Blue Chip Issue 81

INVESTMENT
Many of the underlying holdings will be held in the South
African offshore funds of MGIM, being the Momentum Global
Cautious, Global Managed and Global Growth Fund, all of which
have been available to South African investors since their inception
in 2008 (with a great investment track record).
MGIM offers a range of seven risk-profiled managed model
portfolios to UK advisors and their clients, available on multiple
UK domestic fund platforms.
With the expansion of the company is MGIM still able to place
the client’s goals at the centre of the investment process?
Absolutely. Our shared outcome-based philosophy has most
definitely prevailed and is very much hard-coded in to our
investment process. This is the DNA of both MGIM and Seneca. If I
have to say so, even more so than before, especially given our skill
set and range of solutions for advisors in multiple jurisdictions.
The combined SIML and MGIM funds create a comprehensive
offering for advisors and DFMs. What is this offering?
Our MAVT investment trust has gained significant traction with
DFMs effectively recognising our different approach and wishing
to boost diversification within their own client portfolios.
We have a range of inhouse-managed model portfolios for
advisors and DFMs. We provide bespoke solutions where we
partner with DFMs in all our markets (including SA, the UK and
expat regions) as their investment engine.
MGIM has a range of single-asset-class funds that have been
developed over the years to enable our multi-asset solutions and
are now all in a UCIT vehicle and will soon be available in all our
markets to advisors and DFMs. These will make excellent additions
to DFM propositions and/or client portfolios across our markets.
Mostly, we are well-positioned and resourced to partner
with more advisor firms and DFMs to help them construct
investment offerings.
Where do you see MGIM expanding in the short term?
We will continue to focus on what we do best, which is our
outcome-based multi-asset and single-asset solutions, working
in partnership with and in support of advice-led investing. So, that
means really focusing on enabling offshore investing for South
Africans where they need this in their diversified portfolios, and for
our multiple international advisors. And gaining far more traction
in the UK domestic market and building on the recent acquisition
of Seneca is key.
We will grow our investment consulting practice, and work with
trustees of large pension schemes and charities.
What are the latest trends in this market that pertain to your
business directly?
New ways of work have emerged over the past 18 months. Digital
enablement and mobile execution are important, especially from
an advisor and investor perspective. For MGIM, this means working
closely with fund platforms to enable this. Climate focus and are
also very important and we have recently launched a number of
new funds following demand from our advisor network.
Closer to home, consolidation in distribution and end-to-end
vertical integration. Is this the end of independent advice? As a
firm, we drive advice-led investments; and work with and hope
to enable investment propositions of advisors.
In multi-asset management, finding asset classes that are
uncorrelated and can deliver a balanced outcome and a smoother
journey. The traditional 60/40 portfolio split is not appropriate for
the world of today, and hence we need to truly explore alternatives.
Analytics and the ability to source information globally across
multiple data sources.
GETTING TO KNOW FERDI VAN HEERDEN
Management style?
I do as I expect others to do. I am hands-on and do what is
needed. I enable people to develop their best selves, by giving
and creating opportunities.
Do you want to be liked or respected?
I have never aspired to win a popularity contest. I wish to be
respected for what I do, how I behave, and how I lead people and
the business. And hopefully, it will show that sometimes unpopular
decisions have popular outcomes.
Personal best achievement?
Most definitely convincing my wife to be my partner, supporter
and encourager in life.
Perhaps the biggest gratification comes from the people that
I appointed and saw achieving their own best outcomes. For me,
satisfaction comes from enabling people and seeing them flourish
and be successful – like how I was given opportunities in my career.
Currently reading?
Morality, by Jonathan Sacks. It is about restoring the common good
in divided times and about a Cultural Climate Change in the world
that needs urgent attention. The rise of selfishness, loss of trust, shift
from us to me. A progressive culture of inclusivity and diversity in
business is critical for success.
Blue Chip advice?
Stay true to who you are. Promote positive stories and responsible
behaviour. The world has enough challenges.
CAREER HISTORY
Van Heerden joined MGIM in 2010 after the position as CEO of a
start-up insurance venture in Switzerland for three years. He has held
several senior executive positions in both Momentum and Momentum
Metropolitan Holdings Limited, and the FirstRand Group, both listed
companies on the Johannesburg Stock Exchange. During his career of
almost 20 years with the Group, his responsibilities included heading
up Momentum’s individual life operation, the private pension fund
administration business, as well as FirstRand’s consumer banking
division. Van Heerden has 35 years’ experience in the life insurance and
investment industries in South Africa, the UK and Europe.
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