DEI in asset management – 27four launches SA’s first benchmarking framework

Financial services group 27four, today launched South Africa’s first benchmarking framework to measure DEI in the asset management sector. The framework was launched during a media event held at the JSE in Johannesburg.

The South African asset management industry is a complex landscape with an array of established and new entrants with new product ranges. There has also been clear progress towards creating a more inclusiveand diverse industry over the past few years.

27four’s CEO Fatima Vawda , expresses that “The 27four DEI Index framework offers a comprehensive approach to measuring DEI in South Africa’s asset management industry. It assesses asset managers across five key dimensions – ownership, representation, equity, impact, and governance -with the aim of driving transformation.

Evolution of Industry Research

She explains that this latest publication marks an evolution from their initial endeavour, which began in 2009 as the BEE.conomics Annual Transformation in South African Asset Management Survey.

“Since its inception, the BEE.conomics survey has served as an important instrument in raising awareness of the participation and representation of black people and women in asset management in South Africa. It has also become a reliable source of data for measuring the state of transformation in the sector and identifying trends shaping the future of the industry,” says Vawda.

The company collected data from 93 asset managers overseeing R8.42 trillion in assets. The report is freely available for download and reveals key insights into industry trends, best practices, and progress toward greater inclusivity and representation.

“This report not only reflects the current state of the industry but also serves as a roadmap for the future, outlining the steps needed to drive social progress, enhance financial outcomes, and foster innovation,” explains Vawda.

Some of the key findings:

• The top five asset managers oversee approximately 65% of the total market AUM, while the top 10 manage around 81%, and the top 20 account for 92%.
• Ninety One, sits as the top asset management group with a massive 35% market share and a total AUM of over R3 billion, with Stanlib and Coronation taking second and third position with an 8% and 7,5% market share respectively.
• The AUM distribution, with 60.5% invested locally and 39.5% offshore, reflects a balanced approach that aligns with South Africa’s exchange control restrictions.
• Public markets account for 90% of the total AUM, with private markets comprising four percent and six percent classified as “other.”
• Top DEI performers across different AUM categories include Old Mutual Investment Group (over R100bn AUM), Terebinth Capital (R30bn–R100bn AUM), Perpetua Investment Managers (R10bn–R30bn AUM), and Secha Capital (less than R10bn AUM).
• DEI scores vary significantly across firms, with a mean score of 45% and a range from 15% to 78%, reflecting the disparities in DEI performance across the industry.

Progress Positive in Ownership Numbers

“Our research has found that the industry has made progress in black ownership, with 74% of firms having over 51% black ownership. This indicates meaningful strides toward economic transformation. However, only 18% of firms have over 51% women ownership, revealing a substantial gender gap that reflects ongoing challenges in achieving gender equity in ownership,” adds Vawda.

While black individuals are represented in senior leadership roles (66% of CEOs are black, and 63% of chairpersons are black), women are significantly underrepresented. Only 18% of CEOs and 16% of CIOs are women. Women tend to occupy more entry-level positions, such as analysts, but face substantial barriers to progressing into senior decision-making roles like portfolio managers, where 76% of firms report less than 30% women representation.

The 27four DEI Index provides companies with a clear tool to evaluate, benchmark and strengthen their DEI practices, ensuring long-term, positive impacts on both their employees and the economy.  We believe better businesses build a better country. And ultimately, it’s all about the people we serve,” she says.