“ 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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Category: INTELLIDEX NEWS

Boutique scoops Wealth Manager honours

The 2018 Wealth Manager of the Year is Gradidge-Mahura Investments. The boutique firm, that celebrates its 10th birthday this year, dominates this year’s survey, also being ranked the People’s Choice of Top Wealth Manager, as well as being ranked the top wealth manager in two client archetypes: the young professional and the lump-sum invest

NFB Private Wealth Management is the 2018 Top Wealth Management Boutique while Standard Private Bank is this year’s Top Banking Services Firm.

 

Sanlam Private Wealth wins top manager award in the highly competitive Internationally Wealthy Family category and PSG Wealth rounds off the archetype awards, taking top honours in the Successful Entrepreneur segment.

Click here for Intellidex’s summary report on the survey. The full editorial report will be published in this week’s (June 28) FM Investors Monthly magazine.

Amount invested in tax-free savings accounts doubles over the last year

A total of R5,174bn has been invested in tax-free savings accounts as at end-February 2017, close to double the R2,6bn from a year earlier. And 459,848 TFSAs have been opened since inception in March 2015, with 207,172 of those having been opened in the 12 months to end-February 2017.

The average account value is R11,251.

Those are the headline numbers from a survey of all TFSA providers conducted by financial research house Intellidex in March this year, covering to 28 February 2017, the end of the tax year.

This is Intellidex’s third survey on the TFSA market. It sourced figures from all TFSA providers in SA, gathering information for the 12 months to 28 February 2017, adding to data collected on the previous two years since TFSAs were launched. The study focused on all TFSA providers including stockbrokers, asset managers, banks and life insurers.

A total of 26 firms responded to a questionnaire sent in March 2017, though some were from different divisions of the same firm (eg, banks’ cash and stockbroking TFSA offerings). We estimate the sample includes more than 95% of the universe by assets and the results are a reliable guide to total market activity.

The main goals of the survey are to assess the impact of TFSAs on savings behaviour in South Africa and on institutions in the investment industry and the products they develop.

The full report can be accessed at www.intellidex.co.za/tfsa2017.

Other key findings include:

  • A total of 207,172 accounts were opened in the 12 months to end-February 2017 (averaging 567 accounts a day).
  • The net number of accounts opened (after incorporating accounts closed) rose by 39% from the previous year.
  • Respondents believe that 13% of TFSAs opened in the year to end-February 2017 are by first-time savers, indicating that the accounts do have a reasonable effect in galvanising people to become savers. It should be noted that an unknown number of these are held by minors, where parents have effectively donated the balance.
  • About 70% of the assets held in TFSAs are new to the firms that manage them (rather than being transferred from existing investments). While some of these would have accrued to the firms in the absence of TFSAs, it does indicate that the TFSAs provide a means for firms to attract new assets.
  • Of the 207,172 new accounts opened in the 2016/17 tax year, 157,331 (76%) of clients held existing accounts with their TFSA provider.
  • Cash TFSAs offered by banks continue to dominate the market. The major asset class held in TFSAs is in the form of cash at just over 47% (from 51% the previous year), followed closely by equities, which rose from 36% to 40%.
  • However, the other asset classes have seen strong growth in average account balances compared with banks. Total equities under management more than doubled to over R2bn. Similarly, the average value in collective investment schemes grew 29% to R27,452, while that of life insurance accounts rose by 16% to R16,680. In contrast, the average account value for bank balances barely changed.
  • An estimated 49,841 TFSAs, or 13% of all accounts, have been opened by first-time savers since inception.
  • Appears that annual limits are not serving as a hindrance to low-income earners, with only about 8% of new accounts invest the full amount on opening the account.

Intellidex launched the website savetaxfree.co.za last year to help savers identify account providers. The site has tools to assist users to identify accounts that match their needs, with more than 500 hits per day. The survey of TFSA providers helps regulators and those in the market understand the trends and features of tax-free savings market.

Top Private Banks and Wealth Managers Survey 2017

Standard Bank emerges as the Top Private Bank & Wealth Manager of the Year.

Last year’s overall winner, Sanlam Private Wealth, put in another strong performance to secure second place, holding off a surging Nedbank Private Wealth, which displaces PSG Wealth from third place.

But the eye-opening move comes from one of the smaller players, Brenthurst Wealth Management, which wins the Top Wealth Management Boutique award and secures fifth place in the overall rankings, ahead of some of the bigger, muscular players in the market.

Verso Wealth, in its debut year of participation in our survey, wins the People’s Choice award as Top Wealth Manager. In the private banks category, Investec Private Bank wins the People’s Choice award for the fifth time – a truly remarkable achievement. It is clearly a cut above the rest when it comes to its ability to satisfy clients.

Verso Wealth is a new company to the survey but was formed in 2015 through a merger with Galileo Capital Grow, a unit of Galileo Capital which won this same award last year. Clearly, Verso is maintaining the high standards of customer service.

This year almost 6,000 clients participated in the online survey – a massive increase on last year when 2,732 clients participated. The high number of participants entrenches the credibility of the survey findings.

The top three firms overall, Standard, Sanlam and Nedbank, between them hoovered up all the archetype awards, awarded to firms that best cater to a specific income segment.

Click here for Intellidex’s summary report on the survey, or click here for FM Investor’s Monthly survey coverage.