Investments

AJM believes that holding a full range of asset classes significantly reduces risk over the longer term. AJM makes extensive use of all the asset classes, namely:

• Cash
• Government and corporate bonds
• Property
• Shares
• Derivatives

AJM also believes that as global investors, a spread of assets in different economies is also critical to increasing the probability of achieving targeted investment returns over the long-term.

By doing so, portfolios managed by AJM are more resilient to the vagaries of markets and economies. This assists clients to have a high probability of achieving inflationary returns over
3 – 5 years.

Investment Risk

Investment risk management is the tolerance a client has to potentially loose money in a total portfolio over a short-period, with the possibility of outperforming a target over the long-term.

AJM spends an inordinate amount of time assessing our client's tolerance for risk before recommendations are implemented. This includes setting a targeted return for the total portfolio appropriate to that risk tolerance, and then providing a solution that will give our client the best probability of both meeting the target and protecting the portfolio according to that tolerance.

The traditional method of risk management is a high weighting in secure investments, such as cash. The old adage of “your % of cash holdings should be your age” is not followed entirely by AJM, as a high holding in one asset class (that provides a high probability of achieving a low level of return) increases your risk of not achieving your targeted investment return, which is normally between inflation + 4 – 7% per annum over a three year period.

Investment links

	Allan Gray		Liberty Life
	Altrisk		Momentum Wealth
	Blue Horizon		Metropolitan Odyssey
	Cadiz		Nedbank
	Coronation Fund Managers		PSG
	Hollard Life		RMB
	Invesco		Sage Life
	Investec Asset Management		Sanlam
	Stanlib		Standard Bank
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