“ 57% of clients rate their broker's service as excellent, up from 40% last year ”

- 2017 Top Stockbrokers survey

“ 6% of stockbroker clients execute trades worth more than R100,000 a month ”

- 2017 Top Stockbrokers survey

“ 40% of stockbroker clients average monthly trades of R5,000 or less ”

- 2017 Top Stockbrokers survey

“ 52% of clients have assets under management of between R1m and R3m ”

- 2018 Top Private Banks & Wealth Managers Survey

“ 39% of wealth clients have been with the same firm for more than 10 years ”

- 2018 Top Private Banks & Wealth Managers Survey

“ Of the 100 largest JSE-listed companies, 87 conducted BEE deals, 35 of which included public benefit organisations ”

- 2017 Empowerment Endowment

“ R32.6bn in endowments are now held by foundations set up as a result of BEE deals that will support charitable activities ”

- 2017 Empowerment Endowment

“ 50% of clients rate their wealth manager as excellent and 31% as very good ”

- 2018 Top Private Banks & Wealth Managers Survey

“ 33% of clients rate the value for money they get from wealth managers as excellent, against 18% for transactional banking ”

- 2018 Top Private Banks & Wealth Managers Survey

“ R51.6bn value created specifically for charitable recipients through BEE deals ”

- 2017 Empowerment Endowment

“ 81% of clients are very likely or extremely likely to recommend their wealth manager to friends of family ”

- 2018 Top Private Banks & Wealth Managers Survey
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The value of BEE deals

Thursday, 25 June 2015

Press release

The value of BEE deals research findings released by Intellidex

Research released today has revealed that BEE deals done by the JSE’s 100 largest companies have collectively generated R317bn of value for beneficiaries. This is the first time a number has been put to the value of BEE deals which have been an important component of the transformation of the SA economy.

To download the full report, click here.

To download an Excel spreadsheet of all deals, click here.

To download the launch presentation, click here.

Undertaken by Intellidex, a leading South African capital markets and financial services research house, the project took six months to complete and involved comprehensive analysis of every company’s deals. The value represents the net asset value after all debt and other financial obligations are deducted. Of the total, 34% (or R108bn) has been generated by BEE deals that have matured and are no longer encumbered by trading restrictions or financial obligations (meaning that beneficiaries are free to use the value as they see fit), while 66% (or R209bn) has been generated by schemes that are still ‘live’, but are expected to mature within the next few years.

The research found that R52bn (16%) of the total is attributable to staff schemes, R196bn (62%) to strategic investment partners and R69bn (22%) to broad-based community schemes. Strategic partners are companies and prominent individuals, but often have broad bases of beneficiaries. Community schemes, by contrast, are usually non-profit trusts that provide a long-term annuity stream for beneficiaries.

“The amount generated shows that recent statements that BEE deals do not create substantial value are false,” says Intellidex chairman Stuart Theobald, who led the project. “What was particularly interesting is to see the value that staff and communities have derived. The numbers indicate that many poor and working class black South Africans now have access to significant resources because of BEE deals. To get a sense of the scale of the value, consider that it is 1.8 times the total corporate income tax take in 2014 and is enough to purchase the entire stock of planted agricultural land and machinery in the country.”

The findings reveal that 2014 saw the biggest amount ever in maturing deals with almost R60bn accruing to beneficiaries. The largest was FirstRand’s deal worth R23bn, followed by Sanlam’s deal worth R14bn and Standard Bank’s R11bn. Various live deals are promising to deliver large numbers when they mature, including ones by Exxaro (R17bn) and Naspers (R14bn).

For further information, please contact:

Lingo Communications

Gwen Paulson
T +27 (0)11 447 0321C +27 (0)82 451 9440E gwen@lingocom.co.zawww.lingocom.co.za
 

Facts for Editors:

Intellidex is a research house founded in 2008 by Stuart Theobald, Chia-Chao Wu and Vuyo Jack. It undertakes a wide range of research on South Africa’s capital markets and financial services industry both for clients and for publication to the public. It has offices in Sandton and in London. For more information see www.intellidex.co.za.

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To contact Intellidex regarding further information on our BEE research, please click here.