Manager Insights
People Shaping The Past…and The Future
We have observed changes at the CIO or CEO level of several asset managers with some key female hires. At the same time, we have unfortunately said farewell to several industry stalwarts – individuals who have, over the years, played major roles as mentors and ambassadors in the asset management industry – Alwyn van der Merwe at Sanlam Private Wealth and Helen Conradie at Satrix. Also, Rob Formby the COO at Allan Gray, who will pursue other opportunities.
The main corporate happenings:
Name change to Camissa Asset Management
In February 2022 Kagiso Asset Management (KAM) announced they had changed their name to Camissa Asset Management as part of a corporate restructuring. Camissa is an indigenous Khoisan word describing the area around Table Bay, which is known as the City Bowl today. It means ‘the place of sweet waters’ and is derived from the fountains, springs and streams originally found around Table Mountain.
The restructuring sees founding shareholder, Kagiso Tiso Holdings (KTH) sell its 50.1% stake in the business to a combination of KAM management and staff (74%) and Sinayo Capital (26%).
Momentum Metropolitan Holdings to acquire RMI Investment Managers’ equity stake in asset managers
Earlier this year, Rand Merchant Investment Holdings (RMIH) announced its intention to unbundle their largest shareholding in Discovery and Momentum Metropolitan, along with plans to swap its JSE listing with OUTsurance. The corporate action is also expected to see Momentum Metropolitan Holdings (MMH) acquire RMI Investment Managers – pending regulatory approval. The nine affiliate asset managers that RMI has equity stakes in are Granate, Perpetua, Sentio, Truffle, Northstar, Visio, Sefikile, Ethos and Polarstar. We have investments or allocations with Granate, Truffle and Visio.
Our discussions with these managers have shown that they do not foresee any change to investment processes, since RMI played a support and oversight role to their businesses, which they expect to continue under Momentum.
Sanlam Investments merges with Absa Asset Management
Sanlam and Absa formally combined their investment businesses. In October 2021, the two companies announced that they were joining forces to create an asset management firm. The new company will be born out of marrying Sanlam Investments and Absa Investments – which comprised Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management – and will have assets of more than R1 trillion. e.
Aluwani Capital Partners – now one of the largest majority black-owned fund managers
Aluwani acquired an additional 40% stake in the business from Momentum Metropolitan Holdings and another 20% from BEE partners. Aluwani is now majority owned by founding members and staff. With the exception of the five founders, Aluwani allocated 16% of the equity to staff and has brought in two black shareholders, Vulindela Holdings and Temo Capital, with (unspecified) minority holdings.
Senior management and investment team changes:
Public Investment Corporation – new CIO
Kabelo Rikhotso, previously an executive and fund manager at Visio Capital, took up the role of Chief Investment Officer at the Public Investment Corporation (PIC), the largest ‘fund manager’ in South Africa. Kabelo joined Visio in July 2020 and prior to that was the founder CEO and Executive Director of Royal Investment Managers for approximately four years.
Satrix – new CEO
Fikile Mbhokota, a former GEPF executive, has been appointed CEO at Satrix following Helena Conradie’s retirement at the end of last year.
New CEO for Alexforbes Investments
Ann Leepile joined Alexforbes Investments from Absa Asset Management as CEO. Ann has 20 years’ experience in the investments industry.
Allan Gray – Mahesh Cooper rejoined the firm as COO
Mahesh spent nearly 14 years at Allan Gray between 2003 and 2017, starting as a business analyst in the institutional client servicing team and rising to the role of executive director. He also headed up the institutional clients team for more than a decade. In 2018 he took up a position as COO at Perpetua Investment Managers and set up Fintech company, Pirate Code.
Momentum Metropolitan – CIO joined Eskom retirement funds
The Eskom Pension and Provident Fund (EPPF) appointed Sonja Saunderson as Chief Investment Officer. Sonja joined the EPPF from Momentum Metropolitan Holdings where she served as the Group’s Chief Investment Officer for seven years.
Ashburton – new CEO
Mduduzi Ndlovu has taken over the role of Chief Executive Officer at Ashburton Investments. The previous CEO, Sizwe Nxedlana, stepped down having been in charge since October 2019. Mduduzi is the co-founder of Argon Asset Management and joins from BlueAlpha Investment Management.
Mergence Investment Managers – new MD
Sholto Dolamo has joined Mergence as the Managing Director. He has more than 15 years’ experience in the financial services industry and joins from the Public Investment Corporation where he worked in several senior roles since 2015.
Vunani Fund Managers – CEO parts ways with the business
Snowy Masakale, the Chief Executive Officer left Vunani for personal reasons. Snowy joined the firm in September 2019 and assumed the role of CEO in March 2020.
Sanlam Private Wealth – Head of Equities promoted to CIO
David Lerche will take over as CIO from Alwyn van der Merwe who will retire at the end of March 2023.
M&G Investments – senior portfolio manager departs
In April 2022, M&G Investments announced that Marc Beckenstrater, co-manager of the M&G (South Africa) Global Funds range and co-head of Systematic Investment Strategies left the business. Marc was previously CIO of the South African business from 2009 until July 2016.
Differential Capital – new co-CIO
Sam Houlie replaced Naeem Badat as co-CIO. Sam has 26 years’ investment experience and has worked for several local asset management firms over the years.
Old Mutual Investment Group – key portfolio manager resigns
Saliegh Salaam resigned from his role as a portfolio manager for the Shari’ah funds and relocated to the USA.
Foord Asset Management – new senior appointees
Foord appointed Rashaad Tayob and Farzana Bayat in August to develop the manager’s fixed income offering, covering South African and global income and bond funds.
Key points of the article:
2022 was an eventful year in terms of corporate activity. Kagiso changed its name to Camissa, Sanlam and Absa formally combined their investment businesses and Momentum Metropolitan Holdings is likely to acquire RMI Investment Managers, subject to regulatory approval
Aluwani Capital Partners is now one of the largest majority black-owned fund managers
Lastly, several senior appointments across the local industry – including a new CIO at the PIC, women taking up senior roles, and Mahesh Cooper rejoining Allan Gray