Economic Transformation Specialists
Economic transformation is important for South Africa. It will help to reduce inequality, create jobs, promote sustainable development, address historical injustices, and attract investment. Retirement Funds and corporates have a key role to play in truly transforming and developing South Africa.
Watch this short introductory video of Mark Davids, Founder and Managing Director of Motswedi
Motswedi Mission Statement
To help develop the South African economy, through the asset management industry, by encouraging economic transformation, financial inclusion, gender equality, pay equity, job creation, and social equity in a systematic and responsible way, both in the listed and private markets. In doing so, to stimulate the asset management industry to deliver a more competitive and vibrant environment for capital investors.
Overview
Motswedi provides a specialist advisory and multi-management service to support retirement funds and corporates, in either the management of their funds’ assets or the disbursement of enterprise and supplier development (ESD) spend. Its focus is on researching and advising on the placement of monies with black-owned asset managers, in both the listed and private markets space.
Our Clients Include …
The Importance of Economic Transformation and Financial Inclusion
Economic transformation is crucial for South Africa because it is a key component in addressing the country’s socio-economic challenges and achieving sustainable development. South Africa is a middle-income country with significant income inequality, poverty, and unemployment rates. Economic transformation aims to create a more inclusive economy that benefits all South Africans, including historically marginalised groups such as black people, women, and youth.
Financial inclusion refers to the process of providing access to financial services and products to individuals and businesses who are excluded from the traditional banking system. This can include services such as savings accounts, loans, insurance, and payment systems. The lack of financial inclusion is a significant problem in many developing countries and for disadvantaged populations around the world.
Without access to financial services, individuals may be forced to rely on informal or unsafe financial systems, limiting their economic opportunities and making it difficult to save for the future. Overall, financial inclusion is essential for promoting economic growth, reducing poverty, and improving the lives of individuals and communities around the world. As custodians of most of South Africa’s savings, the asset management community has a vital role to play in achieving economic transformation and financial inclusion, starting with their own industry.
Currently less than I 0% of the savings pool is managed by organically grown black-owned asset managers and transformation at decision making level has been limited to-date amongst a small number of mainstream providers. Motswedi exists to support retirement funds in finding and investing with/supporting quality black-owned asset managers.
Motswedi also serves corporates in the management of their enterprise and supplier development (ESD) programs for the recognition of maximum B-BBEE points. This involves the allocation of financial resources and investments towards initiatives that promote business growth and enhance supplier capabilities, like the development of black-owned asset managers. These programs are designed to support businesses, entrepreneurs, and suppliers through funding, loans, grants, subsidies, and other incentives.
How you will benefit
For Retirement Funds, you will:
1. Identify the Best Managers
Follow sound advice based on the in-depth (and ongoing) due diligence of black-owned asset managers, each rated according to specific detailed criteria.
2. Create Tangible Impact
By supporting up-and-coming, black-owned asset managers, you will accelerate economic transformation, social equity, and financial inclusion in South Africa.
3. Achieve Strong Returns
Statistics prove conclusively that the investment performance of black-owned asset managers is consistently competitive versus the peer group.
4. Manage Your Risk
You are able to identify and monitor areas of risk that may impact the sustainability of your chosen asset managers.
5. Exceed the requirements of COFI
The COFI bill, (Conduct of Financial Institutions), aims to introduce a more comprehensive regulatory framework for financial services. Retirement funds will be impacted as they will need to adhere to stricter standards of reporting, governance and accountability, including requiring funds to support and enhance black ownership and financial inclusion in their activities.
For Enterprise & Social Development Programmes (ESD) you will:
1. Achieve Sustainable Results
Support select black-owned asset managers through grants and loans as they scale from start-up to going concern and ultimately a sustainable and competitive enterprise.
2. Create Meaningful Impact
Promote financial inclusion, economic development and transformation, and forge a more competitive and efficient asset management industry.
3. Enhance your B-BBEE Scorecard
Improve your company’s B-BBEE rating by maximising points available using a proprietary funding model developed by Motswedi.
4. Benefit from Streamlined Administration and Reporting
Have a greater impact by supporting multiple parties while avoiding the hassle of having to administer and liaise with each individually.
Key Motswedi Features
Research
The Motswedi investment team has approximately 100 interactions/meetings (including annual due diligence) with black-owned asset managers every year. This culminates in a range of client friendly notes and reports, click here to receive sample of manager research reports – and a detailed scoring and ranking of the available manager set, all of which is made available to clients.
Co-ordination and Record Keeping
Motswedi co-ordinates and consolidates all asset manager interactions and reporting for its clients, click here to receive an example of our reporting.
Governance Oversight and Team
To provide independent oversight and additional experienced input, Motswedi presents its research to an investment committee.
Flexible Access for Retirement Funds and their Advisors
To fit your budget and compliment your existing advisory relationships, Motswedi provides 3 ways of accessing its research and advice:
Bronze
R4,259 pm
Subscribe and join a monthly on-line webinar @ R4,259 + VAT per month and receive one free hour per month of one-on-one time to address specific queries you may have.
Silver
R36,500 pm
Motswedi attends your meetings either in person or on-line and provides advice and monitoring of your black-owned asset managers/selection thereof @ est. R36,500 + VAT per month.
Gold
0,2% per annum
Access Motswedi’s multi-managed solutions consisting of only black owned asset managers @ 0,2% per annum + VAT on assets invested.
Find out more about the available black-owned asset manager universe in South Africa
Access our video archive and research on economic transformation and black-ownership in the SA asset management industry
Click here to find our more about the Motswedi multi-managed solutions
Subscribe to our quarterly newsletter and monthly black-owned asset managers performance surveys
Join our quarterly webinar series. The next edition starting in Oct 2023
