Transformation in SA asset management continues

The 13^th annual BEE.conomics – Transformation in South African asset management survey was revealed today during a live virtual results announcement hosted by Batseta and 27four Investment Managers.

The focus of the research is to measure the pace of transformation in South African asset management across both public and private markets, identify the trends shaping the future of asset management, provide insight into financial market infrastructure and evaluate financial sector policy outcomes.

Some key highlights from the 2021 report include:

• 55 asset managers met the criteria for participation across both public and private markets.
• Sanlam Investments made the cut adding over R340 Billion to overall AUM.
• Black market share of the total estimated South African regulated savings stocks excluding banks, short-term insurance and medical schemes including and excluding internally managed retirement assets is 14% and 20% respectively.
• C-suite positions are dominated by men.
• Private markets fund managers are gearing themselves to act as conduits for the allocation of capital by government and institutions towards infrastructure investments.
• The traditional benefits of scale such as fixed cost leverage is being upended by digital transformation and outsourcing.
• Capital market trends likely to dominate going into 2022 include an increased focus on climate change and sustainability, investment into real assets and impact, industry consolidation, B-BBEE, passive investing and the growth in popularity of cryptocurrencies.
• Political instability, policy uncertainty, low growth, fee compression, regulations and umbrella fund migration are some of the issues keeping asset managers awake at night.

“The financial sector has repeatedly been called out by the B-BBEE Commission for its slow pace of transformation relative to other economic sectors. When we think of an economic recovery we must shape and influence the type of recovery we want and for whose benefit,” says Transformation Action Forum Chairperson, Joe Letswalo.

“Developmental and social impact are critical to our consideration as the Infrastructure Fund. Programmes put to market will ensure that the entire value chain has meaningful Black participation of Black owned and Black controlled service providers,” says Ahjeeth JaiJai, Head of Asset Management and Treasury at the Infrastructure Fund.