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    The Retirement Funding Industry in South Africa 2022

    Yasmin Mahomedy | South Africa | 30 September 2022

    The Retirement Funding Industry in South Africa 2019

    Carole Veitch | South Africa | 30 May 2019

    The Retirement Funding Industry in South Africa 2017

    LOUISE MITCHELL | South Africa | 22 June 2017

    The Retirement Funding Industry in South Africa 2015

    Elaine de Villiers | South Africa | 31 July 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on retirement funding in South Africa includes information on the state and size of the industry, its major players and various corporate actions and developments, as well as regulatory and other developments that affect the sector. There are profiles of 26 companies including all the notable pension funding players such as Sanlam, Ninety One, Old Mutual, Coronation, Allan Gray and the state-owned Public Investment Corporation

    Retirement Funding in South Africa

    South Africa’s retirement industry, with assets in excess of R4.6tn, has one of the highest assets to GDP ratios in the world, but only 7 to 10 million individuals have retirement savings products, out of an employed labour force of about 15 million. Treasury is planning to implement a two-pot system, where all pension funds, pension preservation funds, provident funds, provident preservation funds or retirement annuity funds will have to allocate contributions from 1 March 2023 to a new retirement pot and a savings pot. At present fund members have to either resign or be retrenched before they can get access and cash out their entire pension funds.

    Recent Changes

    South Africa’s retirement funds sector experienced significant change in the past few years, largely focused on stronger regulation to protect members’ interests. This includes the proposed two pot system, which entails creating a savings portion and a preservation portion with a third going to an accessible savings pot and two thirds to a retirement pot subject to full preservation until retirement. According to draft legislation published for public comment by Treasury on 31 July 2022, the two-pot system will be implemented from 1 March 2023, although it would more likely happen in three to five years.

    New Regulations

    The offshore limit on South African asset allocation of 30% globally and 10% in other African markets have been combined into one limit of 45%, and there are new allocation limits for local infrastructure projects, which are expected to encourage private retirement savings funds to fund infrastructure. Both are expected to significantly change investment opportunities for fund managers.

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    The Retirement Funding Industry in South Africa 2022

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    Industry Overview

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    The Retirement Funding Industry in South Africa 2019-05-30

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    The Retirement Funding Industry in South Africa 2017-06-22

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    The Retirement Funding Industry in South Africa 2015-07-31

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    2.3. Size of the Industry 5
    2.4. Key Success Factors and Pain Points 8
    3. LOCAL 8
    3.1. State of the Industry 8
    3.2. Key Trends 13
    3.3. Notable Players 14
    3.4. Corporate Actions 17
    3.5. Regulations 18
    3.6. Enterprise Development and Social Economic Development 21
    4. AFRICA 24
    5. INTERNATIONAL 25
    6. INFLUENCING FACTORS 27
    6.1. COVID -19 27
    6.2. Economic Environment 27
    6.3. Labour 29
    6.4. Retirement Reform 30
    6.5. Corruption 30
    6.6. Technology, Research and Development (R&D) and Innovation 31
    6.7. Complaints and the Office of the Pension Funds Adjudicator 32
    6.8. Environmental, Social and Corporate Governance (ESG) 33
    7. COMPETITIVE ENVIRONMENT 33
    7.1. Competition 33
    7.2. Ownership Structure of the Industry 35
    7.3. Barriers to Entry 35
    8. SWOT ANALYSIS 36
    9. OUTLOOK 36
    10. INDUSTRY ASSOCIATIONS 37
    11. REFERENCES 37
    11.1. Publications 37
    11.2. Websites 38
    Appendix 1 39
    Summary of Notable Players 39
    COMPANY PROFILES 42
    Absa Asset Management (Pty) Ltd 42
    Alexander Forbes Investments Ltd 44
    Allan Gray (Pty) Ltd 46
    Aluwani Capital Partners (Pty) Ltd 49
    Argon Asset Management (Pty) Ltd 51
    Camissa Asset Management (Pty) Ltd 53
    Coronation Fund Managers Ltd 55
    Foord Asset Management (Pty) Ltd 59
    Futuregrowth Asset Management (Pty) Ltd 61
    MandG Investments Southern Africa (Pty) Ltd 63
    Marriott Asset Management (Pty) Ltd 66
    Mazi Asset Management (Pty) Ltd 68
    Mergence Investment Managers (Pty) Ltd 70
    Momentum Outcome-Based Solutions (Pty) Ltd 72
    NBC Holdings (Pty) Ltd 74
    Ninety One SA (Pty) Ltd 77
    Oasis Group Holdings (Pty) Ltd 79
    Old Mutual Investment Group (Pty) Ltd 81
    Prescient Investment Management (Pty) Ltd 84
    Public Investment Corporation SOC Ltd 86
    Sanlam Multi Manager International (Pty) Ltd 93
    Sesfikile Capital (Pty) Ltd 95
    Stanlib Asset Management (Pty) Ltd 97
    Sygnia Asset Management (Pty) Ltd 100
    Taquanta Asset Managers (Pty) Ltd 102
    Truffle Asset Management (Pty) Ltd 104

    Report Coverage

    This report is on retirement funding and provides information of size and state of retirement funding in South Africa, on the continent and internationally as well as the factors influencing the sector. There are comprehensive profiles of 27 public and private companies in the sector. These include the Public Investment Corporation, which manages the Government Employees Pension Fund, with 1.27 million members and assets under management totalling around R1.8-trillion. There are profiles of notable private sector players such as Old Mutual, which has significantly restructured and Alexander Forbes, which has undergone senior management changes.

    Retirement Funding

    The South African retirement funding sector, with assets in excess of R4.26-trillion, has the fifth highest assets-to-gross domestic product ratio in the world. However, less than 10% of retirement fund members are able to maintain their standard of living when they stop working and 41% of economically active South Africans have not made any provision for their retirement. Total membership of retirement funds rose from 16.6 million to 16.9 million in 2017, while total retirement fund contributions increased by 5.06% and total benefits paid decreased by 3.47% year-on-year.

    Changing Regulations

    On 1 March 2019, amendments to the Pension Funds Act came into effect. These seek to ensure that pensioners have enough money to live on in their retirement by making it mandatory for funds to provide their members with counselling on retirement and to offer pension options that are affordable and appropriate. The reforms require retirement funds to improve fee disclosure and provide cost-effective annuity strategies for their members. A proposal by the ANC to introduce prescribed investments for pension funds has been met with some resistance. Several commentators have warned that pension funds could collapse if the government is allowed to dictate to fund managers how to invest retirement fund assets.

    Pensions Under Pressure

    High levels of poverty and unemployment make adequate provision for retirement difficult for many South Africans, while increased longevity is one of the main factors contributing to the unsustainability of post-retirement income provision. Role players report that returns on investments of the average balanced fund remain on a downward trajectory.

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    The Retirement Funding Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

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    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

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    Historical Reports

    The Retirement Funding Industry in South Africa 2022-09-30

    R 9 500.00(ZAR) estimated $507.31 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2017-06-22

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2015-07-31

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 7
    4.1. Local 7
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 12
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 18
    5. INFLUENCING FACTORS 19
    5.1. Social Security System 19
    5.2. Economic Environment 20
    5.3. Retirement Reform 20
    5.4. Technology, Research and Development (R&D) and Innovation 21
    5.5. Labour 23
    5.6. Complaints and the Office of the Pension Funds Adjudicator 24
    5.7. Environmental, Social and Corporate Governance (ESG) 25
    6. COMPETITION 25
    6.1. Barriers to Entry 26
    7. SWOT ANALYSIS 27
    8. OUTLOOK 28
    9. INDUSTRY ASSOCIATIONS 28
    10. REFERENCES 29
    10.1. Publications 29
    10.2. Websites 29
    APPENDIX 1 31
    Types of Funds Subject to the Pension Funds Act 31
    APPENDIX 2 34
    Summary of Notable Players 34
    APPENDIX 3 36
    Market Indices and Statistics as at 31 December 2018 36
    COMPANY PROFILES 37
    ABSA ASSET MANAGEMENT (PTY) LTD 37
    AHI ASSET MANAGEMENT (PTY) LTD 39
    ALEXANDER FORBES INVESTMENTS LTD 41
    ALLAN GRAY (PTY) LTD 43
    ALUWANI CAPITAL PARTNERS (PTY) LTD 46
    ARGON ASSET MANAGEMENT (PTY) LTD 48
    CORONATION FUND MANAGERS LTD 50
    FOORD ASSET MANAGEMENT (PTY) LTD 54
    FUTUREGROWTH ASSET MANAGEMENT (PTY) LTD 56
    INVESTEC ASSET MANAGEMENT (PTY) LTD 58
    KAGISO ASSET MANAGEMENT (PTY) LTD 60
    MARRIOTT ASSET MANAGEMENT (PTY) LTD 62
    MAZI ASSET MANAGEMENT (PTY) LTD 64
    MERGENCE INVESTMENT MANAGERS (PTY) LTD 66
    MOMENTUM OUTCOME-BASED SOLUTIONS (PTY) LTD 68
    NBC HOLDINGS (PTY) LTD 70
    OASIS GROUP HOLDINGS (PTY) LTD 73
    OLD MUTUAL INVESTMENT GROUP (PTY) LTD 75
    PRESCIENT INVESTMENT MANAGEMENT (PTY) LTD 79
    PRUDENTIAL PORTFOLIO MANAGERS (SOUTH AFRICA) (PTY) LTD 82
    PUBLIC INVESTMENT CORPORATION SOC LTD 85
    SANLAM MULTI MANAGER INTERNATIONAL (PTY) LTD 92
    SESFIKILE CAPITAL (PTY) LTD 94
    STANLIB ASSET MANAGEMENT (PTY) LTD 96
    SYGNIA ASSET MANAGEMENT (PTY) LTD 99
    TAQUANTA ASSET MANAGERS (PTY) LTD 101
    TRUFFLE ASSET MANAGEMENT (PTY) LTD 103

    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.

    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.

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    The Retirement Funding Industry in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

    Buy Now +

    Historical Reports

    The Retirement Funding Industry in South Africa 2022-09-30

    R 9 500.00(ZAR) estimated $507.31 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2019-05-30

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2015-07-31

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    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).

    Read More..
    The Retirement Funding Industry in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.02 (USD)*

    Buy Now +

    Historical Reports

    The Retirement Funding Industry in South Africa 2022-09-30

    R 9 500.00(ZAR) estimated $507.31 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2019-05-30

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    The Retirement Funding Industry in South Africa 2017-06-22

    R 1 900.00(ZAR) estimated $101.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

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