Issue 77 • October 2020
The Official Publication of the FPI
How to navigate
Florbela Yates, Momentum
ARE BOUTIQUES BETTER?
The value of a
Financial planning with life planning at its core
MEET THE THREE FINALISTS
FPI Financial Planner of the Year 2020
Johan Swart • Hester van der Merwe • Henri Le Grange
With Satrix, investing globally is as easy as investing at home. Our global exchange-traded
funds track the MSCI World Index, MSCI Emerging Markets IMI, MSCI China Index, S&P 500 ®
and the Nasdaq-100 ® . Access the power of these global markets at www.satrix.co.za.
Satrix Managers (RF) (Pty) Ltd (FSP no. 15658) is an authorised financial services provider and a registered and approved manager in terms of the Collective Investment Schemes Control Act. A schedule of fees is available from the Manager.
WHAT’S HAPPENING AT THE FPI?
Message from the CEO
By Alexis Knipe
ON THE MONEY
Milestones, news and snippets
The University of the Free State introduces its
innovative financial coaching programme
ASSET MANAGER HEADWINDS
For a well-established industry, there is a surprising
amount of ongoing changes taking place
Blue Chip sits down with Zisanda Gila, Lead Portfolio
Manager, Momentum Investments
CAN SOUTH AFRICANS REBUILD THEIR WEALTH
Andrew Ratcliffe, Private Client Wealth, on how
to manage your finances in the mass economic
devastation that the coronavirus has left in its wake
RETIREMENT PLANNING IN THE TIME OF COVID
Nedgroup advises on how to navigate a
LEADING BY ACTION
Blue Chip catches up with Kondi Nkosi, Schroders,
Country Head, South Africa, to find out what is
happening in the offshore investments sphere
HOW TO NAVIGATE VOLATILE MARKETS
Column by Florbela Yates, Head of Momentum
WHY SOUTH AFRICA IS AN ATTRACTIVE
DESTINATION FOR INVESTORS
Petroleum Agency SA invites the world
to discover our nation’s riches
BOUTIQUES ARE BETTER – RIGHT?
The great boutique debate
IDENTIFYING, PARTNERING AND GROWING
Zama Zulu, Portfolio Executive at RMI IM,
tells Blue Chip about her role in mentoring
South Africa’s top investment talent
TUNING IN TO THE BEAT OF HER INNER DRUM
Alida de Swardt, CEO of RMI IM, inspires leaders to use
their skills combined with positive energy and a growth
mindset to successfully achieve goals
ARE YOU WORKING IN THE MESSY MIDDLE?
The balance between financial security and living well
MANAGING HUMANS NOT ASSETS
An overview of the Humans Under Management
South Africa 2020 virtual conference
WOMEN IN FINANCE
The power of women coming together
WOMEN AS FINANCIAL PLANNING CLIENTS
Creating value for the female market
WEATHERING THE STORM OF COVID-19
Financial planning coach Louis van der Merwe speaks
about benefitting from the shock
THE VERY FIRST FINANCIAL PLANNER
OF THE YEAR
Debbie Netto-Jonker, CFP®, Financial Planner of the Year
2001, recalls what winning the award meant to her
Why you should not miss the
2020 FPI Professionals Convention
FIVE “AHA MOMENTS” TO LOOK
FORWARD TO AT THE 2020
FPI PROFESSIONALS CONVENTION
The first-ever 100% digital FPI Professionals Convention
THE POWER OF SUPERIORITY
Michelle Hoskin inspires all to make
excellence your standard
BE THE EXAMPLE
Kate Holmes on bringing your absolute best self
to your clients
BUILDING A FINANCIAL PLANNING BUSINESS
Kim Potgieter reveals the value of a life-centred
approach in financial planning
WHY CHINA? WHY NOW?
Satrix deliberates if now is the time to be
investing in China
100 % SAVINGS
RATHER PAY 0% TAX?
OPEN A TAX-FREE
Are you taking advantage of your tax-saving opportunities?
With tax-free investments, you pay no dividends tax, income
tax or capital gains tax on your investments.
With the expertise of SA’s top Fund Managers, you can
maximise your tax-free investments to fund that special goal
you have in mind, or boost your retirement savings. You can
contribute up to R33 000 per year, with a lifetime limit of
Contact our client services team on 0860 123 263 or
or talk to your financial planner.
UNIT TRUSTS | INTERNATIONAL | RETIREMENT FUNDS
Nedgroup Collective Investments (RF) Proprietary Limited is the company that is authorised in terms of the Collective Investment Schemes Control Act to administer the
Nedgroup Investments unit trust portfolios. Unit trusts are generally medium to long term investments. The value of your investment may go down as well as up. Past performance
is not necessarily a guide to future performance. Nedgroup Investments does not guarantee the performance of your investment and even if forecasts about the expected future
performance are included you will carry the investment and market risk, which includes the possibility of losing capital. Unit trusts are traded at ruling prices and can engage in
borrowing and scrip lending. Certain unit trust funds may be subject to currency fluctuations due to its international exposure. Nedgroup Investments has the right to close unit
trust funds to new investors in order to manage it more efficiently. A schedule of fees and charges and details of our awards are available on request from Nedgroup Investments.
Lelané Bezuidenhout CFP®, CEO, Financial
Planning Institute of Southern Africa
at the FPI?
Planning for the first-ever FPI Professional Digital
Convention 2020 enters the final phase. And an MOU
with the Actuarial Society of South Africa.
Greetings from a slightly warmer Johannesburg.
I can’t believe it has been three months since
I last wrote to you. 2020 has been unique in many
ways and the full reliance on technology during
lockdown opened so many doors via quite a few digital
platforms, enabling us to stay in contact with our members
and key stakeholders.
We are busier than ever and between planning the
Convention and doing our bit to help our members (and
their clients) navigate the economic wake of the pandemic,
we are focusing on fully embracing the lessons we learned
from these shaping, turbulent few months.
Covid-19 highlights the value of an FPI membership
With the growing national budget deficit and real GDP
expected to plunge, you don’t need me to tell you that
times are tough. Financial planners and advisors may not be
frontline workers in the conventional sense of the world –
but we certainly are at the coalface of the economic struggle
facing many normal South Africans.
The advice we give our clients and the strategies we
implement for them could very well be the difference
between making it through the pandemic unscathed and
being financially devastated by it.
Now, more than ever, your clients need a financial advisor
they can trust; someone who can implement a tailormade
financial planning strategy that will help each family to
weather the Covid-19 storm as effectively as possible.
At times like this, clients need to know that they have
entrusted their wealth and financial wellbeing to the very
best in the business – you, a proud professional member in
good standing with the Financial Planning Institute.
Our first digital FPI Convention is just around the corner
Planning the Professionals Convention is always timeconsuming
– but we don’t usually have to conjure up a
venue out of thin air! Putting together our first digital event
of this magnitude hasn’t been easy, but it has been extremely
educational and it has also been richly rewarding to see how
our team has pulled together to come up with an event that
promises to deliver a very successful 31st convention.
As always, we have a fantastic blend of local talent and
international speakers covering the latest trends in financial
• Integrating coaching and financial planning
• How to succeed in the new game of business
• Transition to fee-based practices
• Succession planning
• Embracing Financial Planning technology (FPtech) into
• Behavioural coaching
• Regulatory updates, and much more
Then, one of the biggest decisions has been choosing
a platform to host the Convention on, and I am happy to
announce that we have partnered with the best of the best.
Asset TV has years of experience in connecting the financial
community digitally and their virtual conferencing platform
will not disappoint. We have recorded previous sessions
with Asset TV and feel very comfortable that the financial
planning event of the year is in very good hands.
The Convention provides 11.5 verifiable CPD hours and
will take place on 27 and 28 October 2020. Don’t miss out!
Register at www.fpicpd.co.za
The advice we give our clients and the
strategies we implement for them could
very well be the difference between
making it through the pandemic unscathed
and being financially devastated by it.
Take care of your CPD requirements with our Convention package
To assist you in complying with CPD requirements – whether Regulatory and/or FPI
professional member CPD hours, FPI has put together an affordable and extremely
convenient package that will help you to obtain most of your verifiable CPD hours in one
fell swoop. The package to members and non-members includes:
• (Online) FPI Professionals Convention
• Estate and Tax Online Forum
• Retirement and Investment
• Annual Refresher (face-to-face event)
Stronger together: We’ve signed an MOU with ASSA
In giving further effect to our strategy and mandate, FPI recently signed an MOU with
the Actuarial Society of South Africa (ASSA) that will see us work together to improve
the long-term financial wellbeing of all South Africans and their families. For decades,
both organisations have worked hard to give input on regulatory changes, to educate
consumers and generally improve the financial health of all South Africans. But now we
will support each other’s views as it relates to our respective mandates for the greater
good of the consumer. If the last few weeks are anything to go by, I am convinced that
combining our skillsets will be great for all of our members and the South African public.
Onwards and upwards
While the first wave of the pandemic seems to be tailing off, all of us in the financial
planning industry know that the real hard work is yet to come. As financial planners, we
need to band together to help South Africans to not just withstand the economic impact,
but to emerge stronger from it.
Hope to “see” you at the Convention…
Lelané Bezuidenhout CFP®
CEO, Financial Planning Institute of Southern Africa
• (Online) FPI Professionals Convention
• Estate and Tax Online Forum
OR Retirement and Investment
• Annual Refresher (face-to-face event)
At times like this,
clients need to
know that they
the very best
in the business
– you, a proud
member in good
SAVE THE DATE!
FPI Professional Digital
This year our FPI Professionals
Convention will take place entirely
online. Members can log in to the
event on 27-28 October 2020.
Visit fpi.co.za and download the
awards guide for more information.
It is time, again, for the FPI Professionals Convention and this year the Convention
celebrates its 31st year. Another reason for celebration is that the three final
contenders for FPI Financial Planner of the Year 2020 have been announced. Three
CFP® professionals stood out this year for their expert knowledge and superior clients
service: Hester van der Merwe, Henri le Grange and Johan Swart. Congratulations! The
winner will be announced at the FPI Awards Ceremony on 27 October. Blue Chip will be
interviewing the winner in our January 2021 issue.
The golden thread that runs through this issue of Blue Chip is seeing beyond the money
to the human need. Rob Macdonald, Fundhouse, suggests in his article, Are you working in
the messy middle?, that perhaps it is time for financial planners to acknowledge that their
primary role is to help clients achieve a life well-lived. On page 52, Kate Holmes attests
that by moving beyond the numbers, you can show clients the true value of financial (life)
planning. Kim Potgieter, in her article Building a financial planning business, contends that
for life planning to be successful, it must be at the core of everything you do as a business.
It needs to be part of your DNA, your values and your culture. And it has to be authentic.
After entering the financial services industry 13 years ago, Kim Potgieter realised that
it was a male-dominated industry with little support for females. Kim felt strongly that
women in the sector needed a forum to meet, share experiences and learn from each
other, so in 2013 she founded the Women in Finance Network (page 38).
Palesa Dube, Wealth Creed, argues that the finance industry must become deliberate
in creating a value proposition that speaks to the needs of the female market if we are to
make any meaningful strides in attracting this market segment. Research shows that, in
South Africa, only 3.5% of active funds are managed by a female portfolio manager or a
female-only team. Alida de Swardt, CEO of RMI IM, is passionate about the empowerment
of women in financial services. “There’s a lot of research that shows that diverse workforces
achieve so much more,” she says in Tuning in to the beat of her own drum on page 32.
RMI IM forms part of our focus on boutique managers, and James Downie, MitonOptimal
debates whether it is better to invest in a boutique manager or a more established manager
(page 26). Each article in this issue delves deeper, debates, deliberates and delivers a wealth
of insight into the makings of a blue-chip financial planner. Enjoy the read!
Alexis Knipe, Editor
Blue Chip Journal – The official publication of FPI
Blue Chip is a quarterly journal for the financial planning industry and is the
official publication of the Financial Planning Institute of Southern Africa
NPC (FPI), effective from the January 2020 edition. Blue Chip publishes
contributions from FPI and other leading industry figures, covering all
aspects of the financial planning industry.
A total of 10 000 copies of the publication are distributed directly to every CERTIFIED FINANCIAL
PLANNER® (CFP®) in the country, while the Blue Chip Digital e-newsletter reaches the full FPI
membership base. FPI members are able to earn one non-verifiable Continuous Professional
Development (CPD) hour per edition of the print journal (four per year) under the category of
Special advertising packages in Blue Chip are available to FPI Corporate Partners, FPI Recognised
Education Providers and FPI Approved Professional Practices.
ISSUE 77 | OCT 2020
Publisher: Chris Whales
Editor: Alexis Knipe
Online editor: Christoff Scholtz
Designer: Simon Lewis
Production: Lizel Olivier
Gavin van der Merwe
Managing director: Clive During
Administration & accounts:
Printing: FA Print
Global Africa Network Media (Pty) Ltd
Company Registration No:
Directors: Clive During, Chris Whales
Physical address: 28 Main Road,
Postal address: PO Box 292,
Tel: +27 21 657 6200
Fax: +27 21 674 6943
No portion of this book may be reproduced without written consent of the
copyright owner. The opinions expressed are not necessarily those of Blue Chip,
nor the publisher, none of whom accept liability of any nature arising out of,
or in connection with, the contents of this book. The publishers would like to
express thanks to those who support this publication by their submission of
articles and with their advertising. All rights reserved.
You can either
watch it happen
or be a part of it.
Avalon is aiming higher than ever before
and you do not want to miss it.
Launch your practice to a whole new level with Avalon. Visit www.avalon.co.za to sign up for a free
month. Watch as we continuously innovate and improve the system that will change your practice
forever. Inspire your clients to reach their goals with the powerful financial engineering provided by
We have reimagined the financial planning system and changed the game forever.
On the money
Making waves this quarter
Focus on: The technology sector
TECH SECTOR ONE OF A FEW TO SEE POSITIVE EARNINGS GROWTH
The technology sector has been one of the major beneficiaries of the current pandemic. Technology,
staples and pharmaceuticals were the only three sectors to record positive earnings growth in the
second quarter of 2020 in the US, while overall US earnings growth was down 33% year on year.
Covid-19 has fast-tracked some of the structural trends that were already playing out, as entire
populations have had to embrace e-tail and working from home for the first time. While some of this
shift will be permanent, there will be parts of tech spend that were merely a pull-forward of demand,
and as such are not sustainable going forward. Careful analysis is required to distinguish and quantify
these shorter-term effects and reflect them in valuations.
As the economic growth starts to recover, we are likely to see a recovery in cyclical and leisure stocks.
This rotation may be funded by tech stocks as they have been the clear winners to date. However,
underlying tech fundamentals remain extremely strong and in fact many structural trends have been
• By Nicole Agar, Senior Portfolio Manager & Lead Tech Analyst, Truffle Asset Management
“Underlying tech fundamentals remain
extremely strong and in fact many structural
trends have been further entrenched.”
– Nicole Agar
Emigrant retirement 3-year capture
South Africans who have emigrated or plan to permanently leave South
Africa have until 28 February 2021 to effect financial emigration. National
Treasury has laid down the new law: the consequence otherwise is your
retirement money will be locked in for three years, you are not allowed
to touch it, and best apply it to your personal circumstances.
The time is now
South Africans leaving South
Africa have little over four
months to financially emigrate
under the current dispensation,
and thereafter to withdraw their
retirement funds, before it is
locked in for a period of threeyears
• Jonty Leon, Legal Manager for
Expatriate Tax Compliance at Tax
Consulting South Africa
Satrix hosts first virtual JSE listing
It is Satrix’s 20th-anniversary year and we had plenty of celebratory
plans to fill up everyone’s diaries. Then Covid-19 hit, and holding
happy gatherings became a thing of the past. Adapting quickly to
the new normal, the Satrix team changed direction to still make
The result was another first for Satrix, introducing the industry
to virtual listing events for ETFs on the JSE. Our first event was
held earlier in May this year when we listed the Satrix SA Bond
ETF. We then took it up a notch in July by listing the Satrix MSCI
China ETF, along with an initial public offering (IPO). This digital
listing event meant that the entire Satrix team, all stakeholders
and partners as well as every single client who had participated
in the IPO on our digital platform, SatrixNOW, could be invited
to attend the event.
In total, we had over 500 attendees who enjoyed a digital
walkthrough of how the trading screens operate by the JSE’s
Martin Koch as well as experiencing the blowing of the iconic
kudu horn. At Satrix, we are constantly innovating for our clients.
We have a few more ETF listings planned for this year. Please look
out for them.
On the money
Making waves this quarter
Cryptocurrency: The chameleon commodity
Daniel Kibel, co-founder of CM Trading, shares insight on the current
cryptocurrency landscape: “The cryptocurrency market is still relatively
new and it has completely changed the trading landscape. Regulations
are still quite lax in the crypto space and it’s a particularly volatile
commodity. But it rose to widespread popularity almost overnight
and has seen an unprecedented boom during the pandemic.
Global crypto standards
“The South African cryptocurrency exchange is called Luno.
It was established in 2013 and is based in London. Luno was
recently acquired by the New York-based Digital Currency
Group (DCG), who have backed more than 160 blockchain
companies in 35 countries.
Trading in crypto – the upsides
“Buying crypto and holding onto it may be a viable passive investment.
But trading Bitcoin also means you can speculate and potentially profit
regardless of whether the price goes up or down.
“Ultimately, the volatility of cryptocurrencies is what makes it
such an interesting and exciting space to trade in. Quick
price changes can bring increased risk but also potentially
higher returns. If you would like to get involved in the
cryptocurrency space, begin with thorough research on
the current trading environment. And most importantly,
partner with a reputable trading company.”
What’s making the rand tick
• Bianca Botes, Executive Director at Peregrine Treasury Solutions
The rand’s nadir in 2020 came unexpectedly just
over a week into South Africa’s extreme lockdown.
The local unit bottomed at R19.08/$ on 6 April
2020. After its rapid decline to that level, it spent
the next six months in a generally strengthening
trend, although experiencing setbacks along the
way. By 18 September, the rand had clawed back
over 15% of its value to reach R16.13/$.
But this was still some way off the R13.99/$
level at which the rand kicked off the year. And
while the timing of the rand’s recovery mirrors
the country’s lockdown, it’s important to realise
that the two are not connected. If local factors
were being taken into consideration, the rand
might have moved in the opposite direction.
As a result of the lockdown, the South
African economy suffered untold damage
with estimates for 2020 growth ranging from
a contraction of 8% to 12%, while the global
lockdown measures and risk factors weigh
heavily on the local currency.
The SA economy needs stimulation
There aretypically two levers to stimulate a
faltering economy: fiscal stimulus and monetary
stimulus. Traditionally, fiscal stimulus is an increase
in government spending combined with a
reduction in taxation, while monetary stimulus is
deployed by the central bank, consisting of interest
rate cuts and the purchasing of government
bonds, also known as quantitative easing (QE).
In effect, these measures leave more money in
the hands of businesses and individuals, which
increases their ability to spend money on goods
and services, thereby boosting the economy. QE
has not been used for stimulus, stating that it is
purchasing bonds in the secondary market to
provide liquidity and is not QE, the essence of it is
the same: purchasing government bonds, albeit
not directly from the government.
Can this save SA's economy?
Two questions arise on the back of the
aggressive stimulus deployed: 1) Is it sufficient to
save South Africa's economy? Most likely… “no”.
The local economy was in a recession before the
pandemic, and the subsequent lockdown will
see economic turmoil for years to come. With
the mass closure of businesses, we saw a rapid
increase in unemployment. This will, in turn,
lead to additional fiscal pressure.2) Where to
from here? One cannot rely purely on stimulus
to save the economy. While it remains a valuable
tool for cyclical downturns, it cannot correct or
counter structural shortcomings. Government
policies will require drastic reform towards progrowth
economic policy that will aim to attract
foreign direct investment (FDI), and support the
Where does this leave the local currency?
Stimulus, in the absence of demand shocks such
as those brought on by the lockdown, will lead to
inflation, and the devaluation of currency. In the
absence of demand, stimulus will fail to generate
an uptick in inflation; however, the lockdown
is not infinite, and should too drastic measures
be taken now, such as allowing the SARB to
purchase government bonds directly from
Treasury as a means of funding, the effects could
be catastrophic in terms of severe devaluation of
currency and hyperinflation as seen in Zimbabwe.
What is driving the rand?
Local stimulus pales in comparison with the
US and rand strength has been a reflection of
dollar weakness. The rand will find bursts of
strength from dollar weakness, but the local
unit’s underlying trend points to a weakening
currency in the long term. We would suggest
making use of any rand rally to fill up on foreign
VIR I UAL
Conceptulisation, Design, Design, Creation
• •• Domain registration.
• •• Registration platform with with invitation mailers, mailers, confirmation
mailers mailers and and general general informative mailers. mailers. Post Post event
certificates and and thank thank you you mailers.
• •• Registration portal portal compatible with with various various payment
portals portals e.g e.g Paygate.
• •• Full Full registration analytical information.
Event Event Platform:
• •• Security login login - restricted - - / unrestricted // access.
• •• Branding - Scrolling - - banners, logo, logo, sponsorhip area,
exhibition area area and branded lounges.
• •• Networking capabilities - meetings, - - lounges, chats, chats, social
• •• Reception area area - All - - All All featured sessions and and introduction
to to event. to event.
• •• Agenda - Customised - - to to different to time time zones zones by by delegates. by Full Full viewing viewing of of scheduled of sessions, rating rating systems,
downloadable presentations. Recorded / live // live session
• •• Sponsorship profiles profiles and and exhibitor profiles profiles with with contact
details, details, CTA’s CTA’s (call (call to to action), to action), company information,
videos, videos, banner banner and and logo.
• •• Video Video interactive meetings and and chats.
• •• Limitless number of of attendees. of Technical Support, Analytical Feedback
• •• Pre, Pre, during during and and post post event event support.
• •• Support staff staff allocated to to email to email and and telephone
• •• Troubleshooting during during and and post post event.
• •• Maintenace of of registration of site site and and event event platform.
• •• Branded user user guide guide for for for each each event event with with details details of of all of all all
• •• Speaker briefings, including advice advice of of camera of camera and and mic
• •• Working documents, including; action action plan, plan, agenda,
production schedule, contact contact information, system
requirements and and checklists.
• •• Users: Users: Total Total number of of logged of logged in in users, in users, number of of likes of likes and
comments on on on event event feed, feed, total total business cards cards dropped,
number of of interactions, of breakdown of of client of client requested
positions, designations, interests and and industries.
• •• Sessions / Agenda: // Total Total viewers viewers per per session session along
with with their their sign sign in in and in and out out times, times, total total likes likes per per session,
star star rating rating of of sessions of and and number of of presentation
of downloads per per session.
• •• Sponsors and and Exhibitors: Star Star ratings, ratings, number of of CTA of CTA
link link clicks, clicks, number of of requests of for for for contacts.
• •• Speakers: Star Star ratings, ratings, number of of presentation of downloads
and and views.
email@example.com | 082 | | 082 568 568 1795 1795 | www.thecollaborative.co.za
| | www.bluechipdigital.co.za
Innovative financial coaching programme
There is no doubt that money plays a significant role in
the everyday lives of individuals worldwide, yet it remains
a subject that many feel great discomfort discussing,
especially with family members.
“Money is seen as the last taboo subject in many Western
cultures, as individuals would rather discuss sex, death and
infidelities than discuss personal financial issues,” explains Dr Liezel
Alsemgeest, Director of the UFS School of Financial Planning Law.
“Even though money is not discussed openly, it plays a major
role in everyone’s life since we not only appreciate it for what it
can buy us; we give it significance and are emotionally charged by
it. Money impacts on how others perceive us, as well as how we
perceive ourselves. In many instances, our self-worth is dependent
on how much money we have or how we manage our money.
anxieties of the past and develop a culture where money has its
rightful place in our lives, but that we can be open about it and
not be as socially, culturally and psychologically dependent on it.”
The taboo of speaking to family about money makes the role
of financial advisors – possibly the only person who a client will
discuss their finances with – more important.
Advisors face concerns every day, for example:
• Not necessarily sure how to effectively guide clients through
transitions in their lives (eg divorce, job changes, death) and
having doubts about what advice to give.
• The need to help clients see how their attitudes towards money and
finance influence their ability to accumulate and preserve wealth,
but not always being able to do this as effectively as possible.
• They are unsure about how to
discourage clients from making
emotional decisions regarding their
finances to make better-informed
• The need to help clients define their
real-life goals, based on what is
important to them, and guide them to
achieve in financial terms.
The UFS School of Financial Planning
Law is presenting an innovative
financial coaching programme in
collaboration with Hendrik Crafford,
an experienced professional coach and
financial industry expert.
This intensive coaching intervention
will be presented online over 12 weeks
and will leave you equipped to build
your own unique, client-focused
financial coaching and advice practice.
“Personal financial attitudes, behaviours, beliefs and anxieties
are passed down from generation to generation and herein lies
the possible solution to this problem. Financial openness in the
family context could prepare children for the real world, while at
the same time foster trust. Parents, however, should be very careful
about the specific information provided to children, as well as the
financial messages (sometimes non-verbal) that children receive.
“Parents need to ensure that children grow up to have healthy
financial attitudes and beliefs to become financially healthy adults
that would instil the same values in their children. This can only
be done by trying to rectify the mistakes, negative messages and
The programme will enable participants to:
• Engage in a powerful, highly effective approach to coaching,
leading and advising for positive change.
• Learn how to use language to address the concerns of your
clients more effectively and in doing so, build trust, long-term
relationships and increased value.
• Understand moods, how they influence actions, and how to shift
and manage them to get better results.
• Develop a vocabulary to enable you to observe the narratives that
impact on your clients financial and personal wellness.
• Support clients to design and live a life of purpose.
For a well-established
industry, there is
amount of ongoing
changes taking place
behind the scenes
We are at an interesting point in the local asset
management industry, with several headwinds
facing asset managers. Where we have the ambition
of looking for high-quality, stable investment
propositions, these are generally quite hard to identify, and
when we do find them, we have a permanent anxiety around
their ability to sustain themselves at this high level. The extent
of organisational, process and people changes within an asset
management business is higher than you would expect.
Being a good fund manager
does not easily translate into
being a good business leader.
Human capital businesses, by their nature, have relatively
low barriers to entry and so we find a fragmented industry,
dominated by relatively few large players. There are over 80
separate, independent asset managers in South Africa  . Profit
margins in asset management are attractive which attracts a lot
of competition, but is there room for all of them? Below we list a
few of the headwinds we are observing across the industry, where
we need to objectively evaluate the potential for these issues to
impact our outlook for the funds we cover.
Headwind #1: Access to asset flows. No Money, No Honey.
The ability to build a sizeable client base has proven exceptionally
difficult for smaller managers. In part, this is due to how the
industry has migrated towards fewer “gatekeepers” – platforms,
discretionary fund managers, multi-managers and the like, rather
than establishing close relationships with the end investor.
However, much of this “underachievement” rests with the
managers themselves where the ability to build a good asset
management business, in addition to a good investment process,
is not something we have seen occur frequently.
The resourcing applied to good business management has
been far outweighed by the value placed on investment-related
intellectual capital. The problem is that in many cases, being a
good fund manager does not easily translate into being a good
business leader, and so their success in gaining market traction
has been underwhelming.
A consequence of this is the migration of a number of smaller
asset managers (“boutiques” in the colloquial, but essentially small
asset managers) towards some form of distribution agreement
or partnership whereby a business with a large footprint of fund
buyers acting for the client creates a linked deal with individual
asset managers looking for assets to manage. We count around
80% of the independent fund managers we cover having a form
of “inhouse” distribution to get access to assets to manage. Relying
simply on investors to “buy” funds seems to be a thing of the past.
By design, managers who need access to this asset pool also
have less leverage in a fee negotiation, so they can potentially give
up their “crown jewel” mandates at relatively low fees, creating
longer-term business longevity questions.
Secondly, where smaller managers have partnered with fund
distributors, they are often allocated mandates where they are not
necessarily ready in terms of their capacity to manage the assets.
A balanced fund for example requires the full suite of expertise:
local and offshore equity, fixed income and asset allocation, and
this requires a substantial investment over a long period of time
Ultimately the asset managers are becoming dependent on
fund distributors, and this leads to headwind # 2: fees.
Fee pressure creates an additional business model problem, where
advisor’s business. The advisor has the
ability to consistently and efficiently
small managers implement their generally investment advice have a higher hurdle to make ends meet,
client base by using
have high legacy cost bases to fund.
of portfolios through a Discretionary
Category II licence, either that of the DFM,
or their own.
A fourth benefit of outsourcing to a
Headwind #2: Fee DFM pressure. is one of governance The Big Squeeze. and compliance.
While assets have The increasingly DFM should moved be able from to large ensure scale, that low-cost
institutional pools similar towards clients retail are products, treated we consistently have not seen a
commensurate (and reduction therefore in fees reduce to TCF reflect concerns), this. The that average
investor is still paying the advisor a premium has a documented for investment investment management
fill the demand for offshore assets from investors. In many cases
there are high-quality fund managers coming into South Africa, at
significantly lower fees. Not only does this lower the fee potential
for existing local managers (headwind #2), it also reduces their
potential market share (headwind #1).
despite the cost process, efficiencies and of running that comprehensive larger unit trust due funds. Why
is this so? Common diligence sense is should provided tell on us the that funds many used. competitors
should drive down The high RDR investment discussion fees, paper not led preserve to many them. We
do see signs of this claims changing: that independent financial advisors
• A few of the (IFAs) smaller would fund struggle managers to survive are reducing and thrive costs to try
to entice new once clients. RDR is implemented, and that IFAs
• “Premium” larger would managers need to who either have sell captured their business the lion’s to share
of the market a have corporate had mixed or outsource performance, to a DFM. undermining the
Headwind #5: The value cycle. How Low can you Go?
Value managers gained prominence in South Africa in the postdot-com
era when overpriced new-economy share prices imploded,
allowing the old-economy value managers to outperform. Asset
flows chased performance and many investment products oriented
toward a value style. Post the Global Financial Crisis (GFC) we have
seen a difficult environment for value managers, where for the
premium fees they We charge. do not agree Investors with are that questioning assertion. We whether long-term most business part, expensive partner to shares an advisory have stayed • Global expensive, and local and portfolio cheap construc
this premium believe is worth that paying. the majority of investment IFAs business. value shares have stayed cheap. This long-term capabilities. underperformance
• With clients do increasingly not have to organised make material in collective changes in groups, We believe has had that several the two casualties most important where businesses • The skill have and either relevant closed experience of
negotiating power their business is starting to to comply shift from with the RDR, fund and manager factors that doors, advisors lost significant need to consider flows or when needed to core change investment their investment team.
to the investor. we This do not trend believe is consistent that this should with what be the we see choosing approach a DFM are: to survive.
• The DFMs back-office compatibility w
the UK market, reason and has for resulted using a in DFM. large-scale It is an fee added reductions • Understand With the this unique value value bias being proposition prevalent in the many advisor’s investment current pro- processes.
to investors. benefit but should not be the key driver. of the cesses, DFM structural given how industry different underperformance the • The scale has been of the commonplace,
DFMs’ and offerings has led investors are, and to question how • their The fee fund structures. managers, and
Fee pressure creates In summary, an additional the services business of model a quality problem, various
where small managers DFM can generally benefit a have financial a higher advisor hurdle in the to make this value move proposition to alternatives complements including low-cost the passive funds.
ends meet (small following assets at ways: lower fees), and large managers typically advice process.
have high legacy • cost An bases evidence-based to fund (large assets, investment declining fees). • Make What sure can that we there expect? is a good culture
In our opinion, DFMs do have an impor
role to play in helping advisors
Offshore there has philosophy been a strong and process pattern that of aligns large with managers and philosophy We believe the fit between trends highlighted the advisor above professionalise are relatively entrenched,
and grow their busines
merging to deal with the the business’s lower fees advice expected framework in future.
• A sustainable investment range that is
Headwind #3: Emigration able to cater risk. to All different My Bags client are needs Packed.
and the bar DFM. headwind #5 where conditions today ensure are very consistent much in investment favour outcom
Meeting of these value-based considerations approach. will decrease However, improve the trends communication of increasingly to clients
the probability difficult access of “buyer’s to assets, remorse” pressure from on fees, enable new offshore advisors competitors
to focus on their core
Emigration is nothing • Consistently new, but it comes managed at a time portfolio now when an we advisor and disruption who getting of investment something teams through of giving emigration comprehensive are here financial ad
do see vulnerability, solutions especially across in the client larger base managers. Looking different to from stay. what they expected, and to clients.
back, today’s established • Access to a winners dedicated made team their of investment gains building ensures that We when expect differences to see consolidation of opinion
strong investment specialists propositions in a market where life company emerge, or there attrition is common among ground investment and
asset managers • held Consistent the majority and of assets. cost-effective
Rolling forward respect to businesses. between the The parties industry to simply allow for has a
today, these businesses implementation have reached high across levels different of market share, compromise too many that fund does managers not disadvantage for what
managers have benefitted investment as a platforms result, and so they can start to look the client. has been a relatively slow-growing
outside of our borders • Constant given compliance the success with they the have various had. South Key factors pool of assets. to investigate Going forward, when carrying we are
African-specific risks regulatory also undermine requirements. the long-term stability of out any your keeping due diligence a keen eye on the on DFM these options issues
management team. We have seen a few departures already include: and and the potential implications for
expect to see more All DFMs soon. are This not does created have the equal potential to hollow • Whether funds the DFM we cover. is independent We hope to see and
out investment teams, Advisors which are clearly do not ordinarily spoilt for choice run with given deep levels how the important strong independence businesses emerge is to the so
of cover. all the DFMs now operating in South Africa. advisor. that we have the luxury of choice
However, because they are still a relatively • The in investment future. philosophy and
Headwind #4: Offshore new concept competition. to many advisors, David vs choosing Goliath. a performance history of the DFM.
With similar trends DFM offshore can be (fee overwhelming. pressure, distribution The right pressure) DFM • we The depth  Source: of the RMI DFM’s Boutique global Asset and local
have seen global has managers the potential increasingly to be come a transformative,
into South Africa to research Management capabilities. Study, 2016
Ian Jones, CEO, Fundhouse
Blue Chip sits down
with Zisanda Gila from
Zisanda, you are lead portfolio manager at Momentum
Investments. Please share with our readers your journey that
led you to this point of your career.
I have been in the investment profession in different capacities for
over 15 years and my portfolio of responsibilities gradually evolved
over the years. My journey in the investment arena began when I
joined Metropolitan Asset Managers as a fixed-income dealer, and
I later moved to a money market analyst and co-portfolio manager
role working under supervision. In 2015, I started in my current role
as lead portfolio manager at Momentum Investments, managing
over R40 billion of assets across various money market strategies
within the fixed-income team.
From joining the financial services industry more than a decade
ago, I have found my career to be a fulfilling and meaningful one.
Coming from a family where perfectionism was encouraged, and
given my strong mathematical background, academically my
career was on course. However, the actual journey did not come
without its difficulties. Having someone in your corner and having
the right determination and the drive to succeed boosts your
chances of success in the industry. I have found mentorship to be
very pivotal to my career navigation. It has made me aware of my
strengths and developmental areas and encouraged me to take
opportunities that come my way.
Please tell us about the funds that you manage.
Our money market funds range from low-risk
cash funds to enhanced yield strategies. All
our funds aim to provide liquidity, inflation
protection and enhanced cash returns superior
to banks’ overnight deposit rates. We offer these
solutions in segregated portfolios, collective
investments and pooled funds across our assets
What is the strategy for these funds?
Our outcome-based investing approach
helps in solving for appropriate investment
outcomes and helps our clients understand
and articulate their needs and return
expectations. We construct our portfolios
to align with regulatory requirements
in the clients’ respective industries of
operation and ensure the clients’ objectives
are achieved by first formulating interest
rates views and aligning investments with
clients’ risk appetite and tolerance. We consider management
of risk to be a fundamental aspect of portfolio management. As
a result, significant emphasis is placed, within our investment
process, on the identification and monitoring of risk.
Fundamental credit research and analysis plays a defining role
in our asset selection and asset allocation decisions. This is key
and supported by our research to seek risk-adjusted returns from
the various curves and assets. Since credit risks can have many
layers, diversification is a continually moving target. I believe
diversification of strategies leads to more consistent returns over
time. We therefore buy a variety of asset classes from various curves
that meet our valuation and risk hurdles. This is the classical theory
of not placing all your eggs in one basket in practice.
Please outline their performance.
The performance of the portfolios is measured against the STeFI
benchmark, with an outperformance objective of up to 1.50%
above the benchmark. We strive to attain the highest possible
return on investment for our clients for a given (usually low)
level of risk, consistently over a long period. A highlight was the
Momentum Enhanced Yield Fund winning the Raging Bull Awards
in 2019 and 2020, as the “Best South African interest-bearing shortterm
fund on a risk-adjusted basis” over five-year periods. This
achievement has motivated and brought the team together in
pursuing a common purpose of delivering superior returns.
How has Covid-19 affected your portfolio of funds?
At the heart of our fixed-income strategies is daily liquidity
management. During the Covid-related sell-off in global financial
markets in March, our portfolios were not spared of the outflows
from underlying investors. There was a brief period in April when
the banks had excess liquidity, and we were able to sell back our
bank paper holdings to raise cash for these liquidity requirements.
There was also notable portfolio de-risking and asset class switches,
which resulted in cash neutral positions.
What is the outlook of the funds?
The funds’ strategy has been to invest in fixed-rate notes as
the interest rates continued to fall and the curve flattened. We
continued to increase duration as the market goes through periods
of risk-off. We remain cautious of credit quality but are finding
more attractively priced opportunities as spreads widen to our
fair value levels. We maintain hurdle rates in the different funds
through a combination of fixed and floating when valuation
supports our investment decision.
“We consider management of risk to be a fundamental
aspect of portfolio management.” – Zisanda Gila
Your clients’ investments
and the world we live in.
Why not grow
At Momentum Investments, we want investors to do well and do good. We believe investments that consider social and
environmental implications, are the ones that really pay off. So we support environmental, social and governance (ESG)
investing, also known as responsible investing. ESG examines the long-term health and stability of the market as a whole
to help create investments that are good for both your clients and the world we live in. We’re here to help your clients
achieve their goals on their investment journey. Because when it comes to sustainable investment growth, for us it’s personal.
To find out more, visit momentum.co.za
Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services (FSP6406) and registered credit (NCRCP173) provider.
Can South Africans
REBUILD their WEALTH
Coronavirus has left mass economic devastation in its wake
Pre-pandemic, many investors had already externalised
funds to mitigate the erosive impact of South Africa’s ailing
economy, but what about those who are only now looking
at investing offshore? Covid has had far-reaching effects so
where do the clever opportunities lie for South Africans to rebuild
their wealth post-lockdown?
According to Andrew Ratcliffe, director at Private Client Holdings,
a smart option for investors to build a diversified offshore portfolio
is with actively managed certificates (AMCs), which have become
increasingly popular for a number of reasons.
“In the past, South Africans invested offshore through options
such as feeder funds and asset swaps, as well as by utilising their
offshore allowances, but there are now new-generation offshore
investment opportunities available – such as AMCs – which offer
a smart way to invest offshore and are a great building block for
those looking for diversification
in their portfolios,” says Ratcliffe.
“AMCs, otherwise known as
‘inward listed notes’, have been
around for some time but have
only recently become popular,
given South Africans’ appetite
to explore alternatives in the
Ratcliffe advises that local
investors can access and benefit
from the performance of the
global investment portfolio with
an AMC (such as the PrivateClient Global Growth Portfolio) rather
than a vanilla index tracking Exchange Traded Fund (ETF). “These
portfolios aim to optimise risk-adjusted returns by diversifying
across a number of asset classes, including equity, alternatives,
listed property and fixed income. Private Client Holdings’ managed
AMC is focused on generating Alpha while outperforming the
indices and delivering a decent risk-adjusted return for our clients
while not following conventional products.
“AMCs give the investor the ability to access offshore companies
and growth strategies without the need to expatriate funds for
foreign investment purposes. This removes any reliance on JSE-
Listed Exchange Traded Funds (ETFs) to gain offshore exposure
through a local segregated investment account. In addition, an
investor’s offshore allowance is not utilised as the AMC is a South
African Rand-denominated inward-listed security, which makes it
a tax-efficient vehicle where portfolio rebalances/reallocations do
not create a taxable event.”
According to Ratcliffe, unlike traditional passive financial
instruments, AMCs are characterised by a discretionary, and
therefore active, management of the underlying assets. The
composition of the underlying assets changes over time based on
decisions made over the life of the certificate by a third party (the
portfolio manager). This does not trigger a capital gains tax event.
“AMCs can also be constructed to be entirely bespoke, taking the
strategy and preferences of the investor into account – perhaps
they wish to focus on biotechnology or renewable energies, for
example – while also being aware of the risks of high concentration
of shares in any one sector.
“New-generation offshore investment opportunities
such as AMCs offer a smart way to invest
offshore and are a great building block for those
looking for diversification.” – Andrew Ratcliffe
“AMCs combine the flexibility of structured products (favourable
tax structure, low entry level, speed of issuance, and efficient
cost structure) with those of classic investment funds (portfolio
diversification and adaptability to different market conditions).”
This kind of investment is suitable for investors who:
• Own companies, trusts, and living annuities (as well as
• Are looking for exposure to a global growth portfolio but have
either utilised their annual offshore allowance or have SARB
• Would like to replace the use of locally listed offshore passive
ETF strategies with an actively managed equity instrument.
• Can withstand some market and currency volatility in pursuit
of enhanced dollar returns over the medium to long term.
“All investors are taxed on Rand gains, but only when they
sell the AMC in its entirety. There are no situs inheritance tax
issues, so this is still tax effective from that point of view. AMCs
are a great, well-priced investment
vehicle for people who are close
to retirement as they form a solid
building block in one’s living
annuity. They offer an easy bespoke
way to diversify retirement funds,”
“The AMC has proved to be a sound
strategy in the current Covid-19 bear
market. Many South Africans are look-
ing at alternative options out of
fear for the current climate in South
Africa – political turmoil, economic
crisis, fraud and corruption, new
restrictive regulations and concerns
around prescribed assets have South
Africans running scared. Over the past
100 years, South Africa has had one
Andrew Ratcliffe, director of
of the strongest-performing stock
Private Client Holdings
markets in the world; however, one
needs a crystal ball to tell if it will be
different this time and whether South Africa can survive the next
“Added to this, more South Africans are becoming part of the
global village as they travel abroad more regularly or consider
relocating overseas – AMCs offer a good alternative to get one’s
investments offshore without following the conventional avenues.
“Whatever your reasons, it is short-sighted to not look at
diversifying offshore and AMCs offer an easy, bespoke, affordable
and tax-efficient solution for the overseas diversification of
investment funds,” says Ratcliffe.
“The PrivateClient Global Growth Portfolio AMC has yielded
great results for our clients and for those looking to diversify it
makes absolute sense to consider this AMC.”
PRIVATE CLIENT HOLDINGS
Private Client Holdings was founded as a corporate
tax consultancy in Cape Town, South Africa, in 1990.
Since then the company has developed into a fullspectrum
Asset and Wealth Management Company
and multi-Family Office with six specialist divisions:
Wealth Management, Portfolio Management, Financial
Services, Fiduciary Services, Cash Management and
Private Client Holdings are taking the lead in southern
Africa when it comes to providing high-net-worth
families with an all-inclusive wealth management
solution and recently secured second position overall
in the Top Wealth Manager: Boutiques in the Intellidex
Top Private Banks & Wealth Managers Awards 2019.
They also placed third in the Passive Lump-sum Investor
Award and second in the Successful Entrepreneur
Award. The award they are most proud of is placing
second in the People’s Choice Award – an award based
purely on feedback from a confidential client survey.
Private Client Portfolios, the Portfolio Management arm
of Private Client Holdings, has been awarded the title of
“Best Investment Advisory Team – South Africa 2019” in
the Capital Finance International Award – this London
based CFI.co awards programme identifies individuals
and organisations worldwide that truly add value
through best practice within their industry.
For further advice or information contact Andrew Ratcliffe on
Andrew@privateclient.co.za or Private Client Holdings on (021) 671 1220
or visit www.privateclient.co.za
in the time
How to navigate a smoother retirement
Retirement matters – to everybody. Generally, it is our biggest
asset and one we spend years and years accumulating. It
is no surprise therefore that there are a lot of decisions to
be made with regards to these savings as we draw near to
old age – decisions which have long-lasting impacts.
Making these decisions at the best of times is daunting – but
against the backdrop of Covid-19, it is an even more intimidating
task and, understandably, people feel vulnerable, regardless of the
retirement savings they have accumulated.
tax-free investment. However, remember that your tax-free savings
currently have a lifetime limit – so if you withdraw from this, you
cannot replace it and you would be foregoing the long-term taxfree
savings. The final option is to use your retirement savings, if
they are accessible.
For those who are not yet 55 years old and have a preservation
fund, you are permitted to make one withdrawal. However,
you would not be able to access the money in your Pension or
Provident Fund, if you are still employed.
What should you do if you are preparing for retirement?
For many people it’s time to start looking at retirement differently.
The reality of retirement has changed. The savings one has
accumulated at retirement are no longer guaranteed to last
through your retirement years due to higher costs of living, the
effects of forces like inflation and longer lifespans. Encouragingly,
the engagements that the Nedgroup Investments team has had
with people approaching retirement reveal that many people see
this stage of life as an opportunity to reinvent oneself. While
retirement from formal employment is likely, many people are
open to other avenues of generating income thereafter.
Ensuring a sustainable retirement capital is crucial. Staying
informed with regards to your financial affairs, keeping in touch
with financial experts and practicing responsible spending are still
paramount for people approaching or in retirement.
What if you need money now due to Covid-19?
Many people have been made redundant or have fallen on hard
financial times as a result of the Covid-19 pandemic. No amount of
planning could have prepared people for this kind of event, so it’s
important to remain realistic in terms of financial needs.
Before dipping into retirement savings, the best place to start
is with your general savings. The second option is to use your
The Nedgroup Investments
MyRetirement Solution offers an
in-person and online support
system designed to help people
make better decisions about
their retirement investments.
Tracy Jensen, Senior Investment Analyst, Nedgroup Investments.
If you are in the unfortunate position of having been retrenched,
you have the option of taking a cash portion from your retirement
savings, which will receive favourable tax treatment. The important
consideration to be aware of here is that you are reducing your tax
benefits at retirement.
On the other hand, if you are 55 years or older, you have the
choice to retire from any Preservation Fund or Retirement Annuity
Fund that you may have. If you choose to retire, you will have
to commit to a minimum withdrawal amount. This needs to be
carefully considered. The important thing to balance is your need
for income now and your long-term need for income.
Can you afford to retire early?
An analysis of the income you plan to take in retirement will give
you a real sense of how achievable this is for you. A survey of
people approaching retirement revealed that, generally, people
overestimated the income they assumed they could draw down
in retirement by about two to three times.
The Nedgroup Investments MyRetirement Solution offers
an in-person and online support system designed to help people
make better decisions about their retirement investments.
Book a free, no-obligation session with our retirement coach
to help you answer the question of what a sustainable income is
for your circumstances.
The cumulative effect of delaying
your retirement by three years
has a six- to nine-year benefit.
What impact does delaying retirement have?
There is also the option to defer retirement. Delaying retirement
by just three years can have a huge impact on your position in
retirement. This is due to you contributing towards your retirement
fund for three extra years and that you will be drawing an income
for three years less. In addition, the power of compounding is
most effective in the final years before retirement. The cumulative
effect of delaying your retirement by three years has a six- to nineyear
benefit. Another good tip is to use the years leading up to
retirement to deleverage your finances to reduce the burden on
you in retirement.
How much money is enough to retire?
Calculating how much money you need to save for your retirement
is a conundrum for most people. Using tools like the Nedgroup
Investments MyRetirement Solution is an advantage.
Some important things to remember when deciding how
much is enough to retire on:
• You should grow your income relative to inflation. Inflation
is the silent killer to retirement savings.
• Consider your medical costs as they generally increase
• Study your expenses and be realistic about what you
absolutely need to live on and what is “nice to have”. This will
give you an idea of what retirement income you will need.
• A rule of thumb is to aim for a retirement income of 60-70%
of your final salary.
What are the options in retirement?
At retirement you typically have two options of how to use your
retirement savings to provide you with an income:
• Life annuity
A life annuity provides a guaranteed income for your
(and your partner’s) life with set increases. However, you
are not able to leave capital as inheritance. You also have
no flexibility to amend your income or change providers
• Living annuity
A living annuity, on the other hand, allows one to
choose your income each year. It is market-related and
will fluctuate depending on the performance of its
underlying investment portfolio and therefore does not
guarantee that the income will last. With a living annuity,
it is possible to leave money behind as inheritance.
Each annuity has pros and cons, so choosing one annuity
seldom meets all a retiree’s needs.
Another option is to split your savings at retirement and
purchase both a life and living annuity. Currently, the law neither
prohibits nor allows the purchasing of multiple annuities, so it is
worth checking with your provider what they allow.
The best of both worlds: Nedgroup
Nedgroup Investments offers the Living Annuity Plus. Designed
to address the most typical concerns and limitations of traditional
annuities, the Living Annuity Plus
effectively provides longevity
protection while still allowing
retirees the flexibility to select
their income and enabling
provision for an inheritance.
The MyRetirement Solution has
a dedicated and experienced
retirement coach available
to help people approaching
retirement develop a plan
for their unique needs and
expectations. The coach is
available to them for life and
can walk pre-retirees through
several scenarios with the tool
so that they can see the impact
of their retirement decisions
before making them.
Liezel Momberg, Head of Legal,
For more information, visit https://myretirement.nedgroupinvestments.co.za/en/
Leading by action
With a career built on sterling positions within the financial services sector,
Kondi Nkosi has found the seat that will forever change his profession: the
seat of Schroders, Country Head, South Africa. Blue Chip caught up with
him to find out what is happening in the offshore investment sphere.
Kondi, you took over as Schroders’ Country Head, South Africa
in April 2020 – an extremely difficult time to take over the reins
of an offshore investment company. Please tell us about your
last few months.
It was a very challenging time from many perspectives, let alone
from an investment markets’ one. The primary focus for us was
the health and wellbeing of the team on the
ground. Fortunately, in our firm, it is relatively
easy to work from home without any impact on
the ability to do our work, given the investment
in technology we have made over the years.
We spent a lot of time interacting with our
partners and clients, reassuring them that we
were navigating the turbulent times in markets.
There were several investment management businesses that either
succumbed to the economic fallout of the pandemic or had to
reassess how they do business. Schroders was in the fortunate
space of having a strong financial position and a diversified
business model that allowed us to navigate the tough times
without having to seek external assistance or having to reduce
staff on a temporary or permanent basis.
What is your leadership style?
I am a strong believer in leading by actions and bringing people
along with you. “If you want to go quickly, go alone. If you want
to go far, go together.”
Why should investors consider offshore?
Offshore provides diversification to an investor’s portfolio. It is a
prudent approach for investors to diversify their exposures so that
they manage their risk.
Other global markets have significant comparative advantages
that may not be available in South Africa (industries like aerospace,
high-tech biomedical research and others). Opening oneself to
those opportunity sets can potentially help enhance the returns
on an investment portfolio.
It allows investors to get exposure to other economies that
may be experiencing higher degrees of
“If you want to go
quickly, go alone.
If you want to go
far, go together.”
economic growth. For example, investing
in a fund that invests in domestically
listed China A-share companies, that
derive the bulk of their revenues from the
domestic economy, allows for diversified
exposure to the China theme. While there
are South African companies that derive
some revenues from that economy, it would not compare to the
domestically listed Chinese companies.
Last year, the FSCA approved four funds to add to Schroders’
comprehensive range of offshore options. Please give an
overview of these funds.
We have been adding to the menu of funds that are approved
by the FSCA and now have a broad range of 12 funds that have
received approval. Last year, we added four more [see below].
Three more funds were approved by the FSCA in 2020:
Schroder International Selection Fund (ISF) Global Gold (invests
in companies worldwide that are involved in the gold industry),
Schroder ISF Global Equity (another global equity fund that looks
for underpriced shares relative to our expectations for future
growth) and Schroder ISF Global Managed Growth (a flexible asset
allocation, multi-asset offshore fund that aims to outperform a 60%
global equity/40% global bond benchmark).
SCHRODER INTERNATIONAL SELECTION FUNDS
Global Sustainable Growth
A high conviction, global equity offering,
managed by our Global Equity team, that
focuses on companies whose growth
prospects we believe the market has
underestimated. These companies aim
to provide positive earnings going
forward. A cornerstone of the process
is also the degree of sustainability
(determined by our inhouse model)
these companies display.
All China Equity
This fund invests in companies
that derive a large portion of
their earnings from China,
irrespective of where they are
listed. Our team believes that
these companies are, or will be,
able to consistently generate
returns on invested capital above
the cost of capital, and thereby
generate returns for investors.
Asian Equity Yield
An Asian equity fund managed by
our Asian equity team. We have had
a presence in Asia since the 1970s
and the team has a strong track
record. The fund invests in comp-
anies in the Asia Pacific (excluding
Japan) region that pay dividends
now but also retain enough cash
to reinvest back into the company
to generate future growth.
US Dollar Liquidity
A fund that invests in
US$ money market
instruments. It provides
investors access to
securities and aims to
provide income by invest-
ing in short-term bonds
denominated in USD.
HOW TO NAVIGATE
Sound advice by Florbela Yates, Head of Momentum Investment Consulting
What a year 2020 has been so
far! The effect of the Covid-19
pandemic on South African
economic growth has been
severe and markets around the globe
continue to be volatile, not only as a result
of the pandemic but also due to investor
sentiment and political issues.
So how do investors navigate these
times? The starting point should be to
sit down with your client and establish
whether their circumstances have changed
and, if so, whether their existing portfolio
still meets their requirements. Then, it’s
also worth ensuring that the investment
manager appointed to run the portfolio
is actively doing so. The world has been
through severe pandemics, US presidential
elections, recessions and market volatility
before. Markets go through cycles and
we don’t know how long or severe the
current crisis will be. But we do know that
you should highlight the importance of
continuing to save and staying invested
so that clients can still meet their financial
obligations and achieve their long-term
If portfolios delivered disappointing
returns, it’s worthwhile understanding
what has driven these returns. Don’t sell
out just because you see another portfolio
doing better. History has taught us that
selecting funds based on short-term past
performance is dangerous and invariably
leads to poorer outcomes.
Ensure that you are comparing like with
like. What asset classes are the portfolios
invested in? Do they have similar offshore
exposures? How do they compare to the
peer group average over the longer term?
And engage with the portfolio manager to
understand what they are doing to position
the portfolio for the future.
The unit trust statistics continue to
show a trend towards de-risking as
investors continue to lose faith in the more
aggressive funds being able to deliver
on their performance expectations. The
problem with exiting after poor returns is
that you lock in those losses. Investors that
are prepared to wait for a future recovery
may not only make back these losses but
potentially have some gains.
Markets go through cycles and we don’t know
how long or severe the current crisis will be.
You should also consider the other
costs of disinvesting and switching. Your
client may still incur capital gains tax, and
there is the opportunity cost of being out
of the market when the recovery starts.
People wait for confirmation of recovery
before committing. So, investors who exit
portfolios after a market downturn and only
enter again after the recovery is confirmed,
lose out on both sides of the investing
cycle. While those that remain invested
will experience the shorter-term volatility,
our statistics show that they are invariably
compensated for staying in the market.
True diversification requires investments
in several asset classes and there is a
very strong argument for South African
investors to have a portion of their assets
invested in offshore markets. The amount
again depends on your client’s personal
circumstances and risk appetite.
At Momentum Investment Consulting,
we believe it is as important to learn from
our past, as it is to consider the positioning
of our portfolios for the future. We spend
time investigating the current market and
trying to determine which changes are
structural versus those that are cyclical.
In a low-return uncertain environment,
being in a diversified portfolio isn’t
enough. It’s important to look deeper to
gain an understanding of the drivers of
return given the current interest rates and
growth expectations. It’s also important to
understand that real returns don’t come in
a straight line and to be realistic about the
real return expectations. Over the short
term, real returns are unlikely to be as high
as we have seen before, but by having
exposure to quality assets which tend to be
more resilient, we believe there are enough
opportunities out there to deliver on our
clients’ longer-term objectives.
Florbela Yates, Head of Momentum
THE PUBLIC EYE
Africa is an
Petroleum Agency SA invites the world to “Explore South Africa”, and to discover the robust petroleum
resources that have the potential to drive this economy. CEO Dr Phindile Masangane tells Blue Chip
how investors can benefit from the South African oil and gas upstream sector.
Please tell us about the history of Petroleum Agency SA.
Petroleum Agency SA (PASA) has its roots in the Petroleum
Licensing Unit of the then national oil company, Soekor (the predecessor
of PetroSA). In 1999, following the Norwegian model, it
was decided that regulation of the oil and gas upstream industry
should be separated from the national oil company, and the
Agency was formed through a ministerial directive.
The Agency has successfully attracted major explorers
to South Africa and facilitated the acquisition of many new
large seismic surveys and some exploratory drilling, through a
period affected by legislative issues and a major oil price crash.
The company has grown from an organisation of about 25 to
85 staff today and is held in remarkably high regard by the
local and international oil and gas industry that it serves. Currently,
the agency is actively involved in shaping the new stand-alone
upstream legislation and in guiding government with its decisions
regarding the possible exploration for shale gas.
South Africa has a particularly
good petroleum resource potential,
which remains unexplored.
What is PASA’S core business function?
PASA has three main functions. The first is to attract investment to
South Africa’s oil and gas upstream industry through investment
into exploration and production of oil and gas in South Africa. We
have a team of geologists and geophysicists who interpret data
gathered through past exploration activity to determine prospects
and use this to attract exploration companies.
The second function of PASA is to regulate the upstream
industry in terms of the Mineral and Petroleum Resources
Development Act, its regulations and other applicable legislation.
The Agency has staff responsible for ensuring legal, technical
and environmental compliance as organisations enter contracts
with the state to explore for oil and gas.
The third function is to act as the national archive for all
data and information produced during oil and gas exploration
and production in South Africa, and to curate and maintain this
data for use and distribution. Other functions include advising
the government on any issues pertinent to oil and gas as well as
carrying out any special projects, as directed by the government.
Where is the Agency at in terms of its market position?
The Agency’s competitors are similar organisations in Africa,
and beyond, attempting to attract oil and gas exploration
investment to their countries. For a long time,
South Africa has not been seen as a destination
for such investment, paling into insignificance
in relation to countries such as Angola and
Nigeria, both rich in oil, and even more recently
Mozambique with its enormous gas discoveries.
Our political stability, relatively advanced
development, independent courts and equitable
terms have always been our strong hand. The
recent world-class Brulpadda discovery and
South Africa’s potential for shale gas are helping
to change perception and the upcoming standalone
oil and gas legislation will further strengthen
You have recently taken over the position as
CEO of PASA. Please share with us some of your
ideas in terms of plans and strategies growing
and improving PASA?
South Africa has a particularly good petroleum
resource potential, which remains unexplored.
Prior to 1994, we did not have international oil
companies in the country due to the political
sanctions. All the exploration activities for oil and
gas in South Africa were undertaken by Soekor.
Oil and gas exploration is a highly capital
intensive and high-risk business that cannot
be left to a national oil company to do alone. In
the democratic era, we have attracted several
international oil and gas companies, including the
majors like Shell, Total and ExxonMobil and have
seen a few of our blocks being licensed. Significant
exploration activity in terms of 2D and 3D seismic
data collection has taken place since then, mainly
by international oil companies.
Where we are, is that we need to enter the next
phase in terms of exploration – that of significant
drilling activities. We need to move to prove the
resources we have. This will be the game-changer
for South Africa’s upstream oil and gas industry.
The recent discovery by Total and its JV Partners
in Block 11B/12B (Brulpadda) is the first giant step
in that direction.
My role is to work with industry and the
department to fast-track these developments
including finalising the Upstream Resource
Development Bill. As we enter this phase in our
industry development, we want to ensure that it
is an inclusive and diversified industry in terms of
race, gender and participation of SMEs.
What would you consider to be PASA’s main
South Africa is playing catch-up in terms of
upstream oil and gas development compared
to other countries in the region. With the
correct policies, fiscus proposition and domestic
industry off-take opportunities we can win. PASA’s
challenge is to ensure that both international and
local energy companies see this value proposition
in South Africa and choose our country. In this low
oil and gas price environment, companies are
inclined to cut back on capital investments,
and we need to partner with them to sustain
What do you predict the company’s
biggest success will be in the future?
A vibrant upstream oil and gas industry
that contributes to the security of our
nation's energy supply and the economy
having a substantially reduced
dependence on imported gas.
Do you think that a woman
leader, in your position in
the energy sector, will make
a different impact on the
Women are naturally long-term
visionaries and PASA is an important
institution in the South
African energy landscape. For the
country to properly regulate the
industry that is about to burst
into the next phase of increased
production, I am looking at the
long-term sustainability of PASA
as well as PASA’s capability to
grow in tandem with the anticipated
growth of the upstream oil and gas
industry in South Africa.
Any blue chip advice for readers?
The next phase of drilling in
the South Coast is starting in
September 2020 and it is in deep
waters, deeper than 1400m, similar
to the depths where the gigantic
Rovuma gas finds in Mozambique
Follow PASA on Twitter for
more on this exciting economic
DR PHINDILE C MASANGANE: PHD
CHEMISTRY, MBA, BSC (MATHEMATICS &
Dr Masangane was appointed as the Chief Executive
Officer of the South African upstream oil and gas
regulatory authority, Petroleum Agency South Africa
(PASA), in May 2020.
Before then, Dr Masangane was an executive at
the South African state-owned energy company, CEF
(SOC) Ltd, which is the holding company of PASA.
Dr Masangane was responsible for clean, renewable
and alternative energy projects. In partnership
with private companies, she led the development
of energy projects including the deal structuring,
project economic modelling and financing on behalf
of the CEF Group of Companies.
Her responsibilities also included supporting the
national government in developing energy policy and
regulations for diversifying the country’s energy
mix. In 2019, Dr Masangane was Head of Strategy
for the CEF Group of Companies where she led the
development of the Group’s long-term strategic plan,
Vision 2040+ as well as the Group’s gas strategy.
Between 2010 and 2013, Dr Masangane was
a partner and director at KPMG responsible for
the Energy Advisory Division. In this capacity, she
successfully led the capital raising of $2-billion for
the Zimbabwe power utility, ZESA/ZPC’s hydro and
coal power plants expansion programmes.
great boutique debate
The debate about whether it is
better to invest in a boutique
manager or a more established
manager has been argued for
years. It joins the list of value vs growth,
onshore vs offshore, small cap vs large cap,
flat fee vs performance fee and many other
hotly contested comparisons.
Firstly, one can become bogged down
in definitions about what constitutes a
boutique. Most agree it is a function of
the size of assets under management but
is it the size of, say, the equity portfolio
or balanced portfolio or the size of the
manager’s total assets under management
across all mandates? For example, many
larger, more established managers allow
proven professionals to manage relatively
tiny specialist portfolios within a much
larger house. Conversely, some boutique
portfolios are sizeable.
Secondly, it is not clear what is meant
by “better”. It seems to make sense that
a “better” manager outperforms a not
so good one. However, the argument
becomes more nuanced about before and
after fee performance and the power of
the brand. Many investors are prepared
to sacrifice some (usually, poorly defined)
amount of performance for the peace of
mind of being invested with a manager
with a powerful brand splashed all over
airports and televisions.
Luckily, the South African investment
market is both world-class sophisticated
and quite small so this article will concentrate
on the South African industry
and within that equity only funds or
funds that are listed in the ASISA General
cover a much wider
range of returns.
The better ones tend
to be dramatically
the poorer ones
have been awful.
That category has 75 funds listed
in it; fortunately, many of those can be
ignored for this exercise due to specialist
mandates such as funds that invest in only
technology shares, for example, or Islamic
funds or themes such as value, emerging
markets and others. The final constraint is
to consider only active managers and not
passive or index-tracking managers.
This analysis has highlighted twelve
boutique managers and eight larger or
more established managers.
Before examining the specifics of what
South African boutique managers have
achieved, there are some theoretical
agenda items usually propounded in the
1. Smaller managers are nimbler and can
buy in and sell out of their positions
2. Boutiques managers can take meaningful
stakes in smaller companies without
hitting JSE limits on ownership or
in-house liquidity constraints.
3. Managers with smaller assets tend to
have higher concentration or fewer
shares in their portfolios.
4. There is a tendency for early-stage
managers to be owner-managed rather
than part of a large institution and so
have more “skin in the game”.
PRO LARGER MANAGERS
1. Companies seeking capital at the earlier
and, conceivably, more profitable stage
of their developments look to raise that
capital from more established managers.
2. Larger managers carry more clout with
companies if they wish to encourage a
company to change the way it operates.
3. Managers with a brand attract stickier
money and the fund managers do not
have to worry about the profitability
of the organisation as it has already
achieved critical mass.
4. The best talent can gravitate to larger
managers as their budgets allow the
best systems, research, access to company
management and/or career development
management caused by the size of assets
An extract from their August 2020
analysis is below:
portfolio but doesn’t want to breach a limit
of owning more than 10% of the company’s
free float of shares is limited to 15 shares
on the JSE. A smaller manager managing
The list above is by no means exhaustive
and it would require a much longer article
to debate the pros and cons of each and
several other points without, necessarily,
reaching a clear conclusion.
Kagiso Asset Management publishes a
monthly analysis of the limitations of fund
Source: Kagiso Asset Management
The circled number is interpreted as
follows: A manager that has R200bn invested
in South African equities and wishes to
take a meaningful 5% exposure in its equity
only R10bn of South African equity has a
choice of 89 shares. This means that the
larger managers simply have a smaller
playing field for their high-conviction plays
and anything outside of the list of the 15
largest shares cannot have a larger than
Smaller managers are nimbler
and can buy in and sell out of
their positions more easily.
5% exposure in the portfolio. This, typically, means that the larger
managers have a longer tail of smaller exposures in their portfolios.
So, how have the boutiques stacked up historically against the larger
managers? The charts (right and on page 29) show performances to
30 September 2020 for the year-to-date (YTD), one year, three years
and five years. They have been ranked within their size band with the
boutique managers (BM) on the left and the large managers (LM) on
the right and the sector average in dark grey within each band.
The following charts require some scrutiny.
Over all periods, the boutique managers cover a much wider range
of returns. The better ones tend to be dramatically better. However,
the poorer ones have been awful.
There is, indeed, some consistency across periods with BM1, BM3
and BM9 being the consistent good performers in the boutique space
and BM8, BM10 and BM11 being the laggards.
The consistently good large managers are not as obvious but LM1,
LM3 and LM5 have not done well.
Truffle_BlueChip_Oct 2020.pdf 5 2020/09/22 16:33
Truffle Asset Management is an authorised FSP. Full details and basis of the award are available from the manager.
The value of experience.
For more information about our funds visit
It has not been clear that boutiques have, as a group, outperformed
large managers over any period. As with any investment
decision, investors should embark on considerable due diligence
research before choosing a portfolio or, better still, use the
services of a professional advisor with the correct credentials and
experience to pick the more successful managers.
assets tend to
fewer shares in
Source: FE Analytics, MitonOptimal
James Downie, Head: Institutional
Asset Consulting & Optimisation,
MitonOptimal South Africa
KNOW Melanie Stockigt
Head of Fixed Interest, Tantalum Capital
Describe your journey in asset management
I started out in financial markets in 1997 at Standard Bank. Working in
the heart of the Treasury division, I had exposure to many aspects of the
market, but my true passion was working with institutional investors. It
was therefore a natural step when I migrated to the asset management
world. I spent a few years at Coronation before embarking with my
partners on the exciting journey of building Tantalum Capital.
The best part of your workday?
My favourite part of the day is the first hour or so, before our investment
team morning meeting. I digest all the overnight market news, check
market movements and plan for the day ahead. The tempo of the day
can change so quickly in asset management though so often the ‘plan’
for the day takes an unexpected turn! There isn’t a single day that ends
without having gathered more information and knowledge and it’s a
privilege to have a career that’s so rich in intellectual growth.
What has life in lockdown been like for you?
From a personal perspective, it’s been wonderful to have so much
more control over the noise in my day, as we were fortunate to be
able to move seamlessly into the virtual world. The
asset management industry didn’t skip a beat, and
our access to information via conference calls and
virtual meetings has been so much greater than
it was under the constraints dictated by physical
meetings pre-lockdown. Having my work structure
integrated into the rhythm of my family unit has
also been a blessing.
WHY INVEST WITH US…
HIGHLY EXPERIENCED TEAM
TRUE MULTI-ASSET BOUTIQUE
NIMBLE ASSET SIZE
PROVEN TRACK RECORD
We have worked together
for more than 20 years
We offer skills in all the
asset classes including
Our funds are managed
with a strong
We are active
We have a long track record
of consistent returns and
Founded in 2005, Tantalum Capital is a boutique asset manager with a strong partnership
culture and a co-investment mindset. We are majority owner-managed, and a proud affiliate
of RMI Investment Managers since 2015. Our portfolios are constructed from a single idea
generation process, and almost 50% of the Tantalum Capital team are women.
Reach financial planners
and associated practitioners
The official publication of the Financial Planning Institute (FPI)
ABC-certified distribution through:
• Major financial planning events
• Financial planning workshops
• Direct distribution to all Certified Financial Planners
PLUS BLUE CHIP ONLINE
Advertising queries: firstname.lastname@example.org
The South African Journal
for Financial Planners
the next generation of South Africa’s top investment talent
Zama Zulu’s career in the asset management industry started
in 2004 when she joined Coronation Fund Managers as a
junior business development manager. After 10 years at
Coronation, she left to join the debt capital markets team
at RMB, assisting various corporates and state-owned enterprises
(SOEs) looking to raise debt from the asset management market
through auctions or private placements. She was approached by
Rand Merchant Investments (RMI) Investment Managers to join
the team in 2016, where she is now a Portfolio Executive.
For more than two decades, the Group has had high exposures
to insurance businesses, namely Discovery, OUTsurance and
Momentum but were underweight in the asset management sector.
“Asset management has a high cash conversion rate and requires
relatively low capital to start, which made the industry attractive for
RMI Holdings to venture into as a means of diversifying its financial
services income stream” says Zama Zulu.
After listing in 2011, the RMI Holdings board made the decision to
reactivate the investment portfolio and so, in 2014, a new investment
team was appointed to execute this plan. Asset management
industry models operating globally were researched and the multiaffiliate
investment management model piqued the interest of the
investment team. In 2015, the RMI Investment Managers (RMI IM)
affiliate model was launched.
The company has since acquired minority stakes in 12 boutique
asset managers including Balondolozi Investment Services*,
CoreShares Asset Management, Ethos Private Equity*, Granate Asset
Management, Northstar Asset Management, Perpetua Investment
Managers, PolarStar Management, Sentio Capital Management,
Sesfikile Capital*, Tantalum Capital, Truffle Asset Management and
Visio Fund Management*.
RMI IM identifies and partners who they believe are South Africa’s
next generation of investment management talent and provides
patient and permanent capital along with strategic guidance to
ensure their long-term success. “We apply a long-term mindset
to each affiliate’s investment philosophy, and we monitor it over
medium-term periods. Short-term outlooks disappoint. Rewards are
met down the line,” attests Zulu.
“As a supportive but non-interfering shareholder, we provide our
boutique affiliates with strategic business and operational support,
access to insightful research and thought leadership and well as
asset-raising and marketing capabilities” adds Zulu. RMI IM believes
it is the support and guidance in these key areas that affords the
affiliates, which tend to be small- to mid-tier type entities, a better
opportunity for success.
* Equity stakes are held via Royal Investment Managers,
RMI IM’s joint venture with Royal Bafokeng Holdings.
Zulu’s role focuses on asset-raising initiatives, which involves
assisting the affiliate managers to achieve “retail-readiness”. As part
of their shareholder value map, RMI IM offers two areas of support
within the asset-raising portfolio: strategic advisory and coverage
support. “In terms of strategic advisory support, we ensure that the
affiliate managers understand the various trends in the retail industry
and how the industry works” says Zulu.
“We find that most of the affiliates are fairly new to retail due to
a strong historical focus on the institutional market,” she adds. “The
institutional market operates very differently from the retail market,
so we ensure that we provide our affiliates with useful insights on
the various dynamics at play via our research generated in-house on
market share and flows and any relevant client intel we may have.
These insights are considered when developing an affiliate’s retail
disappoint. Rewards are met
down the line.” – Zama Zulu
In terms of coverage support, Zulu helps the RMI IM affiliates
navigate the various client segments within the retail market;
the discretionary fund managers, the multi-managers, financial
advisors and wealth managers as well as the LISP platforms. RMI
IM’s coverage support for these client segments is centred around a
core fund range that includes capabilities across various asset classes
and investment styles. In ensuring the company’s non-interfering
approach, Zulu’s input and guidance is provided, as
and when requested, into structuring fee policies,
pricing for potential mandates as well as general
preparation for new business pitches.
The RMI IM portfolio represents a world-class
collection of businesses with the potential to
become top-tier investment managers in South
Africa. Retail investors are sorely lacking proper
choice in managers, given the high concentration
of assets in the hands of the larger
managers and so RMI IM’s ambition
to challenge the status quo and
create a more even playing
field, will undoubtedly be
highly beneficial for the industry
as a whole.
Zama Zulu, Portfolio
Executive, RMI IM
to the beat of
her inner drum
Alida de Swardt is an ambitious and experienced financial
services specialist. She joined RMI Investment Managers
in 2016 as Head of Distribution and Marketing before
assuming the role of CEO in March 2018. While her
career in banking and investment management spans more than
two decades, she has not let the intimidating and male-dominated
industry divert her from her true self; a kind, passionate, engaging
and inspiring leader.
RMI Investment Managers (RMI IM) launched a multi-affiliate
investment management model in 2015, the first of its kind in
South Africa. Its aim is to identify and partner the best boutique
investment talent in South Africa by becoming a supportive, noninterfering
and long-term shareholder in their businesses. As a
100% subsidiary of JSE-listed investment holding company RMI
Holdings, it is well-placed to be a shareholder and partner of choice
for boutique investment managers. RMI IM is independent, has
patient and permanent capital and a solid reputation of backing
entrepreneurs building businesses in financial services.
The RMI Group has done this successfully with Discovery,
OUTsurance and Momentum, all of whom are now formidable
financial services firms in South Africa. To date, RMI IM has
invested in 12 boutique asset managers across various investment
styles and asset classes, including active, passive, traditional and
Aligning with the entrepreneurial DNA
of the RMI Group is key. RMI IM’s business
model is such that only minority equity
stakes are acquired to ensure their
affiliates retain their independence,
particularly when it comes to
their investment capabilities. By
partnering with RMI IM, affiliates
can concentrate on what they do
best – managing investments
to achieve superior returns
for their clients.
The unique opportunity
Between 1990 and 2013, nearly 40% of investment management
firms started vanishing by means of acquisition, merger or
closure with the average lifetime close to only five years. Reasons
for this failure included lack of steadfast shareholder support,
poor business models, lack of differentiation and poor investment
returns. Post-Covid, it is expected that a similar trend will
once again emerge, leading to consolidation opportunities for
To address these challenges, RMI IM assists its affiliates with
brand credibility through the RMI association, business acumen
and strategic insight from its executive team and board, as well as
asset raising and marketing capabilities, operational robustness
and economies of scale.
Through its partnership with Momentum Metropolitan, a
distribution business that has a long history with the financial
advisor industry, it is able to provide additional distribution
capabilities to complement its affiliates’ own distribution teams.
Insights and relationships from these sources are used to
understand how best to service the changing advisor market.
Distribution: the lifeblood of asset management
While there tends to be a strong institutional support base in
boutique managers, albeit highly concentrated, these businesses
generally aspire to grow their retail following, which is a longterm
endeavour. To achieve this requires building a trusted and
recognised brand supported by a consistent, long-term investment
performance track record. With more than 650 active funds in South
Africa, investors are spoiled for choice, which makes standing out
in the crowd a real challenge.
The RMI IM team remains steadfast and committed to
their affiliates in helping them to overcome these challenges
while recognising that each business is at a different life stage and
therefore endeavours to assist them where most appropriate and
relevant. For RMI IM, it’s about finding a unique engagement model
with each of them, rather than assuming a blanket approach.
We remain confident in our ability to
stay the course and continue backing
management teams that we truly
believe have what it takes to succeed.
Alida de Swardt
The company has a strategic ambition to help build the next
generation of significant asset management businesses and enable
them to reach their full potential. Through doing so, RMI IM hopes
to indirectly play its part in cultivating a savings culture in South
Africa while helping to transform its portfolio companies to better
reflect the society it ultimately serves.
Transforming the industry
Transformation within the asset management industry continues
to come under the spotlight as progress remains stubbornly
slow, particularly regarding female representation in portfolio
management and decision-making roles. According to a recent
industry report, in South Africa only 3.5% of active funds are
managed by a female portfolio manager, or a female-only team.
As a founding member of Athena, RMB’s gender equality
initiative, De Swardt is passionate about the promotion of gender
diversity and the empowerment of women in financial services.
She recognises that as a woman in a male-dominated industry she
naturally brings a different perspective. “There’s a lot of research
that shows that diverse workforces achieve so much more,” she says.
Talent is your biggest asset
“In asset management, your biggest asset is your talent,” says
De Swardt. “It’s a people business. Yet, I’m not always sure that
we prioritise the importance of interpersonal skills coupled
with technical capabilities.” She adds, “In business, people tend
to unconsciously employ individuals like themselves, which can
easily result in groupthink,” says De Swardt. “We should mindfully
be seeking out diverse talent in terms of skills, experience,
backgrounds and personalities to ensure we are constantly
challenging our approach and thinking.”
De Swardt leads by example as her own team at RMI IM, while
small from a headcount perspective, is incredibly diverse. “It’s
about achieving the right balance of gender, racial and cognitive
diversity within a team. As this, I believe, is when true creativity
I find that you get the very
best out of people when you
give them the responsibility
and flexibility to deliver.
Partnering your team
The entrepreneurial heritage of the RMI Group is something that
De Swardt has learned first-hand through her 20-year association
with the Group. She leads with a strong partnership ethos.
“Through our owner-manager culture, we allow individuals to
own a part of the business and to drive it themselves,” says De
Swardt. “I find that you get the very best out of people when you
give them the responsibility and flexibility to deliver results in their
own unique way.”
De Swardt believes in surrounding herself with people that
complement her skills and experience and enabling others to
be the best version of themselves, rather than directing them or
“Trust and respect are two key values of my leadership style.
Trust is given when work is outcomes-driven and not limited
to KPIs, and trust is built when you provide a safe space for
vulnerability.” She adds, “My team do not fear asking for help, as
trying to cover up weaknesses or vulnerabilities is not productive
or conducive to success.”
Trust and respect
are two key values of
my leadership style.
The driving force of her inner drum
Financial markets can be extremely volatile and so much of what
happens at a macro level is out of one’s control. From a young
age, De Swardt learned that to lead effectively, one needs to be
both resilient and realistic and to not be motivated by fear. She
inspires and motivates others to focus on what is in their control
by using their individual skills and talents in a meaningful way.
Combining this with positive energy and a growth mindset is how,
she believes, to successfully achieve goals and ambitions in both
life and business.
She was just seven when her father, a retail entrepreneur,
introduced her family to Peter Drucker’s management theory.
Her father taught her how to tune into her inner drum, to deeply
connect with its driving force and listen to it regularly as a guide
to know whether she is on the right track. She believes that by
tuning into your inner drum you can find your true purpose and
meaning in life.
In July 2020, RMI IM began its fifth financial year and although still
in the early years of the business model, De Swardt is confident
that strong foundations have been built for long-term success.
Building enduring investment management businesses is a longterm
endeavour that requires patience, humility and stamina.
Looking ahead, De Swardt believes that RMI IM’s patience and
long-term outlook will stand the team in good stead to navigate
what will likely be another tough few years.
“Our partnership model was truly put to the test this year during
what has been an extremely trying period for everyone, not only in
the market but in our businesses and personal lives too.”
She adds, “So, we are now deeply focused on the ‘partner’ and
‘grow’ phases of our business model and while we don’t expect
the investment backdrop to get any easier in the next few years,
we remain confident in our ability to stay the course and continue
backing management teams that we truly believe have what it
takes to succeed; building critical mass, relevance and a credible
improved by 40%. Operational costs fell,
FINANCIAL SECURITY with 23% less electricity and 90% less
Perpetual Guardian, a New Zealandbased
Are you working
firm, moved to a
four-day week in late 2018. Productivity
improved 20% over an eight-week period;
an independent survey showed staff stress
levels reduced and work-life balance
improved from dramatically.
As you think about innovating to keep sheet dat
up with constant change, don’t get stuck
on technology and forget about your
people. They may just end up working for a
business that has found a real way to make
a dent in traffic congestion!
David Rock, The Neuroscience of Leadership
– Improving Organisations by Understanding
the Brain, Talk at FPI Convention, 2012
Morgan Housel, The advantage of being a
little underemployed, www.collaborativefund.
com, 17 May 2017
The balance between financial
woo-woo and living well Delivered over
Penguin Publishing, 2004
research 24 hou
Robert Booth, Four-day concepts week: trial such finds as lower meaning, freedom, health, relationships, learning,
what would it be? This is a question I often reflect stress and on, but increased always productivity, hobbies and www. sleep. What he is highlighting is the We manage all
come up with the same answer: security. theguardian.com, It’s boring, I know. 9 February trade-offs 2019we have to make to get the balance
And not very original. But at its essence, McKinley that’s what Corbley, money Microsoft right Japan between Recently financial security and a
means to me. For others, the word may be a Gave little their more Employees exciting a 4-day life well-lived. Week – and An investment banker Incredibly easy
like “opportunity”, or “legacy”, or for Productivity Skyrocketed by 40%, www. will be happy to
some money may even be a “threat”.
goodnewsnetwork.org, “Financial security”
8 November 2019 sacrifice sleep
I discovered how unoriginal my
to make more
LinkedIn Talent Solutions, 2019 Global Talent
Your gateway t
word is when I read Khe Hy’s blog, does not necessarily money. A highschool
Trends Report, 2019
You’re thinking about “financial
Samantha “a McLaren, life well-lived”.
How these 4 Companies
security” the wrong way. Khe Hy has
faced with the
are Embracing Flexible work – and Why You
been dubbed the “Oprah for Millennials”. At the age of 35, he gave demands of a class of teenagers may Automatically u
up a lucrative career on Wall Street, resigning as Should managing Too, www.businesslinkedin.com, director not make a huge 22 amount of money but
of BlackRock’s Hedge Fund of Funds division to figure out how is unlikely to survive without sleep. Both Full of excellen
to live “a more fulfilled life”. Hy suggests
are striving for a life data, fact shee
that we all seek financial security in some
form or other. A spin-off from Mazlow’s
Financial planners may see The their output opt
hierarchy of needs. We all want at the very
primary role as helping clients achieve
least to have enough money to survive.
financial security. As we can see, each
But Hy makes the point that “financial
person’s interpretation of this is Fully unique. supported
security” does not necessarily equal “a life
well-lived”. It prompts the question, “How
much money is enough?”
To answer this question, Hy suggests
R20k, and that the process usually involved
four meetings. The potential client had
experienced so much value in just one
aspect of the first meeting that they were
moved to ask if this was R20k per meeting
– not because they didn’t want to pay the
fee but because they thought given the
value they had already experienced, this
was a possibility.
If you could capture in one word what money means to you,
The value in people
In a knowledge-based economy, when you
are providing a professional service based
on knowledge, experience, thinking and
interpersonal skills, to quantify anything
in terms of time – be it your employees’
working hours or the time spent with a
client – is a disservice to the value that
financial planners and their staff potentially
can add to their clients’ lives.
So the opportunity is ripe for the picking
to innovate with respect to how you get
and keep people and make them more
productive. LinkedIn’s 2019 Global Talent
Trends Report indicates that over 30% of
job-seekers will turn down a job if there are
not flexible work arrangements. Computer
giant Dell implemented flexible work
practices in 2009. US healthcare company
Humana did the same in 2016, using
technology to enable call-centre workers
to work that from we have home. to grapple with the “messy
More middle”, recently which sits Microsoft between in financial Japan
experimented security (“enough”) with a and four-day a life well-lived. week for For
their Hy, employees. the “messy middle” Without consists an adjustment of what he
Rob Macdonald, Head of Strategic Advisory
in remuneration. refers to as a lot The of the result? “new-age Productivity woo-woo”,
Services at Fundhouse
Money is simply a means to an end. So
perhaps it is time for financial planners
to acknowledge that their primary role
is to help clients achieve a life well-lived.
If this is the case, then much of the work
that a financial planner ideally needs
to do sits in the “messy middle” of their
clients’ lives. Given that this is full of
“new-age woo-woo”, many planners may
not be that excited at the prospect. Particularly
given that financial planners’ training is primarily
technical and focuses on helping people achieve
Most financial planners are happy to ask their
clients: “Tell me how much is enough, and I’ll work
out how much you need.” They are also willing to
offer: “I’ll put a plan together so that you can end
up with enough, dead or alive.” Because the middle is
messy, the average client will say: “I don’t know how much is
enough.” Now what? This is where a financial planner can choose
to help a client grapple with the “messy middle”. Or not. It is easier
not to get involved in this part of a client’s life. As Brené Brown
points out, “It’s much easier to talk about what we want and need
than it is to talk about fears, feelings and scarcity (the belief that
there’s not enough).” And after all, money is time. The first question
a financial planner is likely to ask is: “How long will this working
in the ‘messy middle’ take?” The answer of course is, “It depends.”
In the latter part of the 20th century, it was okay for financial
planners to avoid the “messy middle”. For the Baby Boomer
generation, conditioned by parents who had endured the Great
Depression and the Second World War, financial security effectively
equals a life well-lived. It is no coincidence that money means
security to me. Both my parents lived through these periods when
there was very little financial, physical or emotional security. My
mother’s father went to war when she was nine years old. He
returned when she was 15. He did not even recognise her at
the train station on his return home. An emotional desert had
developed between them.
For those born more recently, the story is different. The
developed world has so much more to offer than simply survival.
There is the opportunity to engage with the “new-age woo-woo”
stuff because there is more security in the world. Stephen Pinker,
among others, has written about how, despite the daily diet of
Perhaps it is time for financial
planners to acknowledge that
their primary role is to help
clients achieve a life well-lived.
indigestible news about what is going wrong in every sector of
society, the world is safer than it has ever been. And this applies
despite the Covid-19 pandemic. For perspective, the Spanish Flu
of 1918-20 is estimated to have killed up to 50-million people, or
2.7% of the global population at the time. At the time of writing,
there are 966 000 Covid-19 deaths or 0.012% of a global population
of about 7.8-billion people.
Not only is the world safer, but it is evolving fast. When it comes
to financial advice, I can get a Robo Advisor to work out how much
I need to have enough money for financial security. I have worked
with one named Eva. (They even have names.) And “she” was
extremely helpful. The process was seamless and cheap. But if
financial security doesn’t mean a life well-lived, then I need more
help than what I can get from Eva.
I need someone to help me navigate the “messy middle”. To
grapple with what I want from my
life. To help me make decisions on an
ongoing basis. To act as a sounding
board as I face transitions, big and
small. But I want that person to be
skilled in dealing with the “new-age
woo-woo” stuff. Because if they aren’t,
it is cheaper and easier for me to use
Eva, and maybe see a psychologist on
the side, when desperate.
So, as a financial planner, the
question to ponder is: are you working
in the messy middle? If not, beware
that Eva can’t wait to replace you, at a
fraction of your fee.
Khe Hy, “You’re thinking about financial
security in the wrong way”, RadReads.co.
Heather Long , “Meet Khe Hy, the Oprah
for Millenials”, money.cnn.com,
31 December 2016
SOURCE: You’re thinking about “financial security” the wrong way - by Khe Hy, Radreads.co
Humans Under Management South Africa 2020
ello, I’m Carrie Bendall. I’m one of the organisers of
HUMSA along with Rob Macdonald of Fundhouse, Pierre
Taljaard of Simple Wealth
Financial Planning and HUM
founder, practising UK Financial Advisor
and Financial Advisor Coach, Andy Hart.
The HUM event is all about turning a
money business into a people business,
helping clients behave their way to wealth, keeping them
disciplined, staying the course and making their dreams a reality.
It’s about managing humans, not assets.
“It’s about managing
humans, not assets.”
Held as a virtual event for the first time on Tuesday 8 September
2020, the agenda was full of short punchy talks delivered by a mix
of practising financial advisors and experts.
Here are some nuggets from the talks by
Doing less to achieve wildly more
Andy Hart opened to reveal “The Hidden
Magic” of the behavioural financial advisor. Essentially this is
“doing less to achieve wildly more”. Investing becomes an exercise
of removing the unimportant – research, ratings, predictions,
forecasts, annual performance, seeking top-performing funds.
Important becomes investing in things which have always worked
– a passive global equities fund, and then a long-term perspective
replacing headlines with history, nudging up your contributions
through all weathers, an informed definition of the real risks, not
outliving your money and continually updating your financial plan.
Important includes relieving clients from the stress of watching
the N-E-W-S day in day out. An acronym that stands for “negative
events world service”. Andy finished on the note, “The financial
dark forces peddle the unimportant, we remove it.”
Life planning and its business benefits
Kim Potgieter told the story of how her firm, Chartered Wealth
Solutions, built its Financial Planning business around life planning
by making it central to their process. Kim emphasised that their
role was to help clients get the most life from their money and that
Chartered Wealth Solutions did this by having different kinds of
conversations with clients.
The first thing they do with every single client is a personality
profile to give the advisor an understanding of how clients see the
world and then they explore:
• Where they have come from (history)
• How they have got here today (values)
• What they are going through (transitions)
• Where they are going to (goals and dreams)
• Relationship with money (what could be stopping them)
Focus on the person, not the problem
Recognising that great client conversations don’t always come
naturally to even the best financial advisor, practitioner Warren
Ingram, Galileo Capital, was interviewed by Rob Macdonald to
explore how developing a coaching way of being is essential for
opening up deeper, more fluid conversations with clients.
Warren talked about the importance of listening even when
it becomes uncomfortable to keep quiet. He also
suggested how easy it can be to start asking
different questions; to keep it simple without it
seeming like a major shift in style.
IQ + EQ = Real financial planning
Practitioner Scott Frank from Stone Steps Financial
in California talked about how he went about
creating a simple equation where IQ is the enormous
technical knowledge needed to be a financial
advisor and EQ is the emotional intelligence needed
to bring inspiration and energy to clients to inform
their why rather than their what. Scott shared how
he uses the Kinder Institute EVOKE process and
when in this process he can use Kinder’s three great
questions to achieve a deeper understanding of
clients, their lives and their dreams.
Andy Hart, Founder,
Humans Under Management
Building a black-owned financial planning business
Kagisho Mahura shared the story and evolution of his awardwinning
firm, Gradidge-Mahura Investments, founded in 2008.
It's a powerful and moving story of two friends who shared
a dream to create a leading private wealth management firm
serving the needs of an emerging market of black professionals.
Challenges became opportunities and thinking “outside the
box” was crucial to achieving the funding they needed.
IQ is the enormous technical
knowledge needed to be a
financial advisor and EQ is the
emotional intelligence needed
to bring inspiration and energy
to clients to inform their why
rather than their what.
Putting tech in its place
Tech enthusiast Louis van der Merwe demonstrated how putting
tech in its place can be a key driver of a creating and implementing
a client’s financial plan. He uses the tool Asset Map collaboratively
at a first planning meeting to help bring a client on board faster.
It’s a way of demonstrating immediate value as a guide that helps
the client build their full financial picture in a simple format. It also
leads to clients wanting to keep on adding to their picture as their
All were great inspirational talks
about how to see beyond the money
to the human need. The event was
supported by six sponsors who
support the independent ethos of the
conference as “by advisors, for advisors”.
The sponsors were: Allan Gray, Old
Mutual Wealth, Prudential Investment
Managers, Coreshares, Coronation and
If you couldn’t attend the event live
and would like to purchase access
to a recording of all the conference
presentations, please send an email to
The power of women
After entering the financial services
industry 13 years ago, Kim
Potgieter, founder of the Women
in Finance Network, quickly
realised that it was a male-dominated
industry and that there was little support
for females. Kim felt strongly that women
in the sector needed their own forum to
meet, share experiences, support, mentor
and learn from each other, so in 2013 she
founded the Women in Finance Network.
The philosophy behind the network
is that if women in the industry work
together and inspire each other, they can
significantly increase their value adds to
their clients. Women have inherent skills
such as empathy that enable them to form
meaningful relationships with their clients,
and in the process, change the industry for
the better. Inspired by WiFN’s vision, Old
Mutual, Allan Gray and Chartered Wealth
partnered with them, sponsoring the
events. The FPI also strongly believed in the
philosophy behind the network, and they
too came onboard, sponsoring students
and graduates from the ASISA Academy to
attend the events.
Women who join WiFN receive
invitations to all the events and have
access to an online community of women
who are always ready to help and support
each other. Traditionally events were held
quarterly in Johannesburg, Cape Town,
Port Elizabeth and Durban. These events
provide the perfect opportunity for women
in the industry to have fun, connect and
learn from each other. They are a great place
to brainstorm ideas and much mentoring
takes place as a result of the connections
made. Covid has changed the format of
these events, and since lockdown, they
have managed to host four online events,
with each guest speaker carefully chosen
to support their members during these
At one online event, Kim spoke to
the ladies around Brené Brown’s Dare to
Lead work, at another Colleen Joy Page
guided them through their Enneagram
types. As lockdown got harder, the WiFN
team noticed that many of the members
were struggling emotionally and that they
needed to draw on their inner strength, so
they invited Gabi Louw and Pippa Shaper,
from the Resilience Factory, to be guest
speakers. During this moving session,
they shared their journeys around what
resilience means, and the tools required
to be a resilient person. At their last event,
long-standing WiFN member Lisa Linfield
shared her journey around her inspiration
for her recently published book, Deep
Grooves. Their final online event for 2020
is a talk by entrepreneur, author and
philanthropist, Dr Judy Dlamini.
All proceeds from the events have gone
to the Reaboka Foundation. The Reaboka
Foundation is an NPC giving women the
self-confidence to take their lives into
their own hands and to acquire an identity,
respect and status within their community.
This year many of these ladies have been
unable to work, so money donated by WiFN
has been used for food parcels.
The Women in Finance Network is
looking forward to next year when life
returns to some sort of normality, and
the members of WiFN can once again,
meet, connect and support each other
To join this network of dynamic women,
Follow them online on Instagram,
Follow them on Facebook,
@Women in Finance Network
Women as financial
Creating value for the female market
McKinsey & Company has in a recent article  made a
compelling case for why, as financial planners and
wealth management firms, it is “a critical growth
imperative” that we are deliberate in creating a value
proposition that speaks to the needs of the female market, if
we are to make any meaningful strides in attracting and retaining
this market segment.
THE CHANGING FACE OF WEALTH
In what is commonly referred to as the great wealth
transfer, it is expected that in the next three to five
years, American female baby-boomers will, in essence,
control financial assets estimated at $30-trillion. This as
they inherit, and thus gain, more control on a further
$10-trillion, which currently is jointly owned but has
the husband as the primary financial decision-maker.
Women tend to be less involved in the management of
these assets while their husbands are alive.
Another factor expected to spur an
increase in the size of the female market are
the younger affluent women who are likely
to be more educated, have higher personal
earning potential and thus tend to be more
involved in household financial decisionmaking.
The indicators are no different
in South Africa. Recent research released
by the Department of Higher Education
indicates that there has been a marked
increase in female doctoral graduates over
the years, where it is reported that females
make up 53% of all doctoral graduates. 
A more intriguing number comes from the results of
a survey conducted by 1Life on 7 000 females aged
between 24 and 44 years where it found that 69%
of the respondents are the main breadwinners in
their households. 
McKinsey’s research also shows that seven in 10
affluent women, particularly widows, seek an alternative
wealth management relationship within a year of taking
reign on financial assets. Other crises such as a recession,
a divorce or the more recent Covid-19 pandemic also
cause clients to re-evaluate their service providers and assess if
their needs are adequately being met.
WOMEN MANAGE THEIR WEALTH DIFFERENTLY TO MEN
These factors should cause us to pause and reflect on whether our
offering and businesses are well-poised to participate meaningfully
in this new playing field. While our industry has taken notable steps
in preparing for this market, such as targeted marketing campaigns
and products, increased emphasis on financial literacy as well as
policies and efforts to change the demographic of staff members
across both the gender and racial lines, more is required from the
industry. McKinsey advises that “firms will need
to commit to a much more systematic approach
– transforming their business and client-service
models in ways that will acquire, retain and serve
women as long-term investors”. This starts with
a recognition of the growth and the potential of
the female market, coupled with a willingness to
truly understand the factors that drive women.
Equipped with this knowledge, an appropriate
strategy becomes easier to formulate.
The research highlights the
following six key differentiators  :
1. Greater demand for advice
Affluent female decision-makers
are more likely to seek an advisor.
Furthermore, they place more value or
preference on face-to-face interaction,
rather than a digital service offering.
2. Lower financial self-confidence
Many of the women included in the
survey “self-report lower confidence
in their financial decision-making
and investment acumen”. This speaks
to historic and socially ingrained norms
rather than intellectual acumen. It
further emphasises the need for broader
financial literacy interventions aimed at
women and conducted in a manner that
is empowering and offers the space for
them to pose questions without the fear
of being patronised.
3. Less risk tolerant
The women surveyed tend to prioritise capital preservation rather
than assume more risk in return for potential growth.
4. Greater focus on real-life goals
The study revealed that women placed greater importance on life goals such as saving for
retirement and not outliving their assets in retirement, providing sufficiently for healthcare and
lifestyle maintenance. They are also more concerned about poor market performance compared
to their male counterparts. This makes women ideal candidates for bespoke financial life planning
with a like-minded financial planner.
5. Desire for personal fit with an investment advisor
The women surveyed placed high value on the connection they establish with an advisor. It is
important to them that they trust the advisor and have a good personality fit. Where they do not
feel these, they are more likely than men to switch the relationship as a result.
6. Pivotal life moments as a driver
Consumers are more likely to seek a wealth relationship after a major life experience, such as a
marriage, promotion, divorce, or the loss of a loved one. For women, divorce is a particular
differentiator. Women often experience greater financial impacts from divorce or separation than
men and are twice as likely as men to cite divorce as the reason for opening a new investment
account. The dissolution of a marriage is an even more powerful driver of switching financial advisors
than the loss of a loved one.
Palesa Dube CFP®, Wealth Manager,
NEXT STEPS FOR YOUR COMPANY AND TEAM
A clear take-away from this research is that it is critical for wealth management firms to revisit their
offering, if it is to make a meaningful effort in attracting and retaining female clients. The suggested
set of questions (Exhibit 1) is one such way for firms to delve deeper into the area. The advent of this
new market is not only lucrative but presents the wealth management industry with an opportunity
to make a meaningful contribution to society, in rewriting a past that side lined and excluded women
as an inferior class. The real opportunity is for the industry to respond appropriately to women’s
financial planning needs with a deep desire to uplift and do good. If we respond in this way, we will
be demonstrating stewardship and the least our noble profession demands.
EXHIBIT 1: QUESTIONS FOR MANAGEMENT TEAMS
• Where are we in the journey
to win with women? If we are
honest with ourselves, have we
had the impact we aspired to?
• Do we have a go-forward
playbook we are methodically
executing, module by module?
• Are we tracking our results in
a systematic way across the
measures that matter?
• Have we piloted new compensation
and incentive structures
to attract and retain more
diverse field talent?
• How are we seeking to build
capabilities among advisors
and the rest of the firm?
• Have we piloted new
service and product
offerings and corresponding
pricing models for
acquisition (eg “white
glove” subscription models
for high net-worth women)?
• Do we have a segmented view
of our client base by gender and
household composition, with a
dedicated strategy to win with
each segment (eg joint babyboomer
• When we lose an account or
see a large transfer of assets
following a key life event (eg
loss of a loved one, divorce),
do we systematically capture
the feedback to inform our
 Article: Women as the next wave of growth in US wealth management by Pooneh Baghai, Olivia Howard, Lakshmi Prakash and Jill Zucker,
July 29, 2020
 SA women embrace who they are: https://www.McKinsey1life.co.za/blog/honey-listen
Weathering the storm
Benefitting from the shock
The impact of Covid-19 has been felt by every client and
financial planner. Fortunately, for the planners that
embrace change and technology, this impact has turned
out to be surprisingly positive. The concept of Antifragile
comes to mind which was first coined by Nassim Taleb in 2012
as “something that benefits from shock”. I believe that this shock
has helped many businesses to become more resilient through
embracing technology and a new way of delivering advice.
No longer are our clients limited to
working with a financial planner that is
situated in the same town or physically
close to them
No longer do we need to build a team
that sits in the same building to work
together. A distributed and diverse team
that communicates virtually can move
to a better client experience at reduced
Availability has become
key to ensure that
we are holding the
hands of our clients
during difficult times.
costs for the employer. You can now sit anywhere in the world
and service a client on the other side of the globe.
We’ve seen this play out in developed markets over the last
decade but now our clients have the tools necessary to accept
the delivery of digital advice. Just like software developers lead
with a mobile-first approach, so too can we lead with a digitalfirst
delivery of advice. Keeping the face-to-face interactions to
building the relationship and screen-to-screen interactions to
delivering and implementing advice.
As our clients have more autonomy
over their time through working from
home, this also creates a space to
engage with their financial planners.
Availability has become key to ensure
that we are holding the hands of our
clients during difficult times – be it
difficult times weathering the markets
or difficult times in their personal lives.
No longer are our thoughts shaped by local thought leaders
and a global community of financial planners has emerged
During a time when it is just as easy to connect to someone in
another country as it is to connect with your neighbour, we’ve seen
the rise of a global community of
financial planners who are willing
to share and uplift those around
them. Platforms like XY Adviser
and LinkedIn have proven to be
extremely valuable to learn and
share a better way of delivering advice but
avoiding common pitfalls and becoming
aware of our blind spots.
We have to deal with both the human
side as well as the technical side of financial
planning and we can learn a lot from other
markets. We can also be equally proud of
the South African financial planning landscape
which is on par with the leading
No longer are our clients expected to face
their fears on their own
During the lockdown, we had an interaction
with a new client who recently lost a loved
one and was due to inherit a lump sum of
money. The client opted not to switch on the
video during our virtual calls and this allowed
her to interact with a financial planner in a
safe and low-stress environment. Planning a
You can now sit anywhere in
the world and service a client
on the other side of the globe.
Louis van der Merwe, Certified
Financial Planner® and Coach
visit to a planner can be stressful for many clients as they might
not know what to expect and are sometimes pressed to share
information that might be very personal. Imagine sharing your
income, expenses and life goals with a stranger.
The value of financial planning
has increased overnight
as clients become aware of the
shortcomings in their planning.
In a recent survey, 28% of people
trust themselves as the main
source of financial planning, while only 24%
worked with a financial planner. It is near
impossible to become aware of our blind spots
and biases and working with a planner helps
to highlight the things you might be missing.
Mental health has become a mainstream
discussion point as people feel that it’s more
acceptable to discuss the impact of financial
stress. Our role as advisors is primed to help
our clients towards holistic wellness that
is underpinned by their finances, alongside
their eating, sleeping and movement habits.
We are extremely lucky to be in an industry
that is constantly increasing the value we
deliver to our clients. The discussion has
evolved to include a combination of product
information, financial planning and coaching.
One thing is for sure, the new way of delivering
advice and connecting on a human basis is
here to stay.
The very first
Debbie Netto-Jonker, CFP®, Financial Planner of the Year 2001
received the inaugural Financial Planner of the Year award
back in 2001. This was a time when negative stories of people
suffering the consequences of inappropriate financial advice
filled the media. Up to this point, the sector generally only
recognised the best salesmen for their selling accomplishments
– not necessarily for giving the most appropriate financial advice,
which led to a negative perception of the industry.
THE VALUE OF ADVICE
With the introduction of the Financial Planner of Year award, clients
and prospective clients were exposed to fact that it was possible to
engage with quality advisors who used a sound advice process as
the capabilities and skills of the top 10 finalists were written about,
and they were invited to speak at financial planning events that
were open to the public.
Determining a winner of the award was based on client
testimonials, the assessment of technical advice, compliance, and
practice management. The focus is on the quality of the advice
given and the processes and procedures backing it up – not the
number of products sold. Bruce Cameron of Personal Finance,
Professor Colin Firer of UCT Graduate School of Business and the
panel nominated by the Financial Planning Institute lent the award
a combination of credibility and legitimacy.
After being recognised with this award I found that clients
became more comfortable with the value of advice and that
their confidence in its process increased. Clients now wanted to
learn from us, ask questions and be empowered to make good
decisions. And because clients knew that we were working in their
best interests, the level of cooperation we received from them also
improved. Now that people out there knew there were a few goodquality
advisors, all they had to do was find them. This is where
the media played such a crucial role in transforming the industry.
The Financial Planner of the Year
award was one of the first initiatives
that accentuated the importance
of professionalism in the industry.
A LONG-OVERDUE MAKEOVER
Selling risk and investment products had been the mainstay of
the financial advice arena. Now, with the focus shifting to serving
the best interests of the client, fee-based advice was highlighted
as the alternative to the typical, commission-based form of
compensation. In fact, we were referred to as “brokers” back then.
A term that persists to this day and that does not do us any favours!
The Financial Planner of the Year award was one of the first
initiatives that accentuated the importance of professionalism
in the industry – this was before FAIS was enacted in 2002. And
it encouraged others to embark on a journey to enhance client
service and experience. The media gave extensive coverage to all
the finalists, profiling all of us in detail. This coverage also explained
what financial planning was and raised the profile of the financial
advisor’s professional standing.
I must make special mention of Bruce Cameron and Laura
du Preez of Personal Finance, Andrew Bradley of iPac and the FPI
who sponsored the award in 2001. Their sponsorship at the very
beginning demonstrated a foresight into the need to focus on the
client that has largely changed how the industry operates today.
WHAT THE AWARD MEANT TO ME
Anyone who has ever received this award will tell you that they did
not win it alone! Professional financial planning is a team event.
I could not have achieved this accolade without the expertise of
Ian Beere and my team. As a result of the award, the whole team
was infused with a new sense of purpose and rediscovered pride
in their work. Something that continues to this day. With increased
credibility, we became more desirable as an employer and more
attractive to prospective clients and our professional network was
even more confident in referring clients to us.
RECOLLECTIONS OF WINNING
1. I felt that the value of my input became further recognised in
the financial planning community.
2. All the hard work I had put into building a practice management
system was vindicated.
3. Receiving the award reassured our clients that their financial
plans were soundly designed.
Debbie Netto-Jonker, CFP®, founder, Netto Capital & Netto Invest
why you should not miss the
FPI Professional Digital Convention 2020
1. Gain the tools to future proof yourself and your business
We decided on the theme for this year’s Convention – Future
Proof – long before Covid-19 was a thing. Now our theme is
more relevant than ever. Our incredible line-up of local and
international speakers brings decades of problem-solving
experience to the table and they are positively bursting
with ideas. Covid-19 may have blindsided your business – but
remember that your clients will now need you more than ever!
2. Learn much more about behavioural finance and integrating
coaching into planning
As the field of neuropsychology grows, it is becoming increasingly
clear that giving good financial advice is as much about
understanding the maths behind financial calculations as
it is about appreciating the intricacies of the human psyche.
We are thrilled to have nabbed some real thought leaders in
this genre, most notably Greg Davies, Frank Magwegwe, Rob
Macdonald and Mary Fourie.
3. Stay connected with your peers and discuss your mutual
challenges and opportunities
One of the most devastating impacts of Covid-19 is the way it has
sabotaged communities. Technology has gone some way towards
filling this void, but it is hard to underestimate the importance
of those conversations you have at the photocopier or in
the queue at OR Tambo. The FPI conference is being hosted
by Asset TV, world leaders in digital conferencing. They
know better than any of us that the “gold truly is in the hallways”
and they will ensure that there is plenty of space for authentic,
4. Make “Excellence your Standard” as you transition to a feebased
The talk by Michelle Hoskin – aka Little Miss WOWW! – promises
to be one of the highlights of the event. Michelle will talk about
The Operations Management System (TOMS) that she has
spent the last 20 years perfecting with her clients in the UK.
TOMS provides a framework that will liberate you from the
day-to-day of running a business while maximising profit and
productivity. Building on her presentation, Almo Lubowski will talk
about how to make the transition to a fees-based practice.
5. Get a global perspective with a live update from FPSB
CEO Noel Maye
Who needs Bloomberg News when you’ve got a direct line
to global decision-makers? The CEO of the FPSB, Noel Maye,
will be joining us to share his insights into the year that’s passed
and the way ahead for our profession.
6. Keep up to date with the many developments in Financial
As Greg Davies puts it, taking your practice to the next level
is all about “using tech to be better at the stuff that only
humans can do”. Take the opportunity to learn about all the
The “gold truly is in the hallways” and they will ensure that
there is plenty of space for authentic, off-the-cuff interaction.
Staying abreast of the latest regulatory developments is an
absolute must in today’s constantly shifting financial landscape.
latest offerings by visiting our incredible exhibitors’ stands. And
be sure to catch Greg’s talk and the technology panel discussion
where we will hear from several of the biggest players in this space.
7. Earn 11.5 verifiable CPD hours (and enjoy getting them)
Attending the Convention earns you 5.5 General hours, 4.5 Ethics
hours and 1.5 Technical hours. The fantastic digital platform
provided by Asset TV and the stellar line-up of speakers will
make them the easiest CPD hours you ever earn.
8. Keep abreast of all the latest regulatory developments
It may not be sexy, but staying abreast of the latest regulatory
developments is an absolute must in today’s constantly
shifting financial landscape. Caroline da Silva, of the FSCA,
will be giving us the lowdown.
9. Discover how to make succession planning and transformation
a positive experience
You cannot go anywhere without hearing someone grumble
about transformation and succession planning. But this is the
wrong way of thinking about both processes, say Warren
Ingram, Katlego Mei and Alex Cook. Their talks will show
how embracing transformation and succession planning as
positive experiences will change your life.
10. Get incredible value for money with our state-of-the-art
Despite the truly stellar speakers’ roster, tickets for this year’s digital
conference are almost half their usual price. Add this to the
fact that you won’t have to book flights or accommodation
(or pay for lunch or lattes) and attending the Convention
is an absolute no-brainer. International visitors will love the
exchange rate ($180 for a two-day conference!) while locals can
take advantage of the great, value-for-money CPD package we’ve
Now that we’ve shown you 10 ways in which attending
the Convention will benefit you and your business, let’s
talk about Reason #11. Your presence at the Convention
will provide an invaluable contribution to building industry
knowledge and cohesion. Progress is a two-way conversation and
we need you just as much as you need us. Hope to see you there.
• The conference will be held on
27th and 28th of October 2020
and is 100% digital.
Tickets are R2 500 for FPI members and R3 000 for
non-members. Get yours at www.fpi.co .za
• Or take care of your annual CPD requirements with a discounted
package which includes access to the Convention,
the Estate & Tax online seminar, the Retirement & Investment
online forum and the FPI’s annual refresher. Members pay only
R5 200 and non-members R5 920. Book at www.fpi.co.za
Michelle Hoskin (aka Little Miss WOWW!) shares her
incredible secrets for transitioning to a fee-based practice.
Five “Aha! Moments”
to look forward to at the
FPI Professional Digital Convention
The first-ever 100% digital FPI Professional Digital Convention on 27th and 28th of
October 2020 has an irrepressible line-up of speakers from around the globe
While there’s no replacement for face-to-face
interaction, this year’s convention proves – yet
again – that every cloud does indeed have a silver
lining. Not having to worry about geographic
considerations has meant the FPI can call on some exceptionally
high-calibre speakers from across the country and the globe.
This year’s convention promises to have “Aha!
Moments” aplenty. But don’t take it from us – take
it from the speakers themselves.
AHA! MOMENT #1:
FACTS MATTER MORE THAN EVER
My talk, The Upside of Down, will show you
how vitally important it is to have a growth
mindset in a deeply complex environment
which paralyses many of us into inaction
through fear and indecision. In post-Covid South
Africa, facts matter more than ever. You cannot make
good long-term decisions if you are overwhelmed by fear.
My deeply empowering, fact-rich, multi-layered talk will challenge
your in-built biases and encourages you to confront widespread,
but often inaccurate beliefs.
• Bruce Whitfield, South Africa’s leading financial journalist and
AHA! MOMENT #2: YOU CANNOT BE AWESOME ON YOUR OWN
I have been in the profession for over 20 years and
I am passionate about showing how to achieve excellence as your
standard. I will show you how Together Everyone
Achieves More (TEAM) and I will leave you in no
doubt that it’s impossible to be awesome on
your own. Building on these concepts, The
Operations Management System (TOMS)
developed by my team and I will show
you how to free yourself from the dayto-day
workings of your office while your
team delivers consistently high levels of
• Michelle Hoskin, aka Little Miss WOWW! of
Standards International in the UK
AHA! MOMENT #3: USE TECH TO BE BETTER
AT THE STUFF THAT ONLY HUMANS CAN DO
I will show you that on our own, humans are
fallible and prone to bias and inconsistency,
particularly in complex areas such as financial
advice. Luckily data and technology can provide
humans with decision prosthetics that reduce bias and
noise and ensure that human beings can be the best version
of themselves more consistently. In a nutshell, technology enables
humans to be better at the stuff only humans can do.
• Greg Davies, of Oxford Risk, has a PhD in Behavioural
Finance from Cambridge University
AHA! MOMENT #4: CHANGE REQUIRES A SHIFT
IN MINDSET, NOT JUST BEHAVIOUR
As human beings, we are pretty good at many
things, but managing change is not always one
of them. We may be creatures of habit, but – as
we have seen this year – the business world is
constantly changing. I will show you how to futureproof
your personal and professional goals by coming
less resistant to change. Because resistance to change is
often rooted in unexamined personal beliefs, change requires
a shift in mindset, not just behaviour. This shift requires
a process of identifying and adjusting these beliefs.
• Frank Magwegwe, PhD, CFP®, is an award-winning
speaker and author of From Homeless to CEO
TO BOOK YOUR SPOT, SEE PAGE 47, OR VISIT WWW.FPI.CO.ZA
AHA! MOMENT #5: TRANSFORMATION CAN BE
A POSITIVE EXPERIENCE FOR YOUR COMPANY
Transformation and succession planning are such big
issues within the financial planning industry. There
are very few great examples of how this can be done
in a way that works in South Africa. I will give you insights
into how transformation can be a positive experience for
your company, your staff and for clients. There is so much good
that can be created from transformation that you should never
allow fear to stop you from taking this important step.
• Warren Ingram is an Executive Director of Galileo Capital, author
and radio personality
The power of
Excellence as the standard
Having a business and a team whose sole focus is
striving for and achieving excellence is, was and
has always been the best line of defence.
you’re motivated by the fear of past events, you’ll behave
a certain way – but being motivated by the future and by
what you can achieve, changes the game. According to the
dictionary, “excellence” can be defined as the fact or state of
excelling, superiority, eminence. I don’t know about you, but this
definition inspires and excites me to do an amazing job in our
business and for our clients.
In these unprecedented times of what I can only personally
describe as chaos, it is certainly going to take more than simply
“doing a good job” to get us through the coming turbulent weeks
and months. With all the changes being made across businesses
and within teams, we have already seen that the acts of innovation,
creativity and, ultimately, excellence that make the difference.
We are seeing that it is the communities, teams, groups, family
units and friendship circles all coming together, going above and
beyond and applying the much-needed discretionary effort, that
are critical to making these differences.
Now anyone as passionate about the power of excellence as
I am will understand. And they will likely have been banging the
drum about the benefits of streamlined systems, processes and
controls that are well thought through and strategically planned
– the very things which are now proving to be the most essential
tools for businesses.
However, this is not an article on the value and importance of
business continuation and disaster recovery; this is an article about
why having a business and a team whose sole focus is striving for
and achieving excellence is, was and has always been the best
line of defence.
Like you, I own a business which has its day-to-day challenges
that we have to face and deal with and distractions that are
constantly pushing us to work in the business rather than on
So, how do you achieve excellence? There are many ways, but
nothing as complicated as you would expect!
Here are my TOP FIVE KEY INGREDIENTS FOR EXCELLENCE:
1) Your strategic leadership team must have the necessary
skills, abilities, qualities and attributes to add value in their
roles, to the team and the business as a whole
2) Your business must have in place, and maintain, objectives,
plans and processes for continual improvement. Ensure
that your commitment to quality and excellence is
maintained at all times
3) The needs and expectations of all interested parties are
considered fundamental to operational goals
4) All your team members have all the capabilities to ensure
that clients (internal and external) receive the best
possible service and that they demonstrate a high level of
competence at all times
5) Your services and systems are designed, engineered
and managed to meet your clients’ requirements by the
simplest and most cost-effective means possible
Once in place, your commitment to excellence should
be understood by – and communicated to – all the staff within
With all the changes
being made across
businesses and within
teams, we have already seen
that the acts of innovation,
creativity and, ultimately,
excellence that make
Michelle Hoskin, Coach, Standards International
Be the example
… or change the example
Imagine walking into a gym, wanting to get
in shape. You’re unsure where to start, so you
hire a trainer. The trainer shows up and has
all the knowledge in the world. The trainer
shows you the right movements, makes sure
you’ve got good posture and tells you which
muscle groups you’re working. But it quickly
becomes clear, the trainer has never gone
through the transition that you’re hoping to go
through. Worse yet, the trainer is not even in
very good shape.
Kate Holmes, CFP®,
The trainer is going to walk you
through some major changes, and
while they have the technical expertise
to do so, they haven’t done the tough
Are you that trainer in your client’s
lives? If so, you are not alone.
During a university commencement
speech, the comedian Jim Carrey said,
“Many people choose their path out of
fear, disguised as practicality.”
Financial planners will recognise this, especially if you work with
clients heading into retirement. So often clients have taken the
practical path and worked to check all of life’s boxes. Go to school,
get a steady job, get married, have kids, save money, then retire.
Veering from this path can bring fear, either internally or through
the reactions from others.
There are people out there that
are ready and waiting for you.
And because we’re all human, most financial planners also take
that well-travelled practical path. It has been a way of life for so
long. But times have changed.
Many people and businesses (especially in financial services)
are operating in an outdated mindset. Even with the myriad
challenges in the world today, there’s never been a more exciting
time to be alive. We have the world at our fingertips and the
opportunities are endless.
For example, in 2013 I left a traditional investment advisory
business where I was a principal to launch one of the first
completely virtual, fee-only, monthly retainer financial planning
businesses. I then ended a long-term relationship and left the city
I was living in. As an open person, I shared all of this with my clients
who averaged in their 50s and included some high net-worth
people. This ended up completely changing the conversations we
had and clients started saying to me, as we worked through what
their short- and long-term goals really were, “You are the example
of acknowledging what you really want and making it happen.”
Now, I’m not encouraging anyone to quit your job, end your
relationship and move away (unless that’s what’s best for you).
What I am encouraging is that you take a deep and honest look at
your life and see where changes would be beneficial. Even small
changes can make a big difference.
Look at each area of your life: work, friends, family, relationships,
health and wellbeing – and ask yourself what you’d like more of,
less of and what has a time limit. It could be more time on health
and wellbeing, less of a toxic relationship and one more year in
Whatever changes are right for you, when you’re bringing your
absolute best self to your clients and you’ve gone on a path that
they might be going on, you’ll start to see different things. You’ll
pick up on different signals. You’ll know that you’ve done that hard
work of realising what is and isn’t working in your life and you
made the necessary changes so that you can be the example to
them of what’s possible in this one amazing life we each get.
It changes the conversation, builds stickier and more rewarding
client relationships and allows you to create fee and service models
to serve a broader range of clients. By moving beyond the numbers
and being the example, you can show clients the true value of
financial (life) planning and can more easily niche down to the
clients that are right for you.
There are people out there that are ready and waiting for
you. Technology allows clients to search for the planner that’s
the best fit, not just the one that’s closest. They want to work
with a financial planner they can relate to, that makes it easy and
enjoyable to work together and that has fee and service models
that suit them.
With the right mindset shift, all of this is possible in financial
planning businesses big and small. And while change can be
scary, sometimes the idea of things staying the same can be even
scarier. As concerns swirl about economic instability, regulatory
changes and the commoditisation of financial advice, know that
those that are innovating, personally and professionally, are the
ones that will come out on top and will be the most satisfied in
business and life.
I hope you’ll be one of those examples, leading the way, inspiring
others and highlighting the true value of financial planning.
While change can be scary, sometimes the idea of
things staying the same can be even scarier.
Ihave always believed that financial planning must follow a
life-centred approach and have spoken at many conferences
about the value of life planning. My message was not always
well received; in part, because it’s difficult to measure the return
on investment, and because it takes time and skills that planners
don’t necessarily have.
Including life planning in our process at Chartered has been
a hugely beneficial and rewarding experience. It gives us the
opportunity to dream with our clients, we celebrate their successes
with them and most of all, our clients feel valued, supported and
safe. They become part of the Chartered Family and clients for life.
Our value proposition is not just about the return on investment –
it’s about giving our clients a return on life. Every interaction with
clients has one purpose: to help them get the most meaning from
their money, where money enables the life they dream of living.
For life planning to be successful, it must be at the core of
everything you do as a business. It needs to be part of your DNA,
your values and your culture. It’s about building trust, relationships
and changing the dialogue with clients. And it has to be authentic.
It’s not a process that is rushed so that financial discussions can
begin. It is critical that planners embrace and believe in life
planning and have the skills to guide clients
to plan a roadmap for their lives; help them
prioritise according to their values; and
base their financial strategies and decisions
on the clients’ priorities.
At Chartered, our business is based on
life planning. It’s the reason why clients
come to us. In fact, we do not talk to clients
about their money if they do not agree to
It’s about building
trust, relationships and
changing the dialogue
with clients. And it
has to be authentic.
Kim Potgieter, Director and Head of Life
Planning, Chartered Wealth Solutions
with life planning
at its core
life planning. We have implemented five steps to integrate life
planning into our business model.
1) Firstly, know your Why
If you are considering incorporating this process into your business,
you need to be clear on why you are doing it. The process is not
a quick fix or about adding a once-off additional meeting to the
financial planning process. It is also not something that you can
charge extra for. Life planning becomes a way of doing, a way of
being with clients, and is the centre point around which all your
business processes are aligned. So, first of all, be clear on your
rationale, the value that you are adding and what you want to
achieve for your clients.
2) Design and implement a life planning process that suits
You may not need or want to follow the same process we do. This
is simply our way of doing. At Chartered, we start our process with
a personality profile. This is not only a valuable tool for gaining
insight into our client’s world view and values, but it helps them
understand their core personality and why they feel, think and
behave in certain ways.
We follow this assessment with a
conversation about the past: the client’s
history; where they’ve come from; and the
contributing factors that have shaped their
lives up to this point. This includes talking
about their earliest, most significant money
memories. Many clients are not aware how
the money messages they hear as children
impact their behaviour with money as adults. We also use this time
to guide clients to let go of the money beliefs and habits that no
longer serve them. As planners, it is so important to understand
a client’s relationship with money. It helps knowing what money
beliefs could trigger emotional and irrational responses, and how
their habits can potentially sabotage a solid plan.
The next part of our process is to guide clients to define
their values and life principles. We know that our core values
drive everything we do as humans, so this provides invaluable
information on what the client holds most dear. When we talk
about transitions that clients are undergoing, or may still be
going through, knowing what they value above all else directs
the planning process.
Finally, we encourage our clients to dream and ask them to
visualise a life that they are excited to live. The dreaming exercise
steers the goals and objectives of the life plan, and the financial
plan is then structured to enable this. The process takes time. We
often schedule at least two meetings with clients before we even
start talking about money. But every meeting is another step to
creating trust, respect and rapport.
Our clients receive a copy of the life plan once its finalised and
our planners and support staff keep it on record. They will always
refer to the life plan for every subsequent meeting with the client.
3) A life planning culture
To be authentic, your company values must align with life planning,
and pull through every experience, every department and every
individual in the company. From the security at the gate, to the
receptionist who greets the client, to the planner, administrator,
associates and articled planners, the philosophy must filter
through the entire culture.
4) Training – enhancing your client conversations
Planners need to be equipped with new skills so that they are
comfortable having brave conversations and building lifelong
relationships with clients. Planners start taking on the
role of coach and mentor – and this role involves authenticity,
vulnerability, empathy, non-judgemental listening skills and the
ability to inspire.
It starts with self-awareness and the commitment to invest
time and energy into self-development. We cannot ask clients
questions that we ourselves are not comfortable answering, and
I encourage planners to practise on each other. Learn how to ask
probing questions, how to read body language, how to respond
with empathy and how to cultivate real connection. Listening is
one of the most important skills. If you listen, your client tells you
what they want and need. It makes them feel valued and you can
build the financial plan according to their wishes.
We have found great value in the work of Dr Brené Brown
and use her teachings to be comfortable with emotional
responses such as vulnerability and shame that often stems from
5) Marketing life planning as a value-add
Your staff become your most important marketers, and your
clients, your most valuable ambassadors. It’s about walking your
talk and placing your life planning philosophy centre stage.
Our Chartered website showcases our philosophy, and our
additional Retire Successfully site is a platform where clients and
retire mentors share tips and stories on how they are living their
best lives in this phase.
We communicate regularly with our clients, through
newsletters, social media channels and a variety of lifestyle
events, always reminding clients that we are here to support
them throughout their journey.
A WOW client experience
Clients deserve to feel supported and valued and we express our
gratitude and care through thoughtful gestures and creating a
relaxing and enjoyable experience. Many of our clients pop in for
a slice of cake and cappuccino well before their review meetings.
Feedback is important. We schedule lunch meetings with small
groups of clients, and for the duration of the lunch, they become
the directors of our company. It’s invaluable to hear what’s
working, what should change and what their recommendations for
improvement are. Everything we do is about building relationships.
It’s not a transactional process – it’s helping clients to own their
power and feel confident that they can take the driving seat in the
design of a truly meaningful and fulfilling life.
We encourage our clients to dream
and ask them to visualise a life
that they are excited to live.
Benefits for Chartered
It’s a mutually-beneficial relationship – as much as our clients
enjoy spending time at our offices, connecting, learning, enjoying
delicious meals at our events, and meeting with their planners, our
staff feel that they are truly making a difference. We love what we do!
If you invest time and energy in getting to know your clients,
and continuously work on building solid relationships, they will
be your most loyal ambassadors and trust you to invest 100% of
their money. Life planning offers a unique value proposition with
the client at the core of your service. It may be a time-consuming
process, but in the long run, a win-win for both your client and the
profitability of your company.
Is now the time to be investing in China?
China has been shrouded in mystery and subterfuge
for decades. Most savvy investors know that good
investment opportunities exist on the mainland, but
many barriers to entry have kept all but the boldest out.
Now as fears of a protracted and persistent trade war, a slowing
global economy and political protests in Hong Kong grow, we raise
the question again – is now the time to be an investor in China?
China is the second-largest global economy. It is the world’s
largest emerging market and has the second-largest bond and
stock market globally. Despite the size of the market, it is underowned
by foreign investors.
As China moves from an export-driven economy to one of
domestic consumption, the sheer size of its populations makes it an
attractive investment, especially in industries such as technology,
healthcare and luxury goods. As the trade war between China
and the US ebbs and flows, Chinese companies, especially those
which focus on the mainland, are less likely to be affected and
more inclined to grow.
China is the second-largest recipient of foreign direct investment
capital (FDI) in the world. FDI follows investor confidence in a
region and is used for manufacturing and service capabilities. In
2019, China received $137bn in FDI.
Investor regulations have been revised over the last decade or
more, making it easier and more appealing for foreigners to invest.
This has seen the inclusion of China A-shares in MSCI emerging
market indices, giving them greater visibility. As the Chinese
middle class continues to grow, citizen-friendly fiscal and consumer
reforms should be forthcoming, which could support mainland
demand and ultimately a wide variety of listed corporates.
China has demonstrated its ability to drive
economic growth. Into the future, this will be further
supported by increased infrastructure; policy reform;
global competitiveness; a large and increasingly
educated workforce; and export-friendly policies.
Overlay this with ever-increasing consumer
demand and it may be an investment opportunity
you don’t want to ignore.
What are the risks?
Investing in China is, however, not without risks.
China is a communist country. It has been criticised
for selective disclosure on various issues as well as regulatory
differences with the west. It has been accused of turning a blind
eye to insider trading and Chinese companies adhere to their own
accounting policies, which differ from GAAP.
Smart investors always weigh up risks before investing. Many
of China’s blue-chip companies are listed on foreign stock
exchanges too, which would hold them to their regulatory
standards. One way of accessing the Chinese market with relative
peace of mind is through a well-diversified ETF.
Accessing China from South Africa
The Satrix MSCI China ETF listed on the JSE is one way of getting
this exposure. It tracks the MSCI China Index which includes large
and mid-cap shares across China A-shares, H-shares, B-shares,
Red chips, P chips and foreign listings (for example, ADRs). With
just over 700 constituents, the index covers about 85% of this
China equity universe.
The MSCI China Index is dominated
by companies in the consumer
discretionary, communication services
and financial sectors. Familiar names
like Alibaba Group and Tencent
Holdings are the two largest constituents
of the MSCI China index.
Helena Conradie, CEO Satrix
The most up-to-date fund performance and fact
sheet data in South Africa
Comparison & Analysis
Presentation & Reports
Delivered over the Internet, which means you can access your account and all your
research 24 hours a day, and from any location
We manage all installation, maintenance and updates relieving pressure on your IT
Incredibly easy to navigate, despite the depth of data and the range of sophisticated
Your gateway to a vast array of valuable data in a product that is continually being
developed with your needs in mind
Automatically updated daily – web based application
Full of excellent, intuitive features – line graphs, scatter charts, performance tables,
ratio data, fact sheets, list builders and universe filters, and portfolio modelling
The output options give you the flexibility to generate professional reports and
Fully supported by a professional, knowledgeable and friendly help desk
For further information, please contact Tracey Wise on
011-728-5510 / 079-522-8953 or email: email@example.com