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An increase of only four more black asset managers in the country over the last year indicates the road ahead is still long for black asset managers, according to the Association of Black Securities and Investment Professionals (Absip).
Absip president Sibongiseni Mbatha said the recently released survey report has shown that black asset managers were still getting little asset-to-manager in the pool of trillions of rands available.
According to the ninth annual BEE.conomics survey, published by 27four Investment Managers this week, the number of black asset managers has increased to 45 from 41, but they still manage only around 10% of the overall funds managed by the private sector.
“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,” a statement of the survey, which is due for public release early next month, reads.
The survey also shows that the number of black asset managers, particularly in Johannesburg, has more than doubled since 2009, along with similar growth in assets under management, though this represents less than a 10% of the total pie managed by the private sector.
Mbatha said that for the number of asset managers to increase, there have to be funds available to manage.
“Black asset managers are still getting the crumbs from the whole pool of overall R9 trillion – R4.6 trillion of which is in private hands. Black asset managers manage only 4.4% of that R9 trillion and only one-tenth of the funds in private sector,” he said.
He pointed out that state-owned entities (SOEs) needed to come to the party and start allocating pension funds to black asset managers, as that would open the door for more black people to enter the sector.
“We want all black asset managers to benefit, not just a few. The Public Investment Corporation, Eskom, Transnet and other SOEs must allocate their pension funds to black asset managers and black asset managers must in turn perform,” Mbatha said.
The survey is conducted annually to produce 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 survey also details success at market penetration, competition, barriers to entry and expansion, human capital development, preferential procurement, job creation, socioeconomic impact, access to financial services and various other industry trends.
“It is encouraging to have received such great participation from the industry survey participants this year,” said 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.”
Government has yet to sign off on the draft financial services charter that was submitted by the financial services council, and deputy finance minister Sifiso Buthelezi has previous said he would be discussing the allocation of more funds with the SOEs.
