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Sanlam Limited - Sanlam Multi Manager and Edge: Capitalizing on Hedge Fund
Growth Prospects
Sanlam Limited
JSE Share Code: SLM
ISIN: ZAE000028262
Sanlam Multi Manager and Edge: Capitalizing on Hedge Fund Growth Prospects
Fund of Hedge Funds are investment vehicles that combine specialist hedge fund
managers and investment strategies, resulting in substantial reduction of the
risks associated with single hedge funds.
Hedge funds have become increasingly popular both internationally and in South
Africa, mostly due to the potential of this asset class to offer investors
smooth and positive returns even during periods of poor financial market
performance. Now, Sanlam Multi Manager, an institutional asset manager, and
Edge Capital, a focused hedge fund specialist, have joined forces to create ESP
Institutional Fund of Hedge Funds (ESP) - reducing the risks associated with
hedge fund investing.
"The main advantage of a fund of hedge funds compared to a single hedge fund is
portfolio risk reduction", says Hendrik Pfaff, MD at Sanlam Multi Manager. "The
combination of many leading managers and strategies dilutes single manager risk
and increase diversification benefits. Efficient management of a fund of hedge
funds requires specialist expertise and resources, and it is important to
analyse every aspect of each fund manager, not only the investment process."
According to St John Bungey of Edge Capital, Fund of Hedge Funds offer
significant diversification benefits. "When compared to traditional asset
classes such as equities and bonds, the low correlation of returns means that
hedge funds are often able to provide a substantial reduction in portfolio risk.
According to the international Tremont Hedge Fund Index, volatility (risk) of
typical Fund of Hedge Funds varies between 7-10% versus the 15-20% for equity
markets".
ESP is managed by a team with substantial investment management, multi
management and hedge fund expertise and is backed by strong infrastructure and
support. The team continuously monitors various aspect of the fund including
the managers, mandate compliance, fund construction and administrative issues.
"We believe that ESP will satisfy the appetite of sophisticated institutional
investors who want to invest in this asset class", says Bungey.
ENDS
Issued by: Sanlam Multi Manager Portfolios
Date: 30 January 2004
For more information, please contact Hendrik Pfaff at 021 950 2600.
Sanlam Multi-Bestuurder en Edge kapitaliseer op verskansingsfonds
groeivooruitsigte
Verskansingsfonds van fondse is beleggingsmediums waardeur spesialis
verskansingsfondsbestuurders en verskillende beleggingstrategiee gekombineer
word om "n aansienlike vermindering in die risiko van "n enkele
verskansingsingfonds te weeg te bring.
Verskansingsfondse is besig om toe te neem in gewildheid in beide Suid-Afrika en
die res van die wereld, hoofsaaklik as gevolg van die vermoe van hierdie
bateklas om beleggers stabiele en positiewe opbrengste te bied, selfs wanneer
tradisionele finansiele markte negatiewe opbrengste lewer. Sanlam Multi-
Bestuurder Portefeuljes, "n institusionele batebestuurder, en Edge Capital, "n
verskansingsfonds spesialis, het saamgespan om die ESP Institusionele Fonds van
Verskansingsfondse (ESP) op die been te bring. In die proses word die risiko
wat met verskansingsfonds investering vereenselwig word, verminder
"Die groot voordeel van "n verskansingsfonds van fondse in vergelyking met "n
enkel verskansingsfonds, is die vermindering van die portefeulje se totale
risiko", se Hendrik Pfaff, besturende direkteur van Sanlam Multi-Bestuurder
Portefeuljes. "Die kombinasie van verskeie toonaangewende fondsbestuurders en
strategiee verwater enkelbestuuder risiko en verhoog diversifikasie voordele.
Die doelmatige bestuur van "n verskansingsfonds van fondse vereis spesialis
kundigheid en dit is belangrik om elke aspek van elke fondsbestuurder te ontleed
en nie net hul beleggingsproses nie.
Volgens St John Bungey van Edge Capital bied verskansingsfonds van fondse
aansienlike diversifikasie voordele. "Wanneer "tradisionele bateklasse soos
aandele en vaste rentebeleggings met verskansingsfondse vergelyk word,
veroorsaak die lae korrelasie van opbrengste "n aansienlike vermindering in die
portefeulje se risiko. Volgens die internasionale Tremont
Verskansingsfondsindeks is die volatiliteit (risiko) van die tipiese
verskansingsfonds van fondse tussen 7-10% teenoor die 15-20% van aandelemarkte".
ESP word bestuur deur "n span met aansienlike beleggingsbestuur, multi-bestuur
en verskansingsfondsvaardighede en word gerugsteun deur "n gevestigde
infrastruktuur en ondersteuningsnetwerk. Die span monitor verskeie aspekte van
die fonds op "n deurlopende basis, insluitend die bestuurders, mandaatnakoming,
fondskonstruksie en administratiewe aangeleenthede.
"Ons glo dat ESP die behoefte van die gesofistikeerde institutionele belegger
wat in hierdie bateklas wil bele, ten volle sal bevredig", s? Bungey.
Uitgereik deur: Sanlam Multi-Bestuurder Portefeuljes
Datum: 31 Januarie 2004
Vir meer inligting, kontak gerus vir Hendrik Pfaff by 021 - 950 2600
Contact Details
Sanlam Multi Manager Portfolios is a division of Sanlam Investment Management
(Pty) Ltd., an investment manager approved by the FSB.
Physical address: 55 Willie van Schoor Avenue, Bellville, 7530
Postal address: Private Bag X8, Tyger Valley, 7536
Edge Capital (Pty) Ltd., is an investment manager approved by the FSB.
Physical address: Edge House 3, Heuwelkruin Close, Tyger Valley, 7536
Postal address: P.O. Box 4188, Tyger Valley, 7536
Date: 05/02/2004 05:39:41 PM
Produced by the JSE SENS Department
