Blue Chip Journal - June 2019 edition

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On the money Making waves this quarter Impactful sessions with fund managers “Meet the Managers” adopting a new format The Collaborative Exchange will be running a series of “masterclass” conferences throughout South Africa in July 2019 where 29 local and international fund managers will be present. The format is an impactful way for financial advisors to see eight of their chosen fund managers within the space of one day and earn CPD points for doing so. Meet the Managers is now in its third year of existence and has been attended by about 1300 financial advisors last year at sessions in Johannesburg, Cape Town and Durban. Kevin Hinton, a Director of The Collaborative Exchange, says, “Meet the Managers provides an insightful platform for financial advisors who want to keep abreast of financial markets and the funds that they have invested their clients’ assets with.” Both large and emerging investment managers participate as well as domestic and international fund managers. So, advisors can ensure that they also get the opportunity to see new firms that are emerging. Hinton says, “We do this in an impactful way in ensuring that the sessions are small and intimate, and advisors can get 'up close and personal' with fund managers. It is widely accepted that the TED talk format is impactful, with short, concise and powerful sessions generally not longer than 18 minutes.” Marc du Plooy, the Managing Director of Wealth Associates and Chairperson of the Financial Intermediaries Association says, “You know what I like about 'Meet the Managers'? It is that you actually meet the managers! What better way to round out your perspective of economics, volatility, asset classes, portfolio construction than by listening to and engaging with a number of top-class managers in a series of intensive personal interactions. It allows you to really test your own understanding in the construct of your portfolios for your clients. Even if you are not currently using all those managers, it is incredibly valuable and insightful to listen to the views of other top-class industry professionals. It can only make you a better investment professional.” Not your ordinary balanced fund Protecting capital, growing wealth In a crowded and competitive market of 533 Balanced CIS Funds, representing R806-billion according to latest ASISA stats, how does one choose where to invest your hard-earned retirement savings? Clearly support for the “big four” high-equity balanced funds from the larger houses has been popular, given that they constitute 40% of the R806-billion in this category, and advisors have done well to select these funds for their clients, but often fall short when it comes to considering the correlation of the funds that they have chosen. Due to their significant size and the limited investment universe in South Africa, they are highly correlated. Advisors should consider mixing funds from boutique managers, to enhance the diversification and hence the risk-adjusted return profile for their clients. The perception that funds from boutique managers are riskier is a broad misconception. The graph below shows the drawdown of the Laurium Balanced Prescient Fund versus the largest highequity funds in the SA high-equity MA category. Clients invested in balanced funds are as concerned about protecting capital on the downside, as they are about growing their wealth in real terms. Drawdown Time Period: 2016/01/01 to 2019/05/31 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 -9.0 -10.0 -11.0 -12.0 Laurium Balanced Fund Manager C Source: Morningstar Direct 2016/05 2016/11 2017/05 2017/11 2018/05 2018/11 2019/05 (ASISA) South African MA High Equity Manager D Manager A Manager B Drawdown vs Largest Balanced Funds (since inception 9 December 2016 to 30 April 2019) As you search for investment managers who have the potential to deliver real returns and alpha above their benchmarks, be sure to consider boutiques in your portfolio. Financial advisors that want to attend Meet the Managers should email info@meetthemanagers.co.za or visit www.meetthemanagers.co.za
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Page 1 and 2: Issue 72 • June/July 2019 www.blu
Page 3 and 4: CONTENTS 7 ON THE MONEY The latest
Page 5 and 6: Actual investors look to the future
Page 7 and 8: FOREWORD We’ve also made the deci
Page 9: On the money Making waves this quar
Page 13 and 14: 100 % SAVINGS 0% TAX WOULDN’T YOU
Page 15 and 16: COVER PROFILE It has been said that
Page 17 and 18: solutions are well aligned to best
Page 19 and 20: 24 32 47 59 91 85 78 63 51 What are
Page 21 and 22: FPI in Financial Planning and becam
Page 23 and 24: Establish yourself as a financial p
Page 25 and 26: JURISDICTION Nicole Paige, Partner
Page 27 and 28: FOREIGN INVESTMENT The rapid rise o
Page 29 and 30: ESG Setting a precedent Shareholder
Page 32 and 33: HEDGE FUNDS Future value ESG increa
Page 34 and 35: BOUTIQUES Facing the boutique fear
Page 36 and 37: ADVERTORIAL How well do you know th
Page 38 and 39: RETIREMENT FUNDS Smoke and mirrors
Page 40 and 41: Invest in a carefree retirement lif
Page 42 and 43: RETIREMENT In it for the long run T
Page 44 and 45: RETIREMENT GOALS Hustle on the side
Page 46 and 47: ADVERTORIAL Making a dent in the un
Page 48 and 49: INSPIRATION Breaking bad Gerald Mam
Page 50 and 51: EVENTS How behavioural finance crea
Page 52 and 53: EVENTS Andy Hart, financial planner
Page 54 and 55: CLIENT COACHING Meeting the challen
Page 56 and 57: CLIENT COACHING consider the level
Page 58 and 59: INSURANCE Undoing perverse incentiv
Page 60 and 61:
FEE MODELS Clarifying value Negotia
Page 62 and 63:
LEADERSHIP Who dares, wins The call
Page 64 and 65:
TRANSFORMATION No, no, and no Advoc
Page 66 and 67:
RETIREMENT SOLUTIONS For a better r
Page 68:
Rewarding career opportunities to m
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Blue Chip Journal - June 2019 edition

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