Nedgroup Multi-Manager mulls launching equity fund using only black-owned managers
Nedgroup Investments Multi-Manager is considering launching a local equity fund next year that only invests in black-owned managers.
In an interview with Citywire South Africa, Trevor Garvin (pictured above), head of Nedgroup Investments Multi-Manager, said that the fund would focus on boutiques that aren’t receiving the recognition they probably deserve.
‘We are looking at a multi-managed domestic equity fund only invested in majority black-owned managers, especially boutique managers,’ Garvin said. ‘We want to look at fund managers like Mazi Asset Management, Vunani Fund Managers and Perpetua Investment Managers with between R10bn and R50bn in assets under management.
‘We feel there is a lot of skill in that area, but these guys are below the radar and struggle a bit because they are not well-known. We feel they need support as part of supporting transformation within the industry. The target market for this fund will be pension and institutional funds, where transformation is given quite a big weighting. We also want to blend active with passive in that fund,’ he said.
He added that Nedgroup was looking to launch a US dollar version of its R47m South African rand-denominated Nedgroup Investments Select Global Equity fund of funds, which invests in five offshore funds. Nedgroup launched the rand-denominated fund in March this year.
‘What we are going to do is launch a US dollar fund domiciled in Ireland. That fund comprises funds managed by Dodge & Cox, Goldman Sachs, Nedgroup Investments, Veritas Asset Management and Ardevora Asset Management. It also has a passive portion in the form of the Satrix MSCI World Equity Index feeder fund. At the moment, we can only take rands offshore into these funds, but the new fund will allow investors to put their US dollars offshore,’ Garvin said.
Another fund that Nedgroup Investments Multi-Manager is looking to create is an alternative investments fund that invests in renewable energy, infrastructure, music rights and private equity.
Garvin said that such a fund would have a high-income yield and provide investors with good diversification from a risk perspective.
Nedgroup is also looking to create model portfolios for Nedgroup Private Wealth International, Nedbank’s offshore private bank, in the first quarter of 2022.
‘We currently run investment solution models for them, and they want to launch similar models across the same risk spectrum with a sustainability theme running through them,’ Garvin said.
Garvin said that Nedgroup Investments Multi-Manager’s assets under management had reached about R35bn. This was an increase of close to R4bn in assets over the last year because of inflows and market growth.
He said that Nedgroup Investments Multi-Manager held 108 fund manager feedback sessions over this year with its underlying fund managers.
‘Our primary aim is to research and keep in touch with our underlying fund managers and do ongoing due diligence and monitoring.’