Wanted: R1 billion of assets

Black asset management firms need an additional R1 billion of assets under management to add one highly skilled investment professional to their team, a new survey has found.

But while many black firms have delivered relatively strong returns over the past year, many still struggle to attract funds.

Speaking to Moneyweb ahead of the release of their annual BEE.conomics survey on transformation in the South African asset management industry, Fatima Vawda, managing director of 27four Investment Managers, said the biggest challenges for black asset management firms are brand recognition and capital.

For start-up firms sourcing talent can also be a significant challenge as there is a limited pool of black investment professionals in South Africa, which are expensive to take on board, Vawda said.

Collectively the 32 black-owned asset managers that participated in this year’s survey managed R283.1 billion of assets as at June 30. Ten companies managed 94% of the overall assets.

Read the full article on Moneyweb.