Blue Chip Journal, Issue 77

Issue 77 • October 2020 

www.bluechipdigital.co.za 

The Official Publication of the FPI 

How to navigate 

volatile markets 

Florbela Yates, Momentum 

Investment Consulting 

THE GREAT 

DEBATE 

ARE BOUTIQUES BETTER? 

The value of a 

life-centred approach 

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

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LOCALLY. 

OF INNOVATION

ONTENTS 

ISSUE 

77 

OCTOBER 2020 

04 

06 

08 

12 

14 

16 

18 

20 

22 

23 

24 

26 

31 

WHAT’S HAPPENING AT THE FPI? 

Message from the CEO 

EDITOR’S NOTE 

By Alexis Knipe 

ON THE MONEY 

Milestones, news and snippets 

MONEY TABOO 

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 

NAVIGATING SUCCESS 

Blue Chip sits down with Zisanda Gila, Lead Portfolio 

Manager, Momentum Investments 

CAN SOUTH AFRICANS REBUILD THEIR WEALTH 

AFTER LOCKDOWN? 

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 

smoother retirement 

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 

32 

34 

36 

38 

40 

42 

44 

46 

48 

50 

52 

54 

56 

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 

10 REASONS 

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 

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FOREWORD 

Lelané Bezuidenhout CFP®, CEO, Financial 

Planning Institute of Southern Africa 

What’s happening 

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 

planning including: 

• 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 

your practices 

• 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: 

MEMBERS 

• (Online) FPI Professionals Convention 

• Estate and Tax Online Forum 

• Retirement and Investment 

Online Forum 

• 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… 

Warm regards, 

Lelané Bezuidenhout CFP® 

CEO, Financial Planning Institute of Southern Africa 

NON-MEMBERS 

• (Online) FPI Professionals Convention 

• Estate and Tax Online Forum 

OR Retirement and Investment 

Online Forum 

• Annual Refresher (face-to-face event) 

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. 

SAVE THE DATE! 

FPI Professional Digital 

Convention 2020 

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. 


5

EDITOR'S NOTE 

A wealth 

of words 

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 

Professional Reading. 

Special advertising packages in Blue Chip are available to FPI Corporate Partners, FPI Recognised 

Education Providers and FPI Approved Professional Practices. 

blue-chip-journal 

ISSUE 77 | OCT 2020 

Publisher: Chris Whales 

Editor: Alexis Knipe 

Online editor: Christoff Scholtz 

Designer: Simon Lewis 

Production: Lizel Olivier 

Ad sales: 

Sam Oliver 

Gavin van der Merwe 

Jeremy Petersen 

Bayanda Sikiti 

Venesia Fowler 

Managing director: Clive During 

Administration & accounts: 

Charlene Steynberg 

Kathy Wootton 

Printing: FA Print 

PUBLISHED BY 

Global Africa Network Media (Pty) Ltd 

Company Registration No: 

2004/004982/07 

Directors: Clive During, Chris Whales 

Physical address: 28 Main Road, 

Rondebosch 7700 

Postal address: PO Box 292, 

Newlands 7701 


Tel: +27 21 657 6200 

Fax: +27 21 674 6943 

Email: info@gan.co.za 

Website: www.gan.co.za 

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 

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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 

further entrenched. 

• 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 

minimum. 

• Jonty Leon, Legal Manager for 

Expatriate Tax Compliance at Tax 

Consulting South Africa 

8 www.bluechipdigital.co.za 

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 

things happen. 

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.” 

• www.cmtrading.com 

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 

business environment. 

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 

currency requirements. 


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info@thecollaborative.co.za | 082 | | 082 568 568 1795 1795 | www.thecollaborative.co.za 

| | www.bluechipdigital.co.za 

11

COACHING 

Money taboo 

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 

financial decisions. 

• 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. 


ASSET MANAGEMENT 

Asset manager 

headwinds 

For a well-established 

industry, there is 

a surprising 

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 [1] . 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 

to establish. 

Ultimately the asset managers are becoming dependent on 

fund distributors, and this leads to headwind # 2: fees. 


ASSET MANAGEMENTINVESTMENT 

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, 

and large 

across their 

managers 

client base by using 

typically 

a range 

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, 

business. 

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 [1] 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 

15 


www.bluechipjournal.co.za 

2

PORTFOLIO MANAGEMENT 

NAVIGATING 

SUCCESS 

Blue Chip sits down 

with Zisanda Gila from 

Momentum Investments 

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 

under management. 

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. 

Zisanda Gila 

“We consider management of risk to be a fundamental 

aspect of portfolio management.” – Zisanda Gila

BRAVE/6432/MOM/E 

Your clients’ investments 

and the world we live in. 

Why not grow 

both together? 

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.

WEALTH MANAGEMENT 

Can South Africans 

REBUILD their WEALTH 

after LOCKDOWN? 

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 

current environment.” 

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 


WEALTH MANAGEMENT 

“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 

for individuals). 

• Are looking for exposure to a global growth portfolio but have 

either utilised their annual offshore allowance or have SARB 

approval issues. 

• 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,” 

says Ratcliffe. 

“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 

hundred years. 

“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 

Risk Management. 

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 


19

RETIREMENT PLANNING 

Retirement 

planning 

in the time 

of Covid 

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 


RETIREMENT PLANNING 

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 

above inflation. 

• 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 

in future. 

• 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. 

Free retirement 

coaching session 

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, 

Nedgroup Investments. 

For more information, visit https://myretirement.nedgroupinvestments.co.za/en/ 


21

OFFSHORE INVESTMENTS 

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 

 

Schroder ISF 

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. 

22 www.bluechipdigital.co.za 

Schroder ISF 

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. 

Schroder ISF 

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. 

Schroder ISF 

US Dollar Liquidity 

A fund that invests in 

US$ money market 

instruments. It provides 

investors access to 

wholesale money 

market investment 

securities and aims to 

provide income by invest- 

ing in short-term bonds 

denominated in USD.

COLUMN 

HOW TO NAVIGATE 

volatile markets 

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 

financial goals. 

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 



23

THE PUBLIC EYE 

Why South 

Africa is an 

attractive 

destination 

for investors 

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 

our position. 

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 

challenge ahead? 

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 

the momentum. 

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 

company’s business? 

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 

were made. 

Follow PASA on Twitter for 

more on this exciting economic 

development [@sa_petroleum]. 

DR PHINDILE C MASANGANE: PHD 

CHEMISTRY, MBA, BSC (MATHEMATICS & 

CHEMISTRY) 

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. 

25

ASSET MANAGERS 

Boutiques 

are better 

– right? 

The 

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 

Equity category. 

Boutique managers 

cover a much wider 

range of returns. 

The better ones tend 

to be dramatically 

better. However, 

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 

boutique debate: 

PRO BOUTIQUE 

1. Smaller managers are nimbler and can 

buy in and sell out of their positions 

more easily. 

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 

opportunities. 

management caused by the size of assets 

under management. 

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 

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 

www.truffle.co.za


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. 

Managers 

with smaller 

assets tend to 

have higher 

concentration or 

fewer shares in 

their portfolios. 

Source: FE Analytics, MitonOptimal 

James Downie, Head: Institutional 

Asset Consulting & Optimisation, 

MitonOptimal South Africa 

GETTING 2 

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 

OWNER MANAGED 

NIMBLE ASSET SIZE 

PROVEN TRACK RECORD 

We have worked together 

for more than 20 years 

We offer skills in all the 

asset classes including 

global markets 

Our funds are managed 

with a strong 

co-investment mindset 

We are active 

portfolio managers 

We have a long track record 

of consistent returns and 

investment excellence 

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 

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The South African Journal 

for Financial Planners


Identifying, partnering 

AND GROWING… 

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 

distribution strategy.” 

“Short-term outlooks 

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

Tuning 


in 

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 

alternative investments. 

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 

smaller players. 

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 

gets unlocked.” 

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 

micro-managing. 

“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. 

Looking ahead 

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 

track record.” 


33

, a 

ist 

a 

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tly 

nd 

ut 

at 

as 

lly 

ng 

rk 

ur 

at 

ise 

ey 

es 

he 

in, 

ut. 

as 

et 

w 

a 

nt. 

nt 

ve 

ed 

he 

er 

is 

ial 

at 

as 

? 

improved by 40%. Operational costs fell, 

FINANCIAL SECURITY with 23% less electricity and 90% less 

paper used. 

Perpetual Guardian, a New Zealandbased 

financial services 

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 

The most 

in the 

levels reduced and work-life balance 

MESSY 

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 

MIDDLE? 

a dent in traffic congestion! 

References 

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 

Ricardo 

security, 

Semler, The 

the 

Seven 

new-age 

Day Weekend, 

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 

resources 

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”. 

tools 

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 

teacher 

Trends Report, 2019 

You’re thinking about “financial 

equal 

developed with 

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 

May 2019 

 

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 

well-lived. 

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 

presentations 

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 

l.co.za 


FINANCIAL SECURITY 

not be that excited at the prospect. Particularly 

given that financial planners’ training is primarily 

technical and focuses on helping people achieve 

financial security. 

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. 

References: 

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 


35

EVENT 

Managing humans 

not assets 

Humans Under Management South Africa 2020 

H 

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 

practising advisors. 

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, 


EVENT 

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 

circumstances change. 

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 

Ninety One. 

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 

andy@humansundermanagement.com 


37

DIVERSITY 

Women 

in 

finance 

The power of women 

coming together 


DIVERSITY 

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 

uncertain times. 

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 

face-to-face. 

To join this network of dynamic women, 

email Holly@wifn.co.za 

Follow them online on Instagram, 

@Womeninfinancenetworksa 

Follow them on Facebook, 

@Women in Finance Network 

Visit www.wifn.co.za 


39

FINANCIAL PLANNING 

Women as financial 

PLANNING CLIENTS 

Creating value for the female market 

McKinsey & Company has in a recent article [1] 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. [2] 

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. [3] 

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] : 

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, 

Wealth Creed 

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 

segment-specific client 

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 

households, millennial 

women)? 

• 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 

go-forward strategy? 

Source: McKinsey 

https://www.mckinsey.com/industries/financial-services/our-insights/women-as-the-next-wave-of-growth-in-us-wealth-management 

Sources: 

[1] 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 

[2] https://www.dailymaverick.co.za/article/2020-07-22-time-for-black-women-to-lead-in-higher-education/ 

[3] SA women embrace who they are: https://www.McKinsey1life.co.za/blog/honey-listen

TECHNOLOGY 

Weathering the storm 

of Covid-19 

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. 


TECHNOLOGY 

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 

developed markets. 

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. 


43

FINANCIAL PLANNERS 

Financial 

The very first 

Planner Year 

of the 

Debbie Netto-Jonker, CFP®, Financial Planner of the Year 2001

FINANCIAL PLANNERS 

I 

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 


45

FPI 

0REASONS 

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! 

1 

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. 

2 

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 

3 

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, 

off-the-cuff interaction. 

4. Make “Excellence your Standard” as you transition to a feebased 

practice 

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 

Planning Technology 

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 

4 

5 

6 

46 

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. 

7 

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. 

8 

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. 

9 

10. Get incredible value for money with our state-of-the-art 

digital experience 

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 

put together. 

10 

11 

BONUS REASON! 

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. 

BOOK 

YOUR 

SPOT 

• 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. 

47

FPI 

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 

radio personality 

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 

client service. 

• Michelle Hoskin, aka Little Miss WOWW! of 

Standards International in the UK 

48 


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

FPI 

The power of 

SUPERIORITY 

Excellence as the standard 


I 

f 

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 

the business. 

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 

your business. 

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. 

Michelle Hoskin, Coach, Standards International 


51


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®, 

Chief Innovation 

Office, Innovating 

Advice 

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 

work themselves. 

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 

your job. 

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. 


53

B 

LIFE PLANNING 

uilding 

a financial 

planning 

business 

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 

your business 

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 


LIFE PLANNING 

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 

money conversations. 

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. 

Client advisory 

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. 


55

HY ? 

CHINA 

Why now… 

OFFSHORE INVESTMENTS 

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 


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Blue Chip Journal, Issue 77

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