Another year has come and gone and the South African asset management industry continues to reinvent itself. Consolidation has accelerated, new leadership is stepping forward, technology is reshaping the value chain, and investment vehicles are continuing to evolve.
| Another year has come and gone and the South African asset management industry continues to reinvent itself. Consolidation has accelerated, new leadership is stepping forward, technology is reshaping the value chain, and investment vehicles are continuing to evolve. | DOWNLOAD PDF |
All of this is happening against a backdrop of global cost pressure, fee compression and shifting investor demands and asset managers are being forced to adapt to remain relevant and competitive.
In this article, we explore the biggest corporate developments, key people moves and market trends.
Following the Ninety One/Sanlam deal announced in November 2024, corporate activity among asset managers increased,. It was a landmark transaction whereby Ninety One became Sanlam’s primary active asset-manager for single-managed local and global products, with preferred access to Sanlam’s South African distribution network.
Consolidation continues to be driven by rising costs — you need scale to benefit — the right product blend to remain adviser and investor relevant, and transformation (B-BBEE) requirements. Notable transactions include:
Across these deals, the guiding motives are clear: cost efficiency, operational leverage and distribution demands. As technology demands rise and regulation grows more complex, asset managers are seeking partners to pool fixed costs, unlock new markets and strengthen product breadth.
2025 saw influential leadership changes:
And stalwarts retiring included:
These transitions highlight a generational handover. New leaders who will navigate a far more complex and globally competitive industry.
Although global assets under management have recovered strongly, margins have not. Fee compression is now structural rather than cyclical, and South Africa is no exception. The free pressure on traditional active strategies continues with rising regulatory and reporting requirements and rapid tech adoptions — AI, data, cybersecurity etc. — requiring investment.
In 2022 the JSE rules changed allowing for the listing of actively managed ETFs competing with collective investment schemes and there are now more than 20 active managed ETFs. Asset managers like Prescient, Coronation and Ninety One have launched several active ETFs, converting existing popular unit trust strategies into the listed format to offer investors broader access and distribution channels. As South Africa’s retail market shifts toward direct investment platforms and tax-advantaged savings products, active ETFs are likely to become a competitive product.
Private assets remain a relatively small share of retirement fund portfolios in South Africa — around 7% according to the 27four survey — but momentum is building. Drivers include the search for uncorrelated returns and demand for infrastructure and economic transformation. Globally retail investor access is expanding via platforms and semi-liquid private markets funds.
AI and automation are reshaping investment processes with quant-supported idea generation and machine-assisted research. Operational productivity is being improved through client servicing chatbots, workflow automation and better data governance. While still early days, the asset managers investing now will be best placed as digital differentiation widens the competitive gap.
To enhance competitiveness and broaden product capability, local managers have been forming strategic partnerships with global asset managers over the past few years. These collaborations provide access to international investment expertise, distribution networks, and scalable operating platforms. Over the past year Old Mutual Symmetry announced a strategic partnership with Russell Investments, and Mentenova partnered with SEI.
2025 has been another eventful year, with never a dull moment. We witnessed new leadership, an array of mergers and acquisitions with several trends gaining traction, such as the launch of more active ETFs and local managers building offshore partnerships.
As we head into 2026, we expect managers to continue focusing on scale, product relevance, and operational efficiency. Therefore, we expect a continued trend toward consolidation as managers seek to strengthen their capabilities in an increasingly competitive landscape.
More importantly, investments into technology, data and AI are rapidly shaping what competitive advantage looks like. Those who adapt quickly will not only remain relevant, they will define the next decade of investing in South Africa.