By fully embracing technology, you can streamline processes and enhance compliance, allowing you to create personalised client experiences. From CRM to AI, we look at the latest trends in the market.
Cover story + pg 10-15
WHY DFMS ARE ESSENTIAL Discretionary fund managers (DFMs) take the complexity of fund selection and portfolio management off advisers’ shoulders. By outsourcing investment decisions, you can be freed up to grow your practice.
Pg16-17
KEEPING UP WITH UNIT TRUSTS Unit trusts remain a versatile building block for client portfolios, offering diversification, accessibility and professional management, making them suitable for both entry-level investors and high-networth clients.
Pg 18-22
OPPORTUNITIES OFF THE BEATEN PATH
Investors seeking uncorrelated returns and long-term growth opportunities should keep their focus on private equity. We take a closer look at the risks, liquidity constraints and potential rewards in the private equity space.
Pg 24-25
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Future-proofing advice in an AI-driven era
Back in July 2001, Kobus Barnard, now Managing Director of Allegiance Consulting, wrote an article for MoneyMarketing that seemed more science fiction than reality. He spoke of a tool that could “calculate more than 7 million financial scenarios in less than a minute, predict your financial future, consider your ever-altering reality, be available 24/7, have the combined IQ of the world’s top experts, reach any client anywhere, and handle millions of clients at the same time – all without charging commission”.
“At the time, it felt like a dream,” recalls Barnard. “But I knew that technology would eventually make this possible. What strikes me is that it only took 24 years for those predictions to become reality. Today, it’s no longer a fantasy, it’s our everyday environment.”
Technology has not only caught up with financial services, it has enabled hyper-personalisation and scaling of traditional models of advice. From compliance and client onboarding to complex scenario planning, automation and artificial intelligence are redefining the role of the adviser.
For Allegiance Consulting, founded in 1999 as a small team of legal advisers supporting independent financial intermediaries, the journey into technology wasn’t about chasing trends. It was about solving a very practical problem: availability. “We were booked three months in advance. The only way to scale complex advice was through standardisation, simplification and automation – in other words, technology,” says Barnard.
That realisation sparked a transformation that took Allegiance from being 95% consulting-led in 2009 to 99% technology-led today. Along the way, they built a financial platform that helped advisers unlock billions in opportunities, and experimented with early AI engagement tools, laying the groundwork for the fintech-driven world we now inhabit.
From fragmented agendas to aligned commitment
In the early 2000s, when bank assurance was booming, Barnard noticed a fundamental gap. Despite housing short-term insurance, lending and investment products under one roof, banks struggled to align these services around a single client view. “It was like looking at a Venn diagram where the circles barely touched,” Barnard recalls. “There was no shared agenda between banker, adviser, auditor and client.”
To test the concept, Allegiance Consulting ran experiments with groups of advisers. The insight? Timing and alignment matter more than opportunity alone. “If you create a roadmap where everyone – client, adviser, bank, auditor – agrees on priorities, you achieve what we
call aligned commitment,” says Barnard. By breaking big opportunities into phased plans over time, clients are more likely to say “yes” consistently, priming them for long-term decisions.
Technology as the book of life
This philosophy shaped the development of Allegiance’s CRM system in Avalon. More than a contact manager, it became a collaboration framework to record what Barnard calls the “book of work” – a rolling five-year roadmap of a client’s financial life. The platform allows advisers to map opportunities, align them with client goals and track progress through ongoing conversations.
Beyond opportunity management, the CRM incorporates task management, document and forms libraries, integrated e-signatures, service ticketing and seamless collaboration with network partners. It has been fully refreshed in the past four years on a modern technology stack, ensuring both depth and usability. It is in the financial planning component where the platform truly excels beyond our wildest expectations. For planning, Avalon offers comprehensive modules: retirement saving, investment planning, risk analysis, estate planning, and business needs analysis. All of these components work cohesively to give advisers both breadth and depth of financial insight. It allows advisers to scale their own practice with hyper-personalisation.
“The Avalon platform in its entirety is built around our Massive Transformative Purpose – empowering advisers to help clients discover, achieve and live remarkable lives,” explains Barnard.
“We see it as the foundation of a Contextual Financial Identity™ for every client – a living, breathing model that integrates their data, goals, values and behaviours. That means advice is not just productdriven, but deeply personal, scalable, and always aligned with client outcomes.”
Looking ahead
Allegiance’s focus is now shifting to expand with a client engagement app, called Dreamzter™, which will become the tool for advisers to connect to their clients at scale. Dreamzter captures a client’s goals, passions, and dreams in an intuitive ‘wheel of life’, creating what Allegiance calls a contextual financial identity – a kind of digital financial twin of the client in the cloud.
Continued from previous page
The next step in that evolution is Ariel, an Artificial Intelligence entity. “Ariel has two personalities,” says Barnard. “It’s a super Artificial Intelligence assistant in the hands of the advisers – deeply integrated into Avalon. This phase is complete and is entering into wider testing now.”
The second personality of Ariel is to act as an Artificial Intelligence Super Adviser. “We have fused Ariel with the Contextual Financial Identity™ of the client, giving it access to our full planning suite. It will allow advisers to scale vertically because Ariel knows the client so understands how to unlock more value, and that translates into unlocking opportunities for the advisers in their same base. It also allows you to scale horizontally,” he says. “Ariel can act as an integrated paraplanner, legal adviser and admin clerk rolled into one. Advisers can ask Ariel to prepare for a meeting, analyse opportunities, or draft documents in real time, all while staying secure and compliant.”
Importantly, AI operates in the background. “Advisers don’t need to feel they’re dealing with a bot,” Barnard explains. “The client experience remains human, but powered by intelligence that saves time and unlocks personalisation.”
Scaling advice with simplicity
But technology alone isn’t enough. As Barnard acknowledges, when faced with a comprehensive system with many features, it may overwhelm users. “The key is design,” he explains. Allegiance introduced a dual approach: a shallow end, known as Advice on Rails™, and a deep end for complex planning. Advice on Rails is a guided, storyboard-style process for producing plans in minutes, intuitive enough to use without training. At the same time, power users can dive into advanced estate planning and scenario modelling.
Training is also embedded in the system through Just-in-Time learning: bite-sized videos, PDFs and contextual prompts triggered by where the user is in the platform. “We’ve built the experience so that an adviser can get going in 10 minutes, without needing a manual,” Barnard says.
Security and compliance by design
With banks and corporates entrusting client data to the platform, security was non-negotiable. Allegiance partnered with
leading cyber-defence specialists, conducts regular penetration tests, and operates on a secure Azure infrastructure with a special dispensation for localised disaster recovery. “We never believe we’ve arrived on security,” Barnard stresses. “We’re always alert, always testing.”
Compliance has also been built into the DNA of the system. “We are actively driving ‘Compliance through Convenience’,” explains Barnard. Allegiance’s advice transaction framework captures every step of the financial planning process; from needs analysis to product selection, ROAs and supporting documents, in a structured, auditable container. For corporates, this provides full compliance oversight; for independent advisers, the same framework is now being rolled out to simplify recordkeeping and reporting. Compliance becomes a safety net, not a burden.
With the COFI Act set to reshape adviserclient relationships around enforceable contracts, Allegiance is already positioned for the shift. Its nine-step process, rooted in the traditional six-step financial planning model, aligns directly with COFI’s emphasis on agreements, SLAs and transparent client outcomes.
Scaling advice, injecting hope
For Barnard, the true promise of technology is not just efficiency, but accessibility. South Africa’s 61 million people include millions who live in financial misery, excluded from quality advice simply because it was too expensive to deliver. Allegiance’s mission is to change that.
“Financial wellness starts with hope,” he says. “Our dream is to give people, even in the most difficult circumstances, a spark of a better tomorrow.” By combining scalable AI-driven advice with human empathy, Allegiance believes advisers can reach clients previously left behind and help them make the consistent micro-decisions that compound into financial security over time.
The technology has the potential to quantum leap advisers into explosive growth. Our message is to embrace it to the fullest extent, and you may just be pleasantly surprised as to how it will unlock previous opportunities that was hidden in plain sight.
ED'S LETTER
Technology is no longer a ‘nice to have’ for financial advisers; it’s a necessity. As the industry continues to move forward, those who embrace digital solutions are finding themselves better positioned to meet client expectations, scale their practices, and remain compliant in an increasingly complex environment. In this month’s issue, we take a close look at how technology is transforming advice – from client engagement tools and CRM systems to AI-driven insights that support better decision- making.
Alongside this, we turn the spotlight on unit trusts, which are still one of the most versatile building blocks in client portfolios. With shifting regulations, growing appetite for offshore diversification and increasing demand for cost-effective passive options, advisers have much to consider when navigating this space. We also explore the role of discretionary fund managers (DFMs), who are helping advisers sharpen their value proposition by outsourcing investment expertise and freeing up time for client relationships.
Private equity is a space that continues to capture attention from family offices, institutions and high-net-worth investors looking for differentiated returns. We unpack where the opportunities lie and what advisers need to know when considering private equity in a client’s portfolio. Enjoy the read and, as always, let us know your thoughts. Stay financially savvy,
Sandy Welch Editor, MoneyMarketing
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Stephan le Roux Financial Planning Specialist at Old Mutual Wealth
How did you get involved in financial services – was it something you always wanted to do?
Financial services was not a career path I had initially considered. My passion was opera, and I pursued it wholeheartedly by enrolling at the UCT College of Music, where I completed a Performer’s Diploma in Opera. While I thoroughly enjoyed my time at opera school, I began to question in my final year whether a career in performance would be financially sustainable in the long term.
During this period of reflection, I met a manager from Old Mutual Personal Financial Advice who encouraged me to explore the possibility of becoming a financial adviser. Initially, I was hesitant because I thought the role was purely sales-driven, and I didn’t see myself fitting into that environment. However, after engaging in further conversations, I decided to give it a chance.
I joined Old Mutual the year after completing my studies and was impressed by the structured training and clear learning pathway offered. I obtained all the necessary qualifications, including postgraduate diplomas in both Financial Planning and Investment Planning. What started as an unexpected opportunity has since evolved into a deeply rewarding career.
What was your first investment – and do you still have it?
In Grade 8, I invested R600 into the Old Mutual Investors’ Fund. I held the investment for about nine years, and when I cashed it out to put down a deposit on my first car, it had grown to four times its original value.
Later, during my first year of university while working as a waiter, I took out my first endowment policy. That contract is still active today and continues to form part of my long-term financial planning strategy.
What have been your best – and worst –financial moments?
My worst financial moments occurred when I was chasing easy returns without a solid understanding of investment principles. As a student, I fell for a pyramid scheme and later invested in a small business without conducting proper due diligence – both decisions resulted in significant financial losses. These experiences made me overly risk-averse in the early stages of my investment journey, which limited my growth potential.
My best financial moments have all been tied to education. Gaining financial knowledge, whether formally through qualifications or informally through self-study, has empowered me to make informed decisions.
What are some of the biggest lessons you have learnt in and about the finance industry?
I’ve been involved in thousands of financial plans, and one of the most consistent lessons I’ve observed is the long-term value of early, quality financial advice. Individuals who engage with a competent financial planner early in life are far more likely to retire with financial security and peace of mind. Conversely, those who attempt to manage their finances independently often fall short, because their decisions are shaped by personal beliefs and assumptions that aren’t grounded in facts. These biases can lead to inaction or emotionally driven choices that undermine their financial wellbeing.
A key insight I’ve gained is that we all need someone to act as a mirror that reflects our behavioural patterns, challenges our assumptions, and offers new perspectives. This is the true role of a skilled financial planner: not just to provide technical advice, but to guide clients toward more empowering financial beliefs and behaviours. Finding the right planner is essential.
What makes a good investment in today’s economic environment?
A good investment is one that helps a client achieve their personal financial goals. As financial planners, our role begins with understanding what truly matters to the client: their goals, dreams and aspirations. Through coaching techniques, we help bridge the gap between where they are now and where they want to be.
Once we’ve clarified their objectives, we model the required investment return – above inflation – that’s necessary to achieve those goals based on their current financial circumstances. This required rate of return then informs the appropriate asset allocation. With that allocation comes inherent risk, which must be clearly understood and agreed upon by the client.
A key part of our responsibility is to ensure the client is well-informed about this risk and that their expectations are managed accordingly. If the client feels uncomfortable with the level of risk required to sustain their desired lifestyle, we work with them to reassess and potentially adjust those lifestyle goals. Ultimately, a good investment in today’s environment is one that
balances growth potential, risk management and inflation protection, while remaining aligned with the client’s personal values and long-term objectives.
What finance/investment trends and macroeconomic realities are currently on your watchlist?
One of the most significant trends I’m observing is the rise of AI and techdriven investing and advice. While these innovations offer powerful tools for financial planners, they also present new risks. For clients, caution is essential due to the increasing prevalence of AI-powered scams and deepfakes. Another concern is the growing number of individuals taking financial advice from online influencers who lack formal financial training or experience. From a macroeconomic perspective, longevity and demographic shifts are reshaping financial planning. With people living longer and many caught in the responsibilities of the sandwich generation, there’s a growing need to work well beyond traditional retirement age. This reality requires a fundamental shift in how we approach retirement planning.
What are some of the best books on finance/ investing that you’ve ever read – and why would you recommend them?
One of the most impactful books I’ve read is The Psychology of Money by Morgan Housel. What sets this book apart is its focus on the emotional and behavioural aspects of money, which are areas often overlooked in traditional financial literature. Housel illustrates how mindset, discipline and habits play a far greater role in financial success than intelligence or technical knowledge. In my experience, developing a healthy relationship with money begins with improving financial habits and mindset, and this book provides an excellent foundation.
By Sandy Welch Editor, MoneyMarketing
When Guy Opperman was appointed by former UK Prime Minister
Theresa May as the world’s first Minister for Financial Inclusion in 2017, he knew the challenge ahead was immense. He was stepping into a role that highlighted one of the greatest challenges facing both developed and emerging economies: how to ensure that everyone, not just the middle and upper-middle classes, can access meaningful financial products and secure their long-term futures. “The UK had nearly 10 million people who didn’t have £100 saved,” he recalls. “And that’s in a country with relatively high financial literacy. The question was: how do you make insurance, savings and pensions accessible to low-income workers, and how do you make it easy?”
Opperman’s dual focus on pensions and financial inclusion reshaped the conversation around financial services, especially in a post-COVID world where technology, accessibility and simplicity are no longer ‘nice-to-haves’ but essential components of long-term resilience.
Tackling the inclusion gap
For Opperman, pensions and inclusion became a “day job and night job” combination: managing a £120bn state pension system alongside a £1.5tn private market, while also pushing to create simple, mobile-based solutions for those excluded from the system entirely.
“The reality is, if it doesn’t work on your mobile phone, particularly for younger and lower-income families, it’s not going to work,” he says. “Education must be bite-sized, accessible and relatable because people are busy, and they don’t have time for hour-long lessons on financial products.”
His efforts included creating community banks to counter payday lenders, promoting workplace auto-enrolment, and designing financial education initiatives that could be rolled out in both government and corporate settings.
One of the biggest challenges governments and employers face today is how to attract, retain, and support older workers in the labour force. In the UK, Guy Opperman says, that has meant tackling both bias and incentives.
Financial inclusion, DC pensions and the Midlife MOT
He was instrumental in ensuring the UK government created a favourable environment for companies employing people beyond retirement age. Other countries, like Japan and those in Scandinavia, have gone further, either offering pension top-ups for continued work or framing it as a civic duty to keep contributing. “Every government has levers it can pull,” Opperman notes, “but the message is clear: older workers are an asset, not a burden.”
The midlife MOT of wealth, work and wellbeing
One of Opperman’s most talked-about policy innovations during his time in office is the Midlife MOT, a simple but effective checkup for employees aged 45 to 60. Developed with Aviva, the initiative looks at three pillars: wealth, work and wellbeing. “Most people leave it too late to plan for retirement,” he says. “But if you sit someone down at 47 and show them their pension position, explain the lifestyle changes they might face, and give them 20 years to make adjustments, that’s transformational.”
“Every developed country has already moved, or is moving, to DC”
The MOT also tackles retention challenges. “Companies were losing middle managers who wanted early retirement. By offering financial planning, health checks, and retraining opportunities, businesses kept critical experience while employees gained a pathway to stay engaged on their own terms.”
The health aspect is particularly powerful. “We used to say: we’re all going to die, but don’t die of negligence. A 10-minute cancer screening at work can save lives and cut healthcare costs. Combine that with flexible working and reskilling, and you’ve got a workforce that stays productive into their 60s and 70s.”
This ties directly into his current work with Smart Pensions, a UK-based firm that runs a multi-employer retirement savings platform and oversees one of the country’s largest master trusts, with more than £5bn under management.
“Smart operates a two-stage business,” he explains. “In the UK, they run workplace pensions. But their real innovation is Keystone, a fintech platform that lets countries and corporates build modern, flexible savings and retirement systems. It’s automated, integrated,
and can be adapted for local markets.”
Already live in the UK, UAE and Hong Kong, Keystone is being pitched to African and Middle Eastern markets. Opperman believes this is where the future lies. The global shift away from defined benefit (DB) pensions towards defined contribution (DC) pensions is inevitable. “DB schemes are simply unaffordable in the long run. Longevity is increasing everywhere, and that makes liabilities unquantifiable. As life expectancy rises, final salary pensions become an impossible promise to keep. Every developed country has already moved, or is moving, to DC. Africa, including South Africa, will follow.”
For Opperman, the lesson is clear: governments and corporates that act early in transitioning to DC structures – while ensuring accessibility through simple, mobilefirst solutions – will be best positioned to safeguard both retirement security and economic resilience in the decades ahead.
Lessons for South Africa
Opperman sees strong parallels between the UK’s journey and the challenges South Africa now faces. “Australia’s DC pension system has been running for over 30 years. The average retiree there has half a million dollars in private savings. Compare that to South Africa, where too many people still retire with little more than the state safety net, and you can see why the transition to DC is so important.” He also highlights the corporate opportunity. “Employee benefits are no longer just about pensions. Younger workers may want help with housing deposits, cars or education savings. If companies can build flexible savings products into their benefit offering, it’s a win for retention and a win for employees’ long-term security.”
Looking ahead, Opperman is confident. “The world is moving to DC without a shadow of a doubt,” he says. “The state and corporates can’t carry the burden forever. Individuals must take more responsibility for their financial future, but they need the right tools. That means mobile-first, simple, and adaptable platforms.”
Whether through corporate innovation, government regulation or fintech partnerships, the path is clear. As Opperman puts it: “Inclusion and retirement aren’t two separate agendas, they’re one. If you get it right at midlife, you change the outcomes for millions in later life.”
Empowering investor success through advice
By Sandy Welch Editor, MoneyMarketing
Financial advisers are often misunderstood. To many, their role is reduced to picking funds or timing markets. But for Mark Sanderson, managing director of Morningstar in EMEA, the true essence of advice is far deeper.
“An adviser is often 90% psychologist and 10% planner,” he says. “It’s about helping people make better choices, set goals, stick to them, and not panic when markets get volatile. That fundamental role of support and coaching is the same everywhere – no matter the country.”
Morningstar, which spans investment management, platforms and advice software, has built its business around supporting advisers – from large banking groups to small independent practices. Sanderson is a firm believer in getting out of the boardroom and spending time with advisers in their own environments. “It’s easy to guess what advisers need. But you don’t have to guess because you sit with people, and they will tell you. Our job
is to solve problems, not to create products in search of a problem.”
That focus on problem-solving has practical impact. He recalls speaking to a young adviser whose biggest challenge was not being able to put her children to bed at night. “That’s a time problem. If we can take away the inefficiencies in her day – all the swivel-chairing, the endless rekeying of data – we can give her that time back. And that’s just as much a part of our mission as building world-class models or platforms.”
How do you solve a problem like South Africa?
South Africa presents unique regulatory and economic challenges – from tax complexity to grey-listing concerns. However, Sanderson still feels there is reason for optimism here. “When you consider what this country has been through, you can’t ignore the progress. South Africans have a fundamental confidence in their country, in the community of people, to navigate and
“Our mission is simple – to empower investor success”
achieve difficult things. You only need to look at the Springboks to know that, right?”
He says that although sometimes it feels like one step back and two steps forward, as long as we’re moving in the right direction, that’s what matters. “Household wealth is higher than it’s ever been, and fewer people live in poverty than ever before – those are good stories we need to recognise.”
Sanderson notes that the similarities across markets are more striking than the differences. “Investors everywhere want the same things: to support their families and retire comfortably. Household wealth is higher than ever, demand for advice is rising, but supply isn’t keeping pace. Succession is a challenge globally; I would say one of the top two or three issues facing advisers in Australia, UK, US and South Africa. We need to make financial planning attractive to younger generations – to show them it can be a noble profession – valuesdriven as well as commercial.”
That values-driven focus is one reason Morningstar invests in financial literacy initiatives, piloting programmes in schools and communities. “Once you start teaching young people about money, you quickly realise teachers and parents also want to learn. The advice community can play a huge role here,” Sanderson says.
Why advice is important right now
In an era of geopolitical uncertainty and volatile markets, advisers play a critical role in keeping clients calm and invested. “While every generation thinks their situation is unique, uncertainty isn’t new,” Sanderson points out. “Wars, politics, volatility – they’ve always been with us. The only certainty is that uncertainty will persist. That’s exactly when advisers are most valuable: helping clients stay the course when panic could lead to crystallising losses. The pilot gets paid when there’s ice on the wings, not when it’s smooth flying.”
He praises the South African advisory community for remaining extremely strong, and being a beacon. “They are kind of like a lighthouse,” he says.
At the heart of Morningstar’s philosophy is independence. “We’re not here to push products. Our mission is simple: to empower investor success. That means being on the same side of the table as the adviser and their client, connecting the industry, and raising standards together. South Africa’s advice community is remarkably resilient and collaborative, and that gives me huge optimism for the future.”
Mark Sanderson
Goodbye JIBAR, hello ZIRONIA
South Africa’s financial markets are entering a new era. The Johannesburg Interbank Average Rate (JIBAR), long the anchor of domestic funding and lending, will soon be replaced by the South African Rand Overnight Index Average (ZARONIA). This transition is reshaping how interest rates are priced, aiming for greater transparency, reliability, and alignment with global best practice.
Historically, JIBAR has been central to loan agreements, preference shares, bonds, and structured products. However, given that it is based on indicative quotes from banks rather than actual trades, it no longer meets international standards for robust benchmarks. By contrast, ZARONIA is calculated from actual overnight unsecured interbank lending transactions, providing a more transparent, transaction-based measure.
The South African Reserve Bank (SARB) first published ZARONIA on 2 November 2022, and since then, the Market Practitioners Group (MPG) has mapped out a detailed transition plan. Milestones include the launch of the ‘ZARONIA First’ initiative for derivatives in April 2025, the introduction of fallback methodologies for JIBAR-linked contracts in both cash and derivatives markets, and legal amendments to address so-called ‘tough legacy’ contracts.
The transition will unfold in phases. A formal announcement of JIBAR’s cessation is expected in December 2025, followed by an active transition period in 2026. After a directive of ‘no new JIBAR transactions’ comes into force, JIBAR will be discontinued, with the cessation expected by December 2026. This will ensure that institutions have time to renegotiate contracts, update treasury and risk systems, and adapt hedging strategies.
A critical issue is contract fallback. In March 2025, the MPG confirmed that JIBAR fallback rates will be based on compounded ZARONIA plus a credit adjustment spread (CAS), mirroring global ISDA conventions. Without such provisions, contracts could face pricing uncertainty once JIBAR disappears. Legislative amendments are also being prepared to safeguard contracts lacking adequate fallback language.
The shift is more than regulatory housekeeping – it affects corporate funding costs, covenant calculations, refinancing terms, and capital strategies. Institutions that move early by adopting ZARONIAlinked instruments and restructuring exposures will reduce uncertainty and gain an advantage as liquidity deepens in the new benchmark.
The fall of JIBAR and rise of ZARONIA is a defining shift in South Africa’s financial architecture – it’s not only the end of an era, but also the beginning of a more transparent, resilient, and internationally consistent future.
By Zamani Ngidi Business Unit Manager for M&A and Cyber Solutions at Aon South Africa
GNavigating buy-side success in a shifting M&A landscape
lobal mergers and acquisitions (M&A) activity is regaining momentum, driven by pent-up demand and the reallocation of sidelined capital. However, while deal flows are accelerating, buyers face an increasingly complex environment where success depends on deep preparation, strategic clarity and adaptability.
The 2025 Deal Market View report surveyed senior executives from corporate development teams and private equity firms involved in buy-side transactions, comprising 40% of respondents from EMEA and 60% from North America. The report found that: 100% of respondents view due diligence as extremely important for M&A success
56% of respondents prioritise longterm strategic goals in exit planning, especially corporates (69%)
56% of respondents expect near-term valuation increases, with 24% anticipating significant rises
48% foresee widening gaps between buyer and seller valuation expectations.
Key factors shaping today’s M&A market
The dynamics of the buy-side environment are being reshaped by a combination of financial, competitive and strategic forces. Understanding these drivers is essential for buyers seeking to identify opportunities, manage risks and position themselves for success in a crowded market. Among the most significant factors influencing dealmaking today are:
1. Pent-up demand and sidelined capital
Delayed transactions from recent years are now materialising, while significant amounts of uncommitted capital are being deployed. This surge is fuelling stronger deal flows across global markets.
2. Increased deal complexity
Heightened scrutiny around due diligence, consideration of long-term exit strategies, and widening valuation gaps are making buy-side processes more intricate and demanding.
3. Rising valuations
With expectations that valuations will continue to rise, a disconnect is emerging between buyer and seller pricing, complicating negotiations and deal closures.
4. Competitive environment
Private equity firms are entering the market with record levels of dry powder, intensifying competition with corporates for high-quality assets.
Strategic alignment
More than ever, buyers are prioritising acquisitions that fit seamlessly into their long-term strategic objectives to secure sustainable value creation and competitive advantage.
Strategies for a competitive edge
While the challenges are clear, so too are the opportunities for those who take a disciplined and forward-looking approach. To succeed in this competitive and fastmoving market, buyers must go beyond transactional thinking and adopt strategies that emphasise long-term value creation, risk management and strategic fit. Proven approaches include:
In-depth due diligence
Comprehensive analysis of operational, compliance, ESG and supply chain risks ensures that buyers avoid overpaying while strengthening their negotiation and postmerger integration positions.
• Focus on strategic fit
Evaluating whether a target aligns with long-term strategic objectives helps ensure the sustainability and resilience of the investment.
• Managing valuation gaps
Creative mechanisms such as purchase price agreements are being used to bridge differences in buyer and seller expectations while reflecting real market conditions.
• Strategic reviews
Corporates are increasingly conducting strategic reviews to clarify and communicate their long-term goals, improving confidence among stakeholders and positioning themselves more strongly in deal negotiations.
• Market monitoring
PE firms and corporates alike are closely tracking financial projections and industry trends to optimise deal timing, maximise valuations and enhance exit strategies.
Today’s buy-side M&A landscape is defined by both opportunity and complexity. While competition, valuations and shifting market dynamics pose challenges, buyers who embrace disciplined due diligence, strategic alignment and innovative deal structures are better positioned to achieve successful, value-creating outcomes. In this fast-moving environment, preparation and foresight are the keys to securing a competitive edge.
Bridging the generational divide in financial advice
Speaking at the recent Glacier IdeasLab 2025, Rudolph Geldenhuys, CFP®: Director & Financial Planner at Firecrest Group, and 2024/2025 South African Financial Planner of the Year, spoke on the importance of bridging generations when it comes to the financial advisory industry. Here are some of his key takeouts.
In every financial planning practice, there are two worlds that often seem at odds: the experienced planners who built their businesses with discipline, professionalism, and structure, and the next generation of planners who favour flexibility, mobility and a more casual approach to client engagement. It’s a divide that runs deeper than wardrobe choices or office setups. It touches on philosophy, professionalism, client expectations and even what “work” looks like. One seasoned financial adviser recently vented his frustration after observing his younger colleague at work: “These youngsters just want to sit in coffee shops all day and call it work.” Behind the humour was a serious concern, about professionalism, client confidentiality and what it takes to earn trust. For decades, financial advisers built credibility through in-person meetings, paper-based reports and the quiet rituals of office life. That legacy deserves respect.
“It requires genuine collaboration across generations of advisers within a practice”
But the younger adviser wasn’t wrong either. Flexible work environments, smartphones, instant communication, and digital-first tools aren’t signs of laziness; they’re signs of evolution. Clients increasingly expect ondemand updates, quick responses and advice delivered through the same channels they use daily, whether that’s WhatsApp, Zoom, or an app notification. To younger planners, sitting in a coffee shop with a laptop and client dashboard isn’t casual – it’s efficient.
Tradition
vs innovation
This is where the tension lies. The experienced generation often sees younger advisers as lacking the gravitas that financial planning requires. The younger generation sees established advisers as slow to adapt, overly
rigid, and resistant to tools that could free up time for more meaningful client work.
Neither is completely right or completely wrong. The truth is that both generations are looking at the same profession through different lenses. The older adviser risks clinging too tightly to tradition; the younger one risks the assumption that technology can replace wisdom. Both have blind spots, but both also bring invaluable strengths.
The client’s perspective
For clients, what matters most hasn’t changed: trust, reliability, and the confidence that their adviser understands them. But how that trust is built has shifted. A Baby Boomer client may still prefer to sit across the table with a leather-bound report. A Millennial client might feel more at ease reviewing a portfolio summary on their phone while commuting. Gen Z clients, entering the workforce now, may expect financial advice to feel as seamless as ordering food through an app.
The challenge for advisers is to serve all these preferences without compromising the integrity of their advice. That requires more than tolerance – it requires genuine collaboration across generations of advisers within a practice.
Where generations meet
The art of financial planning – the empathy, listening, and human connection – remains timeless. The science of financial planning, which includes analytics, compliance, and technology, continues to evolve rapidly. The real opportunity lies in blending these two dimensions.
Imagine a practice where the experienced adviser mentors on the nuances of client relationships, ethical dilemmas and longterm strategy, while the younger adviser drives efficiency with digital tools, automated workflows and fresh marketing ideas. One ensures the advice is wise; the other ensures it is relevant. Together, they provide continuity that reassures clients their financial wellbeing will outlast market cycles, leadership transitions, and even generational shifts.
From succession to legacy
Many practices talk about succession planning as a handover of business. But the generational divide highlights something more important: legacy. A firm that cannot bridge internal generational gaps will struggle
Questions to ask your team
Do we serve clients in the ways they prefer – or only in the ways in which we are comfortable?
• How are we preparing to retain the next generation of our clients’ families?
• Where could we save time with technology, and where is the human touch non-negotiable?
• Younger advisers: Digital fluency, accessibility, fresh ideas, new ways to connect with younger clients.
• Together: A blend of wisdom and relevance that builds continuity across generations.
Bridging the divide –three practical steps
1. Mentorship circles: Pair experienced advisers with younger team members for two-way learning.
2. Client segmentation: Match clients with advisers based on preference –traditional or digital-first.
3. Technology with training: Don’t just adopt tools – ensure all generations in the practice are comfortable using them.
to retain client families across generations. Conversely, a firm that integrates the strengths of both experienced and nextgeneration advisers positions itself not just to survive, but to grow.
Ultimately, financial planning is not about transactions, it’s about transformation. It is about guiding families through life’s most difficult choices, across decades. To achieve that, advisers must first cross the generational divide within their own ranks. When they do, the reward is more than business continuity. It is the ability to offer clients a partnership that feels both timeless and forward-looking, a rare balance in a world where change is the only constant.
By Francois du Toit CFP® PROpulsion
Business first, technology second
Most financial advisory practices operate like three separate businesses under one roof. They have a financial planning process, a client engagement process, and various technology tools – but these elements rarely work together. This creates inefficiency, compliance risks, and missed opportunities that competitors are starting to exploit.
Here is the secret: when you properly align your planning process, client engagement model, and technology stack, you create a competitive advantage that becomes very difficult for others to match.
The problem hidden in plain sight
Many South African advisory practices struggle with alignment because they start from the wrong place. They see a flashy new CRM system or AI tool, get excited about its features, and make the purchase. Only later do they realise the technology does not fit their actual business processes or client needs.
This backwards approach explains why so many technology implementations fail. The practice has invested significant money and time into systems that end up being used as expensive digital filing cabinets.
The root issue is not knowing what problems you are trying to solve. Before looking at any technology, you need clarity on your current challenges:
• Where do clients get frustrated with your process?
• What manual tasks eat up your advisers’ time?
• Which compliance requirements create bottlenecks?
Without this clarity, you will be overwhelmed by options and make decisions based on features rather than fit.
Why alignment matters more than ever
The Financial Sector Conduct Authority has moved beyond tick-box compliance to focus on fair client outcomes. The upcoming Conduct of Financial Institutions Bill will require practices to show consistent, defensible advice processes across all client interactions. Manual, paper-based systems that rely on individual adviser discipline will not meet these expectations.
Regulators increasingly expect systems that can provide comprehensive audit trails and show they have quality control.
Technology and artificial intelligence have become the only equaliser in this environment, as Anton Swanepoel of Trusted Advisors shared with me, and I cannot agree more.
Smaller practices can now compete with larger firms by using technology to automate compliance checks, streamline workflows, and deliver consistent service quality.
The aligned practice advantage
When your three core elements work together, you create what industry experts call a ‘high tech, high touch’ model. Here is how it works. Your financial planning process defines the structure:
• The six-step framework ensures thorough, compliant advice
• Your client engagement model brings this process to life through meaningful conversations and trustbuilding activities
• Your technology enables both by automating administrative tasks and providing the data insights needed for personalised service.
The magic happens when all three work together. Client information entered once flows automatically through your CRM to your financial planning software to your client reporting tools. This eliminates doublehandling, reduces errors, and creates capacity for higher-value activities.
More importantly, this creates a feedback loop. Your technology captures rich data about client interactions and outcomes. This data helps you refine your processes and identify new service opportunities. Your improved processes generate better client engagement, which produces even richer data.
Others using isolated systems cannot match this level of efficiency and insight.
Overcoming implementation barriers
The biggest barriers to alignment are not technical, but psychological and strategic. Many use their age
or perceived technology limitations as excuses for avoiding necessary changes. Others claim they lack time or resources to implement new systems.
These excuses miss a fundamental truth: the cost of not changing far exceeds the investment required for alignment. Practices that continue with manual, disconnected processes will find themselves unable to compete on service quality, efficiency, or compliance standards.
“The biggest barriers to alignment are not technical, they are psychological and strategic”
The solution is a phased approach. Start with establishing a robust CRM as your single source of truth. Once this foundation is solid, add your core planning tools. Then add clientfacing technology like secure portals. Finally, experiment with AI tools to boost your capabilities. Each phase builds on the previous one, creating sustainable progress without overwhelming your team or budget.
Bonus tip: Speak to your existing providers, present the problem you want to solve or process you want to implement, and ask them to show you how they do it. In most cases, your existing system can already do what you need.
My final thoughts
Alignment is about creating systematic competitive advantages. When your planning process, engagement model, and technology work together seamlessly, you free up time for the high-value human interactions that build lasting client relationships.
The question is not whether you need alignment, but how quickly you can achieve it before your competitors do.
Stay curious!
By Boland Lithebe Security Lead for Accenture, Africa
AFour essential actions to safeguard AI adoption in South Africa
rtificial intelligence has become one of the most transformative forces shaping business today. From banks rolling out AI-driven fraud detection, to retailers using algorithms for personalised recommendations, and hospitals adopting diagnostic tools, AI is now woven into the fabric of South Africa’s economy. But with these gains come new risks. The same systems that promise efficiency and innovation also open doors to cyber threats, model manipulation, and data breaches. For South African businesses, securing AI is not only about safeguarding operations, but also about protecting customer trust, meeting regulatory requirements, and ensuring competitiveness in an increasingly digital economy. Four actions stand out as critical for organisations looking to build confidence in AI while mitigating its risks.
1
Build trust through security and governance
The first action is to develop and deploy a fitfor-purpose security governance framework and operating model that accounts for the realities of an AI-disrupted world. Too often, AI adoption in South Africa is happening faster than the frameworks designed to govern it. While regulations such as the Protection of Personal Information Act (POPIA) set guardrails around data usage, they were not built with generative AI and large-scale machine learning in mind. A modern governance model must bridge this gap, establishing clear accountability across boards, executives, and technology leaders. For instance, if an AI credit-scoring model unintentionally discriminates or is manipulated, who is responsible – the CIO, the data science team, or the board? Defining these lines of accountability ensures risks are not overlooked. Governance should also align AI security with business objectives, recognising that secure, trustworthy AI is not only a compliance issue but also a competitive differentiator. In South Africa’s highly regulated industries like financial services and healthcare, organisations that can demonstrate strong AI governance will build trust faster with customers, regulators, and investors alike.
2 Embed security in development and deployment
The second action is to design a digital core that is generative AI secure from the onset by embedding protection into AI development, deployment, and operational processes. Many South African companies are eager to experiment with generative AI tools to drive efficiency, whether for customer service
chatbots, content generation, or supply chain optimisation. But adopting these technologies without embedding security upfront is risky. Consider a retailer using a generative AI model to interact with customers online – if that model is not secured, it can be manipulated through prompt injection attacks, leading to reputational damage or even fraudulent transactions.
By embedding security into development and deployment from the beginning, businesses can avoid costly retrofits. Secure coding practices, adversarial testing, data validation, and strong identity access controls must be treated as standard. South African organisations building digital cores should also focus on interoperability, ensuring that AI systems integrate securely with legacy infrastructure. This approach not only reduces vulnerabilities but also allows businesses to innovate with confidence, knowing that their AI is designed for resilience rather than patched as an afterthought.
3 Counter emerging threats
The third action is to maintain resilient AI systems with secure foundations that proactively address emerging threats. AI environments are dynamic, and so too are the risks. A model trained today can be vulnerable tomorrow as attackers find new ways to exploit it. South Africa has already seen an uptick in cyberattacks targeting critical infrastructure and the financial sector. Adding AI into the mix multiplies the threat landscape. To counter this, businesses must enhance detection capabilities, enable robust model testing, and improve response mechanisms.
Continuous monitoring is key – systems must be able to detect anomalies in both inputs and outputs, such as attempts to feed poisoned data into training sets or unusual behaviour in live models. Beyond monitoring, response mechanisms must be agile. A static security approach will not keep pace with evolving AI threats. Instead, South African businesses need to invest in AI-specific incident response playbooks, red-teaming exercises, and resilience testing to ensure they can recover quickly when incidents occur. Building resilience also means planning for systemic risk: if one AI system fails or is compromised, there should be contingency measures in place to keep core business functions running.
4 Use AI to protect AI
The fourth action is to reinvent cybersecurity with generative AI by leveraging it to automate security processes, strengthen
defences, and detect threats sooner. This is where AI becomes both the problem and the solution. While generative AI introduces risks, it also offers powerful tools to combat them. In South Africa, where cybersecurity skills are in short supply, generative AI can help close the gap by automating routine security tasks such as log analysis, anomaly detection, and threat hunting. This frees up skilled professionals to focus on higher-value activities like strategy and response.
Generative AI can also improve threat intelligence, parsing vast amounts of data from across industries to identify emerging risks before they impact businesses. For example, local banks could use AI-driven monitoring systems to identify fraudulent patterns across multiple payment networks in real time, while telecoms could deploy AI to detect anomalies in traffic that might indicate a breach. By adopting generative AI defensively, South African businesses can build cyber resilience while easing the burden on overstretched teams.
A clear way forward
Taken together, these four actions provide a roadmap for South African organisations navigating the complex intersection of AI and cybersecurity. Governance frameworks ensure accountability and alignment with local regulatory realities. Secure digital cores embed resilience from the ground up, avoiding costly fixes down the line. Resilient AI systems keep pace with evolving threats through continuous monitoring and agile responses. And generative AI, used wisely, strengthens defences in a market facing both growing cyber threats and a shortage of skilled security professionals. For South African business leaders, the urgency is clear. AI adoption will only accelerate, with the potential to transform industries from mining to healthcare. But without robust security, the risks could undermine both trust and progress. By acting now, organisations can position themselves not just as adopters of AI, but as leaders in secure, responsible, and innovative AI deployment. In doing so, they protect not only their own operations but also contribute to a safer and more competitive digital economy for the country.
Technology has quietly but fundamentally reshaped the way financial advisers operate. From sole proprietors running lean practices to large corporates with thousands of advisers, the needs are as diverse as the clients they serve. Yet, one truth remains: effective advice today cannot exist without robust, secure and integrated technology.
“Advisers are becoming increasingly dependent on software,” says Niclaas Roets, from atWORK, a company that specialises in technology solutions for the financial advice industry. “Your client data, your compliance, your reporting – all of it lives in the system. That’s why it’s critical to know whether the technology partner you choose has the security, infrastructure and expertise to support that responsibility.”
For Roets, the shift to cloud-based systems has been a game-changer. No longer burdened by firewalls and in-house infrastructure, advisers now benefit from environments safeguarded by major providers such as Microsoft Azure or AWS.
“We have to balance innovation with accessibility”
But while the technology is available, he cautions that not all advisers fully appreciate the risks: “Many advisers don’t think about cybercrime until something goes wrong. They log in, upload client documents, and trust that it’s all safe. But behind the scenes, we’re running penetration tests, monitoring security policies and making sure the data is protected. That’s the invisible part of advice tech that clients and advisers rarely see, but it’s crucial.”
At the core of this transformation lies one thing: client data. Roets describes it as the most valuable asset an adviser has. A modern CRM system not only houses personal details, but integrates reminders, workflows, campaigns, compliance records and even digital signatures into one secure space. “It’s about centralising the heartbeat of the adviser’s business,” he says. “The more seamlessly those tools work together, the more time advisers have for what really matters, which is their clients.”
As digital tools reshape the advice landscape, one of the biggest shifts underway is the
How atWORK empowers advisers in a tech-driven world
development of client-facing platforms that simplify communication and improve access to information. For atWORK, this is where Client Zone comes in.
“Client Zone is essentially a portal where advisers can allow their clients to log in, view relevant information and even exchange documents securely,” explains Roets. “It’s completely white-labelled, so from the client’s perspective, it looks and feels like their adviser’s own website. They can log in, check values, access investment statements, or upload FICA documents, all in one place.”
The platform has been designed with flexibility in mind: advisers decide exactly what their clients can and can’t see, ensuring control remains firmly in their hands. It also replaces clunky email processes, offering clients peace of mind with greater security and convenience.
Sara-Lee Prinsloo, Marketing Manager at atWORK, notes that Client Zone was developed in direct response to client demand. “Younger clients, in particular, want a more interactive relationship with their advisers. They’re less comfortable with sensitive information being sent over email. Having a secure, easy-touse portal meets that expectation while strengthening trust.”
Bridging the generational gap
Technology adoption is never a one-size-fitsall. The advice profession remains weighted towards older advisers, many of whom aren’t naturally tech-savvy. “In general, advisers tend to be conservative with tech,” says Roets. “And that makes sense because this is an industry built on trust and handling people’s money. With scams and fraud in the news, many advisers are understandably cautious.”
That’s why usability is key. atWORK has rebuilt its CRM platform with simplicity, speed, and stability at the centre. “The easier and cleaner we can make it, the more time advisers can spend where it really matters – talking to clients,” says Roets.
This dual reality – in which older advisers need straightforward solutions, while younger advisers and clients expect more digital interaction – has shaped atWORK strategy. “We have to balance innovation with accessibility,” he says.
Where AI fits in
Artificial intelligence is on everyone’s lips, but how does it really apply to advisers? atWork’s answer lies in using AI to reduce admin and surface insights. Currently, AI is being deployed on the back end to assist developers, but forward-facing applications are also being piloted. One example is the ability to drag and drop policy documents into the system and have client information automatically populated, saving hours of manual data entry.
“This is where AI can be a real game-changer,” Roets explains. “Think about the time advisers spend capturing information from different insurers or investment providers. Soon, all they’ll need to do is upload the policy, and the system will do the rest.”
AI also opens the door to more intuitive insights. Advisers could log into a client’s profile and instantly see key prompts, such as clients approaching retirement, those due for reviews, or those who may benefit from additional retirement annuity contributions. “The tech in the background is complex, but for the adviser, it should feel effortless,” says Roets. “That’s where AI is heading.”
Keeping the human touch
Despite the rise of AI and client portals, both Roets and Prinsloo emphasise that technology is not replacing advisers, it’s empowering them. “Tech should free up time for advisers to focus on what they do best: building relationships and giving personalised advice,” says Prinsloo. “atWORK is a tech company, but we’re also a human company. Adoption support, training, and after-sales service are just as important as the software itself.”
She adds: “Ultimately, clients still choose their advisers because of trust, empathy, and human understanding. Technology is there to enable that relationship, not replace it.”
After nearly three decades in business, atWORK remains clear about its mission: to empower advisers with tools that make their businesses stronger while keeping the client relationship at the centre. “Technology changes fast, but one thing hasn’t changed,” concludes Roets. “Advisers want to spend less time on admin and more time with clients. Everything we do is designed to make that possible.”
How AI is reshaping the investment landscape
The world of investing has always been a hotspot for innovation, but the pace of change has reached unprecedented heights in recent years. From the rise of digital assets to the use of artificial intelligence (AI) in trading, the barriers that once kept everyday people from participating in the financial market are gradually lowering. In 2025, this shift has become even more clear, as innovative platforms and smarter tools are making trading more accessible, transparent and effective.
The new wave of traders In the past, trading was often associated with professionals working on busy exchange floors or institutional investors with deep pockets. For everyday individuals, the market’s complexity, high cost and limited access made it seem like a world far out of reach.
However, a different story is unfolding today. Platforms are emerging that cater to modern investors, such as people who are balancing careers, studies or family responsibilities, but still want to build wealth and understand how the market works.
For this new wave of traders, simplicity and trust matter just as much as advanced tools and insights.
The role of AI in trading
One of the biggest game changers in fintech has been artificial intelligence. AI is no longer a futuristic concept but a practical tool that allows traders to interpret news, monitor trends, and act on opportunities in real time.
For example, some platforms have integrated AI tools that scan global market news and suggest actionable trading signals. Instead of sifting through hundreds of headlines, traders can instantly see how an event might affect a currency pair, stock or commodity. This blend of speed and accuracy is giving individuals a level of insight that was once reserved for large institutions.
A platform built for modern investors
Among the platforms leading this evolution is Doto, a multi-asset broker launched in 2019. While there are many trading apps available today, Doto stands out because of its mission: “Finance for all.” The platform was created to challenge traditional brokers by offering an AI-powered, userfriendly alternative that helps traders make confident decisions.
Doto’s approach combines innovation with accessibility. Its intuitive design makes trading approachable for beginners, while its advanced features, such as AI-driven market signals, transparent pricing, and instant deposits and withdrawals, appeal to experienced traders as well.
Supported by regulations across several global jurisdictions, including Cyprus (CySEC) and South Africa (FSCA), Doto has grown to serve more than 500 000 traders worldwide. In recognition of its efforts, the platform was named Best CFD Broker of 2025 at the World Financial Award and received the title of Most Trusted Broker 2024.
What traders value most
When asked what makes a platform stand out, traders often highlight three things: trust, usability and opportunity.
Trust comes from transparency and regulation. Doto, for example, is a member of the Financial Commission (FinaCom), offering its users added protection through a compensation fund.
Usability comes from design. A cluttered interface can discourage beginners, while a clear, intuitive layout helps build confidence. Doto’s platform is designed for traders at all levels, from someone making their first deposit to a professional managing a diversified portfolio.
Opportunity comes from tools and conditions. From offering CFDs on over 250 assets (stocks, indices, commodities, currencies and crypto) to providing leverage up to 1:500, modern platforms are widening the possibilities for investors worldwide.
“Simplicity and trust matter just as much as advanced tools and insights”
Recognition and growth
Doto’s journey over the past six years reflects the broader evolution of trading. What started as a newcomer in 2019 has grown into a globally recognised broker with multilingual support, localised payment options, and a strong presence in regions like the Middle East, Asia and Latin America. Its achievements at international events, including Best Newcomer Broker MEA 2024 at iFX EXPO Dubai, highlight how platforms can make a real impact by putting people first. Awards aside, its biggest success has been building trust with its global community of traders who want financial tools that work with them, not against them.
Looking ahead
As the market continues to evolve, one thing is clear: Trading is no longer just for the elite. With AI, mobile apps and simplified platforms, the new generation of traders are already looking very different from those in the past. They’re younger, more diverse and more empowered to make decisions.
Platforms like Doto exemplify this trend. By combining technology, regulation and a user-first philosophy, they are not only making trading accessible but also reshaping what financial opportunity looks like in 2025 and beyond.
In a world where financial literacy and independence are becoming increasingly important, tools that simplify complex systems will continue to play a vital role. For the everyday trader, this means one thing: The door to the global market has never been more open.
By Veronica Lukwago Associate Director: Finance Transformation, BDO SA
Enterprise Resource Planning (ERP) implementation represents far more than a technology upgrade; it’s a strategic transformation that can fundamentally reshape how organisations leverage data for profitability and growth. Having guided numerous South African businesses through this journey, I’ve seen firsthand how the right approach to ERP can turn careful planning into measurable profit. The most successful ERP implementations begin by focusing on three critical finance areas that deliver immediate value:
• Treasury Operations become streamlined through automated cash management and real-time visibility into cashflows, enabling better liquidity management and risk control.
• Budget Planning and Forecasting transforms from manual spreadsheet exercises into centralised, automated workflows that improve accuracy and accelerate planning cycles.
• Financial Reporting and Consolidation provides a single source of truth across departments, eliminating the time-consuming reconciliation processes that plague many organisations.
Turning ERP investment into business value: A strategic approach BDO Advisory Services
These foundational improvements replace fragmented, error-prone manual processes with integrated workflows. Instead of relying on static monthly reports, managers gain access to real-time data that supports agile decision-making and strategic focus. Once core processes are automated, the real value emerges through advanced analytics and AI capabilities. Modern ERP systems don’t just centralise data, they transform it into actionable insights that drive profitability.
With integrated analytics, organisations can identify underperforming products or departments while doubling down on profit drivers. AI-enhanced scenario planning capabilities enable ‘what if’ analysis based on data rather than intuition, supporting more robust strategic planning. This analytical layer represents ERP’s true competitive advantage. Organisations applying AI tools to their ERP data are already seeing enhanced profitability through predictive insights into cashflow, market demand, and operational efficiency. While finance often leads ERP initiatives, the greatest value comes from enterprise-wide adoption. Modern ERP systems break down data silos across
procurement, supply chain, HR and sales, creating organisational alignment around a single source of truth. This integration proves particularly valuable during complex business activities like mergers and acquisitions, where disparate data sources can complicate decision-making. A well-implemented ERP provides the real-time, consolidated information essential for successful integration. The most common concern I encounter involves legacy system integration. Here’s how to approach this challenge strategically:
• Plan for complexity: Legacy systems with years of customisation require careful mapping and adjustment. Even cloud solutions marketed as plugand-play demand thoughtful integration planning. Set realistic timelines and budgets while working with experienced integration specialists.
• Implement incrementally: Rather than attempting a ‘big bang’ approach, identify the module or process offering the highest ROI and begin there. Phased implementation reduces risk, enables learning, and builds organisational confidence before expanding to other functions.
Successful ERP implementation requires treating the initiative as a business transformation rather than an IT project. By starting with core finance functions, layering on analytics capabilities, and expanding enterprise-wide adoption, organisations create a foundation for sustained competitive advantage.
At BDO South Africa, we don’t just advise, we elevate. With a global footprint across 166 countries and deep local expertise, our advisory services are designed to help businesses navigate complexity, unlock growth, and future-proof operations.
Whether you’re facing strategic, financial, operational, or digital challenges, our multidisciplinary teams deliver innovative, ethical, and sustainable solutions tailored to your needs. We are bold, collaborative, and driven to be the best, because your success is our purpose. Ready to Elevate Your Business?
Explore our full service offering or visit www.bdo.co.za
By Jaco-Chris Koorts Portfolio Manager, Glacier Invest
PHow Discretionary Fund Manager partnerships transform advisory practices
artnering with a discretionary fund manager (DFM) has long been viewed as a strategic move for advisers looking to outsource portfolio construction, their investment-related compliance burden, and access deep investment research. However, increasingly advisers are discovering that the benefits run far deeper than fund selection or absorbing regulatory burdens. A wellchosen DFM partner not only optimises clients’ portfolios, but it also frees the adviser to focus on what really matters: providing holistic financial advice, deepening client relationships, and elevating your value proposition in a dynamic market environment.
Reclaiming the heart of advice
By lifting the weight of portfolio oversight, a DFM allows advisers to reclaim their time, focus and control – not just over investment outcomes, but over their core value proposition. Imagine channelling hours once lost to fund research and rebalancing into transformative client relationships. With conversations of investment management streamlined, advisers can shift toward life-centred discussions such as financial wellbeing, legacy and goals. This builds stronger relationships, drives engagement, and helps clients see the bigger picture. Advisers can thus sharpen their focus on holistic advice.
Silencing the compliance noise
South Africa’s regulatory landscape demands meticulous documentation that can drown advisers in paperwork. Advisers face increasing regulatory demands around investment suitability, portfolio construction, and ongoing governance. Meeting these compliance requirements requires significant time, resources, and robust governance frameworks. Herein lies a profound DFM benefit: a DFM can absorb the day-to-day portfolio oversight, monitoring and identifying compliance breaches more quickly, and then adjust portfolios timeously. They ensure Regulation 28 adherence, maintain auditable rebalancing trails, and document best-execution practices using verified research tools. By acting as your institutional-grade safeguard, DFMs mitigate regulatory risk while you concentrate on pure advisory work – turning investment compliance from a threat into a managed function. The operational efficiencies gained by utilising a DFM, such as rebalancing all clients linked to a specific model portfolio at the same time, also means your practice runs like a well-oiled machine.
The scalability imperative
“A DFM can create the space for advisers to evolve as business owners”
Advisers can expand into untapped client segments, such as the next generation of wealth, small business owners, or even underserved demographics, without diluting the quality of advice given. They can also develop scalable advice models using digital tools or hybrid solutions to service the wider client base. Reduced investment admin means more time to work on their practice, not just in it. Whether it’s refining the client proposition, mentoring junior advisers, or improving internal processes, a DFM can create the space for advisers to evolve as business owners. DFMs handle the mechanics of portfolio management – from asset allocation to tactical shifts – freeing the adviser to focus on deeper client relationships and business growth. This is where true adviser value lives: not in spreadsheets, but in the trusted human connection that clients cannot replicate via algorithms or online platforms.
As advisory practices grow, in-house portfolio management can quickly reach a breaking point. What may begin as a cost-effective and controlled approach often becomes weighed down by hidden or escalating costs – salaries for analysts, premium data terminals, and proprietary software – creating unsustainable fixed expenses. These costs have the potential to erode profitability and make it harder to scale sustainably. Moreover, the risk of staff turnover introduces a real vulnerability: a key member leaves during a critical market cycle, disrupting client portfolios and compromising client outcomes. Most crucially, capacity constraints emerge as more time must be spent on portfolio oversight. Contrast this with an outsourced DFM solution where all these risks are mitigated, and the high fixed costs are exchanged for a variable cost linked to AUM. This model transforms scalability from a logistical challenge into a strategic accelerator, granting immediate access to local and global research and execution capabilities.
Redefining client perception
In today’s market, clients seek advisers who act as strategic architects – not product salespeople. Industry research indicates that clients perceive DFM-backed advisers as
significantly more credible for complex wealth management. This partnership elevates your proposition profoundly: you become the conductor orchestrating specialists, rather than trying to play every instrument yourself. By entering into a strategic partnership with a DFM, you gain the ability to offer world-class investment strategies through cutting-edge research, access to alternative investments, and dynamic asset allocations – democratising solutions once exclusive to the ultra-wealthy. Your clients now view you as their lifelong wealth strategist, not a transactional vendor.
Choosing your strategic ally
Selecting the right DFM demands careful consideration of philosophical alignment and operational fit. Choose a partner whose investment approach mirrors yours – whether that’s active alpha generation or low-cost passive blends, or a combination of the two. Demand absolute fee transparency, including both management fees and underlying costs, and insist on clear and efficient operational processes and reporting standards. Crucially, verify their local expertise: Can they articulate how South African realities influence portfolio decisions, and how this scales up into a globally relevant portfolio? Finally, assess customisation depth: Ensure they can accommodate client-specific exclusions without compromising the servicing and investment model’s integrity. As Solutions Architects, Glacier Invest ticks all these boxes.
The strategic horizon
For South Africa’s financial advisers, the DFM partnership represents far more than operational relief. It’s a fundamental repositioning – from a potentially overwhelmed portfolio administrator to an empowered wealth visionary. By delegating investment execution, you reclaim your highest-value role: understanding your clients’ deepest financial aspirations and guiding them with behavioural wisdom. In an era of relentless complexity, integrating a DFM into your advisory practice is becoming essential to sustainable growth. The most successful future practices will leverage these partnerships to redefine the very essence of trusted advice in our uniquely challenging market.
DFMs are moving the SA advice industry forward
By Sandy Welch Editor, MoneyMarketing
The role of Discretionary Fund Managers (DFMs) in South Africa has changed dramatically over the past decade, shaped largely by regulatory developments and the need for greater professionalism in investment management.
According to Leigh Kohler, Head of DFM at INN8 Invest, the concept emerged when regulators began exploring reforms similar to the UK’s Retail Distribution Review (RDR). “The industry was preparing itself for a UKlike outcome where financial advisers would be expected to focus purely on advice, while another licensed category would take responsibility for fund selection and portfolio construction,” he explains.
In South Africa, this separation became clear through the licensing regime: a Category I licence allows for advice only, while a Category II licence enables investment management. DFMs, operating under Cat II licences, therefore gained the authority to manage client portfolios with discretion, handling fund research, due diligence and implementation on behalf of advisers.
“This is when the DFM industry really began to take hold,” says Kohler. “It became a core part of the retail investment landscape in the last 10 years. In essence, a DFM professionalises the investment process for advisers, freeing them to focus on client relationships, outcomes and financial planning, while ensuring portfolio construction is backed by rigour and discipline.”
Kohler notes that many advisers historically built their value proposition around their own fund-picking skills. However, they were often acting outside the scope of their licence. The emergence of DFMs addressed this gap by formalising investment management, creating model portfolios or fund-of-fund solutions aligned with the adviser’s advice process. “It enhances the adviser’s value proposition rather than taking it away,” he adds.
Bridging the gap between advice and asset management
As DFMs are positioned between financial advisers and asset managers, they can be a partner to both sides, helping advisers deliver tailored investment solutions while leveraging institutional relationships with asset managers.
“As a DFM, we see ourselves as true partners,” says Kohler. “We’re able to bring the two worlds together, supporting advisers with the right
portfolios for their clients while also engaging deeply with asset managers to ensure the best possible outcomes.”
For Kohler, one of INN8’s key differentiators lies in its long and proven track record. While the INN8 brand is relatively new, the business has deep roots. “Our heritage goes back more than 25 years, through the legacy of Standard Multi Manager,” he explains. “We’ve been running money both locally and globally for decades. In fact, our first global portfolio was managed by our London team and today boasts a 25-year performance history.”
That track record underpins another advantage: institutional scale. “We are one of only a very few DFMs able to secure institutional fees from asset managers,” Kohler says. “That means we can negotiate the best possible costs in the market, lower than standard DFM fees, which translates directly into cost savings for clients.”
Customisation
at the core
Cost efficiency is only part of the equation. For Kohler, the ability to customise solutions for advisers is just as important. Some DFMs adopt a ‘cookie-cutter’ model, offering standardised portfolios to all clients. INN8 Invest takes a different approach. “We will do what the adviser needs for their practice, based on their advice process,” says Kohler. “Our proposition is flexible and moulded around the adviser, not the other way around.”
An example of this client-centric approach is INN8 Invest’s Dynamic Income Solution, launched after extensive consultation with advisers and asset managers about the challenges of managing living annuities. “Living annuities allow flexibility, but that also creates complexity,” Kohler notes. “Our solution mirrors the way advisers already manage their clients’ annuities, but adds science, automation and consistency to the process. It’s intuitive, effective and has been very well received.”
Harnessing technology
Like the broader industry, DFMs are also being reshaped by technology. INN8 Invest has developed technology portals that advisers can white-label with their own branding, providing access to fund fact sheets, quarterly reports, investment tools and investment reporting, all in one place.
“Technology has fundamentally changed how we interact with advisers,” Kohler explains. “Our Chief Investment Officer has built AI and machine-learning systems into our manager selection processes. These tools sharpen our decision-making by improving the quality of data and generating valuable insights.”
Looking ahead, INN8 Invest is even exploring large language models to create a ‘virtual investment specialist’ capable of answering advisers’ technical questions in real time. “We’re not replacing human relationships,” Kohler stresses. “Trust, empathy and personal engagement remain central. But by combining human judgement with technology, we can give advisers better tools, faster answers and more efficiency.”
Lightening the compliance load
Another major driver of DFM adoption is regulation. With new rules like the Conduct of Financial Institutions (COFI) Act on the horizon, advisers face a growing compliance burden. “Many advisers aren’t fully prepared for the regulatory changes coming their way,” Kohler says. “Using a DFM removes a significant portion of the investment compliance responsibility, including Regulation 28 monitoring and mandate oversight. That frees advisers to focus on other parts of their practice that will be directly affected by COFI and Treating Customers Fairly requirements.” This discipline also reduces risk within practices.
Creating multiple forms of alpha
Ultimately, Kohler argues, a good DFM should deliver value on multiple levels. “There’s investment alpha, which is performance above the benchmark. But there’s also practice alpha, the efficiency and profitability an adviser gains by outsourcing investment management. And then there’s advice alpha, the value an adviser adds by spending more time with clients, providing reassurance, and improving the quality of advice.”
He believes this ‘DFM multiplier’ is what sets the model apart. “It’s not about replacing the adviser’s role; it’s about enhancing it. By saving time, lowering costs, reducing risk and improving investment rigour, DFMs free advisers to do what they do best: building strong client relationships and guiding them toward their financial goals.”
By Ray Mhere CEO of Curate Investments
Unlocking global investment opportunities with Curate Investments
In today’s fast-paced and complex financial landscape, investing can feel overwhelming – especially when confronted with the staggering choice of almost 144 000 unit trust funds globally. While more options can be enticing, too many can lead to confusion instead of clarity. That’s why we have dedicated ourselves to simplifying global investment choices, making it easier for you to navigate the investment world.
Our philosophy is straightforward: More isn’t always better. Better is better. Curate Investments was founded to handpick the best people from all over the globe and make their expertise accessible to your clients. We go beyond merely analysing numbers; our investment manager selection process digs deep into the philosophy behind those numbers, making sure every manager we partner with shares our core values and maintains a repeatable, riskaware investment process.
Through our extensive global partnerships, we have access to exceptional investment teams, who have consistently proven their ability to deliver impressive results. Our thorough vetting process involves not just reviewing investment return metrics, but also meeting with the managers and testing their investment conviction. This hands-on approach allows us to ensure alignment with our clients’ needs and expectations.
Take, for instance, the Curate Global Sustainable Equity Fund, managed by Robeco, one of Europe’s largest fund managers. This fund has consistently ranked in the top quartile of its peer group, showcasing strong returns throughout its track record. Robeco formulated how to use data to construct portfolios and enhance client returns by using various data signals (including value, quality, momentum and
sustainability) to optimise stock allocation relative to developed market index.
Similarly, the Curate Global Emerging Markets Equity Fund, also managed by Robeco, has shown historically consistent returns. Robeco aims to outperform emerging market index in dynamically growing sectors such as technology and consumer goods, ensuring exposure to areas with significant growth potential yet typically underrepresented in many South African portfolios. This strategy resonates particularly well with investors seeking diversification beyond traditional developed markets.
For the first time in South Africa, we’re also bringing investors exclusive partnerships with Jennison Associates, Lyrical Asset Management and Evenlode Investments – investment managers renowned for their successful and differentiated investment strategies. Through these managers, we have launched three global active equity funds designed to provide unique attributes to a globally diversified portfolio.
Lyrical, from the US, manages the Curate Global Value Equity Fund and is known for its innovative deep value approach. Through carefully analysing only the cheapest 20% of shares across the world, Lyrical’s aim is to find the Gems Amid the Junk™.
Then there is the Curate Global Quality Equity Fund, managed by Evenlode from the UK. The fund invests in companies with high levels of profitability and competitive advantages that are hard to replicate.
Jennison, from the US, manages the Curate Global Growth
Equity Fund and invests in market-leading companies showing rapid growth, and hunts for the structural winners in terms of innovation and disruption.
We believe every investor deserves access to a world of opportunities, whether you’re seeking low-cost systematic strategies, high-conviction growth investments, deep value opportunities or quality compounders. Our carefully selected funds are designed to accommodate diverse investor preferences and risk tolerances, guided by distinct investment philosophies.
Navigating the global investment landscape doesn’t have to be a solo journey. Our team is here to guide you through the process, ensuring you have the knowledge and resources you need to make informed decisions. With Curate Investments, you gain a partner committed to your clients’ financial success, empowering you to focus on what truly matters: helping your clients achieve their financial goals.
For more information, please connect with a Curate fund specialist or visit our website at curateinvestments.co.za
Why unit trusts are still relevant for every portfolio
MoneyMarketing spoke to Ryan Basdeo, Head: Index Portfolio Management at 1nvest about key trends in the unit trusts environment, the importance of these investments, and what the future holds for them.
How does 1nvest position its unit trust offering within the broader South African investment landscape?
1nvest positions its unit trusts as easy to understand, transparent, and cost-effective investment portfolios applicable to a wide range of investors. Being a centre of excellence for index tracking funds under the Standard Bank Group, 1nvest offers local and global index-tracking unit trusts and ETFs that provide diversified exposure across asset classes and geographies. Their focus is on constructing portfolios utilising a set of rules that aim to replicate the return of an index such as JSE Top 40 of S&P500. Therefore, making it easier for investors to access market returns without needing deep financial expertise in understanding what they are invested in.
What key trends are shaping demand for unit trusts among financial advisers and their clients right now?
There is the growth in multi-asset and global equity funds, driven by Regulation 28 and the increased offshore allowance of 45%, alongside strong investor appetite for diversification. ESG integration is also gaining traction, as more clients seek responsible investment options, while technological advancements are improving access and transparency. In addition, there is a growing preference for passive strategies due to their lower costs and simplicity, with advisers and clients alike recognising the alarming long-term impact that compounding fees can have on savings returns.
How can advisers use unit trusts as building blocks in a diversified client portfolio?
Unit trusts allow advisers to combine equity, bond, property and money market funds to align with each client’s risk profile, while adding global funds to hedge against local market volatility. They can leverage index funds for core exposure and complement them with active strategies for alpha generation, while tailoring portfolios through 1nvest’s local, global and commodity ranges. In addition, niche options such as the S&P 500 Information Technology and Global
Bond funds allow advisers to fine-tune risk and return profiles to suit specific client outcomes.
What differentiates 1nvest’s unit trusts from those of other providers in terms of performance, cost or structure?
We offer a combination of low fees, with index funds offering lower total expense ratios than active funds, and strong tracking efficiency, as our products are designed to closely replicate benchmark indices with minimal tracking error. Transparency is another key strength, with clear fee structures and daily NAV pricing that stand out in an industry where disclosure is often complex. 1nvest brings passive expertise underpinned by deep research capabilities and consistent index replication, supported by scalable systems such as BlackRock’s Aladdin –a first on the continent.
How do your products cater to different client profiles, from first-time investors to high-networth individuals?
First-time investors benefit from low entry thresholds, simplified portfolios, and balanced fund solutions, with most funds also qualifying for TFIA accounts. More experienced investors can access diversified global exposures, ETFs and niche sector opportunities; while highnet-worth clients are able to blend passive and active strategies to shape portfolios that support their long-term growth objectives.
What role do passive strategies and index tracking play in your unit trust range?
Passive strategies are central to 1nvest’s philosophy. It’s our foundation and will continue to be. We believe in a systematic, rulesbased approach to investing and leveraging technology to make this scalable for both the manager and investors.
How do you see unit trusts fitting into retirement planning and long-term wealth creation strategies?
Unit trusts play a valuable role in both retirement planning and long-term wealth creation strategies. Within retirement annuities, they can be used to ensure Regulation 28 compliance. For those focused on long-term growth, unit trusts provide access to equity and balanced funds that are structured to deliver consistent returns over time. Unit trusts also offer notable liquidity and flexibility compared
“Unit trusts allow advisers to combine equity, bond, property and money market funds to align with each client’s risk profile”
to some other investment vehicles. Furthermore, they support diversification by spreading investments across asset classes and sectors, which helps reduce risk throughout different market cycles, making them a sensible core holding for those seeking to build and preserve wealth over the years.
How is 1nvest addressing the issues of transparency, cost efficiency and regulatory compliance in its funds?
We ensure investors have access to transparent pricing and daily net asset value (NAV) updates, making it easy to monitor fund performance in real time. Our focus on low-cost index tracking means fees are kept to a minimum, which directly benefits investors seeking cost efficiency. Regulatory compliance is maintained by registering with the FSCA and adhering to the requirements of the Collective Investment Schemes Control Act (CISCA), supported by a solid internal compliance function. 1nvest provides clear disclosures on tracking error, fund structure and portfolio holdings, all of which are readily available on its website at any time. In addition, the use of best-in-class technology provides robust safeguards before and after portfolio events, and enables realtime reporting to compliance teams.
Looking ahead, what innovations or developments can advisers expect in the unit trust space, both locally and globally?
Advisers can expect continued growth in ESG and thematic funds, reflecting investors’ increasing interest in responsible and trend-driven investing. There will be more opportunities to access alternative asset classes, such as infrastructure, which can complement traditional holdings. Enhanced digital platforms will make it easier to access and monitor unit trusts; and global diversification will become more prominent as clients seek returns beyond South Africa’s borders.
By Jarred Houston Equity Analyst and Co-Portfolio Manager at All Weather Capital
Racing the odds: Why hedge funds belong in South African portfolios
South Africans understand risk better than most. Our markets tend to swing with every domestic political event, commodity price move, every budget speech, and every global tremor. As a small but open emerging market economy, we are increasingly at the mercy of global macro and geopolitical news flow. Too often, investors respond by clinging to yesterday’s favourites, only to discover that the odds have already shifted. Hedge funds offer something different: the flexibility to tilt the odds in your favour and to manage risk more dynamically.
Steven Crist, in his seminal writing on value, likened investing to betting on horse racing: “The issue is not which horse in the race is the most likely winner, but which horse or horses are offering odds that exceed their actual chances of victory.” A horse at 2-to-1 with only a 25% chance of winning is a poor wager. A less fancied runner at 10-to-1, if its true odds are 20%, represents value. In investing, the same holds true. Too often, buy or sell decisions are made without a clear understanding of the expectations embedded in a share price. Performance-chasing without weighing
risk against reward is a common trap. Hedge funds are built to think differently. A highly rated company or sector that has performed well recently is by no means guaranteed to continue that trend, especially if exceptional results are already priced into the stock. A blue-chip company might still be the ‘favourite’, but that doesn’t make it the best investment when the risk-adjusted return no longer justifies the bet.
Unlike traditional funds chained to benchmarks, hedge funds can go where the value is – and avoid where it isn’t. Hedge funds ignore benchmark weightings, and they don’t need to remain fully invested when markets look overhyped. They can hold cash, hedge exposures, or even short crowd favourites when valuations defy logic. Just as importantly, hedge funds are not trying to ‘shoot the lights out’. Their goal is steady, risk-adjusted returns that may lag when a narrow set of shares surges, but which compound more reliably over time.
Crist made another observation that resonates with investing: “You are only playing against the other bettors at the track, not against the game or the house.” In South Africa’s volatile, sentiment-driven market, nimbleness is an edge that size alone cannot buy. With a market dominated by a handful of shares and a currency that swings with every headline,
What the new tax rules could mean for unit trust investments
National Treasury’s proposed amendments in the draft Taxation Laws Amendment Bill, 2025 (TLAB) aim to close what it views as loopholes in the taxation of Collective Investment Schemes (CISs), including unit trusts. If implemented, these changes will have significant consequences for both fund managers and investors.
These changes may come into effect from 1 March 2026 and are designed to stop what Treasury calls ‘tax avoidance’, but they could affect ordinary investors too. Here’s what you need to let your clients know:
1. Tax when assets move into a unit trust
Currently, investors can transfer listed shares into a CIS on a tax-neutral basis under section 42 of the Income Tax Act. The CIS could then sell the shares without triggering capital gains tax (CGT) at the fund level. This rollover relief will now be removed. For investors, this means contributing assets to a unit trust may become an immediate taxable event, raising upfront costs and discouraging such transfers.
2. Tax when funds merge
When two unit trusts merge, investors currently just swap units without a tax bill. From 2026, this swap will trigger CGT as if you sold your old units, even if you stay invested. While you’ll get a higher ‘base cost’ for your new units, the tax will be due sooner.
3. Tax on certain distributions
If a unit trust pays out money to investors that isn’t interest or dividends, for example, returning part of your original investment, this will be treated as a capital gain and taxed. In some cases, this could mean paying tax even though you haven’t made a profit.
What this means for clients
• They might pay tax sooner than before, especially when funds merge or assets are shifted into unit trusts.
Some distributions could carry unexpected tax bills.
• Staying invested for the long term may
investors need more than buy-and-hold. They need tools that balance risk and reward, allowing for multiple, nuanced positions rather than all-or-nothing punts on a concentrated index. Hedge funds provide exactly that.
Scale also matters. The South African hedge fund industry remains small compared with the vast pools of capital managed by traditional firms. This relative agility allows hedge funds to move capital quickly, to enter and exit positions efficiently, and to exploit opportunities beyond the large liquid names.
Crist’s advice applies here too: “Recognise the difference between picking horses and making wagers in which you have an edge.”
Investors should see an investment in a hedge fund not as an isolated ‘bet’. Rather, they need to appreciate how they can increase their overall risk-adjusted return by adding hedge funds to their existing portfolio. There is very compelling evidence that the addition of a hedge fund to a traditional Reg 28 fund reduces risk and increases returns.
In the short term, it is difficult to separate skill from luck in both racing and investing. But the considered investor – who places bets only when confident the odds are in their favour – will, over time, enjoy a far greater chance of success.
become even more important to avoid triggering unnecessary tax events.
Impact on unit trusts and investors
Investors: Face earlier and potentially higher tax liabilities, particularly during fund mergers or unusual distributions.
• Unit trusts: May need to rethink how they structure mergers, capital allocations and product design to minimise negative tax outcomes for investors.
• Market behaviour: The disincentives may reduce CIS use for tax planning, with a stronger emphasis on traditional ‘buy-and-hold’ investment rather than portfolio manoeuvres.
Unit trusts remain an accessible and effective way to invest, but from 2026, the tax treatment will become stricter. It’s a good time to speak to your adviser about how these changes could affect your portfolio and whether any adjustments are needed before the new rules take effect.
By Farzana Bayat Portfolio Manager at Foord Asset Management
Rising debt burdens across developed and emerging markets are reshaping the fixed income landscape. In the United States, government revenue of around $5tn is set against expenditure of $7tn – a $2tn annual shortfall. That fiscal gap, which widened post-Covid, mirrors the trajectory seen in South Africa during the Zuma era, when spending escalated to unsustainable levels. Once public finances unravel, restoring discipline becomes extraordinarily difficult.
Policymakers in Washington show little appetite for fiscal restraint. Instead of cutting spending, the reflex has been to stimulate growth through lower interest rates. This lack of fiscal discipline is evident globally and represents a significant risk for bond investors.
The end of easy money
What makes the debt dynamic more concerning is the end of the ultra-low interest rate era. For more than a decade after the global financial crisis, rates were close to zero and debt servicing costs were negligible. That is no longer the case. Today, around 20% of US government revenue is spent purely on interest payments, crowding out spending on critical services like healthcare.
Markets are starting to push back. In April, a tariff-driven risk-off episode saw bond yields rise even as the dollar weakened – the opposite of its typical safe-haven response. It was a warning sign that investors are questioning the sustainability of America’s fiscal position.
South Africa’s debt trap
South Africa faces the same headwinds. Government debt has ballooned sixfold in 15 years to almost R6tn, yet growth remains anaemic. Budget revisions underscore the pressure: tax revenues are faltering, households and corporates cannot be squeezed further, and demands on frontline services such as healthcare and education keep rising. Already, R22 of every R100 in tax revenue is spent on servicing debt before a cent is allocated to service delivery.
Debt stabilisation requires stronger real GDP growth or higher inflation, as both feed nominal GDP. Yet neither is in sight. Growth has averaged just 0.7% over the past decade, with forecasts still below the 2–2.5% required to stabilise the debt trajectory. Meanwhile, the South African Reserve Bank’s proposed 3% inflation target risks suppressing nominal GDP further. This argues for caution on long-dated government bonds, which are most vulnerable to fiscal drift and weak growth.
fi ex d incomeopportunity
T“ILBs are unique: they are the only asset class that guarantee a real return”
Why inflation-linked bonds shine
Amid this turbulence, inflation-linked bonds (ILBs) stand out as one of the most compelling opportunities in fixed income. Real yields are now around 5% - the highest in 25 years.
ILBs are unique: they are the only asset class that guarantee a real return. For multi-asset funds benchmarked to CPI, they are a natural building block. The ability to lock in a 5% real yield on a low-risk, government-backed asset is both rare and compelling in today’s world of high debt and policy uncertainty.
Breakeven inflation levels reinforce the case. Five-year breakevens have fallen from 5-6% to around 3.5%, reflecting an optimistic inflation outlook. If inflation proves higher, ILBs outperform nominal bonds. If it proves lower, investors still secure 5% above inflation. This asymmetric payoff profile provides both upside and downside protection.
Mispriced credit risks
The same cannot be said for South Africa’s corporate credit market. Historically, lending to corporates attracted a higher yield than lending to government. Today, some corporates borrow at lower yields than the sovereign. This is a function of demand and supply. Corporate borrowing has been weak amid subdued growth and limited capital investment.
At the same time, demand has surged due to the proliferation of income funds, with too much capital chasing too little paper. Spreads have compressed to levels that no longer compensate for the risk. In some cases, investors are effectively accepting lower yields for higher risk – a distortion that makes little sense.
For disciplined investors, patience is essential. True opportunities tend to emerge only during dislocations, when spreads widen and attractive yields can be locked in on high-quality names. Outside of such periods, caution is warranted.
A conservative path forward
Prudence should guide fixed income portfolios in this environment. Long-duration government bonds remain vulnerable, and corporate credit exposure is best kept limited. Inflation-linked bonds, by contrast, offer stability, inflation protection and strong prospective returns.
With global debt burdens climbing, the era of ultra-low interest rates behind us, and fiscal uncertainty persisting, ILBs stand out as one of the rarest opportunities in fixed income: government-backed, inflation-protected and offering real yields at multi-decade highs.
Private equity in Southern Africa is regaining its stride
Southern Africa’s Private Equity (PE) industry is entering a phase of cautious optimism, with both firms and investors showing renewed confidence despite fundraising pressures and geopolitical concerns. This is according to the SAVCA Private Equity Industry Survey 2025 released in August.
“After years of navigating economic headwinds, political uncertainty and shifting investor sentiment, this latest survey paints a picture of an industry that is turning the page,” says Nicola Gubb, SAVCA’s Interim Executive Director. “Firms and investors alike are refocusing on dealmaking, exploring new strategies, and reaffirming their commitment to long-term transformation.”
Dealmaking gathers momentum
The survey, which covers the 2024 PE investment period, reveals a significant acceleration in investment activity and strong portfolio performance. This is despite funds raised in 2024 totalling R8.4bn – a steep decline from the record R28.1bn in 2023.
“Nevertheless, 2024 emerged as the highest dealmaking year by value and second largest by volume since 2018, with capital deployment reaching R26.6bn across 228 deals, compared to R15.7bn across 146 deals the year before,” says Gubb. Infrastructure led the way, accounting for 27% of investment value, followed by energy (13%) and IT (12%). Portfolio performance also demonstrated resilience. Two-thirds (66%) of portfolio companies achieved revenue growth above inflation from 2022 to 2024, with the IT sector leading at 85%, followed by healthcare at 67%. Over 40% of portfolio companies also reported employment growth above 5% during the same period, showing private equity’s tangible role in job creation.
New board members for SAVCA
While exit proceeds declined to R17.1bn in 2024 from R21.3bn in 2023, the number of exits increased from 45 in 2023 to 52 in 2024. An encouraging element for exits was the return of disposals through the public markets – with one exit through the sale of public shares and one through an IPO listing.
Gubb comments: “Exits are gaining momentum and the increase in activity is a positive sign. The industry is also demonstrating prudent deployment of capital, with dry powder being actively invested. This is a clear signal of confidence in the opportunities available.”
Private credit gains traction as an alternative strategy
In response to the region’s evolving capital needs, local PE firms are increasingly viewing private credit as an attractive diversification strategy. The survey found that 86% of firms are considering or actively pursuing private credit, up sharply from 50% in the previous year.
“While it still represents a smaller share of funds under management, this surge in interest highlights firms’ efforts to broaden their offerings in line with allocator preferences for real assets, infrastructure and credit,” notes Gubb.
ESG and transformation remain priorities Environmental, Social and Governance (ESG) considerations have become central to investment decisions and value creation. In 2024, 64% of Southern African PE firms employed dedicated ESG professionals, with 63% of firms reporting a positive impact of ESG strategies on exit proceeds. “We’re seeing that the emphasis is shifting from compliance to impact,” adds Gubb.
SAVCA has appointed Janice Johnston, Chief Executive of Edge Growth Ventures, and Paula Mokwena, CEO of Fireball Capital (a subsidiary of Ke Nako Capital), to its Board of Directors.
Johnston brings over 25 years of investment and leadership experience across debt, venture capital, and private equity, with a career spanning top-tier financial institutions in South Africa and the United Kingdom. She spent a decade with Prudential Capital Plc in London, served as a senior leader at Edge Growth, contributed to Identity Partners Group, and was part of the Presidential Climate Finance Task Team, which led the negotiation of South Africa’s Just Energy Transition Investment Plan. Johnston re-joined Edge Growth Ventures in 2023 as Chief Executive.
Mokwena’s career spans investment banking, development finance, private equity, and venture capital. During her tenure at the Industrial Development Corporation (IDC), she helped establish the pioneering Technology Venture Capital Fund, supporting the commercialisation of South African innovations. After more than six years in private equity, Mokwena co-founded Fireball Capital, which has successfully raised close to R1bn from institutional investors.
Transformation indicators have also showed continued progress. The proportion of firms with more than 50% black ownership rose to 61% (from 59% in 2023), while black female ownership increased to 21% from 16%. Firms with over 50% black management grew to 72% (from 62%), and portfolio companies with majority black management rose to 57% (from 50%).
While women’s representation within firms slipped – with 43% of PE firms reporting boards with over 30% female members, down from 49% in 2023 – portfolio companies are showing stronger diversity in executive leadership, indicating early signs of deeper transformation.
A shift towards more purposeful capital deployment
For the first time, the survey incorporated direct insights from allocators, bringing valuable firsthand perspectives on their priorities, concerns and aspirations. “While allocators remain more measured in their short-term expectations, their growing interest in sectors such as healthcare and infrastructure signals a shift toward more purposeful capital deployment – one that aligns closely with regional development goals and the long-term vision of private equity in Southern Africa,” says Gubb.
“2024 emerged as the highest dealmaking year by value and second largest by volume since 2018”
Looking ahead, 50% of Southern African PE firms expect elevated dealmaking activity in 2025, with 60% anticipating further strengthening in 2026. Adding to this cautious optimism, 66% of allocators expect an increase in exits in 2025.
“The survey confirmed that 33% of allocators expect fundraising to increase significantly, while 37% of firms expect fundraising to increase somewhat. While PE fundraising was notably constrained in 2024, the outlook expressed by firms and especially allocators is positive. This is a positive indicator for increased investment into PE going forward, and importantly, for the wider impact this can have in supporting high-growth businesses and driving economic development,” adds Graham Stokoe, EY Africa Private Capital Leader, who led the EY team that conducted the research.
“The industry is indeed entering a new phase – more agile, more accountable and more aligned with regional goals,” says Gubb. “The road ahead is not without complexity, but the energy, resilience, and innovation already taking shape suggest that Southern African PE is ready to meet the moment,” she concludes.
Janice Johnston, Chief Executive of Edge Growth Ventures
Paula Mokwena, CEO of Fireball Capital
Private Equity offers growth opportunities for business and investors
By Liz Kolobe Partner: Agile Capital
While the global economy continues to be uncertain, there remains some optimism regarding the opportunities within sectors of the South African economy. There continues to be growth opportunities, particularly within the services and healthcare sectors.
South Africa has become a country where entrepreneurs can scale businesses if they find a niche, with many of these subsequently growing into mature, stable businesses. While the success of local entrepreneurial companies is dependent on a host of factors, access to funding and the best suited partnership are critical components of this equation. Later stage finance is arguably just as important as start-up capital to
However, for Southern African allocators, environmental, social and governance (ESG) are the top strategic priorities. Interestingly, the survey also reports that ESG strategies enhanced exit proceeds for the majority (63%) of Southern African PE firms.
“As a key local PE player, Agile Capital recognises and supports transformation and diversity with our investee businesses as an imperative. Considering the myriad of pressures globally at present, superior returns can only be generated through a disciplined approach to investing that builds sustainable businesses and embraces transformation and empowerment,” notes Kolobe. SAVCA’s Survey reveals that portfolio companies are showing stronger diversity in executive leadership, indicating early signs of deeper transformation. “We have a particular focus in challenging misperceptions that transformation is merely a boxticking exercise.”
Identifying the right partner
The right PE partner should be able to contribute by allowing the management team to focus on growth strategies for the business. Agile Capital brings considerable advantages to our investees, as our primary focus is growth and assisting the strategic direction of those businesses in which we invest.
Furthermore, a more hands-off approach allows us to see bolt-on prospects for inorganic growth more clearly. Often, these opportunities for progress happen through networks within the PE investor’s sphere of influence. At Agile Capital, our expertise means the required screening, due diligence and funding are all successfully handled prior to any acquisitions being considered.
The firm is currently managing an existing portfolio while looking for potential investment opportunities.
“Our primary focus is growth and assisting the strategic direction of those businesses in which we invest”
Are South African’s confusing general investments with retirement savings?
New data from Liberty suggests that many South Africans may not be differentiating between investing towards retirement and investing towards other goals. This has the potential to undermine their longterm financial security.
According to an internal study, clients who invest in general investment products are significantly less likely to purchase Retirement Annuities (RAs). In fact, 79% of clients who hold investment products with Liberty are not invested in retirement-specific solutions, highlighting a gap in understanding around the distinct roles these financial tools play. “It isn’t very clear why this is the case, but it is possible they may be trying to invest for their retirement using other investment structures, and this is not very efficient,” says Nosipho Nhleko, Lead Specialist for Investment Propositions at Liberty.
“It is important to note that while investing for goals such as children’s tertiary education differs significantly from investing for retirement, they both involve planning and discipline but require a different approach in terms of time horizon, risk tolerance and the overall investment strategy and investment solutions.”
Investing in goals vs investing for retirement
She says investing for short to mediumterm goals, such as buying a home or funding children’s education, entails thinking about the investment solutions that will allow clients to meet desired investment goals within the time limit to achieve the goal, while also requiring one to be able to easily access the fund when the time comes. Additionally, one might want to think about an investment solution that can preserve capital and give moderate growth.
In comparison, investing for retirement is entirely different as this is a long-term goal that often spans decades and involves building a sustainable income stream that may need to last 25 to 30 years post-retirement.
This calls for a longer-term view, because ultimately the timeline allows for investors to ride out market ups and downs, focus on inflation protection, and enjoy the power of compound
interest over decades. Retirement annuities are specifically designed to meet these needs.
“It becomes clear that the investment solutions for each of these scenarios needs to perform differently to give the most effective desired outcome. This is why people need to think differently about investing for their short- and medium-term goals as against investing for their retirement,” says Nhleko.
Why RAs are unique
Some clients may be concerned that they cannot withdraw easily from their retirement funds. “The two-pot system has introduced new reforms. A third or all your contributions made after 1 September 2024 will automatically be placed into a ‘savings pot’ that can be accessed once a year.” But, Nhleko says, the biggest advantage that many do not always realise with retirement savings is that they can potentially provide significant tax savings.
“Money that is put in a retirement fund, such as a retirement annuity that is deducted from your earnings, lowers your overall tax burden. Contributions up to 27.5% of your earnings can be deducted, subject to an annual deduction cap of R350 000. So, if you earn R40 000 a month, and put R6 000 into that retirement annuity, you only pay tax on the remaining R34 000.”
Most importantly, she says, is that the growth on the savings in your retirement annuity is not taxed, unlike normal investments. There is no tax on capital growth, dividends or interest income in the retirement annuity, which can have a significant positive impact in growing your retirement savings.
“Tax is only paid when the benefits are paid from your retirement annuity. When considering the advantages of certain investments over retirement savings, people really need to consider these benefits in the long term. The monthly tax savings alone represent a substantial financial advantage,” she says. “It’s worthwhile for anyone saving towards retirement to get familiar with how a retirement annuity can benefit them. They have been proven to work well in the long run; they remain the cornerstone of intelligent and holistic retirement planning.”
A future-ready umbrella fund for all
The recently launched Alexforbes One is an umbrella fund solution designed to make retirement real, relevant and reachable for all South Africans. “Alexforbes One is not just a product – it’s our best view of the retirement fund of the future,” said Dawie de Villiers, Group Chief Executive of Alexforbes. “We’ve built a solution that is inclusive, flexible and powerful, and designed to deliver better outcomes across the value chain.”
A unified solution for a fragmented market
Alexforbes One brings together the group’s best thinking into a single retirement fund solution, now available to both Alexforbes consultants and the independent adviser market. This move signals a commitment to openness, flexibility and scale – giving advisers and employers full access to the Alexforbes ecosystem. “We’ve listened to the market and responded with a solution that supports independent advice, simplifies administration, and enhances member engagement,” said Vincent van Dyk, Head of Intermediated Employee Benefits. “It’s cost-effective, scalable and outcome-driven – giving employers a fund they can rely on, advisers a platform they can grow with, and members a retirement experience they can trust.”
Value
for employers, intermediaries and members
For employers, Alexforbes One provides access to an investment destination for strong long-term returns at competitive pricing, backed by disciplined multimanager expertise and a proven track record. More than just performance, it delivers streamlined administration, proactive governance and digital tools that reduce queries while keeping members informed. Employers can be confident in a solution designed to adapt to evolving workforce needs, regulatory shifts and member expectations. “We’ve designed Alexforbes One to be modular, scalable and personal,” said Elio E’Silva, Head of Direct Corporate Solutions. “Whether you’re navigating legislative complexity or seeking flexibility, this fund adapts to your workforce needs while delivering consistent, long-term value.”
For members, the fund offers what matters most: access to financial advice regardless of age, income or job level. This inclusive advice model closes a critical gap in the industry, where too many people face life-changing financial decisions without guidance.
“Big financial decisions shouldn’t come with big barriers,” said E’Silva. “We have built a fund where advice is always in reach – no matter who you are or where you work. That is how we change outcomes.”
Through enhanced retirement benefit counselling (eRBC), WhatsApp-based self-service, and digital journeys, members are empowered to make informed choices, avoid costly mistakes and plan for all life goals – from buying a home and funding education, to managing emergencies and preparing for retirement. For intermediaries, Alexforbes One is a partner built for shared growth. “We’ve created an ecosystem where advice practices can thrive,” says Van Dyk. By reducing administrative friction and unlocking access to curated investment strategies, digital tools and member engagement support, Alexforbes One frees up advisers to focus on what matters most: delivering high-impact advice, more efficiently.
Built
for impact and resilience
The fund’s integrated annual report combines financial and impact metrics, setting a new standard for transparency and governance in the industry. Stakeholders benefit from a clear, transparent view of both returns and responsible investing outcomes. This reinforces the fund’s commitment to longterm value, ethical governance and future-fit decision-making.
A new chapter for retirement in South Africa
Alexforbes One signals a decisive move away from fragmented, legacy models toward a unified and inclusive umbrella fund that reimagines what retirement funding should be.
“By combining investment expertise, inclusive advice and scalable infrastructure, Alexforbes One sets a new standard for retirement funding,” said De Villiers. “It’s a fund that empowers members, enables advisers and supports employers – delivering better outcomes for all.”
What the net replacement ratio reveals about retirement readiness
By Everjoy Gumbo Specialist in Group Savings and Investments at Allan Gray
Many employers set up retirement fund benefits to help employees work towards financial security when they retire. Beyond simply offering these benefits, employers can play a key role in nudging members to engage with their retirement investments – a step many members currently neglect, according to Allan Gray research.
Our research reveals low engagement
We analysed the behaviour of members of the Allan Gray Umbrella Retirement Fund who were six months away from reaching retirement over the course of the last year. While 58% of them opened emails notifying them of their upcoming retirement date, only 22% of these members actively engaged with the retirement outlook tool included in the notification email, which aims to help them understand where they are in their journey. We also analysed the data of just over 300 members who were two years away from their stipulated retirement age. Of these members, 65% have active online accounts,
but only half of them have accessed their online accounts year to date. This highlights that many members do not pay attention to their retirement investments – and are therefore unable to ultimately assess if they have accumulated adequate funds to provide them with a retirement income that can sustain their lifestyle.
How employees can track their retirement investments
One of the ways employees can track their progress towards retirement goals is by reviewing their net replacement ratio (NRR). In a retirement context, this refers to the projection of the portion of an individual’s pre-retirement earnings that will be replaced by their post-retirement income. The retirement industry consensus view is that an NRR of 75% is ideal to sustain a comfortable retirement. This is an average, and the true amount will differ between individuals. The NRR helps members get a view of:
1. How much they will have saved by the time they retire if they keep contributing at current levels
2. How much they would need to aim to save to achieve their desired lifestyle.
An individual’s NRR is influenced by factors such as age, existing savings and contributions, expected
The Allan Gray Umbrella Retirement Fund
Simpler choices. Better decisions.
With countless funds to choose from, making the right investment decision for your employees can be daunting. At Allan Gray, we simplify this process by providing a considered selection of funds containing our best investment ideas. Our focus is on removing complexity from retirement benefits, so that you can concentrate on what matters most: running your business.
To find out more about our Umbrella Retirement Fund, call Allan Gray on 0860 000 870, or your financial adviser, or visit www.allangray.co.za.
investment growth, lifestyle choices, and income streams before and after retirement. Incorporating these metrics into an NRR tool will help employees determine their projected monthly income and what that equates to as a portion of their projected final salary.
Employees should try to project what their likely monthly income requirements will be, come retirement, years before their actual retirement date so they can prepare adequately to maintain their lifestyle. In line with empowering employers to help their employees journey to a sustainable retirement, the Allan Gray Umbrella Retirement Fund’s NRR tool has a component that allows employers to review the overall NRR for their employees, enabling them to gauge how many employees are on track to retire comfortably and how many may need some intervention. The tool also allows employers or their scheme advisers to tweak the various metrics to determine the impact of changing certain aspects, such as retirement age and contributions for the group.
Tracking retirement using an NRR tool is something the average member should be undertaking annually –more so when their circumstances change – to ensure they are on track to meet their retirement savings goals.
How to improve retirement outcomes
Once individuals understand where they are in their retirement journey, they can take steps to improve their outcomes. This may involve increasing contributions, avoiding early withdrawals under the two-pot system to prevent tax and growth setbacks, and reconsidering lifestyle priorities to ensure a sustainable retirement.
Mutuality is good business. Shared
value is how glu does it.
According to McKinsey, nearly 60% of insurance policyholders say they want more personalised, long-term value from their providers. It’s a sign that times are changing. Clients want insurance to be more than just protection against something terrible; they want that money to do something. Their wish is our command.
For glu, a new division of PPS, the answer lies in Mutuality: a model built on shared outcomes, not short-term wins. That’s the thinking behind ProfitBack™, a benefit where glu shares its profits with members, allowing members to accumulate value over time, reinforcing the Mutuality model and rewarding commitment. ProfitBack™ is glu’s way of extending the principle of Mutuality to more South Africans who are just beginning to make financial decisions that will ultimately shape their futures.
Here’s how it works: Members under 60 with qualifying cover (Life, Disability, Critical Illness, or Income Protection) are automatically included in ProfitBack™, no sign-ups or extra steps required. Each April, glu allocates a notional bonus to the member’s ProfitBack™ policy. These bonuses start vesting after 10 years, with 20% unlocking every five years until the full amount is available at 25 years, or when the member turns 65, whichever comes first.
A key differentiator is that claims have no impact on allocations or balances. Members don’t lose out on their share of value simply because they’ve accessed their cover. This embedded benefit strengthens long-term value for members, while setting glu apart with an offering that rewards loyalty and usage simultaneously.
ProfitBack™ is one of the strongest differentiators in the market, making glu the only financial services business, other than PPS in the professional space, to share profits directly with members. This unique model accelerates members’ ability to build long-term wealth.
Michele Jennings, Chief Executive of glu, says, “It’s time to rethink the role insurance plays in people’s lives. It should be about more than bracing for the worst. It should help people build towards the future and share in the upside when things go well.”
For glu, simplicity is a priority. ProfitBack™ isn’t designed to complicate the product suite or rely on behavioural nudges to unlock rewards. It’s embedded in the system,
a structural expression of glu’s belief in mutuality. Unlike traditional models where value is extracted, glu’s model ensures value flows back to members as part of the business itself. That’s not just philosophy; it’s a competitive advantage.
Unlike loyalty points or cash-back schemes that are often complex and less rewarding, ProfitBack™ is a true long-term wealthbuilding mechanism. It recognises that staying insured is not just responsible, it’s valuable. For younger members who start early, the value of ProfitBack™ after 25 years could exceed the total premiums paid. Now that’s real, tangible value.
“ProfitBack™ is a true long-term wealthbuilding mechanism”
Traditionally, one of the trickier conversations to have with clients is the “what if I never claim?” moment. While the peace of mind of insurance is its own reward, people naturally want to feel that their money is doing something more, not just disappearing into a premium sinkhole.
For financial advisers and other professionals in the insurance value chain, the ProfitBack™ model offers something rare: a built-in benefit that supports client retention and reinforces the value of longterm planning and partnership.
By rewarding commitment over claims, glu is creating a product that not only delivers meaningful financial benefits to members but also reinforces our promise to always pay valid claims. Beyond that, we’re shaping a more purposeful journey, one rooted in community and shared benefits. For advisers, this becomes an elegant bridge between protection and planning, especially when guiding clients who are new to seeing insurance as part of a wealth strategy. It’s financial services the Ubuntu way: where cover and community come together to build long-term value.
ProfitBack™ is also a signal that Mutuality isn’t just a legacy concept for niche audiences, but a model with fresh relevance in today’s market. glu’s approach honours the core PPS principle of member-centricity, while expanding access to a wider group of South Africans who may not have qualified for PPS membership in the past. That
expansion is deliberate. It’s about growing the base of people who can participate in shared value, while maintaining the integrity and discipline that Mutuality requires. At its core, this is about creating a true sense of belonging and ownership.
It also reflects an evolution in how value is measured. In an industry where shortterm incentives often drive engagement, glu is choosing a more purposeful route, and backing it with real business logic and unmatched value. Retention improves. Trust deepens. Loyalty strengthens. And over time, members start to see insurance not as a grudge purchase, but as a valuable contributor to their financial journey.
While ProfitBack™ sets glu apart, the thinking behind it has broader implications for the financial services industry. As providers face increasing pressure to offer meaningful benefits, Mutuality offers a tested, transparent way forward.
By committing to profit sharing, glu is building a sustainable business model where success flows both ways. And in doing so, it’s offering a timely and powerful reminder that good products solve real problems – in this case, the disconnect between monthly premiums and long-term value.
In an environment of rising consumer expectations and declining trust in traditional financial models, glu stands out as a brand committed to rewriting the playbook. ProfitBack™ isn’t an add-on or an afterthought; it’s core to how glu does business.
This isn’t about reinventing insurance; it’s about evolving it. By reimagining how value is shared and who gets to benefit, glu is setting a new benchmark for transparency, member empowerment, and business sustainability. And in a time when South Africans are demanding more from their financial providers, that’s a conversation worth having.
It’s a fresh model with deep roots. And one that positions glu as a credible, modern financial services brand, rooted in purpose and legacy.
To find out more or get in touch with the glu team, email sales@glumutual.co.za or visit glumutual.co.za
How non-life insurance solutions can transform SME talent attraction
By Carl Moodley Chief Information Officer at GENRIC Insurance Company
In today’s competitive business landscape, small and medium enterprises (SMEs) face a critical challenge: attracting and retaining top talent while managing tight budgets. Traditional employee benefits such as medical schemes and pension funds have long been the gold standard, but they are often financially out of reach for SMEs and inaccessible to many lower-income employees.
This is where non-life (short-term) insurance solutions offer a powerful alternative. By leveraging products such as health insurance, emergency evacuation cover, group personal accident policies and funeral insurance, SMEs can create compelling, affordable benefit packages that both protect employees and strengthen their ability to attract and retain staff.
The traditional benefits dilemma
Medical schemes and pension funds remain cornerstone benefits in the corporate world, offering long-term security and healthcare cover. Yet, for SMEs, these benefits present major hurdles:
• Cost barriers: Medical scheme membership can consume up to 20% of an employee’s salary. For a small business subsidising even part of this cost, the financial strain can be prohibitive.
• Administrative complexity: Managing compliance, enrolments and claims requires resources SMEs often lack.
• One-size-fits-all limits: Younger employees or diverse teams may prefer flexibility over rigid traditional packages.
The non-life advantage
Non-life insurance solutions address these challenges by offering meaningful value at lower cost and with greater flexibility.
Health insurance
Medical scheme contributions are increasingly unaffordable, even with employer subsidies. Health insurance provides a more accessible alternative, with plans ranging from basic primary care and accident cover to combined hospital and day-to-day benefits. Primary healthcare cover, in particular, resonates strongly with employees. It enables access to private doctors, dentists, optometrists and medication – critical for employees managing
chronic conditions. For employers, such cover reduces absenteeism, boosts productivity and protects employees’ financial wellbeing.
Gap cover
For employees forced to ‘buy down’ to hospital-only medical scheme plans, gap cover can be a lifeline. It protects against large shortfalls between what a specialist charges and what the medical scheme reimburses. With recent claims showing shortfalls upwards of R40 000, this type of cover provides vital peace of mind at a relatively low cost.
Group personal accident cover
Accidents can strike anywhere, anytime. Group Personal Accident cover provides 24/7 protection, paying lump sums for accidental death, disability or injury-related medical costs. As a group policy, premiums are affordable, and employees value the fact that cover extends beyond work hours. For employers, it’s a cost-effective way to demonstrate care and boost loyalty.
This flexible, layered approach empowers employees to access meaningful protection while keeping costs manageable for the business.
The talent attraction factor
Benefits are no longer just about compliance or ticking a box, they’re central to employee value propositions. For SMEs competing with larger companies, non-life insurance solutions can level the playing field. They demonstrate that employers care about their people’s wellbeing, while also giving employees choices that fit their lives.
Affordable, customised benefit packages help SMEs:
Stand out in competitive labour markets
Retain employees by reducing financial stress
• Boost morale and productivity by supporting health and security.
In short, non-life insurance solutions allow SMEs to balance financial sustainability with the human touch that attracts and keeps great people.
Building smarter benefits packages
The key is tailoring benefits to employee needs and budgets. For example, a small print shop with 10 employees could forgo expensive medical scheme subsidies and instead structure a practical package including:
Health insurance combining hospital, accident and primary care cover, starting from around R695 per month
• Gap cover for those with medical scheme membership, starting from R172 per month with generous annual limits
Optional extras such as group personal accident or emergency medical evacuation, available on a voluntary basis.
“The key is tailoring benefits to employee needs and budgets”
The bottom line
Traditional benefits like medical schemes and pensions will always have a role, but they are often unattainable for SMEs and inaccessible to many employees. Non-life insurance provides a pragmatic, flexible alternative that protects employees, enhances productivity and positions SMEs as employers of choice.
By building packages around affordable health insurance, gap cover and personal accident policies, SMEs can show employees that their wellbeing matters, without breaking the bank. In doing so, they not only safeguard their workforce but also their own long-term growth.
By Willem Coetzee CEO of Zenith
AWhy insurable interest matters and how to get it right
n insurance concept that often gets misunderstood, despite underpinning every insurance policy, is insurable interest. While it might sound technical, the principle itself is quite simple. Simply put, you can only insure something if its loss or damage would cause you a financial setback. So, if you do not stand to suffer financial loss directly from loss of or damage to an insured item, insurance will not cover such loss or damage. The lack of insurable interest, in essence, invalidates any expectation of indemnification. This requirement distinguishes insurance contracts from gambling, ensuring that policies are used to mitigate genuine risks rather than to speculate for unjustified profit. Without insurable interest in property under a non-life insurance contract at the time of physical loss or damage, the cover is unenforceable. In the context of non-life insurance, which offers cover for motor vehicles and property, and legal liability, insurable interest typically arises through ownership or legal responsibility. For example, a person who owns a car or a house will have insurable interest in that asset, as they would suffer a financial loss if it were damaged in some capacity or destroyed.
Where things can become a little more complicated is in cases involving trust and corporate structures, layered ownership or assumptions regarding financial interest. At Zenith, where we serve highnet-worth individuals and families, we observe how complex asset ownership through trusts, companies and coownership often creates uncertainty about insurable interest.
For example, Family Trust A owns 45% of a holding company, which fully owns a subsidiary that owns a motor vehicle. If a trust beneficiary insures a vehicle of the subsidiary company in their own name, they will lack insurable interest. Without a legal obligation towards the company owning the vehicle, the remote connection between the trust beneficiary and the vehicle does not constitute insurable interest and cover under the policy will not be enforceable. To avoid this outcome, the entity that owns the property or has a legal obligation to insure the property should take out the insurance. At Zenith, we accommodate complex ownership structures if the details are declared to us prior to insuring property so that cover can be structured to the unique needs of policyholders.
“Insurable interest must exist at the time of the insured event”
Another common mistake relating to insurable interest is attempting to insure furniture or other assets in a rented property. Unless your lease agreement specifically states that you’re responsible for the landlord’s belongings, you don’t have an insurable interest in insuring those items. In that case, the landlord should be the one insuring these items. So, if you are contractually liable for any damage to the furniture or fittings in your rented home, make sure your policy covers this and that it’s clearly backed by a legal agreement.
Then there is the issue of joint ownership, where two business partners may jointly own a vehicle, but only one is listed on the insurance policy. In such cases, the vehicle is deemed to be owned in a partnership, and the partners can insure it jointly or in either of their names.
One of the lesser-known requirements is that insurable interest must exist at the time of the insured event. If a policyholder sells an asset to a buyer, the buyer must pay the purchase price, and the policyholder must place the buyer in possession of the property in terms of the contract. The policyholder will retain insurable interest even after having received payment, but only up to the time of transferring possession. Should the policyholder have transferred possession of the property, but payment has not been received, the policyholder will retain insurable interest until having been paid. Problems arising from a lack of insurable interest are easily avoidable. First and foremost, you should always disclose any ownership structures, joint ownerships, usage rights, contractual liabilities or third-party interests clearly and upfront, not after the fact. An experienced adviser who understands your financial structure will then be able to identify any potential gaps to ensure you are properly covered.
By George Whitehead Masthead Compliance Officer
OEthics and compliance: From
ver the past 30 years, South Africa has seen a steady progression in how ethics is treated in the financial sector – from being encouraged as good business practice in the 1994 King I Report to becoming a regulatory priority through laws such as the Financial Advisory and Intermediary Services (FAIS) Act, its supporting regulations and the Treating Customers Fairly (TCF) Outcomes. Now, with the proposed Conduct of Financial Institutions (COFI) Act, ethical conduct is set to become even more enforceable.
What are the basic principles of business ethics?
At its core, ethics is about doing what’s right. Several principles underpin ethical business behaviour, regardless of industry:
• Honesty: Being truthful in all business dealings.
• Integrity: Acting in line with moral principles.
• Fairness: Treating all stakeholders equitably and without bias.
• Accountability: Taking responsibility for actions and their outcomes.
• Respect: Valuing the rights, dignity and contributions of others.
• Regulatory compliance: Following the laws, regulations and standards that govern the industry.
These principles should guide decision-making, stakeholder relationships and long-term strategy.
King I and FAIS
Ethics gained prominence in governance discussions in the 1990s with the introduction of the King I Report, which positioned ethics as a cornerstone of good governance. While not legally binding, it introduced a new way of thinking about leadership in business.
This thinking gained regulatory weight with the introduction of the FAIS Act, which came into effect in 2004. The Act set clear, enforceable expectations for FSPs and their Representatives to act honestly, fairly and with due care, skill and diligence. Supporting Board Notices, such as BN80 of 2003 and BN194 of 2017, reinforced these obligations through the General Code of Conduct and Fit and Proper requirements, establishing a link between ethical behaviour and professional competence.
TCF: Raising the bar
The introduction of the six TCF Outcomes took things a step further. Rather than focusing on rules, TCF focuses on outcomes – do clients feel they’ve been treated fairly throughout their journey with a financial product or service? TCF requires businesses to embed fairness into their operations, communications, advice and aftersales service. While these Outcomes are not set out in legislation, regulatory bodies like the Financial Sector Conduct Authority (FSCA) increasingly expect FSPs to demonstrate how these principles are being applied in practice. The six TCF Outcomes are:
• Clients are confident they are dealing with firms where fair treatment is central to the culture.
• Products and services are designed to meet the needs of identified client groups.
• Clients are given clear information and are kept appropriately informed before, during and after the point of sale.
• Where advice is given, it is suitable and takes account of the client’s circumstances.
• Products perform as firms have led clients to expect.
• Clients do not face unreasonable post-sale barriers to switch products, switch provider, submit a claim or make a complaint.
COFI: Making ethics the law
With the COFI Act on the horizon, ethics will no longer be a ‘soft’ concept – it will be embedded in enforceable regulation. Building on the principles of King I, COFI creates a comprehensive, principles-based law that places ethical conduct at the centre of financial sector regulation.
The Act promotes fair treatment by requiring financial institutions to act transparently, responsibly and accountably. Products must be suitable for client needs, communication must be clear and accurate, and customers must never be misled or disadvantaged. Transparency is strengthened through full, honest disclosure, while accountability extends to proving positive client outcomes. FSPs will need to collect data, monitor conduct and report findings to the regulator.
Fit and proper requirements will also be more robust, ensuring key individuals demonstrate both competence and ethical integrity. Importantly, COFI tackles the risks of sales-driven incentives by encouraging remuneration
practices that align business objectives with fair customer outcomes. COFI raises the bar for governance, oversight and integrity. Acting ethically is no longer a choice; it’s a regulatory obligation.
Ethical conduct in the real world
While most FSPs aim to apply ethics consistently, it is often harder in practice. Larger firms face complexity, pressure and siloed accountability, while smaller ones may lack formal systems but benefit from simpler structures and closer client ties. True ethical responsiveness requires leadership, governance and performance measures that prioritise doing the right thing. Ultimately, ethics must be a shared responsibility among providers, intermediaries and clients, with fairness and trust at the heart of every decision.
More than a tick-box
An organisation’s leadership plays a vital role in shifting ethics from theory to practice. By modelling ethical behaviour, setting a clear tone from the top and reinforcing values through communication and action, leaders help create a culture where integrity becomes part of how business is done.
Leaders can encourage ethical behaviour by:
• Leading by example and demonstrating ethical decision-making.
• Communicating clearly about expected behaviours and values.
• Embedding ethics into strategic planning and business objectives.
• Holding themselves and others accountable for ethical conduct.
• Recognising and rewarding behaviour that aligns with the organisation’s values.
FSPs can take meaningful steps to embed ethics into their culture by:
• Making TCF part of performance reviews.
• Keeping ethics on the agenda at management meetings.
• Tracking whether client outcomes match intentions.
• Encouraging open communication and protecting whistle-blowers.
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