Blue Chip Issue 86

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BLUE CHIP BLUE CHIP On the money Making waves this quarter Glacier investments and illiquid assets GLACIER INTERNATIONAL MAKES OFFSHORE INVESTING EVEN EASIER Investors can now make an investment using foreign currency – and there’s no need to have an offshore bank account or complete copious amounts of paperwork. This is made possible by Shyft, a forex payment app that makes offshore investing so much easier. Now, investors simply need to transfer their investment in rands from their South African bank account onto Shyft, convert it to the required currency (US dollars, Australian dollars, euros or pound sterling) and make the forex payment into the offshore investment. Shyft is free to use with no monthly fees. The app also offers some of the best and cheapest foreign exchange rates in the market, with low transaction fees. Contact your Glacier International representative for more information. Glacier International is a division of Sanlam Life Insurance Limited, a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43). SA’S LEADING INVESTMENT CONFERENCE The Investment Forum is South Africa’s premier gathering of investment managers, discretionary fund managers, multi-managers and financial advisors/wealth managers. Now in its 13th year, it continues to focus on thought leadership content spanning the world of investing. There is no “product push” at the conference, thus allowing delegates to glean insights impacting investment themes across the world. The world continues to be at strife with itself and wherever you look, uncertainty prevails on all fronts. Navigating this uncertain world, trying to ensure that investors remain invested throughout this cycle, is virtually impossible with distractions from all directions. The brightest minds from the investment management industry will offer their insights on the global macro-economics at play – where inflation is public enemy number one, the geopolitical landscape that DEMAND FOR ILLIQUID ASSETS SURGES is tense and fragile, anticipated company earnings results and where these are headed across all sectors, as well as insights into where these investment managers are unlocking valuable investment opportunities across currencies, geographies and asset classes. Register for the Investment Forum 2023 where the conference will unpack “The Butterfly Effect – When nothing is certain, anything is possible!”. Seats sell out quickly, so go to www.theinvestmentforum.co.za and register now. Professional investors and family offices are increasingly turning to illiquid assets, including private debt, in response to the combination of ongoing volatility and rising interest rates and inflation, new research shows. The study from Aeon Investments with family offices, controlling more than .4-billion assets under management, found 90% expect increased demand from investors for illiquid assets over the next two years. Around 12% predict demand will increase dramatically. The research found that the key reason is their need to protect from macro uncertainty with private debt investments often offering strategies providing a floating rate coupon which has the potential to be a natural hedge against inflation. Family offices also highlighted the fact that private debt offers new investment opportunities and a growing array of assets as well as its role in the diversification of portfolios and access to ESG benefits in sub-asset classes in private debt. Aeon’s study found widespread agreement that the highest quality private debt instruments provide safety. Almost all (99%) questioned pointed to the combination of attractive yields and structural protections such as debt covenants and credit enhancement as offering a high degree of safety. That is being bolstered by the expectation of improved regulation in the sector – more than a quarter (26%) expect dramatic improvements in regulation for private debt over the next two years while 52% expect slight improvements in regulation. Evgeny van der Geest, managing director, Aeon Investments says: “Ongoing volatility coupled with rising interest rates and inflation has highlighted the attraction of illiquid assets including private debt, and investors expect demand to grow. There is growing recognition that private debt can deliver attractive yields and high levels of protection which are very valuable in the current macro conditions.”

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