Cape Town: Old Mutual Alternative Investments (OMAI), a boutique of Old Mutual Investment Group, has announced an agreement to acquire the 50% of African Infrastructure Investment Managers (AIIM) that it does not already own, making it the sole shareholder of the pan-African infrastructure investment manager.
AIIM was established in 2000 as a 50/50 joint venture between OMAI and Macquarie Infrastructure and Real Assets (MIRA). Over the last 15 years, AIIM has developed into one of Africa’s leading infrastructure investment managers with a pan-African remit.
Paul Boynton, CEO of OMAI, says that the transaction allows Old Mutual to secure a business with strategically significant growth opportunities. “The global alternative investment industry is estimated to be worth around $13 trillion by 2020, and is predicted to be the fastest growing segment of the asset management industry globally over the next 10 years. In addition, the African market is becoming increasingly attractive to global investors and as an established pan-African asset manager, AIIM is ideally positioned to capitalise on this key growth sector,” he explains.
“We are excited about the ownership of a business which has shown an excellent track record for investors over a 15-year period. AIIM is recognised as one of Africa’s market leaders in infrastructure transaction execution and asset management and is increasingly seen as a partner of choice by infrastructure investors and developers alike,” says Boynton. “We couldn’t have asked for better results from AIIM when we first established the joint venture with MIRA and we are excited about the investment pipeline AIIM faces and the opportunity we see to deploy investor capital for attractive returns.”
Boynton further explains that the transaction underlines Old Mutual’s overall African strategy, which focuses on expanding its presence in Africa where infrastructure plays a crucial role. “This acquisition facilitates the leveraging of AIIM’s resources and infrastructure across the broader Old Mutual Group, while also broadening Old Mutual’s geographic footprint, most notably in Africa, and introducing new client opportunities for the enhancement of cross-selling and distribution opportunities.”
Jurie Swart, CEO of AIIM, says that given their strong focus on Africa, Old Mutual is a natural fit for AIIM. “We have enjoyed a strong and fruitful relationship with MIRA for 15 years, and this transaction is a mutual decision by the shareholders to give AIIM the optimal structure to support its future growth. Africa is still climbing the agenda for investors worldwide and we are excited about the opportunities presented by the alignment of the Old Mutual and AIIM strategies to capitalise on this growth,” explains Swart.
“We remain an autonomous business, as we have been since inception in 2000,” Swart adds. “AIIM will continue to create value for investors, while making a tangible contribution to African economies and communities. AIIM has established local offices in South Africa, Nigeria and Kenya and the depth of knowledge and experience within the AIIM team is exemplary,” he explains.
Cape Town – At 15.4% of its GDP, South Africa has one of the worst savings rates in the world. And it’s getting worse, according to statistics released by the Reserve Bank.
And it’s not just that our salaries are low and our cost of living is high – the Chinese earn less than we do, and they manage to save over 50% of their GDP, according to the Financial Services Board (FSB). India manages to save about 30%, Brazil around 25%, and Australia about 22.5%.
The highest this figure has been in South Africa in the last 13 years is 17.2%, which was recorded in 2002. The lowest was 14.7%, which was recorded in 2009, shortly after the worldwide recession on 2008.
These savings include pension contributions, and all forms of investment. In short, says the FSB, to save means spending less than you earn, and it encourages people to adjust their lifestyle so that they can contribute a part of their income to a savings scheme.
But, according to SA government statistics, South Africans are now borrowing more money than they are saving. Household debt as a percentage of household income now stands at approximately 80% (this includes loans, overdrafts, credit card debt, home loans, accounts). In the United States, the household debt-income ratio stands at 138%.
Only a quarter of those between the ages of 18 and 30 are saving for retirement, according to the Old Mutual Savings and Investment Monitor. Only 31% are saving for possible emergencies, while 35% are saving for a car and 26% to pay off debt. But the rising cost of living is also affecting this sector of the population, as 68% of them have said they had to reduce their expenditure in 2014, up from 55% the previous year.
The South African Savings Institute gives a number of reasons for the low savings rate in SA:
* low disposable income growth;
* low employment growth;
* a rising tax burden;
* an inflationary environment; and
* lack of confidence in the future.
The Old Mutual Savings and Investment Monitor published in July 2014 provided some interesting statistics on South African households and their savings and spending habits:
* 65% of income is spent on consumables and living expenses;
* 38% of those interviewed said they were saving less than in 2013;
* 50% believe that death, funeral and disability cover are more important than retirement savings;
* 18% of households in the R40 000+ income category have unit trusts, mutual funds or exchange-related funds;
* 32% of parents are saving for their children’s education; and
* 45% of black households contribute to at least one stokvel per month.
The attitude to retirement savings mentioned above also explains why only 6% of SA retirees are financially independent at retirement. The rest are dependent on their families, friends, or the government, according to the FSB.
The savings rate is determined by looking at household savings, savings in the public sector and savings in the corporate sector. According to stats from the Reserve Bank, both the public and private sector were actually ‘dis-savers’ (borrowing more than they were saving) and the corporate sector was the only net contributor to gross savings. But that, at 4.2% was also not as high as it could be, according to the South African Savings Institute.
The reasons they give for this low rate in the corporate sector include the following:
* a lack of profitable investment opportunities;
* high cost of capital;
* labour market inflexibility;
* high corporate taxes; and
* short-term behaviour.
So if and when South Africans do save, what are their priorities? The following statistics from Old Mutual paints an interesting picture, especially as retirement savings and saving for funeral expenses come in at the same rate:
* 43% save for a rainy day;
* 37% save for retirement;
* 37% save for funeral expenses;
* 22% save for children’s education;
* 18% save to pay off debt;
* 16% save for home improvements; and
* 13% save for a vehicle.
In an effort to encourage South Africans to save more, National Treasury has introduced the Tax Free Savings Account from 1 March 2015.
Nedbank strives to be Africa’s most admired bank. That’s why we are always looking to appoint the kind of people who can Make Things Happen. Through the Nedbank Bursary Fund, bursaries are made available to help academically able students meet the costs associated with studying at higher-education institutions.
The bursary covers the cost of fulltime tuition, registration, examination and compulsory charges, prescribed textbooks, university residence accommodation and meals.
Eligibility criteria include South African citizenship, Nedbank transformation targets, academic achievement (an average pass mark of at least 65% and meeting all registration criteria of a South African public university or university of technology), a financial-means test, and whether the proposed intended degree addresses an identified scarce skill at Nedbank.
Bursary applications to fund the next academic year will be accepted from 1 February to 30 April annually.
If you’re thinking of studying for a degree at a university but do not have the financial means, the Nedbank Bursary Fund is your opportunity towards attaining a better future. Learn more
At Aurecon, we know we are only as strong as our people. And we believe that our business’ future relies on the education and skills of tomorrow’s leaders. So we invest in various bursary programmes, to help develop and support passionate, driven and innovative individuals.
Aurecon bursaries are awarded to deserving students for studies at various tertiary institutions in fields specifically related to the company’s activities. Students from approved universities which offer programmes that lead to professional careers in engineering are considered, with bursaries available for students studying towards a Bsc or Bend in the fields of Civil, Mechanical or Electrical Engineering.
We fund up to R80,000.00 (subject to change) per annum to every bursar to support them in their studies. We also provide practical training applicable to the qualification, as required by their educational institution. Learn more
Old Mutual is the largest and most well-established financial services provider in Southern Africa. Our proud heritage and prominent position in the industry is reflected in our operational strength and performance (across all our business interests), our robust balance sheet, powerful financial flexibility (with access to international capital markets) and our diversity of business. Read more about Old Mutual .
Well-trained, qualified accountants contribute significantly to the success of Old Mutual and South Africa. That’s why we offer bursaries to the best young financial minds, to people who are passionate about pursuing a career in Chartered Accounting and making a real difference!
Old Mutual Accountancy Bursaries cover:
- The full costs of tuition at University of Cape Town (UCT).
- Residence fees and one annual return flight home for students who are not studying in their hometown.
- Vacation work.
- The better the quality of your degree the more incentives you will be offered.
- Book and general allowance.
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