“ 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
Facebook Twitter Linkedin

Latest News

Intellidex releases new study on BEE trusts and foundations

Finds substantial investment, that if well managed, could have significant impact on future of SA, particularly in most deprived areas

21 August 2018 – Johannesburg – New research released today by Intellidex, the finance research and consulting house, shows the charitable and community components of some of the 100 largest JSE companies’ empowerment deals have a net asset value of R37bn and to date have disbursed some R3.3bn in public benefit projects.

The full report can be downloaded here.

The research report interrogates the governance, trust and asset management, fund disbursement policies and beneficiary strategies. The report concludes that a trust’s operating model shapes its performance in each of these aspects.

Entitled Understanding Empowerment Endowments, the findings show nearly two thirds – 64% – of these trusts have been running for 10 years or more but 80% do not have an investment policy statement, which indicates that they do not have an explicit investment strategy for their assets.

The report, funded by Tshikululu Social Investments, covers 25 trusts created by some of the 100 largest companies on the JSE.

Graunt Kruger, Global Head of Strategy Research at Intellidex and a co-author of the study said: “This is the first report of its kind that delves into the detail of Black Economic Empowerment (BEE) foundations. We hope that this will serve as a platform for sharing knowledge between the BEE foundations, their sponsor companies, policy makers and other interested stakeholders. There is certainly a need for greater cooperation and knowledge sharing between these trusts and others as they examine the challenges highlighted in this report.”

Tracey Henry, CEO of Tshikululu Social Investments said: “Our study highlights how these trusts have evolved over time as they have matured and become more responsive to the changing needs of the country’s development challenges. These trusts are by no means the silver bullet to rid us of all social ills, but their track record shows that if they are strategic in their intent and well managed that they have, and can continue to make, an important contribution to the social impact investing landscape and most importantly the intended beneficiaries.”

The report’s main findings are:


– More than half of the foundations were registered between 2003 and 2005 with more than a third being registered in 2005 alone. Only one trust was launched before the BBBEE Act of 2003.

– Seventy six percent are perpetual trusts and will continue operating as long as they are able to generate income from their assets. Six out of the 25 trusts have a fixed life span.

– The sizes of boards varied considerably. The average number of board members was six, with least being two and the most 11.

– None of the trusts are fully operationally independent from their sponsor companies – even those whose deals have matured and are not restricted from selling their shares.

Trust management 

– Trusts are managed according to one of four models based on whether they have dedicated staff; the staff are co-located with sponsor company staff; they outsource key operations of the trust; and whether they have their own or shared office space.

– The largest salary bill, 67% of the total salary bill of all trusts in this study, is in the group that largely runs its own operations, and does not rely on the sponsor company. Five trusts in this category spend R26m a year on salaries alone.

Asset management

– The net asset value of R37bn reflects like-for-like growth of about 31% from the value estimated by Intellidex in June 2017.

– Most of the BEE foundations in this report do not have appropriate policies and procedures for asset management or investment or finance committees to oversee risk management, governance and compliance.

– Most of the foundations hold investment portfolios that consist only of their sponsoring company’s shares, largely because they are still restricted from selling. This represents a highly inefficient investment strategy.

– Dividends are the lifeblood of all perpetual foundations. All the foundations studied were entitled to receive a portion of dividends – called a “trickle dividend” – accruing to their shareholding even before they have fully settled the debt obligations.

Fund disbursement

– The 25 trusts have collectively committed almost R4.5bn to funding projects to benefit their beneficiaries.

– Disbursement budgets have grown by 44% in 2018 from 2017.


– Trusts are focused on spending their endowments on disadvantaged groups in South Africa.

– Sixty seven percent of the spending was directed at a variety of education initiatives.

< Ends >

Intellidex is a leading research and consulting firm that specialises in capital markets and financial services. Its analysis is used by investors, stockbrokers, regulators, lawyers and companies looking to understand capital markets in Africa. Its market and strategy research is used by banks, fund managers, stock brokers, wealth managers and other financial service providers to better understand their market places.

www.intellidex.co.za | @Intellidex on both Twitter & Facebook.

Founded in 1998, Tshikululu Social Investments is South Africa’s most experienced manager and advisor of corporate foundations and development trusts. Working with clients, developmental agencies and other collaborative partners, Tshikululu’s core purpose is to achieve deep and sustainable change for a greater good that results in positive social impact. This is done through bespoke strategy design, hands-on programme management and tailored social investment solutions, enabling social investors to realise their goals in ways that benefit them and South Africa as a whole.

www.tshikululu.org.za | @Tshikululu on both Twitter & Facebook.

For more information contact:

  • Graunt Kruger, Global Head of Strategy Research, Intellidex: +1 (617) 817-5304 or gkruger@intellidex.co.uk; OR
  • Nikki Griffiths, Chief Operating Officer, Tshikululu Social Investments: +27 82 304 8405 or ngriffiths@tshikululu.org.za ; OR
  • Jennifer Kann, Managing Director, Lingo Communications +27 83 455 3289 or jennifer@lingocom.co.za

Press release: Intellidex demands retraction of tweet by John Hempton

UPDATE: Subsequent to our lawyers’ letter and the below release, John Hempton posted this retraction and apology on Twitter.


Our lawyers have today written to Australian hedge fund manager John Hempton demanding that he retract and apologise for a tweet in which he accuses Intellidex of accepting bribes, apparently in respect of our report Investment Research in the Era of Fake News: A study of activist short selling and Viceroy Research. Should Hempton not comply with this demand, we will take action on the basis of legal advice.

The legal letter can be downloaded here, and the relevant tweet is here.

For the record, Intellidex applies the strictest standards of ethics in all its work and would not take bribes or any inducement to bias any of its work. In the case of the Viceroy report, we accepted the commission from Business Leadership South Africa on condition that we were contractually guaranteed editorial independence, that the report would be published regardless of our findings, and that all remuneration was paid to us prior to publication of our final report.

These conditions were set to ensure the independence of our research. BLSA complied with these conditions. All remuneration received was from BLSA in terms of this agreement.

The report was written by four analysts with strong research credentials including two PhD-holders. Two of the report’s authors hold the Chartered Financial Analyst designation and are subject to the Code of Ethics and Standards of Professional Conduct of the CFA Institute. Intellidex has a 10-year track record of producing high quality research.

We have publicly released our report under our own name and we stand by our findings. None of the analysts had any exposure to the instruments mentioned in the report.

Says Intellidex chairman Stuart Theobald: “We take our professional and ethical commitments very seriously. I would welcome the opportunity to demonstrate this to a court.”

The full report can be downloaded here.

For any queries, please email media@intellidex.co.za.


Research in the Era of Fake News

12 July 2018

Intellidex today released an in-depth study into short selling, with a particular focus on Viceroy Research. Viceroy has been prominent in the South African market, having produced reports on Steinhoff and Capitec, but has also produced reports on companies in Australia, Germany and the United States.

The full Intellidex report can be downloaded here.

Some of the findings of Intellidex’s research are:
• Prior to Viceroy’s research report on Steinhoff, its research received little media attention internationally. The Steinhoff report, however, received significant coverage and thereafter there was extensive mention of Viceroy in the media. In the aftermath of shock revelations of accounting irregularities at Steinhoff, there was a desperate need for information, which Viceroy was able to fulfil.
 After the Steinhoff report, rumours of Viceroy research targets alone would move share prices, while actual releases had a dramatic impact on share prices, with Capitec being the clearest example.
 However, based on our analysis discussed in our main report, we find that Viceroy’s Steinhoff report was substantially plagiarised from a report produced by hedge fund Portsea Asset Management six months earlier. Viceroy’s contribution of original content to the report appears to be negligible. While the Steinhoff report and related media coverage gave Viceroy considerable influence, in our view this was misplaced given that, according to our research, the Steinhoff report was substantially not its own work. On the contrary, Viceroy’s influence benefited from little more than timing, with its report published just two days after the Steinhoff saga hit the news, when the market was extremely eager for any insight on what had gone wrong at Steinhoff.
 Viceroy’s quality of research, which was already patchy, appears to us to have deteriorated after the Steinhoff report, particularly in the case of Capitec and Advanced Micro Devices (AMD), and to some extent ProSieben. We provide our analysis of the quality of these reports in our main report. Nevertheless, these reports had a significant impact on share prices, particularly Capitec and ProSieben. Our view is that this impact resulted from the influence Viceroy had gained from the widely circulated and cited Steinhoff report, rather than from the content of those reports.

For more details, please contact us.