“My time at Schroders Investment Management Limited, London UK”

Argon / SchrodersGlobal Graduate TraineeProgramme“My time atSchroders InvestmentManagement Limited,- Report byLondon UK” Katleho MotsohiTrainee Investment Analyst atArgon Asset ManagementKatleho MotsohiClass of 2012 Alum Schroders/Argon Graduate Trainee ProgrammeB Com (Philosophy, Politics & Economics) UCTCandidate; CFA Level 1, IMC (UK), M Sc Finance(Economic Policy) SOAS, Univ of London (UK)AbstractFrom 20th August 2012 to 26th November2012 accompanied by my work colleagueSiseko Joxo, we were hosted by SchrodersInvestment Management (London) Limited wherewe undertook specific training on investmenttechniques and work practices used in the UK.Training covered an introduction to the worldof finance in theory and practice along withpreparation for exams such as the UK InvestmentManagement Certificate Exam (UK IMC) and theCFA Level 1 exam. An external service provider witha global reputation in financial services trainingprovided the majority of the classroom instructionalong with the preparation for the examinations.For the duration of our stay at Schroders we wereexposed to investment products offered arounddifferent asset classes such as fixed income andequities, how to present to clients and some of thetools utilised in managing client relationships.Overall, being a part of the Schroders Graduate“Class of 2012” was an enlightening andinvaluable experience that added value not onlytowards our careers as investment professionals,but also broadened our horizons through beingexposed to the global melting pot of culture inLondon.In the BeginningAs with all quests or undertakings into theunknown, my levels of anxiety were unusually highbefore our 10-hour flight to London as this was myfirst trip overseas. However, the anxiety quicklysubsided as we landed in London on the 18thAugust 2012, which was a particularly hot andsunny day in the capital. After our transition fromthe airport to our new abode for the next 4 (four)months, we quickly settled into our comfortableflat in Aldersgate Street, which was only a briskfive minute walk away from the Schroders offices.Our first weekend was spent getting used to ournew environments and preparing for our first weekas representatives of Argon Asset Managementin the Schroders Global Graduate TraineeProgramme.On Monday the 20th August 2012, the SchrodersGraduate Programme commenced at 08:30with a quick meet and greet at the Schrodersreception where we were introduced to the rest ofthe graduate class by Shan Nelson, the GraduateRecruitment Specialist. Post the initial briefintroductions in the Schroders lobby, we quicklyshuffled into the lift and went up to the 8th floor,our home for the most part of the first 5 weeks ofthe training programme. On the 8th floor we metthe first of our instructors Kevin Boyle, who wouldbe guiding us through the Schroders GraduateAn African investment firm with global standards1

Insurance Asset Management (IAM) team where Iworked alongside fellow grad Stewart Bailey withthe team headed by Paul Forshaw.Life at the deskLife at the desk started on the week of the 17thof September 2012. Once again, the anxiety creptin as we were assigned our respective projectsand became more acquainted with our respectiveteams. However, starting to work at the desk didnot signal the end of life in the classroom as thoseregistered to write the CFA Level 1 exam wouldspend two days a week preparing for the examin the team along with impromptu debates on thedirection of UK politics and the current eventsin the news. Given insurers predominantly seekfixed income products which carry low risk and arealso highly liquid, a large portion of my time wasspent researching potential clients’ fixed incomeallocations and matching them with Schroders’fixed income products. With yields falling at thetime, more insurers seeking returns were mostlyinterested in exposure to emerging market bondswhich offered a better return in comparison tobonds in developed markets. Exam preparation ofthe CFA Level 1 exam was conducted and ledthey told us a bit about themselves before allowingthemselves to be bombarded with questions fromthe grad class.Life in LondonLiving in London was truly an amazing experiencewhich broadened my horizons. The earlier stagesof our trip were spent exploring the city andvisiting most of the popular tourist landmarks.What we most enjoyed about living in Londonwas the convenience of getting around withthe underground proving to be a highly efficienttransport system. One of the major highlightswas heading to the Emirates Stadium to go seeArsenal FC vs Coventry FC. This trip to the EmiratesStadium was arranged by Mr. Patrick Grant (Headof Middle East & Africa) who constantly made surewe were looked after for the duration of our stayat Schroders.The atmosphere at the Emirates stadium waselectric and with Arsenal winning 6-2, the trip tothe Emirates Stadium exceeded expectations.During weekends each of the grads had a chanceto take us out and show their favourite part ofLondon which also allowed one to really get afeel for the city from the perspective of someonewho knows the city. We also had a chance to visitCambridge University during one of the weekends.with Tom Gordon and one day a week learningabout the ins and outs of value investing with Prof.Glen Arnold. For the duration of our time at thedesk, we also learnt new financial modelling skillsthrough formal training on Microsoft Excel. In thefinancial modelling course we were presentedwith a company and generated a financial modelwhich would allow us to forecast drivers of ourequity valuation. These lessons were given by Mr.Mike Corless, whose experience as the previousHead of European Equity Research at HSBC AssetManagement was evident.Working at the desk was particularly enjoyable asit allowed one to put into practice what had beenlearned in the classroom. Being around a teamwith years of experience also allowed me to gaininvaluable knowledge and insights on the markets,and how to succeed as an investment professionalin the modern world.During the first week at the desk after completingmy assigned readings on the inner workings ofthe insurance industry in the UK, I was assignedmy respective project which I would be carryingout for the duration of my stay. My project wasto develop specialised Insurance Request-For-Proposal (RFP) content that would be used toimprove how efficiently the IAM team couldreply to and complete an RFP for an insurancemandate. I enjoyed working with this team as theyhad a work hard play hard ethic which teachesfocus, excellence and the importance of findingbalance between work and leisure. The workingatmosphere was also cheerfully pleasant withgood banter now and then coming from everyoneby Tom Gordon, CFA. Given the daunting task thatis merely preparing for the exam, the group drewcloser as they began to discuss exam tips andtechniques discovered while burning the midnightoil the night before. Having the classroom sessionsalongside working at the desk also provided mewith the fundamental lesson of time managementas deadlines on projects and tasks handed outstill had to be met. The Schroders CFA Programmeconsisted of the classroom sessions with Tom,daily questions sent via e-mail and access toan online portal with lecture slides, notes, videolectures, audio lectures, a library of questions,revision workshops along with a mock exam.In order to gain a better understanding of themarkets from a value perspective, lessons onvalue investing were carried out by Prof. GlenArnold. These were held on days in between theCFA exam preparation days and were compulsoryfor members writing the CFA Level 1 exam. Theaim of the sessions was to teach the group onthe importance of the qualitative factors in theinvestment process as opposed to focusing solelyon quantitative factors in the investment process.Most sessions provided valuable insights onvarious qualitative techniques and factors used inthe value investing process.After a few weeks working at our respective deskswe were also presented with the opportunity tomeet Mr. Bruno Schroder where he asked us onour backgrounds and provided the class with hisand the firm’s history. In addition to meeting Mr.Schroder, we also met Mr. Michael Dobson, theCEO and Mr. Andrew Beeson, the chairman where“ Everyone at Schroders alwaysremained accessible, whichprovided a pleasant atmospherein the workplace and remindedone of a very similar workingculture at Argon, where thereare no closed doors. ”Katleho MotsohiAn African investment firm with global standards3

ConclusionIn conclusion, the exposure to Schroders wasa success which had a positive impact on thebeginning of not only our investment careers, butprofessional lives. Being a part of the Schroders/Argon Global Graduate Trainee Programme allowedme to not only learn more about investing andasset management, but also more about myselfand where I have room to improve, particularlywhen it comes to working on my impatienceand improving my teamwork. Being exposed tothe various asset classes, Schroders providedinvaluable insights on the many different waysmanagers and analysts combine in their effortto seek excess returns whilst mitigating risk at aglobal level.Mr Seseli once again I’d like to thank you forallowing us to be part of this growing story. May wecontinue to be beyond the benchmark.“Mr Seseli once again I’d liketo thank you for allowing us tobe part of this growing story.May we continue to be beyondthe benchmark.” Katleho MotsohiAbout Schroders InvestmentManagement LimitedSchroders is an independent, dedicatedasset manager with a strong heritage andculture based on over 200 years’ experienceof investment markets. Listed in the UK,Schroders benefits from a strong balancesheet and a stable ownership structurewhich allows for focus entirely on deliveringresults for its clients. With over € 254.20billion client assets under managementand an international network spanning 34offices in 27 countries, Schroders has theperspective and expertise to identify majorinvestment potential wherever it is located.Katleho sightseeingSchroders manages assets on behalf ofinstitutional and retail investors, financialinstitutions and high net worth clients fromaround the world, invested in a broad rangeof asset classes across equities, fixedincome, multi-asset and alternatives. Longtermthinking governs their approach toinvesting, building client relationships andgrowing their business.Katleho and Siseko with Argon Asset Management Managing DirectorMothobi Seseli, before their departure for London.An African investment firm with global standards4

“My time at SchrodersInvestment Management Limited,London UK”” - Report bySiseko JoxoTrainee Investment Analyst at Argon AssetManagementSiseko JoxoClass of 2012Alum Schroders/Argon Graduate Trainee ProgrammeB Com (Accounting) UWCCandidate; CFA Level 2, IMC (UK)IntroductionThe tube, the cab, St Paul’s Cathedral, the chard,coupled with the mid-day drink at the pub and theall round banter of derivatives, markets, the PIGS,Euro zone, Draghi and the Cliff. Welcome to theCity, also known as London. This was my home for4 months, a bustling place where everyone seemsalways on the go. This report serves to share myexperiences during my stay in the City. The reportwill cover our arrival in London, my training, thedesk and the people I met and spent time withduring my stay.The ArrivalAre we in Cape Town? That’s the first thoughtthat crossed my mind when, on the way from theairport we encountered a black Mercedes (C63 ofcourse) thumping loud music and a young fellowwith over applied gel and shades at the wheel.A familiar scene back home, maybe we would fitright in after all. Passing Trafalgar square, seeingthose majestic lions, it began to sink in that wewere in London, the driver who clearly thought hewas related to Enzo Ferrari (he was Italian) with hisdriving , would not give us the time to even savourthe moment. So home we went, by home I mean abeautiful 2 bedroom apartment on the wait for it,10th floor with a balcony and a view. I was nevercoming back home.The next two days we spent on learning about ourenvironment and preparing for the beginning of ourjourney at Schroders Investment Management.The TrainingOur time at Schroders began with a brief welcomingand induction by Ms Shan Nelson, graduaterecruitment and training coordinator. We werethen handed over to Kevin Boyle, who would be ourfinance and asset management foundation trainerfor a period of two weeks. Initally we covered anintroduction to the industry, presentation skills,economics, interest rates and forex, fixed incomeand finally an introduction to derivatives and creditanalysis.Later we covered equity markets and valuation,derivatives, alternative investments and structuredproducts and ended of the program with portfoliomanagement principles.Although the above might seem technical andmechanical, there were numerous activitiessurrounding this core curriculum. Presentationskills were deemed important by our instructorKevin and as such during these sessions, we weresplit into various teams and instructed to presenton the theme being covered in the session. Eachday a team also had to present on a financiallyrelated topic. We were encouraged to critiqueeach other constructively and we did so, withpraises also being given where they were due.Our final presentation was a sales pitch to MrAlan Brown, the Global Chief Investment Officerof Schroders, acting as a pension fund trustee inthe activity. Other activities included presentationsto us by various members of Schroders staffaround the organisation, ranging from the COO,Markus Ruetimann, to European economists,portfolio managers from various teams and riskmanagers as well. Another notable activity wasthe trade simulations, in equities, fixed incomeand derivatives, where we competed against eachother as groups.“Are we in Cape Town? That’sthe first thought that crossedmy mind when, on the way fromthe airport we encountered ablack Mercedes (C63 of course)thumping loud music and ayoung fellow with over appliedgel and shades at the wheel.”Siseko JoxoThese activities would round up our session withKevin Boyle, a clear, frank, patient and extremelysupportive person who instilled a sense ofconfidence in the graduates. The next phase of ourtraining was preparation for the UKAn African investment firm with global standards5

Siseko sightseeingIMC (Investment Management Certificate) exam.Unfortunately Katleho and I due to visa restrictionswere unable to write the examination in the UnitedKingdom. We were however expected to attend allthe sessions with Harry Cross our new instructor.Harry’s mission was to help the trainees pass theexam, he was not Kevin to say the least, he was acurriculum man, he instructed, we listened.The final leg of our training was then made up ofCFA classes and CFA support with Professor GlenArnold. It was also during this time that we wereassigned to our desks. This time was split betweenclasses and work. We spent at least two days atour desks and the other three in classes; it wasthe opposite in some weeks. The CFA classes werehelpful more especially with guidance and supportwe received from our instructor Tom Gordon. ProfArnold’s sessions also provided some interestingand powerful insights.The DeskWe were placed in our various departmentsshortly after the IMC exams concluded. I withanother graduate were placed in fixed incomeproduct, under the guidance of Manu George (aPolokwane born South African), one of the Headsof Fixed Income Product while Katleho was placedin Institutional Insurance. My initial task was todocument and compile all fixed income productprocedures; this would require the assistance of therest of the team. My other tasks were to researchthe European Fixed income high yield market,and looking into products offered by Schroders’competition in this area. Another project I assistedon was data compilation of the best performingand worst performing asset managers in the fixedincome space for our Product Health Check. Thiswas a gauge of how well Schroders fixed incomeproducts were performing relative to their peers.The Schroders Fixed Income Product team I wasassigned to was made up of Manu George, productmanager, Jonathan Harris, who had a Hugh Grantstyle about him, Stuart Mead, Chris Tams who hadone of the loudest and deepest voices I’d heard ina while. He was also very supportive and helpful inthe beginning stages of my work. The rest of theteam was made up of 4 ladies, Astrid Judd, GraceCanavan, Emma and Alex Burt the trainee (oftenteased at being my assistant due to always sendingemails on my behalf).The PeopleI have to start with this individual I was with, myfriend colleague and personal trainer, KatlehoMotsohi, a hardworking, committed, straightforward and supportive person. I enjoyed the timewe spent both as colleagues and as flat mates.Then there were the graduates, Stuart Bailey,the social secretary, who brought us togetheras a group. There was also Charles McPhersonAn African investment firm with global standards6

aka Champagne Charlie (Eaton college, Chelsealiving, pinkie ring wearing private banker), themaverick of the group. Matthew Bennison akaMattie B (He came from Warrington, NorthEngland, the equivalent of Butterworth I guessed)Cambridge mischief had not left him yet. Therewas Steven Shields, former boxer turned equitiesanalyst (cement specialist) who seemed keen at aplacement at Argon in the future. There was mydear assistant Alex Burt, we were posted togetherin Fixed Income Product, a born organiser, theyoungest in the group, feisty and often teased forher over emphasised expressions such as “sorry”and “literally”. There was Katie Green, whowas quite an entertainer after a glass or two ofsomething. There was feisty Sophie Paleschi, frankand direct, her nationality was always mistaken forSpanish or Persian, and her parents though wereItalian and Indian. Kathryn Pirrie (IT) and SorayaZahidi (HR), the inseparable pair, Soraya, a Frenchnational, who would later become our go to personin HR, related matters. From the Schroders USoffice were Scott Dow, one of the funniest gradswe met and the only person I knew who woreHawaiian shirts and white gym socks to work andMina Shankar, petite, independent, opinionatedand bright. From the Singapore office were StellaHuang, a great cook and Wei Hi, focused, intenseand all about the markets. There was Sean Fray(Finance) and Michael Devereaux (Multi Asset) whoalways complained about being overlooked in groupmails for our social gatherings. Sean was an avidArsenal supporter and we had bets on Michael tobe the first to walk down the aisle (by force if I mightadd). There was Emma (Finance), always busy withgrown up things like buying a house, a target forMatthew’s sarcasm due to her unintended banterabout her family’s wealth. Finally were the girlsI referred to as the “finer things in life ladies”,Natasha Lee (Equities product), petite, a lady ifthere was ever one, with Gucci hand bags, trips toNew York and attending auctions at Sotheby’s . Shewas also a student in Krav Maga (Israeli defencemartial arts style). Then Finally Emily White (andyes she was as pretty as the name), Marketing Mimias she was known was living it up in fancy hotelsand taking company trips while the rest of us werebusy staring at spread sheets, which made her theenvy of most of the ladies. These were the peopleI shared my time with for 4 months, they made animpression on me and I hope I did the same.The above were not the only people I had theKatleho and Siseko with Hugh Sundelson (Human Capital Adviser) and SelloSetai (Head of Finance & Operations at Argon Asset Management)pleasure of meeting though. We were introducedto Baron Bruno Schroder, descendant, custodianand owner of Schroders. A pleasant gentleman,who gave us the history of his family’s businessand who assured the graduates that by making itthrough the doors of his building they were indeed“first class” , his words. We also had the opportunityto meet Mr Michael Dobson, CEO and AndrewBeeson, both of whom we had the opportunity tointerrogate with our questions. These were justsome of the individuals I had the opportunity tomeet at Schroders.To ConcludeIn this report I have discussed my arrival andimpressions of London, what my training entailed,my time at the desk and finally the people withwhom I spent my time and met. This was morethan a trip for me, it was an awakening. It wasthe beginning of a journey, a journey that says“welcome to the world”, the possibilities areendless. I would like to thank Argon AssetManagement for this opportunity, for their constantfaith, belief and support for both Katleho and I.Argon Asset Management embodies the principlesand spirit I aspire to uphold in the utmost. I willthereforeendeavour to the best of my abilities tobecome the investment product it requires me tobe.“Argon Asset Managementembodies the principles andspirit I aspire to uphold inthe utmost. I will thereforeendeavour to the best ofmy abilities to become theinvestment product it requiresme to be.” Siseko JoxoReflection byChief Investment Officer, Argon Asset Management“We are serious about developing our own timber. Katleho and Siseko represent the new generation of talent atArgon Asset Management. Through their exposure to true global pedigree and thinking at Schroders, it is a giantstep towards our goal of building an investment cadre that is global in their approach, leveraging this thinking togenerate locally relevant client solutions”Dr. Manas BapelaM Sc (Mathematics) cum laude Ph D (Mathematics) University of Pretoria,Global Investment Risk Management (Saïd Bus School, Oxford University) UKAn African investment firm with global standards7

advancing BEYOND THE BENCHMARKAbout Argon Asset ManagementArgon Asset Management (Pty) Ltd is an owner-managed investment management company. We provide investment management services toinstitutional investors such as retirement funds, medical schemes, treasury functions and other similar institutional pools of capital. Driving all ourdecisions are our values of honesty, integrity, thoroughness, reliability, good ethics and respect for ourselves and others.We offer equity, fixed income (bond & money market) and multi asset class (absolute return) portfolios. These in turn products are underpinnedby a fundamental research-driven investment process, a team of talented and experienced professionals, a well considered and consistent riskmanagement programme, and a commitment to global standards and international best practice in our investment process and operations. Weoperate from offices in Cape Town and Johannesburg.Contact DetailsGeneral Tel 021 670 6570www.argonassetmanagement.co.zaCape Town1st floor, Colinton HouseThe Oval, 1 Oakdale RoadNewlands, 7700Johannesburg7th floor, Fredman Towers13 Fredman DriveSandton, 2146Information contained herein is for information purposes only and is merely illustrative. It is not deemed as advice as defined in the Financial Advisory and Intermediary ServicesAct (FAIS Act). Argon Asset Management (Pty) Ltd and its employees shall not be held responsible for any losses sustained by any person acting based on the information. Pastperformance of the fund is not indicative of its future performance.Persons are advised to contact Argon directly should they wish for Argon to further conduct an analysis with view to invest in the fund or any of Argon’s products.Argon Asset Management (Pty) Ltd is an independent investment management company registered in South Africa, company registration number 2002/016801/07 and anauthorised financial services provider under the Financial Services Board (FSB) registration number 835 as well as FSB section 13B pension funds administrator registrationnumber 24/434. The main business of Argon Asset Management is the provision of investment management services to institutional clients. Argon Asset Management managesSouth African specialist equity portfolios, SA fixed income portfolios and multi-asset class absolute return portfolios.Argon Asset Management (Pty) Ltd is a registered financial services provider.An African investment firm with global standards8