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Pension Funding
BY LOUISE MITCHELL
South Africa
22 June 2017
R 14 400.00 (ZAR)  
estimated $ 1 127.52 (USD) *
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The South African Pension Funding sector


Members of the Association for Savings and Investment South Africa (ASISA) managed total assets worth R8.6-trillion in 2015, according to the Association’s latest Annual Review published in 2015. The South African retirement industry today manages assets of around R1.8-trillion. This excludes the Government Employees Pension Fund (GEPF) with assets under management of more than R1.6-trillion.


A Well-Regulated Sector


A key stakeholder in the pension funding sector is Government which, through National Treasury, the South African Revenue Service (SARS) and the South African Reserve Bank (SARB), seeks to promote a stable macroeconomic environment through the implementation of sound fiscal and monetary policies. The Financial Services Board (FSB) is another important stakeholder with the Registrar of Pension Funds who oversees compliance with legislation that regulates non-banking financial institutions.


A Challenging Environment


Despite the sound regulatory environment and the active promotion of good governance, analysts believe that only 6% of the population will have enough money to retire comfortably, without having to change their standard of living. Financial illiteracy remains a challenge that prevents citizens from preparing adequately for retirement and the worsening economic climate seems set to make saving even more difficult. The issue of transformation, which has been hampered by a shortage of skilled professionals, and of effective corporate governance to ensure the implementation of sustainable and responsible investment, are also important developments in the pension funding sector.


Report Coverage


The detailed Pension Funding report focuses on currents conditions as well as developments in the industry, including National Treasury’s pension reforms that could stimulate the development of innovative retirement products. Included are profiles for 27 companies ranging from well-known companies such as Coronation Fund Managers Ltd and Allan Gray (Pty) Ltd, to relative newcomer Truffle Asset Management (Pty) Ltd which was recently nominated for the 2017 Morningstar Fund Awards as one of South Africa’s top three fund houses with a smaller fund range.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 15
4.2. Continental 17
4.3. International 19
5. INFLUENCING FACTORS 21
5.1. The National Social Security Fund 21
5.2. Economic Environment 22
5.3. Retirement Reform 24
5.4. Technology, Research and Development (R&D) and Innovation 25
5.5. Labour 25
5.6. Complaints and the Office of the Pension Funds Adjudicator 27
5.7. Fraud 28
5.8. Environmental, Social and Corporate Governance 29
6. COMPETITION 30
6.1. Barriers to Entry 31
7. SWOT ANALYSIS 31
8. OUTLOOK 32
9. INDUSTRY ASSOCIATIONS 32
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 34
APPENDIX 1 35
Kinds of funds subject to the Pension Funds Act 35
APPENDIX 2 37
Top 100 FSB-registered Funds in 2015 Ranked in Order of Number of Members 37
APPENDIX 3 40
Top 100 FSB-registered Funds in 2015 Ranked by Total Assets 40
COMPANY PROFILES 43
ABSA ASSET MANAGEMENT (PTY) LTD 43
ALLAN GRAY (PTY) LTD 45
ALUWANI CAPITAL PARTNERS (PTY) LTD 48
ARGON ASSET MANAGEMENT (PTY) LTD 50
CADIZ ASSET MANAGEMENT (PTY) LTD 52
CORONATION FUND MANAGERS LTD 54
FOORD ASSET MANAGEMENT (PTY) LTD 58
FUTUREGROWTH ASSET MANAGEMENT (PTY) LTD 60
INVESTEC ASSET MANAGEMENT (PTY) LTD 62
INVESTMENT SOLUTIONS LTD 65
KAGISO ASSET MANAGEMENT (PTY) LTD 68
MARRIOTT ASSET MANAGEMENT (PTY) LTD 70
MAZI ASSET MANAGEMENT (PTY) LTD 72
MERGENCE INVESTMENT MANAGERS (PTY) LTD 73
MOMENTUM OUTCOME-BASED SOLUTIONS (PTY) LTD 75
NBC HOLDINGS (PTY) LTD 77
OASIS GROUP HOLDINGS (PTY) LTD 80
OLD MUTUAL INVESTMENT GROUP (PTY) LTD 82
PRESCIENT INVESTMENT MANAGEMENT (PTY) LTD 87
PRUDENTIAL PORTFOLIO MANAGERS (SOUTH AFRICA) (PTY) LTD 90
PUBLIC INVESTMENT CORPORATION SOC LTD 93
SANLAM MULTI MANAGER INTERNATIONAL (PTY) LTD 101
SESFIKILE CAPITAL (PTY) LTD 103
STANLIB ASSET MANAGEMENT (PTY) LTD 105
SYGNIA ASSET MANAGEMENT (PTY) LTD 109
TAQUANTA ASSET MANAGERS (PTY) LTD 111
TRUFFLE ASSET MANAGEMENT (PTY) LTD 113