MIANZO ASSET MANAGEMENT

Celebrates 12-Year Anniversary while aiming to be a responsible investor

In August last year, Mianzo Asset Management celebrated its 12year anniversary which coincided with the company attaining its first carbon footprint certificate.

After starting 2022 with approximately R12 billion in assets under management (AUM), Mianzo continues to grow its assets and its offerings to its clients. The business recently included their Money Market and structured products to their investment suite.

This key milestone in Mianzo’s journey as a company was achieved at a time when global markets were facing headwinds due to the RussiaUkraine war, which broke out on 24 February last year.

The war has caused market volatility and disrupted the supply chains of the energy and food markets, driving up prices and the cost of living across the world.

In response to rising inflation, central banks around the world have hiked interest rates to fight off inflation, raising fears that global economy will slide into a recession.

Mianzo is a Cape Town-based, blackowned asset manager that was established in 2010.

Mianzo is one of 61 black asset managers operating in South Africa that are managing about R1.3 trillion, according to a 2022 BEE.conomics survey. These companies manage and invest funds on behalf of their clients, mainly pension funds and other institutional investors.

Mianzo has not only grown assets under management, but it is also contributing in the fight to combat climate change by reducing greenhouse gas emissions.

Over the last five years, the World Economic Forum has consistently listed climate change as the number one risk facing organisations. Climate change can affect countries in so many ways.

It contributes to adverse weather conditions such as floods, hurricanes, heatwaves, and droughts. These adverse weather conditions are causing damage to infrastructure and food sources, displace populations, and result in farmers having land that is no longer arable.

Climate change is also leading to rising sea levels, putting at risk about 40% of global population living near the coast.

“Mianzo fully supports the main goal of the Paris Agreement, which calls on all countries to reduce carbon emissions to limit global warming to around 1.5 degrees celsius and reach next zero emissions by 2050. As a business, we are committed to playing our part in gradually reducing our reliance on fossil fuel energy sources such as coal and crude oil and adopting low-carbon energy sources like wind and solar,” says Luvo Tyandela, portfolio manager and Mianzo MD.

For its part, Mianzo embarked on a strategy to cut its carbon emissions. As a responsible investor, the company has begun taking steps to incorporate sound environment, social, and governance (ESG) practices in its investment decisionmaking and risk management processes.

“We have engaged auditors Mazars to measure our carbon footprint. This engagement has led to Mianzo developing environmentally friendly policies around its operations regarding paper usage, energy efficiency, use of digital technology, reduction of waste, and use of alternative energy,” explains Isaacs.

An analysis done by Mazars established that Mianzo’s carbon footprint is about half of the global average for firms of its size in the financial services sector.

The analysis further established that the most significant contributors to Mianzo’s carbon emissions were electricity consumption and employee commute, which contribute 45% and 42% respectively to emissions.

These contributors are largely driven by the fact that Mianzo purchases electricity from electricity supplier, Eskom, which relies on coal generators while Mianzo’s employees engage in long distance commute with some in fuel-guzzling vehicles.

To reduce emissions, Mianzo is exploring engaging owners of the office building it is renting to consider installing renewable energy to the building. In the last 12 months, Mianzo has implemented a hybrid work model, whereby 50% of staff work from home and the other half from the office. This is done on a rotational basis.

In 2020, Mianzo created a fund designed to offer loans to small and medium-sized enterprises (SMEs). The fund was introduced to contribute to stimulating economic growth and job creation.

These funds are housed in an alternative investment platform at Mianzo, managed by Sifiso Simelane, who has extensive experience in financing broad-based BEE transactions and the alternative platform.

In November 2019, the asset manager launched two affordable unit trusts products, Mianzo Equity 27four Unit Trust and Mianzo Inflation + 3% 27four Unit Trust, to help low and middle-income retail investors get exposure to the stock market.

Since the launch of the alternative investment funds, the value of the total portfolio of these funds has grown to R340 million.

The unit trust products have been designed for ordinary South Africans, particularly blue-collar workers, midlevel office professionals, emerging business owners, and informal traders, who are eager to invest in the stock market (equities) and listed-debt market (bonds).

The launch of the unit trust products was followed in June 2021 by the launch of Mianzo Black Umbrellas SME Debt Fund, which provides loans to 51% black-owned SMEs based in South Africa. The fund was introduced to contribute to stimulating economic growth and job creation.

With South Africa being plagued by load shedding, slow economic growth, and mounting job losses, the SME Debt Fund could play a crucial role in providing funding to entrepreneurs looking to grow their businesses.

Mianzo Asset Management | an Authorised Financial Provider | FSP43114. 

CONTACT DETAILS

Tel: 021 552 3555

Email: info@mianzo.co.za

Web: www.mianzo.co.za

Address: The Form, EG01 Vesta House, Northbank Lane, Century City, 7441