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Asset Management
SANLAM and Absa have reached an agreement to combine their investment management businesses. This major move will result in an asset management company with assets under management of more than R1 trillion. The transaction will see Absa exchange its investment management business, Absa Investments, for a stake of up to 17.5% in Sanlam Investment Holdings (SIH). Absa Investments comprise Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers (excluding the Absa Prudential Money Market Fund) and Absa Multi Management. According to both companies, clients of the combined SIH business will benefit from access to a wider range of investment solutions to meet their financial needs.
Medical Cover
MEDIHELP Medical Aid says it will reduce the prices by an average of 5.57% on four of its options and will implement an average increase of 2.74% on the rest of its plans for 2022, resulting in a weighted average contribution decrease of 0.45%. The value of available benefit amounts on all options has been increased by, on average, 4.2%. The scheme also introduced two new plans for 2022, addressing the need for more affordable alternatives that enable members to retain membership amid economic pressure. “Medihelp has priced the 2022 products to ensure that members have continuous healthcare cover, recognising the financial strain being experienced by all,” says Ettie da Silva, principal officer of Medihelp.
Household wealth
THE Allianz global financial services group’s 12th Global Wealth Report, which assesses the asset and debt situation of households in almost 60 countries, reports that gross financial assets of
South African households rose by 5% in 2020. The main driver was bank deposits, which rose by 11.3%, the fastest increase in six years. Insurance and pension fund assets, the most popular asset class in South Africa, accounting for more than half of all financial assets, grew by only 2.3%. Market-related investments showed solid performance, increasing by 6.1%, on par with 2019. Household debt increased by 4.3%, against an average increase of almost 6% in the previous three years.
Competition
AFTER a year hiatus because of the pandemic, the Financial Sector Conduct Authority has announced the return of its Financial Literacy Speech Competition for schools this year. Piloted in 2016, the contest has grown into a national event with an impact on the lives of over 3 000 learners, their teachers, and families.
The speech competition targets Grade 11 learners majoring in business studies, economics and accounting subjects. This year’s event will be held virtually.
There are prizes of R30 000, R15 000 and R7 500 for the top three positions per province. At the national finals, a further R30 000, R15 000 and R7 500 will be handed out. Three full bursaries will be up for grabs over and above the prizes. Check out the FSCA’S social media pages using #FLSC2021SA.