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High staff turnover, a characteristic of the asset management environment, is expected to increase among qualified and experienced black employees due to the charter, says Nomkhita Nqweni, business development manager and head of transformation at Investm

Nqweni, an executive committee member of the Association for Black Securities and Investment Professionals (ABSIP), says this is because the charter clearly specifies how empowerment should be approached.

"Asset management companies that have done empowerment deals at shareholding level will have to ensure black representation filters down to management control at board level, as well as top executive, senior and middle-management positions.

"Although the charter will create an initial impetus for black professionals to move into management and senior positions as companies fill their black empowerment quotas, it is important to note that, in most cases, black professionals do not move between companies because of the promise of higher remuneration, but rather due to the working environment and culture at a particular firm," Nqweni says.

An environment conducive to the development of black professionals and in which they are treated as "professionals" is more appealing than an attractive remuneration package, she claims.

"An imperative of the transformation process in the sector should be the implementation of specific strategies to retain black employees.

"Companies also need to build their own pool of recruits. This can be done through bursary schemes, graduate training programmes, as well as learnership programmes," she says.

It is important, says Nqweni, that black professionals build an adequate foundation and career in their special field. They should not fall into the trap of being lured from company to company, as this could jeopardise their careers.

They would run the risk of constantly moving on but never moving up, hence becoming perpetual "trainees". "Black investment professionals need to be able to build capacity and grow within organisations so that they can acquire the skills and experience necessary to ultimately run them.

"It is also vital that they give back to the industry by mentoring up-and-coming analysts, portfolio managers and other financial specialists."

"Through procurement, black-empowered and black-owned brokers are likely to see growth in business and deal-flow. This will be a positive development for the stockbroking industry in South Africa as it will facilitate the development of black proficiency within this field."

She adds that trustees of retirement funds, especially union-driven funds, have the power to facilitate and expedite transformation and act as change agents. "We can expect to see them exerting more pressure on service providers to bring about real transformation and empowerment this year."

Black empowerment and transformation from within has been a business imperative for a while now, and many asset management companies have concluded empowerment deals over the past few months.

Internal transformation now has to flow from that. Asset management companies which stole the march on empowerment by implementing the ideals of the charter long before it was announced, will likely have a competitive advantage over companies only now giving consideration to black empowerment, says Nqweni.