27four noted in ‘Asset managers on the way up’

Orapa – In a recent article we looked at which of the smaller unit trust managers are showing convincing signs of growth. Which of them, we asked, might grow into the big players of the future?

It is however also worth looking at which asset managers are already in that transition – the “next tier” if you like. These are fund managers that have already established a reputation in the market and a broader product offering.

They are an interesting group because they find themselves in a compelling competitive position.

“We compete with both small and large managers, because we are small enough to have manoeuvrability and large enough to be taken seriously,” explains chief executive officer of PSG Asset Management Anet Ahern. “We believe that the largest managers are most at risk of losing assets to us as their abilities to take meaningful positions in mid and smaller cap stocks becomes ever more constrained.”

Chief Investment Officer at Kagiso Asset Management, Gavin Wood, takes this point further:

“Given that we are medium-sized and given that the South African equity market is so concentrated in large cap stocks, I would argue strongly that most of our larger competitors have less potential to out-perform in equities,” he says. “Even if we only had equal skill, we have significantly more choice in the stocks we can select and we can take meaningful stakes in small- and medium-sized companies.”

Read the full article on Moneyweb HERE.

Alternatively, download a PDF of the article HERE.