfolio aims to outperform the All Share Index over the medium term, assuming an above average level of risk in the short term.

The portfolio aims to invest in quality businesses at reasonable prices with the aim of holding for the long term. The Private Client Holdings investment team makes use of portfolio models which base share selection on fundamental factors, while using quantitative statistics to buy and sell at preferential levels.

PCP Balanced Fund Portfolio

The objective of the PCP BALANCED PORTFOLIO is to meet the needs of clients with a moderate risk tolerance by being diversified across all the local asset classes, i.e. interest bearing instruments, equities and property.

The portfolio is tailored to provide long term capital growth by having a significant equity exposure and to achieve reliable income growth by being exposed to asset classes such as bonds and preference shares, with the diversification benefit of being invested in various different asset classes providing the necessary risk reduction for the combined portfolio. The portfolio aims to outperform the All Share Index over the medium term, which will require assuming a certain level of short term risk.

The PCP Balanced Portfolio aims to achieve a strategic asset allocation that does not vary significantly over time while implementing the necessary stock picking within the different asset classes to achieve our long term return objectives and meet the necessary risk requirements.

PCP High Income Portfolio

The objective of the PCP HIGH INCOME PORTFOLIO is to achieve a favourable and reliable income yield at a moderate risk by investing in a diversified set of asset classes. This portfolio is ideal for clients who seek stable, above inflation returns through a combination of high dividend income and moderate capital growth. The portfolio aims to outperform inflation (CPI) over the medium term, assuming a moderate level of risk in the short term.

The PCP High Income Portfolio looks to achieve its total return goals by combining the capital and income growth potential of equities, with a strong focus on high-dividend yielding, low P/E ratio and low P/BV combinations, with the strong yield and inflation beating nature of listed property and the strong, stable and tax-efficient yield provided by the preference shares.

PCP Opportunities Portfolio

The objective of the PCP OPPORTUNITIES PORTFOLIO is to provide above average total returns (capital plus income) by investing in quality ordinary shares listed on the JSE. To achieve this, a somewhat more aggressive management approach will be required (compared to our Core Equity Portfolio), in terms of both the frequency of changes and the weightings of sectors and shares. The portfolio aims to outperform the All Share Index over the medium term, assuming an above average level of risk in the short term.

The PCP Opportunities Portfolio aims to invest in quality businesses which we believe are still undervalued by the market, at favourable prices, with the aim of outperforming when prices move to fair value. The PCH investment team makes use of portfolio models which base share selection on fundamental factors, while using quantitative statistics to buy and sell at preferential levels.

Fact Sheets

Fees

An establishment fee is levied on initial investment based on the size of the portfolio. Annual portfolio management fees are charged and reduce on a sliding scale based on the size of the portfolio. There are no exit fees and all charges exclude Value Added Tax.

Keywords: Client Holdings

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