Inside Institutional: Edition 3

A message from Tino’s desk

In this edition of “Inside Institutional” we reflect on the month of August which is celebrated as Women’s Month in South Africa. The commemoration pays tribute to the courageous actions of over 20 000 women who, on 9 August 1956, marched to the Union Buildings, protesting against the extension of Pass Laws to women.

Female representation in the investment management industry remains a pivotal focus due to compelling evidence from numerous global studies suggesting that diversity and inclusion contribute to more robust decision-making. Nonetheless, the pace of the advancement has been gradual, demanding concerted efforts for significant change. In her article, “Why gender equality in investing needs to be a priority”, Preanka Naidoo, Portfolio Manager at Sanlam Investments Multi-Manager, discusses why gender equality in investing needs to be prioritised as she draws on numerous global studies.

Sustainability continues to be at the heart of everything we do at Sanlam Investments. Teboho Makhabane, our Head of ESG and Impact, lends her perspective on the growing debate around the sustainability of sustainable investing. In her article, “Navigating Short-Term Challenges: Upholding ESG Goals for a Sustainable Future” she discusses the current testing return environment. She points to instances such as the US, where ESG funds have experienced consecutive quarters of outflows as they are impacted by rising oil prices and energy stocks, resulting in investors questioning the viability of these funds. Teboho advocates for upholding the commitment to ESG investing and staying the course despite the short-term fluctuations in the performance of these funds.

In keeping with the theme of sustainability, in a world characterised by constant change, our unwavering dedication to a sustainable future remains resolute. We unveil ‘Living Investments – in people, community and planet’ – our brand campaign that embodies our vision of creating a sustainable future. Through this campaign, we aspire to instil confidence in the present and optimism in the future. In a harmonious convergence of purpose and progress, the campaign highlights our dedication to a sustainable future where our investments live through people, communities and the planet, drawing attention to the potency of our purpose-driven investment approach. Further insights on this campaign can be found in the article “The essence of ‘Living Investments’”.

Our exclusive sustainability services partnership with Robeco Asset Management continues to wield significant influence within our value proposition.  In this edition, our ESG Engagement Specialist, Kuhle Sojola, discusses the key findings from the 2023 Robeco Global Climate Survey. The survey incorporates the views of 300 asset owners across the globe, who collectively have assets under management (AUM) of over US$27 trillion. Notably, this iteration includes, for the first time, a South African perspective, offered by Sanlam. While most investors surveyed remain committed to net-zero carbon emissions by 2050, around half admitted to reviewing their sustainable investing approach last year to take advantage of a sharp rise in energy prices.

Our Private Equity Mid-Market Fund I, which closed at R3 billion as at 31 August 2023, has completed its fifth deal by acquiring a majority stake in Danny’s Auto Body Parts (Danny’s Auto), a provider of top-tier aftermarket automotive parts and accessories for a diverse range of vehicle types and models in South Africa and other sub-Saharan countries.  This follows the success stories of  Cavalier Group, Absolute Pets, Q Link – a fin-tech provider of payment application software – and SkipWaste, an integrated waste management and alternative disposal business. Paul Moeketsi, Managing Partner at Sanlam Private Equity and Gift Pule, Principal at Sanlam Private Equity, discuss this latest investment in an article, “Sanlam Investments Private Equity takes majority stake in Danny’s Auto”.

Over the past few years, there has been much talk about the need to align the FTSE/JSE SWIX (Shareholder Weighted Index) and ALSI (All Share Index) methodologies. The Johannesburg Stock Exchange (JSE) initiated public discussion on how to make this a reality. The alignment is set to be a reality in March 2024. Nico Katzke, Head of Portfolio Solutions at Satrix, discusses the “what”, “why” and “when” – emphasising that having a harmonised benchmark index matters for the integrity of our asset management industry. Nico further discusses the importance of this change in the article, “The Slow Simunye: Are the Benchmarks Finally Becoming One?”.

Lastly, we invite you to join us at the Annual IRFA Conference 2023 from the 17 to 19 September as we delve into the Two-Pot Retirement system and its implications.

We extend our gratitude, on behalf of Sanlam Investments, for your ongoing support, and we trust that you will find this edition of Inside Institutional to be insightful.

Tinotenda Mtemeri
Head:Distribution

Inside Institutional