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Responsible shareholding

Sanlam supports responsible shareholding and encourages shareholders to play an active role in financial markets. Responsible shareholding includes adhering to insider trading provisions as set by the JSE and other regulators.

Responsible shareholding assumes that the companies in which you invest are also acting with integrity and as good corporate citizens.

Sanlam’s internal policies direct business units and employees in terms of ethical conduct and price sensitive behavior. Sanlam Investments subscribes to the Code for Responsible Investing in South Africa.

We invite Sanlam shareholders to engage with our investor relations team for more information.

Our commitment to responsible investment

Sanlam Investments provides retail and institutional clients in South Africa, the United Kingdom and elsewhere in Europe access to a comprehensive range of specialised investment management and risk management expertise.

The manner in which institutional investors approach environmental, social and governance (ESG) issues is gaining increased attention around the world. Globally, it is estimated that there are US$22,89 trillion of assets being professionally managed under responsible investment strategies — an increase of 25% since 2014.

Pension funds, insurers and asset managers should be equipped to understand and respond to potential risks and opportunities arising from ESG-related factors in order to safeguard the assets that they invest on behalf of their clients. Understanding ESG issues and the potential impact of ESG factors on both their investment strategy and the broader operating environment is therefore an integral part of good governance for institutional investors.

As value investors, Sanlam Investments’ investment philosophy is to make use of opportunities created when prices differ from their fair value. Generally, Sanlam invests in assets that are trading below its fair value estimate and disinvests from assets that are trading above its fair value estimate. Sanlam’s team of analysts therefore conduct in-depth research to gain insights into what an asset is truly worth, instead of what investors are willing to pay.

We are confident that by applying this approach over the long-term and riding out volatile and uncertain periods, Sanlam will be able to deliver consistent, long-term investment performance for clients. By taking the long-term view, we also recognise that non-financial issues may play a greater role in our valuations. These issues are typically related to the quality of companies’ relationships with their broader stakeholders and their responsible stewardship of natural resources, as well as their own governance approach. Accordingly, we embed sustainability into our core investment process to better understand the potential for companies to deliver their cash flows into the future. This entails broadening and extending our investment horizons.

This is guided by our responsible investment policy. Sanlam Investments subscribed to the Code for Responsible Investing in South Africa (CRISA) in 2011, and is committed to integrating the following five principles into its investment approach:

  1. An institutional investor should incorporate sustainability considerations, including environmental and social sustainability and governance, into its investment analysis and investment activities as part of the delivery of superior risk-adjusted returns to the ultimate beneficiaries.
  2. An institutional investor should demonstrate its acceptance of ownership responsibilities in its investment arrangements and investment activities.
  3. Where appropriate, institutional investors should consider a collaborative approach to promote acceptance and implementation of the principles of CRISA as well as other codes and standards applicable to institutional investors.
  4. An institutional investor should recognise the circumstances and relationships that have the potential to produce conflicts of interest and should proactively manage these when they occur.
  5. Institutional investors should be transparent about the content of their policies, how the policies are implemented and how CRISA is applied to enable stakeholders to make informed assessments.

In addition, Sanlam Investments subscribes to the United Nations Principles for Responsible Investments (UNPRI), upon which CRISA is based. Sanlam Investments annually assesses its policy framework and implementation against the CRISA principles to compare its progress with that of its international peers.

This enables us to continuously refine and improve our approach to responsible investment.

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