Shared Values Key To Helping Asset Managers Enlarge Their Footprint

Transformation cognisant asset managers are capable of demonstrating true value for clients and positively impacting people and communities. This is according to Mazi Asset Management, one of two black-owned asset managers, along with Sesfikile Capital, now available on the Old Mutual Max Linked Investment Service Provider (LISP) Platform.

Karabo Morule, MD of Old Mutual Personal Finance, says that the addition of Mazi Asset Management and Sesfikile Capital is part of the Personal Finance Responsible Business strategy.

“We play an active role in shining a light on excellence in the asset management industry, of which transformation cognisant asset managers manage R490 billion of the close to R8 trillion pie. By adding Mazi and Sesfikile onto our investment platform we’re giving our customers more selection while at the same time helping the asset managers grow their reach.

“Our company believes in the principle of time in the market, not timing the market. Mazi has a solid track record and is the preferred equity manager of Old Mutual Multi-Managers (OMMM). Their commitment to being in it for the long term and delivering real returns for investors, underpinned by a robust research process, resonates well with us,” says Morule.

The Mazi Asset Management Prime Equity Fund (B2 class) is joined by a property fund from Sesfikile Capital on the Old Mutual Max LISP platform and available to customers via their adviser or broker. By the end of 2018 the funds will also be available for investment online.

Sesfikile Capital is a majority black-owned specialist property investment manager founded and run by Kundayi Munzara, Mohamed Kalla and Evan Jankelowitz.

“Adding the Sesfikile fund to the retail platform was a natural progression as the company already manages half of OMMM’s domestic property exposure,” says Morule.

“Our selection process looks at asset managers whose solid, repeatable investment activity has resulted in a track record of consistent delivery over a minimum period of three years.”

Morule acknowledges that newer transformation cognisant asset managers may experience initial difficulty in meeting some of the criteria, at least in the short to medium term.

“Of the 48 black-owned asset managers in South Africa, 23 are less than five years old. To balance our fiduciary and responsible investment duties, Old Mutual Personal Finance has developed an approach to support black-owned asset managers that also takes into account, among other criteria, the size and stability of investment teams, the structure of the business and investment teams, and its underlying investment philosophy.

“Our responsible investment strategy will continue to focus on the addition of transformation cognisant asset managers onto our Max LISP platform and creating awareness among our customers and advisers,” Morule concluded.