Transformation Retirement Industry Asief Mohamed ABSIP FSC Council Member CIO Aeon Investment Management.

TransformationRetirement Industry

Asief MohamedABSIP FSC Council Member

CIO Aeon Investment Management

Why Transformation?

• 10% owned 90% of Wealth• Inequality Gap increasing• World Bank Gini coefficient

• South Africa 65• USA 41• World 43 (1820) to 68

• BBBEE is Voluntary• Local procurement, job creation, skills• Reducing inequality gap• Poverty reduction• ABSIP - grow the economic pie

Investment Management FSC Report

Source: FSC Council Draft 2013 Annual Report

• Investment Management firms achieved Level 3 BBBEE rating

• Expect only firms with good scores to report

• Only 8 out of 75 investment management firms reported

Investment Management a Proxy

20 Years of Democracy• Key Black Investment Professionals 15% at

Top 10 firms• Key Women Investment Professionals 12% at

Top 10 firms

27four Bee.conomics 2014 survey

What can be done by IRFA?

• IRFA Full constituent member of Financial Sector Charter Council

• BBBEE should be integral part of ESG

• Public Policy Influence

• Apply BBBEE Generic Scorecard • Except Socio-Economic & Enterprise Development

dti BBBEE Generic Scorecardfor Retirement & Umbrella Funds

• Ownership• Measure member asset or liability by gender & race• Enable companies to take credit for worker ownership via retirement funds• Encourages wealth distribution to workers and increased productivity• Higher ownership threshold targets to be set

• Management Control• Trustees and executive management

• Procurement• Measure all aspects of the investment value chain including brokerage, custodians,

administrators and investment management firms etc.• Skills development• Socio economic & Enterprise development should be exempt