Black asset managers in South Africa grow in number but not in size

Black asset managers have grown to 45 in number, managing R416 billion of the South African savings and investments industry out of a total pool of R4.6 trillion currently managed by the private sector. This is revealed in the ninth annual BEE.conomics survey, published by 27four Investment Managers, which is due for release on 5 September 2017.

While the growth in the size of the black asset management sector has been relatively slow from 2016 to 2017, it has shown resilience in the face of a recession in South Africa. There is growth in the number of black asset managers, particularly in Johannesburg, and the number of black asset managers has more than doubled since 2009, along with similar growth in assets under management. However, this represents less than a 10th of the total pie managed by the private sector.

The BEE.conomics survey is conducted annually to produce authoritative data and intelligence that measures the pace of transformation in South African asset management. The theme of this year’s publication is industrialisation of the financial services sector and how to grow progressive and competitive financial institutions that contribute to structural change in the economy. The publication unpacks the factors that contribute towards the lopsided topography of the sector and identifies solutions to strengthen the virtuous cycle of inclusive economic growth.

“It is encouraging to have received such great participation from the industry survey participants this year,” says Akona Mlamleli, Head of Transformation at 27four. “We have received strong feedback from the private and public sectors since our first edition, and the content has become integral to the formulation and debate around transformation policy.”

In its 9th year of publication, the survey has earned its reputation as the primary source for exclusive insight on the industry. The formulation and execution of this research endeavour is backed by a sound thesis executed by a team of highly skilled investment professionals with the relevant experience to draw cogent inferences on the findings.

The survey details success at market penetration, competition, barriers to entry and expansion, human capital development, preferential procurement, job creation, socio-economic impact, access to financial services and various other industry trends. Also included is input and interviews with key stakeholders such as the dti, ABSIP and ASISA and a number of articles that address pertinent topics such as the Revised Financial Sector Code and its expected impact on the private sector and retirement funds.

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