Ninety One and Sanlam pair up

Global asset manager Ninety One has announced its plans to acquire all the issued shares in Sanlam Investment Management. In return, Sanlam will receive a 12.3 per cent stake in Ninety One. This proposed transaction is currently pending approval from shareholders and regulatory authorities in South Africa, the United Kingdom, and other relevant jurisdictions. The partnership aims to strengthen both companies' market positions and expand their global asset management capabilities. Carl Roothman, CEO of Sanlam Investment Group, sat down with CNBC Africa to discuss the details of this strategic move. Roothman highlighted that Ninety One stood out as the ideal partner due to their strong South African heritage, successful global asset management track record, and robust product offerings both locally and internationally. The collaboration between Ninety One and Sanlam will allow the latter to enhance its product set and meet the increasing demands of its clients for international investment opportunities. This move comes at a time when the South African asset management industry is witnessing heightened competition and evolving investor preferences. Roothman emphasized that the transaction aims to bring continuity to clients and ensure a seamless transition for the investment professionals within the Sanlam team. The strategic partnership will see Ninety One managing Sanlam's assets and appointing them as their primary active investment manager for single-managed local and global products. Additionally, Roothman discussed the reorganization within Sanlam's business activities to focus on strengthening capabilities in alternative asset management and solutions while maintaining a dominant position in indexation and multi-manager strategies. The industry dynamics in South Africa's asset management sector are fiercely competitive, with a shift towards consolidation to address challenges such as fee pressure and the need for scale. Roothman expressed his belief that this partnership is just the beginning of a series of consolidations within the industry to create better opportunities for clients amidst lower industry inflows and margin pressures. As the asset management landscape continues to evolve, companies like Ninety One and Sanlam are leading the way by joining forces to navigate the changing market dynamics and offer enhanced value propositions to their clients.