Daily Insider: Are asset managers fiddling while their Rome is starting to burn?

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Are asset managers fiddling while their Rome is starting to burn?

South Africans caught with their hands in the cookie jar have a peculiar habit of brazening it out, ignoring the criticism because they believe it will go away. Despite our efforts to engage, only one of the asset managers exposed by Sean Peche in Wednesday’s blockbuster responded. Good on you PSG. Then again, given the character and integrity of the Moutons, no surprise to me. 

Those running the worst offenders are acting as though the whole Performance Fee ripoff is someone else’s problem. Coronation announced on SENS yesterday that “Imvula II Trust”, presumably with management’s blessing, bought R57m worth of the company’s shares. It also celebrated CEO Anton Pillay’s appointment as the new chairman of industry body ASISA.

And at another of SA’s Big Three, Ninety One, CEO Hendrik du Toit, CFO Kim McFarland and three other execs disclosed on SENS that earlier this week they bought R6m worth of the company’s shares on the open market. An obvious bet that the status quo will continue. 

After yesterday’s raid on their life assurance cousins, perhaps the asset managers who harvest uniquely SA “performance fees” (even when they lose money) from retail investors will realise their profit gouging days are drawing to a close. Then again, maybe not. 

* PS: A massive shout out for gifted writer Robyn Louw whose moving article about underdogs, published on BizNews, earned her the title as the country’s best racing journalist at the industry’s annual awards on Wednesday night. Great stuff Robyn! Here’s the link to her masterpiece. 

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