The number of black asset managers has more than tripled to 48 firms managing over ZAR490 billion in assets in the ten years from 2009 to 2018. This is according to the tenth annual edition of the BEE.conomics – Transformation in South Africa Asset Management survey to be published by multi-manager investment company 27four Investment Managers in September 2018.
The survey coincides with new leadership and a renewal of business confidence under President Cyril Ramaphosa, following ten years of political instability and economic stagnation under former President Jacob Zuma.
“Although still positive, the past decade has been marked by low economic growth and policy uncertainty,” says Akona Mlamleli, 27four Investment Managers Head of Transformation.
“The past ten years have provided us with an abundance of data to draw conclusive evidence of what works and what is not working in the asset management sub-sector.”
The survey has earned its reputation as the foremost source of reliable data on transformation trends in the asset management sub-sector and is widely referenced by asset owners, asset consultants, asset managers and policy makers, enabling industry stakeholders to achieve much wider engagement in the promotion of financial inclusivity.
For instance, the inclusion of Black Business Growth Funding and the Retirement Fund B-BBEE Scorecard in the Amended Financial Sector Code of 2017, is a direct outcome of collective engagement and negotiation.
In 2017, the Standing Committee on Finance (SCOF) and the Portfolio Committee on Trade and Industry held public hearings on the transformation of the financial sector. The committees subsequently released the first report on the transformation of the financial sector in November 2017.
“We spoke to the Chairperson of SCOF on the purpose of the hearings, key recommendations made and how the sector should be positioned for the future,” Mlamleli says.
“One of the issues raised in the report is that government is passing legislation to meet the needs of international regulators and global standards rather than ensuring that it addressed domestic concerns.
“For this reason, we included a new section focused on financial sector regulation entitled ‘Bottlenecks and Barriers’, with the resultant output providing valuable insight on respondents’ views on competition, licensing and B-BBEE legislation,” she says.
A tangible outcome of these discussions was the New Insurance Act which came into effect on 1 July 2018, which included provisions on the promotion of broad-based transformation of the insurance sector.
The 2018 ‘BEE.conomics – Transformation in South Africa Asset Management’ survey will be released on 12 September 2018.