SANNE sponsor and participate in the South Africa Opalesque Roundtable 11 January 2018

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Graeme Rate

Country Head – South Africa and Malta

During the last two years the South African hedge fund industry went through a transition to implement the new collective investment scheme regulation with now over 90% of the hedge fund assets successfully converted into regulated collective investment schemes. While fund managers have been regulated for more than 15 years in South Africa, this is the first regulation that also governs hedge fund structures. 

The new regulatory framework has unlocked opportunities for a different range of products, also on the distribution side with permitted access to retail investors, and there are still major growth opportunities ahead through the integration of hedge funds into the existing platforms for long-only unit trusts to enable seamless, large scale investments from retail investors and investment advisors.

There is also increased interest to establish "Section 65" type of funds - funds established in other jurisdictions who are looking to distribute in South Africa. This Roundtable discusses which criteria have to be met for this distribution, and also discusses opportunities and challenges around the Pan-African investment opportunity.

This Opalesque Roundtable, sponsored by SANNE Group, took place in Cape Town, South Africa, with the following participants:

  1. Udesh Naicker, Head of Hedge Funds, Financial Services Board (FSB)
  2. Richard Murray, Director, Hedge, SANNE Group
  3. Tony Christien, Divisional Director, SANNE Group
  4. Nik Michalopoulos, Chief Operating Officer, X-Chequer
  5. Jacobus Lacock, Macro Strategist & Portfolio Manager, Fairtree Capital
  6. Steven Liptz, Co-Founder, 36ONE Asset Management
  7. Kobus Esterhuysen, Director, Peregrine Securities

The group also discussed:
> What are some of the asset classes and strategies South African hedge fund managers are expanding into? 
> Which casual phrase or clause will the South African regulator FSB not tolerate in a hedge fund offering memorandum? 
> How does the industry cope with cost increases caused by the new regulations? 
> Why alternative fixed income strategies have experienced inflows 
> How do South African hedge funds access retail investors?  
> Which were some of the FSB's guiding principles for the new legislation? 
>
Pan-Africa investment opportunities & challenges 
> Is it possible to invest globally out of a country like South Africa? 

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