the black asset management industry june 2016 survey Andile mngxitama National convener BLF 08 march 2017

Industry size and ownership There are a total 41 black asset managers Collectively managing assets of R400 billion out of industry base of R8.9 trillion Coronation (a relatively small white AM) alone manages R600 billion Meaning all 41 black AM collectively manage 4.6%, whites manage 95.4% Note: most of these black AM are not wholly black-owned, black ownership is 50% in most cases, so there's double dipping from whites!!!

Size and ownership (Cont…) Of the 41 black AM, 21 are said to be profitable under the period of review. There are only 68 black portfolio managers* with more than 5 years experience. Top 5 black AM (by AUM) manage 75% of that 5% industry slice They are concentrated in Johannesburg and Cape Town *Portfolio Mangers are people who actually manage the money and decide which financial instruments to buy.

Overall investment allocation  The overall size of the savings and investment industry is R8.9 trillion, 2.6 trillion in long term insurance  4.4 trillion in retirement funds  1.9 trillion in collective investment schemes Most money is tied up in retirement funds.

Government employee pension fund 40% of retirement funds are in the government employee pension fund (GEPF) managed by the PIC The GEPF Is the largest fund in SA with an asset base of R1.8 trillion The PIC gives mandates to white asset managers to manage the GEPF portfolio They are not showing faith in black asset managers Note: PIC is co-chaired by Daniel Matjila and the Deputy Finance Minister. the PIC (public investment corporation)