Schroder Offshore FundsCurrently, banks are either investing in technology, or financing expansion into the retail market in a timely move to capture outward investment that has been enabled by measures to relax currency exchange. At the time of writing, the foreign exchange allowance is R750,000, or £63,376, with every chance of further hikes to come. Schroders, traditionally known as an institutional investment house in South Africa, has made its move by bolstering its retail sales arm in Cape Town. Marcel Bradshaw was installed as head of retail in November 2000, and six of its offshore Luxembourg, US, euro and global sub-funds have been registered with plans to target the offshore market. Schroder Offshore Funds - South Africans“The amount South Africans can secure overseas is increasing, alongside the fact that e-controls are also likely to be liberalised,” says Schroders’ manager for marketing and sales, Robert Marshall. “This liberalisation will benefit South Africa over the next five years. It’s a display of confidence in its economy’s potential. Over the last two years, the global unit trust arena has been the greatest growth sector, with investments of over R130 million. It’s a local segment where an investor’s rand goes through an asset swap and then overseas, which shows this market is what investors want.” Schroder Offshore Funds & Investment BankingThe globally competitive foreign, private and investment banking sector in South Africa has forced its domestic counterparts to fight hard. With around 139 banks competing in a limited market, it is going to be the
survival of the fittest. Investec International banking consultant, Ian Douglas, says it’s going to be a tough time for the ‘big four’ home-grown banks - Standard Bank investment corp, ABSA Group, Nedcor Ltd and First Rand - as the global banks gain market share. “We’ve been established there since 1984 and growth has been phenomenal. Around forty per cent of our funds investment derives from South African investors. Telecom is one of the first of many privatisations stimulating foreign inward investment. Our fund managers are also receiving a lot of wealth from worldwide emerging markets allocations.” Strategists at banks like First Rand are fighting on several fronts. The emerging high-street banking sector is also exerting demands.
“There is a huge un-banked, un-bankable sector,” says First Rand’s Steve Higgins. Schroder Offshore Funds - Branches Moving Into Poverty“Banks are being criticised at every level. Branches moving into poverty stricken areas are criticised when they can’t provide loans in informal settlements, and widespread use of remote banking, offered by the majority of community banks, is decreasing the numbers of branch offices - making access difficult. “However, the mainstream market is a huge growth area, with twenty-five year old first-time account holders constituting the biggest consumer demographic.” But Claire Gebhardt-Mann says the real problem could be lack of consumer education among the middle classes. Deposit accounts tend to be seen as the only place for this new money to go.
“There are no statistics on what’s happening, despite the middle-class property boom. These people are an opportunity waiting to happen, but the banks ignore them as a potential investment.” 
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