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WHAT’S INSIDE YOUR MAY ISSUE: CHOOSING A FINANCIAL ADVISER What do people look for when seeking out a financial adviser? While qualifications are important, even more so are trustworthiness, integrity and the ability to communicate effectively. Pg 10–11
INVESTING IN AFRICA Despite the many challenges that exist in Africa, there is a growing appetite for investment, particularly amid increased global volatility. Pg 12–14
GLOBAL INVESTING OUTLOOK Find out what younger investors and those from emerging economies are demanding when it comes to investments. Pg 22
INSURANCE Key trends facing the industry; the diversifying of policies; and problems facing short-term insurance.
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Pgs 24-30
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By Siobhan Cassidy MoneyMarketing contributor
I
@MoneyMarketingSA
@MMMagza
Survey shows steady progress in SA as global chaos unfolds
t was hard to ignore the fact that the release of the latest Alexforbes’ Manager Watch™ Survey – which reveals solid, steady growth and evolution within the local asset management industry – came exactly a week after Donald Trump’s 2 April tariff announcements, which unleashed chaos on global markets. The post-election developments in the US had no bearing on the data in the 2025 edition of Alexforbes’ Manager Watch™ Survey of Retirement Funds Investment Managers, which delivers insights into the evolving South African asset management landscape based on data up to December 2024. The paradox was, nonetheless, striking. The juxtaposition of solid and steady progress locally against external events is an interesting representation of the investment industry’s dilemma around ‘controlling the controllables’. Investors are often told they should focus on factors within their control, such as how much they save and how long they leave their savings invested. However, they are also frequently reminded that factors beyond their control will also have an impact on their investments, which will often test their resolve. Often, an adviser’s toughest job is to help clients from reacting emotionally to events. As Linda Eedes, Investment Professional at Foord Asset Management, puts it, financial advisers must “hold their clients’ hands through difficult times and make sure they don’t make emotionally driven mistakes”. The survey is the first in the Alexforbes’ Manager Watch™ Survey of Retirement Funds Investment Managers series that is starting to reveal the effects of the lifting of the offshore investment cap on retirement investments under Regulation 28 of the Pension Funds Act to 45%. Bearing this in mind, it would be reasonable to expect that global developments might have a more significant effect on next year’s survey. However, even as investors around the world brace for what is to come in the unfolding global storm, the evolution reflected in the survey deserves our attention. A reliable tracker of local trends Established in 1994, the Manager Watch™ Survey has tracked trends in the South African asset management landscape for 30 years. A key aspect
has been the growth in the number of participating asset managers, as well as investment strategies as more firms are offering specialist strategies and alternative asset classes, giving investors more options. In the early 1990s, retirement funds mainly sought the “best balanced managers from a small pool”, and a “handful of life-owned asset management companies dominated the space”. As the industry matured, specialist mandates gained prominence, and managers began specialising in equities, bonds and alternatives. Over time, the market diversified, with both large financial institutions and boutique investment firms competing to offer innovative solutions. The Alexforbes Manager Watch™ Survey 2025 indicates a significant increase in participation, with 92 asset managers and 797 strategies taking part in 2024, a 5.7% and 6.4% increase respectively over the year before, demonstrating the extensive range of investment opportunities now available. Another significant development over the decades has been the shift from a few dominant players to a wide variety of asset managers, creating innovation and competition. The number of BEE strategies has also seen significant increase. The growth in assets under management to more than R8.2tn in the 2025 edition of Alexforbes’ Manager Watch™ Survey reflects “increasing trust in South Africa’s investment industry” and “growing investor demand for tailored, innovative investment solutions”. The rise of the multi-manager and transparency The survey also showed a notable rise of multimanagers, who have significantly gained ground on single managers, indicating a growing investor interest in diversified strategies. “In 2019, for every R1 managed by single managers, multi-managers held 15 cents. By 2024, this had increased to 29 cents.” Also included was the finding of an increasing emphasis on transparency, fair fees and responsible investing across the sector. Regulatory changes have played a crucial role, “pushing for better governance and transparency”. In response to demands of regulations for clearer reporting and fairer fees, Alexforbes says, “forward-thinking asset managers are already adopting these best practices”. Continued on next page