25 May 2023
Platform of the future
Werner Lotriet, executive head of Business Development at Glacier, addressed industry platform consolidation and the Glacier journey. Clients and intermediaries need different solutions and require better service and a better experience. Consolidation makes sense as one can share the costs through scale, modernising, simplifying, optimising, removing duplication and implementing regulation system changes. This has required a huge investment. Glacier is proud to be in a position to undertake this journey through its acquisitions and technology evolution.
Glacier’s obsession is around solutions that meet clients’ needs, not technology. Therefore, the desired client outcome determines the technology solution.
Technology for service
Building Glacier’s investment administration platform (IAP) of the future involves partnering with SS&C who will modernise the backend and consolidate the systems upon which Glacier’s products currently run.
Technology for experience
This means modernising the front end which includes all of Glacier’s portals, namely, the Intermediary Web, Client Web and Investment Hub.
Top of mind in this strategy are clients’ and intermediaries’ requirements for self-service and ease of doing business with us.
Panel Discussion 1
Following this, Preanka Naidoo (Glacier Invest) kicked off the day’s panel discussions with Rupert Hare, CFA, CAIA (Prescient Investment Management) and Marius Oberholzer (STANLIB) who explored whether multi-asset, high-equity funds really consider all asset classes. Managing risk is important, and STANLIB believes that access to the full suite of asset classes is critical. Prescient also trades toward asset classes using various indicators so they can move quickly. Both are keen on exposure to hedge funds. Another lever to use is lower fees, which can save clients’ money and generate better returns.
An overview of hedge fund strategies
JP Matthews (Matrix Fund Managers) provided an overview of different hedge fund strategies and how they allow for a much wider mandate that enables generating returns whether markets go up or down; profit from very small changes in ; and have a very wide application to investment styles.
JP Matthews - Matrix Fund Managers.pdf
Panel Discussion 2
Luke McMahon (Glacier Invest) facilitated a panel with Wessel Joubert, CFA (Oystercatcher Investments) and Matthew Thomson CA(SA) CFA (Peregrine Capital) on how to apply hedge fund strategies in practice. Luke also demonstrated how hedge funds reduce volatility in the Glacier Invest Real Income Solutions – accessible via living annuities.
Using hedge funds to reduce volatility in the Glacier Invest Real Income strategies
In his presentation, Luke McMahon (Glacier Invest) demonstrated how hedge funds help preserve capital, reduce sequence risk and contribute to real growth in the Glacier Invest Real Income Solutions – available to the Glacier Living Annuities. Since launching these solutions, hedge funds contributed around 20% of the overall performance whilst significantly reducing the volatility.
Luke McMahon - Glacier Invest.pdf
Panel Discussion 3
In this discussion, moderated by Shawn Phillips (Glacier Invest), Madalet Sessions (Denker Capital) and Warren Riley (Bataleur Capital) delve into the geopolitical challenges that form the backdrop and where opportunity in equities can be found.
Panel Discussion 4
Annalise De Meillon-Muller, Monique Groenewald and Adele van der Schyff (all at Glacier by Sanlam) focused on case studies around breaches in TCF and ethics.
They touched on how organisational ethics, and in particular business ethics, should be applied in the day-to-day operations in the industry with reference to specific case studies where these were breached. Among others, the case studies included:
- Breach of POPI. This can happen easily and are often the result of human error, where personal information is sent to the wrong person or organisation.
- Material failure in the duties of a key individual. This could lead to debarment and hefty fines.
- Identity fraud. This case centres on the illegal use of ‘runners’ – when an FSP misrepresents to in insurer as rendering services while someone else is actually doing the work. The consequence of this is that the FSP licence can be withdrawn.
- Fraud issues in RE exams. These include:
- Buying fake or forged exam certificates.
- Unlawfully altering exam certificates.
- Candidates paying people to impersonate them to write the exam.
- Bribery of exam officials to improve results.
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