Market Snapshot

South Africa

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South Africa

Of the South African investors surveyed, 60% expressed a high level of trust for the financial services industry and a similar percentage of eligible investors believe the state-sponsored pension scheme will pay out benefits as promised. More than 60% of investors are worried about an impending financial crisis within the next three years.

There is significant confidence and trust in the system, so it is not surprising that about 70% of South African investors still believe they have a fair opportunity to profit by investing in capital markets.

Investors value access to technology over people to help manage their investments and a majority trust human advice over that of robo-advisers. Far fewer investors said that they were willing to invest in a fund that used artificial intelligence for its selection process. This indicates an interest in technology but not necessarily for providing investment decisions or advice.

When looking to hire a firm, 65% of South African investors prefer a trusted brand over people they can count on. When changing investment professional or firm, investors’ top considerations are the level of performance, fees, and data security. Advisers would do well to provide more personalized products as almost all investors surveyed want those offerings and more than half would be willing to pay more for them.