Alexforbes publishes 2024 Manager Watch Survey of Retirement Fund Investment Managers

Johannesburg, South Africa – 9 April 2025 – Alexforbes has released the December 2024 edition of its Manager Watch™ Survey of Retirement Funds Investment Managers, delivering rich insights into the evolving South African asset management landscape. The 30th anniversary edition marks three decades of data collection and industry analysis, tracking trends that continue to shape investment decisions across the country.

The latest survey includes 30 comprehensive surveys – 15 balanced, 14 specialist and one multi-manager – and reveals key trends in asset manager performance, B-BBEE credentials, investment strategies, and environmental, social and governance (ESG) integration.

Multi-Managers closing the gap on single managers

A notable shift in the investment management sector is the continued rise of multi-managers. Based on the June 2024 Alexforbes Assets under Management (AuM) survey, multi-managers have significantly gained ground on single managers over the past five years. In 2019, multi-managers managed just 15 cents for every R1 managed by single managers. By 2024, this had almost doubled to 29 cents.

Ninety One retained its position as South Africa’s largest single asset manager, showing a 4% increase in AuM compared to the previous year. STANLIB Asset Management held onto second place with a strong 10% asset increase. A reshuffle occurred in third position as SIM AM surged ahead with a 20% asset growth, overtaking both Coronation and Allan Gray.

On the multi-manager front, Alexander Forbes Investments further strengthened its market-leading position, moving up to sixth place overall after a 10% rise in assets, overtaking OMIG and affirming its solid trajectory.

B-BBEE ratings reach new highs

Transformation remains a central theme within the South African investment industry. The 2024 AuM survey shows that 52 of the 79 asset managers surveyed are now rated as level 1 B-BBEE contributors, up from 51 the previous year. All of the top 10, and 19 of the top 20, asset managers achieved level 1 status, underlining the industry's ongoing commitment to transformation and inclusive growth.

Positive returns across best investment view strategies

The survey also highlighted a strong performance across investment strategies. All asset managers in the SA Best Investment View (BIV) category posted positive returns for the year, with 8 of the 13 outperforming the BIV median return of 15.1%. The Global BIV category followed closely with a median return of 14.8%.

Of the 47 managers in the Global BIV category, 39 held more than 30% of their portfolios in global assets in December 2024, with 10 surpassing the 40% mark, indicating a more globalised investment approach in response to broader market opportunities.

Three decades of insights and industry reflection

To commemorate the 30th edition of the Manager Watch™ Survey, Alexforbes has published a feature article entitled The Alexforbes Manager Watch™ Series of Surveys: 30 Years of Insights. The article reflects on the evolution of South Africa’s investment landscape, drawing on three decades of data and trends. It is complemented by Celebrating 30 Years with Perspectives from Three Industry Leaders, featuring insights from respected industry voices Asief Mohamed, Natalie Phillips and Errol Shear.

Increased strategy participation reflects growth and innovation

Asset manager participation saw a net three-year increase of 2.2%, while strategy participation grew by 15.7% over the same period. In 2024, 92 asset managers and 797 strategies took part in the survey – a 5.7% and 6.4% increase, respectively, from the previous year.

The largest year-on-year increase was seen in the BEE survey, with strategy participation rising by 11.5%. Specialist categories like Global BIV and Specialist Bond strategies also grew steadily, reflecting the industry’s ongoing innovation and diversification.

Property sector rebounds strongly

The South African listed property sector was the standout performer of 2024. The SA Listed Property Index returned 28.96%, up from 10.1% in 2023. According to the SA Property Manager Watch™ survey, asset managers in the 75%-100% listed property category delivered an average return of 28.43%, with the top-performing fund achieving an impressive 33.96%.

Responsible Investment on the Rise

ESG continues to gain traction among local asset managers. The number of signatories to the Code for Responsible Investing in South Africa (CRISA) grew by 32%, from 56 in 2021 to 74 in 2024. Similarly, the number of asset managers signed up to the UN’s Principles for Responsible Investment (PRI) rose by 49% over the same period, reaching 64. These increases indicate the industry's growing commitment to responsible and sustainable investment practices.

Benchmarks and fees: Competitive and transparent

The SA Equity Manager Watch™ survey showed that the FTSE/JSE Capped SWIX ALSI remained the most used benchmark in 2024, used by 56.6% of equity strategies – up from 53.1% in 2023.

Fee comparisons across asset classes demonstrated a continued trend of fee transparency and competitiveness. For example, the average base fee for Domestic Equity Pooled funds stood at 0.68%, while Global BIV Pooled funds averaged 0.83%. Domestic Money Market Pooled funds remained the most cost effective, averaging 0.21%.

Looking ahead

As the South African investment landscape continues to evolve, the Alexforbes Manager Watch™ Survey remains a critical barometer for the industry. By providing deep insights into manager performance, strategic shifts, regulatory developments and client trends, the survey supports better decision-making by institutional investors, trustees and fund stakeholders.

With 30 years of industry insights behind it, the Manager Watch™ series continues to provide valuable guidance for asset managers and retirement funds in South Africa.

You can view the full survey here