Survey shows steady progress in SA as global chaos unfolds 

It was hard to ignore the fact that the release of the latest Alexforbes’ Manager Watch™ Survey – which reveals solid, steady growth and evolution within the local asset management industry – came exactly a week after Donald Trump’s 2 April tariff announcements, which unleashed chaos on global markets.  

The post-election developments in the US had no bearing on the data in the 2025 edition of Alexforbes’ Manager Watch™ Survey of Retirement Funds Investment Managers, which delivers insights into the evolving South African asset management landscape based on data up to December 2024. The paradox was, nonetheless, striking. 

The juxtaposition of solid and steady progress locally against external events is an interesting representation of the investment industry’s dilemma around ‘controlling the controllables’. Investors are often told they should focus on factors within their control, such as how much they save and how long they leave their savings invested. However, they are also frequently reminded that factors beyond their control will also have an impact on their investments, which will often test their resolve.  

Often, an adviser’s toughest job is to help clients from reacting emotionally to events. As Linda Eedes, Investment Professional at Foord Asset Management, puts it, financial advisers must “hold their clients’ hands through difficult times and make sure they don’t make emotionally driven mistakes”.  

The global effects

The survey is the first in the Alexforbes’ Manager Watch™ Survey of Retirement Funds Investment Managers series that is starting to reveal the effects of the lifting of the offshore investment cap on retirement investments under Regulation 28 of the Pension Funds Act to 45%. Bearing this in mind, it would be reasonable to expect that global developments might have a more significant effect on next year’s survey. However, even as investors around the world brace for what is to come in the unfolding global storm, the evolution reflected in the survey deserves our attention.  

A reliable tracker of local trends 

Established in 1994, the Alexforbes Manager Watch™ Survey has tracked trends in the South African asset management landscape for 30 years. A key aspect has been the growth in the number of participating asset managers, as well as investment strategies as more firms are offering specialist strategies and alternative asset classes, giving investors more options. 

In the early 1990s, retirement funds mainly sought the “best balanced managers from a small pool”, and a “handful of life-owned asset management companies dominated the space”. As the industry matured, specialist mandates gained prominence, and managers began specialising in equities, bonds and alternatives. Over time, the market diversified, with both large financial institutions and boutique investment firms competing to offer innovative solutions. 

The Alexforbes Manager Watch™ Survey 2025 indicates a significant increase in participation, with 92 asset managers and 797 strategies taking part in 2024, a 5.7% and 6.4% increase respectively over the year before, demonstrating the extensive range of investment opportunities now available.  

Another significant development over the decades has been the shift from a few dominant players to a wide variety of asset managers, creating innovation and competition. The number of BEE strategies has also seen significant increase. The growth in assets under management to more than R8.2tn in the 2025 edition of Alexforbes’ Manager Watch™ Survey reflects “increasing trust in South Africa’s investment industry” and “growing investor demand for tailored, innovative investment solutions”. 

The rise of the multi-manager and transparency 

The survey also showed a notable rise of multi-managers, who have significantly gained ground on single managers, indicating a growing investor interest in diversified strategies. “In 2019, for every R1 managed by single managers, multi-managers held 15 cents. By 2024, this had increased to 29 cents.” 

Also included was the finding of an increasing emphasis on transparency, fair fees and responsible investing across the sector. Regulatory changes have played a crucial role, “pushing for better governance and transparency”.  In response to demands of regulations for clearer reporting and fairer fees, Alexforbes says, “forward-thinking asset managers are already adopting these best practices”. 

ontinues to be made in transformation of the South African investment industry. The 2024 Assets Under Management survey shows that all the top 10 asset managers, and 19 of the top 20, had achieved Level 1 B-BBEE status. Just  10 years ago, none of the managers in the top 20 had achieved this status.  

Furthermore, the top five black-owned asset managers experienced a 48% increase in total assets, compared with June 2023, with five BEE survey participants entering the top 10 of the AUM survey for the first time. This progress “underscores the ongoing transformation within the sector, highlighting both the commitment and impact of BEE in shaping a more inclusive financial landscape”. 

ESG in focus 

Pointing to the remarkable changes in the South African investment industry documented by the Manager Watch series, Alexforbes pledges that the surveys would continue to push for higher standards, better comparisons, and stronger trust in the industry. “As part of this ongoing evolution, we also recognise the growing importance of sustainability. Soon, we plan to incorporate sustainability-focused reporting into the surveys, ensuring that investors and trustees have the tools they need to assess ESG-focused investments.” 

Even in the context of the current US backlash against Environmental, Social and Governance (ESG) considerations, the survey points out that over the past three decades, ESG had moved from a “niche approach to a core investment philosophy” in South Africa. 

Writing in a companion piece released with the survey, Premal Ranchod, Head, ESG Investments, Alexforbes Investments, says: “By the early 2000s, ESG analysis became more mainstream, bolstered by regulatory frameworks, investor advocacy, and landmark initiatives like the United Nations’ Principles for Responsible Investment (PRI). South Africa, a pioneer in responsible investing, introduced key regulations in Pension Fund management, Regulation 28, which emphasised ESG considerations in pension fund allocations.” 

A maturing industry 

As much as the survey presents evidence that the investment industry in South Africa continues to add layers of sophistication, investors are showing signs of maturity, too. Janina Slawski, Head of Investment Consulting at Alexforbes, says she had not received a single query from a member who needed reassuring as the markets hit the skids after Trump’s announcements. Normally she would receive many queries. 

Admittedly, Slawski says, Alexforbes has got very practiced at communicating with members during market turbulence. “Every time there’s a Russian invasion of Ukraine, a Covid, a Trump being aggressive, you communicate with members, reminding them about the fundamentals of good investing. We have become very practiced at this because we have had so many crises.”   

In terms of the global context, the 2025 Outlook in the Alexforbes’ Manager Watch™ Survey anticipates “murky” prospects with “material policy changes on the horizon from the new US administration” and “heightened trade policy uncertainty and geopolitical tensions”. These global uncertainties contrast with the positive trends observed within the South African asset management industry in 2024.  

The Alexforbes Manager Watch™ Survey 2025 reflects a South African asset management industry that is growing and evolving surely and steadily, which will hopefully build resilience amid a complex and potentially volatile global environment.