‘I have never seen an asset management merger which has worked’

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From his current vantage point as a non-executive director of Coronation Fund Managers, Neil Brown makes what might seem an obvious point – that all successful asset managers need to be investment led. Moneyweb AssetManagers

From his current vantage point as a non-executive director of Coronation Fund Managers, Neil Brown makes what might seem an obvious point – that all successful asset managers need to be investment led. ‘Significant staff ownership, both financially and in the investment process, is essential,’ he told Citywire South Africa in an interview. But, he said, it isn’t a given.

’ But Old Mutual lost faith in the boutique model after 2015 and reconsolidated its boutiques under the Old Mutual brand; Brown and Hasson were given the option of either closing down or starting an independent Electus without Old Mutual’s backing. Electus’s closure in mid-2020 is one of the rare instances in which a South African asset manager has closed down altogether. ‘We accepted that with barely R2bn under management, the business did not make economic sense,’ said Brown.

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