Our Investment Philosophy

A long-term view

Our investment philosophy is that of the long term. All strategic decisions we take are with the goal of maximising the interests of all stakeholders in a consistent and sustainable manner. We think of investments in real terms. In other words, returns need to be in excess of inflation to be of any long-term benefit to the investor. To achieve inflation-beating returns over the long term, we embrace and manage risk. Be it risk in asset classes, geographies, currencies, styles and skills.

We actively seek opportunity

Investment markets are generally efficient over time. However they are often mispriced during the investment cycle. It is during these periods of mispriced assets that opportunity arises for skilled action to provide value

We manage risk

At Seed we believe that skilled and experienced managers are able to disproportionally reduce the down side risk associated with markets while capturing some of the upside. The overall result is a reduced market risk to the portfolio over time but not necessarily the returns on offer. We also recognise that portfolio risk can be reduced by applying diversification principles of blending investment asset classes, styles, geographies, currencies and manager skills.

Our Investment Process

Seed follows a disciplined investment process:

We carry out manager research and selection using a combination of industry and proprietary analytical tools, which we couple with extensive manager experience. Our goal: to build both a quantitative and qualitative profile for each manager portfolio researched and/or selected. In terms of construction – including Strategic Asset Allocation – we use tried and tested global asset valuation models. We also perform a thorough correlation analysis of:
  • Asset classes
  • Manager investment styles
  • Actual portfolio performance
 

Seed Funds

Seed currently manages four unit trust funds, adopting a multi-manager investment approach. Our newest fund, the Seed Income Fund, is a low risk enhanced income fund, while the Seed Equity Fund is 100% exposed to the South African equity market.

Complementing these two funds are two multi-asset class funds, the (3.5 year track record) and the (5 year track record), which are both pension fund compliant. With both the Seed Stable Fund and the Seed Balanced Fund, investors access a range of specifically blended underlying managers and asset classes including local and off shore equity, property and fixed income.

Seed Income Fund

The Fund aims to generate STEFI Call + 1% pa over rolling 1 year periods and avoid negative returns over any 6 month period.

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Seed Stable Fund

The Fund aims to generate CPI + 4% pa over rolling 3 year periods and avoid negative returns over any 1 year period.

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Seed Balanced Fund

The Fund aims to generate CPI + 6% pa over rolling 5 year periods and avoid negative returns over any 3 year period.

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Seed Equity Fund

The Fund aims to generate returns in excess of the JSE ALSI Total Return (J203T) over rolling 7 year periods and avoid negative returns over any 5 year period.

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