Assets managed by black-owned firms surge 18% to R579bn | IOL Business Report

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The 27four Investment Managers’ 2019 edition of BEE.conomics showed that assets managed by black firms surged 18% from last year to R579 billion. busrep

Johannesburg – The 27four Investment Managers’ 2019 edition of BEE.conomics, an annual survey aimed at gauging the rate of transformation in the asset management sector, showed that assets managed by black firms surged 18 percent from last year to R579 billion.

Akona Mlamleli, investment executive at 27four Investment Managers, said the results of the survey showed that merger and acquisition activity has increased across the sector, with established firms doing deals to become black-owned and transforming their investment team composition.Taquanta Asset Managers, iAluwani Capital Partners, Mazi Capital, Mergence Investment Managers, Argon Asset Managers and Vunani Fund Managers are regarded as the foremost black-owned asset managers in the country.

Fatima Vawda, the managing director at 27four Investment Managers, said black-owned asset management firms were introducing product offerings that cater for increased interest from institutional investors towards real assets such as infrastructure and private equity. “This structurally low-growth environment has spurred the appetite of institutional investors towards real assets such as infrastructure and private equity in search for returns that can immunise long-term liabilities. This has seen a resultant increase in the number of black-owned asset managers introducing product offerings to cater for this need.”

 

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