NVFH 2020 Integrated Annual Report

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Chairman’sReportDear Stakeholders,Welcome to the IntegratedAnnual Report for NVest for thefinancial year ended29 February 2020.It is with great pleasure thatthe Board presents this, itsfifth Integrated AnnualReport, since listingon the AlternativeExchange of theJohannesburgStock Exchangein May 2015.We release the report in the most turbulent times. The Reportsets out the latest annual chapter of NVest’s continued growthas a broad-based financial services provider and includesvarious facts and figures of the past financial year. The Reportalso documents the steady and controlled progress madeacross the Group in terms of delivering on our ambitions,including various operational, tactical and strategic priorities.Importantly, the Report also includes an insight into thevalues of NVest, as an organisation that is deeply connectedto and engaged with the communities in which our staff andcolleagues live and work. The past year has been one where,through the Group’s bold and co-ordinated CSR agenda,NVest has made a profoundly positive impact on those mostvulnerable and in need within our communities.Whilst falling just outside of the year under review, the NFBPrivate Wealth Management business celebrated its 35thanniversary on the 1st of April 2020 – a truly remarkableachievement. The NFB brand has been built throughoutthose years on a foundation of trust, exceptional service andtangible results in protecting and growing the wealth of ourvalued clients.66 NVest NVest Financial Financial Holdings Holdings Limited Limited | INTEGRATED | INTEGRATED ANNUAL ANNUAL REPORT REPORT 2020 2020
As a consequence of all of these things, I am extremelyhumbled and proud to be associated with the NVest Group,its people and clients.The resounding themes that emerge from the pages thatfollow include progress in terms of executing operationalalignment and capacity building across our underlyingbusinesses, consistency in delivering results and resilience inadapting to fast changing and unprecedented times.The operating environment presented a challengingbackdrop throughout the year and the South Africaneconomy had a gloomy 2019, characterised by declininggrowth and delayed reforms. The local economy is in itslongest downward cycle since 1945, having not expandedby more than 2% per annum since 2013.Whilst South Africa’s downward trajectory in terms of fiscalposition is not new, concerns are now rising on the back ofthe rapid deterioration over the past two years specifically.The slowdown in economic growth and revenue receipts,wasteful public-sector spending, administrative andefficiency challenges at the South African Revenue Serviceand a growing public sector wage bill are the greatestcontributors to alarming debt levels in South Africa.The global story of 2019 was broadly more positive, especiallytowards the end of the year. Global markets rallied at theend of December 2019 to give the MSCI World Index itsbest year of the decade (+27.7%). The continued tensionbetween China and the US seemed to subside on the backof “phase 1” of a trade deal just in time to avoid the USgoing ahead with a scheduled implementation of 15% tariffson $160bn of Chinese imports, and the world breathed acollective sigh of relief.NVest has weathered the disruption of lockdown remarkablywell and has delivered respectable results given theunprecedented context. These results were underpinnedby growth in revenue (up 1.26% to R310.2 million), earningsper share (up 2.71% to 21.62 cents per share) and net assetvalue (up 7.06% to 159.60 cents per share). Total assets undermanagement and administration decreased marginallyfrom R30.3 billion as at February 2019 to R30.1 billion as at29 February 2020. The Board is encouraged by these solidresults in the most testing of conditions and would like tothank Anthony and his leadership team for their hard workand commitment to task.Prospects for 2020 and 2021 have deteriorated considerablydue to the COVID-19 pandemic, but thanks to prudent costmanagement, strong leadership and considerable cashreserves NVest is well positioned to confront these challengeshead on and to leverage the opportunities that will no doubtemerge in a post COVID environment.Thanks to the expertise, hard work, discipline and dedicationof everyone who works at NVest we enter the new financialyear well placed to serve our clients and to reward ourshareholders over time for their trust in our collective ability tocontinue to exceed expectations.In closing I would like to convey my profound gratitudeto my fellow Directors. Your continued support has beenunwavering and I greatly appreciate your expertise andcontributions throughout the year.Enjoy the read, and stay safe.December 2019 also ushered in some much-needed clarityas to the UK’s plans for exiting the European Union (EU) asUK voters delivered a strong mandate to Prime MinisterBoris Johnson to proceed with his proposal of exiting by theend of January 2020. Johnson’s Labour government saw itsrepresentation in Parliament lifted from 46% to 56% as a resultof the December election, giving them the comfortablemajority needed to execute Brexit. The much needed Brexitclarity helped the British pound continue a rally which saw itrise over 10% since its August lows when the UK faced a realpossibility of leaving the EU without a deal._______________________Jonathan GoldbergGroup Chairman25 May 2020So 2020 arrived with some renewed hope, on the backof a clearer Brexit road map, improving US-China traderelations and generally stronger investor sentiment. And thenCOVID-19 became real ...Much has changed since South Africa’s lockdown was firstannounced by President Cyril Ramaphosa in March 2020.Whilst the extended lockdown has been credited withbuying our country critical time in order to prepare for theexpected rise in COVID infections, the cost to the economyhas been substantial.As we enter a new phase in the Government’s response andstart to see an easing of restrictions and the re-opening ofthe economy, despite a significant climb in the spread of thevirus, the challenge is to adapt to the “new normal” and tofind ways to engage and remain relevant to our clients in avastly different environment.“...I am extremelyhumbled andproud to beassociated withthe NVest Group,its people andclients. ”NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 7
Page 5 and 6: GroupAwards2019 Morningstar Award-
Page 7 and 8: Contents06 Chairman’s Report08 Ch
Page 9: 01ABOUTNVESTHOLDINGSNVest Financial
Page 13 and 14: those of the previous year and, sec
Page 15 and 16: SubsidiaryFeb 2020RevenueFeb 2019Re
Page 17 and 18: worldwide, resulting in an economic
Page 19 and 20: REVENUE - FEB 2020REVENUE (R)Invest
Page 21 and 22: ANTHONY DENIS GODWIN (60)CHIEF EXEC
Page 23 and 24: DR LANA JOY WELDON (46)INDEPENDENT
Page 25 and 26: Siviwe Relebohile Kwatsha (41)Group
Page 27 and 28: Name:Rob MastersLocation:NFB PWM EL
Page 29 and 30: Name:Melany AnnandaleLocation:NFB I
Page 31 and 32: 02GROUPAFFAIRSNVest Financial Holdi
Page 33 and 34: 199019941995Beyond our borders. NFB
Page 35 and 36: Our BusinessSummaryBrand Core Produ
Page 37 and 38: The evolutionof the NFB Brand1985NA
Page 39 and 40: NFB Private Wealth Management -the
Page 41 and 42: NFB Private Wealth Management- triu
Page 43 and 44: Loaves & Fishes NetworkDeep poverty
Page 45 and 46: NVest Financial Holdings Limited |
Page 47 and 48: Corporate Governance& Sustainabilit
Page 49 and 50: needs of the Board in considering s
Page 51 and 52: A detailed report of the Social and
Page 53 and 54: Legal Compliance: The inherentrisk
Page 55 and 56: PART 5.2: Strategy, performance and
Page 57 and 58: Principle 9Evaluations of the perfo
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(bb) the Organisation for Economic
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• internal audit policy including
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Remuneration andNominationsCommitte
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an incentive basis (mainly through
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Directors Responsibilitiesand Appro
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IndependentAuditor’s ReportIndepe
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Key audit matterGoodwill assessment
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material uncertainty exists, we are
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GeneralInformationNVest Financial H
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NVest Financial Holdings Limited an
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GeneralInformationCompany NameDate
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Notice of AnnualGeneral Meeting & P
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Explanatory note for ordinary resol
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person/s authorised by the board),
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In order for this resolution to be
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Special Resolution Number 1 -Genera
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(c)) and in terms of the memorandum
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NVFH 2020 Integrated Annual Report

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