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Published on 2024-04-07 20:38:05
The latest findings from the 2023 Alexforbes Manager Watch Survey of retirement fund investment managers reveal some interesting insights into the industry.
Ninety One has maintained its position as the largest asset manager, with a 6% increase in assets further solidifying its lead. Stanlib holds onto second place with a similar 6% asset increase, while Coronation has moved up to third place with an 8% increase in assets. Allan Gray has leapfrogged Sanlam Investments and Old Mutual Investment Group to claim the fourth spot.
One of the notable trends highlighted in the survey is the growing popularity of multimanager assets, as more investors shift away from single-manager portfolios. Total assets under management saw a 12% increase in 2023, reaching R7.8-trillion. The top 10 managers now collectively hold 62% of the total assets.
In the Global Best Investment View category, a significant number of managers are increasing their offshore allocations. Thirty-four out of 45 managers have raised their global exposure to over 30%, with 11 surpassing the 40% mark. Abax Investments stands out as the best performer in this category, achieving a return of 17.3%. Global equities played a significant role in this growth, particularly foreign shares like Google, Shell, and BMW preference shares.
Aeon Investment Management is another fund that has increased its global exposure, reaching 40%. The fund saw positive contributions from companies like Alphabet, Amazon, Banco Santander, Microsoft, and UniCredit, while others like British American Tobacco (BAT), Impala Platinum, and Anglo American had a negative impact.
In the local market, Old Mutual sees potential value in South African equities despite upcoming elections. The company’s head of equities research, Meryl Pick, believes that there are green shoots emerging in certain local sectors. Old Mutual is cautiously optimistic about the outlook for South Africa, particularly due to reduced electricity blackouts and lower interest rates.
Allan Gray has taken an overweight position in rand hedge stocks like Mondi and Anheuser-Busch Inbev to hedge against potential erosion in local purchasing power. Dan Brocklebank, from Allan Gray’s offshore partner Orbis Investments UK, emphasizes the importance of diversification and exploring global opportunities to mitigate risks associated with local economic and political uncertainties.
Investing offshore provides access to a broader range of sectors and companies not available in the local market, offering South African investors a chance to benefit from global market trends. As South Africa prepares for the 2024 elections, experts recommend careful asset allocation and diversification to navigate the uncertainties ahead.
In conclusion, the retirement fund investment landscape is evolving, with shifting trends towards multimanager assets and increased offshore allocations. Fund managers are adapting their strategies to capitalize on global opportunities while also keeping a close eye on local market developments. As investors navigate the changing landscape, a diversified and well-informed approach is key to success in the ever-changing investment environment.
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