Schroders has been granted a Category 1 Financial Services Provider (FSP) licence, which will enable it to offer global investment services directly to South African clients.
The company has had a presence in South Africa since 2015 and, until now, has operated in partnership with Argon Asset Management in the institutional market. Schroders will continue to work with Argon on clients acquired through that partnership.
Developing presence
Doug Abbott, country head, South Africa, said: “Schroders has been developing its South Africa business over the past five years and we have had a permanent presence in the country since December 2015.
“After a positive reception from local investors we are very pleased to be expanding our team in the country. As a global asset management company, we have made a significant commitment to the local market and can offer a range of capabilities and funds to the offshore investment market. We plan to develop our presence further in 2019.”
In addition, Schroders will continue to work with ABSA Asset Management to provide a range of ZAR-denominated feeder funds.
Schroders is not the only firm to expand its South African output. International Adviser reported recently that Julius Baer has opened an advisory office in Johannesburg.
Fund approval
As well as an FSP licence, Schroders has had several funds approved for distribution in South Africa by the Financial Sector Conduct Authority (FSCA).
The regulator recently approved a fifth fund, the SISF Global Smaller Companies Fund.
This complements the existing approved funds: SISF Global Cities, SISF Global Equity Alpha, SISF Global Recovery and SISF QEP Core.
These are available on most South African platforms, as well as the JSE-listed Schroder European Real Estate Investment Trust.
Malaysia partnership
Additionally, Schroders Investment Management (Singapore) and Malaysia-based Maybank Asset Management Group (MAMG) have forged a strategic partnership to co-develop a range of “specialist” investment solutions for the wealth market in Malaysia.
As a result of this partnership, two discretionary portfolios will be launched in November 2018 – Global High Dividend Equity Portfolio and Global High Conviction Portfolio.
These solutions will be managed by Maybank Asset Management Malaysia, a unit of MAMG, with Schroders Singapore as the investment adviser.
Susan Soh, chief executive of Schroders Singapore, said: “With more than 200 years of investment experience, we bring to MAM Malaysia not just the best of Schroders’ global investment expertise, but also the experience of our wealth management arm in providing wealth and advisory solutions for high net worth clients.
“We believe our ability to combine the key tenets of asset management and wealth management offers a differentiated value proposition to MAM Malaysia’s clients.”
Further collaboration
As a long-term strategy, MAMG and Schroders will undertake further collaboration projects in 2019 to co-develop solutions across other asset classes, including Shariah-compliant investments and private assets.
Badrul Hisyam, chief executive of MAMG, said: “We recognise the growing demand for sophisticated, outcome-oriented global investment solutions, particularly among the high net worth community.
“We are therefore committed to delivering a range of global investment strategies to cater to their evolving financial needs, through a pioneering tie-up with Schroders.
“By integrating our strength in local wealth management with Schroders’ global investment capabilities, the resulting synergy will allow us to deepen our foothold in the Malaysian wealth market, through dedicated offerings designed to achieve investors’ desired outcomes.”
