What We Invest In

[panel panel-style="solid-header" panel-background-color="border-light" color-transparency="0.7" width="100%25" title-size="h3" border-style="none"]The PIC started the B-BBEE Developmental Manager Programme in 2009 to transform the asset management industry by increasing black participation and the number of black investment professionals (particularly black women) in the industry. This was given effect through increased allocations to black asset managers and holding the traditional, large, established firms accountable to transformation targets within their businesses.

At inception, R64 billion was allocated across 18 mandates in the domestic listed equity and listed property asset classes - seven of these mandates were managed by black-owned firms. Over 80% of the assets were allocated to established firms.

By the end of the 2017/18 financial year, externalised assets had increased to R171.2 billion through market movement and additional flows. At 31 March 2018, R103.4 billion (i.e. 60%) of externalised assets were managed by black-owned firms across domestic asset classes.

At 31 March 2018, the Government Employees Pension Fund (GEPF) composite of external asset managers included 20 BEE asset managers, who were appointed between April 2009 and June 2017.

The programme’s success is evident in the contribution these managers have made to the performance of our client portfolios, as well as in their ability to run growing, sustainable businesses that have managed to gather additional assets. At inception on average, 55% of these managers’ assets were allocated by the PIC. By March 2018, this number has reduced to an average of 32%, as these managers acquired new clients and assets.

The BEE Developmental Manager Programme plays an integral role in providing managers with the opportunity to build a track record, which provides an opportunity for further asset growth by asset consultants and multi-managers.

Nine of the managers listed here have graduated from the Developmental Manager Programme into our established composite, having demonstrated the necessary skills in the investment process, proving that achieving transformation objectives and alpha-generation objectives are not mutually exclusive.

During the 2017/18 financial year, the Externally Managed Funds team approved an additional R6 billion to blackowned firms, after the successful implementation and allocation of the Request for Proposal (RFP). The newly appointed fixed income managers, at inception on 1 June 2017, have had a good first year as they deliver positive alpha to client portfolios.

The conclusion of the global fixed income selection process was another highlight for the Externally Managed Funds team over the financial year.[/panel]