The company wants to boost asset allocation to instruments that may include private equity and private debt, to help diversify away from publicly listed companies.
By Adelaide Changole, Bloomberg
Sanlam plans to increase its focus on private market investments, as Africa’s biggest insurer seeks to expand into a fast-growing corner of global finance.
The company wants to boost asset allocation to instruments that may include private equity and private debt, to help diversify away from publicly listed companies and other traditional destinations for its clients’ money.
“In South Africa, we’ve still got very limited private markets,” Sanlam’s chief executive officer Paul Hanratty said in an interview. “We’re sitting in South Africa at about 6% of assets, and I think 10% to 15% is probably where we should first move to,” for asset allocations to private markets, with 30% as the long-term goal.
South Africa’s shrinking public markets are driving the case for diversification, with a shortage of listed corporate debt leaving investors over-exposed to government debt.
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