QUANTS OVERVIEW

Taquanta Asset Managers: Quants is an industry leader in delivering successful and innovative quantitative fund management since 1996. We manage funds with exposure to all major asset classes: while specialising in active equity, multi-asset class and index fund type mandates. The business has a track record of achieving consistent and sustained out-performance. Our team is one of the most experienced and stable in the industry leveraging a combination of strong academic qualifications and deep market experience.

The Taquanta Active Equity process is based on empirically tested and theoretically sound quantitative strategies. The quality of our process and underlying systems was validated by our selection to manage a fund for the Government Employees Pension Fund after an extensive due diligence process. We believe we are market leaders in South Africa amongst comparable quantitative active equity processes. Our funds have built up an enviable track record with high information ratios indicating the consistency of active returns.

Taquanta Multi-Asset Class capabilities are expressed through our absolute and balanced funds. Our absolute return funds stand out amongst their peers as the lowest risk in the industry. They have yielded excellent relative performance especially in volatile environments.

Our index tracking process has an industry reputation for attention to detail with very low tracking error and is offered with enhancements.


PRODUCTS AND SERVICES

Taquanta Equity

ACTIVE EQUITY

Objective
To outperform a specified market cap benchmark (eg All Share, SWIX, Mid/Small cap, Growth / Value, peer group) through active quantitative stock selection processes that have been thoroughly tested empirically and have a sound theoretical premise for continued out performance. Our active equity strategies tend to demonstrate lower drawdowns and lower volatility than their benchmarks.

Investment Process
Our quantitative process offers compelling advantages: we implement objectively tested strategies in a disciplined fashion which minimizes client exposure to the hazards highlighted in behavioural finance literature. Typically our funds incur lower implementation costs than traditional active solutions and the strategies have higher levels of transparency. Our approach can be adapted to various specific client requirements: for example, style preferences or the requirement to incorporate ESG (Environmental, Social and Governance) considerations.

MARKET CAP TRACKER

Objective
To match the return of any specified market cap bench-mark (e.g. All Share, SWIX, Mid/Small cap, peer group) with very low tracking error and at low cost.

Investment process
The process replicates as fully as possible the shares in the underlying benchmark and mirrors any corporate events that take place. It uses quantitative optimisation techniques to fine-tune the portfolio structure and manage cash flows.

MARKET CAP PLUS

Objective
To outperform the return of a specified market cap benchmark (eg All Share, SWIX, Mid/Small cap, peer group) after all costs.

Investment process
The process combines Taquanta’s quantitative tracking techniques with the benefit of enhanced cash management and scrip lending. The net result is a low tracking error out-performance of the benchmark after all costs.

Taquanta Absolute

Objective
Our current institutional absolute return funds tend to target between 3% and 5% above CPI over rolling three-year periods with relatively low volatility compared to the peer group. In many cases, our clients also target a minimal probability of capital draw down over any 12-month period. Our process is tailored to client return objectives and risk budgets.

Investment process
We combine a number of sources of diversified alpha in order to optimally target the expected return (with the lowest level of risk). The funds have exposure to a broad set of asset classes including listed equity and property, fixed income, money market and foreign fixed income (where allowed). The strategic asset allocation is customised to client requirements. Our tactical asset allocation aims to minimise downside risk while exposing clients to risk that is well justified by asset valuations.

Taquanta Global Balanced

Objective
In general our client objectives are to provide a combination of investments that provide an appropriate mix of risk and reward over the major part of the working lifetime of the average investor. We are able to offer clients either a customised solution or a pooled fund based on the client’s preferences: for example the client’s Strategic Asset Allocation, preference for passive versus active risk, and level of reliance on Tactical Asset Allocation.

Investment process
The underlying asset class building blocks access Taquanta’s underlying capabilities across various asset classes.

Taquanta Quantitative Fixed Interest

Objective
To outperform the All Bond and Inflation Linked indexes with tracking error customised to client requirements.

Investment process
Our investment decisions are guided by quantitative models and aim to expose client funds to assets which have a high probability of out-performance due to current relative valuations.

 


Taquanta Asset Managers (Pty) Ltd is a licensed financial services provider in terms of section 8 of the Financial Advisory and Intermediary Services Act 37, 2002 (licence numbers 618).
There are risks associated with investments in financial products, including market, credit & currency risks. Past performance is not necessarily an indication of future performance.

Taquanta Asset Managers (Pty) Ltd
1999/021871/07

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