Melville Douglas Investment Management (Pty) Ltd

www.melvilledouglas.co.za

Company details

FAIS FSP registration number:

595

Switchboard:

+27 11 721 7964

Fax number: 086 202 7235

General email:

Admin.MelvilleDouglas@standardbank.co.za

Address:

8th Floor, West Wing, Standard Bank, 30 Baker Street, Rosebank, 2196

PO Box 411184, Craighall, 2024

Compliance officer name: Sue Chetti

GroupFAIScomplianceofficer@standardbank.co.za

Investment philosophy

Their investment philosophy is rooted in their mission to preserve the capital entrusted to them and deliver superior risk adjusted investment returns. Only fundamental research aimed at establishing the true intrinsic value of the investment opportunities can provide true insight. They acknowledge the importance of balance:

● Balance between investment returns and the risk associated with delivering those returns. They are longterm investors who demand a high margin of safety at the point of investing and maintain a low level of turnover within portfolios.

● Balance between capital growth and cash generation.

● Balance between compound and cyclical price performers. Their philosophy results in the core of the portfolio being invested in businesses with more predictable, less cyclical earnings profiles. Cyclical businesses are not ignored; however, the risk is managed via the weighting.

Melville Douglas’ philosophy is based on the firm belief that long-term investment returns depend on two key investment characteristics:

● the stable compounding ability of the underlying cash stream; and

● the price the investor pays. Investments with no cash streams (return on capital) are usually purely speculative, and are near-impossible to value appropriately.

As the key factor affecting the longterm returns of an investment is the price paid, they focus on identifying the intrinsic value of an investment opportunity and then ensuring they invest only when there is an appropriate margin of safety.

This margin of safety allows them to absorb short-term market shifts, strengthens their ability to take a longer term investment view and allows portfolios to benefit from the power of compounding returns. They believe in buying superior businesses with strong cash flows, known integrity and competence of management, at compelling valuations.

Their philosophy has been adopted and carried forward since the inception of the company. It has been a core principle of the firm and its investment professionals. The investment process has been refined and improved over the years, but the core investment approach and philosophy has been unwavering.

Their approach aims at achieving alpha by avoiding investments with high downside risk (or high volatility) and doubtful compounding ability; and by patiently allowing the compounding effect to work.

Who is your FAIS complaints officer?

Sue Chetti

Please provide the link to the complaints policy on your website: www.standardbank.co.za

What is the ownership structure of the company?

100% owned by Standard Bank Group Limited

Who are the directors of the company?

Directors: GS Baillie* (Chairman), CA Broadley*, BJ Drotschie, MJ Laws, JB O’Regan*, PL Schlebusch*, TS Nkanzela* | *Non-Executive

Interest in ownership? Please provide the percentage held by staff and management: None

When was the company established?

1983

List of mergers and acquisitions that have taken place since being established: Purchased by Standard Bank Group Limited in 2001

B-BBEE credentials

Are you B-BBEE accredited? Yes

What is your B-BBEE status?

Level 1

By whom have you been accredited?

EmpowerLogic

Date of accreditation: 2022-02-22