Every investment decision made for clients in Lodestar funds now directly affects the team personally. All employees now have a stake in the business; What more could an investor ask for?
Owning The Funds, Owning The Risk
When Reza Khan negotiated the purchase of Matrix’s shares in Lodestar Fund Managers, a new vision was born – to simultaneously make the company meaningful in employees’ lives and to show clients the faith that the team has in their investment decisions.
Now, with 100% of employees having an ownership stake, that dual vision is solidly under way.
Meaningful Change
I interviewed the Lodestar team about the business’ transformation and growth.
Mthokozisi started in 2018 as Lodestar’s first full-time hire. When he was offered a shareholding at the end of 2022, his belief in “the business model and culture made it a no-brainer to take up an offer of shareholding”.
With his personal investment now in place, he acknowledges that this automatically intensifies the existing incentive to “contribute positively to the success of the business”.
Taking The Vision To Higher Levels
Sticking with their internal ethos of always aiming higher, Lodestar has also taken the conscious ownership decision this year to increase female ownership.
Nadeema Levy has a 10% shareholding. Nadeema joined Lodestar Fund Managers in 2021 as Chief Operating Officer.
“Diversity of experience, culture and thought contributes to robust decision making.” Reza Khan
“A key decision driver in joining Lodestar was the opportunity to not just to have a seat at the table; but to own the table!” Nadeema goes on to emphasis the point, “there is a difference, at Lodestar we are building our own business not somebody else’s”.
Replace Luck As An Ethos
Lodestar’s investment mantra is Replace Luck and it is living up to its beliefs. As part of the investment team Mthokozisi believes that “Replace Luck” applies to more than just the investment process.
He believes luck is not needed when you have employees personally invested and an environment where “there are no restrictions when it comes to innovation, creativity and transformation in improving work processes and generally contributing where you can in the success of the business”.
The Future Of The Strategy
These strategies are very exciting but I had to ask the team if shares will always be available to Lodestar team members? “Well we don’t know about “always” but we do see this as integral to building an engaged, involved team” says Khan.
It seems that employee ownership is just another way Lodestar Fund Managers REPLACE LUCK.
Lodestar Fund Managers is organically, 100% black-owned and managed. Lodestar falls under the Emerging Black Manager Category. Lodestar Fund Managers (Pty) Ltd is an authorised financial services provider, FSP 49808.