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03 April 2018 Photo Sonia Small
First-rate fund managers in SA produced by UFS Prof Philippe Burger
of Philippe Burger, Acting Dean of the Faculty of Economic and Management Science.

A recent comparative study on the performance of South African fund managers has revealed that the-top performing fund managers over a running average of five years are former undergraduate students of the University of the Free State (UFS).

In an attempt to understand South Africa’s fund managers, Leigh Köhler, head of research at Glacier by Sanlam, and his team, published a comprehensive breakdown which looked at all South African universities and universities of technology. Aspects explored in the report included philosophy, process, people, organisational structure, and cost of funds. In addition, the study also considered characteristics such as age, tenure, level of qualification and undergraduate university to identify fund managers who are superior to their peers.

A closer look at the statistics
The majority of the sampled fund managers studied at the University of Cape Town (46%), University of Stellenbosch (10%), and University of the Witwatersrand (8%), while only 2% studied at the UFS. However, according to the report, “The highest average performance over five years was generated by fund managers who attended the UFS – 13.25%.” This means that for every rand they invested, the portfolios managed by UFS alumni got back approximately R1.13 annually, the highest return when compared to the returns generated by portfolio managers from other universities. These fund managers are employed by a range of institutions, including independent asset management firms, insurance companies, banks and wealth managers.

What our acting dean had to say

Prof Philippe Burger, Acting Dean at the UFS Faculty of Economic and Management Science, said: “When you and I put money into a pension fund or investment, portfolio managers buy bonds and shares with it from companies. Those companies use that money to invest in building factories, businesses, offices, and of course they make a profit on their investments. That profit is used to pay interest and dividends. These interest payments, dividends and increased share values constitute the returns paid to investors.”

The outstanding performance of UFS-groomed fund managers is a comment on the quality of the students UFS delivers. “For decades we have had a BComm degree that includes an option to specialise in what was previously called Money and Banking, and is now called Financial Economics. We are the only faculty that has had a focus on Financial Economics going back all the way to the late 1970s. In that sense we train people and give them an education that allows them to perform like this,” said Prof Burger. 

Moving forward, the faculty is looking at partnerships with financial institutions that can strengthen that capacity and give students increased value for money. 

News Archive

Game farming a lens to analyse challenges facing democratic SA – Dr Kamuti
2017-05-30

 Description: Dr Kamuti Tags: Dr Kamuti

Dr Tariro Kamuti, Postdoctoral Fellow at the Centre
for Africa Studies at the University of the Free State.
Photo: Rulanzen Martin

One of the challenges facing South Africa’s developing game farming policy is the fractured state in the governance of the private game farming sector, says Dr Tariro Kamuti.

Dr Kamuti, a Postdoctoral Research Fellow at the Centre for Africa Studies (CAS) at the University of the Free State (UFS), was presenting a seminar on Wednesday 17 May 2017 under the topic, Private Wildlife Governance in a Context of Radical Uncertainty: Challenges of South Africa’s Developing Game Farming Policy, which takes material from his PhD. He received his PhD from both the Vrije University in Amsterdam and the UFS in 2016.

His presentation explored how the private game industry positions itself in accordance with existing agricultural and environmental regulations. It also investigated the state’s response to the challenge of competing needs over land and wildlife resources which is posed by the gaming sector. “The transformation of the institutional processes mediating governance of the private game farming sector has been a long and enduring arrangement emerging organically over time,” Dr Kamuti said.

Game farming links wildlife and agricultural sectors
“I decided on this topic to highlight that game farming links the wildlife sector (associated with conservation and tourism) and the agricultural sector. Both make use of land whose resources need to be sustainably utilised to meet a broad spectrum of needs for the diverse South African population.

“The continuous skewed ownership of land post-1994 justifies questioning of the role of the state in confronting challenges of social justice and transformation within the economy.”

“Game farming can thus be viewed as a lens through which to study the broad challenges facing a democratic South Africa, and to interrogate the regulatory and policy framework in the agricultural and wildlife sectors at their interface,” Dr Kamuti said.

Challenges facing game farming policies

The state alone does not apply itself to the regulation of private gaming as a sector. “There is no clear direction on the position of private game farming at the interface of environmental and agricultural regulations, hence game farmers take advantage of loopholes in these institutional arrangements to forge ahead,” Dr Kamuti said.

He further went on to say that the state lacked a coherent plan for the South African countryside, “as shown by the outstanding land restitution and labour tenant claims on privately owned land earmarked for wildlife production”.

The South African government was confronted with a context in which the status quo of the prosperity of the middle classes under neoliberal policies was pitted against the urgent need to improve the material well-being of the majority poor.  Unless such issues were addressed, this necessarily undermined democracy as a participatory social force, Dr Kamuti said.

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