The recent announcement by Alexforbes that the CEO of its investments division, Ann Leepile, had left less than three years after taking up the role in February 2022 — along with deputy CIO Lebo Thubisi — is a blow to transformation.
Their departure follows hot on the heels of the resignation of a senior black portfolio manager, Lethukuthula Zulu, who is reportedly headed back to his former employer.
These departures are by no means isolated incidents and there has been a developing trend of an exodus of black professionals at Alexforbes. A little while ago Bonga Mokoena, who was group executive for market development, left the business. Chief economist Isaah Mhlanga, principal investment consultant Thando Bikitsha and head of strategic clients Lesiba Mothata also exited. From an outsider’s perspective, this looks like a purge of senior black professionals.
Leepile’s appointment was rightly celebrated by the likes of the Association for Black Securities and Investment Professionals (ABSIP), while her departure has been met with muted disappointment. What has softened the blow is that Leepile has been retained within the South African asset management industry, having been appointed CEO of Cape Town based M&G Investments.
In June 2022, Alexforbes turned up the pressure on transformation in the asset management industry with its transformation policy. This policy demanded asset managers transform or risk losing business from one of the country’s largest asset allocators.
With more than R500bn in assets this was a groundbreaking policy set to change the landscape of asset management. The policy set out specific criteria that needed to be met by asset managers, and made Leepile its face and champion.
Alexforbes states on its website: “Our transformation policy is set to make an impactful contribution to the sustainability and relevance of the asset management industry in South Africa. It is an extension of our overall commitment to the transformation of the South African economy through broad-based black economic empowerment.”
This policy appears robust and makes specific requirements on the minimum number women and black people and the support of black brokerage services and emerging managers. The requirement also talks to a minimum 40% representation by black people in senior management.
This leaves one to wonder what to make of these senior departures in their investment business. Executive departures are nothing new, nor are they confined to South Africa, but an exit of a clutch of senior black executives suggests a culture or leadership that is, at worst, hostile to transformation. As author Marcus Buckingham once said: “People leave bad managers, not companies”.
Does Alexforbes not walk the talk? Why do black executives seem unwelcome in a business that is forcing other industry participants to transform?
One could simply brush this off as people leaving for greener pastures, but a question must be asked: “Why are black senior executives not feeling welcome at Alexforbes, so that they have to seek opportunities elsewhere?”
According to insiders not willing to go on record, these recent developments have unsettled other employees, generated a toxic environment and negatively affected staff morale. One described the current environment as “feeling like we are walking on eggshells”.
Does Alexforbes not walk the talk? Why do black executives seem unwelcome in a business that is forcing other industry participants to transform? Is it a case of “talking right but doing left”?
I have personally experienced a culture that is hostile to transformation. Between 2010 and 2011 I was part of a cohort of black professionals who left Old Mutual Investment Group for environments that are black-led and receptive to transformation, so we did not have to keep explaining ourselves. To its credit, OMIG has since done a sterling job in transforming the business and hiring top black talent at the highest echelons of its leadership structures.
A notable development in asset management has been Coronation Asset Management, which recently announced a R1.5bn BEE deal. This will influence the transformation landscape in the same way as the Sanlam and Absa merger of their asset management business in 2016. The deal will enable Coronation to participate in asset allocation as a black-owned entity, something it was previously unable to do, and should be welcomed.
It will be interesting to see how the deal is implemented, including through key appointments. But for now, there seem to be players who are not walking the transformation talk.
• Buthelezi is MD of Aphinko Consulting, a Johannesburg-based reputation and public affairs firm. He has over 20 years’ experience in financial services.
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