Incubation programmes and the idea of engaging “beyond the mandate”..!

The concept of incubation mandates or developmental mandates awarded to emerging asset managers has been around for some time. What started out as a really innovative idea, has perhaps morphed into something less than what we had envisaged – Why.? There are many views and much criticism of these programmes and on the actual benefit of these incubation programmes to the emerging asset managers which participate.

Once a manager is in a programme… Then what.? Is it a case of “see you every 3 to 6 month for a report back”… Good luck.!

Motswedi believes that simply pulling the mandate after a few years – when the asset manager has not achieved predetermined milestones is damaging to the managers and not achieving what we set out to do in the first place. There is a place for these programmes and yes not all managers are going to succeed, but we need to assist managers with the tools which will give them the highest chances of success.

When initiating an incubation programme, all parties; Asset Owners, the asset managers and the programme manager, enter into a relationship which should clearly articulate the ideal outcomes of the programme, the level of active engagement – investment and business matters and the willingness for discussion around new ideas which may sustainably grow the asset manager in new ways.

Motswedi believe that the ingredients of a successful asset management business come from a combination of both, the investment pedigree of the professionals and the business acumen of the professionals.

Industry participants and asset owners have to relook at how we see the face of the asset management industry changing.

We are always excited to hear from you.

Kind regards,

Mark Davids

Investment Strategy and Distribution

Cell: 083 222 9913

Tel: (010)110 8768

Fax: 011 656 1165

Email: davidsm@motswedi.co.za

Website: www.motswedi.co.za