Inclusive, intentional and innovative diversity for asset growth

The investment industry has changed, and continues to do so

Asset management is a significant economic pillar in countries across the world. It is a wheel that is constantly turning, driving investments, company efficiencies and enterprise and overall economic growth. It is also an extremely diverse industry, with assets managed across all asset classes.

This underlines the importance of diversity in asset managers and marrying synergy with diversity in their asset portfolio management. This is something Mazi Asset Management (Mazi) does particularly well, and its culture is steeped in diversity of thought to realise differentiation in the marketplace.

This is mirrored in two of its Multi-Asset portfolio managers Kopano Makhu and Shaun Bruyns, both of whom entered the financial services sector from different backgrounds and perspectives, the former as a result of movement within a company and the latter as a result of interest in his studies evolving into the curiosity that is needed to be a successful fund manager.

Explains Makhu: “My applied maths and statistics background came in handy when I was moved into the investment division at my first company, a global reinsurer. Spending time looking at fixed income investments was the genesis for me, 17 years ago.”

“I studied finance and economics and was curious about how asset prices correctly reflected fair value over the medium to longer term but provided opportunities through mis-pricing in the shorter term. Our industry demands a curious mind as Mr Market creates opportunities daily and being able to exploit this was the bug that bit me,” says Bruyns.

Opportunities in unexpected places

Mazi is a company that recognises that unique perspectives and varied skill sets are essential to achieving success. Its inclusive, intentional, and innovative approach to investment management has provided consistent high impact returns for its clients, uncovering opportunities in unexpected places and this, it believes, is what gives it a competitive edge in the industry.

Mazi has broadened its toolkit over the years, from only using one product — listed equities — to having multiple products including global and African equities, fixed income, listed property, shariah, and hedge funds. This broad offering and Mazi’s foray into multi-asset class funds, provides clients with the opportunity to participate in funds across the risk-reward spectrum, while also offering diversification benefits and a consistent, stable return profile.

For example, Mazi’s Market Neutral and Long-Short Hedge Funds are designed to outperform cash and are conservatively managed, with key differentiators being flexibility, leverage, and ability to short-sell. Makhu and Bruyns co-manage the Mazi Balanced strategy, an offering which is used by a broad range of institutional and retail clients. The Mazi Balanced strategy has achieved a three-year annualised performance of 9.76%, outperforming the benchmark by 0.27%. The fund’s strong performance is attributed to rigorous bottom-up fundamental market analysis that drives its security selection, as well as its strategic asset allocation and a long-term, top-down anchor based on return objectives and risk constraints.

“Good portfolio managers have a disciplined approach,” says Bruyns, “and the business case must always prevail. All asset managers are trying to do the same thing; to produce alpha for our clients at minimal risk. I would challenge anyone, however, to find a team as diverse as ours at Mazi, which puts egos at the door and gets inclusive views across the entire team.”

“Our views encompass environmental, social, and corporate governance (ESG), which has become established in the market as an important part of the reporting process and integral to sustainability,” continues Makhu. “The investment industry has changed and continues to do so. There are higher levels of innovation, and a broader range of options available to clients, while there is now a dual requirement to deliver both financial and impact returns.

“Management of listed investments have a critical role to play, both directly and indirectly in the economy, and through the peaks and troughs of the economic cycle.”
— Rebecca Haynes