Sanlam has announced the appointment of Ninety One as its primary active investment manager for single-managed assets, marking a strategic move to enhance its South African and offshore product offerings. In return, Ninety One will gain preferred access to Sanlam’s extensive distribution network.
In a joint statement yesterday, Sanlam’s chief executive, Paul Hanratty, underscored the synergistic potential of the partnership. “By leveraging their complementary competencies, Sanlam Investments will be strengthening its South African and global position as a multi-skilled asset manager,” he said.
Hanratty highlighted the broader benefits of the relationship, adding: “Coupled with Sanlam Investments’ market-leading expertise in passive and alternative asset classes, as well as multi-managed solutions, the relationship is set to unlock value for its clients, distribution force, and shareholders.”
As part of the deal, Ninety One will assume ownership of Sanlam’s active asset manager, Sanlam Investment Management (SIM). Additionally, it will take over the investment management responsibilities for Sanlam Investments UK, which includes third-party assets, balance sheet assets, and the investment professionals managing these portfolios.
The agreement encompasses a total pool of assets worth about R400 billion (as of 30 September 2024), with some 80% of these assets managed in South Africa.
Hendrik du Toit, Ninety One’s founder and chief executive, highlighted the alignment of the two companies’ strengths. “This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders. We are making a substantial investment in the future of South Africa,” he said.
The collaboration extends beyond asset management. Sanlam will become an anchor investor in Ninety One’s private and specialist credit strategies.
In recognition of the value transferred, Ninety One plans to issue shares to Sanlam, granting it about 12.3% ownership in Ninety One’s share capital. Despite this, Ninety One will maintain its independence, with staff remaining the largest shareholder.
Regarding the status and next steps, Ninety One and Sanlam stated that their boards have aligned on the key principles and outlined the steps needed to finalise the transaction agreements. These agreements remain subject to shareholder and regulatory approvals.
“The parties’ intention is to enter a relationship for at least 15 years, though both Ninety One and Sanlam believe this will be a relationship that will endure for the long term,” the statement noted.
