{"id":183559,"date":"2017-07-09T18:00:22","date_gmt":"2017-07-09T16:00:22","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=183559"},"modified":"2017-07-09T10:50:41","modified_gmt":"2017-07-09T08:50:41","slug":"how-south-africas-billionaires-invest-their-money","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/183559\/how-south-africas-billionaires-invest-their-money\/","title":{"rendered":"This is how South Africa’s billionaires invest their money"},"content":{"rendered":"

AfrAsia Bank and New World Wealth have released a new report on the wealth management space in Africa, detailing how the South Africa and the continents\u00a0wealthy individuals invest their money.<\/p>\n

“Wealth management” is defined as the provision of banking services to wealthy individuals (HNWIs) and their families. It generally involves: financial planning, inheritance planning and the allocation of client funds.<\/p>\n

According to the report,\u00a0African wealth management market is valued at US$132 billion (R1.7 trillion) (as of December 2016). Around US$76 billion (R1 trillion) of this is held in South Africa.<\/p>\n

The report\u00a0estimates that the African wealth management market will grow by 7% per annum over the next 10 years, with the\u00a0most promising emerging African markets for private banking being Mauritius and Kenya.<\/p>\n

The following table lists the main players in the African wealth management space, ranked by Africa sourced \u201cassets under management\u201d (AuM).<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rank by Africa sourced AuM<\/th>\nBase<\/th>\nAfrican AuM (US$ Billion)<\/th>\n<\/tr>\n
Investec<\/td>\nSA\/UK<\/td>\n24<\/td>\n<\/tr>\n
RMB<\/td>\nSA<\/td>\n11<\/td>\n<\/tr>\n
UBS<\/td>\nSwiss<\/td>\n8<\/td>\n<\/tr>\n
PSG<\/td>\nSA<\/td>\n7<\/td>\n<\/tr>\n
Nedbank<\/td>\nSA<\/td>\n6<\/td>\n<\/tr>\n
Sanlam<\/td>\nSA<\/td>\n5<\/td>\n<\/tr>\n
Credit Suisse<\/td>\nSwiss<\/td>\n4<\/td>\n<\/tr>\n
Standrd Bank<\/td>\nSA<\/td>\n3<\/td>\n<\/tr>\n
ABSA (Barclays Bank)<\/td>\nSA\/UK<\/td>\n3<\/td>\n<\/tr>\n
Old Mutual<\/td>\nSA<\/td>\n2<\/td>\n<\/tr>\n
Momentum Group<\/td>\nSA<\/td>\n2<\/td>\n<\/tr>\n
Citadel<\/td>\nSA<\/td>\n2<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Breakdown of family offices<\/strong><\/h3>\n

According to the report, family offices\u00a0are the fast growing wealth management segment in Africa and throughout the world. Family offices provide a far more personalized service than normal wealth managers. Additional services they offer include: managing household staff, property management, philanthropy coordination and managing family education.<\/p>\n

Typically family offices are exclusively for family members and their related trusts, foundations, charities, non-profit organizations and family-related investment vehicles.<\/p>\n

In comparison, single-family offices (SFO) generally take the form of a private company that manages the investments and trusts of ultra-wealthy individuals (normally with net assets of more than $100 million) and their extended family. Typically, an SFO has a small team consisting of a lawyer, an investment specialist and an accountant.<\/p>\n

Multi-family offices (MFO)\u00a0are a significant number of families with between $30 million and $100 million in assets that do not have the economies of scale to establish stand-alone family offices. MFOs cater to these families and allow them to share administrative costs. Stonehage Fleming is a notable MFO with a presence in Africa.<\/p>\n

Behavioral mapping of HNWIs\u00a0<\/strong><\/h3>\n

According to NWW\u2019s South Africa 2017 Wealth Report, the country has a total of 40,400 dollar millionaires, and has many as 2,130 individuals with more than R125 million in their account.<\/p>\n

The following figure highlights the inclination of different wealth bands in Africa to invest in the various asset classes.<\/p>\n

The preference rankings are based on the propensity of a particular wealth band to invest in each asset class when compared with members of the other wealth bands.<\/p>\n

As reflected, lower-tier millionaires in Africa have a high propensity to hold cash and residential real estate, while billionaires tend to invest in collectables, commodities and other alternatives assets such as private equity.<\/p>\n

Affluent millionaires in Africa are most likely to invest in fixed income products and equities, NWW said.<\/p>\n

\"\"<\/a><\/p>\n

\n

Read:\u00a0These 15 cities have the most ultra-rich residents<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

AfrAsia Bank and New World Wealth have released a new report on the wealth management space in Africa, detailing how the South Africa and the continents\u00a0wealthy individuals invest their money with.<\/p>\n","protected":false},"author":10,"featured_media":74328,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[26],"class_list":["post-183559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/183559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=183559"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/183559\/revisions"}],"predecessor-version":[{"id":184315,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/183559\/revisions\/184315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/74328"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=183559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=183559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=183559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}