Wealth Advisory Newsletter

Assets under management continues to flourish despite the COVID-19 pandemic

The global asset management industry enjoyed sustained positive growth over the course of last year despite the COVID-19 pandemic, according to Moneyweb. In its latest report, Global Markets 2021: Continued Growth in Uncertain Times, consultancy Cerulli Associates finds that assets under management (AUM) in the industry globally grew by 10.3% in 2019 and 4.1% last year.

“COVID-19 has had less of an impact on the global asset management industry than many expected at the start of the pandemic,” said André Schnurrenberger, MD, Europe at Cerulli Associates.

Mboweni unleashes relief package but warns SA’s finances under pressure

Former Finance Minister Tito Mboweni has warned that though the government will be funding the massive economic relief package, the country’s finances remained at substantial risk, Business Report reports. Mboweni presented the relief package to support unemployed people and businesses affected by the recent unrest in KwaZulu-Natal and Gauteng that is expected to amount to R38.9 billion of on-budget items, including revenue measures of R5bn and spending measures of R33.9bn. Enoch Godongwana has since taken over the role from Mboweni following his resignation.

Banking sector unveils relief measures for customers affected by unrest

According to the Business Report, the Banking Association of South Africa (Basa) struck a deal with South Africa’s banks that the Saswitch fee, which customers pay for using ATMs that do not belong to their own bank, will be cancelled for two months with effect from 1 August. This was in response to the recent civil unrest during which some ATMs in Gauteng and KwaZulu-Natal were damaged. Meanwhile, Standard Bank announced that it had scrapped ATM Saswitch fees permanently.

Absa has also announced relief measures to assist customers and communities. “The measures include the reduction of Saswitch fees for two months and the reintroduction of payment relief to assist retail customers with existing credit facilities who have been impacted by the unrest,” according to Business Report.