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TransformationRetirement Industry
Asief MohamedABSIP FSC Council Member
CIO Aeon Investment Management
Why Transformation?
• 10% owned 90% of Wealth• Inequality Gap increasing• World Bank Gini coefficient
• South Africa 65• USA 41• World 43 (1820) to 68
• BBBEE is Voluntary• Local procurement, job creation, skills• Reducing inequality gap• Poverty reduction• ABSIP - grow the economic pie
Investment Management FSC Report
Source: FSC Council Draft 2013 Annual Report
• Investment Management firms achieved Level 3 BBBEE rating
• Expect only firms with good scores to report
• Only 8 out of 75 investment management firms reported
Investment Management a Proxy
20 Years of Democracy• Key Black Investment Professionals 15% at
Top 10 firms• Key Women Investment Professionals 12% at
Top 10 firms
27four Bee.conomics 2014 survey
What can be done by IRFA?
• IRFA Full constituent member of Financial Sector Charter Council
• BBBEE should be integral part of ESG
• Public Policy Influence
• Apply BBBEE Generic Scorecard • Except Socio-Economic & Enterprise Development
dti BBBEE Generic Scorecardfor Retirement & Umbrella Funds
• Ownership• Measure member asset or liability by gender & race• Enable companies to take credit for worker ownership via retirement funds• Encourages wealth distribution to workers and increased productivity• Higher ownership threshold targets to be set
• Management Control• Trustees and executive management
• Procurement• Measure all aspects of the investment value chain including brokerage, custodians,
administrators and investment management firms etc.• Skills development• Socio economic & Enterprise development should be exempt
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