Asset allocation is a game changer says Volantis CEO

Johannesburg – Black-owned and managed asset management firm Volantis Capital has received a big shot in the arm after securing its first asset allocation.

The start-up this week secured its first allocation of funds to invest on behalf of a large retirement fund. The R200-million mandate came via 27four Investment Managers, a leading independent South African-based provider of pooled multi-manager and customised fiduciary management solutions.

Sisa Mayekiso, the CEO of Volantis Capital, said the allocation from the retirement fund comes after Volantis completed the extensive process of being licensed to trade in South Africa’s investment market.

“This [first allocation] is a great sign of confidence in our abilities. Having landed our inaugural mandate, it will go a long way towards reassuring other potential investors that they can entrust their mandates with us,” said Mayekiso.

“It’s hard to establish a track record without support, and we are therefore very grateful for this, our first client, for their faith in us. I would encourage other asset allocators and pension funds to take a closer look at us.”

Volantis’ investment strategy combines two alpha sources – interest rates and credit risk management.

The company is also investing heavily in technology.

The asset management industry in South Africa is dominated by white-owned companies with few opportunities going to black companies. Scale is a challenge for black managers, while there are new firms launched regularly, they struggle to gain critical mass due to lack of support from trustees, institutions and asset consultants. According to annual BEE.conomics Transformation in SA Asset Management Survey published by 27four Investment Managers, there are currently 48 black asset management firms in South Africa and they manage only 10% or R490.3-billion of the R5-trillion industry.

Taquanta Asset Managers, Aluwani Capital Partners, Mazi Capital, Mergence Investment Managers, Argon Asset Managers and Vunani Fund Managers are regarded as the foremost black-owned asset managers in the country. Mayekiso said the company has big plans to be a significant player in the highly competitive industry.

“Our vision is to be recognised in Africa as a leading investment management firm, one that consistently meets our clients’ investment goals in a repeatable and sustainable manner,” he said.

“We are confident that our inaugural client’s investment is the springboard to great things for our clients, and for us.”

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