SA’s largest private-sector asset managers score high in BEE ratings

SA’s largest asset managers are making progress in transforming the industry, with 36 of the 72 players surveyed by Alexander Forbes achieving the highest BEE rating ever in 2021.

For the first time, there were 13 level-1 contributors in the top 20 asset managers ranked by size, an increase of 85% year on year, Alexander Forbes said on Wednesday when it released its annual retirement fund survey.

The study showcases the performance of private-sector institutional fund managers in SA, as well as their respective broad-based BEE ratings.

“While the increased pace of transformation amongst the large managers is admirable and reflective of their appetite and intent to transform, we must also caution that emerging black asset managers still require support across various dimensions to further the organic transformation of the industry,” said Janina Slawski, head of investment consulting at Alexander Forbes.

While Ninety One is the biggest overall if you include its UK business, it is now also the largest asset manager on behalf of SA clients, having increased these assets under management by 14% to R690.64bn year on year.

Ninety One replaced Old Mutual Investment Group (OMIG), which fell five places to sixth position in the 2021 annual survey. OMIG has since 2021 operated independently from its affiliates — Old Mutual Alternative Investments, Old Mutual

Specialised Finance, Futuregrowth and Marriot.

Stanlib Asset Management was second with a 15% increase in assets to R652.18bn over the period. Coronation Fund Managers leapfrogged into third spot with an annual increase in assets of 20% to R540.85bn.

Assets under management of participants in the survey rose 7.5% year on year, with the concentration remaining among the 10 largest asset managers.

The assets under management held by this group constituted almost two-thirds of the total of the 72 managers combined.

The Public Investment Corporation (PIC), which manages funds on behalf of state employees, was not included in the survey.