OPside: black asset managers are yet to sight Uhuru

Business

OPside: black asset managers are yet to sight Uhuru

Only the fittest survive, and the normalisation of the asset management sector in SA remains slow

Fatima Vawda

What started out as a data-gathering exercise 11 years ago to get a handle on the degree of participation by black-owned asset managers in the asset management sector has morphed into an annual socioeconomic research study providing data-driven evidence and analysis on the state of financial inclusion in SA.

The recently released 2019 edition of “BEE.conomics Transformation in SA Asset Management” presents revealing observations on the changing face of the savings and investments industry. The sector is reeling in a low-growth economy, and needs to find a balance between delivering value to its customers and meeting the investment needs of the economy while also restructuring to attain participation that is representative of the demographics of the country.

Our findings present an almost Darwinian analogy of how the sector has evolved over the period – where only the fittest survive, new species proliferate, others mutate and some go extinct. In 2009 there were 14 black-owned asset managers (more than 51% black ownership) managing about R90bn. Today this has grown to about R600bn managed by more than 50 players...

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