• Editor

Can we regard investing with Black Asset Managers as the S in ESG…?

For every extra R1 billion in Assets Under Management (AUM) asset allocators allocate to large asset managers it simply adds to their businesses efficiencies and increases their AUM figure.

However, for the same extra R1 billion which is allocated to a medium or smaller asset manager, we observe a very different impact; these managers can hire at least two more professional investment staff members and a middle office specialist and are further able to invest in their technology stack.

Larger asset managers experience that extra R1 billion as having a marginal impact on their embedded processes; the medium or smaller asset manager on the other hand, experience it as a step closer towards reaching similar economies of scale and importantly, the perception of their sustainability is positively impacted by the show of confidence from asset allocators – which begets more confidence from other asset allocators.

When we talk about the national imperatives of job creation, poverty eradication and reversing inequality, this we see as a meaningful and relatively simple step in trying to answer these complex questions and in our view has a direct link to the ”S” in ESG in a South African context.

Would love to hear your thoughts..

MOTSWEDI - Listed Investments Survey - December 2021
Download PDF • 518KB

Kind regards


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