AMMF #58: New property fund, bitcoin wallet, SA investor behaviour

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Welcome to our asset management marketing focus

This week’s roundup brings you information on a new property fund and a recently launched bitcoin wallet, sheds light on South African investment trends and provides advice on how fund marketers can attract more millennial investors.

Website Spotlight: Coronation Fund Managers

One of South Africa’s biggest asset managers, Coronation Fund Managers, has an engaging website that is easily navigated.

The home page has direct links to their funds and investment application pages, but also features some industry insight articles as well as educational blogs on investing with Coronation. So, no matter what your objective is – whether you want to invest or simply learn about the industry – you’ll know where to find the information you seek.
The ‘Choose a Fund’ page asks the investor a range of questions to determine which funds might be best suited to their needs. This makes it easy enough even for inexperienced investors to understand.
The actual fund pages are well laid out with all the information you need available on the web page, so you don’t have to download a pdf document to learn about each fund (although comprehensive fund fact sheets are also available for download should you wish to do so).
Fund performance is communicated through interactive graphs, adding to a pleasant user experience. As an added bonus, Coronation also has a tool that enables you to compare up to five of their funds across a number of characteristics like objective and fee structure, which aids users in their decision-making process.

Fund in Focus: Zimbali Capital

Kuwait’s IFA Hotels & Resorts has entered into a joint venture with boutique financial consulting firm Jaltech to create a new R2 billion property fund, Zimbali Capital, as reported by IOL. Zimbali Capital is a Section 12J Venture Capital Company through which IFA and its partners will raise capital for their hospitality and student housing products.
IOL notes that Section 12J is a relatively new income tax dispensation which may assist small and medium enterprises (SMEs) to raise capital from South African taxpayers.
“South African taxpayers are incentivised to invest into Zimbali Capital by receiving a return on their full investment and a tax deduction on their taxable income before the end of the 2018 tax year. This deduction results in a tax credit between 28% and 45% dependent on whether the investor(s) are individuals, companies and/or trusts,” the article states.
Werner Burger, CEO of IFA Hotels & Resorts, South Africa states: Zimbali Capital will not only provide a vehicle for South African taxpayers to reduce their tax liability but also an exceptional investment opportunity through its hospitality and student housing products.

Firm in Focus: Investec Asset Management

Investec Asset Management will become a separate entity,  carved out of the specialist bank and listed on the London Stock Exhange with a secondary listing on the Johannesburg Stock Exchange.
According to a media release on the Investec website “this move ensures Investec Asset Management is a focused, independent asset manager, a position appreciated and valued by investment management markets. It also provides a platform from which to invest for better client outcomes and growth.”
The news was well received, with Investec shares climbing by 10% right after the announcement.
After the separation of Investec Asset Management from the remaining Investec Group, Hendrik du Toit, who currently heads up the asset management business, will lead the new listed entity as Executive Chairman.
Alongside Fani Titi, who is Investec chairman, du Toit will serve as joint CEO from October 1 until the completion of the demerger, which is expected in 12 months, Moneyweb has reported.

Industry Insights

South Africans not saving enough for retirement

A recent study by 10X Investments found that 62% of South Africans are not confident that they will be able to draw an income in retirement, while 41% of people have made no provision for retirement at all.
The 10X Retirement Reality Report, that is the result of a survey of more than 1-million South Africans, also states that 53% of people don’t know what their pension is worth and more than 40% of women across all demographics have no investments or savings or investments in any form.
Emma Heap, Head of Growth at 10X Investments, said: “If women aren’t investing their money for growth they will have little chance of beating inflation and having enough money to draw a decent income after retirement.
“Hopefully the report will inspire women to take control of their finances and ensure their money is working as hard for them as they are for it.”

Sustainability is key

More than half of South African investors would rather invest in sustainable investments funds rather than those that do not consider sustainability factors, with 76% of people having increased their investments in sustainable funds over the past five years, the Schroders Global Investor Study has found.
The report also states that sustainable investments currently represent 45% of South Africans’ investment portfolios.
As reported by IOL Personal Finance, Jessica Ground, global head of stewardship at Schroders, says the survey underlines the surge of interest in sustainable investing globally, but especially in South Africa. “The study confirmed that 88% of South African investors indicated that sustainable investing is more important to them now than it was five years ago, compared with 76% of investors globally.

Fintech News

1 in 5 new funds a crypto fund

New research by Crypto Fund Research has shown that one out of five hedge funds launched this year have been cryptocurrency-focused.
According to the research 90 crypto hedge funds were launched in the first three quarters of 2018 with around 120 crypto funds expected to be launched this year in total. This makes up exactly 20% of the around 600 hedge funds that are expected to be launched this year in total.
As reported by, the research also shows that about half of the crypto hedge funds launched this year were based in the U.S. However, Australia, China, Malta, Switzerland, the Netherlands and the U.K have all seen multiple cryptocurrency hedge fund launches in 2018, too.

8 SA fintechs get funding

Rand Merchant Investment (RMI), through its incubation and investment vehicle for local financial services startups AlphaCode, has awarded entrepreneurial packages valued at R16 million to eight of South Africa’s most promising financial services startups.
ITWeb reported that the eight were awarded entrepreneurial packages valued at R2 million each. R1 million is in the form of grant funding and R1 million in development support, which includes mentorship, monthly expert-led sessions, exclusive office space in Sandton, marketing, legal and other business support services, as well as access to the broader RMI network.

New app to send bitcoin cash launched

South African fintech Centbee has launched its Bitcoin Cash wallet app in beta. With the app users can send Bitcoin to people in their contact lists.
In an article published on Coingeek, Lorien Gamaroff, co-CEO of Centbee, said the app’s key focus is to make sending Bitcoin BCH “as simple as possible.”
“In just a few taps, users can send Bitcoin Cash to anyone, anywhere at the lowest possible cost,” Gamaroff said. “Bitcoin Cash will be adopted globally as the best way to pay, especially in Africa and other developing markets.”
The app has been in alpha testing since June. At the time, Testnet coins were provided as demo money so users can try out how the app works without using real money. With the beta launch, Centbee users can now transact using real Bitcoin Cash.

Millennials Matter

Research has found that South African millennials are not investing as much as they need to for a comfortable retirement.
This is problematic, both for the younger generation who are not building enough wealth for a comfortable future and for the investment industry that is losing future investors.
In light of this, we’ve put together a guide on what fund marketers can do to attract more millennial investors. Watch the video below for more and download the full report by completing the form.

Leandi Kolver

Leandi Kolver

Customer Product Marketing Manager at Kurtosys