Our investment process follows the Top Down approach that is monitored on a weekly basis by an executive committee. Investment decisions are endorsed by the committee after all questions have been attended to by the research executive and the portfolio executives, our investment process is thus structured to have continuity beyond individuals. A thorough understanding of the macro- economic fundamentals forms the backbone of all our investments. We assess the macroeconomic environment starting with a global focus and take guidance from the overall direction of international markets. With a sharpened insight of the Global market, we select the relevant key factors that have a bearing on the economic performance of our country‘s key sectors. Assumptions on such parameters as economic growth reflected in the country s’ GDP, inflation forecasts, commodity prices, exchange rate movements coupled with the socio-political environment are made in order to determine the broad spectrum of the asset allocation decision. Industry specific growth rates are taken into account in the analysis and valuation of the various securities.

All financial instruments go through a rigorous process within our research function to determine the risk/return profile and are given a rating accordingly by the Investment analysts before the report is presented for review by our investment committee. We integrate fundamental and technical analysis in coming up with investment cases in various financial assets. The investment committee gives further scrutiny to come up with a firm position allowing the portfolio executives to action the agreed positions. In some cases further investigation is recommended before a concrete decision is made pushing the analysis into a second cycle. In a nutshell, the investment committee has to give thumbs up to all new instruments before adoption into client portfolios/model portfolios. Our research unit takes ownership of regular management contact and assimilation of necessary information from various sources in a continuous fashion.

While this gives the skeletal structure of our investment process, the continuous flow of information is taken into account and applied through the regular review of portfolio structure and performance to accommodate the fluidity nature of the investment markets. This features mainly under our performance review block where rebalancing decisions are recommended guided by the market developments. All model portfolios are reconfigured and optimized to suit the dynamic economic environment as and when new material public information filters into the market. It is at this stage that any changes that are client centric are given preference to ensure that our value proposition remains entwined within the confines of client objectives.

Control Systems

Our control systems revolve around an in house designed integrated software system. This is comprised of the following modules:

  • Portfolio/Pension Fund Management System
  • Scrip System
  • Unit trust Management system
  • Money market system
  • Management reporting system

A feature of the automated process is that all of the back-office processing is checked and authorized by an executive through the use of daily audit trails, deal notes, valuation reports and physical scrip counts of money market and equity securities.

Our back office is further segregated between scrip, administration and accounting functions. We have a separate company called Datvest Nominees (Private) Limited which has been set up to hold safe custody of clients’ securities. For Clients who require scrip to be held by a third party, we work closely with institutions that offer safe custody arrangements.

All our systems are fully supported by hard copy detailed systems procedure manuals or on-line help facilities.




Get the CBZ Holdings Financial & Annual Reports. » Read more