Media release: Call for black asset managers to help drive transformation through the 2016 BEE.conomics Transformation in South African Asset Management Survey

Research for the 2016 Annual BEE.conomics Transformation in South African Asset Management Survey is underway and 27four Investment Managers, publishers of the survey, are calling all black asset managers who meet the participation criteria to come forward and help drive industry transformation.

27four Investment Managers is an award-winning, independent South African multi-manager that offers a comprehensive and innovative range of multi-manager product solutions to cater for the varying needs of South African and global retirement funds, as well as individual investors.

The industry-wide survey, which was first conducted in 2009 and has since evolved to become the leading source of tangible data for policymakers and the investment community to evaluate and monitor the development of this growing sector, measures the progress of transformation within the industry.

Besides providing up-to-date data and analysis of black-owned asset management firms in South Africa, the survey attempts to provide thought-provoking content to stir up the will and determination of all stakeholders to drive and seek solutions towards real industry transformation.

“By electing to participate black asset managers will contribute to a useful guide to understanding some of the successes and challenges faced by black firms as they integrate within the broader universe of larger, well-established firms,” says Akona Mlamleli, 27four investment analyst and part of the research team developing the survey.

The purpose and benefits of the survey are multi-pronged and far-reaching for both black asset managers and the investment community:

  • To provide asset owners access to black talent that is typically excluded from mainstream consultant searches due to their relatively small asset sizes and recent track records in their new ventures.
  • To drive stakeholder consultations and collaborations between asset owners, industry associations, labour, government and the multitude of enterprises in the savings and investments industry to work together to achieve cohesive, sustainable outcomes.
  • To highlight the headwinds faced to achieve successful transformation in the retirement fund industry and to address these shortcomings in the context of the transition from the 2004 Financial Sector Charter to the new Revised Financial Sector Codes.
  • To highlight the performance of black asset managers when compared to non-black asset managers.
  • To draw attention to the plight of emerging asset managers versus their larger counterparts.

The 2004 Financial Sector Charter focused on the financing of black stakes in existing, established businesses, while the current draft Revised Financial Sector Code is about growing the economy through nurturing new enterprises as envisaged in the Department of Trade and Industry’s (dti) 2015 Generic Codes of Good Practice. “As such we move forward from the inception of the Financial Sector Charter more than a decade ago towards supporting small enterprises and the provision of support for black start-ups and existing black-owned businesses. This is further supported by the dti’s commitment to growing 100 black industrialists over the course of the next few years. The establishment of black-owned, managed and controlled asset management firms falls firmly within these policy directives driven by government,” says Mlamleli.

Asset managers who elect to participate in the survey must meet certain minimum criteria to qualify:

  • A minimum of 50% black ownership with accompanying voting rights.
  • A minimum of 50% black representation at board level.
  • A minimum of 50% black individuals in senior fund management positions where “black” is defined as per the dti Codes of Good Practice.

Participating investment managers will be required to complete and submit a questionnaire covering company details; social media activity; compliance; environmental, social and governance particulars; industrialisation measurement; fund information; fund performance; investment philosophy; pooled and segregated assets under management; fee preference; B-BBEE credentials; and a section with questions for the company CEO.

After the closing date for submitting questionnaires the information provided will be collated and presented in a format that can be used by decision-makers to guide policymaking. The outcomes of the survey will be presented per category as per the questionnaire and participating firms’ profiles will be showcased in the last section of the survey report.

Investment managers interested in participating in the 2016 BEE.conomics Survey are requested to send an email stating their intent to, or call (011) 442 2464 for more information. Investment managers who qualify for participation will then be given access to the questionnaire.

The closing date for submitting the questionnaire is 15 July 2016.

Issued by:                    BEE.conomics

Contact person:        Akona Mlamleli

Telephone:                 (011) 442 2464