Supply of Information
The information accessible on this website was prepared by Sparinvest S.A. (“Sparinvest”) and published by Sanlam Life Assurance Limited through the Glacier-by-Sanlam range of investments and financial solutions (“Glacier”). All details are intended purely for information purposes and are aimed exclusively at investors residing in South Africa where the Glacier insurance portfolios (the “insurance portfolios”) are authorized for public marketing. On no account may the information supplied be construed as advice (as such term is defined in the Financial Advisory and Intermediaries Services Act, 2002) or as investment recommendations. Interested persons should consult a qualified specialist before taking investment decisions.

Investment Risk
Interested persons contemplating making an investment in the insurance portfolios, should determine their own investment objectives and experience, and any other factors which may be relevant to them in connection with such investment and the inherent and/or associated risks. In this regard any interested persons should seek independent advice as to, inter alia, taxation, exchange control and other statutory/regulatory implications and requirements.

Restrictions
The information contained on this website or the website pointed to does not constitute a request, offer or recommendation to buy or sell investments in the insurance portfolios or to engage in any other transactions. The information on this website is not intended for persons subject to a jurisdiction that prohibits access to or publication of this website (based on the person’s citizenship or domicile, or for any other reasons). Persons subject to local restrictions of this type must refrain from accessing this website. Interested persons must be aware that Net Asset Values of the insurance portfolios can vary. For this reason, the historical performance of an investment in the insurance portfolios is no guarantee of its current and future performance. Before purchasing investments in the insurance portfolio’s units, prospective investors should in any case carefully study the sales prospectus, the annual report (or semi-annual report if this is more recent) and other relevant legal documents (regulations or contractual terms and conditions or bylaws and any applicable simplified prospectus).

The sub-funds of Sparinvest SICAV are not authorized for public marketing in South Africa.

Other countries
The insurance portfolios may be admitted for sale in other countries. The general rule is that units in the insurance portfolios may not be sold, offered for sale or delivered in other countries without authorization for sale. The information on this website or websites pointed to is therefore directed at investors in South Africa where the insurance portfolios are authorized for public marketing only.

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Sparinvest
About Sparinvest | Value Equity Strategy | Responsible Investment | Coorporation with Ethix SRI Advisors | Contact us

About Sparinvest

The Sparinvest Group was established in Denmark but is now based in Luxembourg. As at 1 January 2014 the Group Asset Under Management totaled 9.7 bn. The group is owned by a broad range of Danish institutional shareholders who support our independence and prudent investment strategy. Known as a specialist in value investment, Sparinvest has a long-term approach to investing. Consistent with this longstanding focus on fundamental risk, Sparinvest is a signatory of the United Nations Principles for Responsible Investment, and integrates environmental, social and governance (ESG) risk factors into the investment process for all its portfolios and strategies. Our mission is to deliver long-term performance, through a systematic and objective approach to investment which considers risk before reward. We are all committed to this goal.

Value Specialists for Equities

Our approach to global stock markets is based on the value strategy that was developed by Benjamin Graham for equity investments in 1930’s America. Our value equities strategy places emphasis on achieving a ’margin-of-safety’ by buying shares at an estimated discount of 40% or more.

Margin of Safety

Our Value Equities team consists of 9 investment professionals with experience of security analysis and value investing over complete economic cycles.

Buying undervalued companies

with a ‘margin of safety’ Sparinvest aims to provide investors with diversified portfolios of around 100 stocks from financially robust companies, including smaller ones, bought at a minimum discount of 40% and held until they reach intrinsic value. We aim to find companies whose balance sheet strength is deemed not to be accurately reflected in their share prices which – because estimated to be undervalued at the point of purchase – have scope to rise and, at the same time, can offer investors a ‘margin of safety’ against capital loss. Numerous academic studies have confirmed value as the equity investment style most likely to deliver excess returns over the longer term.

Our Strengths

  • Long-term focus and strategies
  • Dedicated value specialists in equities
  • Long track-record
  • Academic and systematic approach to investment
  • Risk-focused and style-consistent
  • Disciplined and transparent processes
  • Our actively managed funds have 100% bottom-up analysis process
  • Driven by strong corporate values
  • Independent firm

Responsible Investment

Sparinvest signed the United Nations Principles for Responsible Investment in 2009 and is a member of the sustainable investment forums Eurosif and Dansif. We have now achieved the formal integration of environmental, social and governance (ESG) risk factors into our already risk-focused investment analysis process. Moreover, we offer ethical overlays on our portfolios, aiming for exclusion of companies with bad ESG records rather than active ownership.

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The Sparinvest Value Equities strategy

Academic research* shows that a value approach to equity investment delivers long-term outperformance. Since 1997, Sparinvest has practiced a classic value style, closely modelled on the original ideas of Benjamin Graham.
Our investment process uses fundamental analysis to select quality companies, temporarily underpriced, with the expectation that, over time, prices will move towards their intrinsic values.

Our Value Equities Strategy

  • 100% bottom up
  • Off benchmark
  • Designed to find quality at a discount
  • High in potential M&A upside
  • Unbiased
  • Based on our well-known value strategy
  • Risk-foc used – including environmental, social and governance risks
  • Responsible – with active ownership by our fund managers

*There are currently over 150 separate academic studies proving the existence of a long-term value premium. Of these, the best known is the 1996 study by Fama and French which introduced the concept of the three factor model, demonstrating that value and small-cap styles consistently generate excess returns.

The Sparinvest Value Equity Team

Our Value Equities team consists of 9 investment professionals with experience of security analysis and value investing over complete economic cycles.

The Benefits for investors

100% bottom-up security analysis means investors get a portfolio of individual companies that have passed rigorous quality-control checks and ‘deserve’ to be invested in. We buy the company, not the stock, so we look for convincing long term business strategies and sound fundamentals.

Off benchmark - active management is conviction-led and can result in considerable divergence from benchmark. But a consistent value approach results in low portfolio turnover and should ultimately deliver long-term benchmark outperformance.

Quality at discounted prices - to us there is no such thing as value without quality. We are looking for fundamentally strong companies whose shares we deem are temporarily being traded at bargain prices. Based on our extremely conservative valuation methodology, we aim at obtaining a minimum price discount of 40%. This will provide investors with a ‘margin of safety’ against permanent loss of capital.

M&A upside. M&A activity speeds up the convergence between intrinsic value and share price, often resulting in an instant premium for those already invested in target companies. Historically M&A activity accounts for around one third of our portfolio exits - indicating that we have luck in finding discounted quality ahead of others, so our investors can reap the benefits.

Unbiased - in-depth fundamental research is preferred over company visits which are neither cost- nor timeefficient and can dilute objectivity.

Sparinvest’s well-known value strategy includes a thorough fundamental checklist which ensures that no stone is left unturned when looking for information that might affect the intrinsic value of our investments.

Risk focused - before investing, we look at all issues that could directly affect long-term business profitability.Risk factors are not just financial, they also include environmental, social and governance issues - so called ESG factors. All these considerations are integrated in our investment process to minimize risk for investors.

Responsible - we never forget that we are investing other people’s money and that brings an obligation to behave responsibly. We are active owners of company shares. Our fund managers decide voting policy and personally undertake dialogue with company management to exert influence for the benefit of investors.

Sparinvest Asset Management

Where Sparinvest provides asset management to institutional investors, our Value Equities strategy can be applied to different regions and cap sizes. This enables investors to create their own allocations and choose between any combination of:

  • Global
  • Global Small Cap
  • United States
  • Europe
  • Japan
  • Emerging Markets

This strategy is also available with optional ethical screening.

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Responsible Investment in the Sparinvest Group

Sparinvest’s cooperation with Ethix SRI Advisors

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Contact Us

Heritage Square, Office 4, Cnr Gladstone & Vrede Rd
DURBANVILLE
7550

Phone: +27 (0)21 975 9032
Fax: +27 (0)86 615 6453

k.french@corewealth.co.za
s.russell@corewealth.co.za

Sparinvest S.A. is a registered Financial Services Provider with the FSB in South Africa – FSP 44034

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Disclaimer

Supply of Information
The information accessible on this website was prepared by Sparinvest S.A. (“Sparinvest”) and published by Sanlam Life Assurance Limited through the Glacier-by-Sanlam range of investments and financial solutions (“Glacier”). All details are intended purely for information purposes and are aimed exclusively at investors residing in South Africa where the Glacier insurance portfolios (the “insurance portfolios”) are authorized for public marketing. On no account may the information supplied be construed as advice (as such term is defined in the Financial Advisory and Intermediaries Services Act, 2002) or as investment recommendations. Interested persons should consult a qualified specialist before taking investment decisions.

Investment Risk
Interested persons contemplating making an investment in the insurance portfolios, should determine their own investment objectives and experience, and any other factors which may be relevant to them in connection with such investment and the inherent and/or associated risks. In this regard any interested persons should seek independent advice as to, inter alia, taxation, exchange control and other statutory/regulatory implications and requirements.

Restrictions
The information contained on this website or the website pointed to does not constitute a request, offer or recommendation to buy or sell investments in the insurance portfolios or to engage in any other transactions. The information on this website is not intended for persons subject to a jurisdiction that prohibits access to or publication of this website (based on the person’s citizenship or domicile, or for any other reasons). Persons subject to local restrictions of this type must refrain from accessing this website. Interested persons must be aware that Net Asset Values of the insurance portfolios can vary. For this reason, the historical performance of an investment in the insurance portfolios is no guarantee of its current and future performance. Before purchasing investments in the insurance portfolio’s units, prospective investors should in any case carefully study the sales prospectus, the annual report (or semi-annual report if this is more recent) and other relevant legal documents (regulations or contractual terms and conditions or bylaws and any applicable simplified prospectus).

The sub-funds of Sparinvest SICAV are not authorized for public marketing in South Africa.

Other countries
The insurance portfolios may be admitted for sale in other countries. The general rule is that units in the insurance portfolios may not be sold, offered for sale or delivered in other countries without authorization for sale. The information on this website or websites pointed to is therefore directed at investors in South Africa where the insurance portfolios are authorized for public marketing only.