RANKING THE ANALYSTS: Industry urged to boost talent at black firms
Barriers to transformation in the sector will be addressed through the application of new laws and practices
Creating a meaningfully sized, separate pool of research allocations for black-owned and managed securities firms is needed to address the racial imbalance in SA’s securities sector, says the Association of Black Securities & Investment Professionals (Absip) Stock Broking Think Tank. A demographic analysis of the 2017 Financial Mail analyst rankings by Primaresearch on behalf of Absip found that only 14% of sell-side analysts were black. Absip deputy president Delphine Govender says there have been previous attempts to create such a separate pool, but the Absip think tank "feels that the total amount allocated in those instances has been too small to include most black firms and to make a meaningful difference across the industry. Thus, black firms are still very limited in attracting senior talent to work with and groom budding black analysts". An important factor would be ensuring that the competitive criteria are appropriate for and specific to this pool. For example, she says, i...