Sanlam Investments’ structured solutions business awarded R16 billion third-party mandates in 2026
Sanlam Investments has one of the largest structuring and derivatives capabilities in South Africa, managing more than R80 billion in portable alpha strategies
Sanlam Structured Solutions (SSS), a division of Sanlam Investments, announced that it has been awarded R16.2 billion third-party mandates on institutional portfolios in 2026, following strong performance enabled by its dynamic portable alpha strategy.
St John Bunkell, Executive Head of Portfolio Management at SSS, says that Sanlam Investments has one of the largest structuring and derivatives capabilities in South Africa. “We manage more than R80 billion in portable alpha strategies. Our task is to deliver well-balanced and optimally structured solutions for clients. At the heart of these mandates is our portable alpha capability, which allows investors to separate beta (market exposure) from alpha (skill-based return), enabling more efficient portfolio construction,” he says.
“It allows clients to adjust offshore exposure within defined ranges, without physically buying and selling underlying assets, reducing trading costs while maintaining benchmark integrity. Additional offshore exposure is what clients are looking for,” Bunkell says.
He adds that Sanlam Investments holds a unique position – as an asset manager within a major life insurer – and this allows the team to convert synergies into tangible client benefits.
“As a result of our sizable balance sheet, we are typically able to take on less risk while delivering similar – and improved – return outcomes relative to competitors. Due to the efficiency of this strategy, we are able to give clients efficiency and better risk return dynamics than competitors without access to a balance sheet. That combination of structural efficiency, balance sheet strength and disciplined risk management sets us apart in the market.”
It also means creates greater flexibility for the team to implement views between local and offshore markets more efficiently, cost-effectively and in line with evolving opportunities for clients.
What’s next?
The 2022 amendments to Regulation 28, increasing allowable offshore exposure to 45%, fundamentally reshaped the opportunity set for South African portfolios. The ability to adjust global exposure efficiently and cost-effectively has become a decisive advantage.
Bunkell adds: “In investment management, mandates are never simply awarded – they are earned through performance, discipline and trust. Efficiency matters, especially in environments where global performance dispersion is widening and asset allocation decisions are increasingly impactful.”
“We believe we have a market leading portable alpha capability and track record. The core competencies and building blocks which support this are also often leveraged for the benefit of our clients in more bespoke solutions and we continue to see more of our clients asking for us to partner on solving specific challenges or develop bespoke solutions which suit their investment needs and risk appetite. We are uniquely positioned to serve our clients in this way given the skills and toolkit at our disposal,” says Bunkell.
