Black asset managers are too fragmented to challenge..?

It is well known that the value of representation of majority Black-owned asset managers has reached approximately R600 billion by mid 2019 – shared by approximately 42 Black Asset Managers.

For scale, Ninety One (previously Investec Asset Management) alone had AUM of R604 billion at the same date.

This is relative to the total long-term savings and investment industry size, available for private asset managers to manage, of about R5.5 trillion excluding the Public Investment Corporation (PIC) assets.

The ongoing question industry observers have been asking is, are there too many small and medium sized black asset managers to meaningfully challenge the few large asset managers?

It is a known fact that these large managers have a choke hold on the long-term savings and investment industry.

We believe consolidation as a clear way for emerging asset managers to grow their businesses to sustainability and to higher levels of competitiveness among the incumbent large asset managers.

ENDS

Mark Davids

Investment Strategy and Distribution

Cell: 083 222 9913

Tel: (010)110 8768

Fax: 011 656 1165

Email: davidsm@motswedi.co.za

Website: www.motswedi.co.za