How Private Markets, DFMs, and New AMCs are Redefining South African Wealth Management
Private markets are going through a major global shift, and South Africans are finally getting real access. From the growth of discretionary fund managers (DFMs) to new actively-managed certificates (AMCs) launched even by big banks like Standard Bank, the investment menu is expanding far beyond traditional unit trusts and the shrinking JSE.
Here’s what matters.
Global Momentum, Local Relevance
Private markets are gaining strong global traction, with capital increasingly flowing into high-growth areas such as private credit, infrastructure, technology and energy transition projects. Despite short-term fluctuations in fundraising, long-term projections remain firmly upward—global private-market assets are expected to expand from roughly US$13 trillion today to well over US$20 trillion by 2030.
For South Africans, this global momentum creates a powerful tailwind. As the local listed market remains concentrated, private markets offer access to new growth engines and sectors not represented on the JSE, giving investors a broader and more dynamic opportunity set than ever before.
DFMs: Opening the Door for Investors
DFMs have become one of South Africa’s most important investment trends. They offer:
- Professional portfolio management
- Global reach and manager research
- The ability to include alternatives and private assets
For many investors and advisers, DFMs are the only practical route into diversified global and alternative strategies. But it’s essential to understand fees, transparency, and the DFM’s investment philosophy before delegating.
The Rise of AMCs in South Africa
Actively-managed certificates (AMCs) are gaining traction fast. They allow managers to run flexible, active strategies in a listed format with quicker time-to-market than unit trusts.
The recent Standard Bank AMC listings signal that major institutions now see AMCs as a core part of the future product landscape.
Benefits include strategy flexibility and easier access. Risks include varying liquidity, pricing methodology, and counter-party exposure. Due-diligence is non-negotiable.
Why Private Markets Matter
Private markets can provide:
- More diversified return streams
- Access to growth sectors like logistics, renewables, private credit and mid-market business funding
- Inflation-aligned income from real assets and private debt
- Long-term stability compared to volatile listed markets
For investors with multi-year horizons, allocating even a modest portion to private markets can improve portfolio resilience.
What Investors Should Do. Have genuine diversification in public and private markets. Match private market exposure to a 5–10-year horizon. Use DFMs for professional oversight and diversification. Avoid hype by focussing on disciplined, transparent strategies.
