Q. How has Kgori Capital come to be a significant player in the asset management industry?
A. At Kgori Capital our customers are at the heart of all that we do. We also recognise the role that we play in the overall development of our nation. We have deliberately focused our strategy to ensure that we not only help our clients on their investment journey but also to make a sustainable and equitable contribution to the growth of Botswana and her people. We do this by picking solutions that are good for both client and society.
Q. Define the nature of the asset management industry.
A. Asset management entails development of an investment philosophy and incorporating it into a holistic investment process that includes idea generation, security selection as well as appropriate risk measures such as diversification for the protection of client assets. An asset management firm derives its identity from its approach to investing and risk management complemented by the level of client service and support.
The asset management industry in Botswana plays a pivotal role in developing the economy of Botswana by protecting and growing the assets of the country and her commercial collaborates and plays a pivotal role in social concerns, such as ensuring that pensioners receive adequate retirement portfolios. The industry does not divorce itself from other domestic and global concerns such as Environmental factors, Social issues and Governance standards but rather incorporates these concerns into the investment process by supporting industries and firms that contribute to the overall welfare of society.
Q. What products do you offer in terms of investment and management solutions?
A. Kgori Capital is an investment solutions provider that provides bespoke investment solutions to pension funds, corporates, charities as well as retail clients. We help our clients build segregated portfolios that meet their unique investment objectives and offer pooled solutions that retail clients can explore for their own investment journeys.
Q. Why is Responsible Investing important?
A. Responsible Investing is important to investment management as it takes into account important risk factors that ultimately protect the client/investor and it helps to make a positive change in the world we live in. The advent of responsible investing has ensured that only those industries and firms that are cognisant of their role in society receive support from investment managers, thereby incentivising firms to incorporate socially beneficial practices and methods in their way of doing business.
Q. Tell us about the importance of Environmental, Social and Governance (ESG) practices in investment management processes.
A. ESG considerations are integrated into our investment process across all asset classes. ESG incorporation helps us make better long-term investment decisions for clients. ESG is assessed top down and bottom up through both investment selection and engagement. ESG factors are taken into consideration when we assess the long-term sustainability of any investment opportunity, this aligning to our wider purpose and vision to provide long-term client-driven investment solutions for all our clients.
Q. How has Kgori Capital incorporated ESG practices into its investment processes?
A. Since the inception of Kgori Capital a decade ago, we have been signatories of the United Nations-supported Principles for Responsible Investing (PRI). PRI is a network of investors that collectively promote sustainable investing through the incorporation of ESG perspectives into investment decision-making.
This means that as Kgori Capital, we approach business with a responsibility to protect the environment, uplift communities and maintain integrity of decision-making structures.
Q. How can asset owners and financial services providers benefit from being signatories to the UN Principles for Responsible Investment (PRI?)
A. Committing to the PRI is a way to signal to clients and market participants the intent of being a sustainable investor. Some of the more tangible benefits include better management of investment risks, enhanced investment returns, influencing positive change when engaging with companies, and increased accountability. Regulators consider ESG factors as part of investors’ duties to their clients and beneficiaries.
Q. The industry is dominated by foreign firms. What do you think can do to change the dynamic in this particular sector?
A. While it is true that foreign firms dominate the industry, we are encouraged by the growing trend of emerging local firms in asset management. We hope that this trend continues and is further encouraged by asset owners placing more trust in the local firms.
As Kgori Capital we want to prove by example that Botswana businesses such as our own really can box with the very best even in an international playing field. As a sector, we need to shed the perception that independent, locally owned financial services firms are not capable of being excellent and demonstrate that we can compete with, and outperform foreign companies.
Q. What do you think can be done to create assets in the different sectors that exist in the Botswana economy in order to attract investment?
A. We believe that assets can be created in different sectors by supporting and growing the private sector and by diversifying the economy from historic centres of influence. Ultimately, this should reduce our reliance on the government as an investor by creating new sprouts of asset owners and promoting a strong domestic economy.