Pension Funding 2015
Price
R 1 900.00(ZAR) estimated $ 120.93 (USD)*
Report Coverage
The report on the South African Pension Funding sector describes the current market, Government’s proposed regulations and discusses factors influencing the success of the sector. The report also profiles 20 South African-based companies, ranging from Old Mutual Investment Group (Pty) Ltd which is structured as a multi-boutique business and employs 569 people, to unlisted Cadiz Asset Management (Pty) Ltd which employs 30 people and as at March 2015, managed assets in excess of R14bn.
Size of the Industry
This report focuses on the retirement funding industry in South Africa. Financial Services Board statistics show that there are 5,144 active retirement funds managing assets of approximately R3.2-trillion. During the year under review, combined contributions received by all pension funds, including the Government Employees’ Pension Fund (GEPF), the largest pension fund on the African continent, the Transnet funds and foreign funds, amounted to over R175bn. In the same period, the benefits paid by all retirement funds exceeded R189bn.
A Sector Needing Reform
The results of the 2013 Old Mutual Retirement Monitor which found that 42% of the population have no formal retirement provision are backed up by Sanlam’s 2015 Benchmark Survey. South African Revenue Service (SARS) statistics also showed that in 2014, of the 54 million people living in South Africa, only 2.2 million claimed tax deductions for pension fund contributions, while just 1.5 million taxpayers claimed deductions for retirement annuity contributions. Government’s recent and proposed retirement reforms are aimed at ensuring that pension fund members are better protected and are able to save money without withdrawing pension savings before retirement. However, not all stakeholders are in favour of the suggested reforms which include the establishment of a National Social Security Fund (NSSF). A postponement of the Phase 1 reform to March 2016, or possibly even March 2017 was announced in October 2014, reportedly to allow for further consultation between government and the National Economic Development and Labour Council (NEDLAC).
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 4 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 4. | STATE OF THE INDUSTRY | 8 |
| 4.1. | Local | 8 |
| 4.1.1. | Corporate Actions | 10 |
| 4.1.2. | Regulations and Government Programmes | 11 |
| 4.1.3. | Environmental, Social and Corporate Governance (ESG) Factors in Investing | 12 |
| 4.1.4. | Black Asset Management Companies | 13 |
| 4.2. | Continental | 14 |
| 4.3. | International | 15 |
| 5. | INFLUENCING FACTORS | 16 |
| 5.1. | Economic Environment | 16 |
| 5.2. | Proposed Retirement Sector Reform | 17 |
| 5.3. | International Impact | 18 |
| 5.4. | Longevity | 19 |
| 5.5. | Fraud | 20 |
| 5.6. | Labour Resources | 21 |
| 5.7. | High Costs | 22 |
| 6. | COMPETITION | 23 |
| 6.1. | Barriers to Entry | 24 |
| 7. | SWOT ANALYSIS | 25 |
| 8. | OUTLOOK | 25 |
| 9. | INDUSTRY ASSOCIATIONS | 26 |
| 10. | REFERENCES | 26 |
| 10.1. | Publications | 26 |
| 10.2. | Websites | 27 |
| APPENDIX 1 | 28 | |
| Top 100 FSB Registered Funds Ranked In Order of Membership | 28 | |
| APPENDIX 2 | 31 | |
| Top 100 FSB Registered Funds Ranked by Total Assets | 31 | |
| APPENDIX 3 - | 34 | |
| FSB-Registered Administrators as at 5 November 2013 | 34 | |
| COMPANY PROFILES | 39 | |
| ABSA ASSET MANAGEMENT (PTY) LTD | 39 | |
| ALLAN GRAY (PTY) LTD | 41 | |
| CADIZ ASSET MANAGEMENT (PTY) LTD | 44 | |
| CORONATION FUND MANAGERS LTD | 46 | |
| FOORD ASSET MANAGEMENT (PTY) LTD | 50 | |
| FUTUREGROWTH ASSET MANAGEMENT (PTY) LTD | 53 | |
| INVESTEC ASSET MANAGEMENT (PTY) LTD | 56 | |
| INVESTMENT SOLUTIONS LTD | 60 | |
| MOMENTUM ASSET MANAGEMENT (PTY) LTD | 63 | |
| MOMENTUM OUTCOME-BASED SOLUTIONS (PTY) LTD | 66 | |
| NBC HOLDINGS (PTY) LTD | 68 | |
| OASIS GROUP HOLDINGS (PTY) LTD | 71 | |
| OLD MUTUAL INVESTMENT GROUP (PTY) LTD | 73 | |
| PRESCIENT INVESTMENT MANAGEMENT (PTY) LTD | 78 | |
| PRUDENTIAL PORTFOLIO MANAGERS (SOUTH AFRICA) (PTY) LTD | 81 | |
| PUBLIC INVESTMENT CORPORATION SOC LTD | 84 | |
| SANLAM MULTI MANAGER INTERNATIONAL (PTY) LTD | 92 | |
| STANLIB ASSET MANAGEMENT LTD | 94 | |
| SYGNIA ASSET MANAGEMENT (PTY) LTD | 97 | |
| TAQUANTA ASSET MANAGERS (PTY) LTD | 99 |
