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30 November 2017 |

First for the professional personal financial adviser



INSPIRING PRIDE RMB is the overall winner at the JSE Spire Awards 2017

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The South African financial planning industry has evolved significantly over the past two decades Page 10

The solution is suitable for investors looking to replace an active allocation with a low cost, rules based, multi factor equity solution Page 17

Investors not solely focused on returns advisers who work with Dimensional better understand what is important to their clients. The results show that investors are not solely focused on investment returns or statement balances, with peace of mind and working with an adviser who understands their personal situation, ranking higher.

The value of advice When asked how they primarily measure the value received from their adviser, the majority of investors say their sense of security is most important to them: • Sense of security/peace of mind (35%)  • Knowledge of my personal financial situation (23%)  • Progress toward my goals (20%)  • Investment returns (14%).  “Peace of mind may be attributed to many aspects of an adviser relationship, and in our view it is an outcome of advisers helping investors feel prepared by setting the right expectations,” says Dave Butler, Dimensional Co-CEO and Head of Global Financial Advisor Services. “We believe the advisers who work with Dimensional create a different experience for their clients. Almost all of the investors surveyed say they would recommend their adviser to others.” David Booth, Dimensional’s Founder and Executive Chairman adds, “In our view, peace of mind is what success is all about. Achieving returns in a way that enables people to relax just a little bit more is very important to us and also to investors.” 

1 in 4 South Africans is affected by cancer.*

Adviser attributes When asked what attributes they consider most important in their adviser relationships, the experience investors have with their adviser is key. More than half of respondents say client service experience and their adviser’s experience with similar clients are paramount. And approximately one-third of investors say returns are most important: • Investment returns (32%)  • Client service experience (31%)  • Experience working with clients ‘like me’ (26%)  • Range of services (6%).  “Returns matter, but having a plan and remaining disciplined are just as important for long-term investment success,” Butler says. “When investors work with an adviser who has a holistic understanding of their personal situation and can help them stay focused on their long-term goals, we believe they are better positioned to benefit from what the capital markets have to offer.”  Continued on page 2



nvestors place a high value on the sense of security they receive from their financial adviser relationships. This is according to new research from global investment manager, Dimensional Fund Advisors. In one of the largest studies of its kind, the firm surveyed almost 19 000 investors globally to help

How many of them are your clients? More information on Sanlam’s Cancer Benefit available at

*“One in four South Africans is affected by cancer through diagnosis of family, friends or self.” Statistic provided by the Cancer Association of South Africa (CANSA). Sanlam is a Licensed Financial Services Provider.

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30 November 2017

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Retirement income While investors surveyed think the size of their nest egg is important in retirement preparation, this takes a back seat to knowing how much they can afford to spend in retirement. Asked to describe the most valuable financial information to help them plan, the top three responses were:

Retirement lifestyle When asked to name their greatest fears about their personal finances, respondents say: • Not having enough money to live comfortably in retirement (37%) • Experiencing a significant investment loss in a market downturn (31%) • Outliving my money (13%) • Incurring unforeseen expenses (12%).

Those planning for retirement • Amount of money I can spend each year (28%) • Likelihood of achieving my goals (28%) • Total amount of money I have for retirement (22%).

“Naturally, many investors have fears about what is likely their most important financial goal – saving for retirement. By helping clients understand what they can and cannot control, advisers can create a different experience to help ease their concerns,” Butler says.

During retirement • Amount of money I can spend each year (33%) • Average annual returns I can expect (24%) • Total amount of money I have for retirement (23%). “We believe that future income needs are one of the most important components of effective retirement planning. The answer should influence how you invest,” says Stephen Clark Head of Global Institutional Services and President, Dimensional International.



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inister Malusi Gigaba’s Medium Term Budget Policy Statement speech to parliament wasn’t well received by the markets, with the rand tanking to 14.05 against the US dollar shortly afterwards. While most of us were aware that this would be no ‘good news’ mid-term budget review, I don’t think many expected a R50.8bn tax revenue shortfall in the current fiscal year and once the MTBPS details were revealed, the warnings from economists came in thick and fast. For Nedbank economists, the figures set out in the MTBPS represented more a scenario than a plan to address the considerable problems facing the country. “However, the statement should also be seen in the context of the political turmoil and growing evidence of rampant corruption that have hurt the country over the past two years. If this continues, so will the deterioration of the economy’s potential,” they said. NKC Research economists – like most others - said the MTBPS would probably result in further downgrades of South Africa’s sovereign currency ratings. “We expect to see all the major credit ratings agencies to have their foreign and local currency ratings at sub-investment grade by mid-2018. The likely capital outflows and ZAR depreciation that will follow, will have a further detrimental impact on the economy. Thus, we will probably sink further, before a turnaround can be hoped for, as weak economic growth produces less tax revenue. Hard choices are required to return public finances to a sustainable position. Failure to make such decisions, or to effectively implement them, will reinforce economic and fiscal deterioration in the medium term and could bring South Africa closer to the point where an IMF bail-out could become the only option.” Strong leadership is now required and it is hoped that the December ANC electoral conference will produce a positive outcome. Janice @MMMagza

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30 November 2017




How did you get involved in financial services – was it something you always wanted to do? I spent many years working in the automotive industry, with organisations like Mercedes-Benz SA, Imperial and McCarthy. Financial services play a critical role in this industry’s value chain and contribute significantly to revenues in this industry by lending to a captive market. Moving into the financial services sector was a natural progression and after joining Ecsponent in 2010, I was able to lead the group in changing from a venture capital company to becoming the fully-fledged financial services group it is today. What makes a good investment in today’s economic environment? A good investment balances sustainable growth and security and is based on strong fundamental data. It is easy to be swept up in the hype when a company or asset class is performing well, but hype doesn’t guarantee a good investment. I believe it is critical to look beyond the build-up to determine the long-term viability of investments. If the fundamentals are sound, the investment will provide returns. What was your first investment and do you still have it? My first investment was in a retirement annuity with an extended investment term and a tiny contribution amount. I had no idea what I was investing in and why, because retirement was the furthest thing from my mind. Now that many years have passed, and retirement is not such a foreign concept anymore, I’m glad I started with that small investment that will eventually make a nominal contribution to my retirement income. These types of investment products have evolved and their structure has improved significantly over the years. Today, I’m proud to say that Ecsponent offers its own investment products, among them retirement annuities that

give investors a much greater advantage than the older generation products did. By reducing the investment costs on these products, we are able to generate considerably greater investment returns for investors. What have been your best and worst financial moments? My best financial moments have been during my time with Ecsponent. Being part of a group that has grown consistently in all its key indicators over the past six years and offering shareholders consistent growth has been exceptionally rewarding. On the other hand, the domino effect of African Bank (Abil)’s collapse was a personal low financial point. At the time, Ecsponent had already exited the retail lending sector in South Africa and our business was unaffected. However, the knock-on effect of Abil’s collapse on investment portfolios affected my pocket directly with many well-known funds losing significant amounts of money as result of the demise. What important things will/do you teach your children about money? The principle of not spending money you haven’t earned stands out and I would not only want to teach it to my children and grandchildren, but to all consumers.

UPS & DOWNS A property situated on Cape Town’s Atlantic seaboard costs 143% more than it did five years ago, while city bowl property prices have increased by 114%. This is according to the FNB Property Barometer. Prices in Cape Town’s near eastern suburbs of Woodstock and Salt River have risen by 93%, the southern suburbs by 85% and the southern peninsula by 73% over the last five years. However, over the same period, property

prices nationally have remained flat. Cape Town has the lowest rate of first-time house buyers in the country, at less than 7%, when compared to the national average of 21%.

South Africa will suffer a loss of around R3.3bn due to the illegal sale of the country’s strategic fuel reserves in December 2015 and January 2016, the Business Times reported last month. It cited a confidential forensic audit report as the source of this information. The report, leaked to the newspaper, “officially gives the lie to former Energy

Minister, Tina JoematPetterson’s repeated statements that the fuel stock was not sold but rotated – the industry term for replacing the fuel.” South Africa will now have to find around R6.483bn to replace the 10m barrels of strategic crude oil sold.

Nkareng Mpobane has been appointed to Deputy Chief Investment Officer: Fund Management for Ashburton Investments, effective immediately, while continuing with the responsibilities of her current role as Head of Financials, the company says. Mpobane joined Ashburton Investments in 2012 and has been instrumental in the success of the Fund Management business. She has over 10 years of experience in the investment industry and she is a financial sector and offshore markets expert.  Through her current role, Mpobane has been integrally involved in both the local and offshore investment processes. The Southern African Venture Capital and Private Equity Association (SAVCA), the industry body and public policy advocate for private equity and venture capital in the region, welcomed four new directors to its board during its recent annual general meeting. Appointed representatives, Juan Coetzer, Head of Private Equity at Ashburton Fund Managers; Cathy Goddard, CEO of Firebird Fund Managers; Vusi Thembekwayo, CEO of MyGrowthFund; and Keet van Zyl, Founding Partner of Knife Capital, are well respected sector experts and leading industry professionals. “It is an honour to have such a collective of industry experience represented on our board,” says SAVCA CEO, Tanya van Lill. PSG Konsult, a listed and independent financial services provider, has concluded an agreement to acquire ABSA Insurance and Financial Advisers Proprietary Limited’s commercial and industrial insurance brokerage business. This business is made up of 102 advisers and in excess of 32 000 clients across the country. The acquisition is subject to conditions typical for a transaction of this nature including regulatory approvals.   Sasfin Wealth has announced the appointment of Erol Zeki as CEO. Zeki has more than 17 years’ experience in financial services, and succeeds Michael Sassoon, who will continue as an Executive Director of Sasfin Holdings and a Board member of all the Sasfin Wealth businesses. Zeki joins from SIPP Investments, a financial services business that he founded three years ago. Prior to founding SIPP Investments, Zeki was the CEO at FNB Securities, previously BJM Private Client Services. During his 14 years at BJM, he held various positions including that of stockbroker, portfolio manager and later, CEO. During his tenure, he was responsible for integrating BJM into FNB and managed the subsequent rebranding to FNB Securities. 

30 November 2017


Giving back


ll four of our children have thoroughly enjoyed, or are still benefiting from, a school whose motto is simply, ‘We shall give back’. At first, I must admit, I found the line a little obvious and cheesy, but I now think that, if nothing else, it has always reminded my wife and I that as parents, we should ensure that our children are considerate to other people’s needs. It is an old and accepted adage that ‘charity begins at home’, and yet at 55 years old, I still have no idea what that means! So, I have simply assumed it to be: “Ensure that your family are safe, housed and fed. After that look to others and do what you can to make their lives better.” I am personally a very lucky man, and regardless of what the future brings, I have always worked diligently and thus enjoyed a fair degree of good fortune. I knew very early on in my adult life that I had to ‘give back’. As the CEO and Chairman of Warwick in Africa, I deal with thousands of clients who live, as we would say in Lancashire, a ‘comfortable life’, and I am also delighted that they have always supported the company’s ‘community’ projects. Spirit Education Foundation, was founded in memory of my sister Louise, during the month of our first free elections, back in April 1994 and over the last 23 years, it has educated hundreds of scholars and funded thousands of years of education for children from disadvantaged backgrounds. Its largest sponsor has always been Warwick. Warwick also supports the Big Issue in Cape Town, as well as the Spirit Wildlife Fund that is dedicated to saving young rhinos, established by my wife Jooles Kilbride. Supported by four Warwick directors, I am the Chairman of Lord’s Taverners SA. This organisation offers a ‘Sporting Chance’ to disabled and disadvantaged children. The ‘Spirit Foundation International’, which I am also very proud to chair, supports disadvantaged children in the north west of England. It also helps fund ‘Warwick University in Africa’, a scheme that sends Warwick University graduates to teach in schools in Africa, predominantly South Africa, Ghana and Tanzania. I would therefore like to take a moment to thank everyone, including the generous staff and clients of Warwick who assist Warwick, Spirit, LTSA, EITC, EFS, Warwick in Africa, the Big Issue and also the ‘Little Optimist’, a charity run by Greg Bertish, an amazing man committed to the Red Cross Children’s Hospital. If I am ever asked: “So what can I do?” I answer as I did to my friend Greg, ‘Just go out and do some good’, because that is all we can ever hope to achieve!



Fiduciary award winner Marieta Uys of PSG Trust in Pretoria received the Top FPSA® Candidate Award 2016 at the 7th Annual Fiduciary Institute of South Africa (FISA) conference in Sandton earlier this year. FPSA stands for Fiduciary Practitioner of South Africa®  and is a professional designation offered to members of FISA on application when they comply with education, examination, experience and ethics requirements. As from 2018, anyone who wishes to apply to FISA for the FPSA designation will need to successfully complete the Advanced Diploma in Estate and Trust Administration offered by

the School for Financial Planning Law (SFPL) at the University of the Free State. The award, sponsored by the SFPL, is made annually to the candidate who achieved the highest marks for the three required modules during the previous year’s FPSA examinations. Uys scored an average of 78.7% for Law and Ethics in Fiduciary Services, Wills Consultation and Drafting, and Estate Administration. The award consists of a trophy and certificate, a R10 000 cash prize, and registration free of charge to attend the FISA conference at which the award is handed over.

From left to right: Henda Steyn (SFPL), Marieta Uys (award winner), Ronel Williams (FISA Chairperson)



30 November 2017

Taking care of your money offers rewards and benefits

Some loyalty programmes reward consumers for taking care of their health or simply for spending more with that particular company. But in a country characterised by dissaving, we felt it important to focus on financial behaviour,” says Sanlam Reality Chief Executive, André Larisma. Sanlam Reality is a loyalty programme for Sanlam clients. It aims to help its members take care of their money through a mixture of education tools. Consumers are rewarded for attaining their savings goals through Sanlam’s financial products. They are also rewarded for making smart money choices on their day-to-day purchases and lifestyle expenses. Benefits range from wealth products, to day-to-day savings, health, travel, entertainment and personal services. The wealth category provides members with preferred access to the Sanlam Group’s product suite, including discounts on life insurance premiums and asset management fees. “The Sanlam Reality programme

helps members along their journey to financial well-being over the long term while also offering short-term benefits and incentives. While Sanlam Reality does offer some one-of-kind benefits, we differentiate mostly on how we deliver benefits to members. “Many people find that their loyalty programmes don’t perform in the way they expected them to. They try to access a headline offer and are often confronted with unexpected terms and conditions, or a cumbersome process they have to negotiate.” Larisma believes consumers want simplicity of design, transparency in terms of what the programme offers and easy access to rewards. This is what differentiates Sanlam Reality from other loyalty and rewards programmes. “We have invested a lot in making users’ experience of Sanlam Reality as effortless as possible. Almost all our benefits are accessible online on members’ PCs or mobiles.” Larisma says the success of any loyalty programme hinges on meeting its members’ expectations.

“Although some programmes have very attractive headline offers, the reality is that very few people can access those, leaving them disappointed. We need programmes that have more inclusive offers that deliver value to all members, not just the top tier members.” According to Larisma, communication and interaction with members are extremely important for loyalty programmes. “Consumers are faced with many companies trying to communicate with them, so it’s important that you strike the right balance between what you want to share with your clients and what they look to you for advice on, and break through the clutter.” As an example of how one can achieve this, he points to Sanlam Reality’s Wealth Sense platform. “Wealth Sense is the educational aspect of the programme. We developed it in conjunction with behavioural psychologists, financial planners, and customer engagement experts to promote an awareness and appreciation

among members of their own financial situation and to help establish a pattern of sound financial planning. “The platform offers members unique insights from the best financial experts on personal finance topics, in the form of articles, videos, tutorials, interactive tools and calculators. Members are also able to complete wills online, file their tax by means of an online wizard (Tax Tim), and use many other financial tools,” he says. Larisma believes that simplicity is the key to the programme’s success that has seen a six fold increase in members’ registrations and engagement levels since its relaunch in 2015.

André Larisma, Sanlam Reality Chief Executive

Average increase of 8.4% in Bestmed’s 2018 member contributions


estmed Medical Scheme, the fourth largest open medical scheme in South Africa, has announced an average contribution increase of 8.4% for 2018. “We have seen that the average Consumer Price Index (CPI) has been at an unwavering rate of 5.93% over the last 12 months. The Council for Medical Schemes (CMS) uses the CPI as a benchmark for premium increases, therefore medical schemes trustees are obliged to justify increases exceeding CPI plus 3%. With that being the indicator of medical inflation, we can confirm that our increase of 8.4% is on par with the current average medical inflation corridor,” says Pieter van Zyl, Acting CEO of Bestmed. The medical schemes industry continues to make a significant contribution in providing quality healthcare coverage to South Africans. As a selfadministered scheme, Bestmed is able to keep its administrative costs at a minimum to make sure the largest portion of member contributions is paid towards healthcare costs to ensure they get more healthcare cover for every rand contributed. “Furthermore, we have managed to maintain a solid solvency ratio that places us in good stead with reserves per member and this was achieved by our membership growth,” adds van Zyl. “We believe that our efficiency as a memberowned administrator with a focus on wellness, as translated into our approach to encourage better health outcomes for members identified with certain

risk factors is starting to make a real difference,” says Chris Luyt, Marketing Executive Manager, Bestmed. For this reason, Bestmed has launched its improved wellness offering, now called BetterMe, with additional health assessments included in the programme, that will benefit all members. These additional assessments are aimed at identifying the risk areas of the whole family and not only those of adult members. By including these assessments, parents will be able to take note of their children’s health risks and take the necessary steps towards making changes to address these risk areas. The assessments include the following: • Fitness assessments • Nutritional assessments • Occupational therapy assessments • Baby growth assessments Families participating in the BetterMe wellness offering will receive a detailed report that indicates their health status and/or their identified health risks with suitable interventions recommended to address the findings. “It is important to highlight that the average percentage increase is not necessarily reflected in the rand amount paid towards subscription fees. A low

percentage increase from a high-cost base can still result in a higher monthly subscription, compared to a higher increase from a low-cost base. Since Bestmed’s subscription fees have been increased from a low-cost base for over the past decade, the value increase in six of our thirteen benefit options will be below R150 per principal member per month in 2018, with a subscription increase below R100 per month per principal member in two of our options,” concludes Luyt. Bestmed continues to prioritise the health of its members through its personalised and customercentric service in line with Personally Yours.

Pieter van Zyl, Acting CEO, Bestmed

30 November 2017

GARETH FRIEDLANDER Head of Research and Development, Discovery Life


South Africans would need to start saving a few years before their children are born to afford this. However, studies show that around 56% of local households don’t save for education”, says Friedlander. “Adding in the cost of laptops or tablets needed for everyday schooling and factoring in private tutoring fees which could easily exceed R4 000 per month across a range of schooling subjects, results in the total cost of education rising by more than 20%.” adds Friedlander. Global Education Protection solutions Current savings vehicles for education funding rely on the performance of the investments underpinning the vehicle and on parents’ commitment and ability to save each month. If parents are dependent on cover against a lifechanging event to protect education funding, then benefit can only be derived on a claim, such as death.

“Our new Global Education Protector is designed not only to protect a child’s education funding throughout their studies, but also to allow clients who choose to lead a healthy lifestyle to get up to 100% of their child’s tertiary education funded, whether the child studies in state or private institutions or at a facility abroad, and regardless of whether the parent has a claim linked to a lifechanging event,” says Friedlander. “The Discovery Life shared-value insurance model uses health and wellness information to dynamically underwrite clients,” he adds. “By optimising the shared-value insurance model through long-term rewards that are tailored to the needs of the individual, Discovery Life has been able to significantly enhance financial planning for education. Through providing appropriately aligned, long-term rewards that resonate with parents’ intrinsic motivations to best provide for their children’s education,

health and wellness behaviour is not just improved over the short term, but leads to healthy habit formation over the long term. The resultant longterm risk surplus derived through this healthy habitual change can then be channelled into a benefit mechanism that not just protects a child’s full education against a life changing event, but channels their parents’ improved health and wellness to fund their tertiary tuition fees.” Selecting from Core or Private Global Education protector benefits provides the same key benefits, at different levels of cover. A policyholder and their spouse can protect against disability, severe illness and death, or only death. And, members of the Discovery Vitality programme qualify for the University Funder Benefit which funds up to 100% of a child’s tertiary education fees on the Private Global Education Protector and up to 50% on the Core Global Education Protector, subject to a maximum.



Allan Gray Proprietary Limited is an authorised financial services provider.


Smart financial planning to fund education


oth in South Africa and abroad, a plethora of challenges prevent equitable access to good quality education, particularly at tertiary levels, says Gareth Friedlander, Head of Research and Development at Discovery Life. “Education inflation exceeds salary inflation by 2% to 4%,” explains Friedlander. “Existing education-protection mechanisms fall short in matching the growing challenges of comprehensively protecting education.” From 2010 to 2015, the cost of education rose by around 50% in SA. Currently, average tuition fees across SA’s public and private primary schools sits at around R20 000 and R100 000 respectively and up to R40 000 and R250 000 per annum respectively at the most expensive public and private high schools. Given the current pace of education inflation, for a child born in 2017, the cost of their final year of high school could exceed R600 000 at the average private high school. “Most


Ludwig van Beethoven’s genius wasn’t effortless. His Fifth Symphony started out as rather elementary musical sketches. Honing and polishing his work, Beethoven spent countless hours developing the sketches, scratching up and altering a single page as many as twenty times. Four years later, he had produced one of the greatest symphonies ever written. At Allan Gray, we value this kind of commitment. It’s the same philosophy we apply to investing and it has worked well for our clients for 43 years. Call Allan Gray on 0860 000 654 or your financial adviser, or visit



30 November 2017

JSE announces winners of 16th annual Spire Awards Excellence in South Africa’s fixed income, currency and commodity derivatives markets


he JSE announced the winners of the 16th annual Spire Awards, recognising excellence in South Africa’s fixed income, currency and commodity derivatives markets, at a gala dinner last month. ABSA Capital and Rand Merchant Bank (RMB) took home the big awards. ABSA Capital received the awards for the Best Bonds House and Best Research House, while RMB scooped the awards for Best Fixed Income and Currencies House, Best FX House, and Best Interest Derivative House.  The Spire Awards are made based on trading volumes and votes are cast by clients. “Congratulations to RMB who took home 11 awards this year and all of the companies who ranked highly in the various categories. We value our clients and member firms and appreciate all the support and effort from our market participants as we continue to grow the fixed income, currency and commodity derivatives

markets,” says Bernard Claassens, Manager, Fixed Income, JSE.  Claassens comments that these awards continue to demonstrate the successes of the JSE’s clients and member firms, and that they are testimony to the relentless effort and hard work that they have put in.   This year, from January to September, overall nominal bond market turnover totalled R20.29tn. The repo nominal turnover was R14.31tn, while the standard nominal turnover was R5.6tn.   The JSE has seen significant growth in the Currency Derivative and Interest Rate Derivative Markets with the number of contracts traded up 33% in the Interest Rate derivative Market and up 19% in the Currency Derivative Market. “Despite a tough economic climate, market participants from brokers to researchers and sales teams have showcased hard work, resilience and innovation,” says Claassens.

From Left to Right: Rand Merchant Bank (RMB) accepting the final award in the category of Best Fixed Income and Currencies House and Daniel Mminele, Deputy Governor of Spire the South African Reserve3:38:59 Bank. Prescient Securities Award Ad.pdf 10/25/2017 PM

The winners for 2017 are as follows: Award Name

Best Market Making Team Government Bonds Best Sales Team - Bonds Best Team - Inflation Bonds Best Team - Credit Bonds Best Repo Team Best Debt Origination Team Best Market Making Team Interest Rate Derivatives Best Sales Team Interest Rate Derivatives Best Team Listed Interest Rate Derivatives Best Market Making Team - FX Best On-screen Market Making Team - FX Best Sales Team – FX Best research team - Economics Best research team - Fixed Income Best research team - Credit Best research team - FX Best research team Technical Analysis (FX, IRD, Bonds) Best research team - Quantitative Research Best research team - Africa Best Structuring Team - Inflation\Credit\FX Best Inter Dealer Broker - Bonds Best Inter Dealer Broker - IRD Best Agency Broker - Bonds Best Agency Broker Listed FX Derivatives Best Agency Broker Listed IR Derivatives Best Broker Listed Commodity Derivatives Best Market Maker Cash Settled Commodity Derivatives Best Bonds House Best IRD House Best FX House Best Research House Best Fixed Income and Currencies House

First Nedbank Capital Nedbank Capital Rand Merchant Bank ABSA Capital ABSA Capital Rand Merchant Bank Standard Bank Rand Merchant Bank Rand Merchant Bank Rand Merchant Bank Rand Merchant Bank Rand Merchant Bank ABSA Capital Citibank Standard Bank Standard Bank Nedbank Capital Avior Capital Standard Bank ABSA Capital Tradition Tradition Avior Capital Peregrine Securities Prescient Securities Robinson Mulder de Waal Rand Merchant Bank ABSA Capital Rand Merchant Bank Rand Merchant Bank ABSA Capital Rand Merchant Bank










QUALITY EXECUTION, INNOVATIVE RESEARCH Execution and Research across Asset Classes: Equities, Derivatives, Fixed Income and FX. Proprietary Excel Research Portal and Financial Toolkit (GEARS). For more information, contact us at or visit


Prescient Securities is a proud participant of ASISA BEE Stockbroking Enterprise Development Initiative


RMB IS THE OVERALL WINNER AT THE JSE SPIRE AWARDS 2017 As Solutionist Thinkers we know the power of collaboration, of approaching every opportunity with a can-do mindset, tenacity and resilience. This is what enables us to create tailored solutions for our clients. Being recognised as the JSE Spire Awards’ Best Fixed Income and Currencies House, Best Forex House and Best Interest Rate Derivatives House, as well as eight other sub-category firsts, has brought us a renewed sense of pride.

Rand Merchant Bank is an Authorised Financial Services Provider




30 November 2017

FERDI BOOYSEN Head of Financial Planning and Business Services, Old Mutual Wealth

What’s keeping financial advisers up at night?


he South African financial planning industry has evolved significantly over the past two decades. This can be attributed to a variety of factors, namely the rise of the digital revolution, tightening regulations and the increasing professionalism of the trade, which have all resulted in the centre of power having shifted dramatically over time. The bottom line is that people’s financial lives are becoming increasingly complex – from managing current cash flows to saving for retirement and selecting applicable health care and insurance solutions – and the industry must continually evolve in order to keep up. Furthermore, with the advent of modern technology, information is now only a few clicks away at any given moment, placing the customer squarely in the driver’s seat. Despite the plethora of alternative sources of advice available online, many South Africans still look to their adviser before making their most important financial decisions. However, in return, clients want more than just information – they want to feel valued as customers as well. They’re expecting personalised advice and easy implementation of financial solutions. Retail Distribution Review (RDR), considered both a threat and an opportunity by the financial planning industry, is forcing many financial advisers to adapt by re-evaluating their business models. As it’s no longer about finding customers for financial products, but rather developing unique solutions for clients, these professionals are having to rethink how they market themselves and their offering. When it comes to earnings, in the past, there were typically three groups of financial advisers in the retail market: those who earned predominantly up-front commissions from product providers, those who earned predominantly on-going fees from clients or on-going commissions from product providers, and a combination of the two. Post RDR, there will be different types of fees that a financial adviser can charge, and for which they need to demonstrate added value to the client. For the first group of mainly up-front commission earners, RDR is a real threat to their current business model. They will have to diversify their practice earnings to on-going fees to ensure that the proposed reduction in up-front commission on risk and savings products does not halve their income. This means that risk-only brokers will need to start giving advice on investments, short-term insurance, employee benefits and health care in order to build a book of business that will provide them with an annuity income as well. This may be a daunting task at first, as product implementation, product advice and financial planning will require different skill sets and processes within the adviser's practice, with

increasing overheads the more comprehensive the financial advice. There are, however, companies like Old Mutual Wealth that can assist brokers with their advice and investment philosophies to ensure that their clients get quality investment advice and service. On the other hand, financial advisers who currently charge on-going fees on investments will, in the future, have to meet the minimum standards for the Financial Planner designation if they want to charge financial planning fees. If a financial adviser does not want to qualify, or is unable to qualify as a Certified Financial Planner (CFP), they may consider appointing a para-planner with the CFP designation in order to prepare financial plans in the practice post RDR. Either way, this will impact the level of ongoing fees that can be charged by the practice. This is where the depth of client relationships is a critical enabler. When it comes to financial planning, one can either plan for the money, or plan for the person. Both approaches will ensure that the technicalities of financial planning are covered, but the latter will lead to far richer client engagements, and build a solid foundation of trust between an adviser and their client. The positive outcome of these imminent changes is that the RDR will provide financial advisers with the opportunity to clearly articulate the value they add to their clients, since services will be clearly separated into implementation, product advice and financial planning. There will also be additional opportunities for savvy financial advisers and planners to offer value adding services, such as financial coaching and money management. If you have to make changes to your practice, you may as well build the practice that you have always wanted. Old Mutual Wealth is uniquely positioned to assist with deepening client relationships through its team of Financial Planning Coaches, (who are both accredited integral coaches as well as Certified Financial Planners), and supports financial advisers in better articulating their offering throughout the various steps of the financial planning process. Old Mutual Wealth (“OMW”) is an elite service offering brought to you by several licenced Financial Services Providers in the Old Mutual Group (“the Old Mutual Group”). This article is for information purposes only and does not constitute financial advice in any way or form. It is important to consult a financial planner to receive financial advice before acting on any information contained herein. OMW, the Old Mutual Group and its directors, officers and employees shall not be responsible and disclaim all liability for any loss, damage (whether direct, indirect, special or consequential) and/or expense of any nature whatsoever, which may be suffered as a result of, or which may be attributable, directly or indirectly, to the use of, or reliance upon any information contained in this article.

Twin Peaks to assist low income earners


he Financial Sector Regulation Act 2017 was recently signed into law. Also known as the Twin Peaks Bill, the legislation will see financial sector conduct overseen by two separate regulators. The implementation of this model aims to strengthen South Africa’s approach to consumer protection and create a more resilient and stable financial system. This will have significant implications for the financial sector and, in particular, the insurance industry. “This is referred to as the Twin Peaks Bill because it introduces two regulatory bodies for the entire industry,” explains Johan Ferreira, African Unity Life’s Chief Legal Advisor. “The current FSB dissolves and is replaced by the Financial Services Conduct Authority (FSCA) that’s responsible for monitoring the conduct of all financial services companies, overseeing how they interact with consumers so that customers are treated fairly. “The Prudential Authority (PA) will be established within the South African Reserve Bank and will be responsible for supervising the safety and soundness of financial institutions.” This draws on lessons learned from the 2008 global financial crisis including ensuring that large financial institutions are financially stable.” According to Ferreira the Act is the first piece of legislation in a phased approach that will see a great deal of new legislation being promulgated such as the Insurance Bill, which will give birth to formalised micro insurance in South Africa. “Microinsurance is supposed to offer risk protection to the poorest members of our society,” he says, “however, it is currently not specifically regulated in South Africa, which exposes these customers to additional risk as well as unscrupulous providers and practices. “Providers will have to apply for a microinsurance licence and certain criteria, like a minimal capital adequacy requirement, will have to be met to apply successfully.”

Johan Ferreira, African Unity Life’s Chief Legal Advisor


30 November 2017

DR DES LEATT Skills Specialist, Compli-Serve SA


Are you properly fit?


he revised Fit and Proper requirements – though somewhat delayed in implementation due to the wealth of comments the Financial Services Board (FSB) received, see some potentially significant changes ahead in how Financial Service Providers (FSPs), Key Individuals (KIs) and Representatives will have to operate to comply. While there are various factors to face, three key aspects should be considered now. Good standing New to the Honesty and Integrity concept is Good Standing, which effectively covers personal character, good standing and competence. Good standing can be viewed as the application of honesty and integrity. We should all know it when we see it, but in the corporate world KIs and representatives will need to apply their mind as to how best convince the Registrar or a prospective FSP that they are indeed of good standing. The FSB now also requires that personal character and good standing apply to corporate identities, demonstrated through the FSP's corporate behaviour as well as the personal behaviour of its KIs and directors. In addition, there are now some 18 incidents that indicate if someone is dishonest or lacks integrity or good standing. The seriousness of a person’s conduct, its relevance and the passage

of time since the incident are all factored into this assessment. Full and prompt and accurate disclosure of anything relevant to the FSP, or FSB is essential. CPD Undertaking Continuing Professional Development (CPD) training will be required where it is likely that the minimum standard will be six hours, up to a maximum standard of 18 hours within an annual cycle. Evidence to prove that CPD points were attained will have to be provided – so it would be best to keep track of CPD activities as they happen. CPD points can only be awarded by professional bodies and the context must contribute to professional knowledge, addressing identified needs or gaps. Class of Business and Product Specific Training An FSP must ensure that it, its key individuals and representatives, prior to the rendering of any financial service, are proficient and have completed adequate training in the class of business in which that product falls; and that the financial product knowledge, including any amendments, has been assessed and trained for accordingly. Qualified advice is, of course, essential and possibly the most popular change in terms of regulatory examination requirements is that key

It pays to be working with a prepared team.


individuals no longer have to write and pass the RE5 regulatory exam. They must of course write, as well as pass, the RE1 Exam, in addition to applicable RE3 or RE4 exams. It will also now be possible for an FSP that is currently authorised to render financial services in respect of Long-Term Insurance B1, B2 or Short-Term Insurance Personal lines, to render financial services in respect of the proposed new financial product subcategories, provided the FSP applies within two months after the commencement date of the new Fit and Proper requirements. There are many more requirements and conditions to consider in order to be compliant. For your business to be properly fit, seeking compliance support would be a good exercise to consider.



BARBARA MUNDELL, CFP® Technical Specialist, Financial Planning Institute of Southern Africa (FPI)


he new Financial Sector Regulations (FSR) Act was signed into law on 21 August 2017. However, no commencement date has been announced as yet. This now paves the way for the two regulators to be established; namely the Market Conduct Regulator that will in turn replace the current Financial Services Board (FSB) and the Prudential Authority, which will see the Reserve Bank taking the prudential role in the financial services sector. It has now become clear that we are moving from rules-based regulation to outcome-based regulation. This leaves a much bigger responsibility on financial service providers (FSPs) to ensure that they will be able to prove that the processes they follow are compliant with the new regulations.

30 November 2017

Prepare to adapt to new changes protected at all times. For an FSP to succeed in the new environment, it will need to ensure that it has a properly constructed value proposition that can be articulated clearly to the client – a value proposition that holds value to a client and ensures that the client is willing to pay for the advice and services received.

FSR Act FSPs should start as soon as possible to assess their current practices against the FSR Act, ensuring that they are ready to comply as soon as the implementation date is announced. This includes relooking at all contracts they have with representatives and ensuring that they have updated their internal debarment process and procedures, as this area has Ombud system completely changed in the new National Treasury has released FSR Act. FSPs should ensure that WE ARE a consultative document on they have proper documented the proposed Ombud system. processes on appointments, MOVING FROM Currently we have two Ombud complying with the fit and proper RULES-BASED authorities which report to the requirements – and have made REGULATION TO Minister of Finance. The FSR Act provision for the development of will see the Financial Services OUTCOME-BASED their representatives. Conduct Authority (FSCA), Furthermore, FSPs will need to REGULATION together with an Ombud Council consider the current directors’ and a Chief Ombud, supported contracts, the provision for by a Governance Committee, reporting to the liabilities and providing a solution for the Director General of National Treasury. inherent risk relating to professional There has been a lot of concern regarding the indemnity and liability structures. They funding of these new Ombud schemes. will also need to review contracts with key individuals to ensure that the Clients’ rights processes in place are compliant Businesses in the financial services sector, and are not simply a tick box including product providers and providers of exercise. There should be a advice will need to ensure that their businesses proper training register are client orientated and clients’ rights are and a documented

development plan for every representative detailing how they will comply. Licencing requirements Lastly, FSPs should consider the new licencing requirements as provided for in the FSR Act. There are changes to the licence categories and FSPs might find themselves in a situation where additional licences may be required for the services they are currently offering.

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30 November 2017

Generating satisfactory returns for clients

A little knowledge is a dangerous thing. So is a lot.” – Albert Einstein. The quote above is extremely apt; especially today, when many investors are concerned about where future returns will come from. Locally, political uncertainty, financially depleted stateowned enterprises and weak GDP growth remain top of mind. Globally, the dominant narrative is that the prolonged era of accommodative monetary policy in developed markets is gradually coming to an end. The result will see the normalisation of bond yields (ie capital losses for bond investors) and the end of the steamy equity bull market. Or so the story goes.  Against this background, how can advisers generate satisfactory returns for their clients?   Not by knowing a lot… Trying to understand each and every possible market driver and building multivariate regression models to predict security prices would be one way to approach the problem. However, this can be dangerous. It is very hard to predict the future, and equally as hard to predict the impact of future events on security prices. Probability theory teaches us that multiplying two unlikely success rates results in an even lower hit rate.   … but also not by knowing only a little  Another approach would be to buy an index or a basket of stocks that seem to be running and are widely held. This hedges your bets in terms of relative performance. However, this approach is dangerous too. In the long run, markets don’t have mercy for the lazy.   The answer is to know a lot about investments that match your specific criteria  A good starting point is to focus on the equities or bonds of companies that are managed by capable individuals and have some kind of protection from ruthless free market forces. Having identified such opportunities, a very rigorous research process must be undertaken to estimate an intrinsic value for the security (share or bond). If its price is below this estimated intrinsic value, it would qualify for inclusion in an investment portfolio.  In this instance, the drivers of future investment returns would be broken down into the following: • Savvy management teams allocating capital to opportunities that deliver good returns and drive profit growth • The leveraging of economic moats (competitive advantages) that allow companies to increase revenue by more than costs and thereby grow profits faster than GDP • The rerating of security prices towards intrinsic value   (Share prices are driven higher by greater profits and/or movements towards fair value, while bond returns are obtained from regular coupons and/or movements of bond prices towards fair value.)   There is also a fourth important driver of returns: the practice of rotating into cash when securities become fairly priced or marginally overvalued, so that when undervalued securities become available, there is money on hand.

CLAUDIA DEL FANTE Business Analyst, Allan Gray, and RADHESEN NAIDOO Business Analyst, Allan Gray

Taking a balanced approach to managing risk


here many investors define risk as the volatility of returns, or the risk of looking different, Allan Gray’s focus is always on avoiding permanent loss of capital. However, the risk of capital loss varies considerably between unit trusts and generally, for a higher risk of loss, you should expect a higher long-term return from an investment. “When choosing a unit trust, you need to balance the return you require to meet your objectives, the risk of loss you can afford to take, and the risk of loss that you are comfortable with. This may involve a tough trade-off between your objectives and your comfort with risk. But it is better to make a considered decision at the beginning and to stick with it than to be surprised later and shaken into disinvesting at the wrong time,” says Claudia Del Fante, Business Analyst at Allan Gray. “Once you are invested, your unit trust portfolio managers will be working hard on your behalf to manage risk and return within the fund, and your job is to give your investment the time it needs to deliver on your plan,” she adds.

The risk and return conundrum In theory, the more risk you take, the higher the expected investment return, but more risk also means a wider range of possible outcomes. So if you choose an equity fund, you can expect to achieve a higher return over the long-term than in a balanced fund, but you should also accept that there are periods when this does not occur. Radhesen Naidoo, Business Analyst at Allan Gray explains that the first part of the portfolio manager’s job is to invest in securities that individually offer the best trade-offs available between risk and return. “Allan Gray’s investment philosophy is to invest in a basket of assets that are trading below what they are intrinsically worth, and to be concerned with the risk of losing capital and not the risk of being different. Our portfolio managers combine many individual investments, each driven by different risks and opportunities, into unit trusts, managing the overall risk of loss and upside potential in each. Focusing on fundamental business risk and not the latest share price action may result in short-term periods of underperformance, but we believe that excessive focus on short-term volatility can be distracting,” he says. Naidoo explains how risk is managed in the Allan Gray Balanced Fund. “The Fund is constructed using a bottom-up investment process. The portfolio managers build the portfolio from a blank sheet of paper, based on the relative attractiveness of individual securities across various asset classes. Each individual security goes through an extensive research process to assess the expected return over a minimum four-year term relative to downside risk. Every individual investment idea – e.g. a South African government bond, a commodity ETF or a Sasol share – is competing for a place in the portfolio. The asset allocation is the result of the extent to which individual securities are found most attractive relative to one another,” Naidoo notes, adding that during periods where valuations move to extremes, the asset allocation can be more dynamic to protect investors. While investors could construct their own portfolio, a balanced fund hands over the decision of choosing between different asset classes and securities to experienced professionals. “In December 2015, during the ‘Nene-gate’ debacle, SA banking shares sold off sharply while rand-hedge shares, such as British American Tobacco (BAT), performed relatively well. We had to decide whether to reduce exposure to the rand hedges and take advantage of the cheaper price of banks. Meanwhile, selected resource shares had also become attractive as their prices fell in rand and US dollar terms, as commodity prices and the rand weakened. At the same time, investing in government bonds offered investors a guaranteed nominal return of 9% over 10 years. This gives a good sense of the complex decisions investors may face,” Naidoo adds.


PAUL BOSMAN Fund Manager, PSG Asset Management




30 November 2017

Where to find quality companies


ost local investors have realised that they need some offshore exposure in their portfolios. While this may be partially due to political uncertainty at home, the main reason for investing abroad is that while South Africa has some top class companies listed on the JSE, there are some industries, technologies and markets that our local bourse just doesn’t cater for. If South African investors wanted to invest in the Pharmaceutical Sector on the FTSE/JSE, they would have only three companies to choose from: Aspen, Ascendis and Adcock Ingram. Within global markets, they would have more than 60 pharmaceutical companies in which they could invest – and that is just on the London Stock Exchange alone. In addition, equities in the first world are – at present – well-priced relative to bonds and cash. So where should one invest? Equity markets have been affected by a growing trend of shorttermism. Companies are under pressure to deliver short-term financial results due to a greater emphasis on quarterly earnings, share price movements and market activity. There are, however, funds – like the Investec Global Franchise Fund – that look for quality companies that operate in stable, growing industries, with low sensitivity to market cycles. These companies don’t subscribe to short-termism. According to Clyde Rossouw, coHead of Quality, and Danielle Lavan, Product Specialist at Investec Asset Management, quality companies are most often found in the consumer staples, healthcare and technology sectors. “This is where the Investec Global Franchise Fund is primarily focused, and it is these consistent businesses that we label ‘quality’.” Investec Global Franchise Fund's key holdings   Healthcare giant Johnson & Johnson touches the lives of over a billion people every day across the globe. “The 131-year old company is the largest holding in our portfolio, and one of our greatest compounders. The

business dominates global healthcare, with 70% of its sales in either number one or two market share position,” they say.    Technology heavyweight Microsoft Corp, which was first purchased by the Global Franchise Fund in February 2011, is one company whose success can be attributed to its dynamic approach to innovation. It has evolved from the historical focus on Windows and onpremise licence applications to a

make payments in real time. Visa’s advanced processing network is capable of handling more than 65 000 transaction messages a second. With $8.9tn worth of transactions recorded in 2016, the company is looking to gain a foothold in China and expand its European network. Its economies of scale, technological innovations and global reach give it a competitive edge to sustain consistent returns for shareholders over the long term.

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cloud-centric and mobile-enabled company. Microsoft is concentrating its efforts on higher value, recurring revenue cloud and Office365/ Windows 10 subscription solutions to increase sales and profits. These changes will enable Microsoft to better monetise a user’s lifetime, upsell additional functionality, and integrate Office with other cloud services. Currently, more than 1.2bn people across the globe use Microsoft Office and 80% of Fortune 500 companies are on the cloud.   Visa Inc., one of the largest retail electronic payment networks in the world, is also one of the fund’s top ten holdings. It has 44m merchant locations globally, enabling its 3.1bn Visa credit card holders to

The world’s largest online booking portal, Priceline, is another key holding. The company owns a host of websites for booking accommodation, rental cars, restaurants and other related services. These include, Kayak,, Agoda and OpenTable., a major generator of Priceline’s profits, offers more than 1.3m properties worldwide and its consumers book over 1.4m room nights every 24 hours. Rossouw and Lavan see these capital light companies as being able to invest more heavily in research and development as a percentage of sales, driving product innovation and improving brand awareness and loyalty.

BlackRock Greater Europe Investment Trust Meanwhile, BlackRock will offer South African investors exposure to blue chip companies in Europe. The asset manager has revealed its plans for a potential secondary listing of its Greater Europe, equities-focused, investment trust on the Johannesburg Stock Exchange (JSE) via the JSE’s fast-track listings mechanism. BlackRock Greater Europe Investment Trust plc (BRGE), which currently has a market capitalisation of £313m (R5.5bn), has a primary listing on the London Stock Exchange, where it has been listed since 2004. A local listing of BRGE would provide qualifying SA investors with the opportunity to invest directly on the JSE into an investment trust which aims to provide capital growth, primarily through investment in a focused portfolio constructed from a combination of the securities of large, mid and small capitalisation European companies, together with some investment in the developing markets of Europe (eg Russia and Ukraine). The strategy of BRGE is to identify companies with strong management teams and high growth prospects that have high barriers to entry in their chosen markets.    BRGE is managed by the BlackRock European Equity Team, which consists of 20 portfolio managers and sector analysts, managing a total of £31.9bn across various investment strategies. The investment team is optimistic about regional growth prospects and is identifying attractively valued opportunities.  BlackRock’s representative office in South Africa opened in 2012 and is focused on providing South African institutional clients exposure to a wide range of global asset classes and investment strategies including global equity, fixed income and multi-asset solutions. BlackRock is committed to expanding its offering to the institutional and retail investment community in South Africa. The listing is planned for the end of November, subject to generating a minimum level of demand.  PSG Capital are acting as corporate advisers and sole bookrunner to BlackRock Greater Europe Investment Trust plc in South Africa.


30 November 2017

DUNCAN SCHWULST Portfolio Manager, Prudential Investment Managers


nvestors will soon have four indices to choose from as benchmarks for their listed property investments. The new SA REIT (Real Estate Investment Trust) Index, All Property Index, and Tradeable Property Index will join the existing SA Listed Property Index (SAPY), all with somewhat different characteristics that may offer some modest variations in risk and return for investors. The new SA REIT Index provides focused exposure to the South African property market, with all foreigndomiciled property companies excluded. Comprised of approximately 15 companies, Growthpoint should dominate the index with a weight of around 24%. This makes it the most concentrated of the index options. At the same time, we estimate it will have a foreign exposure of approximately 20% – the lowest of the four indices. While these factors make it the most ‘risky’ of the index choices (as measured by its standard deviation), there is an upside: the SA REIT index may have the potential to produce slightly higher returns than the current SAPY due to its greater weighting to SA property, to which we assign a higher property risk premium (and therefore greater return potential) than offshore property. The All Property Index offers the widest diversification, expected to incorporate all 29 property companies in the All Share Index and an estimated offshore exposure of 42% (the highest

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New choices for investors in listed property among the indices). Due to its higher offshore exposure, its potential returns may be slightly lower than the current index. However, its greater diversification means it is likely to be less risky as well. And with more stocks included, active investment managers will have more opportunities to add value through their specialist knowledge. The Tradable Property Index excludes the 15 smallcap companies whose shares are less easily tradable, leaving it with an estimated 14 large and mid-cap property companies in order to create the most liquid index possible. Our research indicates it is likely to be two to three times more liquid than the other indices. Like the All Property Index, it may have slightly lower potential returns than the SAPY and SA REIT Index – again because of its higher foreign exposure, estimated at approximately 44%. This then adds to its diversification, making it potentially less risky than the SAPY. However, its smaller number of constituents adds to single stockspecific risk compared to the All Property Index. Which index to select? Investors wanting more focused South African property exposure with its slightly higher-yielding returns for income purposes may opt for the SA REIT Index. The exclusion of property developers with their higher risk profiles and lower distribution pay-out

ratios could also be appealing for many. Others, meanwhile, may prefer the broadest possible diversification offered by the All Property Index. Its potential for marginally lower returns compared to the SAPY could very well be offset by the diversification advantages it provides, giving South African investors valuable exposure to potentially faster-growing markets offshore – and importantly without having to use their offshore allowance. Larger investors may choose the Tradable Property Index for the extra liquidity it provides, so that they are able to trade into and out of the asset class easily. Some may also want to avoid the extra risks that come from investing in small-cap property stocks with less diversified property portfolios. And still others may want to stick with the existing SAPY as a wellunderstood benchmark with a consistent methodology, approach and a long track record that combines characteristics of all of the new indices to represent a solid ‘middle of the road’ option. No matter which index one chooses, the addition of listed property to an investment portfolio offers significant diversification benefits for South African investors, as well as the potential for inflation-beating returns. For example, for the 10 years to 31 August 2017, the Prudential Enhanced SA Property Tracker Fund has returned 14.7% p.a. (net of fees) for its investors.

2017/10/13 3:06 PM


30 November 2017

SEEISO MATLANYANE Portfolio Manager, Prescient Investment Management

Different themes drive the market at different times




Sculpture by Beth Diane Armstrong

he cornerstone principle to investing in equity markets is uncertainty and the larger the uncertainty the larger the potential reward. By investing one assumes risk. This is why at Prescient, we consider whether or not the risk being assumed has proven to offer the commensurate reward overtime. Our quantitative approach focusses exclusively on this uncertainty and specifically evaluating the risk that we are taking on when making investments. Instead of trying to project or forecast the future performance of a company, we try and determine what risks drive the share performance of the company and if these are risks that we are willing to expose our clients’ funds to given current market conditions. The core of our analysis, therefore, is in determining those factors that systematically drive returns and how best to measure and exploit them.  There is extensive literature with comprehensive behavioural and economic reasoning for Value, Momentum, Growth and Quality, among others, as systematic drivers of return, or risk factors. Using Momentum as an example, a quantitative analyst would first try and determine the best way to define and measure Momentum. Suppose we can either define Momentum as net income growth or share price appreciation over the preceding year. One of the simpler ways to determine which is best would be to take a given universe and simply rank each share based on each measure, then create equally weighted portfolios consisting of the higher ranking shares and the lower ranking shares. If this is done on a periodical basis going back in time, the performance of the higher-ranking portfolios for both measures can be compared to determine the best definition. To avoid cherry picking the best measure, however, the quantitative analyst will typically average across the measures. Having found a suitable measure for each factor, the analyst will quantitatively determine which of the factors most explains current market performance. What we have found is that just as the bulk of active returns can be attributed to asset and sector allocation, rather than specific stock selection, active performance within equities can be explained largely by factor allocation. Typically, a regression model is utilised to determine the extent to which the market performance is driven by each of the risk factors.  So, by tilting a portfolio towards those factors or risks that are paying off, the likelihood of outperforming the market is maximised. The quantitative manager’s dilemma at this point is to construct risk-managed portfolios that are tilted towards those risks that are offering the appropriate rewards and tilted away from those that are not. Again, the analyst will have a choice from various factor rotation models that can be used to this effect.  In addition, we will perform, albeit to a lesser extent, similar macroeconomic and political analyses as a fundamental analyst to ensure that the portfolio is insulated from severe underperformance by screening out blatantly bad or volatile investments. This can range from screening out shares that are not sufficiently cash flow generative, or are illiquid to trade, or have material governance issues, or those that derive their earnings from regions subject to material political or economic shocks.  By doing this we ensure that we systematically exploit factors that have proven to work overtime and that are currently in favour, while avoiding those that are out of favour. This approach allows us to slowly but consistently outperform as we are not confined to a particular investment style.  Prescient Money Mktg 1-4 Tortoise Ad_r3.pdf 7/19/17 10:29:17 AM

A behavioural approach wins the Nobel Economics Prize Many financial advisers now realise that the behavioural coaching of clients is an important aspect of their jobs. Behavioural economics has been around for a while and simply put, it is based on the idea that human beings are irrational and make decisions based on a number of biases. These decisions aren’t best for them – based on what rational behaviour predicts and they may need gentle ‘nudges’ towards making better decisions. This year, the royal Swedish Academy of Sciences awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017 to Richard H Thaler of the University of Chicago, ‘for his contributions to behavioural economics’. Thaler – regarded by many as one of the founders of behavioural economics, is best known for his book entitled Nudge. The Nobel committee said that Thaler had, “Incorporated psychologically realistic assumptions into analyses of economic decision-making.” “By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes.” Image:Niklas Elmehed. Copyright: Nobel Media AB 2017


Richard Thaler




At Prescient, we’re in it for the long run. In fact, our first clients are still


our clients. They trust our proven, pragmatic approach; something we call


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30 November 2017

CHRIS RULE Capital Markets Executive, CoreShares

Harvesting sources of return at low cost

CoreShares partners with global leader in Smart Beta: EDHEC-Risk Institute Scientific Beta


mart Beta as an investment approach has grown appreciably over the last decade. This approach is able to mimic investment styles which would previously have been left to active managers to implement. Take the ‘Value Investment Style’ as an example – buying stocks below their intrinsic value as scored by a variety of metrics; high book to market, earnings yield, price earnings etc. This popular type of ‘active’ investment style can now be captured using a rules based index approach. To quote the Financial Analyst Journal (Khan & Lemmon 2016), “What is new about Smart Beta is not the (investment) idea – but the simple and transparent packaging. Carving out and lowering the cost of one significant component of active management.” The need for a Multi-factor approach In the world of Smart Beta (or ‘factor’ based investing), Value is considered as one of the proven factors together with: Momentum, Low Volatility, Quality and Size. While empirical evidence supports the success of long term allocation to single factors, what typically arises when investing in any of these individual factors (or active investment styles) is that the returns tend to exhibit cyclicality relative to the market cap weighted benchmark. For example, on a cumulative basis, Value outperforms a market cap weighted index over 40 years. However, during that period, it only outperforms 53.12%* of the time on a five year rolling basis. This dynamic is similar in other proven factors. Given the cyclicality of individual factors, it becomes very difficult for clients to allocate to these investments for fear of underperformance. To help solve this, CoreShares embarked on a thorough assessment of Multi-factor indices – which combine the proven factors together into one all-encompassing index. Such an approach aims to achieve the best combination of proven factors without risking over-exposure to an individual factor and thereby reducing cyclicality.


Rolling Period Returns (1)

5 Year

3 Year

Number of Rolling Periods

123 periods over 15 Years

147 periods over 15 Years

Multi Factor return relative to:

Multi Factor periods of out-performance

Multi Factor periods of out-performance




Top 40



Source: FTSE/JSE and ERI Scientific Beta. Return Series from 01 July 2002 up to 31 August 2017.


Introducing Scientific Beta Scientific Beta is a commercial index house established by the highly reputable EDHEC-Risk Institute. The EDHEC-Risk Institute was one of the very first academic institutions in the field of fundamental and applied research for the investment industry. Scientific Beta is a beneficiary of the vast quantitative intellectual property developed within EDHEC which is now made available through Scientific Beta’s Multi Factor Indices. As a direct response to the aforementioned predicament faced by many clients, CoreShares commissioned ERI Scientific Beta to create the CoreShares Scientific Beta Multi-Factor Index.

This is a South African highly liquid multi-factor index incorporating six academically proven factors using multiple weighting strategies. The solution is suitable for investors looking to replace an active allocation with a low cost, rules based, multi factor equity solution. A key benefit of this replacement is in smoothing the cyclicality of returns that is typically associated with individual factors or active styles. The fund launched on 1 October 2017 at a management fee of 0.4% (ex-VAT). *Source: Scientific Beta Multi-Smart Factor Indices: An Introduction — February 2017 (Uses US data)



30 November 2017

Digital transformation in the investment industry “Rather than digital replacing people, they will work hand-in-hand as part of the omnichannel experience.” - Dean Butler, Head, Retail Wealth, HSBC


he convergence of digitisation, globalisation, and consumerisation will reshape the investment industry by 2022. For most executives, the question is no longer if the industry will go through a digital metamorphosis, but when and how they can ensure their organisations are not left behind. ​According to a report published last month by Roubini ThoughtLab, a leading global research firm, investment providers that go fully digital will see major gains: firms in later stages of digital transformation report increases of 8.6% in revenue, 11.3% in productivity, and 6.3% in market share. Digital laggards stand to lose $79m per billion dollars of revenue a year – and risk falling out of the race altogether. ​The new report, titled Wealth and Asset Management 2022: The Path to Digital Leadership, provides actionable insights into the industry’s future. It is based on a survey of 1 503 investment providers from 15 countries, advisory panels and in-depth interviews with over 100 industry leaders and experts, and rigorous benchmarking analysis. The research was conducted in conjunction with a diverse coalition of sponsors, including Appway, Broadridge Financial Solutions, Cisco, eToro, J.P. Morgan Asset Management, Oracle, Protiviti, Sapient Consulting and the Vauban Group. ​ The CEO digital imperative ​The research shows that digital transformation is now at the top of the agenda for industry CEOs, who are facing escalating demands from investors and an anticipated $30tn generational wealth transfer. The speed of change has been remarkable. While in ThoughtLab’s 2016 investment industry study, 24% of CEOs said that digital transformation was unimportant or slightly important, nearly all industry CEOs (96%) surveyed this year now view digital transformation as central to their business. ​According to the research, 99% of investment providers are now in the process of digital transformation. About a quarter of firms are just beginning their digital journey, almost half are transitioning, and slightly over a quarter are maturing. Only 2.3% of firms emerged as digital leaders, defined as companies that have used digital technology to transform their processes, products, and customer interactions. Over the next five years, 20% of firms expect to be digital leaders, and a further 47%, digitally mature.  ​ Investor expectations are changing faster than firms can react ​Investment firms report rising demands for product simplicity/transparency (49%); anytime, anywhere, any device access (45%); robust cybersecurity (43%) and more innovative products (32%). But with Silicon Valley setting the pace for digital innovation, investment firms will struggle to keep up. For example, the survey shows that 80% of retail banks are now behind on smart beta; 71% of broker-dealers are not ready for fintech; and 50% of asset managers are not prepared for holistic goal planning.


​“Investors no longer compare investment providers just against their financial peers, but against Amazon and Google,” says Lou Celi, CEO, Roubini ThoughtLab and the director of the research. “They want the same level of customer-centricity, transparency, and ease of use that they have come to expect from the retail and technology sectors.” The hallmarks of a digital leader ​To thrive in the coming industry shakeout, firms will want to position themselves as digital leaders. The research showed that digital leaders excel in seven key ways.


A digital vision and business case: 97% of digital leaders identify future growth areas from digital innovation and 85% ensure close coordination between digital and business teams.


A cogent digital transformation plan: 82% execute a full digital transformation of their business and 77% develop a properly staged road map to digital leadership.


A culture of innovation: Digital leaders foster a culture of innovation (85%), encourage the cross-pollination of digital ideas (79%), and reward intrapreneurship (77%).


A customer-centric mindset: Digital leaders are customer-obsessed. The survey shows that 91% focus on analysing customer expectations and 88% put the customer at the centre of innovation.


An agile product development process: Digital leaders strive to shorten times to market (85%) and adapt products to meet evolving customer digital needs (82%).


Early adoption of advanced technology: 94% harness analytics throughout their businesses, 88% have a range of fintech capabilities, and 85% have systems for tracking emerging technologies.


A digital team to drive change: 94% of digital leaders provide digital business training, 79% create dedicated digital groups, and another 79% are creative in attracting and retaining staff. ​ Staying ahead of the technology curve The report shows that cloud platforms will become essential for driving digital innovation by 2022. About 59% of digital leaders will replace their legacy systems with cloud platforms. This will make it easier to embrace game-changing technologies, such as artificial intelligence (AI), blockchain, robotics, cryptographic technology, and APIs, which are all poised for high growth among investment providers. ​The report indicates that digital leaders are well ahead of others in creating a seamless customer experience. The majority are taking steps to adapt the channel mix to support their customers digital behaviours, providing easy 24/7 access through any device, and leveraging data and analytics to fully understand their clients’ needs and behaviors. Digital client onboarding is fast becoming the norm: 43% of firms now offer it, and the number will rise to 69% by 2022.

Coins launched to mark birth centenary of Oliver Tambo In commemorating the birth centenary of Oliver Reginald Tambo, SA anti-apartheid politician, the SA Mint – a subsidiary of the SA Reserve Bank – has produced a R5 circulation coin and a series of collectible coins under the theme ‘Freedom, Democracy and Culture’. The new coins bear the ‘Order of the Companions of OR Tambo’, which was instituted in 2002 to honour international heads of state and eminent people for their friendship to SA. The elements of the Order feature prominently on the new R5 circulation coin, resoundingly acknowledging his contribution to the struggle for equality.  The new R5 coin, worth its face value, entered into circulation on 1 October 2017 and the other collectable coins are available from the SA Mint. The SARB encourages the public not to hold on to the circulation coins, when they receive them as change, as commemorative coins are made to be appreciated by everyone.  The collectable coins depict OR Tambo during his youth and presidency of the African National Congress. The four-coin set consists of a 1oz pure gold R500 proof coin, a 1oz sterlingsilver R50 proof coin, a base-metal R50 non-circulating legal tender coin and a R5 commemorative circulation coin. The three-coin set does not include the gold proof coin.


30 November 2017

Are investors confused about passive strategies?


believes that many investors may have been lulled into a false sense of security and demonstrated unfounded beliefs in the virtues of passive investments. “It appears that while investors may recognize index investments deliver market returns, less fees, when indexes are up, they apparently fail to understand that they also deliver commensurate losses when markets are down.” Professional investors According to Natixis, the views on passive investments by individuals contrast starkly with those of professional investors. “In comparing the strengths and weaknesses of active and passive management, investment professionals see clear advantages for active managers in terms of generating risk-adjusted returns (66%). They also give the nod to active for taking advantage of short-term market

movements (73%), as well as providing exposure to both non-correlated asset classes (73%) and emerging market opportunities (75%). Institutional investors see similar advantages, adding views that active management is the choice for environmental, social and governance (ESG) (75%).” The survey suggests that professional investors also find that individuals may have ‘a blind spot’ with passive investments. Three-quarters of institutional decision makers believe individuals are ignorant of the risks of passive investing, while almost the same number (76%) see individuals as being too short-term focused. Closet trackers Natixis finds that in spite of the confusion, investors do – in the end – look to asset managers for help, as two-thirds of investors say they prefer to have an expert find the best opportunities in the market. More than two-thirds of those

surveyed also think that asset managers provide value for money. They do, however, look at parts of the asset management industry with a more critical eye, and are particularly aware of the sins of closet trackers. “These managers charge active management fees and tout active management performance, but offer little value for the money. They deliver benchmark-hugging returns that could be achieved with lower-fee passive products, and should realise that the failure to provide value for the fees charged means failing to deliver on investor expectations.” Two-thirds of investors globally say they expect the mutual funds they purchase will have a portfolio of securities that looks different from the market. “Investors are aware of closet trackers, as three-quarters believe that a lot of active managers charge high fees and deliver only benchmark performance.”


any have turned to passive investments and reaped rewards, Natixis Global Asset Management says in its 2017 Global Individual Investor survey of 8 300 investors across 26 countries. The survey found that 66% of investors believe index funds give them returns comparable to the market, while 58% think passive investment funds are cheaper. Just over 60% of investors believe that index funds can help them minimise losses, while a similar percentage believe that these funds are less risky. Over half of those surveyed believe passive investments can help them access the best opportunities in the market. However, Natixis adds that unfettered growth over the past decade may have masked what it calls ‘the inherent risks of passive investments’ and obscured the potential value actively managed investments may add to a portfolio. The asset management company

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LOURENS COETZEE Investment Professional at Marriott, a boutique of the Old Mutual Investment Group


30 November 2017

What does history teach us about living annuities?

etirement can be a daunting prospect. Not only is it a time of personal adjustment, but it is also a time to make financial decisions that will impact your lifestyle for the rest of your life. Retired investors commonly face the dilemma of either maintaining a certain lifestyle or adjusting it in order to preserve their savings. Typically the more income one draws and spends today; the less is available to create future income. When inflation is added to this quandary, it becomes important to also grow that income over time to retain one’s buying power. Marriott has researched the sustainable levels of income that retirees were able to draw historically, to better understand the difficulties retirees face, and why in retirement you should spend the income and not the capital. Historic analysis of living annuities in South Africa Marriott’s research, using returns for South African asset classes going back to 1900, tested how much retirees could safely draw from their savings without running out of capital for 30 years. We assumed each retiree invested R1m in a typical balanced fund (comprising 60% equities, 30% bonds and 10% cash) and drew an annual income that kept up with inflation. The graph below shows the maximum initial safe withdrawal rates retirees were able to draw and not run out of capital over a 30 year period. Initial safe withdrawal rates have fluctuated significantly over time. Some retirees were able to start with a withdrawal rate as high as 13%, grow their income in line with inflation and still have a successful retirement (capital lasted for 30 years). A closer look at the data revealed that maximum safe withdrawal rates correlated with the first 10 year annual real returns the investor experienced.

Source: Calculations: Marriott, Data: I-Net and Professor C. Firer's studies on the history of capital markets

Marriott has two suggestions for retired investors:


Match the income drawn with the income produced Investors should be aware of how much income their portfolio is generating and try to draw no more than the income produced – thus avoiding capital erosion. Investments that produce reliable and consistent income streams assist investors to avoid capital erosion over time. If an investor can avoid capital erosion they can secure their future income. It is especially important in the early stages of retirement that capital is preserved as far as possible. If investors wish to draw more income than what their investment is producing, it should be with the knowledge that they are eroding their capital. Marriott funds are managed with an income focus – to produce a certain amount of income as well as income and capital growth. This investment style is in contrast to many others where the investments are managed with a capital growth objective. The basis of a capital growth objective is that investment growth will offset the income withdrawals. This appears to work well when capital values are increasing, because capital erosion is masked by the market rise. When markets decline however, the value of the investment will decrease sharply due to the twin effects of an eroded capital base and decreasing capital values.


Source: Calculations: Marriott, Data: I-Net and Professor C. Firer's studies on the history of capital markets

In other words, lower maximum safe withdrawal rates coincided with lower real returns and visa-versa. This seems obvious but the difficulty retirees’ face is that future returns are very difficult to predict. The table (top right) summarises the percentage of retires who failed (failure rates) using different drawdown rates for all 88 retirees with a 30 year investment horizon. A drawdown rate of 6% is common in the marketplace but our research shows that at that rate, almost half of retirees would have failed. The concern for retired investors today is that market returns are expected to be below average for the next decade, due to demanding valuations combined with lower growth expectations. This suggests many living annuities will come under pressure in the years ahead.

Choose investments which produce consistent income streams that grow over time Investors not only need to preserve capital but also need to ensure they protect themselves against the impact of rising living costs over time. Investments that produce a reliable income stream that grows over time, like equities, are critical for a successful retirement as the income produced from these investments tend to grow ahead of inflation. By including equities with a reliable growing income stream, investors will be able to ensure growth in income over time. The trade-off of including equities, however, is that an investor’s portfolio will produce less income initially. Investors need to find the appropriate level of exposure between the different asset classes that will give them enough income and income growth over time. At Marriott, we suggest that investors examine their situation carefully when considering using capital to supplement their income. We strongly urge investors to preserve capital until they reach a stage in their retirement years when it may become safer to drawdown on capital. While investors may find it challenging to restrict their annuity income to the income produced in the current low yielding environment, it is preferable to finding that one’s capital has been partially or even completely eroded. Rather be conservative now than risk having to find another source of income, such as going back to work or having to reduce one’s standard of living at some point in the future.

LB 114415L/4


Joint Boutique Head Old Mutual Global Emerging Markets

We believe that when you are personally invested in something, you are even more driven to make it succeed. That’s why Feroz Basa invests his own money alongside yours. Feroz is a fund manager of the Old Mutual Global Emerging Market Fund and is Joint Boutique Head of the Old Mutual Global Emerging Markets boutique. Emerging markets are fast becoming a driver of global growth and we offer exposure to quality listed companies across a diverse range of global emerging markets. This, coupled with the team’s focus on sound corporate governance and on-the-ground analysis of potential investments, contributes to their success. But this is more than just Feroz’s success, it’s yours too.

Invest now by contacting an Old Mutual financial adviser or your broker, or call 0860 INVEST (468378) and invest where the fund managers invest.

Old Mutual Investment Group (Pty) Ltd is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services ( to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Unit Trust Managers (RF) (Pty) Ltd is a registered manager in terms of the Collective Investment Schemes Control Act 45 of 2002. The fund fees and costs that we charge for managing your investment are accessible on the relevant fund’s minimum disclosure document (MDD) or table of fees and charges, both available on our public website, or from our contact centre. Old Mutual is a member of the Association of Savings & Investment South Africa (ASISA).



PIETER KOEKEMOER Head, Personal Investments, Coronation Fund Managers

Why many retirees need to take on more risk, not less


nvestors in our income-andgrowth funds may feel unhappy with their recent returns, due to a confluence of factors. Firstly, the markets have until recently been going nowhere. Equities, bonds and cash have barely beaten inflation over the three years to end September. Further, with the three asset classes having delivered similar returns (roughly 7% per year) over this period, investors were not compensated for taking on additional risk. This has resulted in a subdued performance over the recent years, which may have been experienced as particularly painful due to an additional factor – unrealistic expectations. Notwithstanding forewarnings from ourselves and other investment managers, many investors did not expect the sharp slowdown in market returns over the past three years. In fact, a recent client survey showed that the return expectations for these funds

30 November 2017

Avoid the postretirement trap

remain on the high side. The survey found that the average expectation of an 11.6% annual return for income-and-growth funds is almost similar to the 12.4% expected for longterm growth funds – an unrealistic assumption given that income-andgrowth funds take on significantly lower risk. In our view, a more realistic return expectation for our absolute return funds is CPI plus 4% (in the case of Coronation Capital Plus) and CPI plus 3% (in the case of Coronation Balanced Defensive). Unfortunately, in the recent past this was a near impossible target to achieve given the mediocre returns delivered by the underlying building blocks.  In reaction, many frustrated investors across the industry have moved their savings away from income-and-growth funds which have exposure to shares (equities). An estimated R20bn has been withdrawn over the past year, and a lot of the money has ended up in more conservative options, including managed income funds and cash deposits. After all, why take on more

risk by investing in shares, if you can get the same level of return from lower risk options? Recent performance provides part of the answer – markets rally when you least expect it. At the time of writing, the 7% average return from equities over three years mentioned above have morphed into 10.4% per year, while cash and bonds are still at 7% p.a. Conservative investors need some exposure to growth assets to be able to maintain their spending power through retirement. Ultimately, we strongly believe that the key risk that more conservative income-andgrowth investors need to avoid – counter-intuitively – is not taking on enough risk.  Also, we see better days ahead for shares. We are more upbeat about domestic equities than we were three years ago when the market was expensive. There are many South African businesses for which the expected returns going forward look better than they have for quite some time. Most of that has to do with

the fact that the base is so low. If our macroeconomic outlook improves just a little bit, and companies are able to improve their topline only by a small WE ARE margin, one can MORE easily expect to see a decent UPBEAT improvement in ABOUT earnings. DOMESTIC Further, investors should EQUITIES avoid falling THAN WE into the trap of WERE chasing returns. They tend to THREE commit capital YEARS AGO when returns have been good and withdraw after they experience a tougher time. We don’t believe this to be an appropriate investment strategy for long-term investors. Ultimately, one requires the patience to look beyond any short-term pain and avoid locking in any losses by selling low and buying high. 

Are you financially prepared for living longer?


e have all heard that ‘50 is the new 40’. It may be truer than you think. The world over, people are living longer. In 1980, life expectancy was 61.7 years, shown in a study published in The Lancet. In 2015, the average person was expected to live to 71.8 years. While longer life is a compliment to positive progress for humanity, it does bring other challenges. Some of them: being healthy while living longer and having enough savings for those extra years in retirement. “Adequate income in retirement has been an ongoing concern with only 6% of South Africans being able to retire comfortably.

Now that people are living longer, they spend as many as 26 years in retirement compared with a previous average of 19 years. This means the funds they have, besides it possibly not being sufficient to cover expenses, may also not stretch far enough,” says Craig Sher, Head of Research and Development for Discovery Invest. People tend to live beyond their means, have debt and leave retirement savings for last. Although longevity is a positive, financial behaviour combined with other knock-on effects of a longer life have to be considered. As people age, they often need additional healthcare. Sher says: “Recent estimates show that by 2050 up to 2 billion people will be older than 65. Where in 2015, there are four people working for every one retired or inactive person, by then two people will be working for every inactive person. People in this age group also use around three times more medicine and healthcare services. The cost of which erodes available retirement savings.” The reality of the gift of longevity is that many will outlive their retirement savings, and will do so in poor health. It is crucial to take action to encourage better health and better savings behaviour to ensure we are equipped for a larger ageing population. “Trends show as many as 2.2 billion people will live beyond 100 by 2050, and based on this trend South Africa will have 10 million pensioners by then. This means there is an urgent need to change the culture around saving and health promotion,” says Sher.

Changing the savings culture South Africans have a poor culture of saving. That has to change not only for the benefit of the individual living longer, but for the economy overall. The vast majority who save, put away less than 8% of their salary and as many as 69% cash out their savings before retirement, according to a 2015 survey. Considering longer life expectancy and increased healthcare needs, you need to put away a reasonable portion of your income and start early. An early start will give your investment the added growth benefits of compound interest. “Careful financial planning with the help of a financial adviser is indispensable, especially for retirement savings. It is advisable to shop around for solutions that can meet extended needs in retirement. There are solutions in the market that offer greater returns and incentives when you look after your health and apply responsible withdrawal behaviour. Options that convert unneeded life cover to retirement funds to support a longer life expectancy are also available,” says Sher.

Craig Sher, Head of Research and Development, Discovery Invest

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30 November 2017

PETRI GREEFF Executive, RisCura

Retirement industry moves toward ‘cradle to grave’ approach


n an industry-changing move, the amended Pension Fund Act regulations which came into effect on 1 September 2017, bring about welcome reforms. But, implementation could pose challenges for trustee boards that are already grappling with limited governance bandwidth. The amendments, also known as the Retirement Funds Default Regulations, have been in the pipeline since July 2015 and were gazetted by National Treasury on 25 August 2017. All new default arrangements that come into operation on or after the 1 September 2017 effective date must comply with the requirements set out in these regulations. Existing default arrangements will be expected to be fully aligned to the regulations 18 months after the effective date by 1 March 2019.  Up until now, retiring members have often selected expensive retirement products and exposed themselves to the risks of uncertain markets. As a result, these members end up with insufficient capital and potentially outlive their planned pension. This is a consequence of not saving enough during their accumulation phase, either due to low contribution rates, lack of preservation, or low returns from expensive investment fees and suboptimal investment strategies. The regulations therefore aim to improve the outcomes for retirement fund members by ensuring that they receive good value for their savings and retire comfortably. Under these regulations, trustee boards will now have to think beyond retirement and consider ‘cradle to grave’ investment goals. They will be required to assist members during the accumulation and the retirement phases of their life. Prior to these regulations, trustee boards were only required to assist members during the accumulation phase. These regulations also resonate with Regulation 28 that requires trustee boards to consider their fund’s liabilities (or in this, case every member’s goals) when investing.  Trustee boards of defined contribution scheme funds, (like the majority of retirement schemes in SA), will have to comply with the

new regulations by formally implementing a default arrangement for current fund members, for those leaving the fund and retiring fund members. Where a fund has already started putting any of these default arrangements in place, the trustee board has until 1 March 2019 to align it with this new default regulation. Despite these regulations being in the pipeline for at least two years, implementation around default annuities has been slow. About half of the respondents to the annual Sanlam Benchmark Survey 2017, many of whom are trustees, indicated that they have not started default annuity implementation yet. This potentially hints at the limited governance bandwidth that many trustee boards already struggle with in a more regulated environment. In addition to the challenge around governance bandwidth, trustee boards will likely face two additional challenges when implementing a default annuity strategy. The first challenge would be navigating their way through various types of annuity products – many of them quite complex – offered by many different providers. There is also the challenge of engaging with generally disconnected and disinterested members to align them with the appropriate default annuity product.  In the race to get default arrangements implemented and in light of the challenges mentioned above, the risk is that trustee boards opt for off-the-shelf turnkey solutions that get tacked onto the existing options as an afterthought in a case of more haste, less speed.   Instead, should these challenges be overcome, this regulation offers a unique opportunity for trustee boards to reframe their view on the ‘cradle to grave’ journey from their members’ perspective. Despite the challenges, RisCura’s view is that this is an opportunity to implement a retirement phase that complements the goaldriven investment strategy of the accumulation phase. Both phases can be integrated into a solution that allows for a seamless transition from pre to post retirement, while leveraging off the institutional benefits offered by the accumulation phase.


30 November 2017


any South Africans are choosing to receive their retirement income through the purchase of a Living Annuity. Although this may offer many advantages, it has some significant risks that should be considered carefully. Risks of a Living Annuity Two of the main risks associated with investing in a Living Annuity are: • The risk that investment returns are not as high as what was initially expected. • The risk that you live longer than anticipated and run out of money. Many people are optimistic about potential investment returns and may underestimate their longevity. Very importantly, investing in a Living Annuity should be investing for growth rather than for capital preservation. Furthermore, inflation is a real threat to income drawers. It is very important to invest to keep abreast of inflation. Every year the income drawn on a living annuity has to increase to compensate for the eroding effects of inflation. The reality is that the growth on the investment has to be enough to cover both the effects of inflation and the amount of money that is drawn as income. Life Annuity The alternative to a Living Annuity would be a Life Annuity, where the future income is promised on day one for the remaining life of

SHREEKANTH SING Technical Legal Adviser, PSG


reparing early for retirement means making the most of the time you have available and investing through a retirement annuity (RA) offers many benefits. Contributions to these funds, which can be seen as personal pensions, are tax deductible up to 27.5% of the higher taxable income or remuneration, capped at R350 000 per annum. However, many people are not aware that you are also allowed to offset contributions that were not previously deducted. Further, contributions can be used to lower the tax payable on the lump sum cash portion taken at retirement, and even the tax payable on the income from your annuity. A tax-efficient investment vehicle enhances the returns achieved over the long-term. Within an RA, no taxes are paid on interest, capital gains or dividends. This means that money effectively grows faster than it would in a taxed product.

the person retiring. The result of this is that the retiree does not have any of these risks. So why do people choose not to invest in such a product? The first reason many retirees choose to invest in a Living Annuity is to leave something behind for their dependents. The second reason is to retain control of the investment. The investment will grow in line with the selected investment portfolios. This may result in a higher investment return that would result in a higher income over time. The converse is also true, if the investment does not perform well it will impact on the income that can safely be drawn. Drawdown rates Many people also choose to invest in a Living Annuity because at retirement, a Conventional Life Annuity cannot provide the income they need to survive. The average percentage people choose to draw out of their Living Annuities is around 6% per annum. This would mean that in the current environment with inflation of 6%, the actual growth on the investment would need to be around 12% every year. Currently this is quite a high annual return to achieve, especially in today’s uncertain economic environment. In addition, many investors choose to invest to protect their investment value over the shorter term. This is done by choosing to invest in portfolios with a lower risk profile. Although this is less likely to show negative returns over a shorter time, it is also less likely

to come anywhere near the 12% p.a. mentioned. The choice is hard: to protect the investment in the short term or to lose money in the longer term because the investment does not keep up with inflation over a longer period. ASISA statistics Statistics from ASISA show that people are choosing slightly higher percentages to be paid as income from their investments than previous years. The worry is that investors are not choosing more aggressive portfolios to offset this higher income draw. Remember, in a Living Annuity, there are no guarantees for income to last. Living longer Demographic Research also shows that people are living longer. The longer one lives, the more money you would need to sustain your income. We need to keep this in mind when deciding on how much income to draw from the investment; and which portfolios to invest in to achieve long-term real returns. Keep the following in mind Investment returns are never certain – there are many things to consider. Choose where to invest carefully, keeping the purpose of the investment in mind. For a Living Annuity, that purpose is to provide income for a long time to come, so you need to invest in assets that can provide sustainable real returns.

Retirement annuities offer many benefits

Categories of assets

For all issuers/entities





Immovable property


Offshore assets




Hedge funds


Private equity funds


Debt instruments issued by or guaranteed by the Republic


Debt instruments other than above

RAs are free from estate duty, which is typically levied at 20%. At death, retirement fund benefits are paid to your dependants, ensuring that your family is able to use the funds when you are no longer around. Effectively, your retirement benefit can help maintain your family’s standard of living after your death. Importantly, contributions that previously did not count for


deduction will be estate dutiable. Retirement funds provide protection should you experience tough times. Funds within an RA cannot be attached by creditors. This means that if you are not able to repay your debts or are declared insolvent, your retirement funds are safe. Retirement funds are regulated by the Registrar of Pension Funds, governed by Boards of Trustees,

and must adhere to asset allocation limits as set out in Regulation 28 of the Pension Funds Act. Asset class limits may seem limiting, but Regulation 28 aims to protect an investor by encouraging sound asset allocation decisions. By limiting the exposure to certain types of assets, the regulator aims to ensure that you don’t ‘bet’ all your money on a potentially volatile asset class, putting your ability to retire as planned at risk. It may also seem limiting to restrict access to funds in an RA before the age of 55, but as medical advances help us live longer, meaning retirement income will need to last longer, it is actually to your advantage to stay invested for as long as possible. RAs do, however, allow for access to funding earlier than pension or provident funds, and allow you to exit even later if you wish to invest for longer. RAs are accessible upon emigration or early retirement due to ill health.


Living Annuity vs Life Annuity

MARK LAPEDUS Divisional Director, Product Development, Liberty Innovation




30 November 2017

Selling life insurance to millennials … what is different?


hey’ve been described as ‘Generation Me’. They are the millennials, the generation of young people born between the early 80s and early 2000s. The biggest task for a financial adviser who wants to market products to this market is to gain their trust, says Deon Theunis, Head of Distribution Support at Sanlam Individual Life. Financial planners and financial institutions have found cultivating relationships with millennials a bit tricky because of the unorthodox rules of engagement that apply. Millennials own smartphones; buy online and they criticise brands that don’t meet their high expectations on social media. When it comes to finances, they plan for the short-term. The latest Youth Dynamix research on millennials shows that they distrust companies and organisations. “But the good news is that despite this distrust, this generation is not averse to financial planners. The latest Deloitte annual Global Millennial Survey found that 84% of millennials surveyed sought financial advice, a fact that Deloitte views as a true reflection of the high value that this generation places on advice, despite its scepticism about financial institutions,” says Theunis. Marketing anything to millennials requires a different approach from both financial planners and the financial institutions they represent. “They are a generation that doesn’t want to be bombarded with advertisements. They want to buy fast and move on. Their two other important traits are their civicmindedness and brand loyalty. They want to know that you care about the well-being of their community and they are loyal to those who pay attention to their specific needs.” This presents unique but focused opportunities to financial advisers, says Theunis. “Demonstrate your interest in them and their dreams before you even think about selling products. Build a relationship. Nothing will happen if you walk in the door, introduce yourself and expect some level of trust and a couple of sales,” he says. Although millennials are sometimes dubbed as a ‘debt adverse’ generation, Theunis says it is imperative that financial

advisers explore this generation’s attitude towards debt and address these issues first. Many millennials enter the job market still having student loan debt. Coupled with their love for brands and growing pressures of supporting their immediate family, debt might stand in the way of other financial considerations such as insurance. “Regardless of your sales objective, your starting point should be to make millennials aware of working to a budget. From there, they can see how to make way for paying off debt and to save. In this way, you would have demonstrated what a financial plan means, and it will be easier to take the conversation forward.” He says advisers need to demystify the concept of financial planning to this age group. They need to make sure that it’s understood as a tool to keep clients financially independent, no matter what life events happen to them. “Millennials must understand that financial planning boils down to protecting themselves against disasters, because no one is immune to disasters.” He argues that the biggest focus of millennials is their goals and dreams. “A millennial who wants to start a company is probably not interested in life cover. They will buy insurance if it ties into their goals. As an adviser, you have to demonstrate how insurance – such as income protection cover – fits into their bigger picture. They buy cutting edge products but, at the same time, they don’t want complexity.” Products aimed at this age group must be simple to understand – but most importantly, they must be relevant. “If millennials buy something that they don’t understand, the products will simply lapse. Worse yet, another adviser will redirect the policy and the client will allow it to happen because he has no real understanding of why he bought it in the first place.”

Deon Theunis, Head of Distribution Support at Sanlam Individual Life

What happens to life cover after divorce?


any individuals who get married place emphasis on taking out life cover to protect their families in the unfortunate event of death. However, when going through the emotional stages of a divorce, reviewing and updating a life policy can often be the last thing on your mind. Lee Bromfield, CEO, FNB Life says, “Similar to the process of entering into a marriage contract, partners should factor in unfortunate circumstances like a divorce when taking out life insurance for their families, especially if there are children involved.” 

He unpacks five options available to consumers after a divorce: • Changing beneficiaries – if you are no longer financially dependent on each other, you should review and update your beneficiary details. This is to ensure that the correct beneficiaries are paid out should anything happen to one of you. •  Banking details – individuals who are paying their policies from a joint account should contact their insurer and update their banking details, to avoid the policy lapsing if premium payments are no longer honoured.   If your policy lapses, you will no longer be guaranteed the same premium on a new policy, due to factors such as age and your current health conditions, amongst other factors.  Similarly, if you were financially dependent on your partner, you can either takeover the policy payments or discuss the way forward during your divorce settlement negotiations.   • Financial need of children – when there are children involved, an agreement should be reached by both parties in order to protect them financially should both or one of you no longer be around. The decision taken will be based on your individual circumstances as well as estate planning arrangements  • Sum insured – your financial situation may change after a divorce, making it necessary to adjust your life cover amount to meet any shortfall  • New policy – individuals who did not have a policy of their own while married should now consider taking out their own policy  “Failure to review and update your life policy after a divorce, may not only lead to family disputes and costly legal battles, but leave those who are dependent on you in financial distress,” he says.

Lee Bromfield, CEO, FNB Life


30 November 2017


Income protection crucial for all earners The potential to earn a monthly income is a person’s greatest asset and it is therefore imperative that this asset be covered. However, many people believe that income protection is only for those with dependents. A common perception about life insurance is that it’s only about life cover – so why do you need it if you don’t have any debt or dependents? At FMI, we believe your greatest asset is your ability to earn an income, and that all life insurance benefits should be designed to protect this, not just against possible permanent risks like death or disability, but also for temporary injury or illness. Therefore, this cover is crucial for everyone who earns an income – you need to protect your current lifestyle as well as your plans and dreams for the future by securing your future income stream against the possibility of illness or

injury, which can happen at any age. How can the amount of cover that an individual needs be determined? What factors are taken into account? By selecting a combination of income and lump-sum benefits, this calculation becomes quite simple. We believe that you should protect 100% of your monthly income with an income benefit – this removes the need for any assumptions around investment returns or inflation. You can then select a lump sum disability benefit to provide the funds you may require to adjust to living with a long-term disability. The main reason people don’t have income protection insurance is probably due to the perceived high cost of such insurance. But is income insurance really that expensive? There is this perception that income protection is expensive, however income cover is usually cheaper than the lump sum equivalent. For example,

the present value of the future income of a 30-year old individual earning R25 000 a month and planning to retire at 65 is a staggering R7 655 684 (this is based on an annual growth of 6.5% and a discount rate of 8.5%). To insure this amount with a lump sum would cost R667.65 per month, while insuring this cover as an income would only cost R289.61 per month, a saving of 57%. Covering this amount as an income would also allow you to claim for temporary disabilities. Another reason often given for not taking out income protection cover is the complexity of some policies. Very often, income protection policies are full of features and benefits and this adds to the complexity. However, when you cut through the noise, there are only a few key considerations: • Can you protect 100% of your monthly income? • Are you able to select the waiting period and retirement age to suit your needs?

• Do you have confidence that your claim will be paid? • Are you able to increase your cover in the future even if your health has changed? It is important to focus on the key issues and not be distracted by the ‘bells and whistles’. When and how often should income protection policies be reviewed? You would need to review your level of cover whenever your income changes. In addition, you may need to review the terms of your policy whenever there are material changes in your personal circumstances. For example, a change in your smoker status, changing your occupation or starting a family.

Brad Toerien, CEO, FMI

MoneyMarketing speaks to FMI CEO, Brad Toerien, about why we need income protection.


Carolyn is a financial adviser who has been living with Multiple Sclerosis (MS) for more than 20 years. Her biggest challenge is the unpredictable nature of her illness - she never knows when her next attack may occur. Fortunately, Carolyn’s FMI policy provides her with the certainty that when she is unwell, her bills are taken care of. Life is unpredictable. That’s why we protect your future plans and dreams. To watch Carolyn’s story and others, go to: FMI is a Division of Bidvest Life Ltd, a licensed Life Insurance Company and authorised Financial Services Provider FSP 47801



30 November 2017

DELOUISE MARAIS Head of Personal Lines, Hollard Broker Markets


t’s a hard, hard lesson to learn, to lose everything you have (or much of it) – and then discover your insurance cover was insufficient. This was the case for some residents caught up in the devastating fires in the Southern Cape in June. So what lessons from this tragedy can you share with your clients? Lesson #1: ensure your clients’ cover is accurate (and up to date) One of the fundamental aspects of making insurance choices is cost: how much do clients want to insure their property for? The simple answer is insure it for what it’s worth – no more, no less. An important consideration here is the concept of ‘average’, which is something people are either unaware of or do not understand. This is a standard insurance practice that comes into play when they are underinsured, and suffer a partial loss. Essentially, they will be liable for the underinsured portion of their loss.

Unpacking the insurance lessons of the Knysna fires

Lesson #2: clients should know the limits of the cover – and the terms and conditions Is your client’s building (or aspects, such as the roof) regarded as ‘standard’ or ‘non-standard’ – the latter implying a higher premium? Does their cover accurately reflect their assets? Also, do they understand the difference between a ‘partial loss’ and a ‘total loss’? And that with a partial loss, average may apply if the total sum insured is inadequate? Here’s something else to consider: the land on which their home stands is not insurable, and they can only claim for buildings and improvements, such as paving, carports, pools, boundary walls and so on. Very importantly, their cover should take into account all costs associated with rebuilding their beloved home, including demolition and the costs of experts such as architects and surveyors.

Lesson #3: ensure your clients keep their important information safe Contents cover is always calculated according to replacement value, and that requires proof of ownership and value. We can take photographs or video footage of household contents and their receipts with our phones, and store them in the cloud. Similarly, there are many free home inventory apps available. But traditional options remain: they can engage a professional valuator, or ask you or their insurer to help them with an inventory checklist.

ensure that they have peace of mind now, and should the worst happen. To assist you to explain the ins and outs of personal insurance to your clients, Hollard Broker Markets has launched #InsuranceTips, a regular, insurer-agnostic series featuring helpful information and easy-to-follow infographics. To view the series and subscribe to its newsletter, please visit

Lesson #4: help your clients to understand their responsibilities Assist your clients to fulfil their responsibilities according to their policy wording, so that they will ultimately be able to return to the position they were in before any loss. Your proper, correct advice around their home, liability and contents covers, and the correct values to insure at, will

Tips for insuring a young adult’s car from parent to child, the insurance risk is incorrectly underwritten. “In this instance, insurers could argue that they would not have accepted the risk at inception of the policy and they may reject the claim during the claims stage due to misrepresentation of facts or non-disclosure.” This is why it is vital to ensure that when arranging the cover for the child’s car, the main driver’s details (ie the child's) are given to the broker or insurer so that the premium is correctly calculated and that the policy reflects the correct risk details, says Hoosen. “The details should include the name, age and contact details for the main driver, the address where the vehicle is kept during the day and at night, whether it is stored in a locked garage and any other security measures, eg vehicle tracking very year, many South Africans turn 18 and and alarm systems.” along with this important life event, a vehicle  One of the reasons why parents sometimes neglect may be purchased or handed down to the to name their child as the primary driver is because young adult as a means of transport when they obtain premiums for young drivers are typically higher as the their driver’s license. However, if the parents do not younger a driver, the less experienced they are, he says. properly insure the car with the details of the actual “They are generally more open to take risks and the driver, they could be in for a massive financial outlay if lack of experience is more likely to be exposed to an their child is involved in a motor vehicle accident. accident. Once a driver has passed the initial period of  This is according to Nazeer Hoosen, CEO, PPS driving for two to three years as a licensed driver, the Short-Term Insurance, who states that the most risk decreases and possibly the premium too. When common mistake parents make when insuring they are over 25 it decreases even further. In a nut their child’s car is failing to specify the child as the shell, the claims frequency and severity is higher with primary driver or as one of the drivers of a vehicle. young or inexperienced drivers.”   He explains that when the correct driver is not One way to lower the premium of the policy for specified at the inception of the policy, or if the a younger driver is to take on risk by increasing existing policy is not updated to include the primary the excess, he says. “In addition, the selection of driver in the event of the car being handed down the vehicle is important to bear in mind. Imported


cars and vehicles with high power to weight ratios attract higher premiums. This is why it is a good idea to stay away from high performance cars as a first car for a child.” Hoosen says it is actually not a problem that the car is insured in the parent’s name, so long as full disclosures are made in terms of the primary driver, age and risk details at inception or when the risk changes. “Most policies are not on a named driver basis and anyone may drive the vehicle with the insured’s permission, as long as they adhere to policy terms and conditions. The issue is insurers must be given the opportunity to rate and underwrite the risk using the primary driver’s details.”  In the event that the child has an accident and is listed as a driver, the claims process would be dealt with in the same ways as normal claims, but perhaps with an additional excess, provided that the correct primary driver details were presented at inception.  “Insuring a car is a process that everyone has to go through and the more effort placed on ensuring the new driver details have been fully disclosed, the better the end result. It is always a good idea to send inexperienced drivers on an advanced driving course to boost their driving skills,” he adds.

Nazeer Hoosen, CEO, PPS ShortTerm Insurance




30 November 2017




While some women seem to excel at making their money work for them, others battle from pay day to pay day. In Smart Woman, author and financial planner, Sylvia Walker, provides the necessary insights into how our personal view of money impacts on our financial behaviour and decisions. She also reveals who is competing for our money (retailers, online marketers, etc.) and looks at why it is so hard to find money to invest. Walker covers how major life events, such as marriage and divorce, impact on us and how we can make smart financial decisions at these times. The reader is shown how to take control of her financial life by spending smarter, tackling debt and setting goals. The book explains how money is made and how the financial markets work, as well as the universal principles behind growing wealth, irrespective of where one invests. This is a must-read for every woman, at any age, who is serious about building wealth and obtaining financial independence.

MORE IMPORTANT THAN MONEY: AN ENTREPRENEUR’S TEAM BY ROBERT KIYOSAKI AND THE RICH DAD ADVISORS Many people have million-dollar ideas. They’re confident that their new product, service or innovation will make them rich and that all their dreams will come true. The problem is: Most people don’t know how to turn their milliondollar idea into millions of dollars. According to many social scientists, the most important thing in life is a person’s social and professional network. In other words, the people around us – our associates, our team, our friends. The people we surround ourselves with and the people we go to for advice and guidance can mean the difference between success and failure. And as Robert Kiyosaki taught in Rich Dad Poor Dad, if the people around you have a poor person’s mindset, it’s likely that you’ll be, or stay, poor. Your team, in life and in business, will determine if your milliondollar idea will give you a million-dollar payday. In More Important Than Money, Kiyosaki teams up with his most trusted advisers who contribute chapters on the strengths and talents they bring to the team.

ON THE BRINK BY CLAIRE BISSEKER Few countries in transition have managed to get a grip on their public finances as well as South Africa did after 1994. Now, just more than 20 years later, the nation’s credibility and the democratic project lie in tatters as we teeter on the brink of a political and fiscal cliff. Business confidence and investment have evaporated along with clean, accountable government, causing South Africa to be downgraded to junk status, crushing the country’s growth potential and pushing it towards a debt trap. How did we land up in this mess, and can we pull back from the brink? Claire Bisseker, economics editor of the Financial Mail, unpacks the crisis in this accessible and highly readable guide to what makes our economy tick.

Not the best of times for this robo adviser


ast month it was revealed that UK robo adviser, Nutmeg, saw its losses rise to £9.3m in 2016 from £8.9m of losses posted in 2015. The company said it had invested in both improved technology and infrastructure. In the first six months of 2017, Nutmeg’s client base more than doubled from 20 000 to 45 000 and its assets under management increased from £600m to £900m. The company recently received funding from Hong Kong financial advice firm Convoy, which invested £24m, and Taiwan-based Taipei Fubon Bank, which invested £12m. The company’s other backers include Pentech, Balderton Capital, Armarda Investment Group and Schroders. Following the news of Nutmeg’s 2016 loss, former hedge fund manager Alan Miller, who now runs UK wealth management firm SCM Direct, attacked Nutmeg in a blog post. Miller referred to a report he had written last year in which he shows that UK robo advisers are “wired to lose money”, and that “most will go bust before acquiring the sizeable

assets under management to ensure their sustainability.” Miller continued: “Even though the company had cash at the end of 31st December 2016 of £27.9m, it still says in the accounts that the company may require further cash injections to continue to develop and market its product offering and to build its customer base and its assets under management’. He then pointed out that Nutmeg’s employment costs of £5.3m are more than twice its turnover. “One of the central issues with the UK fintech models I have seen is their reliance on smaller accounts – Nutmeg managed £600m for 25 000 clients i.e. an average balance of £24 000 as at the end of December 2016. “To put it into context, Nutmeg charges between £108 and £180 per annum for a £24 000 account (depending on whether a customer opts for the fully managed or fixed allocation portfolio). Based on its recently reported costs and number of accounts managed, salary costs alone work out at £214 per account, and overall accounts at £478 per account.”

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Investing with the times

Help your clients’ protect their children’s education with the Global Education Protector. Discovery Life’s new Global Education Protector helps to cover your clients’ children’s education from crèche through to tertiary education, should something happen to them. It also allows them to get up to 100% of their child’s tertiary tuition fees funded, even if they don’t claim, by simply leading a healthy lifestyle. 2 October – 15 December 2017

Special Offer For a limited time, Discovery Life will immediately fund a minimum amount of up to 33% of your client’s children’s tertiary tuition fees through the University Funder Benefit. The percentage as well as the number of years of education provided is based on their children’s age when they take out the policy and on the benefit option they select. By engaging in Vitality they can increase the amount of their children’s tertiary tuition fees that we will fund to up to 100%*.




Discovery Life Limited is a registered long-term insurer and is an authorised financial services provider. Registration number 1966/003901/06. Policy rules, terms and conditions apply. *Subject to limits determined by Discovery Life, applies to children who are 12 years old and younger. GM_48571DL_13/10/2017_V3

Money Marketing November 2017  

The November issue of MoneyMarketing features retirement planning for 2018, the need for income protection, as well as regulation and compli...

Money Marketing November 2017  

The November issue of MoneyMarketing features retirement planning for 2018, the need for income protection, as well as regulation and compli...