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First for the professional personal financial adviser 30 APRIL 2025 R69.95 INCL VAT
WHAT’S INSIDE YOUR APRIL ISSUE: TRANSFORMATION IN THE ASSET MANAGEMENT INDUSTRY While there is still a long way to go, and big challenges remain, there have been some positive strides when it comes to transformation commitments. Pg 1 and Pg 5
AWARDS SEASON Kudos to all those who received awards in the recent ceremonies. We highlight and congratulate some of the big achievers. Pg 10-13
THE CHANGING WORLD OF CRYPTO Cryptocurrency may have seen some ups and downs over the past few months, but it’s definitely not going away. Here’s what’s happening in the industry. Pg 14-16
INVESTMENT ADVICE Everything you need to know about the current world of investment, from passive investing and consistent alpha generation to the evolving ETF market. Pg 18-26
Beyond the numbers:
Rethinking targets and transformation
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easuring transformation in the asset management industry remains challenging, and not just because different industry reports yield different results. In various reports, discrepancies reflect varying survey sizes and methodologies, data sources, and ideas on how to measure transformation (ownership versus influence over decision-making, for example) – all of this compounded by the vagaries of self-reported data. There is, however, broad agreement that significant progress has been made, but the targets need to be revisited, and the process recalibrated. President Donald Trump’s opposition to policies promoting Diversity, Equity and Inclusion (DEI) in the US is seen as unlikely to affect South Africa’s transformation efforts. There is wide agreement in South Africa that transformation is required not just to redress past inequality, but as a driver of stability and economic sustainability. Few would dispute that the persistent skills gap and underrepresentation of black professionals pose risks to the long-term viability of the industry. Given asset management’s critical role in the economy, any failure to transform presents an even greater challenge.
As Senzo Langa, Deputy Chief Investment Officer at Alexforbes, emphasises: “South Africa faces a unique and severe inequality challenge,” and this imbalance “can negatively affect economic growth”. How are we doing? There is clear consensus that the industry’s commitment to transformation is deeply rooted. Since 2007, 27four Investment Managers has provided the investment community with data and intelligence from regular BEE.conomics surveys conducted with black fund management firms. In October 2024, the company launched the 27four DEI Index, a benchmark to measure, assess and promote DEI across the sector, using data from 93 asset managers overseeing R8.42tn in assets. The company’s Chief Executive Officer, Fatima Vawda, sees “phenomenal progress” in transformation. She says: “We are very pleased with the level of transformation that has occurred, both at ownership and representation level, but we need to think about other issues.” Continued on next page
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