STANLIB Multi-Manager Alternatives

Emigrating

After eight years with the Group, of which the past three were as Head of Alternative Investments at STANLIB Multi Manager, Chris has

resigned to emigrate to the Netherlands. We are sorry to see Chris leave but are grateful for his contribution to our business and are

comfortable that we are able to continue providing an unrivaled alternative capability for our clients.

 

Collective decision-making

During Chris’s time with us, we bolstered the resources within our alternative’s capability, with the team growing to include three

additional portfolio managers. This team is supported by the wider investment team as well as business support staff. A policy of collective

decision-making was applied in order to bring the alternatives capability in line with the STANLIB Multi-Manager team-based investment

approach. This approach is core to our business and one of the pillars of our investment philosophy. We believe in leveraging off the

collective wisdom of our diverse people, thus allowing us to debate and review investment decisions from various angles. An added benefit

is more seamless business continuity in the event of an individual leaving and the reduction of key-man risk.

 

STANLIB Multi-Manager Alternatives Team

 

Ongoing Portfolio Management

In the implementation of investment decisions, we follow a thematic process to identify opportunities that will benefit from a tailwind over

the next 10 to 20 years, thereby providing sustainable long-term returns. To ensure a thorough understanding of the risk and correlation

of different opportunities, we assess the fundamental long-term drivers of returns for these assets.

By their nature, alternatives are less liquid than traditional assets and typically have a longer investment term. This is reflected in the lower

turnover rate of the underlying holdings within alternatives portfolios, relative to traditional asset class funds. To this end, the funds and

managers we have selected will in most cases, be held for the next decade with returns ‘baked into’ the investments.

The implication is that the departure of a portfolio manager should have little or no impact on a fund’s returns in the short-to-medium

term. To the extent that we continue to use our team-based investment process, a departure should not impact returns even in the longer

term.

 

Alternative Assets Investment Committee

The Alternative Asset Investment Committee governs the investment decisions made across all our alternative portfolios. This committee

meets at least quarterly and considers all aspects of the fund range. The committee includes four independent – not employed by STANLIB

Multi Manager – senior individuals with extensive experience in alternative assets.

Conclusion

 

We are looking for a suitable replacement for Chris but in the meantime, given that the process is team-based, we would like to assure

you that our alternatives capability remains well managed and cared for.

 

Our alternatives team will continue to explore and research the private markets opportunity set for a broader investor base by offering

diversification across different private assets. These include private debt and equity, infrastructure, real estate, and hedge funds.

If you would like to discuss this in more detail, please do not hesitate to contact me.

 

Yours sincerely

Joao Frasco

STANLIB Multi Manager – Chief Investment Officer