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SPECIAL FEATURE

Cape Town is South Africa’s asset management capital The strength and diversity of the Cape’s financial services underpins a vibrant sector.

T

he venue for the 2019 Raging Bull Awards for collective investment schemes was the Cape Town International Convention Centre – which meant that the winners did not have to travel far to collect their trophies. Cape Town is South Africa’s asset management capital. Cape Town also, according to the Global Financial Centres Index (GFCI), ranks second in Africa in 2020 (behind Mauritius) in competitiveness as a financial centre. The ranking is an aggregate of indices covering five things: business environment, financial sector development, human capital, infrastructure and reputation. Of the 20 finalists named for the 2020 Morningstar South Africa Fund Awards, 13 have their headquarters in the Cape. Seven of the top 10 managers in the Plexcrown Ratings of 2019 are based in Newlands (MiPlan), Victoria & Alfred Waterfront (Allan Gray, pictured on the next page), Claremont (Coronation), Bellville (PSG and Boutique CI), Pinelands (Old Mutual) and Westlake (Prescient). The diversity of locations in Cape Town mirrors the range of products offered. South Africa now has over 1 000 registered unit trusts through which investors have access to money markets, domestic equities, bond markets and overseas markets, among others. The categories in which awards are presented give insight into the range. The fund categories (and Cape Town finalists) for the 2020 Morningstar awards were: CATEGORY

WESTERN CAPE FINALISTS

Best Aggressive Allocation Fund

Kagiso Balanced

Best Bond Fund

Allan Gray Bond

Best Cautious Allocation Fund

Kagiso Stable

Best Flexible Allocation Fund

Coronation Optimum Growth

Best Moderate Allocation Fund

Sanlam Managed Moderate Fund of Funds

Best South African Equity Fund

Kagiso Equity Alpha

Best Fund House (Larger Fund Range)

Investec Asset Management (now Ninety One) and Sygnia Asset Managers

Best Fund House (Smaller Fund Range)

Fairtree Asset Management and Kagiso Asset Management

WESTERN CAPE BUSINESS 2021

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T h e 2 0 1 9 R a gi n g B u l l Awards, which were held in January 2020, awarded “South African Manager of the Year ” to M iPlan and “O ffshore Manager of the Year” to Nedgroup Investments. Runnersup in the South African category were Ninety One and Prescient. Other Raging Bull winners for outright performance over three years were Kagiso Equity Alpha (G eneral Equit y Fund), Truffle SCI Income Plus (Interest-bearing Fund), BlueAlpha BCI (Global Equity General Fund), and Fundsmith (Offshore Global Equity Fund). For riskadjusted performance over five years the winners were Fairtree, Kagiso Protector, Long Beach Flexible and Platinum Global. A global trend also present in the Western Cape is the growth of the smaller company. Writing for citywire. co.za in 2020, Patrick Cairns noted that the market share of South Africa’s seven largest managers slipped from 64.8% in 2014 to 60.7% in 2019. Cairns highlighted the leap in assets under management (AUM) of Cape Town-based Prescient in the five years to 2019 – a noteworthy increase of 178.1%.

Profile for Global Africa Network Media

Western Cape Business 2021  

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