an edited version of Abedian’s keynote speech at the 2019 Raging Bull Awards Ceremony on 30 January 2019.could not be more proud of his impressive, if not prophetic, insights into the reality of the workings of the so-called American Dream — essentially characterised by a blend of crass individualism and crude materialistic pursuit.
The world over, Financial Gatsbys are real. Their parties are as glamorous, their control over resources are considerable and restrictive, their decisions more often than not based on axiomatic beliefs, assumptions or rumours — and not on facts. And the more they follow the same template the less diversity and competition obtain. The markets move and fall together.
Whether on the equity investments or fixed income side of the financial markets, the fact is that hundreds of billions were channelled through this industry into the National Treasury, Eskom, Transnet, the African Bank, Steinhoff, Resilient Reit, Fortress Reit, NEPI-Rock Castle, EOH, NET1 and many other such entities.
At the same time, with the help of the PIC Commission of Inquiry, presided over by Justice Mpati, we are getting some facts and insights into the manner in which asset managers in the PIC exercised control over the largest pool of the country’s savings. As it is commonly acknowledged, perceptions matter and reputation is critical in the financial and investment sector. The developments to which I alluded, and the details are already common cause in the public domain, call for urgent corrective actions. A systemic overhaul of the capital market legislative and prudential oversight infrastructure is required.
The rising complexities within the financial sector have reached an all-time high. A powerful blend of globalisation, financialisation of economic structures worldwide and digitalisation has transformed the financial sector itself. The emergence of cryptocurrencies is just one case in point. Significantly, there has emerged a marked decoupling of the financial sector from the real economy. And the process is not yet complete.
Two features stand out immediately. First, the percentage of these “progressive investments is negligibly small. Second, and as a corollary, the culture of “socially irresponsible investments’ or “low and/or no impact investments” still dominate the asset management industry.
4 someone who chaired a co whos corp governance at best left lots 2 b desired u certainly have a lot to say