INVESTMENT PHILOSOPHY

Quality, value and timing

Our asset selection philosophy is based on the dual pillars of quality and value. We are also contrarian with respect to timing, not in the sense that we blindly oppose the prevailing trend, but rather that we move against the herd when we believe that excesses of optimism or pessimism prevail. This disciplined combination assists us in buying high-quality shares at reasonable prices while minimising risk, which we define as the likelihood of sustaining a permanent capital loss. These factors differentiate Belmont from many other asset managers.

INVESTMENT PROCESS

We specialise in “top-down” asset allocation and “bottom-up” selection of the highest quality securities from rigorously screened universes, both offshore and onshore. Internationally, shares are selected from the FT Global 500 Index, while collective instruments such as funds and investment trusts are chosen from our “best of breed” selection. Locally, shares are chosen from the JSE Top 40 Index and collective instruments are not used.

Share selection and portfolio weighting

We only invest in shares of companies that have been assessed for:

• Excellent management

• Superior long-term earnings growth rates

• Sustainability and predictability of earnings

• Sufficient tradeability

We ensure that portfolios retain focus, but with sufficient diversification. Our typical exposure range per security is 5% to 15% of the total portfolio, which is more concentrated than the industry norm. Clients who prefer more diversification will have a greater proportion of collective instruments in their offshore portfolios.