The investment manager will be responsible for managing $40m (£26m, €35m) of Personal Trust International’s assets, which are registered under PTI Guernsey.
In May, BMI was granted a category 1 licence in South Africa, meaning it can now give investment advice and conduct intermediary services in the country.
Speaking exclusively to International Adviser, BMI’s business development director Lindsay Bateman said the firm has seen an increase in interest from professional advisers in South Africa since it was granted the licence.
Good stead
He said South Africa regards Jersey, Guernsey and the UK as equivalent in terms of the legal and regulatory environment, which – given BMI’s base in the Channel Islands – put the company in good stead to win the deal with Personal Trust.
“Our experience with the UK and the islands has been valuable to us doing business in South Africa, particularly with the lessons learned from the Retail Distribution Review in the UK,” Bateman said.
“So as part of our partnership with advisers, we can also help and support them based on our experiences in other jurisdictions.”
Critical
BMI is now focusing on establishing a South African team within the company and currently has five experienced colleagues undergoing the necessary exams to allow them to conduct business in the country.
“We are building a team very rapidly and we’ve got someone on the ground every second month,” said Bateman, who alongside senior investment manager Garry Hill has decades of experience living and working in South Africa.
“I think local knowledge and understanding adds value to the relationship [with Personal Trust],” he said. “Having a real knowledge of the challenges and opportunities that every market offers is critical to being successful.”
Dedication
The US dollar-denominated funds included in the mandate invest in a diversified range of asset classes, and Brooks Macdonald’s team of 101 investment managers use a range of both active and passive investments.
“We are able to bring our existing investment process and bring all of that knowledge and capability to advisers and their clients in South Africa,” said Bateman, adding that BMI’s assets have built up so rapidly due to its “dedication” in working in partnership with financial advisers.
Fine-tuning
“As a firm we are internationally focused on a number of key markets, including the Middle East, parts of Europe and the UK.
“As a result, we have spent a lot of time fine-tuning our capabilities, and what we’ve found is if we deliver good investment products at the right price and in a transparent and clear way then it can work for people anywhere in the world.
“So while one needs to give consideration for local factors, there is a demand for good quality products, regardless of the geographies.”
Flexibility
Bateman added: “It’s all about consistently travelling out to South Africa and delivering on that strategy, while also having flexibility behind the scenes to adapt to the changes and support our initiatives accordingly.”
