Carl Roothman | Adapting to a shifting investment landscape

The asset management industry is at a turning point. Structural shifts in capital allocation, regulatory changes, and a heightened focus on sustainability are redefining how investors deploy capital. As stewards of capital, our responsibility remains – to provide good financial returns to our clients while driving impact for people, our country and our continent.

Sanlam Investments is sharpening its focus on scalable, high-impact investment solutions that align with these changes – expanding our indexation strategies, strengthening our multi-manager platform, working to build Africa’s largest alternative asset management business, and consolidating our Active Management business through our partnership with Ninety One. And in all this, impact investing remains central to our strategy, ensuring that capital is directed towards both strong financial returns and making a real, sustainable difference in the economies in which we operate.

Satrix: growth in indexation strategies

We continue to see strong demand for cost-effective, rules-based and outcome-driven strategies. As investors prioritise efficiency and transparency, the demand for scalable indexation solutions is accelerating.

We are committed to expanding our indexation business through Satrix, ensuring our solutions remain cost-competitive and globally aligned. We have implemented various initiatives within the business which continue to drive significant flows and we will continue to implement on our strategy – expanding our product suite, increasing our market share and ensuring access to indexation investments at a low cost.

Multi-Manager: expanding global reach

Our multi-manager business continues to experience strong growth, driven by increasing demand for diversified, globally integrated investment strategies. As this momentum builds, we remain committed to investing in and expanding our capabilities through Graviton and Glacier Invest, ensuring we deliver high-quality multi-managed solutions.

With more capital flowing offshore, we are evolving from a domestic multi-manager to an internationally competitive platform. Strengthening our global capabilities will ensure that investors benefit from broader access to opportunities, enhanced diversification and a more resilient investment offering.

Alternative Investments: scaling high-growth opportunities

Alternative assets are becoming an essential component of institutional portfolios, with increasing allocations toward private equity, private debt, real estate and infrastructure investments. At Sanlam Investments, we are accelerating our goal of building the largest alternative asset management business across Africa and select emerging markets.

Private equity: driving economic growth and job creation

• Mid-Market Private Equity Fund I – We are on track to fully invest the R3.1 billion raised in this vehicle this year, driving job creation and economic inclusion in South Africa by investing in businesses with high-growth potential.

• Pan-African expansion – In addition to our recent shareholding in Alphacode Venture Partners, a venture capital firm, we are launching a secondaries strategy to acquire quality, mature assets across the continent and select emerging markets. This will provide investors with unique access to increased diversification, lower risk, and shorter investment durations in these economies while helping to create a market for liquidity.

Private debt: unlocking capital for high-growth sectors

• With banks continuing to face limitations in private lending capacity, we are scaling our private debt capabilities to bridge financing gaps, including for the small and medium enterprises that will boost the economy.
• We have integrated Sanlam Specialised Finance (SanFin) into our alternatives’ business, providing clients with access to strong credit capabilities, proprietary deal origination, and robust investment processes – enhancing opportunities in private credit and structured finance.

Real estate: investing for the “missing middle”

• Our Property Impact Fund, launched last year, focuses  on supporting South Africa’s “missing middle” by increasing access to affordable housing, student accommodation, healthcare and education facilities, while also supporting the development of rural and township retail infrastructure. By directing capital towards these essential services, the fund aims to drive economic inclusion, create jobs, and foster sustainable urban and rural growth.

Infrastructure and climate finance: mobilising capital for sustainability

• In addition to our ongoing investment in infrastructure across the country and the broader continent, our partner Climate Fund Managers continues to pioneer climate-focused financing and innovation. Climate Investor 2 is addressing water, oceans and waste challenges in developing economies, while Climate Investor 3 is advancing green hydrogen development and supporting the just energy transition in South Africa and Namibia. Our goal is to raise US$2 billion for these initiatives through the SDG Namibia One and SA-H2 Funds over the next three years to help accelerate long-term sustainable growth on the continent.
• In partnership with the Sanlam Group, we are exploring solutions which focus on ocean conservation and the development of the blue economy across Africa.

Active Management: a seamless transition for growth

In November last year, we announced our partnership with Ninety One as our primary active investment manager for single-managed local and global products. This strategic transition is progressing, with a clear focus on ensuring a seamless experience for our investors. By aligning with a world-class investment firm, we are enhancing our international product capabilities and expanding access to global investment opportunities.

As we move through this transition, our priority is stability – maintaining strong performance across our active strategies while keeping client interests at the forefront. In 2024, our Active Management (SIM) business delivered strong investment performance as a collective, with particularly robust performance in the Fixed Income, Absolute Return, and Equity portfolios. This momentum sets a solid foundation for 2025, and we remain committed to providing clients with high-quality portfolio management and continuity as we navigate this phase.

Conclusion

With a clear strategy and a strengthened platform across indexation, multi-manager, alternative investments, and an enhanced international product offering through our partnership with Ninety One, Sanlam Investments is ready to meet the demands of a shifting landscape. Sustainability remains our guiding focus as we scale, innovate and create lasting value alongside our investors.

*Carl Roothman is CEO of Sanlam Investment Group.