We construct and manage client portfolios using qualitative and quantitative input from leading research houses, economists and other industry specialists. Over the years, the Dynasty team have developed and refined an investment process and philosophy proven to deliver optimal long-term outcomes. Our key investment principles are as follows:
We create solutions and portfolios that cater to each client’s individual goals, circumstances and risk profile.
Long-term portfolio performance is driven by process rather than luck. We research and select portfolio building blocks that deliver consistent, long-term performances within parameters such as risk, time and their respective benchmarks.
We believe that an appropriately designed portfolio with embedded risk management characteristics will reduce performance volatility, without compromising targeted long-term returns. Our portfolio designs have enhanced the resilience of clients’ portfolios during periods of market turmoil such as the Global Financial Crisis, the European Sovereign Debt Crisis, and more recently the sharp global equity sell-off that occurred in 2018.
We use passive funds as building blocks to reduce management costs and to mitigate the risk of a portfolio underperforming the market or its benchmark. Much of our research process focuses on carefully selecting active funds that have, over the long-term, outperformed their benchmarks in terms of returns, risk and volatility. This blended approach helps clients reap aggregated returns that tend to outperform benchmarks, while ensuring that aggregated fees are maintained at an acceptable level.
Our research focuses on choosing funds and asset managers that will deliver the best returns for our clients, thereby leaving the responsibility of stock selection to our fund managers. This approach is typically more tax-efficient than investing in a portfolio of individual securities and removes the unintended negative consequences of Probate and Situs associated with holding shares in certain jurisdictions.
Investing offshore allows clients to take advantage of opportunities outside of South Africa and to manage risk by diversifying into new markets. However, we believe that the percentage allocation to offshore assets should be properly considered, in order to ensure there is no future currency mismatch of clients’ assets and liabilities.
We are an advice-driven organisation but are mindful that it is our clients that own the funds they entrust us to manage. We are therefore open to evaluating and sourcing solutions outside of our ‘house-views’ according to clients’ briefs as requested. These solutions may include individual securities portfolios, property syndicates and private equity opportunities.
Dynasty’s investment process adopts global best practice and is steered by an experienced Investment Committee with external input from a leading research house, namely Analytics Consulting (Pty) Ltd. The Committee provides oversight of all investment management functions and seeks to eliminate emotion-based decision making. It also ensures that important decisions are vigorously debated and not premised on the management style/behavioural biases of any one individual. This governance ensures a rational approach to the company’s investment management discipline.
The scope of responsibilities of the Investment Committee includes:
- Global industry research to ensure the Committee is ‘alive’ to any disruptive trends.
- Meeting regularly to review portfolio performances, analysis of the latest local and global economic research, and to debate the outlook for various asset classes.
- Formulating composite investment portfolio design documents that deal with the quantitative aspects of each portfolio:
- Monitoring portfolio risk and returns.
- Modelling and attributing performance.
- Analysing a comprehensive database of manager and fund returns.
- Maintaining a detailed database of current (and possible future) managers.
- Conducting due diligence on managers.
- Ensuring that our solutions comply both locally and abroad with applicable legislation and regulations.
- Making sure that each Dynasty portfolio remains relevant to changing market conditions and evolving client requirements.
Our family office capability assists our clients to preserve wealth and build their families’ legacies. We enlist sought-after experts in specialist disciplines, both locally and abroad, to offer clients a holistic family office and wealth management proposition, integrating this with our core investment advisory services.
Our family office services include:
- Consolidated and bespoke reporting formats across clients’ entire asset bases.
- Proactive global tax planning and advice.
- Cash management facilities – ZAR and USD.
- Post-retirement income generation.
- Creating and maintaining an electronic hub and checklist to facilitate seamless estate administration.
- Estate and succession planning.
- Fiduciary services.
- Comprehensive foreign exchange solutions, including completion of application forms; procuring tax clearance certificates; trading and hedging strategies; and settlements and payments.
- Bespoke services, for example, share option schemes and hedging strategies; structuring of compliant offshore portfolios for clients who have applied for immigration visas in other jurisdictions; etc.
Dynasty offers a fee structure that is simple and transparent, and which we believe to be fair for the value we generate. Our ongoing management fees are competitive and based on a set percentage of the value of funds placed under our management.
We do not charge clients for introductory meetings, initial planning or ongoing consultations, or personalised written proposals.
Clients also do not pay an initiation fee when they place funds under our management.
We have negotiated a zero upfront fee with all product providers and fund managers, so that our clients do not incur transaction costs for investing in a fund or exiting/switching from one investment to another.
We reduce the net impact of our management fee on portfolio performance by securing discounted or institutional fee rates with our underlying fund managers.
Fees incurred through co-opting specialist advice are either partly or fully subsidised as part of our family office service. In certain instances, we would even fund a portion of clients’ accounting and tax compliance fees payable to their own service providers.