Key Takeaways
- • Blue Ink Investments launched regulated funds of hedge funds (FoHFs) to retail and qualified investor markets in August 2016, marking a significant structural innovation in South African alternative investments with minimum investment amounts from R20,000 upwards.
- • Retail FoHFs are benchmarked against ASISA risk-profiled fund categories (Multi Asset Low Equity, Multi Asset High Equity, and General Equity) rather than traditional cash benchmarks—a first-in-market approach that enables seamless portfolio integration alongside conventional funds.
- • Qualified investor funds target core-satellite strategies with exposure to soft commodities, inflation-beating returns, and fixed income instruments offering equity-like risk profiles on a competitive basis.
- • Blue Ink Investments has established a track record of innovation spanning 15 years, having introduced South Africa's first FoHFs (2001), first single-strategy FoHFs (2009), and first daily-priced FoHFs (2011).
- • Distribution channels include direct access to retail and qualified investors, integration with Sanlam Collective Investments (RF) (Pty) Ltd, and availability through Glacier, Sanlam's linked investment services provider.
Summary
Blue Ink Investments, operating under the Sanlam alternative investments umbrella, launched a suite of regulated funds of hedge funds in August 2016 targeting both retail and qualified investor segments. This launch represents a structural advancement in how alternative investment strategies are integrated into South African portfolios, addressing a longstanding gap in product architecture and benchmark methodology.
The retail FoHF offering differentiates itself through unconventional positioning against ASISA risk-profiled fund categories rather than relying on cash benchmarks—the industry standard. This positioning aligns alternative investments with the established intermediary advice framework, enabling advisers to recommend FoHFs as complementary components within balanced multi-asset portfolios. According to Bonolo Zwane, Managing Director of Blue Ink Investments, this approach facilitates seamless portfolio construction by eliminating the methodological disconnect between alternatives and traditional fund classifications.
The qualified investor funds target professional allocators seeking specialist exposure including soft commodities, consistent inflation-beating and equity-beating returns on an annual basis, and fixed income positions with competitive yields relative to equity-level risk. This core-satellite framework allows institutional investors to retain traditional holdings while introducing return drivers with differentiated market correlations.
Blue Ink Investments' market positioning reflects 15 years of consistent innovation. The firm introduced South Africa's first FoHFs in 2001, first single-strategy FoHFs in 2009, and first daily-priced FoHFs in 2011—establishing it as a persistent innovator within the alternative asset class space. The firm has also maintained a track record of seeding emerging hedge fund managers domestically.
Distribution remains accessible through multiple channels: direct investment from R20,000 minimum, integration with Sanlam Collective Investments (RF) (Pty) Ltd, and adviser access via Glacier, Sanlam's linked investment services platform. This multi-channel approach targets both institutional allocators and mass-affluent retail segments.
The retail FoHF offering differentiates itself through unconventional positioning against ASISA risk-profiled fund categories rather than relying on cash benchmarks—the industry standard. This positioning aligns alternative investments with the established intermediary advice framework, enabling advisers to recommend FoHFs as complementary components within balanced multi-asset portfolios. According to Bonolo Zwane, Managing Director of Blue Ink Investments, this approach facilitates seamless portfolio construction by eliminating the methodological disconnect between alternatives and traditional fund classifications.
The qualified investor funds target professional allocators seeking specialist exposure including soft commodities, consistent inflation-beating and equity-beating returns on an annual basis, and fixed income positions with competitive yields relative to equity-level risk. This core-satellite framework allows institutional investors to retain traditional holdings while introducing return drivers with differentiated market correlations.
Blue Ink Investments' market positioning reflects 15 years of consistent innovation. The firm introduced South Africa's first FoHFs in 2001, first single-strategy FoHFs in 2009, and first daily-priced FoHFs in 2011—establishing it as a persistent innovator within the alternative asset class space. The firm has also maintained a track record of seeding emerging hedge fund managers domestically.
Distribution remains accessible through multiple channels: direct investment from R20,000 minimum, integration with Sanlam Collective Investments (RF) (Pty) Ltd, and adviser access via Glacier, Sanlam's linked investment services platform. This multi-channel approach targets both institutional allocators and mass-affluent retail segments.
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