“ Number of private bank and wealth manager clients climbs 5% in the past year ”

- 2016 Top Private Banks & Wealth Managers survey

“ Increasing demand by clients to move investments offshore ”

- 2016 Top Private Banks & Wealth Managers survey

“ Only 4% of SA's fresh fruit is exported to Africa ”

- 2014 NDP Report

“ NDP aims to ensure an African language is taught in every school by 2019 from 10% currently ”

- 2014 NDP Report

“ NDP aims to improve life expectancy from 61.3 years to 70 years by 2030 ”

- NDP Report 2014

“ 28% of stockbroking clients trade ETFs, up from 18% in 2013 ”

- 2015 Top Stockbrokers Survey

“ 14% of stockbroking clients trade CFDs, down from 21% in 2013 ”

- 2015 Top Stockbrokers Survey

“ 90% of stockbroker clients are long-only equities traders ”

- 2015 Top Stockbrokers Survey

“ NDP target: 90% of households to have minimum sanitation standards by 2019 from 84% now ”

- 2014 NDP Report

“ Total revenue for wealth firms and private banks grew by an average of 22% in the past year ”

- 2016 Top Private Banks & Wealth Managers survey

“ Asset managers applying pressure to justify costs of research ”

- 2016 Ranking the Analysts survey

“ Regulators want asset managers to justify costs to end clients ”

- 2016 Ranking the Analysts survey

“ NDP goal: by 2019, 75% of pupils in grades 3, 6 and 9 should score at least 50% in literacy, maths and science ”

- 2014 NDP Report

“ 83% of clients rate their stockbroker good or excellent ”

- 2015 Top Stockbrokers Survey

“ 60% of stockbroker clients execute only one to three trades a month and 6% do more than 12 ”

- 2015 Top Stockbrokers Survey

“ Separating research and execution costs proving difficult ”

- 2016 Ranking the Analysts survey

“ Analyst time still skewed towards those firms that pay a lot for dealing ”

- 2016 Ranking the Analysts survey

“ Private banks and wealth managers manage assets worth close to R700bn ”

- 2016 Top Private Banks & Wealth Managers survey

“ The total value generated from BEE deals by the top 100 JSE-listed companies in the 20 years to end-2014 is R317bn ”

- The value of BEE deals

“ Staff schemes have gained R52bn in BEE deals by the top 100 JSE-listed companies over 20 years ”

- The value of BEE deals

“ Strategic investors have gained R196bn in BEE deals by the top 100 JSE-listed companies over 20 years ”

- The value of BEE deals

“ Community schemes have gained R69bn in BEE deals by the top 100 JSE-listed companies over 20 years ”

- The value of BEE deals

“ Mining has been the biggest creator of value in both absolute and relative terms in total BEE deals by the top 100 JSE-listed companies ”

- The value of BEE deals

“ Website security and platform efficiency are the most important factors to stockbroker clients ”

- 2015 Top Stockbrokers Survey
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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.