Life annuities are a key tool for advisers, balancing certainty and growth in retirement planning. We examine why your clients need to understand the importance of this type of investment.
Cover story + Pg 17-18
CRYPTOCURRENCY
As cryptocurrency continues its move into mainstream investing, this month we’re looking at tokenised stocks; how stable coins can help to build financial inclusion; and the latest regulations.
Pg 8-11
TRANSFORMATION
Beyond compliance, transformation builds competitiveness and trust, ensuring relevance in South Africa’s economy. Some key industry players share their strategies in this respect.
Pg 14-16
NATIONAL WILLS WEEK
Too many South Africans die without valid wills, leaving families exposed, which is why advisers should use this opportunity to stress wills’ value.
Pg 20-23
TRUSTS
Trusts safeguard assets, enhance estate planning and support wealth transfer across generations. However, they are no longer as straightforward as they once were. It’s essential that clients remain informed.
Pg 24-25
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Why life annuities matter more than ever for South African retirees
By Sandy Welch Editor, MoneyMarketing
In the wake of increasing retirement pressures and soaring living costs, the importance of life annuities has re-entered the spotlight in South Africa – and for good reason. According to Deane Moore, CEO of Just SA, now is the best time in two decades for retirees to seriously consider this essential retirement product.
“The combination of strong recent performance of balanced funds, growing retiree investment values, and South Africa’s high long-term interest rates –relative to what we’ve seen in the last 20 years – is making it an attractive time to lock in guaranteed income for life,” Moore explains. “Even though rates have pulled back slightly from their peak, they remain historically high, which directly translates into high annuity rates for retirees.”
As South Africa’s retirement landscape continues to shift, the urgency around life annuities has never been greater. With the first wave of living annuity investors now living longer than the average 20-year retirement span, the cracks in the system are starting to show. Life annuities offer something many retirement products struggle to guarantee: peace of mind.
A crisis in waiting – and a call to action Moore says there has been a growing realisation among advisers and retirees alike that many South Africans simply don’t have enough saved to support themselves throughout retirement. “About 95% of South Africans retire without sufficient savings,” he notes. “Many end up in living annuities, which means they must manage their own investments and withdrawals, and far too many are drawing unsustainable levels of income.
“We are now entering the phase where we’ll see the people who live longer than average starting to
run out of money,” says Moore. “We’re seeing the early signs of a crisis, but I think we’re going to see that crisis manifest significantly in the next five to 10 years.”
The picture he paints is stark: a proud generation who, having spent a lifetime saving and working, now face the distressing prospect of financial dependency in old age, often having to turn to their adult children for support. And those adult children? They’re already stretched thin, juggling their own financial responsibilities, supporting kids, and now potentially their parents too.
Life annuities vs living annuities: What’s the catch?
From Just SA’s research, two-thirds of retirees in living annuities are drawing down at rates that could deplete their capital. But here’s the silver lining: “Roughly half of those people could secure the same income level they’re drawing now by moving part of their assets into a life annuity, and have it guaranteed for the rest of their life, with increases that target inflation,” Moore says. This is precisely where life annuities offer a vital solution – not just for the individual retiree, but for families and the broader financial system.
A life annuity ensures income that lasts as long as a person lives. Unlike a traditional living annuity, where individuals must decide how much to draw each year and shoulder investment risk, a life annuity pools that risk and relies on the expertise of insurers to manage it. And while misconceptions around handing over a lump sum to an insurer persist, Moore is quick to dispel them.
“Firstly, it’s not all of your clients’ money, it’s just the bit that they are definitely going to need for essential expenses in retirement,” he says. “And it is pooled with all other clients, so everyone gets an income for as long as they live. Once people understand that, it makes a lot more sense.”
Image: Getty Images
Add certainty to your client’s retirement income planning with a guaranteed annuity.
Personalised certainty Income certainty is not a luxury, it’s a necessity.
Continued from previous page
For many, the solution lies in blending –combining the flexibility of a living annuity with the certainty of a life annuity to ensure essential expenses are covered, while still allowing for growth and legacy planning. Moore notes that this approach benefits everyone, regardless of wealth.
An old idea, modernised for today Life annuities aren’t new. In fact, their roots go back centuries, all the way to Roman times, where retired soldiers were supported with regular payments. The concept is tried, tested, and extremely well-regulated.
“People often forget that life annuities are backed by mortality tables, cash-flowmatched investments, often government bonds, and are subject to stringent solvency stress tests,” Moore says. “They’re not just a financial product; they’re an insurance policy against running out of money.”
From defined benefit to DIY retirement
“The Baby Boomer generation had defined benefit pensions,” Moore reflects. “They worked for the same employer for 40 years and received a predictable income for life. But today’s retirees are typically on defined contribution plans. They get a lump sum and must manage it themselves.” This shift has left many retirees navigating uncharted waters. “A life annuity gives them back what their parents had – a guaranteed income for life, structured to their needs, and adjusted for inflation. It turns a pot of capital into a secure monthly salary once you’ve retired,” he says.
Financial advice is essential
Moore strongly encourages professional advice when considering life annuities. “We distribute exclusively through financial advisers, unless someone is doing their own research and comes to us directly. But most people benefit greatly from personalised advice, especially when it comes to financial decisions that must endure 30 years or more.”
With tools now available to help advisers model and personalise these solutions, the opportunity to make retirement more secure, and less precarious, is well within reach. But it requires honest conversations and, above all, a shift in mindset. “There’s a limited window of
EARN YOUR CPD POINTS
opportunity,” says Moore. “The longer people delay, the harder it becomes to secure that income floor. And once the money runs out, there are no do-overs.”
Tailoring retirement to your clients’ lives
“One of the best things about life annuities is that they can be customised to suit the financial needs of a couple or family,” says Moore. “You can structure them so that a spouse continues to receive an income after an individual’s death – maybe at 90% or 80% of the original level, depending on what is agreed to and what a particular family needs.”
When it comes to dependent children, annuities can be structured with a minimum payment period. “Even if both parents pass away in an accident, a life annuity can continue paying out for a guaranteed term, such as 10 years, to support the children until they’re financially independent,” Moore explains.
Planning backwards: How much is really needed
Many retirees wonder what the ‘magic number’ is – how much they need to invest in a life annuity to ensure a comfortable future. Moore’s advice: start with a client’s budget. “Go through bank statements and identify essential monthly expenses. Then think about how those might change over time,” he says.
Once projected monthly expenses have been calculated, work backwards. At current annuity rates of 6 to 8% for couples in their mid-60s, a person will likely need around 15 to 20 times their annual income need to fund retirement through a life annuity. “That number can be a bit of a shock,” Moore admits, “but it’s realistic and it’s better to face it with a plan than to run short later.
“Whether you are high net worth or low income, the principle holds: use a life annuity to secure your essential spending. The amount you allocate will differ, but the logic is the same.”
For financial advisers, this is the moment to act – to educate, to guide and to help clients choose a path that ensures dignity, independence and peace of mind in the years that matter most.
ED'S LETTER
One of the things I enjoy most about putting this magazine together is our regular coverage of cryptocurrency. The space is changing at such a rapid rate that there is always something new to explore. This month, we look at Luno’s introduction of tokenised stocks, a development that not only brings the crypto industry closer to the mainstream investment market but also introduces a fresh way of thinking about investing. We’re also looking at the impact of changing regulation and a new entrant offering the emerging market well-thought-out crypto options to suit specific needs.
But innovation isn’t our only focus. With National Wills Week around the corner, we are reminded of the practical realities that underpin good financial planning. The importance of having a valid will, understanding the role of trusts, and planning for succession cannot be overstated.
We also ask important questions about transformation within the asset management industry. Are we truly doing enough to reflect the society we serve, and what more can be done to accelerate meaningful change?
We’re also looking at the rise of Linked Investment Service Providers (LISPs). They have become a staple in our industry, but how many advisers fully understand what they do, how they operate, and what value they deliver to clients?
As always, this issue is about equipping you, the adviser, with insights that matter, from the cutting edge of crypto to the cornerstones of estate planning.
Stay financially savvy,
Sandy Welch Editor, MoneyMarketing
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The FPI recognises the quality of the content of MoneyMarketing’s September 2025 issue and would like to reward its professional members with 2 verifiable CPD points/hours for reading the publication and gaining knowledge on relevant topics. For more information, visit our website at www.moneymarketing.co.za
Ettienne Bezuidenhout Wealth Manager at Alexforbes
How did you get involved in financial services – was it something you always wanted to do?
Interestingly, my initial passion was in biology and science, which led me to pursue a degree in Genetics straight after school. However, upon completing my studies, I recognised that the strong foundation I had developed in mathematics and statistics could be applied in broader ways. This realisation steered me toward the financial services industry, where I went on to obtain additional qualifications.
What was your first investment – and do you still have it?
My first investment was my retirement fund through my initial employer, which I still retain today, although it has since been transferred to a different investment vehicle. The first investment I made independently was a unit trust with a monthly contribution, which I unfortunately no longer hold.
What have been your best – and worst –financial moments?
The most rewarding moments are when clients express genuine gratitude after you’ve helped them navigate a particularly complex or challenging issue, especially when the outcome exceeds their expectations. Financial stress can have a significant emotional toll, so being part of a solution that brings relief is incredibly fulfilling. Moments where a client embraces you, tearfully thanking you for your support, are truly unforgettable and reaffirm the purpose of the work we do.
The most difficult times often arise when assisting with the winding up of estates. Not only is there the emotional weight of losing someone – often a client who has come to feel like family – but the added strain when conflict arises among beneficiaries. Sadly, I’ve witnessed families divided, with siblings severing ties permanently due to estaterelated disputes. Many of these conflicts could be avoided with a well-drafted will that provides clear, unambiguous instructions.
What are some of the biggest lessons you have learnt in and about the finance industry?
While everyone is unique and requires a tailored financial solution, human behaviour often reveals common patterns, particularly in times of uncertainty. During periods of market volatility, fear can trigger herd
behaviour, causing people to lose sight of their personalised plans and instead follow the crowd. This tendency isn’t limited to clients; it can also be observed within the financial services industry, including among advisers themselves. Emotion often overrides rational decision-making, which is why managing emotional responses during such times is critical.
What makes a good investment in today’s economic environment?
There is a vast array of investment options available today and navigating this complex landscape can be overwhelming. It’s essential to ensure that your investment portfolio is carefully structured and aligned with your unique circumstances and financial goals. A critical starting point is the overall structure of your investments – this includes the types of products you invest in, how they are taxed and where they are domiciled. From there, asset allocation becomes a key consideration with diversification playing a vital role in managing risk. While the local stock market may have performed strongly in recent times, it’s important to ask: is now the right time to buy or sell? The answer is rarely straightforward as investment decisions should not be based on past performance alone.
Other important questions to consider include: Does your portfolio offer any downside protection in the event of a market downturn, or is it fully exposed to market fluctuations? And then, of course, there is the issue of cost. Some products come with high fees that may not justify their use, while lower cost options are not always the most suitable either. Price should never be the sole deciding factor – especially in the investment world.
What finance or investment trends and macroeconomic realities are currently on your watchlist?
Donald Trump remains a significant figure in global markets – his influence is undeniable. His rhetoric and actions often create heightened uncertainty and market volatility, which can be unsettling for many investors. However, this volatility can also present opportunities. The key lies in whether investors choose to simply ride out the turbulence or take advantage of it to enhance their portfolios.
Geopolitical tensions also continue to pose both economic and humanitarian concerns. While much of the market impact from the Russia-Ukraine and Israel-Gaza conflicts
“The key lies in whether investors choose to simply ride out the turbulence or take advantage of it”
may already be priced in, any unexpected escalation has the potential to trigger rapid market corrections.
Another critical factor is the interest rate environment. Investors are closely watching how far along we are in the interest rate reduction cycle and when the trajectory might shift. Certain policies and actions, particularly those perceived as inflationary, may limit the scope for further rate cuts and instead accelerate a move toward rising rates.
What are some of the best books on finance or investing that you’ve read – and why would you recommend them?
One book I highly recommend is The Behavior Gap by Carl Richards. It offers valuable insights into how investors often respond – typically inappropriately – during periods of market volatility. Through simple illustrations and clear explanations, the book effectively demonstrates the long-term impact of emotional and reactive decisionmaking on investment outcomes. What I particularly appreciate is its accessible approach. Many industries, including financial services, tend to use complex jargon that can be overwhelming and confusing for individuals. By simplifying financial concepts, as Richards does so well, we empower people to make more informed decisions, ultimately leading to better financial outcomes.
By Kevin Hinton Director of The Collaborative Exchange
Conferences you won’t want to miss
Institutional Investment Insights
This is an in-person conference brought to delegates by The Collaborative Exchange, one of SA’s leading advisory, research and events management companies in the investment industry. The event is specifically designed for senior pension CIOs, asset/liability specialists, DFMs, multi-managers, family offices and trustees, and will be held at The Mount Nelson Hotel in Cape Town on 30 September 2025. It will also be live streamed.
The focus
Under the theme The Big Reset: Managing Pension Fund Assets in a Dysfunctional World, the event content focuses on the strategies and frameworks needed to navigate today’s fractured markets and rebuild resilient pension fund portfolios.
The conference will consist of various keynote presentations by local and international experts and panel discussions, where practitioners will rigorously debate approaches to rebooting risk frameworks, engineering liability-driven portfolio modules and unlocking alternative sources of alpha.
Core objectives
• To help you recalibrate risk frameworks with advanced scenario modelling
To offer deep insights into the world of evolving alternative assets and how they can be included in pension funds
• To assist you to glean the latest insights on fixed income assets, local and global equities, hedge funds and digital assets and how these are evolving in this dysfunctional world
To provide delegates with a broad framework to rethink the opportunities that exist in this dysfunctional market.
Overview
The near-term path of global economies and markets is highly uncertain, but there are some attractive longer-term investment opportunities where a reasonable margin of safety currently exists. It’s clear that the old ‘time in the market, not timing’ argument is flawed on many levels, but with some extreme valuation anomalies present in today’s markets, being willing to stay exposed to attractively valued investments should prove rewarding in the long term.
Ample networking breaks are woven throughout the programme, ensuring delegates connect directly with speakers and industry peers.
For more information go to www.investmentinsights.co.za/index.aspx or email info@thecollaborative.co.za
Financial Planning Summit
Now in its fourth year, The Financial Planning Summit is a conference that deals specifically with the business of financial planning and wealth management. The conference will be live streamed on 23 October and is titled ‘Reframing the Future of Financial Advice and Wealth Management’.
The financial planning and wealth management sectors are undergoing profound transformation, driven by regulatory shifts, evolving consumer behaviours, advances in automation and digital strategies, changing adviser demographics, and, most recently, the rapid rise of AI tools set to reshape the very foundations of how business is done.
A critical juncture
With a large share of financial advisers nearing retirement, the industry is at a pivotal moment. A recent survey by The Collaborative Exchange found that around 20% of advisers are considering exiting their businesses without any succession plan in place, opening the door for acquisitions by other advisers or corporate transactions. This ageing adviser base brings both significant opportunities and pressing challenges.
The future of advice will likely be defined by: Forward-looking, data-powered automated insights, continually updated to changing needs and circumstances
Individualised experiences tailored to the specific needs of clients right across the wealth spectrum
Holistic advice across a broad spectrum of traditional and new products and services
High levels of transparency and trust, underpinned by an overt duty of care
• Stronger, clearer value creation for all
stakeholders, illustrated by more explicit links between advice, costs and benefits
Enhanced global participation and accessibility, providing the benefits of advice to a wider audience.
There are clear parallels with other sectors, such as the automotive industry. Not all cars are self-driven yet, but innovations in engines, fuels, diagnostics, route planning and driver assistance are rapidly changing our ideas of what cars are for and how we use them – in the same way the 2020s will change our understanding of financial advice (and the business models that support them) and, in the process, overturn our assumptions about strategy, operations, regulation and success in the wealth industry.
Subjects covered
• Financial planners/wealth managers do not know what their business is worth. Or do they? Types of valuation principles and setting your business up for succession planning or a sale.
• What can SA financial advisers/wealth managers learn from their counterparts in other countries about the business of financial planning/wealth management? Building your financial planning/wealth management technology stack to create back-office efficiencies.
• How ethics play a role when considering partnering with another business. How do you evaluate this?
Beyond the benchmark: The alpha of human advice in a digital age.
• A conversation with Millennials/Gen Y and Gen Z. What they think of the financial industry. A conversation with a global Finfluencer and how they would take advantage of social media if they were a financial adviser/wealth manager.
• Building a future-ready financial advice/ wealth management business. What successful businesses are doing to ensure their success.
By Francois du Toit CFP® PROpulsion
TCan South African financial advisers use ChatGPT to draft client records of advice?
he short answer is: it is legally risky and probably not worth it. Here’s what you need to know about using AI tools like ChatGPT while staying on the right side of South Africa’s Protection of Personal Information Act (POPIA) and the latest regulatory guidance from the Financial Sector Conduct Authority (FSCA).
Regulations just got more complex POPIA became fully enforceable in July 2021, making you, as a financial adviser, a ‘responsible party’ ultimately accountable for how client data is handled, even when using third-party services like ChatGPT. In July 2025, the FSCA and Prudential Authority issued Joint Communication 2 of 2025 on ‘Cloud computing and data offshoring’. This communication directly addresses cloud-based services by financial institutions and makes using general-purpose AI tools even more complicated. The joint communication requires financial institutions to have appropriate governance structures, board-approved data strategies, and comprehensive risk management frameworks when using cloud computing services. Since AI tools like ChatGPT are cloud-based services, they fall squarely within this guidance.
Why standard ChatGPT is still a no-go Using the free or standard Plus versions of ChatGPT for client work is asking for trouble. These consumer versions save your conversations and use them to train OpenAI’s models by default. Even if you opt out of training or delete a chat, OpenAI still stores and monitors your data for up to 30 days. Uploading client meeting notes, financial plans, or personal details to these versions would breach both POPIA’s consent and data protection requirements and the FSCA’s expectations around proper governance and risk management.
Business versions: More complex than ever OpenAI’s business products (ChatGPT Team, Enterprise,
and API) do not use your data for training by default, which addresses one concern. However, achieving full compliance with both POPIA and the new FSCA guidance is now more challenging.
The FSCA communication emphasises that financial institutions must follow a “risk-based approach that is aligned with the financial institution’s risk appetite”. For most advisory firms, using overseas AI services to process sensitive client data would represent a highrisk activity requiring extensive governance measures.
You cannot simply sign up for ChatGPT Business and start using it. You need to conduct proper vendor assessments, implement governance structures, and ensure your board has approved your data strategy.
Cross-border data transfer complications
The biggest hurdle remains cross-border data transfers. Since OpenAI is US-based and processes data globally, using ChatGPT involves sending South African client data overseas. Both POPIA and the FSCA guidance require careful consideration of these arrangements. As Charmaine van Wyk, CEO at The Compliance Toolbox, explains, with US-based services, security agencies have broad access to data within their jurisdiction, which makes this particularly complex for financial data.
What the new guidance means in practice
The FSCA joint communication introduces several expectations that make using general-purpose AI tools more demanding:
• Governance requirements: You need appropriate governance structures, processes, and procedures to oversee cloud computing use
• Board approval: Board-level approval may be required for larger firms
• Risk management framework: You need a boardapproved data strategy addressing your risk appetite for cloud computing and data offshoring
• Contractual safeguards: Attention to contractual
and legal requirements and enforceability of rights and obligations.
Better alternatives exist
Rather than wrestling with general-purpose AI compliance challenges, consider purpose-built financial planning software or local solutions that offer similar benefits with fewer risks. Many South African financial software providers now include built-in AI features, from transcribing meeting notes to drafting documents, all while being designed to comply with local data protection laws. AdviceTech, Avalon, and newcomer Clidash are examples of tools offering integrated AI features while focusing on South African regulatory requirements.
You can also look at locally deployed open-source models you host yourself. These give firms more control over where and how data is processed, directly addressing the FSCA’s concerns about data offshoring.
A final word
I am not saying do not use general-purpose AI. I’m saying be careful what you use it for, especially given the new regulatory expectations. There is still a long list of use cases where you can leverage tools like ChatGPT without worrying, such as general business tasks like drafting marketing content, creating training materials, generating ideas for client presentations or writing standard operating procedures.
The key is understanding the difference between using AI as a general business tool versus using it to process personal client data. One carries minimal risk, while the other now requires careful legal consideration and robust compliance frameworks.
Stay curious!
The COFI Bill: What financial institutions need to know
By Webber Wentzel Financial Regulatory Practice Group
Once enacted, the much-anticipated Conduct of Financial Institutions Bill (COFI) will introduce a significant shift in the legislative and regulatory landscape of South Africa’s financial services sector. It forms a key component of the country’s Twin Peaks regulatory reform and will primarily focus on strengthening market conduct regulation across the entire financial services sector.
COFI will, among others, consolidate and replace various industry-specific conduct laws, such as the Financial Advisory and Intermediary Services Act, 2002; the Collective Investment Schemes Control Act, 2002; the Short-term Insurance Act, 1998; the Long-term Insurance Act, 1998; the Credit Rating Services Act, 2012; the Financial Institutions (Protection of Funds) Act, 2001; and the Friendly Societies Act, 1956. It will also effect extensive amendments to the Pension Funds Act, 1956; the Financial Sector Regulation Act, 2017; the Banks Act, 1990; the Labour Relations Act, 1995; the Insurance Act, 2017; the Income Tax Act, 1962; the Financial Markets Act, 2012; the Medical Schemes Act, 1998; the Transnet Pension Funds Act, 1990; the Co-operative Act, 2005; and the Government Employees Pension Funds Law, Proclamation, 1996. It further scopes within its ambit certain activities under the National Payments Systems Act, 1998 and the National Credit Act, 2005.
Why COFI readiness is essential
Following two rounds of public commentary, COFI is expected to be introduced in Cabinet towards the end of 2025 and tabled in Parliament either later this year or in the first quarter of 2026. Its promulgation is anticipated in 2026, with a transitional period of approximately three years to follow.
The Financial Sector Conduct Authority (FSCA) Commissioner has emphasised that readiness for COFI is an industry-wide responsibility, not solely the FSCA’s. Financial institutions must proactively align their business models, governance frameworks and compliance strategies with COFI’s principles and expectations. Early preparation will ensure agility and competitiveness once the new regime takes effect.
Preparing for the requirements
COFI will introduce a range of practical obligations that institutions should begin planning for now, which includes the following: Financial institutions should monitor and participate in the formal consultation processes that may follow once COFI is introduced to Parliament.
Financial institutions are advised to begin mapping their current activities to prepare for the activity-based licensing model, and to develop compliance frameworks aligned with this approach.
Principles from the Retail Distribution Review will also need to be considered to ensure readiness for implementation.
• Governance structures may need to be revised, or developed from scratch, and institutions must ensure that key persons meet, and continue to meet, the fit and proper requirements.
• Fair customer treatment practices must be strengthened in line with the Treating Customers Fairly (TCF) principles. Financial resources across the financial institution should also be reviewed to ensure they remain adequate.
• Financial institutions must evaluate their operational capabilities to ensure they are ready to meet COFI’s demands. Reporting frameworks may need to be updated, while transformation policies and related structures should be developed or enhanced.
• Automated/technology-driven systems and processes should also be reviewed to confirm they remain fit for purpose under the new regulatory expectations.
The above should be considered in light of the broader range of financial products and services and activities that will be affected by COFI.
Who will be affected by COFI
COFI will apply broadly to all financial institutions as defined in the Financial Sector Regulation Act, 2017 (FSR Act). This includes financial product providers, financial service providers, the holding companies of financial conglomerates, and any person licensed or required to be licensed in terms of a financial sector law.
A financial product provider is any person that, as a business or part of a business, provides a financial product.
Under the FSR Act, “financial product” will include: participatory interests in collective investment schemes and alternative investment funds; non-retail lending; life and non-life insurance policies; retirement funds and friendly society benefits; deposits under the Banks Act; health service benefits provided by medical schemes; credit under the National Credit Act; warranties, guarantees or other credit support arrangements; and any other facilities or arrangements designated by regulation.
A financial service provider is any person who, as a business or part of a business, provides
“COFI is expected to be introduced in Cabinet towards the end of 2025”
a financial service. This includes providing financial products; distribution; financial advice; investment management; administration; custodian services; crypto asset custodial services; payment services; debt collection; financial market activities; benchmarks; credit rating services; third-party treasury management; and corporate advisory services. Any financial institution providing one or more of these financial products or financial services will be required to comply with COFI.
Licensing and ongoing obligations
Institutions offering these financial products and financial services will need to be licensed under COFI and meet ongoing obligations including: ensuring that key persons and representatives satisfy the fit and proper requirements; maintaining sound corporate governance standards; implementing appropriate remuneration and conflict of interest policies; and having a transformation policy in place.
Financial institutions must maintain adequate financial resources and operational capabilities at all times and meet all reporting, record-keeping and audit requirements under COFI. To prepare for the relicensing, financial institutions should map all activities, services and products against the new requirements to determine the correct licensing approach.
While the new regulatory framework will require significant preparation, it presents a strategic opportunity for financial institutions to build trust, improve governance, and position themselves for long-term resilience and growth. Proactive planning and early action will be key.
Confused about crypto and exchange control? This is what the law says
By Janél King Senior Associate, AJM
In a landmark decision in Standard Bank of South Africa v South African Reserve Bank and Others (047643/2023) [2025] ZAGPPHC 481 (15 May 2025), the Pretoria High Court addressed the regulatory status of cryptocurrencies under the South African Exchange Control Regulations.
The case originated from the liquidation of Leo Cash and Carry (Pty) Ltd (“LCC”), a wholesale trading business that had engaged in significant cryptocurrency transactions. In late 2019, LCC transferred R15m from its Standard Bank current account into a money market account to secure an overdraft. Of this amount, R10m was ultimately used to settle debt with Nedbank.
In early 2020, the South African Reserve Bank’s (“SARB”), through its Financial Surveillance Department, instructed Standard Bank to freeze LCC’s
accounts, citing suspected contraventions of Exchange Control Regulations. SARB alleged that LCC had acquired Bitcoin locally and exported it to foreign exchanges in violation of Regulations 3(1)(c) and 10(1) (c) (“the Regulations”), which prohibit the unauthorised export of currency or capital. The funds were subsequently declared forfeited to the state. The applicant contested this interpretation, arguing that cryptocurrencies do not fall within the definitions of “capital” or “currency” as stipulated in the Regulations.
The Pretoria High Court concurred with the applicant, ruling that cryptocurrencies are not currently classified as “capital” or “currency” under the existing Exchange Control Regulations. Consequently, the court held that transferring cryptocurrencies offshore does not contravene the provisions of Regulation 10(1)(c). However, an application for leave to appeal has been filed, and the matter remains subject to further judicial scrutiny. Should the appeal be unsuccessful and the High Court’s ruling stand, the practical implication is that cryptocurrencies may continue to be exported without prior approval from the SARB. This reflects the current status quo, as the lack of clear regulatory guidelines has created a legal grey area that allows traders to operate amid uncertainty.
“Cryptocurrencies are not currently classified as ‘capital’ or ‘currency’ under the existing Exchange Control Regulations”
While this ruling may be perceived as a temporary victory for cryptocurrency traders, it is unlikely to represent the final stance on the matter. Regulatory bodies are aware of the existing gaps and are expected to introduce clarifications or amendments to the Exchange Control Regulations to address the treatment of cryptocurrencies.
The South African tax treatment of cryptocurrencies, on the other hand, is clear. The tax treatment depends on the taxpayer’s intention and the nature of the transactions. Where a taxpayer acquires and disposes of cryptocurrency as part of a profit-making scheme or business activity, such as frequent trading or arbitrage, any resulting gains are generally treated as revenue and taxed at the individual’s or entity’s applicable income tax rate. Conversely, where cryptocurrency is acquired as a long-term investment and later disposed of, any gains may be considered capital in nature and subject to Capital Gains Tax.
Regardless of the classification, all cryptocurrency-related income or gains must be disclosed in the annual income tax return. The South African Revenue Service (“SARS”) has clarified that failure to declare such transactions constitutes non-disclosure, or worse, tax evasion, which may result in interest and penalties being imposed. Moreover, SARS has increasingly employed third-party data sources and international reporting frameworks to identify locally and offshore undeclared cryptocurrency holdings.
As such, taxpayers engaged in purchasing, selling, or exchanging cryptocurrencies, whether onshore or cross-border, should ensure complete transparency in their tax disclosures and maintain adequate records to substantiate the nature and timing of their transactions.
While the Pretoria High Court’s ruling provides temporary clarity on the export of cryptocurrencies, the legal and regulatory landscape is likely to evolve. Stakeholders in the cryptocurrency market should remain vigilant and prepared for potential regulatory changes.
Building financial inclusion through stablecoins
By Sandy Welch Editor, MoneyMarketing
For Jonathan Katende (pictured), founder of Lipaworld, the drive to improve financial inclusion is deeply personal. “I’m a two-time immigrant,” he explains. “Born in the DRC, I grew up in Johannesburg. I experienced first-hand the challenges my parents faced with remittances and later, when I moved to New York with my family, I came up against the same barriers again, such as difficulty opening a bank account, transferring credit history, and accessing financial services.”
These recurring pain points gave Katende the conviction that there had to be a better way. Drawing on his background in technology and operations, he set out to build something “substantial, but also purposeful”, a platform that would serve individuals facing the same struggles he had. That vision became Lipaworld, a fintech venture using stablecoins to provide secure, accessible financial services.
Practical crypto for real-world problems Katende is quick to distance his project from the hype-driven side of crypto. “We’re not about promoting speculative trading or hype,” he stresses. “For us, it’s about creating an operating system that actually works for people, whereby we make financial services accessible, transparent and empowering.”
Stablecoins, particularly USDC, the regulated dollar-backed token, lie at the core of Lipaworld’s model. “Stablecoins enable users to move money globally with lower costs, greater speed and stronger control over their own funds,” he says. “In markets with currency volatility, such as Argentina or parts of Africa, we’ve seen people adopting stablecoins naturally because they simply work better than traditional alternatives.”
Three core customer groups
Lipaworld’s focus falls on three main demographics:
• Immigrants – particularly members of the South African diaspora abroad who want to move funds back to loved ones.
• Freelancers – often younger workers paid through platforms like Upwork or Fiverr, whose income is global but whose banking options are limited.
• Businesses – especially small South African firms seeking to trade with US customers but struggling with the requirement for US bank accounts.
“We help them unlock that,” Katende says. “We can open up virtual bank accounts, move
funds locally, and soon we’ll be offering payroll solutions too. But while we’re intentional about these three groupings, we’re equally committed to grassroots accessibility. South Africa has an unemployment problem but that doesn’t mean people should be left out of the financial ecosystem.”
Why USDC?
Lipaworld’s decision to build around USDC was both practical and strategic. “As a regulated stablecoin backed one-to-one with reserves, it gives users protection and trust,” Katende explains. “Every coin issued is held in cash or bonds, so if you want to redeem, there’s an obligation to give you dollars back. That’s not the case with every stablecoin. For us, as a New York-headquartered business and Circle Alliance partner, USDC was the clear choice.”
Regulation and opportunity in Africa
While regulation of crypto and stablecoins is uneven globally, Katende sees momentum building. “South Africa is one of the shining lights on the continent,” he notes, referencing new licensing regimes for crypto providers. “Nigeria is also moving in that direction. The US is playing catch-up, and once regulation is formalised there, it will filter down. African states can, and should, be proactive, because regulation brings trust and unlocks new opportunities, even the potential for local stablecoins.”
Financial literacy remains a barrier in much of Africa, but Lipaworld has designed its platform to bridge that gap. “We wanted to make sure that even non-crypto users don’t feel like they’re using crypto,” Katende says. “For the cryptonative, the wallet address and functionality are visible. For someone completely new, it feels like using a regular payments app. Education comes through intuitive design – it’s simple, familiar, and accessible.
“From a financial education perspective, I think there are two things to be said,” Katende explains. “Number one, our youth is super locked in and clued up on what’s happening with stablecoins. But the real challenge lies with the underserved, people living below the breadline who want to top up their accounts.” This duality shapes Lipaworld’s approach. Inspired by Capitec’s grassroots-focused banking model, Katende wants his fintech to “speak the language people want to hear” while also catering for a globalised, mobile generation.
Redefining remittances
Lipaworld’s innovations extend beyond money transfers. Its marketplace allows users abroad to send goods and services directly. For example,
“It’s about creating an operating system that actually works for people”
a voucher redeemable at a spaza shop for essentials like bread and milk. “Why go through a bank just to withdraw cash when you can send a voucher for its intended purpose?” Katende asks. “That’s a small but powerful shift.”
The company is also preparing to launch a stablecoin card. “Think about subscriptions,” he explains. “If you’re paying from a rand account, the amount changes every month with FX rates. With a dollarised stablecoin card, $5 is $5, there’s certainty. It’s better for subscriptions, travel and even for people who want to hold some of their savings in foreign currency.”
What advisers need to know
Financial advisers, many of whom remain cautious about crypto, should view stablecoins not as speculation but as empowerment. “Stablecoins in a self-custodial wallet give people real control of their assets,” Katende stresses. “Emergencies happen, so what greater unlock than to access your funds in real time, and even earn yield on them? We’re now seeing the rise of yield-bearing stablecoins, where you can earn interest directly. It’s financial autonomy.”
And for those worried about security? “It’s absolutely paramount,” Katende says. “We’ve built enterprise-grade protections: twofactor authentication, unique PINs for every transaction, and recovery options if a device is lost. Security has to be balanced with usability, but our goal is simple: protect users while keeping access seamless.”
A vision with purpose
Ultimately, Katende frames Lipaworld as more than a fintech start-up: it is a mission to build financial systems that genuinely work for people. “For me, this is personal,” he says. “It’s about solving pain points I’ve lived through and creating something intentional – something that empowers people, especially immigrants and communities who are underserved by traditional banks. That’s the real value of stablecoins and the opportunity we’re unlocking with Lipaworld.”
Tokenised stocks bridge gap between crypto and traditional finance
By Sandy Welch Editor, MoneyMarketing
Crypto has taken another bold step toward mainstream investing with the launch of tokenised stocks on Luno. This new feature, unveiled last month, gives South Africans the ability to buy the crypto versions of well-known US blue-chip shares directly from the Luno app, using rand.
Christo de Wit, Country Manager for Luno South Africa, says the innovation opens the door for more people to participate in global markets without the complexity and cost of traditional offshore investing.
“We have 61 tokenised stocks available on Luno,” says De Wit. “These are crypto versions of US shares, backed one-to-one by the real assets, and pegged to their value, much like stablecoins are pegged to fiat currency. Whatever happens on the stock exchange, the token tracks that price.”
Lowering barriers to global markets
The appeal lies in accessibility. In the traditional route, South Africans wanting to buy US shares must use a broker, complete a foreign exchange conversion, and often dip into their discretionary allowance. Tokenised stocks bypass those hurdles because they’re traded on the blockchain and classified as crypto assets. Investors can start with as little as R20, making it possible to experiment, learn, and gradually build a portfolio that blends digital assets with traditional market exposure.
The tokenised stocks are simple and easy to access on the Luno app, taking the buyer on a journey similar to what they would follow if they were buying traditional crypto. Rands are loaded into the user’s wallet, and can then be used to invest in the large range of stocks on the platform. “The significant thing is that you use rand and because this purchase sits on the blockchain, at the moment it is seen as a crypto asset and not subject to your discretionary allowance.“ This is about democratising investing,” says De Wit. “For some, it’s an entry point into crypto
via something they already understand –stocks. For others, it’s a chance to diversify within a single platform, without high capital requirements or red tape.” Stock investing has always been seen as a vehicle for the more affluent,” he explains. “This bridges that gap. It makes it accessible to more people.”
Implications for financial advisers
While many financial advisers still see cryptocurrency as something to be wary of, this may be a gamechanger for them. “I think a lot of clarity is still needed. Financial advisers still need to fully understand the space and any risks.” De Wit believes the tokenised stocks also present independent financial advisers the opportunity to create their own investment bundles. “They could start bundling stocks and crypto. I think it’s important that financial advisers pay attention to the changes underway, because there is a school of thought that eventually everything is going to be tokenised in one way or another.” He says that Luno is participating in an FSCA initiative to develop a Financial Education Charter, aiming to enhance cryptocurrency literacy among South Africans.
Protecting against scams
New data revealed by Luno shows that while crypto-related scams affect less than 1% of their 14 million customers, scams and fraudulent misrepresentation remain the most prevalent forms of fraud in digital currency. The company handled 516 scam-related customer queries over the past three months of this year. “When you look at the numbers in the context of 14 million customers, it is very few cases.”
He explains that when it comes to the new tokenised stocks, Luno has applied the same stringent safeguards it uses for all its crypto assets. “We’ve done the same level of penetration testing, and these stocks will be included in our proof of reserves, so customers know they’re backed by realworld shares. We only work with trusted liquidity providers we’ve used for years. We’ll never compromise on security because trust takes years to build, but only a day to lose.”
The importance of regulation
For many advisers and investors, the regulatory environment will be as important as the technology itself. While developments in the US such as the Genius Act and the Securities and Exchange Commission’s shifting stance on crypto make global headlines, South Africa’s approach is influenced more by the UK and Europe.
De Wit points out that local regulators moved quickly on crypto rules partly due to the country’s greylisting, but that adoption patterns here may be slower than in the US. “Whatever happens in the US tends to ripple across the world,” he says. “But in reality, our government looks more to the UK and Europe for guidance, and they’ve taken a far less progressive approach. That said, increased US regulation could still inspire our regulators over time.”
As for market reception, De Wit is optimistic. Early reactions from the press and potential investors have been positive, with many seeing tokenised stocks as a game changer that could merge digital assets with traditional markets in a meaningful way.
“This gives South Africans access to US stocks without FX conversion or tapping into their discretionary allowance,” he says. “It also sparks ideas for the future – could we see similar products for local companies, private markets, or even tokenised private equity? The conversation around tokenisation has now expanded far beyond stablecoins. It’s opening up a world of opportunity.”
By John Colson Chief Marketing Officer at Yellow Card
TThe GENIUS Act ushers in a new era of trust for stablecoins
he financial world is at a crossroads, and whether South African businesses choose to lead or lag behind will depend on how seriously we take one undeniable truth: stablecoins are here to stay, and now they’ve got the legal scaffolding to prove it.
With the passage of the Global Enterprise and National Infrastructure for Utility Stablecoins (GENIUS) Act in the United States, stablecoins are no longer operating in regulatory limbo. They’ve been elevated from a speculative fringe technology to a legitimate, regulated financial tool –and frankly, it’s about time.
For years, we’ve watched global treasury leaders and CFOs hesitate, and rightly so. In the absence of regulation, stablecoins were seen as high-risk, even if their potential to transform cross-border payments and liquidity management was obvious. The GENIUS Act puts an end to that uncertainty. It introduces a comprehensive regulatory framework that prioritises security, transparency and stability – exactly what institutional players have been waiting for.
This isn’t just some cryptocurrency cheerleading. This is a fundamental shift in the infrastructure of global finance. Stablecoins, when regulated and implemented correctly, aren’t speculative assets, they’re tools to move money faster, cheaper, and with more trust than the outdated systems most businesses still rely on.
As Craig Stoehr, General Counsel at Yellow Card, rightly pointed out: “The GENIUS Act solidifies a place for stablecoins in global financial markets… While this is a US bill, its impact is global.”
He’s not wrong. This legislation sets a global precedent. Countries like South Africa, Nigeria, Kenya, and others in emerging markets should be taking notes – and fast. The GENIUS Act shows that it’s possible to legislate for innovation without compromising on compliance.
What does this mean for South African businesses?
If your company operates across African borders, you know the pain of traditional cross-border payments including delays, excessive fees, opaque FX rates. Stablecoins offer an alternative that’s efficient and scalable. And now, with regulatory clarity in place in one of the world’s biggest financial jurisdictions, the excuse of regulatory uncertainty is no longer valid.
This is the moment for local businesses to ask the right question: Not "if" we adopt stablecoins, but "how" we do it best.
Here’s what you stand to gain:
• Lower FX and settlement costs: Use stablecoin-powered payment rails to bypass the expensive, slow correspondent banking system.
• Better liquidity management: Tap into 24/7 liquidity pools without regulatory guesswork.
• Confidence to scale: Build treasury operations on a legally recognised, secure infrastructure.
Stablecoin experts have been preparing for this moment since day one. Our ‘regulation-first’ approach, working closely with regulators across Africa, means we’re uniquely positioned to support businesses looking to integrate stablecoin solutions with full compliance and security.
The GENIUS Act may be American in origin, but its implications are global, especially for fast-growing economies like ours. It’s time to stop seeing stablecoins as a risk and start viewing them as the competitive advantage they truly are.
Turning green power into a tradeable asset
For years, blockchain has been hailed as a revolutionary technology with the potential to transform industries far beyond cryptocurrency. Yet for many businesses, its practical application has seemed distant – until now. Growthpoint Properties is about to change that.
When Growthpoint’s e-co₂ renewable energy initiative goes live in October 2025, the company will not only deliver wheeled green electricity to 10 Sandton office buildings but also unlock a new way for tenants to prove, and profit from, their clean energy use. The breakthrough lies in the partnership with Fuel Switch, Africa’s first open blockchain-enabled renewable energy certificate (REC) exchange.
How it works in practice
Every megawatt-hour of green electricity Growthpoint purchases is verified by Fuel Switch’s blockchain platform. Using IoT sensors, AI and blockchain smart contracts, the energy is independently certified as renewable. This certification generates a digital REC – a tokenised asset stored securely on the blockchain.
For Growthpoint’s tenants, this means their smart meters will automatically feed consumption data into the system. In return, digital RECs are issued directly into free digital wallets, which tenants can access via the Fuel Switch Exchange platform.
With these certificates, tenants can:
• Prove compliance with carbon reduction and ESG reporting standards
Offset emissions, particularly Scope 2, with full auditability
• Sell their RECs on voluntary markets, turning sustainability into a revenue stream.
In effect, blockchain transforms renewable energy consumption into a transparent, tradeable digital asset, a real-world example of the technology’s long-promised potential.
Breaking barriers in the green economy
Until now, South Africa’s participation in the global voluntary REC market has been limited. High costs, opaque manual processes and slow settlement made it accessible only to the largest corporates. Blockchain changes that. Fuel Switch’s system enables
instant settlement of transactions that used to take weeks, at marginal fees rather than prohibitive costs. Its infrastructure can handle over 10 000 trades per second, making it scalable to thousands of businesses.
“By combining our e-co₂ green electricity with Fuel Switch’s blockchain technology, we’re opening the clean energy market to businesses of all sizes,” says Werner van Antwerpen, Growthpoint’s Head of Corporate Advisory. “It’s a game-changer for participation in the green economy.”
A new business tool
For corporates facing pressure to hit net-zero targets and meet IFRS-aligned sustainability reporting, the ability to verify clean energy consumption instantly is invaluable. But just as importantly, blockchain-enabled RECs create new financial opportunities.
“Blockchain transforms renewable energy consumption into a transparent, tradeable digital asset”
Major global players like Google and Amazon already buy RECs to achieve their renewable energy goals. Growthpoint’s initiative opens the door for South African businesses, large and small, to tap into this growing demand. Gideon Maasz, COO of Fuel Switch, believes this is just the beginning: “Our mission is to make participation in the green economy easier, quicker and more transparent. Blockchain is the backbone that makes every REC verifiable, tradeable and audit-ready.”
The bigger picture
For Growthpoint, the initiative supports its own net-zero 2050 target. But for South Africa, the implications are wider: a more inclusive energy market, stronger accountability, and the chance to democratise access to the financial benefits of clean energy.
This is blockchain not as theory, but as infrastructure – delivering trust, transparency and value in the everyday business of consuming electricity. In doing so, it brings both sustainability and blockchain into the realm of practical, profitable reality.
By Hymne Landman CEO: Wealth Management at Momentum Wealth
IDriving innovation while keeping the human touch
n today’s fast-evolving investment landscape, investment platforms are playing a pivotal role in helping financial advisers meet the growing demand for cost transparency, administration efficiency, and personalised client service. As technology reshapes the financial services industry, investment platforms are uniquely positioned to support advisers in building better portfolios, navigating regulatory shifts, and delivering long-term value, without losing the human touch that defines the profession.
Technology is no longer just a tool; it’s a game-changer. But while the tools may be new, the heart of wealth management remains timeless: understanding clients, building trust, and delivering value. The challenge for advisers is to overcome three persistent hurdles: a shortage of time, limited scalability, and the need to grow their client base. Technology can help, not by replacing the adviser, but by amplifying their impact and freeing up time to focus on what truly matters: the client and their dreams and aspirations.
Fintech solutions are already transforming the way advisers operate. Digital onboarding platforms, for example, streamline client acquisition by integrating Know Your Customer (KYC) checks, risk profiling, and digital signatures into a seamless experience.
These tools enhance efficiency, reduce human error, and lower costs, so advisers can scale their practices and deliver a more personalised service.
Data is another powerful enabler. Like crude oil, raw data has limited value until it is refined. By applying data science, investment platforms can decode investor behaviour and improve investment outcomes. Momentum Wealth’s annual Sci-Fi report* revealed that in 2024, investors on its platform destroyed more than R60m in value through poorly timed switches in flexible investments and living annuities. This ‘behaviour tax’ can exceed 4% in lost returns in a single year.
Using machine learning, it’s possible to identify key drivers of switching behaviour, such as investment size and client age, and categorise investors into behavioural archetypes like the Avoider, the Anxious Investor, the Assertive Investor, and the Market Timer. With this insight, advisers can personalise their advice and reporting,
“By applying data science, investment platforms can decode investor behaviour”
helping clients avoid costly emotional decisions and strengthening the adviserclient relationship. These behavioural insights from our behavioural finance and research teams can support advisers to provide even more precise and personal advice to their clients.
Retirement planning is another area where investment platforms are adding value. Tools like our Income Illustrator, which is available for financial advisers to use in their planning, transform retirement planning from guesswork into precision. By running thousands of simulations under conservative assumptions, this easy-to-use tool projects potential outcomes based on asset allocation and long-term economic views. It even allows for hybrid solutions, such as pairing a living annuity with a Guaranteed Annuity Portfolio, to improve income certainty while accommodating inheritance preferences.
Ultimately, the success of an investment platform lies in its ability to balance innovation with empathy. The art of wealth management is knowing when to lean on technology and when to step in with human judgment.
In a world where fintech is rewriting the rules, investment platforms are proving that the future of wealth management is both high-tech and deeply human.
At Momentum Wealth, we provide financial advisers with a diverse range of investment and retirement solutions, offering access to both local and global investment markets to meet the varied needs of your clients. Whether they are looking to create and grow their wealth, protect their assets, or earn an income, we have a personal investment solution to support them on their journey to success. To learn more about how we can assist you and your clients, visit our website at momentum.co.za
How LISPs are powering adviser growth
By Sandy Welch Editor, MoneyMarketing
For many financial advisers, the rise of linked investment service providers (LISPs) has been nothing short of transformative. What once required multiple contracts, endless paperwork, and limited investment choice is now accessible through a single platform.
“Think of a LISP as a supermarket for funds,” explains Daryll Welsh, Head of Product for Ninety One Investment Platform. “Thirty years ago, if you wanted to buy a Ninety One fund, a Coronation fund, and an Allan Gray fund, you needed three separate application forms, three accounts, and three processes. It was time-consuming and cumbersome. LISPs changed all that.”
By interposing themselves between advisers, clients and unit trust companies, platforms opened up unprecedented choice. With one application, clients can access a wide range of funds across multiple providers. Over time, LISPs added ‘wrappers’ such as retirement annuities, living annuities and preservation funds, allowing investors to diversify across fund managers within the same product.
This open-architecture model didn’t just benefit investors; it unlocked independence for advisers. “In the past, many advisers were tied to a single product supplier,” says Welsh. “Platforms enabled the growth of independent financial advisers by letting them choose the best mix of solutions for their clients, without being restricted.”
For advisers, LISPs have also simplified administration. Instead of juggling contracts with multiple providers, they manage client investments through a single platform, supported by reporting, performance analysis and portfolio management tools. Increasingly, technology is the differentiator. “We’ve invested heavily in technology to digitise the platform,” Welsh notes. “Advisers can now manage their entire client base online, including switching funds, drawing reports and tracking performance, all with greater efficiency.”
Price matters but so does quality
And what about cost? Welsh acknowledges that transparency is vital. “Pricing must be competitive, but advisers also look at the value they receive – whether it’s ease of use, diversification options, or technology that helps them scale their practice. Platforms that deliver on both service and innovation will stand out.”
However, as he points out, pricing is only part of the story. “At the end of the day, it’s about
“With one application, clients can access a wide range of funds across multiple providers”
value for money,” he explains. “A platform must also deliver better outcomes for advisers and clients. Profitability matters too – it allows us to reinvest in technology, reporting and tools that make advisers’ lives easier and improve the client experience.”
This balance, says Welsh, is critical in a fiercely competitive industry where ‘cheap’ is not always sustainable. “Some platforms in the past went in with pricing that was simply too low, and eventually they had to reprice. That’s the worst situation for advisers, because they’re the ones who have to explain fee hikes to clients.”
Staying secure in a digital world
Another area where platforms must deliver is security. With most transactions now digital, the protection of client data and assets is paramount. “Cybersecurity is sacrosanct,” Welsh emphasises. “We regularly stress-test our systems with penetration tests to ensure resilience against sophisticated attacks. Information security is a core part of our business.”
South Africa, he argues, has much to be proud of. “For many years, our platforms were leading globally in terms of technology. Even today, I think we’re on par with, and in some cases ahead of, international peers. Where we lag slightly is in mobile app development for the end client; however, as most engagement still happens via advisers in their offices, this is not a critical issue to address right now, but that could evolve with younger generations.”
Where does the future lie?
Looking ahead, Welsh sees innovation centred on consolidation and simplification. “Clients want all their assets in one place for ease of management, just like they do with
their banking. That’s why we’ve launched stockbroking capabilities alongside funds, so advisers can now bundle different asset types on one platform.”
The rise of crypto adds another dimension. While direct holdings in retirement products are restricted, platforms can already provide exposure via listed vehicles like ETFs in nonretirement products. “It’s moving slowly, but the building blocks are coming together,” says Welsh. And then, of course, there’s regulation. “Compliance isn’t optional, it’s essential. Projects like the two-pot system require huge investment in systems and resources. Sometimes it means dropping everything to meet new requirements. That’s the reality of running a platform in today’s environment.”
Simplification leads to consolidation
A final trend shaping the adviser landscape is consolidation. “Five or six platform relationships were once common. Now, most advisers use two, maybe three. It simplifies their operations, makes client management easier, and allows them to scale more efficiently,” Welsh notes. That means platforms must work harder than ever to earn and retain a place in the adviser toolkit – not just through pricing, but through security, innovation, compliance and, above all, the value they deliver. For advisers navigating an increasingly complex investment landscape, LISPs offer more than convenience. They are engines of growth, expanding choice, simplifying processes, and equipping advisers with what they need to build better portfolios for their clients.
Daryll Welsh, Head of Product for Ninety One Investment Platform
Transformation is not optional – it’s the future of asset management
Futuregrowth’s recently appointed CEO, Vuyolwethu Nogantshi, has stepped into the role at a pivotal time for both the business and the wider asset management industry. For Nogantshi, the move is about embedding transformation as a core driver of growth, sustainability and long-term impact, whether that relates to ownership structure, graduate pipelines, grassroots investments or boardroom decisions.
“The principle runs through every layer of the business. Transformation is about ownership, about where capital flows and about whether your investment philosophy is truly inclusive,” he says. “Futuregrowth is a firm with a strong reputation and a smart, capable team,” he explains. “But there are still areas where we can improve and add value. That excites me because I’m a person who thrives on relevance and the opportunity to make a real difference.”
Taking on the CEO role, Nogantshi emphasises authenticity, both internally and externally. “Once you’re in this position, your voice doesn’t just matter inside the business, it carries weight across the industry,” he notes. “It’s about being genuine, consistent and purposeful. Our responsibility is not only to lead Futuregrowth, but to help shape where the industry goes in the next five to ten years.”
That requires balancing hard metrics with human values. “It starts at home,” he says. “Let’s be nice as people. Let’s do a good job. And let’s hold ourselves to the same standards we expect from others.”
“This isn’t about crisis management or holding statements, it’s a visible, deliberate transition”
A seamless transition of leadership Nogantshi’s appointment is part of a carefully planned succession process, with the outgoing CEO ensuring continuity. Rather than the abrupt leadership changes often seen in financial services, Futuregrowth is managing its transition in a way that safeguards both client confidence and business performance. “This isn’t about crisis management or holding statements,” he says. “It’s a visible, deliberate transition. We’ve got continuity, we’ve got new energy, and we’ve got a clear mandate to deliver value.”
With DEI (as it is called in the US) coming increasingly under the microscope globally, and not always for the right reasons, Nogantshi stresses that South Africa’s context makes transformation fundamentally different. “In South Africa, diversity, equity and inclusion aren’t optional. They’re an imperative,” he explains. “Our history means transformation is more than a social aspiration; it’s essential for future prosperity. Asset managers can’t operate in isolation from this reality. We are gatekeepers of capital that comes from the very people who need to see change.”
staff complement that is more than 85% Black, and a philosophy of directing capital toward inclusive growth. While investments in affordable housing, healthcare, renewable energy and fintech are financial opportunities, they’re also channels for creating systemic change. One example is Sourcefin, a platform supporting Black- and youth-owned SMEs, where 90% of clients come from previously marginalised groups. “This is transformation at grassroots level,” says Nogantshi. “You’re creating value, but you’re also generating returns for clients. The two are not mutually exclusive.”
He believes strongly that global companies doing business in South Africa need to align with these values. For Nogantshi, this is about aligning fiduciary responsibility with social progress. “It was always seen as an either/or: you can deliver returns, or you can make an impact. But Futuregrowth has shown you can do both. Transformation, sustainability and returns are not mutually exclusive.”
Taking great credentials to new heights Futuregrowth’s track record is already striking: close to 70% Black ownership, a
Clients driving change
Nogantshi notes that pension funds and institutional investors are increasingly demanding transformation as part of their investment mandates. “Clients are realising the agency they hold,” he says. “They control hundreds of billions of rands. That capital doesn’t have to drive change, but it can, and increasingly, it does. It’s becoming an unstoppable snowball.”
He believes every investment is effectively a vote for the kind of economy you want to build. This has often put Futuregrowth
in the spotlight, such as in the mid-2010s when it challenged state-owned entities on governance grounds. “People ask me whether we’ll continue to be bold,” he says. “The answer is yes but bold in a sensible way, always in service of our objective to be an engaged developmental investor. We’re not afraid to challenge conventional approaches when it matters.”
Building skills for the future
One of the greatest challenges for transformation is skills. Nogantshi acknowledges that within the entire asset
“Transformation is more than a social aspiration; it’s essential for future prosperity”
sustained investment in developing diverse future leaders. “Transformation must be systemic. It requires patience, persistence and industry-wide collaboration.”
Technology, accountability and the next generation
Nogantshi also sees digital transformation and generational shifts reshaping asset management. “Technology has democratised access,” he says. “Whether it’s remittances, education or financial services, digital platforms expand inclusion for those who were previously excluded.” Younger entrants into the industry, he adds, are also pushing the boundaries. “They demand accountability, transparency and authentic progress. If you’re superficial in your approach, they’ll call you out, publicly, and fast. That forces us all to be better.”
Convergence and authentic progress
The CEO sees the future of asset management shaped by a convergence of regulation, client demands and societal imperatives. “Transformation done well is powerful. Done poorly, it creates cynicism. But between regulation, client mandates and momentum, we are moving toward an industry that reflects the demographics and aspirations of the country.”
The task, he says, is not to fear transformation, but to embrace it as a driver of growth. “If we grow talent, grow corporates and allocate capital into opportunities that expand the economy, everyone benefits. We need to build a healthy, sustainable future where success is shared.”
About Vuyolwethu Nogantshi
management industry, talent pipelines remain thin, but he believes the solution lies in long-term thinking.
“Ours is an industry that talks constantly about the importance of long-term investing,” he says. “Yet when it comes to building skills, too often we default to short-term thinking. We worry about training young people only to see them leave. But if the industry grows talent collectively, we all benefit.” Futuregrowth is tackling this through graduate programmes, mentorship structures, and
Nogantshi acknowledges progress has been slow, but believes the trajectory is encouraging. “There are firms today that have broken through barriers that once seemed impossible. We’ve still got a way to go, but the momentum is there. And the legacy we leave will be measured not only in assets under management, but in how authentically we transformed the industry and the country.”
A bigger picture mindset
For Nogantshi, achieving transformation will mean staying relevant and resilient in a changing society. “This is a long
Prior to his new position at Futuregrowth, which he started in July, Nogantshi held leadership roles at Allan Gray, Nedgroup Investments and Alexforbes. As an Executive Director of Allan Gray South Africa and Allan Gray Life, and Head of Institutional Client Services, he oversaw strategic leadership, risk management, financial oversight and regulatory compliance. Most recently, as a Principal at Absa, he led three businesses within Absa Corporate and Investment Bank’s Markets division (Retail Structured Products, Exchange Traded Products, and Fund-Linked Derivatives) driving financial performance and operational excellence.
game,” he says. “If we don’t commit to building skills, creating opportunity and investing in inclusion, we’ll be having the same conversation in 20 years’ time. But if we take the bigger-picture view, we can reshape the industry, and our country, for the better.”
Futuregrowth is a licensed FSP.
How Nedgroup is turning purpose into practice
Speaking at the recent IRFA Conference in Cape Town, Tumisho Grater, Investment Analyst, Multi-Manager Team, Nedgroup Investments explored the transformative power of purpose-based investing.
Around the world, we are seeing how capital, when deployed with intention, can deliver not only strong financial returns but also profound social impact. One of the most compelling examples comes from Bangladesh, where the Grameen Bank redefined access to finance. What began as a small pilot project in 1976 has since become a global benchmark for inclusive banking, lifting millions out of poverty and inspiring models of financial empowerment across more than 40 countries.
At the heart of this story is the principle that finance, when aligned with purpose, can be a powerful lever for change. The Grameen Bank removed barriers, extended credit to the ‘unbankable’, empowered women, created jobs, and fostered community resilience, all while remaining financially sustainable. More than 75% of women borrowers transitioned out of poverty, illustrating the scale of transformation that is possible when finance works inclusively.
Now, why is this relevant for South Africa? Despite being 9 000km apart, Bangladesh and South Africa share striking similarities: deeprooted challenges of unemployment, inequality, and poverty. Yet their trajectories have diverged. While Bangladesh has made steady progress in poverty reduction since the 1990s, South Africa’s path has been more volatile, with poverty rates rising again after 2015.
The difference lies in the choices made. Bangladesh chose to mobilise capital for purpose, and the results speak for themselves. Here in South Africa, our pension fund industry, valued at more than R4.6tn, has immense potential to play a similar catalytic role. If even a fraction of that capital were purposefully aligned with transformation, sustainability, and inclusive
growth, the impact could be extraordinary.
At Nedgroup Investments, we believe that long-term capital can do more than grow portfolios, it can help reshape the nation’s future. We see our role as custodians of longterm capital extending beyond financial stewardship. The real opportunity lies in translating purpose into practice, ensuring that the way we allocate capital supports both growth and positive change.
Our Multi-Manager team plays a central role in this journey. By carefully selecting and blending specialist managers, we build portfolios that are designed to deliver consistent, risk-adjusted returns. But our lens extends further: we assess how these managers integrate environmental, social, and governance (ESG) principles, and how their strategies align with the transformation and sustainability agenda in South Africa.
By embedding ESG principles, supporting transformation, and ensuring alignment with the UN Sustainable Development Goals, pension funds can generate resilient financial returns while unlocking meaningful social progress.
This could mean investing in renewable energy projects that reduce carbon risk, supporting entrepreneurs and SMEs that create jobs, or backing infrastructure that drives inclusive economic growth. These investments deliver tangible impact while securing returns that benefit retirees for decades to come.
This is not simply a tick-box exercise. It is a recognition that companies and fund managers who embrace sustainable practices are better positioned for the future. They are more resilient to regulatory shifts, more innovative in seizing new opportunities, and more attuned to the
needs of the societies in which they operate. In short, they are better long-term investments.
However, when it comes to ESG, you can’t have transformation and leave people behind. Instead of excluding companies that would be seen as laggers, like oil companies or mining companies, we look for companies that are improving, those on an upward trajectory. This specific way of looking at it allows us to empower transformation across the spectrum, which means we are not just rewarding the companies that are doing well, but also supporting the ones that are improving.
From an energy perspective it makes sense, because if you look at South Africa’s equity universe, it is relatively small. If you were about to exclude a major heavyweight like Sasol, as an example, it would have an impact on the performance of the fund, because it has the most significant weighting in terms of index performance. To counter this, we would have another portfolio that allows us to participate in the upside, while also being able to engage that company. This is how you see active engagement, where we balance impact and performance.
Purpose-driven investing is not about sacrificing performance, it is about redefining it. It asks us to measure success not only by the wealth we accumulate but also by the legacy we leave.
As asset managers and advisers, we have a responsibility to ensure that capital works harder, travels further, and builds deeper value for clients and communities alike. At Nedgroup Investments, we are committed to ensuring that every portfolio decision carries the dual promise of financial resilience and social progress.
The central question is no longer only “What do we invest in?” but also “What do we leave behind?”.
Life vs living annuities – or both?
Making the right choice
Choosing between a life annuity, a living annuity, or a combination of both is a significant decision that can shape your clients’ financial wellbeing throughout retirement. Each option offers different benefits, risks, and trade-offs – and the right choice will depend on unique needs, goals and financial priorities.
When making this decision, it’s important to consider, among other factors, your client’s need for flexibility, legacy planning, long-term sustainability (longevity and certainty) and protection against inflation.
Let’s explore each option in detail.
Life annuity: A guaranteed income for life
A life annuity offers the security of a guaranteed monthly income for the rest of your life. It’s a ‘set-and-forget’ solution, where the insurer takes on the longevity risk, meaning you cannot outlive your income. This makes it an attractive choice for those who value certainty and financial stability.
Benefits:
• Guaranteed income for life, unaffected by market fluctuations
Protection against inflation if an income escalation option is selected
Backed by long-term bonds, offering attractive rates in the current high-yield environment
• Additional features such as:
“A life annuity offers the security of a guaranteed monthly income for the rest of your life”
• Joint-life coverage (continuing income to a spouse)
• Guaranteed payment periods.
Limitations:
No flexibility – once the annuity is set up, it cannot be changed
• No capital payout at death (however, if a guaranteed term or second life is selected, income can continue to loved ones, and a lump sum is available if optional life cover is chosen)
Only offers inflation protection if an annual income escalation was selected at inception; if not, your purchasing power may decline over time.
With current South African bond yields at historically high levels, a life annuity can offer particularly attractive income rates today.
Living annuity: Flexibility and control
A living annuity provides retirees with greater control over their investments and income. You choose how your funds are invested and how much income you draw each year (within regulatory limits). It also allows you to leave any remaining capital to your beneficiaries.
Benefits:
Income flexibility – adjust your income annually based on your needs
• Investment choice – select and switch between underlying funds as needed
• Legacy planning – remaining capital is passed on to beneficiaries after death
• Potential for capital growth through market exposure.
Limitations:
• Income is not guaranteed for life – you bear the risk of outliving your savings
• Income is affected by market performance and inflation
Requires active management and ongoing financial advice
• Risk of capital erosion if drawdowns are too high or underlying investments underperform.
A living annuity generally suits those who are financially savvy, willing to accept market risk, and value the ability to leave a financial legacy.
A combination approach: Best of both worlds
Blending a life annuity with a living annuity offers a powerful solution that balances certainty and flexibility.
This strategy ensures:
• Stable, guaranteed income from the life annuity component
Adjustable income and potential capital growth from the living annuity component
• Protection against longevity risk, as the guaranteed income continues for life
• Legacy opportunities, with any remaining funds in the living annuity passing to your beneficiaries
Options to protect loved ones through jointlife coverage or guaranteed income payment terms.
Choosing the right strategy
There is no one-size-fits-all answer when it comes to retirement income planning. Each option – life annuity, living annuity, or a combination – offers distinct advantages, depending on your personal circumstances. That’s why it’s crucial to work with a reputable financial adviser who can help build a strategy that balances:
• Income certainty
• Investment flexibility
Longevity protection
Legacy planning.
Living annuity drawdown rate average drops below 6%
Living annuity policyholders withdrew, on average, 5.6% of their invested capital as income in 2024 – the lowest average drawdown rate recorded since the Association for Savings and Investment South Africa (ASISA) started collating living annuity statistics.
In terms of the ASISA Standard on Living Annuities, which came into effect in 2010, member companies are encouraged to provide a living annuity status report to ASISA at the end of each year. Statistics were collected for the first time in 2012 for the 2011 reporting period.
The ASISA living annuity statistics for 2024 show a one percentage point drop in the average drawdown rate from 6.6% in 2023 to 5.6% in 2024. A living annuity is a compulsory purchase annuity that does not guarantee a regular income. Instead, living annuity policyholders must select an income drawdown of between 2.5% and 17.5% of the value of their living annuity assets. This can be reviewed once a year on the policy’s anniversary date.
Jaco van Tonder, deputy chair of the ASISA Marketing and Distribution Board Committee, says the strong investment performance recorded in 2024 resulted in a healthy growth of the living annuity asset pool. While this contributed to a drop in the average income drawdown levels, calculated by taking the total value of drawdowns against the total value of the living annuity book, the growth in assets also encouraged policyholders to adjust their income drawdown to lower levels.
The living annuity asset pool grew to R781.7bn by the end of December 2024, compared to R682.2bn at the end of 2023; an increase of 14.6%. The number of living annuities increased from 535 509 at the end of 2023 to 554 043 as of 31 December 2024.
“The strong investment performance recorded in 2024 resulted in a healthy growth of the living annuity asset pool”
Van Tonder says it would be prudent for living annuity investors to resist increasing their drawdown rates on the next policy anniversary date, thereby locking in some of the investment gains from last year and this year. The FTSE/JSE All Share Index (ALSI) delivered a return of 13.4% over the 12 months to 31 December 2024. Over the 12 months to the end of June 2025, the ALSI delivered a return of 25.2%.
He explains that to prevent the erosion of invested capital over time, the percentage of income drawn should not exceed the real returns of the investment portfolio supporting the living annuity. Three key factors determine whether a living annuity will be able to produce a regular income for
the life of an annuitant:
• The level of income selected
• Performance of selected investments
• The lifespan of the annuitant.
According to Van Tonder, annual drawdown rates of 4% to 5% in the first decade of retirement, and below 8% in the later retirement years, are generally considered prudent, providing annuitants with a high probability of preserving their purchasing power for their lifetime.
He says it is encouraging that 36.4% of assets (R284.4bn) held in living annuities at the end of 2024 fell into the 2.5% to 5% income band, followed by 23.0% (R179.9bn) in the 5% to 7.5% income band.
A five-year overview of South Africa’s living annuity book
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Making estate planning simple and affordable
By Sandy Welch Editor, MoneyMarketing
In South Africa, 70% of people die without a valid will, 90% have not budgeted for the cost of winding up their estate, and over half of estates face cash shortfalls. The result? Families left battling legal delays, financial strain and unnecessary stress at a time when they should be focused on grieving. Steve Piper, Head of Underwritten Intermediary Sales at Hollard Life Solutions, believes the root of the problem is simple: a lack of awareness.
“We have and continue to educate people about car insurance, life cover and investments, but not about the importance of estate planning and the financial impact of dying,” he says. “It’s expensive to die and very few people realise just how much.”
Here’s what can quickly eat into what is left behind:
• Executor’s fees – up to 3.5% (plus VAT) of the estate value
Conveyancing fees – to transfer property to heirs
• Taxes – estate duty, capital gains tax and income tax on final returns
• Legal costs – drafting and lodging documents, correspondence and court fees Debt settlement – any outstanding loans, credit cards or mortgages must be paid first.
These costs are deducted before beneficiaries receive anything. Planning for them in advance ensures loved ones aren’t left with a financial shortfall.
Piper has seen first-hand how poorly planned estates can drain value from what’s left behind. “I hear horror stories where the execution of an estate takes up most of the money,” he says. Even worse, around half the population dies intestate – without a will. That’s a recipe for costly delays, legal disputes and in many cases, lost benefits.
“We’ve created a solution that’s foolproof, supportive and designed to make both clients’ and advisers’ lives easier”
“People die and nobody knows they even have a policy,” Piper notes. “Billions of rands sit unclaimed because there wasn’t a will with a named beneficiary.”
The new digital will solution
While traditional will-writing has often been a slow, paper-heavy process tied closely to executor fees, Hollard Life is taking a different approach – one that blends convenience, legal robustness and ongoing support for clients and advisers. Hollard’s new offering, Hollard Estate Solutions, is fully digital and free to clients.
As Piper puts it: “We’ve created a solution that’s foolproof, supportive and designed to make both clients’ and advisers’ lives easier. And in a market where wills are often seen as a chore, that’s a real game-changer.” Using a fully digital process with date stamps, audit trails and electronic signatures, the Fintech platform allows clients and advisers to complete wills quickly and securely. Once signed, Hollard even arranges safe couriering of the original document to wherever it needs to be stored – for example at an adviser’s office or the client’s home safe – at no extra cost.
For advisers, the benefits go beyond client goodwill. Hollard’s built-in risk calculator handles complex estate planning calculations instantly – factoring in tax implications, estate size and liabilities –saving advisers hours of manual work and ensuring clients get an accurate, actionable picture of their financial future.
The only additional fee is a minimal onceoff if the will is updated in the future – a cost designed to keep the process sustainable while discouraging unnecessary frequent changes. Beyond convenience, Hollard has built in proactive service triggers. “Our system notifies the adviser a year after the will is created,” says Piper. “It’s a reminder to check in – have they had another child, changed jobs, got divorced, inherited money? A will should reflect life changes.”
The process is adviser-led, and advisers can capture client details face-to-face via an
online portal, or send them a secure link to complete at their convenience. Contracted Hollard financial advisers access the tool via the Hollard LifeZone portal and can create a will for any client, new or existing. And because the latest signed will legally overrides all previous versions, it doesn’t matter what arrangements the client had in place before –this one becomes the valid document.
For added peace of mind, Hollard has outsourced the legal drafting and estate administration to a specialist firm with over 40 years’ experience. “When that day comes, the estate will be wrapped up by experts,” says Piper. “We’re not suddenly trying to evolve into fiduciary specialists – we leave that to the professionals.”
Importantly, there’s no requirement to purchase additional products. “If this service helps us grow adviser relationships and market share, it’s worth offering wills as a value add to our advisor base.”
Launched just over a month ago, the platform has already seen favourable responses from advisers and policyholders.
Adviser benefits and flexibility
An additional point to note is that Hollard allows advisers to share a reasonable portion of the executor fees if the client has a Hollard Life policy and appoints them as part executor; this may be an existing Hollard policy or a new Hollard policy. Even if the client’s life policy is with another insurer, advisers can still share in up to a quarter of the executor fees. And crucially, there’s no requirement to place a life policy with Hollard to use the free will service.
Piper believes this model – transparent, adviser-friendly and digitally streamlined – will help tackle the education and execution gap around estate planning. It’s not reinventing the wheel, he insists, it’s just making the process simpler, more accessible and more likely to happen before it’s too late. And in a country where dying without a plan can cost heirs a sizable portion of what’s rightfully theirs, that’s a change worth making.
Sarah Love, CFP®
FPSA® TEP
Fiduciary
Practitioner at Private Client Trust
Professional guidance is the linchpin to safeguarding legacies
Awill is one of the most important documents you will ever sign. It is the blueprint for how your assets, responsibilities and wishes are carried out after your death. Yet, too often people view it as a quick formality – something that can be done cheaply or hurriedly, without much thought. The truth is, a poorly drafted will can cause confusion, legal disputes, delays in accessing funds, and even unintentionally disinherit the very people you want to protect.
Small oversights, such as not considering blended family structures, failing to provide for minors, or overlooking existing trusts can have far-reaching consequences. In many cases, it is not ill intent that causes harm, but rather incomplete information, vague wording, or the absence of professional guidance.
The following scenarios illustrate how different approaches to drafting a will can lead to drastically different outcomes and why involving a fiduciary practitioner can mean the difference between a smooth transition of wealth and a painful, costly process for those left behind.
Meet John and Mary. They are married out of community of property without accrual, with three children, Betty, Sue and Michael. Mary is a homemaker, while John is the breadwinner and manages the family’s finances. Tragically, both pass away in a car accident.
Scenario 1: The DIY Will Believing a will is ‘simple enough’, John and Mary decide to save on costs and use AI to draft one: “I bequeath my estate to my wife and, failing her, to my children.”
What they didn’t tell AI: Mary was married before, and Betty is not John’s biological nor legally adopted child.
The consequence is that Sue and Michael inherit John’s entire estate. Betty, having no legal claim to John’s assets, is left with nothing. Because John’s children are minors, their inheritance is paid into the Guardian’s Fund, limiting immediate access to muchneeded funds.
Scenario 2: The Partially Guided Will John consults his financial adviser, who helps him complete a will application. The drafting team identifies the minor children and includes a testamentary trust:
“I bequeath my estate to my wife and, failing her, to my children. Should my children be minors at the time of my death, I direct that this benefit be paid over to the Trustees of the Trust created herein…”
This is an improvement – the minor children are provided for, and a guardian is nominated. However, without disclosure of Mary’s previous marriage and Betty’s status, Betty remains unintentionally excluded from inheriting.
“The simplest way to protect your loved ones from the pitfalls of a flawed will is to get professional guidance from the start”
Scenario 3: Comprehensive Succession Planning
John’s wealth manager, understanding the importance of succession and legacy planning, arranges a joint meeting with John, Mary and a fiduciary practitioner. The practitioner begins with fundamental questions: When did you marry? How are you married? How old are your children?
This naturally uncovers that Betty was born before the marriage, prompting deeper exploration: Was Mary previously married? Was Betty formally adopted?
Further investigation reveals an existing family trust. The practitioner reviews the trust deed, compliance status and tax position, determining that the trust – rather than a new testamentary trust – could best serve the beneficiaries. They assess the trust’s investment management, accounting and independent trustee arrangements to ensure the family’s entire wealth strategy is aligned.
The result is that:
All three children are provided for.
The family trust is added as the alternate beneficiary on life policies, securing immediate cashflow for school fees, living expenses, and other needs during the estate administration process.
The wealth manager gains a holistic view of the family’s financial affairs and strengthens ties with the trustees to potentially retain the next generation of clients.
“The simplest way to protect your loved ones from the pitfalls of a flawed will is to get professional guidance from the start,” advises Sarah Love, fiduciary practitioner at Private Client Trust. “When you work with a fiduciary practitioner, they will take the time to understand your family structure, assets and wishes in detail. Be open about previous marriages, blended families, existing trusts and any special provision you want to make. Review your will regularly, especially after major life events, to ensure it still reflects your intentions.”
A will is more than a document; it’s a plan for your family’s future. Investing the time and expertise upfront will ensure your legacy is honoured as you intended.
Private Client Holdings is taking the lead in South Africa when it comes to providing high net worth families with an all-inclusive wealth management solution.
By Mariska Redelinghuys Legal Specialist: Advice, PSG Wealth
The difference between estate planning and legacy planning
Awell-planned legacy is one of the most meaningful gifts a person can leave to their heirs. It is an intentional act to shape the future and ensure that the values, resources and wisdom cultivated throughout a lifetime continue to benefit generations to come. Legacy planning is not limited to financial matters – it is a holistic process that weaves together family, tradition and personal principles.
When it comes to the financial aspect, we frequently use phrases such as ‘leaving a legacy’, ‘intergenerational wealth transfer’ and ‘succession planning’ when referring to the transfer of assets to beneficiaries. This can be done in various ways and at different times –through an estate plan.
Legacy planning delves a level deeper than estate planning
Estate planning refers to growing and protecting assets over a lifetime and encompasses how those assets are managed and transferred after an individual dies. This includes ensuring there is enough liquidity in the estate to settle debts (such as outstanding mortgage loans) and to cover estate expenses (like executor’s fees and estate duty). It also entails planning for the maintenance needs of a surviving partner, spouse or children, as well as the transfer of wealth from one generation to the next.
By Louis van Vuren Outgoing CEO of the Fiduciary Institute of Southern Africa (FISA)
An estate plan should not be static. As circumstances change and assets grow, needs and priorities will also shift. It is therefore imperative that an estate plan caters for changing needs and goals, and that it is regularly reviewed. This ensures that the plan aligns not only with future goals, but also with values and priorities. Legacy planning plays a crucial role in making this possible.
Legacy planning delves a level deeper than estate planning. While estate planning focuses on valuables, legacy planning focuses on values. More than simply the transfer of money and property, legacy planning is about transferring wisdom and priorities, while offering guidance and support to those who follow in our footsteps. This is important in every family, but it is more significant in family businesses, such as farming enterprises and philanthropic endeavours.
Financial
education as children grow
The most valuable legacy our clients can leave future generations is financial education to equip them with the skills to build a foundation for responsible money management. Here are a few guidelines to assist them in conversations with different age groups.
Pre-schoolers
• Identifying needs vs wants: Explain the difference between things children need (for example food and shelter) and things they want (such as toys or treats)
• Saving and spending: Use a piggy bank to
It’s easy to make a will, or is it?
It is not rocket science to draft and sign a legally valid last will and testament. However, to ensure that it is appropriate for your circumstances and practically executable after your death is not so easy.
Judge of appeal Leach remarked in Raubenheimer v Raubenheimer ([2012] ZASCA 97): “It is a never-ending source of amazement that so many people rely on untrained advisers when preparing their wills, one of the most important documents they are ever likely to sign.”
While everyone has an opinion about what you should, and should not, provide for in a will, the last will and testament is not the beginning of the process and is not a grocery item you can pick off a supermarket shelf.
The making of a will is the culmination of a process of estate planning, which in turn is part of the bigger process of financial planning. As the hackneyed expression goes: “If you fail to plan, you plan to fail.” Financial planning, and specifically estate planning, is also not only for the wealthy. It is something that every person should be doing as soon as they start earning their own money. And nobody should attempt to make a will before going through this process.
Another hackneyed expression states: “You don’t know what you don’t know.” It is very easy to underestimate how complex the affairs,
demonstrate the concept of saving money for a future purchase, like a toy or a trip.
Young children and pre-teens
• Setting savings goals: Help children set simple savings goals, such as saving for a birthday gift or a special outing
• Delayed gratification: Explain the concept of waiting for a reward after saving or completing a task.
Teenagers
• Budgeting and financial planning: Introduce more complex budgeting tools and help teens develop a financial plan for their future Saving for the future: Discuss the importance of saving for tertiary education, a car or other long-term goals
• Understanding debt: Explain the basics of interest, credit cards and the consequences of borrowing money
• Basic investing: Introduce the concept of investing and the power of compound interest
Young adults
• Financial responsibility: Emphasise the importance of financial responsibility, including managing debt, saving for retirement, and making informed financial decisions
• Earning money: Explain that money is earned and that financial decisions are crucial to build a secure future
Budgeting and money management: Demonstrate how to budget, save and invest in a way that supports financial goals.
and the estate and financial planning of the average person can become. Matters like your debts, your income, your expenses, your property (yes, even a ramshackle car), your relationships and previous relationships, children and other dependants, and plans for the future are all matters that can, and most likely will, complicate the administration of your affairs after your death.
There are, at least, 20 different pieces of legislation that can have an impact on the average person’s estate planning and will. Trying to do this is like trying to walk blindfolded into an unknown room at night.
It is best to get professional help from someone who has a fundamentally sound understanding of not only the legal side of things, but also the estate planning side.
The School of Financial Planning Law at the University of the Free State and FISA cooperated more than a decade ago to introduce the Advanced Diploma in Estate and Trust Administration. This NQF7 academic qualification covers the legal and regulatory environment, estate planning, will drafting, deceased estate administration, trust administration, and beneficiary funds. It is the only tertiary qualification in South Africa that covers the full spectrum of fiduciary services.
Members of FISA who complete this course successfully may then apply to be awarded the designation Fiduciary Practitioner of South Africa (FPSA®) by the FISA Council. Membership of FISA and this designation says two things about the holder of the designation – the person has gone through a process to assess fitness to be placed in a position of trust, and the person has proven technical knowledge and experience in the fiduciary field.
ADVANCE YOUR CAREER AND APPLY NOW
for the only programme endorsed by the Fiduciary Institute of Southern Africa (FISA) as a relevant qualification to be awarded the FPSA® designation and it is the only qualification that is currently accepted by FISA as examination requirement to apply for FPSA® status.
Advanced Diploma in Estate and Trust Administration
Applications close 15 January 2026
Duration: One year
Location: Fully distance learning
NQF Level: 7
Enrol now and gain the necessary knowledge and skill to provide advice on a multitude of platforms including administration of trusts, estate planning, administration of deceased estates, drafting of wills and legislative issues surrounding the fiduciary services industry
FATF reforms are catching foreign trustees off guard
By Dawid Oosthuizen Associate, AJM
In February 2023, South Africa was placed on the Financial Action Task Force (FATF) grey list due to deficiencies in its measures to combat money laundering and terrorism financing. Grey listing signals to the global financial community that a country poses a higher compliance risk, often leading to increased scrutiny of its financial and legal systems.
To address FATF’s concerns, the South African Government introduced a series of legislative reforms, particularly targeting company and trust governance. These changes aimed to improve transparency, tighten regulatory oversight, and align the country’s legal framework with international standards.
While much of the attention in the trust industry was focused on the new beneficial ownership reporting obligations for local trusts, another significant change was made that flew under the radar. The amendment to section 8 of the Trust Property Control Act 57 of 1988 (“TPCA”) went almost unnoticed. This amendment, however, has far-reaching implications for foreign trustees.
Before 1 April 2023, section 8 of the TPCA did not require foreign trustees to obtain authorisation before administering trust property situated in South Africa. While such trustees could apply for authorisation, it was not a legal prerequisite. Legal commentary in Honoré’s South African Law of Trusts (6th ed) described the prior wording of section 8 as “permissive” rather than mandatory. The earlier version of section 8 stated: “When a person who was appointed outside the Republic as trustee has to administer or dispose of trust property in the Republic, the provisions of this Act shall apply to such trustee in respect of such trust property and the Master may authorise such trustee under section 6 to act as trustee in respect of that property.”
This position changed when section 8 was amended by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, effective 1 April 2023. The amendment formed part of measures aimed at removing South Africa from the FATF grey list. The amended section 8 now reads: “When a person who was appointed outside the Republic as trustee has to administer or dispose of trust property in the Republic, the provisions of this Act shall apply to such trustee in respect of such trust property and such person shall act in that capacity only if authorised thereto in writing by the Master under section 6.”
No explanatory memorandum accompanied the amendment, and Honoré’s South African Law of Trusts has not yet been updated to reflect the change. However, the purpose of the amendment was described on the Gov. za website as a clarification “that a person who was appointed outside the Republic as trustee must be authorised by the Master to act as trustee”. The use of the term “clarify” has been criticised, as it appears this was not the previous legal position.
The new wording mirrors section 6, which mandates authorisation for trustees. Without such authorisation, trustees cannot legally act (see Simplex (Pty) Ltd V Van der Merwe and Others NNO 1996 (1) SA 111 (W)).
This change will affect foreign trusts that administer or dispose of trust property in South Africa. Foreign trustees must now obtain authorisation before contracting on behalf of such trusts. In the absence of this authorisation, agreements entered into by the foreign trustee may be regarded as void.
This amendment raises a range of further questions and uncertainties, notably whether a foreign trust in such circumstances could be deemed a South African exchange control resident. South Africa’s outdated and uncompetitive exchange control framework has long been underpinned by the unwritten rule that South African trusts may not hold foreign assets. How these rules will apply to foreign trusts holding South African property remains unclear.
By Stacy Rouchos BCom, LLB Managing Director at Bannister Trust and Estate Planning; Consultant at Hobbs Sinclair Advisory
Digital reform at the Master of the High Court still challenging
The Master of the High Court, South Africa’s state authority tasked with overseeing the administration of deceased estates and Trusts, has begun its long-awaited digital transformation. After years of public frustration over slow, manual processes, the Department of Justice launched an online portal in 2023 to modernise estate and Trust registrations.
While widely hailed as a breakthrough, legal practitioners caution that the system’s patchy rollout and lingering inefficiencies mean it is not yet the silver bullet the public had hoped for.
Stacy Rouchos, Managing Director of Bannister Trust and Estate Planning adviser to Hobbs Sinclair Advisory, says the shift to digitisation has laid critical groundwork but it has yet to solve the real-world delays that continue to hinder estate administration in South Africa.
“The digital system makes it easier to access and submit documentation, which is a win,” Rouchos adds. “But in practical terms, we’re still seeing turnaround times for Letters of Executorship stretch to six weeks or more, far beyond the Department’s stated 21-workingday target.”
The Department of Justice had promised a more responsive process, including SMS and email updates, as well as digitised files that Master’s office staff could retrieve more efficiently. The addition of QR codes to newly issued Letters of Authority and Executorship is one of the more visible advances, allowing financial institutions to verify documents instantly and reduce fraud.
“It’s a simple but powerful feature,” says Rouchos. “It’s also the kind of change we need more of – changes that reduce risk, increase transparency, and eliminate unnecessary back-and-forth.”
However, the system currently supports only new deceased estate and inter vivos Trust registrations. Any amendments to existing Trusts, and most matters relating to older estates, still require in-person manual submissions. Public users and legal professionals continue to report system bugs in the portal, unclear instructions, and inconsistent functionality across different provinces.
“In Johannesburg, we’re seeing encouraging traction. But in Cape Town and Pretoria, processes can be significantly slower and less reliable,” Rouchos notes. “The lack of standardisation undermines confidence in what could otherwise be a transformative platform.”
For many families, the delay in estate finalisation is far more than an administrative inconvenience – it has real financial consequences. Reporting indicates that estates in South Africa often take two to five years to wind up, leaving beneficiaries without access to funds during difficult times. This is exacerbated by further bottlenecks at institutions like SARS, where post-death tax clearance certificates can take three months or longer to be issued.
Despite these challenges, Rouchos believes the intent behind the reforms is sound and hopes that the digital infrastructure will evolve with better project management, more comprehensive staff training, and full national implementation.
“There’s no question this system has potential. But potential alone isn’t enough,” she says. “It must deliver in practice – across all provinces, all file types, and all users.”
As South Africa’s digital transformation continues, legal experts urge families and executors to remain vigilant, ensure original documentation is lodged timeously, and keep realistic expectations about how quickly estates can be resolved.”
By Olefile Moea Executive Director, Fairheads Benefit Services
Cost-efficient umbrella trusts for the middle market
Trusts play a major role in the estate planning and financial planning environment. Among their advantages are estate pegging, continuity and succession, and the protection of assets. They are able to receive lump sums and pay out a regular income. Trusts are especially well suited to caring for the wellbeing of minor or disabled beneficiaries. Stand-alone trusts have, however, traditionally been beyond the reach of the middle market as they are often unnecessarily expensive and a burden to administer.
An alternative is to make use of an umbrella trust. As the name implies, this is a legal arrangement under which sub-trusts are set up, allowing economies of scale and other benefits for the beneficiaries. As it is an umbrella arrangement, a new deed does not need to be registered for each sub-trust. This means that the trust is available to receive money immediately, which is very useful given the backlog of trust deed registration at the Master’s Office.
An umbrella trust, founded by a reputable provider, has a professional and experienced board of trustees in place to oversee the best use of the benefits. In best practice, investments are handled at arms length by best-of-breed asset managers, with the board of trustees working together with an investment consultant. The umbrella vehicle is particularly advantageous for professionals entrusted with setting up a stand-alone trust as they can be
By Louis van Vuren CEO of the Fiduciary Institute of Southern Africa (FISA)
absolved of the administrative burden, as well as the need to arrange or manage investment of the trust assets. For advisers’ clients, it can be an excellent cost-effective solution.
Sources of funds
An umbrella trust can receive money from sources other than employment-related benefits and may or may not be taxed depending on the source of the income. Sources of income include:
• Deceased estates
• Inter vivos trusts
Testamentary bequests
Road Accident Fund (RAF)
Medical malpractice payments
• Life insurance payments
• Disability policies
Retirement funds
Private trusts
Discretionary savings for education or any other purpose.
In conclusion, while a stand-alone trust can be tailored to meet very specific objectives, the settlor (the founder of the trust) must understand the costs associated with those objectives and weigh up whether it is truly worth it. If not, an umbrella trust is a seriously good solution that advisers should be aware of.
Important clarity provided by Constitutional Court on majority decisions by trustees
The Constitutional Court clarified the situation in trusts where trustees cannot reach agreement about a decision regarding the affairs of the trust. This judgement prevents a minority of trustees to hold the majority and the trust to ransom in a trust where provision is made for majority decisions.
The matter arose when a husband and wife, TV and RV, were getting divorced. Both and W were trustees of the P Trust (the trust). As RV was a beneficiary of the trust, she requested that the trust sign surety for her legal costs with S&W Attorneys (S&W) during the divorce. A trustee meeting was scheduled by RV and W, and TV was duly informed of the date, time and place. TV responded that the date does not suit him and that the place was too far from where he was then residing. RV and W then notified TV that the meeting will be held much closer to his place of residence, as well as a new date and time to accommodate him.
On the day of the meeting, TV did not attend. RV and W approved the signing of the deed of surety by the trust in favour of S&W, and resolved to oppose the liquidation of two
companies, the shares of which were held by the trust, without the presence or assistance of TV. When RV could not pay the legal fees, S&W relied on the deed of surety. The trustees of the trust at that stage refused to pay and notified S&W that the surety was void as there was no unanimous decision by the trustees. S&W then took legal action to enforce the surety.
“The trust deed does make provision for majority decisions by trustees at a meeting”
The KwaZulu-Natal High Court (Pietermaritzburg) decided in favour of the trustees that, while the decision to oppose the liquidation was clearly to the benefit of the trust, the signing of the surety was invalid as all trustees did not agree to do so. This despite the trust deed making provision for majority decisions.
S&W appealed to the Supreme Court of Appeal (SCA), which dismissed the appeal by a majority judgement and held that trustees could internally take decisions by way of a majority vote if provided for in the trust deed,
but that internal arrangement did not operate in the public sphere unless all the trustees (including dissenting ones) mandated those trustees signing on behalf of the trust.
In an appeal to the Constitutional Court, S&W argued that the trust deed does make provision for majority decisions by trustees at a meeting and that the meeting held had the authority to take the decision to sign the surety.
In a unanimous judgement, delivered by acting judge Tolmay on 1 August 2025, in the case of Shepstone and Wylie Attorneys v De Witt N.O. and Others ([2025] ZACC 14) the Constitutional Court overturned the SCA judgement and upheld the appeal with costs. While trustees must act jointly and take unanimous decisions as a general rule, a trust deed can validly make provision for majority decisions. The court held that the SCA viewed two different situations as one and the same, i.e. where trustees at a quorate meeting take a majority decision as provided for in the trust’s deed, and where a round-robin resolution is circulated outside the meeting. In the latter case, the trust deed requires that all trustees have to sign the resolution. The court therefore held that the SCA clearly erred in their interpretation of the trust deed and trust law.
Investing offshore: Dependent on great expectations?
By Rob Perrone Senior Investment Specialist at Orbis, Allan Gray’s offshore investment partner
Given the stellar rise in the S&P 500 in the past decade, it is understandable that many investors still hold high expectations for US stocks. But shifting gear to low expectations – and truly diversifying your portfolio – is a better strategy for investors seeking to earn offshore returns at a time of heightened geopolitical risk.
For years, US stocks have been the darling of the investment community, thanks to the impressive performance of tech giants like Microsoft, Nvidia and Apple, and boosted by high hopes of the benefits of generative artificial intelligence (AI).
Over the past 15 years, the US stock market has come to dominate global passive portfolios, with its weight in the MSCI World Index rising from below 50% to nearly 75%.
The rise in US shares has been driven by exceptional returns. Since 2010, the S&P 500 has returned 13.8% per annum (pa), much higher than markets elsewhere, exceptionally high versus its own history and inflation, and a near-record result against bonds and cash.
But it is unlikely that such a success story is sustainable over the long term, especially given the massive sell-off that was triggered by news of US President Donald Trump’s tariff hikes on 2 April, followed by a relief rally as fears of a global trade war eased.
What’s behind the rise in US stocks?
To understand why US shares have done so well over the past 15 years, it is important to analyse the fundamentals. Equity returns come from just three sources: fundamental growth, changes in valuation, and dividends.
In terms of sales growth, American companies grew sales by 5.1% per year from 2010 to 2025, and dividends contributed 1.9% per year to returns.
While one can’t quarrel with sales growth or dividends, which are pretty stable, almost half of the S&P 500’s return came from expanding profit margins and rising
valuations. Those are both cyclical, they’re both currently near record highs, and they can’t go up forever.
Regarding valuation, there has been a sharp rise in the price-earnings ratio for shares listed on the S&P 500. In 2010, the S&P traded at 15 times trailing earnings. Valuations have since got much more expensive and the US market now trades at 24 times earnings. That added 3.4% pa to returns. For valuations to provide the same boost to returns over the next 15 years, the S&P would have to trade at 40 times earnings, which doesn’t look realistic to us.
“Although the US still offers value, it doesn’t hold a monopoly on high-quality businesses”
Better value elsewhere
Given that the phenomenal rise in American stock markets is unlikely to continue indefinitely and that the US dollar is currently overvalued, it makes sense for investors to truly diversify portfolios. When expectations are high, so is risk. Fortunately, low expectations are easier to find pretty much everywhere else. Outside the US, stocks are cheaper across various geographies, sectors, and by company size. Many fund managers are looking to markets like Japan, which is experiencing strong corporate reforms and robust earnings growth, while a weaker yen is boosting exports. Tariff volatility has left some babies thrown out with the bathwater. If you look at a company like Mitsubishi Estate, it rents Tokyo office space for Tokyo office workers. This business has nothing to fear from tariffs, yet its shares were down sharply in March and April.
But what if they fall to 20-year-average levels? If margins and valuations fall, the numbers suggest a 3.1% pa long-term return for the S&P – less than the yield on US Treasury bonds. Said another way, the broad US stock market is dependent on great expectations. Great expectations are already in the price, so to expect a great return, investors need to believe that reality will prove even more amazing than markets already expect.
This underscores the opportunities available for investors willing to embrace a greater degree of diversification. Although the US still offers value, it doesn’t hold a monopoly on high-quality businesses. Achieving true diversification isn’t about owning absolutely everything and hedging all your bets. Where assets are attractively valued, you want that exposure, and where they’re not, you don’t. Today, we see much more value in markets outside the US.
By Danni Dixon Chief Marketing Officer at Peregrine Capital
Peregrine Capital celebrates the 100x mark in partnership with The Rugby Centurions
Reaching 100 is a defining milestone that resonates universally, whether in sport, life, or investment. It’s a mark of dedication, excellence, and lasting impact, making it the perfect representation of success. Whether it’s achieving 100 international rugby test caps, living 100 years, or delivering 100fold returns in investments, these milestones embody an unwavering commitment to performance – the perfect synergy for an exciting new partnership.
“Getting from 1 to 100 takes a lot – long-term focus, passion, consistency, tenacity, and a smart approach,” announced Jacques Conradie at their recent launch in Sandton of their latest partnership with the Rugby Centurions Foundation.
As the only hedge fund manager in South Africa to have ever returned 100 times its initial investment to investors via its flagship High Growth and Pure Hedge funds, Peregrine Capital knows what it takes to achieve 100 times*.
Since its inception on 1 February 2000, Peregrine Capital’s flagship High Growth Fund, which invests in the fund manager’s best investment ideas across the equity market and other asset classes while assuming moderate to high levels of risk, has delivered a remarkable 22.94% return (SA MA High Equity: 10.65% | FTSE/ JSE Capped SWIX: 12.56%, as of July 31, 2025). That means R1m invested at the fund’s inception would be worth more than R190m today*.
In 2020, following two decades of marketbeating performances, the High Growth Fund became the first hedge fund in South African history to achieve a 100x (10,000%) net return for investors*.
“Our investment philosophy offers downside protection, with less reliance on market performance than standard unit trust funds, along with uncorrelated returns that provide diversification benefits in investment
*100X refers to the Peregrine Capital High Growth QI Hedge Fund. R1m invested in the High Growth Fund at inception, is worth more than R100m today. The FTSE/JSE Capped SWIX generated R20,42 million while the SA Multi Asset - High Equity Category generated R13,21 million. (High Growth Fund annualised return: 22.94% | SA Multi Asset - High Equity Category annualised return: 10.65% | FTSE/JSE Capped SWIX annualised return: 12.56%, all since inception (February 2000)).
**100X also refers to the Peregrine Capital Pure Hedge QI Hedge Fund. R1m invested in the Pure Hedge Fund at inception, is worth more than R100m today. The CPI generated R4,20 million while the SA Multi Asset - Low Equity Category generated R12,66 million. (Pure Hedge Fund annualised return: 18.74% | SA Multi Asset - Low Equity Category annualised return: 9.83% | CPI: 5.45%), all since inception (July 1998)). Fund performance: Returns are quoted net of fees Fund performance provided as at 31 July 2025 Fee class status: Class: A, distributing Performance fee: 20% subject to High Water Mark Peregrine Capital Proprietary Limited (“Peregrine Capital”) is an authorised financial services provider and is the investment manager of the Peregrine Capital High Growth QI Hedge Fund (“High Growth Fund”) and the Peregrine Capital Pure Hedge QI Hedge Fund (“Pure Hedge Fund”). Peregrine Capital Collective Investments (RF) Proprietary Limited, is an approved manager of collective investment schemes in terms of the Collective Investment Schemes Control Act, 2002. These portfolios are approved
portfolios,” explains Peregrine Capital Chief Executive Officer and Portfolio Manager, Jacques Conradie.
The Peregrine Pure Hedge Fund has since joined this incredibly exclusive club, becoming the second fund in South Africa to pass the 100 times barrier, delivering a 104x return since inception. Impressively, the Pure Hedge Fund has never had a negative year since its inception in July 1998**.
In sport, the number 100 is woven into the fabric of achievement, with 100 international rugby test caps the quintessential measure of skill, consistency and longevity. Few athletes reach this milestone as it demands a decade or more of playing at the highest level while withstanding injury, form slumps, and selection pressure.
“Whether in sport or finance, a century signals something extraordinary, which is why we are incredibly proud and excited to announce a new partnership between Peregrine Capital and The Rugby Centurions Foundation,” continues Conradie.
The foundation is a non-profit organisation that honours elite players who have reached 100 international test caps or more for their country. The partnership will not only celebrate their achievements but also contribute to a legacy by raising funds that the Rugby Centurions support, such as the Chris Burger Petro Jackson Players’ Fund, which ensures support for seriously injured rugby players.
“Much like the Centurions, who represent the pinnacle of athletic achievement with 100+ international test caps, Peregrine Capital’s flagship funds have surpassed the
100x milestone in investment returns, creating a powerful bond between these two extraordinary journeys,” adds Conradie. “This partnership reflects our shared belief in investing in performance and playing the long game.”
John Smit commented, “The number 100 represents a clear threshold and very few do achieve it. It implies resilience, focus, professionalism, consistency, passion, discipline, and determination. These qualities are the bedrock that forms the foundation for a rugby player’s journey to reach 100 international test caps. We saw these shared values reflected in Peregrine Capital, too, which is why this partnership made sense to us.”
Conradie says the commonality of these qualities was exactly why Peregrine Capital jumped at the opportunity. “Reaching 100 is a milestone that defines careers, creates legends, and commands respect. It’s not just a sign of success, it represents significance,” concludes Conradie.
Through this partnership, Peregrine Capital will bring the Centurions’ legacy into the spotlight with exclusive events, marketing campaigns, and content that highlight the core values of endurance, performance, and determination. These very qualities define both legendary athletes and superior investors on the journey of what it takes to go from 1 to 100.
peregrine.co.za. Investment performance calculations are available for verification upon request by
A
of
and
on request from the manager. The rate of return is calculated on a total return basis, and the following elements may involve a reduction of the investor’s
interest
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economic outlook, inflation, deflation, economic and political shocks or changes in economic policy. Annualisation is the conversion of a rate of any length of time into a rate that is reflected on an annual basis. Past performance is not indicative of future performance. The High Growth Fund is a medium to high-risk investment. The Pure Hedge Fund is a low to medium risk investment. The value of participatory interests or the investment may go down as well as up. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. The Portfolios may use derivatives, gearing and short selling, these techniques can increase volatility and the risk of loss.. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The manager has a right to close the portfolio to new investors in order to manage it more efficiently in accordance with its mandate. Comparator indices/peer groups are for illustration only; they are not directly investable and do not reflect fund fees or trading costs.
By Richard Oldfield Group CEO of Schroders
AThe old ‘active vs passive’ debate is dead – here’s why
s investors grasp the dangers of market concentration and turn increasingly to specialist investment vehicles and private markets, it’s time we acknowledge that active investment management is about far more than stock selection.
Where is the familiar scepticism toward active management? Weren’t active investment strategies, especially in liquid markets like the US, supposed to be facing extinction?
That was only a few years ago, but the debate has moved on by leagues. The binary poles of active and passive are less relevant by the day.
“Investors now want to build resilience into portfolios”
For one, there has been an explosion in recent years of passive funds that do not track broad indices: they focus instead on themes, styles, regions or other sub-categories. They may be passive, but the process of using them as building blocks within a portfolio is distinctly active.
Other factors are also driving a re-appraisal of the stereotyped active v passive standoff. For instance, market volatility of recent months has brought home the concentration risk bound up in broad indices, whether these are global or US. Almost three quarters of the MSCI World Index is made up of US companies and just ten stocks, primarily tech, comprise half of that.
To be fair, passive participation in the journey to that concentration has worked well for investors. Since 2010, the S&P500 has produced annual returns of almost 14%. As the dollar strengthened and US equities cemented their dominance, they significantly outperformed other world markets. But the dangers were brought home sharply in April’s sell-off triggered by Trump’s ‘Liberation Day’ tariffs. Complacency rapidly evaporated.
A more deliberate approach
What we’re seeing among investors now is a more deliberate approach, and a need for strategy. In Schroders’ latest Global Investor Insights Survey – conducted among 995 professional investors from around the world representing $67tn in assets – 80% of respondents say they are more likely to use actively-managed
strategies in the next 12 months. The survey was undertaken in April-May.
Investors now want to build resilience into portfolios, and they’re looking to do it by diversifying across geographies, styles and asset classes. Many are reducing dollar exposure. This is a noteworthy reversal: the previous reflex at times of uncertainty was to view the dollar and US assets as safe havens. Capital is now shifting to Europe, Asia, or emerging markets.
It’s also about style. Confronted with the pitfalls of an index, investors want an approach that is anticipatory or contrarian. For much of the past two decades, macro factors (low interest rates, abundant liquidity, US exceptionalism) have lifted all assets. With a backdrop of increased volatility, micro factors (individual companies’ earning resilience, for example) are now coming to the fore. The need to look ahead is more pressing. What lies around the corner? One solution could be a value approach, where underpriced holdings offer a safety margin; others could be thematic, anchored on an industry or trend.
The use of assets is evolving
Aside from today’s yoyo of US policymaking, there are underlying global problems that will long outlive Trump’s presidency. One is ballooning sovereign debt. This is a major cause of fixed income market uncertainty: yields will be higher, but there will be higher structural volatility.
So where investors seek income, bonds may be the answer – or one part of it.
Another eye-catching outcome of the Global Investor Insight Survey was that private debt and credit alternatives are soaring in popularity. They are now the most attractive assets for investors wanting income.
If a future income solution is one that offers both public and private debt together, the traditional debate between active and passive fades to irrelevance. The same goes for public and private equity.
New technologies will bring the focus back to investors’
needs
Distributed ledger tech, AI and cheaper computing are propelling us towards investment solutions that will be more sophisticated – more investor-specific – than the familiar fund structures of today. Private investors will have tailored portfolios geared around personal goals and dates. Pension funds will have sustainability preferences embedded in portfolio construction. The simplistic poles of passive vs active – far less relevant than the main aim of solving the investor’s problem – don’t belong in this picture. One swallow doesn’t make a summer, and future capital flows will be the proof of my argument. The rise of passive investing has been a theme of the investment industry for the past 25 years, but it’s been a story shaped by the investment industry, not necessarily by what’s best for investors. Now we’re at a turning point.
By Delano Abdoll
Legal Manager: CrossBorder Taxation at Tax Consulting SA; and
SJohn-Paul Fraser
Team Lead: CrossBorder Taxation at Tax Consulting SA
outh Africans who have worked abroad and accumulated foreign retirement funds, or foreign nationals who become South African tax residents, need to urgently be aware that the South African Revenue Service (SARS) now wants taxing rights on their foreign retirement funds. This proposed amendment is set to come into effect on 1 March 2026. Retirement planning is a crucial financial component for South African expatriates and those foreigners looking to South Africa as their retirement paradise.
National Treasury has penned the proposed amendment to remove the tax exemption on foreign retirement funds. This demonstrates that the 2025 National Budget Review announcement on the proposal was not just all talk and that the finance minister has put his money where his mouth is.
Current tax treatment of cross-border retirement funds
Effective from 1 March 2017, section 10(1)(gC)(ii) of the Income Tax Act, No. 58 of 1962 (“the Act”), subject to certain requirements, exempts from normal tax any lump sum, pension or annuity received by or accrued to any South African tax resident from a source outside South Africa as consideration for foreign services rendered in terms of past employment.
As South African tax residents are generally required to declare and pay taxes on their worldwide income, section 10(1)(gC)(ii) of the Act was designed to prevent double taxation on retirement funds already taxed in a foreign country or earned while an individual was not subject to South African tax.
Reasons for change
In terms of the Explanatory Memorandum to the Taxation Laws Amendment Bill, 2025, issued by National Treasury on 16 August 2025, the call for reform stems from the following –
1. “In the 2013 Budget Review, it was noted that: South African residents working abroad and
foreign residents working in South Africa regularly contribute to local and foreign pension funds, giving rise to a variety of tax issues. While certain limited rules have long been in place, these rules are largely ad hoc. With overall retirement reform now in effect, cross-border pension issues need to be fully reconsidered.”
2. “… [T]he 2022 Budget Review stated that: A review of the exemption of foreign retirement benefits in domestic tax legislation will be conducted.”
3. “In the 2024 Budget Review, the Government acknowledged the need to enhance the rules that currently exempt lump sums, pensions, and annuities received by South African residents from foreign retirement funds for past employment outside South Africa, so that these amounts are taxed fairly and consistently.”
The discourse around the retirement tax regime in South Africa, since 2013 to date, is evidence enough that the tax treatment of retirement funds has been a long-standing item by National Treasury and SARS.
Issues with the current exemption rules
The two main issues identified with section 10(1)(gC)(ii) of the Act, as a blanket exemption, are listed as follows:
• Issue 1: Firstly, the exemption may result in double non-taxation, particularly where the foreign jurisdiction does not tax the retirement income
due to domestic law or tax treaty limitations. In these cases, neither South Africa nor the foreign jurisdiction imposes tax on the retirement benefit. This undermines South Africa’s residence-based system of taxation and leads to revenue forgone to the fiscus.
• Issue 2: Secondly, in instances where a DTA grants South Africa the exclusive right to tax such retirement benefits based on residence, South Africa forfeits this right by maintaining the exemption in section 10(1)(gC)(ii) of the Act. As a result, the foreign jurisdiction, despite lacking primary taxing rights under the treaty, may choose to tax the retirement benefits because South Africa does not tax them. This misalignment allows the foreign jurisdiction to benefit from taxing rights that South Africa does not exercise. The South African fiscus ultimately forgoes revenue that it is entitled to collect.
The proposal
In the Explanatory Memorandum to the Taxation Laws Amendment Bill, 2025, National Treasury has proposed that section 10(1)(gC)(ii) of the Act be deleted in its entirety. This is to ensure foreign retirement funds received by South African tax residents are appropriately taxed in line with South Africa’s residence-based system of taxation. The deadline to submit comments on the proposed amendments is 12 September 2025. These must be sent to –
• National Treasury’s tax policy depository at 2025AnnexCProp@treasury.gov.za; and
• SARS at 2025legislationcomments@sars.gov.za
As retirement planning is a key principle of personal financial planning, South African expatriates and foreigners relocating to South Africa should consult qualified tax professionals experienced in cross-border taxation.
With the legislative cycle progressing, it will also be a make-or-break for taxpayers to stay up to date on any changes that will affect their foreign retirement income and plan accordingly on a more urgent basis than they may have liked.
