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Asset Distribution to Manager BEE ratings
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It is exciting to note that the asset distribution in 2022 continues to be significantly concentrated among the level 1 contributors. In 2021 the distribution among level 1 and 2 contributors was an impressive 65% and 29% respectively. Continuing the trend that asset managers are transforming and taking BEE very seriously, the distribution among level 1 and 2 contributors for 2022 was an outstanding 92% and 2% respectively.
Looking at the total assets under management (AuM) of the top 5 black-owned asset managers in the June 2022 AuM survey, we saw growth of 2% compared to the position of this group of participants in the June 2021 survey. For the first time, we had two participants of the BEE survey in the top 10 of the AuM survey, namely SIM and Taquanta.
In 2021 we saw growth of 119% compared to the AuM of the top 5 black-owned managers in 2020. This was due to the entry of Sanlam Investment Managers (SIM). With assets constituting 52% of the total sum of assets for the top 5 black-owned asset managers in the June 2022 AuM survey, SIM is by far the biggest black-owned manager in South Africa .
BEE ratings according to Manager Distribution
Growth in Assets (year on year)
An impressive 49 of the 77 participating asset managers were level 1 contributors, compared to the 36 in last year’s survey. After being unrated in 2021, Laurium Capital was rated a level 1 contributor. Foord and Fairtree improved from being level 5 and 4 contributors in 2021 respectively, to being level 4 and 3 contributors in 2022 respectively.
Compared to June 2021, Truffle showed an increase in AuM of over 85% as at June 2022, while Granate and Terebinth Capital had growth of assets in excess of 60% each. Foord had a decrease in AuM in excess of 31%, while the assets of Absa AM, Momentum AM, Rezco and Sesfikile decreased by an average of 13% each, over the same period.
All of the asset managers in the top 10 were rated level 1 contributors in 2022, which is unprecedented. Similarly, for the first time we have 19 level 1 contributors in the top 20 managers ranked by size which is an increase of 46% over the 2021 number.
The AuM survey universe, as at June 2022, is summarised according to participant contributor levels:
