2371-IC-Connect Newsletter- April 2025-2025-04-04 by Alexforbes

Hello everyone!

The first quarter of 2025 is behind us and what a quarter it has been. From the Trump effect on the globe right through to our own backyard with its budget challenges, these are certainly interesting times.

In this edition of our Connect newsletter we home in on some important questions to ask that help measure the value of an investment. Gareth van Deventer’s article delves into how you can measure value beyond the cost. It is also important to understand financial cycles that affect investing, like seasons affect farming. Read Jaco Prinsloo’s article for tips to help survive each financial season.

Do your loved ones know where to find all your important documents, passwords and investment information when you pass away? That is where a “Life File” can help. We highlight important aspects to include in your own personal Life File in Christel Botha’s article.

Our healthcare department’s article about nutrition for busy professionals will resonate with anyone who needs a little help to incorporate healthy eating in their busy lives.

Want to save smarter, budget better and make your money work to achieve your financial goals, then Michael Avery has just the podcast to help you lay the groundwork in his series “Setting your financial goals for 2025” on Classic Business FM.

Finally, we wrap things up with insights from our investment experts into recent market developments.

For queries, contact: Telephone: 0860 66 4444

Email: mymoneymatters@alexforbes.com

We hope you find the content informative and invite you to connect with us throughout 2025, as we navigate these interesting times together. Head: Individual Consulting Strategy Rita Cool

Measuring an investment’s value

Everything has value, though how we measure it varies. Investments, too, hold value beyond their stated worth. For some, it’s the security of an emergency fund; for others, it’s the comfort of a well-planned retirement. While there’s no perfect formula to measure an investment’s value, these four questions can help.

Good financial advice—whether digital, human, or both—is invaluable. Like medical advice, online information can help, but professional guidance ensures better outcomes. The same applies to investing. Skilled advice enhances results and helps assess value.

Fees impact long-term investment outcomes, yet investors may not always be aware of them. The effective annual cost (EAC) helps compare investment costs across providers by including advisory, management and administration fees.

A lower EAC doesn’t always mean better value. Ensure you’re comparing like for like. Costs can vary based on portfolio range and service levels. A higher-cost option may offer greater flexibility or personalised advice.

The EAC impacts the outcome of an investment over the long

Are

your investment portfolios meeting their defined objective?

Fees are important but shouldn’t be considered alone. The investment portfolio chosen to meet your goal should be evaluated alongside the fees. Paying low fees is pointless if your investment isn’t reaching its target.

Every investment has a clear goal, like long-term capital growth or short-term protection. This goal should be used to measure value. For example, if a fund’s goal is to beat inflation over five years and it does, it has achieved its objective, even if it wasn’t the top performer.

No investment stays on top all the time and trying to chase the best performers can lead to losses. A fund that consistently meets its goal helps you achieve your investment objectives more reliably. Investments should be monitored to ensure they align with their goals; if not, consider changing them—not based solely on short-term returns.

Is your investment tech savvy?

Technology has made investments more transparent, offering real-time data and digital transactions.

Advisers can use technology to analyse data and enhance investment solutions. Though tech shouldn’t replace skilled advice, it enhances speed, efficiency and accuracy— ultimately improving investment outcomes.

This year, ensure your investments offer value beyond cost to determine if you’re on track to achieve your investment goals. Seek value first

Why the best investors think like farmers

In 2008, the global financial crisis shook markets, businesses and economies. Fear spread as property values fell and uncertainty grew. Yet, patience and wise investing led to strong recoveries, with markets rebounding over time.

Like seasons, markets move in cycles. Farmers don’t abandon fields in winter—they prepare for spring. Smart investors follow the same principle: knowing when to plant, grow and harvest for long-term success.

Financial spring: Opportunity in the

dirt

Financial spring arrives when fear peaks, pessimism reigns and many believe the game is over. Yet beneath the surface, the seeds of recovery are being sown.

March 2009 was a prime example. Markets had plunged and headlines declared the ‘death of equities.’

Signs of financial spring:

But seasoned investors—those who understand cycles, like farmers—were quietly buying.

Not because they expected an immediate rebound, but because they knew winter never lasts forever.

Pessimism is everywhere, which means opportunity is, too

The brave start buying— even though it just feels wrong Interest rates are low. Governments are trying to stimulate growth

This is the time for long-term thinking—buy quality assets while they’re undervalued, even when others doubt your decision.

Financial summer: Growth feels easy—maybe too easy

In financial summer, optimism returns—prices rise, companies expand and investing feels effortless. But that’s when caution is crucial.

Remember the dot-com boom? From 1995 to 2000, tech stocks soared and investors ignored risk, assuming the party would never end. It did.

Signs

financial summer:

Rising consumer confidence. Everyone feels wealthier

Falling unemployment —businesses are hiring aggressively

Markets seem unstoppable and that is a big red flag

Stay invested, but don’t let greed take over. Smart investors trim their winners and prepare for the next season.

Financial autumn: The illusion of forever

Financial autumn is deceptive—it looks like summer but acts like winter. Markets rise yet cracks appear. Overconfidence leads investors to take excessive risks, believing in a system that can’t fail.

In 2007, the housing market seemed unstoppable. People overborrowed, banks lent freely and Wall Street created complex debt products. The warning signs were there, but few paid attention.

Signs of financial autumn:

Prices stay high— even when fundamentals weaken

Debt levels rise— people take on more risk than they should

Everyone feels invincible— right before reality hits

This is the time to harvest. Take profits, rebalance and get defensive. If an investment seems too good to be true, it probably is.

Financial winter: When fear becomes your best friend

Financial winter is tough, prices fall, unemployment rises and panic drives people to sell at the worst time.

Yet history shows that wealth is built in winter. The best opportunities arise when fear peaks. In 2008,

You know it’s financial winter when:

panic selling was rampant, but in hindsight, it was a once-in-a-century buying moment

Markets plunge and fear dominates

Everyone thinks that this time is different, but it never is Unemployment spikes and recession fears grow

In winter you first need to survive and then prepare. Do not sell in a panic. Use the financial winter to buy quality assets at discount prices because just like in nature, winter is always followed by spring.

Where are we now?

The market today feels like late autumn , beginning winter.—some sectors thrive, but risks rise. Are the seasons changing? Maybe, maybe not. The key is reacting wisely, not guessing.

As Morgan Housel said, investing isn’t about perfect decisions but avoiding big mistakes. Market cycles test discipline, not knowledge.

So, when fear strikes, remember: seasons change and the best investors think like farmers, not fortune tellers.

. Buy when it is be sceptical. Take profits and reduce risk. be cautious. Enjoy the ride, but do not overextend.

be patient. Hold your ground and look for opportunities.

Investing is simple, but it is not easy. The hardest part is not knowing what to do—it is having the discipline to do it. So next time the market scares you, remember this: Every season changes and the best investors are not fortune tellers; they are just really, good farmers.

Your life file

A life file ensures your loved ones can easily access important documents like your will, passwords and title deeds, reducing stress during a difficult time.

Keeping your financial affairs in order prevents unintended asset distribution and eases the administrative burden. Everyone should have one—not just for after death, but for managing life efficiently.

In the event of an emergency or death the following documents are crucial to include in your llfe file, which can be kept in a safe or filed with your lawyer for safe keeping:

1 Contact details for your lawyer, insurance broker, financial advisers, doctors and tax consultants who need to be notified when you pass away

2 A copy of your will and your living will (communicating your desire to be kept on life support)

3 Medical information and history for yourself and other dependent family members

4 Unabridged birth certificates for each member of the family.

5 Your ID book or card and driver’s license 6 Your marriage certificate

7 If you have one, a copy of your antenuptial contract

8 If are divorced, copies of divorce and maintenance agreements

9 If you are widowed, certified copy of your late partners’ death certificate and information of the

Remember, if storing files electronically, ensure your next of kin knows their location and how to access them. Since everyone’s situation is unique, no single checklist fits all.

Start the conversation early with a financial or legal professional to keep your life file complete and up to date.

Here are four tips to keep your passwords safe:

1. Use strong, unique passwords: Create long passwords (12+ characters) with a mix of letters, numbers and symbols. Avoid common words and personal info.

1. Avoid reusing passwords: Don’t use the same password across multiple sites to reduce the risk if one gets compromised.

1. Regularly update your passwords: Change passwords periodically, especially if you suspect a breach.

1. Use a trusted executor: Appoint someone reliable to manage your passwords and important documents for your next of kin. 1 2 3 4

Nutrition for busy professionals

We’ve put together simple, effective nutrition tips to help you stay energised and focused—no matter how busy your schedule gets

1 2 3

Plan and prep

Always have a plan B

Set aside time on the weekend to plan your lunches for the week and purchase the necessary groceries. This saves you from having to think of a meal on the spot. If you have limited time in the morning, prepare your full lunch beforehand and pack it the night before. Alternatively, prep your lunch ingredients so that it’s easy to quickly assemble in the morning. Grill the chicken to add to your sandwich or chop up the vegetables for your salad.

Despite the best intentions, meal prep may not always be possible. In those moments, opting for minimally processed convenience foods can help you stay on track with healthy eating. Precut vegetables, fresh fruit or a ready-made salad (without dressing) can help to ensure you don’t skip your fruit and vegetables. Quick protein sources include rotisserie chicken, grilled chicken fillets, canned beans, chickpeas and tuna. For a carbohydrate, you can opt for pre-cooked brown rice, quinoa or bulgur.

A healthy lunch box should include: a lean protein (grilled chicken breast, tuna, eggs, beans, chickpeas),

high fibre carbohydrate (wholewheat bread, wraps, pasta, brown rice, quinoa), fruit

vegetables (the more variety the better) and a side of dairy (Greek yoghurt or cheese)

Pick nutrient dense snacks

Packing healthy snack options can help maintain your energy levels throughout the day. Pack yoghurt and fruit as a snack or, if you struggle with your vegetable intake then opt for vegetable sticks with hummus. Keep nuts or protein bars at work as emergency snacks for those unexpected longer days.

Stay hydrated

Dehydration can lead to fatigue and is often the reason for that sugar craving in the middle of the day. Carry a reusable water bottle and set reminders or prompts such as take a sip after every sent e-mail to ensure that you drink water throughout the day.

Don’t skip meals

Practice mindful eating

Make smart choices

Skipping meals will not only lead to energy crashes and lower productivity, but also cause you to overeat later. Grab a protein bar or fruit snack if you cannot leave a meeting and have a meal as soon as you can thereafter. Don’t rely on that extra cup of coffee to power through

Food is not just sustenance; you’re nourishing your body too. Take a few minutes away to stop working and enjoy your lunch. This can also help with digestion and prevent overeating.

On days when you are eating lunch out, make smart choices to stay on track:

Prioritise protein options that are grilled and not fried. Choose a side of vegetables or salads over chips and ask for sauces and dressings on the side.

Opt for high fibre carbohydrates such as wholewheat rolls or pasta or brown rice where possible.

Remember the plate model for portion control.

Fill ½ your plate with vegetables, ¼ with a lean protein and ¼ with a high fibre carbohydrate. If portions are larger, pack the rest to take home. 4 5 6 7 8

Start with small changes

Even small changes to your diet can make a significant impact over time. The key to success is ensuring they are sustainable. For example, start by swapping out sugary drinks for sparkling water, herbal tea or infused water. Cook an extra portion of dinner and pack leftovers for your lunch the next day. Think progress, not perfection. Take it step by step and you will set yourself up for sustainable, long-term success.

Alexforbes

Setting your financial goals for 2025

Classic Business

In this episode of Michael Avery’s podcast series on Setting your financial goals for 2025 on Classic Business FM, Rita Cool shares some out of the box thinking on how to activate a solid financial game plan. Tune in and empower your goals.

Time spent with an Alexforbes financial adviser is invaluable.

Market updates

Watch the commentary here

Macro highlights:

Tariffs, trade and geopolitical tensions took centre stage in February 2025. President Trump reinstated tariffs on imports from Mexico and Canada, imposing a 25% tax on most goods. The tariffs took effect from 4 March 2025. The United States (US) merchandise trade deficit widened to a record high in January 2025 as businesses increased imports markedly amid concerns of impending tariffs. Meanwhile, US-led negotiations to resolve geopolitical tensions were unsuccessful.

Market highlights:

Markets remained mixed, with developed markets maintaining gains while emerging markets benefitted from China’s property stimulus.

US Treasuries and UK Gilts outperformed as economic concerns fuelled demand for safehaven assets, while emerging market bonds saw strong inflows.

Composite purchasing managers indices (PMIs) were barely in expansionary territory in the US and Europe in February, but reflected faster business activity expansion in Japan. Interestingly, the US manufacturing PMI remained in expansionary territory for a second consecutive month as manufacturers front loaded inventory purchases ahead of tariffs.

Locally, in an unprecedented move, the South African (SA) government postponed the 2025 Budget Speech from 19 February to 12 March 2025 due to disagreements within the Government of National Unity (GNU) over a proposed VAT increase from 15% to 17%.

The Bank of Namibia’s monetary policy committee (MPC) decided to cut the repo rate by 25 basis points (bps) to 6.75% during their February meeting, in an effort to support growth.

The JSE All Share Index ended flat, with resource stocks weighing on performance, but IT and telecoms providing a buffer.

SA bonds posted muted returns, underperforming emerging market peers as geopolitical risks and fiscal concerns persisted.

The rand weakened slightly against the dollar amid rising geopolitical concerns and foreign investor outflows. Meanwhile, foreign equity outflows worsened, indicating sustained caution towards SA assets.