This is why we exclude mandated investments

n Why is the 8% number understated? The 8% direct shareholding by black shareholders on the JSE may lead one to the conclusion that the other 92% is held by white South Africans. This, of course, is not true, as the JSE’s research highlighted. Some of the residual interest is held by offshore investors and a large proportion is held by “mandated investors”. On this basis, the JSE illustrated that the 8% direct holding by black people translated into about 36% of the shares held directly by South Africans. While this might sound like meaningful transformation, this reassuring number is still only a magnification of less than 2% unencumbered ownership, and desperately little benefit trickles down to the grassroots level.

via www.businessday.co.za

I know Louise hated this article - but this paragraph is a very succinct explanation why mandated investments are excluded from the ownership calculation.