About us

Our Commitment and Expertise at Pilanehurst Asset Managers

Pilanehurst Asset Managers (PAM) is a BBB-EE Level 1 contributor company, consisting of various FSCA and NCR registered entities. We strive to cultivate a business environment with an entrepreneurial mindset, encouraging partnerships, joint ventures, and synergies that benefit the business, stakeholders, and investors.

High Level Investment Process

Research

  • Macroeconomic Analysis
  • Sector Analysis
  • Security-Specific Analysis
  • Information collection

Decision Making

  • Weekly Analyst Presentations
  • Monthly PM Meetings
  • Quarterly IC / Strategy Meeting
  • Daily Morning Meetings to ensure the info we rely on is current

Implementation

  • BUY / SELL list
  • Objectives of the clients
  • Portfolio Construction
  • Product Offerings
  • Monitoring & Report Back

Investment Process Equity

STEP 1: IDEATION

- Conduct macro-economic analysis
- Conduct general industry analysis
- Monitor company financial reporting and SENS announcements
- Read through various stockbroker research papers Monitor daily newspapers for changes in government policy and implementation
- Monitor changes in the investment industry - Monitor investment industry competitors

STEP 2: QUALITATIVE / FUNDAMENTAL ANALYSIS

- Conduct qualitative industry analysis on the selected sector
- Conduct qualitative analysis on the specific company Read through various stockbroker research papers Where possible, attend specific company results presentations
- Where possible, attend company management events/lunches
- Compile a report for the investment team for team feedback

STEP 3: FINACIAL MODELLING / VALUATIONS

- Build detailed company financial models
- Conduct detailed company valuations (various valuation methodologies)
- Conduct valuation scenario analysis
- Compile reports (presentations) for the investment team feedback

STEP 4 & 5: PORTFOLIO CONTRUCTION, IMPLEMENTATIN & MONITORING

- Benchmark analysis (Swix, Cappi, Top40, etc)
- Construct various risk portfolios Construct the optimized client portfolio taking into cognizance mandate restrictions
- Continuously monitor the portfolio taking into account

Investment Process Bonds

STEP 1: IDEATION

- Conduct macro-economic analysis
- Economic conditions (growth, rand behaviour, current account, trade balance)
- Monetary indicators (interest rates, money supply, credit extension, disposable income)
- Liquidity / demand-supply characteristics (bond issuance, auction analysis, foreign participation)
- Technical and sentiment (short/long term yield analysis, consumer and business confidence
- Relative analysis to inflation-linked bonds

STEP 2: QUALITATIVE / FUNDAMENTAL ANALYSIS

Shape of the yield curve
- Flat: go short duration
- Normal: individual instrument analysis
- Inverted: go short the short end of the yield curve Twisted: go where its mispriced relative to zero-coupon Steep: go long duration

STEP 3: VALUATIONS AND CREDIT ANALYSIS

Shape of the yield curve
- Government bonds: riskless fixed income in SA
- The value of risky fixed-income instruments depends on the credit risk of the issuer
- Compute credit risk of other issuers using rating agencies as well as proprietary tools including balance sheet analysis
- Conduct scenario analysis: What happens when yields move up, down, or not Different time periods
- Different shift types: parallel, etc
- Analysis of outcome ranges
- Expected returns and associated risks
- Conduct valuation scenario analysis
- Compile reports (presentations) for the investment team feedback

STEP 4 & 5: PORTFOLIO CONTRUCTION, IMPLEMENTATIN & MONITORING

- Analyze ALBI
- Establish the Required duration, the Expected - Returns and Risk Construct the optimized portfolio taking into cognizance mandate restrictions
- Continuously monitor the portfolio taking into account
- Yield movements, - New issuances / taps, - - New data and news Report back on performance to Investment Committee and to - Clients quarterly

Investment Process Money Market

ONEY MARKET BASIC CONSIDERATIONS

* Given same risk level, higher yield is always preferred
* Given same yield, preference is given to listed / secondary / liquid paper
* Given same yield, preference is to simpler instruments rather than structured products
* Other considerations
-Duration
-Floating vs fixed
-Which part of the yield curve -Which individual instruments

GENERATIONS RESTRICTIONS

* Average credit risk/rating
* Average duration Average maturity Liquidity
* SA vs non-SA banks limits