Our view on the Emerging Asset Manager universe
The Top 10 Largest asset managers in South Africa by AUM make up approximately 80% of the industry (as an indicator, Investec manage R592 Billion).
Did you know that there are approximately 44 majority Black owned asset managers in the South African asset management industry. Most of them are in the “Start-Up” phase, which is not to say that they are all less than 2 years old. In fact, the average age of these “start-up” businesses are 5 years.
How Motswedi sees the universe of Transformed asset managers:
Why are these businesses not growing as fast as would have been anticipated..?
Motswedi have identified two potential reasons
Asset owners fear of change
Asset owners comfort with status quo
If asset owner allocated a percentage of their scarce resources to researching and finding good EAM, this would be the first step to overcoming fear of change.
By getting good information on these EAM, asset owners are able to move from the comfort of the status-quo and make timely actionable decisions.