Welcome to Through our Lens Edition 3

Through our Lens: sustainable investment highlights

A message from Gielie

Welcome and thank you for reading the third edition of “Through our Lens”. This edition continues to provide valuable insights into sustainability. At Sanlam Investments, we maintain our unwavering passion for driving positive change through sustainable investment practices.

Teboho Makhabane, Head of ESG and Impact at Sanlam Investments, shares her expert perspective. While ESG funds have experienced short-term fluctuations in performance, these should not overshadow the resilient long-term trends driving the sustainable investing movement. In her article “Navigating short-term challenges: upholding ESG goals for a sustainable future,” she highlights the significance of sustainable investing in South Africa, given the unique environmental and social challenges that we face.

The article “The Slow Simunye: Are the Benchmarks Finally Becoming One?” delves into a timely topic. March 2024 will witness the harmonisation of the FTSE/JSE SWIX and ALSI methodologies, a move that has raised questions about its impact on the asset management industry. In this article, Nico Katzke, Head of Portfolio Solutions, unpacks the purpose, rationale and timing of the harmonisation, while addressing the importance of a unified benchmark index.

Have you ever considered the seriousness with which asset managers approach climate change? According to the 2023 Robeco Global Climate survey, 85% of asset owners representing US$27 trillion in assets under management (AUM) believe that climate change will take centre stage in two years’ time. A concise overview of the Climate Survey is presented.

We are excited to share our “Living Investments” brand campaign with you. The campaign shares our vision of creating a sustainable future, where we all can live confidently, with the assurance that today is positive and tomorrow even better. The campaign outlines various initiatives and projects that embody Sanlam Investments’ commitment to making our vision a reality. Our newsletter provides an in-depth look at our campaign.

Passive investment strategies, or Indexation strategies – which is how Satrix prefers to term them – have evolved since their inception in the 1970s. In his article, “Factoring in Style in Smart Portfolios: Demistifying Quantative Portfolios,” Nico Katzke delves into factor investing strategies. Nico argues that factor portfolios offer investors the best of active and passive investment strategies. This is based on the view that factor investment strategies provide investors with an attractive blend of being active in the set of rules targeted, but passive in the application of these rules.

The article “Sanlam Investments Private Equity takes majority stake in Danny’s Auto” highlights the opportunities within the private equity markets and the contributions that Sanlam Investments aims to make to small and medium enterprises (SMEs). The investment in Danny’s Auto marks the fifth investment in the SPE Mid-Market Fund I, adding to the successful completion of investments in the Cavalier Group, Absolute Pets, Q Link and SkipWaste.

Off the back of Women’s Month in South Africa, we commemorate the remarkable anniversary of the historic women’s march of 1956 – a pivotal event where women courageously marched to the Union Buildings to protest the enforcement of passbooks. This historical milestone serves as a reminder of the progress we’ve made and the ongoing strides we continue to take towards equal opportunities and inclusion. As we navigate the complexities of investment strategies, let us also reflect on the significance of diversity and empowerment, values that deeply resonate with the spirit of Women’s Day.

I trust that you’ll find this edition of “Through our Lens” both informative and inspiring.

Through our Lens