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
Introduction
• South Africa’s retirement industry, with assets in excess of R4.6tn, has one of the highest assets to GDP ratios in the world.\r\n
• However, only 7 to 10 million individuals have retirement savings products, out of an employed labour force of about 15 million. \r\n
• The retirement funding industry is going through major changes with a new two-pot retirement savings system where all pension, provident and retirement funds will have to allocate contributions to a retirement pot (two thirds) and a savings pot (one third). \r\n
• A retirement survey showed an increasing number of South Africans are unsure if they can afford to retire.
Strengths
• The industry is well-established, stable, and financially sound.
• The regulatory environment is well governed.
Weaknesses
• High barriers to entry.
• Low financial literacy.
• South Africans generally lack a savings and investment culture.
• There is a lack of meaningful pre-retirement advice and overall communication could be improved.
• Under-saving for retirement remains a significant challenge in South Africa.
Opportunities
• Development of online retirement planning platforms and mobile technologies.
• Increased retirement fund membership, which remains at a low level.
• Two-pot system will present a balance between ensuring preservation of retirement savings and allowing some withdrawals through a savings vehicle.
Threats
• Domestic and global economic pressures.
• Fraud, misconduct, and mismanagement.
• The rising cost of living makes it difficult for investors to balance their short-term income needs with longer-term savings.
• Volatile markets.
Outlook
• South Africa’s new two-pot system has been welcomed by the industry as it will lead to increased preservation of retirement savings, which will ultimately lead to better retirement outcomes. \r\n
• Industry sources say the outlook is promising as the industry has scale and the skills to provide cost efficient and secure vehicles for saving for retirement.\r\n
• However, the volatile market environment, weakened GDP outlook, and pressures on household finances are affecting consumer savings.
Full Report
R 6 500.00(ZAR) estimated $372.44 (USD)*
Industry Landscape
R 4 550.00(ZAR) estimated $ 260.71 (USD)*
Historical Reports
The Retirement Funding Industry in South Africa 2019-05-30
R 1 900.00(ZAR) estimated $108.87 (USD)*
View Report Add to CartThe Retirement Funding Industry in South Africa 2017-06-22
R 1 900.00(ZAR) estimated $108.87 (USD)*
View Report Add to CartThe Retirement Funding Industry in South Africa 2015-07-31
R 1 900.00(ZAR) estimated $108.87 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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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 |