Black Economic Empowerment in the financial services sector received another boost through a BEE deal concluded between Dynamic Wealth (Pty) Ltd, a leading financial services provider, and MFS Holdings, a prominent provider of financial services to the black market.
Though this is seen as a BEE deal, it is in fact a strategic partnership as two financial services companies with its own unique qualities will be combining skills and assets to service the South African market in its entirety.
Dynamic Wealth (Pty) Ltd has a 49 % share and MFS Holdings a 51 % majority share in MFS Asset Management respectively. Dynamic Wealth (Pty) Ltd has a 55 % share and MFS Holdings a 45 % share in MFS Administrators.
Dynamic Wealth, established in 1971, incorporates five underlying companies, namely Dynamic Wealth Stockbrokers, Dynamic Wealth Management, Dynamic Wealth Administrators, Dynamic Wealth Derivatives and Dynamic Wealth Management Namibia.
MFS Holdings was established in 1996 with the aim to create a retirement services organisation that is synonymous with retirement benefits. The MFS Group consists of various companies, including MFS Retirement Advisory Services, MFS Tax and Accounting, MFS Health and MFS Risk Management in order to instill a professional “one-stop shop” service offering. The MFS Holding Group is currently responsible for R1 billion of funds under management.
“The joint venture between Dynamic Wealth and MFS is a strategic confluence of immense expertise and skills from diverse fields and cultures”, notes Ben Moletsane, Managing Director of MFS Asset Management and Executive Chairman of MFS Administrators, when referring to the operation of both companies in diverse markets.
Both companies aim to instill a fresh approach and the usage of modern technology in their nation-wide service offering while being at the forefront of promoting Black Economic Empowerment. The focus will be on both institutional and retail business.
“A gap in the market has been identified, as there are currently only a few asset management companies that have a black majority shareholding in South Africa”, emphasised Lazzy Mphasane, Executive Chairman of MFS Asset Management and Managing Director for MFS Administrators. Both these business ventures will promote the development and empowerment of black intellectual capital in the financial sector. This specifically pertains to small black-owned asset management companies, which are often disregarded in the market, due to the unawareness thereof.
In the retail space, MFS Asset Management offers two pre-retirement and two post-retirement funds respectively. The pre-retirement funds consist of the MFS Cautious Growth Wrap Fund and the MFS Maximum Growth Wrap Fund. “The Cautious Growth Fund is a medium to low risk profiled fund, ideal for investors seeking consistent capital appreciation over the medium term with manageable volatility and limited downside over the short term”, explains Moletsane. “The Maximum Growth Fund is ideal for investors seeking a high level of capital appreciation over the longer term at significant volatility over the short term”, adds Mphasane.
The post-retirement funds consist of the MFS Max Income Wrap Fund and the MFS Sustainable Income Wrap Fund. The Max Income Fund is a medium to low risk fund with the objective of providing an income of between 7% and 10 % per annum, while aiming at maintaining a stable level of purchasing power into the future. “In comparison, the Sustainable Income Fund provides an income of between 5% and 7 %, while aiming at increasing the future purchasing power of the investment over the medium to long term”, states Mphasane.
MFS Administrators provides prospective client groups, large and small, with specialised and customised retirement fund administration platforms. “Through this administration platform, members benefit from world-class administration and access to top performing investment portfolios”, states Moletsane. The company is positioned to empower the Financial Advisor to confidently enter the employee benefits area. According to Mphasane, by focusing on the Financial Advisor’s needs, MFS Administrators offers a range of solutions specifically designed to support and strategically empower the Financial Advisor to offer the solutions their clients need.
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