South African global fund manager named world’s best

Kokkie Kooyman of Sanlam Investment Management (SIM) Global

One of South Africa’s most awarded fund managers has been named as the top global fund manager (category: financials) by prestigious UK-based publication, Investment Week last night. Kokkie Kooyman of Sanlam Investment Management (SIM) Global, who was up against stiff competition from around the world, accepted the award at a ceremony at London’s Royal Albert Hall.

Kooyman, global fund manager at SIM Global, was the only nominee from South Africa at the awards. He has managed the Global Financial Fund for 10 years and during that period it has achieved a compound annual return of 14 percent in US dollar terms for investors, despite the two bear markets that occurred over the decade. The award winning fund has also consistently ranked in the top three financial funds over the past six years.

The Investment Week fund manager of the year awards highlight funds which have consistently outperformed over a three-year period and which the judges believe will continue this performance in the future. Kooyman’s competition was steep. Other funds in his category included Hiscox Far Eastern Financial and Jupiter Financial Opportunities.

Kooyman attributes the fund’s outperformance to a three-pronged investment approach, “Firstly, SIM Global has a great research team which continuously updates its models of 360 global banks. Secondly, the team has the ability to find companies that have a track record of above average growth but are also (temporarily) undervalued. Finally, we regularly travel abroad to conduct company visits and through these visits we build conviction and in-depth knowledge which has been invaluable during the downturn in the markets.

“We look to invest in companies with a track record of good growth and more predictable prospects, led by strong and knowledgeable management, a good “moat” and attractive valuation (normally a low price to net asset value). The companies are usually below the radar of other investors and/or brokers; therefore we visit these companies and speak directly to management in order to better understand their business and the country and industry they operate in. Currently, we believe that Turkish and Indian banks are being misunderstood by the market. Both countries have populations with low debt levels and very underdeveloped financial markets and for that reason, those are the countries I would pick to invest in right now,” says Kooyman.

On investing in European banks, Kooyman says various governing bodies have started taking the corrective steps to address their problems, but considerable pain and uncertainty still lie ahead. He adds that the voters in each country will most importantly have to decide whether to persist with the reform process when the situation worsens. He says, “The European banks are undervalued, so a lot of bad news is already priced in. But we still think it is wise to exercise patience before investing.”

According to Investment Week’s website, “A look at the previous winners section shows many of the managers who won in the past are still considered to be at the top of their peer groups today.” The publication acknowledges that the economic crisis led to a high level of fund manager turnover in the last few years, but the awards are only for funds where the manager has been in place for three years or more. “Just as the judges are looking for consistency of return, they believe one of the best ways for a fund to achieve this is via the consistency of a fund manager's tenure. The top managers tend to be those who stick with their portfolios for the long-term,” says the publication.