Stanlib aims to woo investors
STANLIB has set itself a target of getting R14bn worth of mandates from institutional investors. Stanlib generates fees for managing the money on behalf of clients.
STANLIB has set itself a target of getting R14bn worth of mandates from institutional investors.
Funds from institutional investors are vital for Stanlib as it generates fees for managing the money on behalf of clients.
Ben Kodisang, MD of the asset management division, said the plan was to position Stanlib as a natural beneficiary outside what he called the CIA (Coronation, Investec Asset Management and Allan Gray). Stanlib had done well in attracting funds from retail investors, but underperformed when it came to institutional ones.
At the end of December, Stanlib had assets under management of R473bn compared with R407bn in 2011. Out of that, about R80bn came from institutional investors, with the bulk coming from retail, Mr Kodisang said.
Year-to-date, Stanlib had won R1bn from Airports Company SA, following a pitch in August and September last year, and R1.4bn from the Natal Joint Municipal Pension Fund. Further, it won about R310m from an institutional client in Namibia and R924m from the Mineworkers Provident Fund.
“Things are starting to fall in place,” Mr Kodisang said. “Hopefully, this is an emergence of a trend.
“The mineworkers’ union pen- sion fund is the first in six years. We had nothing from labour.
“Since 2007 there was no labour money up. The plan is to manage more labour money.”
Mr Kodisang said multimanagers and consultants had shown interest in Stanlib. The company had built platforms to attract funds from institutional investors in the rest of Africa and globally.
An improvement in performance and stability at Stanlib had renewed confidence. Last year, Stanlib was presented with five Raging Bull awards for the performance of its investments in 2011.
Mr Kodisang said the other factor that was working for Stanlib was that the investment manager was highly transformed when it came to reflecting the demographics of SA. But more could be done to attract more female managers.
About 67% of the investment staff were black and 20% female.
About three years ago, Stanlib lost billions of rand in mandates from institutional investors after some staff left the group, sowing panic among institutional investors. Stanlib saw R12bn in funds from institutional investors flowing out of the asset manager in one year, Mr Kodisang said.
One of the institutional investors that pulled back was the Public Investment Corporation (PIC).
Mr Kodisang said Stanlib now managed only R2bn from the PIC. In the past, the company managed more than R5bn.
The PIC was as a key client and Mr Kodisang has had three meetings with it since he joined Stanlib in August last year. The plan was to regain the confidence of SA’s largest institutional investor.
Broadening the institutional investor base is one of four objectives Mr Kodisang has to achieve. If the business is to do well, he needs to ensure that it has the right employees and the environment is perfect for them to operate and make money for the company.
Further, Mr Kodisang has been charged with managing investment integrity and building its brand.