You might recognise the name RECM from the MTB Team featuring Erik and Ariane Kleinhans, Nico Bell, Lourens Luus and Cherise Stander but how much do you know about the company behind the team sponsorship? Full Sus spoke to RECM CEO, Jan van Niekerk about mountain biking, sponsorships and investing (in sport and the stock market).
For RECM as a relatively small asset manager (in comparison to the likes of Allan Grey), the rationale behind sponsoring a mountain bike team was simple, and yes the fact that most of the senior management cycle did play its part in the decision. Jan explained that the MTB team acts as the first step in the four stages of consumer engagement, for RECM by making possible consumers aware of the existence of RECM.
The MTB team’s genesis story involves the conversion of Neil MacDonald and Waylon Woolcock from the road to the mountain for the 2011 season. They proved immediately successful with the pair claiming the 2011 joBerg2c title in their first MTB race! Waylon added the overall National MTB Series champion’s title to their impressive 2011. For 2012 Luke Roberts was added to the team as they expanded their scope. It was in 2013 though that Team RECM really came to prominence with Erik and Ariane Kleinhans defending their ABSA Cape Epic Mixed Category title in the RECM colours. The squad then went on to the Bridge Cape Pioneer double with Erik and Waylon claiming the men’s GC victory and Ariane teaming up with Annika Langvad to win the ladies’ title.
Like many companies involved in mountain biking, RECM identified mountain bikers as potential clients. They track the column inches and online coverage the team generates for them – but at the end of the day the success of the sponsorship comes down to how many people respond: “Oh the guys with the mountain biking team”. Jan was quick to point out though that while the name recognition of RECM gained by the association with mountain biking is great, it’s their investment record that really brings in the clients.
RECM are a value-based capital manager, meaning they look to invest in companies who might not be getting the best press but whose underlying business offer good value. They’ve got nine funds under their management – but you can read the Financial Mail for more information on that front.
Back to mountain biking, RECM also sponsor the RECM Knysna 200, but where the team offer mass exposure and the chance for more people to become aware of the company, the Knysna 200 offers them the opportunity to interact, socialize and most importantly ride with potential RECM clients.
For 2015 there are a few changes afoot for Team RECM, with one notable change in personnel and the expiration of the Lange Sports contract. With Lange Sports no longer managing the team, 2014 team captain and Full Sus columnist Erik Kleinhans is set to take over the management role, in addition to remaining on the riding roster. The new rider on the squad for 2015 is an exciting signing… but you’ll have to read Erik’s column to find out who he or she is…
For would be MTB team, or event, sponsors the lesson to be learnt from RECM is one of consistency, clear goal setting, and careful association. RECM don’t expect Erik to sell unit trusts, his role is to represent the brand and gain exposure in the media. They like to allow the team to by and large do their own thing and have been thrilled at the professionalism of the riders. The manner in which the team riders conduct themselves on and off the bikes has helped build the RECM brand. This, coupled with the success of the team on the bikes, mean that the only reason Jan can foresee RECM discontinuing their team sponsorship is if the team gets bought out by a higher bidder.
Sidebar:
If you’ve got a story of how you “Followed your conviction” you can submit it to RECM’s Follow Your Conviction Competition and stand a chance to win R10 000 in unit trusts every month. Visit www.followyourconviction.com to find out more.
