Robert Henry Walton

Apex IC believes that a multi-manager investment approach adds value to investors’ investment outcomes over the long-term by delivering consistent above average returns at acceptable levels of risk, through the application of a robust investment opportunity evaluation framework, active asset allocation, and a robust investment manager selection process. The firm employs a quantitative investment approach to strongly complement pure bottom-up fundamental research driven approaches.

Provides investment advice

MetAM is an active, value-oriented manager which believes that pricing anomalies exist where the expected growth in future earnings is not reflected in the current price. They make investment decisions based on a combination of top-down and bottom-up analyses. The firm's strategy team drives the top-down process with inputs from the macroeconomic team, fixed-interest team and the equity team. Analysts, responsible for covering shares allocated to them on a sector basis, perform the bottom-up research. They conduct fundamental research, modeling their companies using the macro input variables from the strategy team, their knowledge of a particular industry and their knowledge about a company. Portfolio managers and focus area heads select stocks. MetAM believes that the interest rate cycle is the most important driver of bond returns in South Africa. Their fixed-income approach is primarily top-down with a core focus on understanding the macro-economic fundamentals which may affect South African interest rates. Fundamental research determines their view of the future shape and level of the yield curve and subsequently provides them with an indication of whether the market is over- or undervalued relative to their view. The firm's fair value regression model incorporates all the macro drivers which flow into fair value calculation and implied return forecasts. Once they have established the future level and shape of the yield curve, they decide how to set up parameters so that the preferred portfolio characteristics are achieved. When constructing the portfolio, they decide on the size and deviation of the model portfolio relative to the All Bond Index for certain parameters. The variables can be neutral, overweight or underweight relative to the All Bond Index and are all potential sources of return. They conduct technical analysis to determine the timing of their purchases and sales.