South Africa's asset management landscape is a dynamic and ever-evolving arena, with the country's largest asset managers constantly vying for the top spot. The latest survey by Alexforbes reveals that Ninety One remains the undisputed leader, but the race for second and third place is hotly contested. This article delves into the findings, offering a comprehensive analysis and commentary on the industry's trends and the factors driving these shifts.
The Rise of Multi-Managers
One of the most intriguing trends in South Africa's asset management industry is the steady growth of multi-managers. In 2019, for every R1 managed by single managers, multi-managers held 15 cents. Fast forward to 2025, and this ratio has more than doubled to 30 cents. This growth is particularly impressive given the strong performance of the overall asset management industry, which saw AUM grow by 14% year-on-year. The survey attributes this to major asset managers overhauling their offerings or launching competitors in the multi-manager space.
Old Mutual's rebranding of its multi-manager offering to Symmetry is a notable example. This move not only showcases the company's adaptability but also highlights the increasing importance of multi-manager strategies in the market. Additionally, the ongoing rivalry between Alexforbes and Sanlam in this space further underscores the competitive nature of the industry.
The Impact of Market Performance
The asset management industry has been significantly boosted by the JSE's strong performance over the past 18 months. This surge in precious metals prices and improving investor sentiment towards South Africa have played a pivotal role in driving the industry's growth. The survey's findings reflect this, with major asset managers experiencing substantial growth in their assets under management (AUM).
Ninety One, despite its significant offering based primarily in the United Kingdom, retained its position as the largest asset manager in the country. However, the survey's focus on South African clients may not fully capture the company's global scale. With over R3 trillion in AUM, Ninety One's influence extends far beyond its domestic market.
Distribution and Reintegration
The reintegration of Liberty into the Standard Bank Group has been a game-changer for Stanlib. This move has provided the company with enhanced distribution capabilities, allowing it to sell products into the bank's client base. As a result, Stanlib has shown strong year-on-year growth, reaching R804.42 billion in AUM. This strategic partnership highlights the importance of distribution networks in the asset management industry.
South African Equities and Exposure
Coronation's displacement of Sanlam Investment Managers (SIM) as the third-largest asset manager is notable. Coronation's relatively high exposure to South African equities has contributed to its AUM surge of 17% year-on-year. This shift in rankings underscores the impact of investment strategies and market performance on asset managers' performance.
The Role of Insurers
It's important to note that South Africa's largest insurers have multiple asset managers under their umbrellas. The combined assets of these insurers would place them among the largest investment managers in the country. For instance, Sanlam has three asset managers in the top 20 largest in the country, with combined local assets exceeding R1 trillion. Similarly, Old Mutual has four asset managers in the top 20, with comparable combined assets.
Conclusion
In conclusion, South Africa's asset management industry is characterized by intense competition, strategic partnerships, and a dynamic market environment. The survey's findings highlight the ongoing evolution of the industry, with multi-managers gaining ground and market performance playing a pivotal role. As the industry continues to adapt and innovate, asset managers must stay agile and responsive to changing market conditions. The race for the top spot remains fierce, and the future of this industry will be shaped by the strategies and decisions of these key players.
