SANNE sponsor and participate in the South Africa Opalesque Roundtable
Graeme Rate, Country Head – South Africa and Malta
Since 2014, many institutional investors have now turned their attention toward private markets, and over time the conversation has moved from, “There are not enough asset classes to generate a real return!” to a now pro-active “What else is outside the traditional box?”, with alternatives standing out.
These discussions have changed from an intellectual curiosity about diversification through considering asset classes with low correlations to traditional markets, to a rather direct “You have to go and understand this asset class because you have to generate a real return in the long run.” Asset managers are now having to think outside the box and start putting these strategies into play.
In addition, the South Africa regulator has been very pro-active regarding private markets, allowing a maximum allocation of up to 15% in alternative asset classes for pension funds. But the reality is that of the 4 trillion rand available, only 2% sits in alternatives. The runway is seven times bigger, for everyone that decides to take advantage and go up to the regulatory limit.
This Opalesque Roundtable, sponsored by SANNE, took place in Cape Town, South Africa, with the following participants:
1. Craig French, Visio Capital
2. Graeme Rate, Country Head - South Africa, SANNE
3. Herman Sandrock, Fairtree Capital
4. Michael Denenga, Webber Wentzel
5. Monei Pudmo-Roos, Ngwedi Investment Managers
6. Pawan Singh, Sanlam Alternative Investments
7. Raphael Nkomo, Ngwedi Investment Managers
8. San-Marie Greeff, Director, Business Solutions, SANNE
The group discussed:
- The appeal of private market portfolios. New structures for private equity investment and Venture Capital Corporations.
- The growth of private debt and operational challenges.
- Hurdles for hedge funds in South Africa.
- Do asset managers generally overstate their true skill in generating pure alpha?
- Are retail hedge funds the big growth opportunity?
- Education: Why working with asset consultants and trustees has now become an imperative.
- New opportunities in: Constructive engagement and activism, portable alpha, artificial intelligence, machine learning, data science, crowdfunding and big data.
To download the full publication, please click here.
(LEFT TO RIGHT):
Raphael Nkomo, Herman Sandrock, Craig French, Pawan Singh, Matthias Knab
Michael Denenga, Monei Pudumo-Roos, San-Marie Greeff, Graeme Rate