“ This year, as well as in 2016, the bulk of assets under management per client were between R3m and R10m ”

- 2017 Top Private Banks & Wealth Managers survey

“ 60% of private bank clients rate the quality of advice they receive as ‘very good’ or ‘excellent’ ”

- 2017 Top Private Banks & Wealth Managers survey

“ The percentage of private banking clients who feel they receive excellent value for money decreased from 25% in 2016 to 17% this year ”

- 2017 Top Private Banks & Wealth Managers survey

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

- 2017 Empowerment Endowment

“ Assets under management of R5.5 trillion, up from R4.7 trillion last year, while they spent about R1.9bn in brokerage last year and the previous year. ”

- 2017 Ranking the Analysts survey

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

- 2017 Empowerment Endowment

“ The percentage of wealth management clients who are “extremely likely” to recommend their institution declined to 53% from 78% last year ”

- 2017 Top Private Banks & Wealth Managers survey

“ This year, 35% of wealth management clients say they receive excellent value for money, down from 54% last year ”

- 2017 Top Private Banks & Wealth Managers survey

“ More than 70% or wealth management clients rate the quality of the advice they receive as ‘very good’ or ‘excellent’ ”

- 2017 Top Private Banks & Wealth Managers survey

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

- 2017 Empowerment Endowment
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Researching Capital Markets and Financial Services

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.