INVESTMENT APPROACH

INVESTMENT PROCESS

Top-down investment idea-exchange between the International and South African Investment Committees is a key strategic input into our investment process.  This translates into local expertise with a global perspective.  Our Investment Analysis and Due Diligence processes provide bottom-up manager and security selection inputs into the process. 

Idea generation is a key component to ensure that we have adequate diversification to allow for consistent alpha. Attribution is done at portfolio, underlying manager level and in certain instances, instrument level. At a portfolio level we measure relative performance contribution of each strategy, and at underlying manager level we measure the performance of each manager versus the benchmark of their individual mandates. There are no direct trading costs in buying or selling underlying managers. However, we critically monitor the execution and trading costs of each underlying manager. 

ESG APPROACH

As TriAlpha is a public signatory to the Code for Responsible Investing in South Africa (“CRISA”) we have committed to the following:

  • we will incorporate ESG issues into investment analysis and decision-making processes;
  • we will be active owners and incorporate ESG issues into our investment processes;
  • we will seek appropriate disclosure on ESG issues by the entities in which we invest;
  • we will promote acceptance and implementation of the Code within our industry;
  • we will work together to enhance our effectiveness in implementing the Code; and
  • we will report on our activities and progress towards implementing the Code.

In an effort to evaluate the appropriateness of the ESG factor integration approach utilised by our underlying managers, we have developed a systematic approach that enables us to assign an ESG factor integration score to prospective/existing portfolio managers. We in turn use these factor scores in our investment analysis, decision-making and post-implementation managing process.

By utilising such a systematic framework, we aim to provide ongoing transparency with regards to the way our organisation approaches and manages ESG risks across the different portfolios we manage. We have formulated the ESG Risk Factor Integration Framework in such a way that it not only meets the directive of the 2011 Amendment to the Pension Fund Act but also CRISA.

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TriAlpha is a licensed Financial Services Provider in terms of section 8 of the Financial Advisory and Intermediary Services Act, 2002 (Act no. 37 of 2002) FSP License No. 28090.

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