Frater has changed its name to Element Investment Managers

29 July 2009

Cape-based specialist fund manager, Frater Asset Management, is to change its name to Element Investment Managers from 1 August 2009.

Chairman Dr Anwah Nagia said the name change is aimed at creating an identity for the business that reflects the diversity of ownership, including management, staff, strategic partners and other external shareholders.

"Element is a universal name and not linked to any of our shareholders, which was an important consideration in rebranding our business. The word ‘element' is synonymous with being essential and fundamental, which describes the essence of who we are and what we do," said Nagia.

Started as a private wealth management business in 1998, the company has grown into a specialist investment house managing funds of over R15 billion and employing 32 staff.

Nagia said the proven investment philosophy and process remain unchanged and the company is committed to its ethos of being independent, active investors.

Element Investment Managers offers specialist equity and balanced portfolios to institutional investors, retirement funds and individuals, as well as a range of four unit trust funds. A range of Shari'ah compliant investment portfolios is also offered to Islamic investors. The company has a team of 15 highly qualified investment professionals, with 112 years collective industry experience currently.

"We have a strong and stable team and it is pleasing that we have been able to weather the current economic storm and grow our business and expand our client base during the toughest market conditions experienced for many decades," said Nagia.

Following changes in the shareholding of the company, management and staff now own 53.5% of the business, with empowerment group J&J Group holding 20% and the balance of the shares being owned by empowerment and private investors.

Transformation has been a core philosophy since inception and the business has achieved 95.8% on its most recent Financial Sector Charter scorecard. BEE ownership is currently at 58%.

Chief Operating Officer, Ian Jones, said the business follows a single investment philosophy across its portfolios, "aiming to maximise long-term returns while reducing downside risk through its rigorous fundamental research process."

The company has a long-term track record of producing market-beating returns at considerably lower than market risk. The composite equity investment portfolio has yielded a return of 24.2% per annum since inception in August 2002, compared to the benchmark SWIX index return of 18.7% per annum for the period ending 30 June 2009. The pooled balanced portfolio has returned 17.9% per annum since inception in March 2005 against its benchmark performance of 12.7% per annum to the end of June 2009.

Element Investment Managers is a recognised leader in the field of responsible investment, said Jones, having integrated environmental, social and governance (ESG) research and shareholder engagement into its equity investment research process over eight years ago. "Our analysts actively engage with companies on ESG issues as an integral part of our fundamental research process and as a means of effecting change and enhancing long-term performance and sustainability of earnings."

The company was the first local asset manager to sign the United Nations Principles for Responsible Investment and the first to disclose its shareholder voting record publicly - and has done so since 2001.

 
 

WE WERE THE FIRST SOUTH AFRICAN INVESTMENT MANAGER TO SIGN THE UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT

WE ARE COMMITTED TO THE CODE FOR RESPONSIBLE INVESTING IN SOUTH AFRICA