A presentation on the very topical subject of "Integrating political risk into asset allocation" kicked off the second investment symposium hosted by global asset management firm Schroders in collaboration with the Department of Statistics and Actuarial Science at Stellenbosch University (SU).

After the success of the inaugural investment symposium hosted last year, representatives from the asset management industry in South Africa gathered in Stellenbosch again for the Schroders Institutional Investment Symposium 2017.

This symposium is one of the initiatives flowing from an agreement between SU and Schroders' Multi-asset Investments and Portfolio Solutions (MAPS) division. The agreement also comprises postgraduate bursaries and research collaboration.

International experts discussed the developments and challenges that asset allocators are facing in a rapidly changing industry with industry representatives on Tuesday 28 March and with postgraduate students on Wednesday 29 March.

During her presentation on the impact of political risk Remi Olu-Pitan, fund manager at Schroders, explained that the impact of political shocks is huge when global growth is low.

"We can't hide from political risk – we need to incorporate it into our planning," she said.

Other topics discussed at the symposium included "Using factors to construct portfolios", "Advances in Equity Portfolio Construction", "The risk of mismeasuring risk" and "Putting investment insights into practice".

The Department of Statistics and Actuarial Science's Prof Willie Conradie, who was responsible for coordinating the agreement on SU's side, said that it was immensely valuable for academics as well as asset managers from industry to listen to the different speakers and benefit from their knowledge and experience.

"It was also a privilege for our postgraduate students in Financial Risk Management, Actuarial Science and Financial Analysis to learn from and mingle with these international experts," he added.

Prof Wim de Villiers, Rector and Vice-chancellor of SU, opened the seminar and said that the level of interest in this initiative indicates that there is a definite need for collaborations of this nature, bringing academia and the private sector together in the public interest.

He made special mention of the financial assistance in the form of 40 postgraduate bursaries.

"Two weeks ago, SU concluded the 2016 academic year by awarding a record number of 8339 qualifications. People tend to think that SU is a well-to-do university, but a third of our most recent graduates received some form of financial assistance."

Prof De Villiers lauded the mutually beneficial partnership model of the collaboration between Schroders and SU, bringing together industry and academic experts who will collaborate on research that both expands academic knowledge and enhances the delivery of investment outcomes.

"It is inspiring to be part of such a forward-thinking initiative," he said.

Gavin Ralston, Head of Official Institutions at Schroders, said that they are very proud of their association with SU.

"We very much appreciate the importance of widening access to education. We're very proud of what we've achieved thus far."

Photo: Postgraduate bursary holders with some of the most important roleplayers forming part of the agreement between Schroders and SU.

Photographer: Anton Jordaan