A joint venture between Zamani and Templeton seeks to ensure skills transference in portfolio management, reportsMadeleine Wackernagel
BLACK economic empowerment deals in the financial services sector are not unusual, but one involving a foreign company and a purely focused asset management venture is a first.
Together, Franklin Templeton Group, via its Templeton arm, and Zamani Financial Services, have set up the Zamani Partnership, with the aim of achieving real skills transference in a sector desperately lacking in capacity, as well as tapping into lucrative government contracts.
Sydney Maree, chief executive officer of the new company, says: “The financial services area is one where the previously disadvantaged communities couldn’t play a part. That is now changing, albeit very slowly. We wanted to find a partner who could ensure the effective transfer of skills and technology and Franklin had the right vision.
“It’s vital that we help build the country; I’ve come back from many years in America and want to give something back.”
Cecil Callahan, who has been seconded from the United States office of Franklin Resources, points out that the lack of opportunities in this field is not only a South African problem. “In America, there are only 60 African-American portfolio managers. Awareness of stock markets and financial instruments is poor in some communities, so we have to start at a school level.
“Now that South Africa is back in the global community, it will be judged in that context. The pressure is on to show that South Africans too can manage money. And it’s not just a problem for the previously disadvantaged communities; training and education in general are not up to scratch.
“Portfolio management is a very new area and the feedback I’ve had from academics is very encouraging. I know at least 10 American professors who would be very keen to help out, in addition to local experts.”
Callahan is already applying his theories to the Zamani principals – Monk Goocin and Zweli Hlongwane. They are both studying the Chartered Financial Accountants programme and, says Maree, their on-the-job training becomes real from the moment the company starts managing assets. But there is no time limit on the joint venture; at this stage it is expected to last between two and five years, whereupon the partnership will be dissolved and Zamani will operate in full competition with Templeton.
Zamani, the majority partner, is targeting public sector funds, including government, parastatals and unions, and believes R1,5- billion is within its sights in the first 12 to 18 months.
Says Goocin: “Government policy is changing to benefit black empowerment groups – but only on merit. So it makes sense to link up with a strong global player with the necessary expertise and experience to ensure we play a part in making the administration of public service pension funds more effective.”
The US group, with a total $200-billion under management, has been operating in this country for the past two years and has chalked up investments worth $1,5-billion in the South African capital markets, says John Phillips, who heads the local operation.
“Foreign capital is vital for real empowerment,” says Callahan. “It must be competitive.” But Templeton did not get involved just because of the potential for government contracts, says Maree. “This is not just a door opener for them; the skills transference aspect is most important.”
Adds Callahan: “It’s just good business to work with local people.”
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