Most of South Africa’s asset management firms are either privately held or sit within broad larger entities, such as financial institutions.
Within those broader groups, the performance of the tied asset managers is largely inconsequential in terms of group share performance. However, there are a few truly independent listed asset management firms that are worth a look for retail investors.
The lack of independent listed options is not surprising when one considers their business models – generally light on capital expenditure, with the only real cost being employees. There is almost never a reason to tap the markets for capital, though Sygnia’s acquisition of DBX demonstrates its utility in certain cases.