The past two days 7th and the 8th of March 2012, MNCapital in association with Africonomie hosted the Fund and Asset Consulting Forum. Over 100 participants gathered to stimulate discussions about different aspects of the Retirement Industry. Raymond Ndlo
The first panel of the day covered Investment, Governance and Fiduciary advisory needs of retirement fund trustees. The panel counted on the contributions from Isgaak Ebrahim Jarodien – Groups Retirement Funds Manager and Principal Officer of Illovo Sugar Limited, Bashkar Latchman, Independent Trustee and Principal Officer and Vice President of the Institute of Retirement Funds and Fagmeedah Petersen, Independent Actuary.
On his presentation covering the role and responsibility of asset and investment consultants, Johan Henn, CEO of Novare Actuaries and Consultants said “Consultants require extended skills base and systems to cope with requirements of Regulation 28, more detailed investment and product knowledge is critical.
The session on Revisiting Asset Allocation strategies and evaluation was led by Evan Gilbert, head of Institutional Asset Consulting at MitonOptimal and Jacobus Troveri, Head of Transition at RisCura Transition.
Wanjiru Kirima, Chair of Sustainable Returns for Pensions and Society emphasised on the practical implementation of CRISA and Regulation 28 in terms of integrating ESG. “Sustainable long-term investment performance relies on a full appreciation of the risks and opportunities that portfolio investee companies face. Designing sustainable investment strategies requires accurate analysis of material environmental, social and governance (ESG) factors.”
Participants at the Fund and Asset Consulting Forum 2012 heard in the past two days that there are strong financial incentives for investors, including pension funds and asset managers, in large capitalization companies to ensure that carbon risk is actively considered as a material factor. "There is a need for major S.A. JSE-listed companies to clearly articulate to shareholders, policymakers and regulators their plans and practices in managing ESG exposures, including their carbon footprints," said Graham Sinclair, Principal at sustainable consulting advisory boutique, SinCo and President of AfricaSif
In an interview with the organisers, Luvo Tyandela, Managing Director of Mianzo Asset Management and the Forum sponsor said “The Investment Management Industry has a lot to contribute to the Retirement Fund industry. If South Africa is to be put onto a meaningful growth path, then a culture of saving must be encouraged. Compared to other emerging economies, South Africa scores very low on domestic savings levels when put side by side with countries such China and Malaysia. It is a known fact that increased savings levels are essential to advancing a country’s economic aspirations. For example, saving via the government’s national retail bonds means the state will be able to borrow cheaper for spending on infrastructure development; this in turn creates employment opportunities. Therefore, higher household savings levels have a domino effect on the economy because it allows governments and companies to access capital for reinvestment. There is therefore a strong correlation between a nation’s savings record and it’s capability to attract investment.”
“We will continue encouraging the ongoing growth and industry knowledge-sharing that happened in the last two days at the Fund and Asset Consulting Forum 2012, our continent benefits from such gatherings, we have realised tha pension funds that invest in Africa are crutial for our future. Expect more events of such calibre from MNCapital and Africonomie” said Michael Ndinisa, Executive Director and organiser of the Forum.
The Fund and Asset Consulting Forum was generously supported by Mianzo Asset Management, Mvunonala Asset Manager, KWV and supported by AfricaSif, SinCo, CGF Research Institute, MoneyMarketing, COVER, Insurance Gateway and FANews.