Blue Chip Journal - June 2019 edition

CONTENTS
7 ON THE MONEY
The latest happenings in financial services
12 INVESTED FOR THE LONG RUN
What outcome-based investing means for investors
18 FINANCIAL PLANNING FOR ALL
New FPI CEO has big plans
20 A YEAR OF LEARNING
Rewarding career
opportunities
to make a
difference
Are you target-driven,
goal-oriented and want to
determine your own income?
Then read on…
Janet Hugo reflects on her term as Financial Planner of the Year 2018
22 BLUE SKIES AND SUNSHINE
Momentum Financial Planning (MFP) is a provider of financial services in South Africa. We provide career
opportunities, with a competitive remuneration model, for financial planners at any stage of their careers.
In line with an endeavour to become the most competitive, accountable and professional in-house
financial advice business in South Africa, MFP is looking to expand its financial planner force.
We are looking for passionate individuals who believe in themselves, and who want to partner with us on
their journey to success.
Not yet qualified? We provide you with the expert knowledge and professional skills you will need and
support you to obtain the Certified Financial Planner® (CFP) qualification.
We are a purpose-driven organisation; our behaviour and choices centre round our conviction: showing
up to positively impact your success, because we care.
Join the growing family of Momentum financial planners, who believe in the value that financial planning
and advice adds to people’s lives, today. Send your CV to mfpintouch@momentum.co.za.
Momentum is a division of MMI Group Ltd, an authorised financial services and credit provider.
FSP6406. Terms and conditions apply.
Mauritius maintains appeal for investment managers focused on Africa
24 BETTING ON RED
Weighing up China as an investment destination
Achieving a fulfilling and rewarding life is a journey.
Every individual’s journey is unique, with different
highlights and challenges along the way. Having a
vision and setting goals will place the destination
within reach, but a well-designed plan for the
challenges that life throws, will get you there.
Momentum Investments is a division of MMI Group Limited, an authorised financial services (FSP6406) and registered credit (NCRCP173) provider.
The South African Journal of Financial Planning
Outcome-based investing
Momentum Investments CEO Jeanette Marais
on the revolutionary philosophy
Issue 72
June / July 2019
Issue 72 • June/July 2019
www.bluechipjournal.co.za
27 SETTING A PRECEDENT
Shareholder activism on climate change and other ESG risks starting to
gather steam
28 NO DILEMMA
Blending passive and active investing
30 FUTURE VALUE
ESG increasingly informs investment decisions
ISSN 1682-8666
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32 FACING THE BOUTIQUE FEAR
Building a sense of community is key
33 PEOPLE'S CHOICE
Open-access investment with Satrix
36 SMOKE AND MIRRORS
Some tough questions for the retirement fund industry
40 IN IT FOR THE LONG RUN
The life right model may be the right choice for retirement
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41 THE HIDDEN COST OF RETIREMENT
Understanding fees is key to better performance
56 UNDOING PERVERSE INCENTIVES
Picking the right insurance for your client
42 HUSTLE ON THE SIDE
What if our focus is wrong in our efforts to solve the retirement gap?
46 BREAKING BAD
Gerald Mamfunda battled poverty, bedbugs and bandits to found a thriving
financial services company
58 CLARIFYING VALUE
Negotiating the shifting landscape of fees for
financial advice
60 WHO DARES, WINS
The call for courageous conversations with clients
48 HOW BEHAVIOURAL FINANCE CREATED A COMMUNITY
Humans Under Management – South Africa 2019
62 NO, NO, AND NO
Advocating a new mindset for financial advisors
52 MEETING THE CHALLENGE OF INVESTOR BEHAVIOUR
Research shows investments outperform investors
64 FOR A BETTER RETIREMENT
Spend the income, not the capital