Kela Securities partners with Mill Street Research

Kela Securities, a well-known financial services provider, has recently teamed up with Mill Street Research to address the evolving needs of local asset managers in South Africa. In a recent interview with CNBC Africa, Lesedi Kelatwang, the CEO of Kela Securities, discussed the rationale behind this strategic partnership and the significant impact it is expected to have on the market. The collaboration between Kela Securities and Mill Street Research was primarily driven by the changing regulatory landscape in South Africa, particularly the recent amendments to Regulation 28 that allow local pension funds to invest more money offshore. As a result, local asset managers found themselves facing a unique opportunity but also a challenge in managing offshore investments effectively. To bridge this gap and provide valuable support to local asset managers, Kela Securities and Mill Street Research joined forces. Mill Street Research brings a wealth of expertise and a fantastic quantitative research product to the table. With a focus on ranking global stocks based on various factors such as fundamental momentum, price momentum, and valuation, their approach offers a comprehensive top-down and bottom-up analysis that empowers asset managers to make informed investment decisions. This research product not only helps in generating trade ideas but also in validating existing strategies and optimizing portfolio performance. Kelatwang emphasized that the partnership aims to assist local asset managers by leveraging Mill Street Research's cutting-edge tools and insights to navigate the complexities of the global market effectively. The response to this collaboration has been overwhelmingly positive, with strong demand from local asset managers seeking reliable offshore investment solutions. The innovative research capabilities and strategic analysis provided by Mill Street Research have garnered praise and admiration from industry professionals, highlighting the value they bring to investors seeking opportunities in the global market. In addition to the partnership with Mill Street Research, Kela Securities is also set to launch two key products in the coming weeks, including a script lending service aimed at expanding the scope of investment opportunities in South Africa. Script lending, a widely practiced concept globally, presents a significant growth opportunity in the local market. By educating investors and pension funds on the benefits of script lending, Kela Securities aims to enhance financial literacy and facilitate greater participation in the market. Furthermore, Kelatwang shed light on the potential of derivatives trading and the upcoming launch of a new product that will enable Kela Securities to enter this specialized domain. By leveraging their expertise and securing strategic backing, Kela Securities is poised to tap into a lucrative segment of the market currently dominated by banks. The unique value proposition offered by Kela Securities lies in their ability to identify and capitalize on opportunities that traditional financial institutions may overlook due to stringent capital requirements. Kelatwang emphasized the importance of embracing volatility as an opportunity for traders, despite the inherent uncertainty associated with high market fluctuations. In the context of the current political landscape in South Africa, Kelatwang highlighted the significance of addressing perceived corruption as a key factor influencing market sentiment and investor decisions. He emphasized the importance of transparency and accountability in governance and its impact on market dynamics. Looking ahead, Kelatwang expressed optimism regarding the market potential and the opportunities that lie ahead, particularly in light of the evolving regulatory framework and market reforms aimed at attracting more listings on the Johannesburg Stock Exchange (JSE). The collaboration between Kela Securities and Mill Street Research signifies a strategic move towards empowering local asset managers and investors with innovative tools and insights to navigate the complexities of the global market effectively. As the financial landscape continues to evolve, partnerships and initiatives aimed at enhancing market access and driving growth are essential for fostering a vibrant and resilient financial ecosystem.