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WHAT’S INSIDE YOUR SEPTEMBER ISSUE:

Platforms are becoming the backbone of modern advice

PLATFORMS Investment platforms have become the backbone of the adviser value chain, but choosing the right one is increasingly complex. As consolidation reshapes the landscape and fees come under pressure, we examine what advisers should look for and which platforms are raising the bar. Cover story

ESTATE PLANNING AND TRUSTS Estate planning has moved far beyond drafting a will and setting up a trust. With shifting tax regimes, growing wealth complexity and a new generation of clients expecting more, advisers who can navigate the nuances of estate duty, trust structures and beneficiary planning are more valuable than ever. Pg8-17

ACTIVELY MANAGED EXCHANGE TRADED FUNDS The rise of actively managed ETFs is blurring the line between passive and active investing. We explore how AMETFs are gaining traction in South Africa, what they offer over traditional index-tracking products, and whether they represent a genuine shift in how advisers build portfolios. Pg18-20

INVESTING From structured products that offer downside protection to a listed property sector finding its feet again, the investing landscape is giving advisers more tools to work with. We unpack the opportunities and risks.

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Pg21-25

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By Sandy Welch

Editor, MoneyMarketing

or financial advisers, platforms are increasingly becoming the infrastructure through which advice is delivered, investments are managed and clients experience their entire financial lives. That shift is being driven by rising compliance and technology costs, increasingly sophisticated client expectations and a growing demand for simpler, more transparent ways of managing wealth. For advisers, the right platform can remove administrative friction and create more time for what matters most: advice and relationships. For Standard Bank Group, this is at the heart of its investment strategy. The group is bringing together its banking, investment, wealth and platform capabilities to create a more integrated proposition for advisers and their clients. “The true advantage of Standard Bank lies in its extensive relationships with millions of South Africans through our banking services, giving us a deep understanding of their financial needs,” says Duncan Wattam, Head of Standard Bank Investments. Alongside this reach, the group has specialist advisory teams, including: Wealth and Investment, Standard Bank Financial Consultants, Liberty Advisory Partners and Stone House Capital, supported by our investment manufacturing capabilities businesses, including STANLIB, Liberty Investments, Global Markets, 1nvest, Melville Douglas, Stockbroking and INN8 Invest. “The ambition is to connect these capabilities through a single advisory relationship, giving advisers access to a broader range of investment solutions, specialist strategies and discretionary services, through our on- and offshore platforms,” he says. Platforms as the backbone of advice Wattam describes platforms as “the backbone of the investment world”, providing a secure

environment where investments can be held, viewed and managed. For advisers, a well-designed platform can take much of the administrative burden out of managing investments, while for clients, it can replace a fragmented collection of statements, accounts and providers with a consolidated view of their financial position. But building this infrastructure is complex. It requires significant investment in technology, funding and scale, as well as the ability to serve a large client base. Standard Bank believes its scale gives it an advantage. “We are creating local and global platform capabilities where advisers can concentrate on providing advice without worrying about paperwork, while clients enjoy a unified view of all their financial accounts, including banking and investments, in one accessible location,” says Wattam. The scale behind this ambition is significant. Standard Bank’s Investment and Asset Management business manages and advises on R1.8tn in assets and has 50 years of investment management experience. Simplifying a complicated investment journey The growing importance of platforms comes at a time when the financial advice industry itself is undergoing significant change. Wattam identifies a few major shifts. The first is consolidation within the advice industry, as rising compliance and technology costs make it increasingly difficult for smaller firms to manage every aspect of their businesses independently. This is creating demand for partners that can provide infrastructure and technology while allowing advisers to remain focused on their core role. The second is a change in client expectations. Consumers are increasingly less receptive to being sold products and more interested in advice that reflects their individual circumstances. Continued on next page

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SEPTEMBER 2026 // NEWS & OPINION Continued from previous page “Clients no longer want to be sold to; they can see through product pitches,” says Wattam. “Instead, they want someone who truly understands their situation and tailors solutions accordingly.” That places greater emphasis on the adviser-client relationship, but also on the technology supporting it. If platforms can provide advisers with a more complete view of a client’s financial position, they can help deliver advice that is more holistic and relevant. The third shift is technology, including artificial intelligence and direct-toclient investing (D2C). While technology is transforming investment research and enabling professionals to analyse information more efficiently, Wattam believes it should not be a replacement for human expertise. “People still trust people, and consistent advice remains essential,” he says. Direct-to-client (D2C) is also emerging as an important part of the industry’s evolution. Standard Bank is investing in a dedicated D2C capability as part of its broader technology strategy. Wattam says: “We support our clients at every stage of the advice journey, from direct investing through to specialist, tailored guidance designed for the complex needs of ultra-highnet-worth individuals.” One place for the client’s financial life The concept of consolidation extends beyond the traditional investment platform. Standard Bank’s vision is to bring banking and investment services closer together, reflecting the reality that clients’ financial lives do not exist in separate compartments. “But people’s financial lives don’t fit neatly into boxes.”

A client paying off a home loan may simultaneously be saving for children’s education, contributing towards retirement and considering how to transfer wealth to the next generation. The platform opportunity is therefore about more than holding investments. It's about connecting these different aspects of financial planning so that advisers can see the bigger picture. For clients, this could mean a more seamless experience, whether they prefer face-to-face advice or digital interaction. Offshore platforms bring another layer of opportunity Standard Bank is repositioning its investment platforms as integrated ecosystems rather than mere back-end technology. The international offering consolidates banking, endowments, portfolio management, and fiduciary services for South Africans with overseas assets, bringing reporting and compliance across jurisdictions into one place. For high-networth clients, this matters as circumstances evolve – a child moving overseas, for instance, can have knock-on effects for estate planning, wills, tax structures, and investments, and having everything on one platform makes it easier to adapt strategy as life changes.

“For advisers, the right platform can remove administrative friction and create more time for what matters most: advice and relationships” The platform as an enabler, not the advice Standard Bank sees the future resting on three pillars: relationship-driven human advice, a competitive investment proposition, and a strong digital experience across both direct-to-consumer and adviser channels. While South Africa has sophisticated investment markets and an established advice community, the bank believes there is still room to draw more people into formal investing, with platforms evolving from adviser tools into shared infrastructure connecting advisers, clients (including D2C), and the broader investment ecosystem. Duncan Wattam, Head of Standard Bank Investments

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NEWS & OPINION // SEPTEMBER 2026

ED'S LETTER

hile the financial advice landscape is constantly changing, the fundamentals of good advice remain remarkably consistent: helping clients make informed decisions, protect what they have built and plan with confidence for the future. The recent PROpulsion Connect event was a great example of the industry coming together to explore some of the opportunities and challenges facing advisers. The event was a tremendous success, with valuable insights and practical discussions around the future of advice. In this issue, we bring you some articles based on the PROpulsion Connect, including practical advice and ideas that advisers can apply in their own practices. We also turn our attention to the often-overlooked foundations of effective financial planning. Wills and legacy planning ensure that clients’ wishes, values and financial legacies are protected and transferred in the way they intend. For advisers, this is an important opportunity to have conversations that go beyond investments and returns. AMETFs are another area worth exploring as advisers help clients make the most of the opportunities available to them. Understanding how these vehicles fit into broader savings and investment strategies can help advisers add real value to their clients. And, of course, no discussion about the future of advice can ignore compliance. The recent Masthead masterclass highlighted just how important it is for advisers to stay ahead of regulatory developments and ensure that good governance becomes part of everyday practice. Stay financially savvy,

Sandy Welch

Editor, MoneyMarketing

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Ninety One launches Emerging Markets Equity Feeder Fund

inety One has launched the Ninety One Emerging Markets Equity Feeder Fund, a South African-domiciled unit trust that offers local investors access to an actively managed, style-agnostic EM equity strategy with a rare 15-year track record and US$15.8bn in assets under management. “There is growing recognition that the conditions that favoured US equities for much of the past decade are shifting. But emerging markets (EM) have also changed fundamentally: today's EM is a more mature, less volatile asset class than the one that put many investors off a decade ago,” says Siobhan Simpson, Head of SA Retail at Ninety One. “For South African investors looking to diversify and participate in that rotation, domestic equity exposure tells only part of the emerging markets story. The local market is heavily concentrated in banks and resources, which together account for more than half the JSE All Share Index. A dedicated emerging markets allocation opens up access to structural growth themes simply not available locally, from semiconductor manufacturing in Asia to fast-growing digital platforms and expanding middle-class consumption across Asia and Latin America. This Fund offers a compelling and well-proven way to access all of that," she adds. The Fund, co-managed by Archie Hart and Varun Laijawalla, invests in a portfolio of 70 to 90 stocks drawn from a universe of around 1 300 emerging market ideas. Hart and Laijawalla are part of Ninety One's broader 4Factor team, which brings more than 20 years' experience investing across emerging and developed equities and manages US$88.5bn in AUM. The fund is a feeder into the Ninety One Emerging Markets Equity Fund, the underlying vehicle managed to the Ninety One Emerging Markets Equity Strategy. The Strategy's composite has delivered annualised returns of 8.3% a year (gross of fees) since inception in April 2010, against 5.6% a year for its benchmark, the MSCI Emerging Markets NDR, to 31 July 2026.1 A compelling entry point for emerging markets Despite its scale, EM remains structurally underrepresented in global portfolios: the region is home to 86% of the world's population and 61% of global GDP, yet accounts for just 9% of global equity allocation.2 Emerging market (EM) equities returned 34% in 2025, outperforming both the S&P 500 (17%) and the MSCI ACWI (22%), their first year of outperformance since 2020. Ninety One

believes the conditions underpinning this shift are structural rather than cyclical. The US dollar has historically had an inverse relationship with EM equity returns. Dollar cycles have typically lasted around 17 years from peak to trough to peak, but the current cycle is already more than 20 years old – well beyond its usual length. Over the past 25 years, in the 10 years the dollar weakened, EM equities outperformed developed markets in nine of them, by an average of around 31%, and last year followed that pattern closely, with the dollar down around 8%. At the same time, EM corporate earnings are recovering strongly: consensus forecasts point to around 50% earnings growth this year and 23% next year, against 24% and 14% for the MSCI ACWI. On valuations, EM equities trade close to a one-standard-deviation discount to their own 10-year average and sit in roughly the ninth percentile of cheapness relative to US equities over the past 35 years, a starting point that has historically preceded an average fiveyear outperformance of around 50 percentage points versus US equities.3

“The case for emerging markets is as compelling as it has been in years” Says Hart, Co-Portfolio Manager, "The case for emerging markets is as compelling as it has been in years. We have a potential dollar tailwind, accelerating earnings growth, and valuations that are pricing in very little of that recovery. “However, the opportunity in EM is never uniform. It requires genuine stock-level insight and an active approach to navigate. Our investment process is built precisely for this: combining fundamental research with quantitative tools to identify mispriced businesses across a universe where market inefficiencies, high retail participation, and uneven data quality are persistent features, not temporary ones." Laijawalla, Co-Portfolio Manager, adds: "Fifteen years of dollar strength and underwhelming earnings made this a hard asset class to hold. Both of those conditions are now shifting. Balance sheets across EM are stronger, capital discipline has improved markedly, particularly in China, and valuations still don't reflect much of that change. This isn't simply a call on a weaker dollar; it's a broader improvement in the quality of earnings on offer."

Source: Ninety One, 31 July 2026. Performance shown is for the Ninety One Emerging Markets Equity Strategy composite, gross of fees (returns will be reduced by management fees and other expenses incurred), income reinvested, in USD. Benchmark: MSCI Emerging Markets NDR. Strategy inception: 1 April 2010. Past performance does not predict future returns; losses may be made. The Feeder Fund itself has no performance track record prior to launch. 2 Source: Ninety One Emerging Markets Equity Spotlight, August 2026. Population and GDP based on PPP breakdowns are from the IMF as at June 2025. Equity allocation is based on active and passive allocations tracked by Broadridge as at Q4 2025. 3 https://ninetyone.com/en/south-africa/insights/gic-2026-what-a-difficult-fifteen-years-may-have-been-hiding 1

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Disclaimer: All information, representations and opinions provided are of a general nature and provided for information purposes only. For full disclaimer visit www.ninetyone.com

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SEPTEMBER 2026 // NEWS & OPINION

PROFILE

Raihan Allie

Portfolio Manager at Truffle Asset Management

aihan Allie, Portfolio Manager at Truffle Asset Management, believes successful investing is built on curiosity, humility and a willingness to keep asking questions. In this Q&A with MoneyMarketing, he reflects on the lessons learned from early investment mistakes, the importance of simplicity in portfolio management, and the trends shaping markets today. What drew you into the finance industry, and more specifically into asset management? Honestly, my love of finance started early. On my very first day of school, I sold my lunch, just so I’d have the cash to buy sweets from the tuckshop. It sounds silly, but looking back, it was an early lesson in valuing what you have versus what you want and being willing to trade one for the other. Money isn't the end-goal; it's leverage to choose the things important to you. What’s kept me in asset management, though, is what I get to do every day. I get to turn over every stone looking for opportunities that can generate good outcomes for clients. No two companies, sectors, or cycles are ever quite the same, which means the puzzle never repeats itself. There’s a real intellectual challenge in that. Constantly searching and piecing together of information that others might have missed - it’s what makes this job genuinely satisfying, rather than just a career. Can you walk us through your first significant investment success and what made it meaningful? It’s genuinely a story of success and failure in the same breath. It happened long before I had any professional title, while I was still at university. Like a lot of people my age, I got drawn into Forex trading through those online ads promising quick riches. My very first trade was hugely profitable but pure beginner’s luck, in hindsight. Within 24 hours, I’d given it all back, if not faster, trading on margin. Some of the best lessons in investing come from burning your hands early, before real capital and other people’s money are on the line, and this was exactly that. It taught me the difference between luck and skill, the danger of overconfidence, and just how quickly leverage can turn a good outcome into a bad one. I’ve carried these lessons into every professional decision that followed.

What are the most important lessons your career has taught you? A few stand out. First, keep investments simple. If you can’t explain your thesis clearly, you probably don’t understand it well enough yourself. Second, don’t be dogmatic. Markets punish rigid thinking, and being willing to update your view when the facts change is a strength, not a weakness. And third, never try to be the smartest person in the room. The best investors I know are the ones most willing to listen, ask questions, and admit what they don’t know. Knowing what you don’t know is as important as knowing what you do. Truffle has built a strong reputation around responsible investing. Why does this matter so much in the current environment? Responsible investing isn’t a side consideration for us. It’s embedded in how we assess risk and value. ESG factors are increasingly financially material: governance failures, environmental liabilities, and social risks can all show up directly in a company’s valuation and long-term sustainability. As an owner-managed business where our team invests alongside our clients, we’re naturally aligned with a long-term view, and

that makes responsible investing a natural extension of how we think, not a bolt-on. In today’s environment, with tightening regulation, more demanding clients, and greater scrutiny of corporate behaviour, asset managers who don’t take this seriously are simply carrying risks they haven’t priced in. What investment trends and macroeconomic factors are you watching most closely right now? Two things are front of mind (and probably generic). The first is AI capex and, specifically, the risk that we’re now late in that cycle, running on fumes of enthusiasm rather than fundamentals. The capex has been enormous, but if the profits don’t follow at a similar scale, the market may well be over-estimating the exuberance, and that disconnect is exactly the kind of setup that precedes a correction. The second is the trajectory of global bond yields with yields rising in many major economies. This has the implications for equity valuations, debt servicing costs, and capital flows. Both are, in a sense, the same question asked two ways: is the market pricing in more confidence than the underlying data can support? They also impact each other, as the rising bond yields are likely impacted by the enormous issuance applying pressure on debt markets. Which books on finance or investing have had the greatest impact on you, and what makes them worth reading? Fooled by Randomness by Nassim Nicholas Taleb, without question. It fundamentally changed how I think about the line between luck and skill. It’s a humbling book. It reminds you that a good outcome doesn’t necessarily validate a good decision, and that overconfidence is often just randomness in disguise. I try to keep that lesson close with every investment call I make, understanding that you can, at times, be right for the wrong reason, and vice versa.

“Responsible investing isn’t a side consideration for us. It’s embedded in how we assess risk and value.”

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ADVICE FOR ADVISERS // SEPTEMBER 2026

From artificial intelligence to adviser intelligence

Moving beyond the answer One way of understanding this evolution is to consider the different roles a financial planner plays: • The first is the expert. This is the traditional foundation of financial advice: having the technical knowledge to answer clients’ questions and provide appropriate solutions. Professional qualifications, ongoing training and CPD all support this role. • The second is the coach. Coaching is about helping clients understand themselves, their behaviours and their relationship with money. It involves asking good questions, listening Bennie Gouws

carefully and helping clients make better decisions. In South Africa, practitioners have spent years developing and systematising these approaches, demonstrating that the value of advice extends well beyond technical expertise. Neither role is disappearing. Instead, both are likely to become increasingly supported – and in some cases delivered – by technology. As AI becomes better at producing answers and automating processes, much of the expert function could become more self-service. Coaching, too, can be supported by digital tools and increasingly sophisticated technology. This creates an opportunity for advisers to move further up the value curve. The adviser as guide The third role is that of the guide. Financial planners are already familiar with this role. It becomes particularly important when clients are facing difficult decisions, competing priorities or significant complexity. The adviser does not simply provide an answer; they help the client navigate uncertainty and arrive at a decision that makes sense in the context of their life. The distinction is subtle but important. An expert can tell a client what the numbers say. A coach can help the client understand their behaviour and preferences. A guide helps them navigate the implications of a decision and move forward with confidence. The future is not about choosing one role over another. Advisers will continue to need all three. However, as technology takes over more of the work involved in producing answers, the guide is likely to become an increasingly important part of the adviser-client relationship. And that has implications for how advice practices operate. If advisers are going to spend more time guiding clients through complexity, they need to develop the skills, processes and tools to do so consistently and effectively. Just as technical advice and coaching have been systematised, the value of guidance needs to be made repeatable and scalable. Making value visible Perhaps the biggest challenge is evidencing this value. The first two stages of advice tend to produce something tangible: an answer, a recommendation, or a financial plan. These can be documented and presented to the client. But how do you demonstrate the value of helping someone make a difficult decision? How do you show that the conversation, challenge, reassurance or perspective provided by an adviser made a meaningful difference?

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“The opportunity for financial advisers is not to compete with AI on its own terms” This will become increasingly important as AI makes traditional advice functions more accessible. Advisers will need to think deliberately about how they capture and communicate the value of the guidance they provide. It is not enough for clients to experience it; they need to be able to recognise it. That means the future of advice is ultimately the future of client engagement. The rise of adviser intelligence There are two forms of intelligence that will shape this future. The first is artificial intelligence – the technology that can process information, identify patterns, automate tasks and increasingly deliver sophisticated financial answers. The second is adviser intelligence – the accumulated knowledge, judgement, experience, questioning, context and relationship skills that enable an adviser to help a client navigate the decisions that matter most. The opportunity for financial advisers is not to compete with AI on its own terms. It is to use AI to amplify adviser intelligence. Technology can free advisers from some of the administrative and analytical work that consumes valuable time. That time can then be redirected towards deeper conversations, more meaningful guidance, and stronger client relationships. The goal is therefore not simply to become more efficient. It is to become more valuable. For years, the industry has talked about assets under advice and funds under management. Increasingly, the more important measure may be relationship capital: the trust, confidence and value that advisers build with their clients over time. AI may transform how advice is delivered. But the advisers who thrive will be those who use it not merely to automate what they already do, but to amplify what clients cannot get from a machine alone: context, judgement and guidance when it matters most.

Image: Getty Images

s artificial intelligence (AI) and automation become increasingly embedded in financial advice, the industry’s response has often been to emphasise the importance of being ‘more human’. But that misses the bigger question: what does being human add to the value proposition? Speaking at the recent PROpulsion Connect event, Bennie Gouws, Director of Adviser Experience at Asset-Map, unpacked this further. Being human, in itself, is not a value proposition. The more important question for financial planners is how they can continue to add meaningful value as technology takes on more of the traditional functions of advice. This shift is already influencing how advice practices invest in technology. US research highlighted by Michael Kitces recently suggests that advisers are spending more on fintech designed to improve the client experience and add value than on technology focused purely on improving efficiency. That points to an important evolution in advice. If technology can increasingly deliver efficiency, calculations and answers, advisers need to consider where their distinctive value lies – and how to make that value visible to clients.

SEPTEMBER 2026 // ADVICE FOR ADVISERS

The question most advice firms cannot answer

t a recent Owner’s Founder and Director, Table session PROpulsion we hosted in the PROpulsion Community, I asked a group of practice and business owners one question. What could a prospective client say about your firm that they could not say about the firm down the road? We spent most of the next hour talking about independence. And I understand why. Independence used to be the thing that set you apart. You were tied or you were independent, and that was the entire story. The discussion was a good one, but I realised something while listening. When someone asks us what makes us different, we answer with the category we belong to. However, hundreds of other firms are part of that same category, so it cannot be the thing that sets you apart. In addition to this, the FAIS General Code of Conduct already defines when a provider may describe itself as independent. It is a regulated claim before it is a marketing message. Clients are also getting easier access to products every year, so a position built on product access gets weaker every year. If independence is your whole story and proposition, your future is in the hands of the product providers.

By Francois du Toit

The job and the business Most of what I heard that afternoon, and most of what I hear when I speak to owners, describes the job: I meet clients. I build relationships. I give advice they can trust. All of this is true, and every good adviser says the same thing. When I asked what makes the firm different, the truthful answer from almost everyone was

“me”. The adviser is the difference. For a oneadviser practice this is true – right up to the day you want to step back, sell, or hand over to a successor. If the business is built entirely around you, the relationships cannot transfer, and then the value cannot transfer either. The business retires with you. This is the change in thinking I tried to convey in the session, and I want to convey it here as well. Stop thinking about how you do your job and start thinking about what you are building into the business, so that clients choose the business, describe the business, and recommend the business, even if you are the only adviser. How most firms position themselves today If you open 10 advice firm websites, I am willing to bet that you will read the same page 10 times: We are independent. We offer holistic financial planning. We put clients first. Then a list of services. Retirement planning, estate planning, investment planning, risk planning. It is all the truth, but none of it helps a prospective client choose, because the firm down the road says exactly the same thing. When everyone sounds the same, you end up competing on price and personality, and that is a hard way to run a business. What a better position looks like A better position answers four questions in words a client can repeat to a friend. Who do you help? When do they come to you, in other words what has just happened in their life? What changes for them once you have done your work? And what proof do you have? “We offer holistic financial planning” gives the client nothing to work with. “We help business owners who are three to seven years

from selling their business to get their business value, personal wealth and succession working as one plan, using our Exit Readiness Review” tells the client who you help, when, what changes and how. A happy client can repeat that sentence at the next braai without you there. The proof is what you can show, such as client stories, a documented process, or a service calendar the client sees from the start. This is important for growth as well. According to Dimensional’s Global Advisor Study, referrals bring in roughly half of all new clients. Yet Dimensional’s investor research shows that only about one in five clients referred anyone in the past year. Clients cannot refer what they cannot describe. And according to Kitces research reported by Financial Advisor Magazine, advisers who are known for a speciality have clients with roughly a quarter more investable assets and charge slightly higher fees. I believe two fears keep owners from doing this. The first fear is turning work away. A more focused position is a marketing decision. It has nothing to do with who you accept as a client. You keep taking the work. You just stop trying to talk to everyone at once. The second fear is starting from a blank page. You do not have to. The position is usually already in your client base, in a group of clients you serve unusually well without even realising it. Start here Write your one sentence this week. Who, when, what changes, and what proof. Say it to five existing clients and watch their responses. If they lean in, you have found something. If they nod politely, keep working on it. Stay curious!

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WILLS, ESTATE PLANNING & TRUSTS // SEPTEMBER 2026

AI can help draft an estate plan. But can it understand the family behind it?

More than a document An estate planning discussion is often reduced to a simple question: “Do you have a will?” Yet, as many advisers already know, that is only the starting point. The real value lies in drawing out the context technology cannot see on its own. A will gives effect to choices about beneficiaries, executors, minor children and competing family interests. It may also need to account for a surviving spouse, children from a previous relationship, stepchildren, informal dependants, a family business, offshore assets or sentimental items. The risk, therefore, is not only that a client has no will. It is that the will they have no longer reflects their family, assets, obligations or intentions. Where AI helps AI can explain basic concepts, help clients prepare and provide a starting framework. Used well, it can improve awareness and reduce the friction that prevents clients from engaging with wills and estates. But it can only work with the information it receives, and clients may not know what is legally, financially or emotionally relevant until someone asks the right question. What AI may miss A client may ask for a simple will leaving everything to a spouse, without mentioning children from a previous relationship. Another may regard a stepchild as their own, while the legal position may not automatically reflect that emotional reality. A sibling may seem like the obvious executor until family tension is considered. A business owner may want

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“The concern is often what the client did not know to disclose, test or think through” simplicity, but the estate may not have the liquidity to give effect to their wishes. These are conversation issues, not merely drafting issues. The concern is often what the client did not know to disclose, test or think through. It is also why language matters. A will is only meaningful if the client understands the choices being made and the consequences that follow. Old Mutual Will’s ability to let users download their completed will in English, isiZulu, isiXhosa, Afrikaans or Sepedi, with non-English versions presented side-by-side with English, is more than a convenience. It helps clients engage with serious decisions in a language that feels familiar and personal.

a deeper understanding of the client’s context: connecting the will to the client’s wider financial position, including estate liquidity, beneficiary nominations, trusts, insurance, tax and business interests, and identifying where specialist input is needed. Estate planning should therefore form part of the ongoing advice relationship, with major changes in the client’s family, assets or business prompting a review. For advisers this means asking the questions a generic tool may never know to ask: What has changed since this will was signed? Who depends on you but is not mentioned? Is there enough liquidity? Is the chosen executor still the right one? Does the will reflect your current relationships and responsibilities?

The right conversation Many advisers already understand that the better question is not only “Do you have a will?” but “Does your will still reflect your life?” A will signed before a second marriage, a child, a divorce, a business sale or a permanently changed relationship may no longer serve the client’s needs. The conversation may also reveal a hidden dependant, an unsuitable executor, a liquidity problem or a beneficiary who may be surprised by the client’s wishes.

Technology can draft. Advice must understand AI will keep improving, making estate-planning information easier to access and documents faster to produce. But the real test is whether the will and the wider plan reflect the family, responsibilities, assets and intentions they are meant to protect. That is where advisers still matter. Clients do not simply need another document; they need help understanding what it must achieve and how it connects to their family, legacy and the people they leave behind. The future of estate planning will not belong to whoever drafts the fastest will. It will belong to whoever asks the question that prevents the will from failing the family.

From documents to context If AI makes basic information and drafting more accessible, advisers do not need to compete on speed. Their value lies in gaining

Disclaimer: This article is provided for general information only and does not constitute financial, legal or tax advice. Its content does not take account of any person’s specific circumstances, objectives, or needs. Readers should consult an appropriately qualified financial adviser or other relevant professional before making any financial or estate-planning decision.

Image: Getty Images

client can now ask an AI tool what should be Senior Legal Adviser, included in an estate Old Mutual Personal plan, what happens if Finance they die without a will, or how to think about beneficiaries, executors and guardians. In seconds, they may receive an explanation, checklist or basic draft. It can make estate planning feel more accessible for clients who have avoided the conversation because it seemed complicated or uncomfortable. That is helpful, but it can also create a dangerous impression that estate planning is mainly about producing a document rather than understanding the family, responsibilities and intentions behind it. A will is only one part of an estate plan, yet it is often where a client’s most important choices become visible. Without the right conversation, even a neat document may fail the family when it matters most.

By Eugene Mpikwane

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WILLS, ESTATE PLANNING & TRUSTS // SEPTEMBER 2026

Why high-net-worth families must review wealth guardrails

A shift in legal precedent and accrual Recent South African court developments indicate a move toward ensuring the accrual system is applied more rigorously and fairly, with a particular focus on uncovering assets that may have been moved into a trust during the divorce trial to reduce the accrual in the estate. The courts have held that assets need to be included accurately in the accrual calculation.

“The courts and attorneys will now have to make sure that the accrual system really is applied fairly and that assets can be recovered from trusts when applicable,” says Smit. She further cautions that “interim relief measures, such as Rule 43, which allows a spouse to apply for temporary maintenance, child-related relief or a contribution towards legal costs while divorce proceedings are ongoing, can set maintenance expectations that are difficult to manage and therefore, these measures need to be managed with great care.” Establishing guardrails such as the antenuptial contract For families looking to protect generational wealth, the planning must begin before the “I do”. Smit emphasises that a well-structured Antenuptial Contract (ANC) is the most effective way to ensure fairness regarding assets brought into a union. Accrual can then be included or excluded dependent on circumstances. “The best start to a marriage is actually to agree to have open communication around finances from the beginning,” says Smit. She highlights that “for families with established wealth, it is crucial to formally write clauses into the ANC that ring-fence and exclude inheritances from future accrual claims. Under South African law, inheritances are automatically protected and kept separate from your spouse, but the exact mechanism depends on the terms of the ANC you choose – whether with or without accrual – and you can lose protection under certain circumstances. It is advisable to discuss how inheritances will be dealt with in your ANC with your attorney.” The role played by family trusts and professional trusteeship Smit says, “The efficacy of a family trust as a wealth preservation tool often depends on its initial design and the quality of its oversight. Many affluent individuals overlook the

necessity of a well-structured trust deed that can evolve with changing legislation.” “Trust deeds need to be set up properly from the start,” Smit explains. She advocates for “strong, independent professional trustees who are aware of family dynamics, legislative changes and can tweak guardrails if needed”. She further notes that “it is often necessary to ‘restrict trust assets to the bloodline’ through careful beneficiary designation and succession planning”. Simplifying the complexity Smit says one of the most common oversights among affluent families is allowing their financial structures to become overly fragmented and opaque. She has observed that “there is often complexity going on which needs to be untangled as well as simplified, and in doing so, unlock efficiencies”. She believes that simplification is empowering and reduces the immense emotional stress for families. “People tend to think that complexity is a good thing, but when you create more elegant, manageable solutions, you are truly adding value, transparency and fairness to everyone’s lives.” Smit concludes with the following advice: “Firstly, you need open communication on the financial aspects of life within the family. Secondly, you need strong professional advisors who can provide objectivity and who are on the absolute top of their game when it comes to legislation, tax, investment management and advice.” Image: Getty Images

outh Africa’s (SA’s) legal landscape is undergoing a significant shift as it drafts laws to financially protect spouses and By Kirsten Smit streamline marriage Advisory Partner laws. For high-netat Citadel worth (HNW) and ultra-high-net-worth (UHNW) individuals and families, these reforms are a timely reminder that wealth planning is not a static exercise, but one that requires proactive adaptation. The changing legal environment comes at a time when divorce is also becoming more prevalent. According to Statistics South Africa’s Marriages and Divorces report published in March 2026, 24 202 divorces were granted in South Africa in 2024, an increase of 8.9% from 22 230 in 2023. The crude divorce rate also rose to 39 divorces per 100 000 people, reinforcing the importance of ensuring that family wealth structures are designed to withstand significant changes in personal circumstances. “As divorce and family laws evolve, affluent families need to prioritise the protection of their wealth by putting guardrails in place in terms of their assets. It’s not taking anything away from the marriage, it’s about cultivating open communication from the very beginning and understanding that every marriage will end in an exit one day, regardless of whether it is by death or divorce,” says Citadel Advisory Partner, Kirsten Smit.

DISCLAIMER: Citadel Investment Services Proprietary Limited is licensed as a financial services provider in terms of the Financial Advisory and Intermediary Services Act, 2002. Kindly note that this article does not constitute financial advice. All information and opinions provided are of a general nature and are not intended to address the circumstances of any individual.

The FPI recognises the quality of the content of MoneyMarketing’s September 2026 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 10 // www.moneymarketing.co.za

Image: Getty Images

EARN YOUR CPD POINTS

SEPTEMBER 2026 // WILLS, ESTATE PLANNING & TRUSTS

By Jan du Plessis CEO of FISA

Why a will matters – and why planning is vital

Image: Getty Images

istorically, National Wills Week was arranged by the Law Society of South Africa (LSSA) to address the high number of South Africans dying without a valid will. In recent years, the Department of Justice and Constitutional Development has taken the lead, working with the LSSA and calling on legal practitioners to provide free assistance with the drafting of wills during Wills Week, which will take place from 14 to 18 September 2026. The standard approach remains the drafting of a basic will at no charge. The Fiduciary Institute of Southern Africa (FISA) welcomes this initiative. It is essential that every person has a will, and a basic will is certainly better than dying intestate. For this reason, FISA members are encouraged to participate voluntarily in National Wills Week, on the same basis historically adopted by the LSSA – assisting with the drafting of a basic will free of charge. At the same time, FISA is of the opinion that proper planning should ideally take place before a will is drafted. Members of the public who wish to take the responsible step of obtaining detailed estate-planning advice before drafting a will can make an appointment with a FISA member, but a consultation fee will then be payable. If you need detailed estate planning, the free Wills Week is not for you. Proper planning requires deep technical knowledge, as it involves not only legal considerations but also tax and financial planning for the testator and their family. People tend to forget that a will is probably the most important document they will ever draft and sign – the purpose of this document is, after all, to determine how care will be taken of your loved ones after your death. We devote decades to creating and protecting our wealth, but often neglect the simple step of planning how it should be passed on to the people who matter most.

be structured for succession, and estates can be delayed for years due to liquidity shortfalls; or, even worse, your will can end up in court, and legal professionals will decide what the intention of an ill-drafted will was. Your family’s wellbeing should be your first priority. A proper estate plan and a valid will ensure that your affairs are in order and that your loved ones are assisted quickly and efficiently after your death. Planning is not only for the wealthy – every family benefits from clarity, structure and foresight. It is equally important to appoint a trusted fiduciary practitioner as executor of your estate and trustee of any testamentary trust created in your will. What to consider in estate planning Several factors should be considered in your estate plan. You need to ensure sufficient liquidity to cover creditors’ claims, administration costs and taxes triggered by death, such as capital gains tax and estate duty. Basic life cover is often advisable to address these obligations. You also need to consider guardianship of minor children and how their financial needs will be met. If a testamentary trust is not created for minor beneficiaries, their inheritances will be paid into the Guardian’s Fund, administered by the Master of the High Court. Although the Fund pays a competitive interest rate, accessing allowances is a cumbersome process. Given the workload of the Master’s Office, payments are often made quarterly or even six-monthly, causing unnecessary stress for guardians.

Your estate plan should also consider elderly parents or siblings who rely on your financial support In addition to having a basic estate plan and a valid will, it is essential to update your will regularly. At the very least, your will should be updated after marriage, the birth of a child, and especially after a divorce. It should also be reviewed after retirement or in the event of retrenchment. You can keep your will at home, but it is often safer to have it stored in a safe with the fiduciary practitioner that draws up your will. However, it is very important to inform your family where to find your will after your death. Lastly, it is important to note that the proceeds of retirement fund benefits do not form part of your estate, and you cannot dispose of these benefits in your will. These funds are regulated by section 37C of the Pension Funds Act, 24 of 1956, and the trustees of the fund determine how benefits are allocated among dependants. It is advisable to nominate beneficiaries, although trustees are not compelled to follow your nomination if it does not reflect all your dependants.

“You need to ensure sufficient liquidity to cover creditors’ claims, administration costs and taxes triggered by death”

Various scenarios can play out Unfortunately, we do not live in a perfect world, which means that our family structures are also not perfect. Second marriages and cohabitation relationships are the order of the day. It is therefore even more important to plan for various scenarios: your death, simultaneous death of spouses/life partners, and even a total family wipeout. Without a proper estate plan, the impact on surviving family members will be significant. If you die intestate, your estate will devolve according to predetermined rules that may not reflect your wishes or benefit your loved ones. Without planning, estate assets may need to be sold, business interests may not

www.moneymarketing.co.za // 11

WILLS, ESTATE PLANNING & TRUSTS // SEPTEMBER 2026 Gerrie van der Merwe

By Kobus Wentzel

Executive Head of Sales and Distribution, 1Life

Know your limits in estate planning

peaking at the recent PROpulsion Connection, Gerrie van der Merwe, Head of Department at Milpark Education, explained the importance of turning to experts when it comes to areas such as wills and trusts. Estate planning and fiduciary services remain highly specialised areas of financial advice. They require not only the appropriate qualifications, but also the time, expertise and resources to deliver meaningful value to clients. There is a reason why these areas are so heavily regulated. The decisions made in estate planning can have far-reaching consequences for families and beneficiaries, often long after the client is gone. Advisers who choose to operate in this space should therefore take a careful and honest look at whether they have the necessary skills and capacity to do so effectively. One area that deserves particular attention is the drafting and administration of wills. Despite the maturity of the legal framework, wills continue to be the subject of court disputes and litigation. A will is a specialised legal document, and mistakes or ambiguities can create significant complications for beneficiaries. Whether the service is being provided by a financial adviser, trust company or attorney, clients need advice that is accurate, reliable and legally sound. Trusts present an even greater level of complexity. While they can be highly effective estate-planning tools when structured correctly, they are built on a foundation of fiduciary responsibility and require a deep understanding of trust law, governance and administration. The regulatory environment surrounding trusts continues to evolve, placing even greater emphasis on the responsibilities of trustees and the quality of advice provided. For advisers, the key question is not simply whether a trust can be recommended, but whether they have access to the expertise required to support clients throughout the life of the trust. In many cases, partnering with specialists who work in this field every day may be the most prudent approach. Capacity is another important consideration. Estate planning and fiduciary work are not transactional services. They require ongoing engagement, administration and oversight. Advisers should carefully assess whether they have the operational capability to provide the level of service these structures demand over the long term. Ultimately, there is no single right approach. Every advice practice is different, and every adviser must decide which services best align with their expertise and business model. The important point is to recognise the complexity involved and avoid venturing into areas where there may be gaps in knowledge or experience. As financial advisers increasingly seek to broaden their value proposition, estate planning and fiduciary services can certainly form part of a holistic advice offering. However, they are areas that demand respect, specialist knowledge and a clear understanding of the responsibilities involved. Sometimes the best advice an adviser can give is knowing when to bring in an expert.

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What South Africans should know when drafting a will

rafting a will is one of the most responsible things your clients can do. It ensures assets are distributed according to wishes, protects a family’s financial future, and helps avoid disputes. It’s important that clients understand that without a valid will, an estate is divided under South Africa’s intestate succession laws, first to the spouse, then children, then parents. Let’s explore some of the basic but crucial facts clients must keep in mind when drafting a will. Keep your will regularly updated Wills should evolve with your life. Update it whenever you experience major change such as getting married, divorced, having children, buying property, or losing a loved one. To avoid confusion, clearly state that this is your final will and that it cancels all previous versions. Add a letter of wishes This informal add-on can include bank details, passwords, pet care instructions or personal notes. It is not legally binding, but it is very helpful for your family when they need to close accounts, access your social media platforms, etc. Verbal traditions may also be valid under customary law. Choose the right executor Your will is the first step in estate planning and so stating your executor in your will is essential. The executor ensures debts are paid and your wishes are followed. They can be a trusted attorney, friend, or family member. While they do take a fee of the estate value, it is usually rather small and worth the administration and ensuring the estate is wrapped up properly. While an executor may also be a beneficiary, it is advisable to appoint a co-executor to help avoid conflicts of interest and to promote fair distribution of assets. Choosing the right executor is crucial, it should be someone with

the appropriate expertise and judgment to ensure a smooth process in winding up your estate. Be specific List assets and names of beneficiaries clearly by stating in detail who will inherit that particular asset. For example: “I leave my property at 10th Avenue, [suburb], [province], erf number [X], to my daughter [full name, ID number].” Alternatively use percentages to detail your wishes, such as: “I leave 100% of my estate to my spouse” or “50% to my spouse and 50% to my child”. However, it is important to carefully consider the implications of leaving assets to a spouse versus a child, as this can have consequences. Engaging a qualified professional can help ensure your estate plan aligns with your intentions and is structured in a tax-efficient manner. Sign and initial your will properly for it be valid Your will must be signed in ink by yourself and two witnesses who are not beneficiaries. If a witness is also listed as a beneficiary, their portion may be void. You can do it yourself While expert guidance is often recommended, you can draft your own will provided you follow the legal requirements carefully. However, it is recommended that you do this through a professional person – insurers, banks and independent consultants can all help you in this. Be transparent Tell your family you have a will, where it is kept, and what it says. This avoids confusion and builds trust. A will is the foundation of a solid estate plan. It is not just about assets – it’s about protecting your legacy and the people you love both emotionally and financially.

Shaping Financial Planning Professionals for the World This year marks the 25 anniversary of the UFS School of Financial Planning Law (SFPL). For two and a half decades, we have been the leader in the field, setting academic benchmarks and shaping the careers of thousands of top-tier financial professionals. We take immense pride in our legacy as the oldest and largest school of its kind in the country.

Dani van Vuuren Alumnus, School of Financial Planning Law Business Development Manager, Trident Trust. United Arab Emirates.

T: +27 51 401 2823 | E: SFPL_Appl@ufs.ac.za | www.ufs.ac.za/sfpl

Inspiring excellence, transforming lives through quality, impact, and care.

WILLS, ESTATE PLANNING & TRUSTS // SEPTEMBER 2026

Your car. Your home. Your savings. What does it really mean to own them?

“A Will expresses these decisions of ownership, and getting one is easy and free”

For standard Wills, drafting is free of charge. If you require a bespoke or offshore Will, you’ll be referred to a specialist boutique law firm, where a fee will apply. Discovery Wills and Trust Services, a division of Discovery Central Services (Pty) Limited, a company registered in South Africa with registration number 2016/054628/07 and part of the Discovery group of companies.

14 // www.moneymarketing.co.za

People tend to forget that even the salary that goes into their account monthly is an asset, and should you pass away tomorrow, there needs to be a plan as to what happens to it.

In this episode, the following will be discussed: • Why ownership is about decisions, not just possessions • Why financial responsibility starts earlier than many people realise • The role a valid Will plays in ensuring your wishes are carried out • The realities of being part of the sandwich generation • Why getting a Will is one of the simplest ways to take ownership of your financial future.

A Will is one of the simplest ways to take control of what you’ve built. With Discovery, you can get a free Will drafted to ensure your wishes are carried out. This Wills Month, take a moment to consider whether you’ve made the decisions that true ownership requires. To view the full webinar and gain further insight about this important topic, visit @MoneyMarketingSA.

Image: Getty Images

n recognition of Wills Month, Discovery is exploring a simple but important question: What does it really mean to own something? Many South Africans work hard to build assets, grow their savings and create financial security. But true ownership means taking responsibility for the asset while you’re alive, and choosing what happens to it after you’ve passed away. Many young professionals are part of the sandwich generation, balancing the responsibility of supporting parents while building their own futures and caring for the next generation. As these responsibilities grow and ownership expands, so does the importance of making clear decisions about what you’ve built. A Will expresses these decisions of ownership, and getting one is easy and free. To further educate advisers and clients on the important elements of estate planning, Discovery is hosting a webinar on the MoneyMarketing YouTube channel. Kashmeera Kanji, Head of Distribution Strategy and Market Analytics, and Zinhle Sithole, Testimentory Specialist with Discovery Wills and Trusts Services, discuss the importance of ensuring a Will is firmly in place. “Young professionals go into the workplace, they start acquiring assets and are focused on building their estate, but most people tend to forget that proper estate planning is what’s important,” says Sithole. “It doesn’t matter how big or small your estate may be or the number of assets you have, even if it’s just a car – put in writing what should happen to it. And as you build your assets, remember to build on that Will. Make sure that everybody around you, your dependants, know what should happen.”

GET A WILL Own what’s yours.

A valid Will is one of the most important ﬁnancial documents your clients will ever sign. Yet more than 70%* of South Africans do not have a valid, up-to-date Will.

Discovery Wills and Trust Services offer FREE Will drafting and specialist estate-planning support, and Discovery Life’s Estate Preserver helps cover key fiduciary costs and provides financial support when your clients need it most. For a limited time, qualifying new integrated Estate Preserver policies can earn up to 100% of their first year’s premiums back through the PayBack benefit when they link their Vitality membership to their Discovery Estate Preserver policy.

Help your clients draft a FREE Will and protect their estate with Discovery today!

*Master of the High Court, 2022 For standard Wills, drafting is free of charge. If you require a bespoke or offshore Will, you’ll be referred to a specialist boutique law firm, where a fee will apply Discovery Life Limited. Registration number 1966/003901/06, is a licensed life insurer, an authorised financial services and registered credit provider, NCR Reg No. NCRCP3555. Discovery Wills and Trust Services, a division of Discovery Central Services (Pty) Limited, a company registered in South Africa with registration number 2016/054628/07 and part of the Discovery group of companies.

www.discovery.co.za

@Discovery_SA

discoverysouthafrica

Discovery_SA

youtube/DiscoverySA

WILLS, ESTATE PLANNING & TRUSTS // SEPTEMBER 2026

By Jainal Narsai

Fiduciary Specialist at Alexforbes

How marriage and divorce can affect a will

t’s important for clients to realise how marriage and divorce can change what happens to their money, property and belongings when they die. That’s why it’s important for them to understand how marriage is structured, and to update their wills when personal circumstances change. In South Africa, there are three main ways couples can be married: in community of property, out of community of property with accrual, and out of community of property without accrual. Each option affects an estate differently, so it is useful to know what applies to each situation. Marriage in community of property If your client is married in community of property, they and their spouse share one joint estate. This means assets and debts are combined. If one spouse dies, the surviving spouse is usually entitled to half of the joint estate because of the marriage. Some people think this means they don’t need a will, which is not true. A will still matters because it explains what should happen to half of the joint estate after a death. If there was no antenuptial contract before a customary marriage, the marriage is generally treated as in community of property. Changing this later usually requires a court application and the court must be satisfied that there are good reasons for the change and that creditors will not be unfairly affected.

Divorce and wills When people are going through a divorce, they often focus on the legal process and forget to update their will. This can create serious problems, especially if an ex-spouse is still named as a beneficiary. South African law gives some protection for a short time after divorce. For three months after a divorce is finalised, the law generally treats an ex-spouse as if they died first, if the will had not yet been updated. This means if they pass away in those three months, anything left to the ex-spouse in the will does not go to them. But this protection only lasts for three months. If the will is not updated after that, the ex-spouse may still inherit if they are still named in the will. The safest approach is to update the will as soon as possible after a divorce. Understanding how marriage, divorce and the chosen marital property system affect an estate can help make sure wishes are followed and loved ones are protected.

“When people are going through a divorce, they often focus on the legal process and forget to update their will”

Image: Getty Images

Marriage out of community of property with accrual Many couples marry out of community of property with the accrual system. This means each spouse keeps ownership of their own assets during the marriage, but they share in the growth of their estates when the marriage ends through death or divorce. When one spouse dies, the growth in each spouse’s estate must be worked out before the estate can be shared. In simple terms, this means comparing what each person had at the start of the marriage with what they had at the end. The Supreme Court of Appeal confirmed in Manelis v Manelis that if spouses recorded the starting values of their estates in an antenuptial contract, those values will generally be used in the calculation later. They can usually only be challenged for recognised legal reasons, such as fraud, misrepresentation, pressure or a genuine mistake.

Marriage out of community of property without accrual If spouses marry out of community of property without accrual, their estates stay completely separate. Each person owns their own assets and is responsible for their own finances. This gives both spouses financial independence, but it also means a surviving spouse does not automatically share in the growth of the other spouse’s estate.

16 // www.moneymarketing.co.za

SEPTEMBER 2026 // WILLS, ESTATE PLANNING & TRUSTS

When a testamentary trust becomes essential

hould your heirs have full, Financial Adviser at unrestricted Alexforbes control over your living annuity when you die? Many people assume the biggest risk to their retirement savings is market volatility. In reality, the greater risk often only becomes apparent after death, when beneficiaries are not prepared to manage significant wealth. It is not usually about bad intentions. It is about readiness. It is the son who has never managed a meaningful sum of money. The daughter who is highly capable in her career but struggles with financial discipline. The surviving spouse who suddenly has to make complex financial decisions alone. Or the beneficiary who sees an inheritance as a windfall rather than a responsibility. And what happens to minor children who can’t receive cash? Are the guardians capable of looking after their inheritance in a meaningful way? As financial planners, significant effort goes into helping clients grow and protect their wealth. Far less time is spent considering what happens when that wealth passes into the hands of someone who may not be equipped to manage it effectively. Inheritance is straightforward. Stewardship is not. Most estate plans focus on distribution: who receives what and in what proportions. That matters, but it avoids a more important question. Will your beneficiaries be able to manage what you leave behind? Inheriting money and managing money require very different skills. It is not uncommon for wealth built over decades to be depleted within a few years – not through recklessness, but because the discipline and experience required to manage meaningful capital were never developed.

Image: Getty Images

By Zander Loots

The flaw in ‘equal distribution’ ‘Just leave everything equally to my children’ is a common instruction. The intention is fair. The outcome is not always. Equal inheritance does not lead to equal outcomes. One beneficiary may be financially disciplined, while another may struggle with impulsive spending. A beneficiary may face business pressures or creditor risk. A surviving spouse may experience declining capacity over time. In these cases, a simple division of assets does not account for very different personal circumstances. In one example, a client was concerned about an adult son who had previously depleted two windfalls within a short period. The intention was not to exclude him, but to ensure some level of protection and structure.

The question was not whether he was capable in general, but whether he was ready to manage a large sum without support. Where a testamentary trust becomes powerful A testamentary trust is often misunderstood. It is not only for the wealthy, nor is it primarily a tax strategy. At its core, it is a way to protect beneficiaries. A testamentary trust is established in a will and only comes into effect after death. Instead of assets transferring directly to a beneficiary, trustees manage those assets according to defined terms. Income can be distributed when appropriate, while capital remains protected and is released over time or under specific conditions. This introduces continuity. The safeguards applied during one’s lifetime do not disappear at death. Linking a testamentary trust to a living annuity A testamentary trust can be nominated as the beneficiary of a living annuity. This means retirement capital does not need to be paid out as a lump sum to an individual. Instead, a living annuity is set up by the trust, providing a structured income stream that is managed within the trust. For families with minor children, dependants with special needs, or beneficiaries who may not yet be financially experienced, this structure can provide ongoing stability as the trustees manage the investments. Understanding the tax implications Tax is often the first concern and rightly so. Trusts in South Africa are taxed at a flat rate of 45% for income retained by the trust, with capital gains taxed at an effective rate of 36%. Individuals are taxed on a sliding scale, with lower effective rates in many cases. Where a trust is a beneficiary of a living annuity, there is no upfront tax when the new Living Annuity is set up. The trust becomes the owner of an annuity and remains subject to the same annual drawdown limits as a living annuity, between 2.5% and 17.5%.

Income from the annuity is taxed, either within the trust if the income remains in the trust, or in the hands of beneficiaries at their marginal tax rates if the income is distributed to them within the same tax year. This can result in a more favourable outcome. Trusts that distribute income, for example to minor children, or special trusts established for disabled beneficiaries, may benefit from being taxed on the individual scale rather than at the flat trust rate. Another benefit of using a trust for minor beneficiaries is that the living annuity can pay out any remaining balance in cash when the trust terminates. This normally happens when the beneficiary reaches the age of 18, 21 or 25. This rule is not available in other living annuities, which must run for the client’s lifetime or until the remaining amount falls below the de minimus amount. These technical considerations should be addressed with a qualified financial adviser. Tax considerations alone should not determine whether a trust is appropriate. A testamentary trust is primarily a protection mechanism. If it preserves capital for the intended purpose, that benefit may outweigh the additional tax and management costs. The real question The central question in estate planning is often framed as who should inherit. A more useful question is how that inheritance should be managed over time. Ensuring that beneficiaries receive support, structure and guidance can be as important as the assets themselves. Before confirming beneficiaries on a living annuity, it is worth asking a simple question. If your heirs inherited a significant sum tomorrow, would they manage it in a way that preserves its long-term value? If the answer is uncertain, introducing a level of structure through a testamentary trust may not only be appropriate, it may be essential.

www.moneymarketing.co.za // 17

ACTIVELY MANAGED EXCHANGE TRADED FUNDS (AMETF)// SEPTEMBER 2026

ETFSA Oyster Global AMETF

s Shakespeare put it, 'The world is your oyster.' And for retirees and investors seeking global diversification, ETFSA, on 16 April 2026, listed a 100% offshore investment portfolio on the By Mike Brown JSE: the Oyster Global AMETF (OYSTER). Managing Director, The Oyster strategy is 100% allocated ETFSA to offshore assets utilising ETFs, or index tracking notes (ETNs), issued by leading banks, either purchased directly on foreign markets, or through ‘inward investment’ ETFs listed on the JSE. The Oyster AMETF is classified as in ‘inward investment’ on the JSE, so no foreign exchange restrictions apply to individual, trust, and corporate investors. The Wealth Oyster has the current following strategic asset allocation:

% Return 12,0%

10,7%

10,0% 8,0% 6,0%

7,9%

7,1% 5,8%

5,0% 3,5%

2,0% 0,0%

Cash 6.5%

3 Months

Emerging Market Equities 11.5% Global Developed Market Equities 49%

Global Bonds 13% Precious Metals 10%

Total Returns

4,0%

Wealth Oyster Asset Allocation (% of the portfolio)

Global Thematic 10%

While this is a new portfolio on the JSE, and therefore has no performance history, the Oyster methodology has been available to members of the ETFSA Living Annuity Fund since August 2024. The underlying graph of total investment returns, including the reinvestment of dividends from August 2024 to June 2026, shows that the Oyster portfolio has outperformed its ASISA category peers for the past 12 months or longer periods, but underperformed over a two-year period.

June 2026

Portfolio

ASISA Category Average

Since inception p.a. June 2026

The asset allocation strategy is based on a formulaic allocation to the various asset classes. This will limit portfolio churn and will focus on the longer-term expectation from these asset classes. The tolerance limits allowed to the asset manager enables a degree of shift among the asset classes, if required, by macro-economic events or through secular market changes. The Wealth Oyster portfolio has a strategic asset allocation of 80% growth assets and 20% defensive assets. ETFSA delivers the investment strategy by holding ETFs benchmarking major global indices, including S&P 500, Eurostoxx 600, Nasdaq, MSCI World, ACWI and Bond indices. The portfolio also has an allocation to global themes, currently high-tech and AI. The JSE listing of the Oyster AMETF brings with it not only regulatory oversight and transparency, but also instant liquidity for investors wishing to transact in the listed security. Jane Street, the acknowledged global market leaders, are the liquidity providers for the Oyster portfolio. With global equities having outperformed JSE equity indices in recent times, the Oyster, with its carefully diversified exposure to global asset classes, is a competitive product for retirees and individual investors seeking international investment exposure, with the convenience of a JSE listing. Although the Oyster has not been listed for the requisite 12-month period, after which TERs and other information can be formally reported in its monthly fact sheets, it is anticipated that the total TER will come in at around 50 bps (0.50%) per annum. For more information on the Wealth Oyster AMETF, visit the ETFSA website, www.etfsa.co.za

Image: Supplied

The use of ETFs, listed on the London Stock Exchange (LSE), provides ETFSA as the asset manager, with a larger choice of ETFs than those available on the JSE. Also, by using Irish registered ETFs, there are tax efficiencies which can enhance product efficiency. Finally, the total cost (TERs) associated with many global ETFs can be significantly lower than for similar products, listed on the JSE. By buying and holding Oyster constituent ETFs in London, ETFSA can avoid the day-to-day volatility of the rand/dollar exchange rate, which can make a difference, over time, for longer-term investors. However, for the purposes of maintaining daily liquidity, brought on by the ease of trading on the JSE, ETFSA maintains a fair portion of the Oyster holdings in rands on the JSE, although the underlying assets are globally based. Also, flows into the ETFSA LA Fund or by investors using its electronic Investor Hub, are such that the portfolio always remains open-ended. There is also increasing investment interest in the Oyster by other investors, including institutional and intermediary companies, so the use of locally secured assets enables the daily liquidity requirements to be accommodated. The asset manager also makes use of index tracking notes issued by banks, which provide 100% index tracking results, coupled with low costs. As this is a highly competitive model, the use of notes can improve both tracking performance efficiency, as well as lowering overall costs, which can be crucial in the long run. As the Oyster AMETF is a registered Collective Investment Scheme (CIS), the Board Notice 90 requirement of the CISCA Act means that part of the portfolio (20%) has to be invested directly in securities, and not only in other CIS Funds (i.e. ETFs). The notes enable the Board 90 requirement of the FSCA to be fulfilled.

12 Months

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The World is yours.

The ETFSA Oyster Global Balanced Prescient AMETF gives you up to 100% offshore exposure across leading providers like iShares, Vanguard and State Street SPDR, all in one JSE-listed ETF. No foreign tax clearance. No offshore brokerage. Just diversified global growth, now in your portfolio.

etfsa.co.za ETFSA Portfolio Management Company (Pty) Ltd (FSP 52314) & ETFSA.co.za (FSP 32917) are authorised FSPs.

ACTIVELY MANAGED EXCHANGE TRADED FUNDS (AMETF)// SEPTEMBER 2026

What advisers need to know about Actively Managed ETFs in South Africa Editor, MoneyMarketing

xchange traded funds (ETFs) have become a familiar part of the South African investment landscape, offering investors a relatively simple way to access diversified portfolios through an instrument that trades on the Johannesburg Stock Exchange (JSE) like a share. Traditionally, ETFs have been associated with passive investing, where a fund aims to track an index. A newer category is changing that perception: actively managed exchange traded funds (AMETFs). These combine the accessibility and tradability of an ETF with the investment decisions of an active portfolio manager. The JSE describes an AMETF as a listed investment product providing exposure to a collective investment scheme portfolio that is managed according to an active investment strategy. What makes an AMETF different? The key distinction is what happens inside the portfolio. A traditional index-tracking ETF seeks to replicate the performance of a predetermined index. The manager generally has limited discretion over which securities to hold because the portfolio is designed to follow the index. An AMETF, by contrast, gives a portfolio manager greater flexibility.

The manager can make investment decisions based on factors such as valuations, economic conditions, company fundamentals, interest rates or changing market opportunities. This means an AMETF can potentially adjust its portfolio as circumstances change, rather than simply following an index. For investors, the attraction is the combination of active management and the ETF structure. The product can be bought and sold on the JSE during market hours, while providing access to a professionally managed portfolio. The JSE notes that ETFs are listed, traded and settled in rand, with market makers supporting liquidity. A rapidly expanding market The South African AMETF market has expanded significantly, with new products entering the JSE in 2026. In January, Satrix launched its first AMETF, the Satrix Income AMETF, designed to generate income through active positioning across income-producing securities, including fixed-interest assets, preference shares and other non-equity securities. Since then, the range has broadened considerably. EasyETFs introduced CPI-plus strategies targeting real returns of CPI +3%, CPI +5% and CPI +7%, with different risk profiles and investment horizons. Anchor EasyETFs has added actively managed South African and global equity strategies, while other launches have focused on artificial intelligence, strategic income and global investment opportunities. Most recently, the JSE welcomed the PWM Extra Interest Prescient Feeder AMETF, an income-focused product aimed at generating current income while prioritising capital preservation and liquidity. For advisers, this growing universe means AMETFs can no longer be viewed simply as a niche extension of the ETF market. Why might investors use them? One of the biggest advantages is accessibility. An investor can gain exposure to a diversified, professionally managed portfolio through a single JSE-listed security. They can also offer flexibility. Depending on the mandate, an active manager can change portfolio positioning in response to market conditions. This may be particularly relevant in asset classes such as fixed income, where interest-rate expectations, credit conditions and relative valuations can change the attractiveness of different securities. AMETFs can also provide exposure to specific investment themes. The Ivy EasyETFs AI Innovation AMETF, for example, gives South African investors access to global companies involved in artificial intelligence and related technologies through a single JSE-traded

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security. For financial advisers, the structure may therefore provide another tool for constructing portfolios, particularly where clients want active management but also value the transparency and tradability associated with listed products. What should advisers consider? The ETF structure does not remove investment risk. The value of an AMETF will fluctuate according to the assets held in the portfolio and the investment strategy being followed. The fact that a fund is actively managed also does not guarantee that the manager will outperform a benchmark or passive alternative. Active management introduces the potential for better decisions, but also for decisions that detract from returns.

“These combine the accessibility and tradability of an ETF with the investment decisions of an active portfolio manager”

Advisers should therefore look beyond the product label. Important considerations include the investment mandate, underlying assets, risk profile, fees, liquidity, benchmark or performance objective, track record and the manager’s investment philosophy. It is also worth distinguishing between liquidity of the underlying portfolio and liquidity of the listed security. Although market makers support trading in JSElisted ETFs, investors should still understand how actively a particular product trades. The role in a portfolio AMETFs are unlikely to replace traditional ETFs or actively managed unit trusts. Rather, they broaden the range of structures available to investors and advisers. The growing product universe means advisers can increasingly select between passive index exposure, traditional actively managed funds, and active strategies delivered through a listed ETF structure. The key is to start with the client’s objective rather than the product. An AMETF may be useful where active management, diversification and exchange-traded accessibility align with the client’s needs. As the South African market continues to expand, AMETFs are becoming an increasingly important part of the investment toolkit – giving advisers another way to combine professional portfolio management with the accessibility of the JSE. *Extra research by Toqan

Image: Getty Images

Compiled by Sandy Welch

SEPTEMBER 2026 // INVESTING

Inflation returns to the spotlight as global rate outlook shifts

peaking at the recent Discovery Invest In Conversation with Ninety One quarterly fund update, Malcolm Charles, Discovery Diversified Income Fund Portfolio Manager, unpacked some expectations for the rest of the year. The global economic outlook has taken a sharp turn from the relatively benign environment investors entered 2026 expecting. Rising oil prices, renewed inflationary pressures and increasing government borrowing costs are forcing central banks to reconsider the prospect of further rate cuts, creating fresh headwinds for South African investors and consumers. At the start of the year, the backdrop looked considerably more supportive. Inflation in South Africa had fallen to 2.9%, expectations were for at least two local rate cuts, while the US Federal Reserve, European Central Bank and Bank of England were also expected to ease monetary policy. Global inflation appeared to be under control, while South African growth was expected to remain below 2%. It was, in other words, a near-perfect Goldilocks environment. That changed dramatically with the escalation of the conflict involving Iran and its impact on energy markets. The resulting surge in oil prices has introduced a new inflationary shock at a time when central banks were hoping to move towards lower interest rates. Oil changes the equation The rise in oil and diesel prices is particularly problematic because it feeds through into economies well beyond the energy sector. Higher fuel costs increase transportation and production expenses, putting pressure on businesses and ultimately consumers. The impact is already being felt globally, with higher gas and energy prices adding to inflationary pressures. At the same time, rising energy costs threaten to dampen economic growth. For fixed-income investors, the combination is particularly uncomfortable. Higher inflation reduces the likelihood of interest-rate cuts, while weaker growth increases economic uncertainty. Meanwhile, government borrowing costs are rising as investors demand greater compensation for holding longer-dated debt. US Treasury yields, Japanese government bonds and other major bond markets have all been affected by the shift. The US government recently issued 30-year debt at its highest demanded yield in more than two decades, highlighting the extent of pressure building in global bond markets. As borrowing costs rise, the impact eventually filters through to economies and consumers, regardless of what equity markets are doing in the short term.

Making rate hikes more likely across the globe As the oil spike pushes inflation higher Fed

US Policy Rate

US 2 year yields

ECB

EZ Policy Rate

EZ 2 year yields

6 4

2 2

0 2016

2017

2018

2019

2020

BOE

2021

2022

2023

UK Policy Rate

2024

2025

UK 2 year yields

2017

2018

2019

2020

2021

BOJ

2022

2023

2024

JP Policy Rate

2025

JP 2 year yields

1.5

0.5

0 -2 2016

-2 2016

0 2017

2018

2019

2020

2021

2022

2023

2024

2025

-0.5 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Source: Bloomberg, 22 July 2026

Central banks under pressure Inflation is therefore once again at the centre of the investment debate. One useful indicator is the relationship between two-year swap rates and official central bank rates. Historically, the market often moves first, signalling where investors believe monetary policy needs to go. That dynamic has now shifted. In the US, for example, swap rates have moved above the official policy rate, suggesting that markets are increasingly pricing in the possibility that rates may need to rise rather than fall. Similar pressures are emerging in Europe and the UK. Japan presents an even more pronounced example, with market rates significantly ahead of official rates. The broader concern is that some developed markets are beginning to display characteristics traditionally associated with emerging markets. Political uncertainty, fiscal pressures and rising borrowing costs are forcing investors to demand higher risk premiums. The UK provides a striking example. Its 10-year government bond yield has risen to levels that exceed those of some traditionally higher-risk markets, reflecting growing investor concern about the country’s fiscal and economic outlook. South Africa faces its own headwinds South Africa has not escaped the changing environment. The country entered the year with inflation completely under control, but the latest reading was around 4.3%, well above the 3% target. Although lower petrol prices could provide temporary relief, inflation is expected to move back towards 5% as some of the energy-related pressures work their way through the economy. This creates a difficult environment for the South African Reserve Bank. Cutting rates too aggressively could undermine its inflationfighting credibility, while keeping rates higher for

longer places additional pressure on consumers and businesses. A further rate hike in September is therefore seen as a distinct possibility. Markets are currently pricing in around 50 basis points of increases between now and December, although the expectation is that one 25-basis-point hike may ultimately be sufficient to restore credibility. For South African consumers already facing high living costs, however, even one additional rate hike represents another challenge. A better outlook ahead There is some light at the end of the tunnel. While the remainder of 2026 could prove challenging for short-term interest rates, the longer-term inflation outlook is more encouraging. Expectations are for inflation to end 2027 around 3.5%, suggesting that some of the current pressures may prove temporary. This could create a more supportive environment for markets in 2027, provided inflation continues to moderate and central banks regain room to ease monetary policy. For advisers and investors, the key lesson is that the relatively benign conditions anticipated at the beginning of the year can change quickly. Geopolitical events can disrupt inflation, interest rates and bond markets far beyond their immediate point of origin. The current environment reinforces the importance of maintaining a diversified portfolio, understanding the sensitivity of different asset classes to inflation and interest rates, and avoiding the temptation to make long-term investment decisions based solely on short-term market noise. For now, inflation is back in the spotlight. The hope is that it proves a temporary detour rather than a return to the high-inflation environment investors have spent years trying to leave behind.

www.moneymarketing.co.za // 21

INVESTING // SEPTEMBER 2026

Understanding structured investment products

More than an investment product Structured products are often described in terms of their features, such as capital protection or participation rates. While these are important characteristics, they do not fully explain their role within a portfolio. At their core, structured products seek to solve a common investor challenge: how to participate in market growth while managing downside risk. Many investors are comfortable with the long-term return potential of equities but less comfortable with the volatility that often accompanies it. Structured products create an alternative risk-return profile by defining the outcomes that an investor may receive under different market scenarios. In essence, they provide a framework that allows investors to access growth opportunities while introducing a level of certainty that is not typically associated with direct market exposure. The attraction of defined outcomes One of the distinguishing characteristics of structured products is their ability to provide predefined outcomes over a fixed investment term, usually between three and five years. Unlike traditional collective investments, where returns are determined solely by market performance, structured products are designed with clear parameters from the outset. Investors know the conditions that must be

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met for a particular outcome to occur and can therefore assess potential returns within a more predictable framework. This predictability is particularly valuable during periods of elevated uncertainty, when investor behaviour can become heavily influenced by short-term market movements. By reducing the need to react to market noise, structured products can help investors maintain a longer-term perspective.

structures focus on magnifying participation in market growth, while others prioritise predefined returns if certain conditions are met. Autocall strategies introduce another dimension, providing opportunities for early maturity if predetermined performance thresholds are achieved. While the mechanics differ, the underlying objective remains consistent: creating an investment outcome that cannot easily be replicated through traditional investments alone.

The importance of capital protection Perhaps the most widely recognised feature of structured products is capital protection. Depending on the structure, investors may receive up to 100% of their original capital back at maturity, and in some cases even more, regardless of the underlying market’s performance. This feature appeals to investors who are concerned about preserving capital but who are reluctant to remain entirely in defensive assets. It creates a pathway to participate in market opportunities while limiting exposure to severe market drawdowns.

A valuable portfolio construction tool Structured products are best viewed through the lens of portfolio construction rather than as standalone investments. They are not intended to replace core asset allocations. Instead, they can enhance an existing portfolio by introducing a differentiated return profile and providing exposure to risk-managed growth opportunities. Their value lies not only in what they invest in, but in how the investment outcome is structured. In an era where investors are increasingly seeking balance between opportunity and certainty, structured products have become an important component of many diversified portfolios.

Broadening the opportunity set Structured products can also serve as a gateway to markets, themes and asset classes that may otherwise be difficult for investors to access efficiently. Many structures are linked to global equity indices, thematic investment opportunities or specialised market segments. Others may reference commodities, currencies or baskets of assets constructed around specific investment themes. This flexibility allows investors to express a particular investment view or gain exposure to long-term structural trends without necessarily assuming the full risk associated with direct investment. For advisers and portfolio managers, this ability to access differentiated sources of return can make structured products a valuable portfolio construction tool.

Looking beyond the headline features As with any investment, structured products come with trade-offs. They generally require a medium-term commitment, may offer limited liquidity before maturity, and expose investors to the creditworthiness of the issuing institution. Nevertheless, when used appropriately, they can provide a compelling combination of growth potential, risk management and diversification. The conversation around structured products should therefore extend beyond capital protection and payoff formulas. Their true value lies in helping investors remain invested through uncertainty, access differentiated opportunities and build portfolios that are better aligned with their long-term objectives.

Not all structured products are the same Although the term ‘structured product’ is often used broadly, the category encompasses a range of different payoff mechanisms. Some

About Glacier by Sanlam: Glacier by Sanlam is your trusted partner in unlocking infinite investment opportunities. As the largest linked investment service provider, we have led the way in meeting the diverse needs of South Africans for over 27 years. Our extensive range of local and international solutions empowers investors to create, grow, and preserve their wealth. Through innovative products and expert advice, we offer infinite opportunity to achieve financial success. Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider. Sanlam Life Insurance Ltd is a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43).

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he investment landscape has become increasingly complex. Investors are expected to balance the pursuit of growth with the need to manage risk By Zaheer Bhikha – all while navigating Executive Head of heightened market Product Development volatility, geopolitical at Glacier by Sanlam uncertainty and rapidly changing economic conditions. In this environment, portfolio diversification remains one of the most powerful tools available to investors. Yet diversification is no longer simply a question of combining equities, bonds and money market instruments. Increasingly, investors are looking beyond traditional asset classes for solutions that can deliver differentiated outcomes and help address specific investment objectives. This has contributed to growing interest in structured products. Structured products occupy a unique position within a portfolio. Rather than competing with traditional investments, they are designed to complement them. They provide exposure to carefully engineered payoff profiles that reference unique market investment themes and offer investors access to opportunities that may not be available through conventional investment vehicles.

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Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.Sanlam Life Insurance Ltd is a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43).

Singular personalisation Because no two investment journeys are the same. Personalised New Business simpliﬁes onboarding so you can focus on what matters most – client relationships.

Momentum Wealth Momentum Wealth is part of Momentum Investments and Momentum Group Limited. Momentum Wealth (Pty) Ltd is an authorised ﬁnancial services provider (registration number 1995/008800/07, FSP number 657). Momentum Metropolitan Life Limited is an authorised ﬁnancial services and credit provider (registration number 1904/002186/06, FSP number 6406).

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SEPTEMBER 2026 // INVESTING

What personalised investing really means

n the wealth management industry, CEO at Momentum the term personalised Wealth investing has become a fashionable buzzword. Too often, it is reduced to a simple product conversation: selecting a fund from a pre-packaged menu or receiving a tailored product recommendation. In reality, true personalisation goes far beyond product selection. It’s not a transactional choice, but an ongoing process. Successful investing is about building and maintaining a structural ecosystem that uniquely reflects a client’s life stage, tax position, family dynamics, and long-term aspirations.

By Hymne Landman

The unique client blueprint No two clients share the exact same balance sheet, family responsibilities, or definition of financial success. An investment strategy must therefore be shaped by a multi-dimensional matrix of personal factors. A young professional building capital has different structural needs than a member of the sandwich generation supporting both children and ageing parents, or a retiree transitioning from accumulation to income generation. True personalisation evaluates how an investment behaves within a client’s broader tax framework. Optimising for tax efficiency and structural liquidity ensures that money is accessible when needed without triggering unnecessary financial consequences. Wealth is rarely managed in isolation. Family structures, estate planning, and legacy goals dictate how investments should be structured, owned, and eventually distributed.

This does not mean every client requires a completely bespoke solution. Effective personalisation often comes from understanding the characteristics and needs of different clients and applying investment solutions in ways that remain relevant to each client’s circumstances. Navigating life’s pivots A generic investment product is static, but life is fluid. Major transitions such as marriage, divorce, welcoming a child, selling a business, receiving an inheritance, or approaching retirement are not just personal milestones but structural financial disruptions. When these pivot points occur, an investment strategy cannot remain unchanged. For example, inheriting money or transitioning to retirement shifts the primary investment objective from long-term accumulation to capital preservation and income continuity. Rather than resetting the clock or abandoning established strategies during transitions, personalisation ensures that your money moves forward with you. It builds a bridge of continuity, adjusting risk profiles and asset allocations to align with your new reality. The emotional guardrail Market volatility is inevitable, but emotional decisionmaking is preventable. During periods of market uncertainty, clients without a deeply personalised plan are highly susceptible to panic, often selling assets at the bottom of a market cycle or chasing speculative, short-term trends.

This is where behavioural finance meets personalised advice. When an investment strategy is explicitly mapped to your personal goals rather than generic market benchmarks, it acts as an emotional anchor. Understanding why your portfolio is structured a certain way and how it secures your unique liabilities provides the clarity needed to ignore short-term market noise and remain committed to the long-term plan. Integrating the big picture Ultimately, personalised investing cannot exist in a silo. True financial resilience requires holistic wealth planning that integrates investment management with tax optimisation, estate planning, and retirement structuring. This level of integration is difficult to achieve through self-directed investing or generic digital platforms. It requires the expertise of a professional financial adviser who can look past individual products to construct a cohesive, living plan. We believe in the value of financial advice and that holistic financial planning is accessible through an experienced and accredited financial adviser or wealth manager who considers personalisation when constructing investment solutions. By shifting the conversation away from product transactions and toward a structured, goals-aligned partnership, we can ensure that our investments don’t just grow but actively support the lives we want to build. Each person’s journey is unique and personal. With us, you can shape that journey in the most singular way. Speak to your Momentum Wealth consultant to find out more or visit our website at momentum.co.za/ momentum/personal/wealth Momentum Wealth is part of Momentum Investments and Momentum Group Limited. Momentum Wealth (Pty) Ltd is an authorised financial services provider (registration number 1995/008800/07, FSP number 657). Momentum Metropolitan Life Limited is an authorised financial services and credit provider (registration number 1904/002186/06, FSP number 6406).

The critical gap that traditional disability cover overlooks

isability cover exists to cover employees if illness or injury takes away their ability to earn, ensuring their income doesn’t CEO: Fedgroup Life disappear too. Yet, too often that cover fails the very people it’s meant to support. The first problem is cost. Income protection is among the most expensive types of cover in group risk, and premiums increase with age, occupation and claims history. When budgets tighten, it’s one of the first benefits an employer trims, leaving members exposed just when they need it most. The second problem is the claims gauntlet. Submitting a disability claim is rarely as simple as getting a doctor’s note. It can mean months of waiting, layers of medical and functional assessment, and repeated reassessments even after a claim is admitted. For someone already coping with a life-changing diagnosis, the process can feel like an added ordeal. The third problem, the one brokers wrestle with often, is the definition of disability. Traditional benefits pay out only if the member can’t perform their own occupation or any alternative their training suits them for. So a skilled person who can’t continue to do their own job, but could in theory do another, may not qualify at all. None of this is a criticism of disability cover. It does an essential job – replacing an income when someone can no longer work – and for that purpose it remains vital. But because it is designed around a person’s

By Walter van der Merwe

ability to earn, there is one thing it was never built to do: respond to the loss itself. When an employee permanently loses a sense or a physical ability, that loss is life-changing regardless of whether they can still work, and it is precisely this need that traditional cover was never meant to address. That is the gap worth talking about. That thinking led Fedgroup to build something different. Our approach to Group Risk starts by understanding what members need, then designing products to meet it, which is why we look for ways to pay claims rather than reasons to decline them, with limited exclusions and short turnaround times. It also led us to developing a new benefit altogether. Inability cover is a standalone, industry-first benefit that pays a lump sum when an employee loses an essential sense or physical ability through illness, injury or disease. Unlike traditional disability cover, it isn’t linked to whether the person can still work but rather focuses on the loss itself. A member who loses their sight, hearing, speech or the use of an essential physical ability is protected because of what’s happened to them, not because an assessor has determined whether they can still work. For brokers, that changes the conversation. Instead of explaining to an employer why a member’s claim was declined on a technicality, you can offer a standalone cover that pays on a clear event, making it simpler to explain, place and honour. If you’d like to see how inability cover could sit alongside your clients’ existing group risk cover and close the gap, speak to us. It’s a conversation worth having before the claim, not after.

www.moneymarketing.co.za // 25

RETIREMENT // SEPTEMBER 2026

Her retirement reality is different; her portfolio should be too

outh African women tend to live about five years longer than men, and that extra time must be funded. It has to be funded, too, off a contribution record that is more often interrupted, whether by choice or by circumstance. Her portfolio has to carry both. What the data shows The evidence shows that discipline isn’t lacking. Old Mutual Corporate’s 2025 Retirement Fund Data and Financial Wellness Study, drawn from close to 500 000 umbrella fund members, found that young South African women contribute a higher proportion of their income than their male counterparts and manage their debt better. However, the trajectory flattens from around age 40, not through any change in behaviour, but because women earn on average 15% less, take more career breaks, and belong to funds whose structures often assume an uninterrupted career. The discipline, then, isn’t what’s missing. The portfolio instead has to accommodate a contribution stream that’s lower after 40, more likely to be interrupted, and expected to fund a longer retirement. This is not an argument against becoming more cautious near retirement. There is a good reason funds do it: a market fall hurts most when the savings pot is at its biggest and someone has just started drawing an income from it, because units sold at depressed prices are no longer there to participate in the recovery. Protecting against that is sensible, but protecting the first few years of drawdown is not the same as staying defensive for the decades that follow. Retirement at 60 marks the start of the spending phase, not the end of the investment horizon, and the members who stay invested longest are disproportionately women. The question is what shape the de-risking should take, not whether it should stop at 60. What a break in contributions actually costs An obvious cost of taking breaks is the lower contributions paid over a lifetime. However, there is a second cost that is easier to miss. A monthly contribution does more than add to the total. When markets fall, the same R1 000 buys more than it did the month before. Regular contributions therefore automatically buy more units when prices are low and fewer when prices are high, without requiring an active investment decision. This practice has a name: rand cost averaging, which works quietly in the background as monthly retirement contributions steadily accumulate. When contributions stop, that stops too. What is already invested continues to rise and fall, but there are no new funds to benefit from periods of falling prices.

26 // www.moneymarketing.co.za

Source: Prescient Investment Management

Source: Prescient Balanced Fund A2 vs peer group average, cumulative return since inception (%), Prescient Investment Management, Profile Data

The obvious and less obvious costs of taking a career break can be countered by maintaining portfolio exposure to growth assets, rather than reducing this, because the portfolio has lost its monthly inflows and now needs the existing assets to do the heavy lifting. Yet, counterintuitively, most women are prone to move into safer, less growth-oriented assets. Where growth and safety must coexist Balanced funds have long been the default home for South African retirement savings, and the reason is structural. Regulation 28 has ensured that investors are invested in diversified retirement portfolios that have some exposure to growth assets. A balanced fund invests across multiple asset classes, including equities, bonds, listed property and cash, with exposure to both South African and global markets. Each asset class plays a distinct role in the portfolio. Growth assets such as equities have historically delivered the strongest long-term returns, but they also experience periods of significant volatility. Defensive assets provide income and stability, but a portfolio weighted too heavily towards them sacrifices the growth needed to keep real incomes rising over a long retirement. The answer to the gender retirement contribution conundrum is not to choose one over the other, but to combine them deliberately. By blending assets with different return drivers, a balanced fund aims to participate in long-term growth while mitigating the impact of any single asset class or market environment on the portfolio’s overall performance.

The Prescient Balanced Fund, for example, is a core long-term holding that adheres to this philosophy, targeting CPI + 6.5% over rolling long-term periods rather than standout single years. Equity exposure is spread across South African, developed and emerging market indices, providing exposure to thousands of companies rather than relying on a concentrated group of stock selections. Active decisions are instead focused on where they are most likely to add value: within fixed income, tactical asset allocation and currency management. Period

Fund (%)

Category average (%)

1 year

13.12

11.10

Since inception

9.85

8.34

Highest 1 year

34.56

31.44

Lowest 1 year

-9.16

-10.17

Source: Prescient Balanced Fund A2 vs peer group average, annualized performance (%), Prescient Fund Services, Profile Data as at 2026-07-31

The prevailing advice to women is to save more, learn more, and ask better questions. What’s more important is how and where they are investing because women in South Africa’s workforce already contribute a higher share of their income than men do. The effort going in is not the problem; it’s about striking the right balance between benefiting from growth assets and protecting against downside risk by allocating to historically less-volatile assets in a portfolio that offsets the costs of a potentially disrupted contribution profile and longer retirement.

SEPTEMBER 2026 // RETIREMENT

When is it too late to complain to the Pension Funds Adjudicator?

What recent cases tell us Many of the prescription-related determinations handed down by the FST in the past year have involved complaints about the non-payment or underpayment of contributions that occurred many years prior to the lodging of the member’s complaint with the PFA. Mpengesi v PFA & Others (PFA26/2025) In this case, the member filed her complaint shortly after discovering missing contributions for periods almost 20 years prior. However, she had not yet retired from employment and only became aware of the missing contributions in the process of retirement planning. The FST found that the complainant could not reasonably have known, so the complaint was not time barred. The matter was referred to the PFA for further consideration. Rapasa v PFA & Others (PFA57/2025) In this case, the complainant’s employment had terminated in 2018, but he only submitted a complaint relating to alleged missed contributions in December 2024. The PFA declined to investigate the complaint because too much time had lapsed and the FST confirmed this position on appeal.

Key takeaways Prescription is highly fact specific. For employers and employee benefits consultants, strong recordkeeping, clear communication and prompt resolution of issues remain the most effective ways to protect members’ interests and reduce the risk of future disputes. In addition, employers should: • Ensure that eligible employees are registered with the retirement fund timeously and that contributions are paid correctly and on time. • Maintain complete payroll, contribution and membership records, as these may be required years later to resolve a dispute. • Ensure that employees receive benefit statements and other retirement fund communications promptly. • Investigate and resolve queries as soon as they arise. Remember that if a member could not reasonably be expected to be aware of an issue, a complaint may still proceed despite the time that has lapsed.

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ecent Financial Services Tribunal (FST) decisions have highlighted the importance of beneficiaries acting promptly when concerns arise regarding By Jaya Leibowitz retirement fund benefits. Manager of the Retail The outcomes of these Legal team at Allan Gray cases have implications for employers and their advisers and members. When it comes to lodging a complaint about a retirement fund dispute, timing is only one part of the picture. A complaint may still proceed many years after a problem first occurred, particularly if the affected member had no reasonable way of discovering it sooner. Section 30I of the Pension Funds Act generally gives members three years to lodge a complaint with the Pension Funds Adjudicator (PFA). Calculating the threeyear period does not always start when the issue arises. According to the Prescription Act, the time from when a person can enforce a legal claim before it expires, or ‘prescribes’, only starts when the complaining member learns about it.

Sehlabaka v PFA & Others (PFA8/2025) The complainant had exited his retirement fund in January 2015. He received a withdrawal benefit from the fund in April 2015 and a further payment in 2019, each of which was accompanied by a detailed benefit-payment communication, explaining the calculation and tax treatment of the benefit payments. The complaint was lodged in August 2024. The PFA declined to investigate the complaint because too much time had lapsed. On appeal, the FST held that a member who had received benefit statements and payments years earlier should reasonably have known the facts giving rise to the complaint.

The Allan Gray Umbrella Retirement Fund Simpler choices. Better decisions. With countless funds to choose from, making the right investment decision for your employees can be daunting. At Allan Gray, we simplify this process by providing a considered selection of funds containing our best investment ideas. Our focus is on removing complexity from retirement benefits, so that you can concentrate on what matters most: running your business. To find out more about our Umbrella Retirement Fund, call Allan Gray on 0860 000 870, or your financial adviser, or visit www.allangray.co.za.

The Allan Gray Umbrella Retirement Fund (comprising the Allan Gray Umbrella Pension Fund and Allan Gray Umbrella Provident Fund) is administered by Allan Gray Investment Services (Pty) Ltd, an authorised administrative financial services provider and approved pension funds administrator. Allan Gray (Pty) Ltd, also an authorised financial services provider, is the sponsor of the Allan Gray Umbrella Retirement Fund.

www.moneymarketing.co.za // 27

PROPERTY INVESTING // SEPTEMBER 2026

Listed property finds its footing By Sandy Welch

Editor, MoneyMarketing

isted property was the best-performing South African asset class in the first half of 2026. South African REITs delivered a total return of 6.3% in the first six months of the year, ahead of the All Bond Index at 4.2%, and the All Share Index, which recorded a negative 3% over the same period. The broader SA Listed Property Index delivered 4.6%. While these returns are below the exceptional 30.6% delivered by the property index in 2025, they are notable given the disappearance of some of the tailwinds that supported last year’s performance. It appears that investors are increasingly focusing on quality, resilience and visible cashflows. That selectivity could favour well-managed property companies with strong platforms, disciplined capital allocation, and credible management teams. Counters such as Fortress, Vukile and Sirius are cited as examples of businesses attracting capital because of their operational execution and resilience. From repair to growth The sector’s improving position is also reflected in the shift from balance-sheet repair towards capital deployment. The major gains from post-crisis valuation reratings may now be behind the sector, but this creates a new test for management teams: deploying capital accretively, pursuing disciplined acquisitions and maintaining balance-sheet strength.

Unlocking growth for South Africa’s SMEs

or many entrepreneurs, commercial property ownership is not simply about acquiring premises. It’s about creating a platform for growth, building long-term value, and gaining greater control over the future of the business. Owning the premises from which a business operates is often one of the most significant milestones in that journey. Yet for many small and medium-sized enterprises (SMEs), commercial property ownership remains out of reach. Even successful businesses can struggle with the upfront costs associated with purchasing property, including deposits, transfer fees, and bond registration costs. As a result, many are forced to continue renting despite having businesses capable of supporting ownership. According to Preggie Pillay, CEO of FNB

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Investor confidence is already visible in capital markets activity. Of the nine equity transactions completed on the JSE during the first eight months of 2026, five came from the property sector, suggesting that investors are prepared to provide capital to businesses with visible earnings and credible growth opportunities. Operational improvements are strengthening that investment case. Property companies have spent years addressing some of the structural pressures that weighed on earnings, particularly unreliable electricity and deteriorating municipal infrastructure. Resilience becomes a return driver Renewable energy has moved from being a defensive response to loadshedding to a strategic investment. According to Kopano Makhu, Porftolio Manager at Mazi Asset Management, the South African listed property sector has effectively become its own utility provider. “REITs are increasingly generating electricity on-site, procuring renewable energy through private power purchase agreements (PPAs), investing in battery energy storage systems (BESS), harvesting and recycling water, and deploying intelligent building technologies to optimise resource consumption,” he says. These are all helping landlords to reduce electricity costs, improve reliability and protect tenant relationships. Growthpoint, for example, had more than 68MWp of installed solar capacity across 83 rooftop plants by the end of its 2025 financial

Commercial Property Finance, the challenge is often not business performance, but the barriers traditionally associated with acquiring commercial property. “Many entrepreneurs have built strong businesses and generated consistent cashflow over time. The obstacle is often the significant upfront capital traditionally required to acquire commercial property. For growing businesses, that can mean postponing opportunities that would otherwise support expansion and long-term value creation.” Recognising this challenge, FNB Commercial Property Finance has introduced a solution designed to make ownership more accessible for qualifying SMEs. Through its commercial property offering, qualifying businesses can access up to 110% funding for commercial properties valued at up to R7.5 million, including support for bond-related costs. By reducing the upfront capital typically required, the solution enables business owners to move more quickly when opportunities arise and to invest in an asset that supports their long-term ambitions. The benefits of ownership extend beyond securing business premises. It allows entrepreneurs to build equity in a tangible

year, following an investment of more than R1bn. Resilient REIT has expanded its solar footprint to 88MWp, with capacity expected to reach 94.4MWp by the end of its 2026 financial year. These investments are increasingly being viewed through a financial rather than purely ESG lens. Lower energy costs can improve net operating income, while reliable power supports tenant satisfaction, occupancy and rental growth. Water resilience is also becoming part of this strategy, with property owners investing in boreholes, water storage, recycling and leak detection. The result is a sector that looks considerably better positioned than it did several years ago. The next phase is likely to be about owning better, more resilient assets, and allocating capital with discipline. For investors, that makes listed property an increasingly interesting income and growth opportunity – particularly where strong management, sound balance sheets and operational resilience come together.

asset, improve the financial strength of their businesses and create a platform for future growth. Rather than directing capital towards ongoing rental expenses, ownership gives business owners the opportunity to invest in an asset that can contribute to lasting value creation. Pillay says, “ When more SMEs are empowered to move from renting to owning, the impact extends far beyond individual businesses. Ownership creates the confidence to invest, expand and create jobs. Making commercial property ownership more accessible is not simply about financing buildings. It is about unlocking growth.” For many entrepreneurs, owning their premises is more than a business milestone. It is an investment in their future, a foundation for sustainable growth and a powerful step towards building long-term value.

SEPTEMBER 2026 // PROPERTY INVESTING

There’s heightened value in not following the herd By Laurence Rapp

Chief Executive Officer, Vukile Property Fund

We’ve built a long record of outperformance to prove it.

here is a version of investment success that looks obvious in hindsight. A thesis that, once proven, attracts followers, commentary and retrospective validation. The problem is that, by then, it is too late to use this thesis to outperform. The gains are made earlier, when investors identify a cycle before their competitors do. Contrarian conviction has long guided Vukile Property Fund. It has shaped deliberate decisions made at specific points in a cycle, often going against the prevailing consensus. Those decisions have enabled us to outperform and uncover pockets of opportunity. Retail specialisation: A contrarian call For too many years now, the dominant narrative in property investment circles has been that shopping centres are doomed. E-commerce, the false argument goes, is eating physical retail alive. Using this as conventional wisdom, the logical conclusion for a listed property fund was to diversify away from shopping centres, or at least to stop doubling down on them. Vukile did the opposite. We committed to being specialist retail REIT that understands shoppers and thinks carefully about what shopping centres can do for them. Consumers are sensory beings. They touch, smell, see and interact with products and with each other. A shopping centre, managed well, is not simply a place to transact. It is an environment that speaks to those instincts – the shopfront designed to catch the eye, the scent diffused at the entrance, the energy of a busy food court on a Saturday afternoon. These are the reasons physical retail endures, even as e-commerce matures. Retail property is a resilient and profitable sector. Even in tough economies. When an economy slows, consumers still need to shop. They tend to move into the value segment and trade down from branded products. They don’t stop spending altogether. Retail demand does not disappear; it shifts. This understanding informed our South African portfolio, which today stands at R19.5bn and continues to serve some of the country’s most resilient consumer markets. The same conviction underpins our European expansion. Investing in Spain and Portugal: Contrarian growth When Vukile moved into Spain in 2017 through Castellana Properties, European retail property was not fashionable. Seeing things differently and recognising potential, we entered anyway. We started by acquiring a portfolio of smaller retail parks and applying the active asset management discipline we had developed at home and, importantly, building an on-the-ground team of local professionals in Spain. Net operating income across those original

assets grew by around 23% under our stewardship. We scaled, added Portugal, and built Castellana into a €2.2bn platform with prime assets in Madrid, Barcelona and Valencia. Vukile is now the third largest South African REIT with total assets value of R63.7bn, and 70% of our assets in Spain, Portugal and Italy, making up one of the strongest portfolios in the region. That position was built by a refusal to be put off by conventional wisdom. Italy: The next contrarian chapter In mid-2026, Vukile established Esperia Properties as its Italian platform, with an inaugural acquisition of three shopping centres – Le Due Valli in Turin, Le Centurie in Padua, and Quarto Nuovo in Naples – purchased for €115m at an initial yield of 10%. Two further acquisitions totalling approximately €200m are already in advanced stages, at an expected cash-oncash yield of 9%. The conventional wisdom on Italy is familiar: difficult bureaucracy, a complex south, a large cash economy by European standards, and – the one that gets raised most frequently – the shadow of organised crime. We chose to interrogate that narrative rather than accept it. Vukile knows something about operating in a cash economy with governance complexity and a construction mafia. South Africa has been our training ground. We understand that cash finds its way into consumerism. Our governance standards have placed us above the 99th percentile on the GIBS Ethics Barometer. Our successful expansion in Spain has shown us that, although entering a new market can be challenging for foreign investors, building a team of experienced local professionals on the ground can make operating abroad no more difficult than doing business at home. Our latest figures also show that the yield gap between northern and southern Italy has narrowed. In fact, for Vukile, Italy offers a compelling investment backdrop. Italian households carry

exceptionally high net wealth and low debt. The country has a deep-rooted consumer culture with strong discretionary spending on fashion, food and beverage, and experiential retail. E-commerce penetration stands at just 10%, which is the lowest in Europe. Italy ranks second for cumulative tenant sales growth since 2019. With limited new supply and strong trading metrics across the shopping centre sector, market dynamics are favourable. The fundamentals for well-located, nodally dominant retail assets in Italy are genuinely attractive. Over time, we are targeting a portfolio in excess of €500m through Esperia. Local knowledge, exported discipline What de-risks our contrarian growth into Italy is our unique approach to international expansion, which has served us so well in Spain and Portugal. Start with attractive fundamentals, strong assets and put the right in-country team and partners in place, then add value through active management, build scale over time, and always stay firmly focused on our retail specialisation. Prior to entering Italy, Vukile acquired a 35% stake in Pradera Limited, a specialist pan-European retail asset manager with 25 years of experience and approximately €5bn of assets under management. Pradera has managed our inaugural Italian retail assets for a decade already. The combination of Pradera’s on-the-ground expertise, Vukile’s track record of building new investment platforms, and our unwavering commitment to ethical governance, puts Esperia in a singularly strong position to succeed. The steady success of creating value through continuous compounding As for real the value of not following the herd, this is evidenced in Vukile’s track record of relative outperformance for investors over the past one, three, five, seven and 10-year periods compared to the SA Listed Property Index, the All-Share Property Index and a peer group index.

www.moneymarketing.co.za // 29

COMPLIANCE // SEPTEMBER 2026

You may be more ready for COFI than you think By Sandy Welch

Editor, MoneyMarketing

or many financial advisers, the word COFI is increasingly difficult to ignore. As the Conduct of Financial Institutions framework moves closer to becoming a reality, uncertainty about licensing, business structures and future requirements is beginning to give way to a more pressing question: Is my business ready? According to Anri Dippenaar, Head of Compliance at Masthead, speaking at the recent Masthead Masterclass, the answer starts with understanding what a business does, rather than simply relying on its existing FAIS licence or traditional industry label. “The shift is not what you are, but effectively what you do,” she explains. That change in thinking is at the heart of COFI readiness and could require advisers to look at their businesses through a different lens. Moving beyond the FAIS label Under the current framework, advisers often describe themselves according to their licence category or the products they advise on. An advice-led practice might identify itself as a Category 1 FSP, for example, with the products it offers helping to define its place in the market. COFI introduces a far more activitybased approach. Instead of simply asking what type of FSP a business is, firms will need to identify the activities they perform, from providing advice and servicing clients to sales, execution, aggregation and comparison. “The question we need to answer is, what do you do in your business?” says Dippenaar. This distinction matters because two businesses with identical FAIS licences may have very different activities and therefore different obligations under COFI. For small and independent practices, this should not automatically be interpreted as a threat to independence or a requirement to merge with a larger business. Instead, Dippenaar says, proportionality will be important. “Independence is not the problem. Your small business structure is not the problem. Clarity really is the problem.” Preparation starts with understanding the business One of the biggest risks for advisers is

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treating COFI as a simple relabelling exercise. A direct conversion from a FAIS licence to a COFI licence could overlook activities that are already taking place within the business. A practice may consider itself primarily an advice business, for example, but its day-today operations could also involve sales and execution, administration, servicing or other activities that need to be identified. Dippenaar recommends that advisers start by mapping the entire client journey. “Go back to your office, unpack your client journey, unpack everything you do in your business,” she says. “Look at your leads, look at your advice channel, look at your marketing, look at your sales, look at your servicing, look at how you execute in your business.” The objective is not to restructure the business immediately, but to understand it properly. This is particularly important while COFI remains in draft form. Firms cannot make definitive licensing decisions based on requirements that may still change. What they can do is use the time available to understand their businesses and prepare for the eventual transition. Documentation will be critical Preparation also means creating an evidence trail. Dippenaar highlights weak documentation as one of the biggest challenges in compliance. Advisers may be doing the right things, but if those decisions and processes are not documented, demonstrating compliance later can become difficult. This has implications beyond COFI. A well-documented business is easier to manage, protect, value and ultimately sell. “Think through, document, understand your business, make the right decisions,” she says. For advisers, this means reviewing business plans, succession plans, servicing structures, client journeys and operational processes. It also means recording why particular activities are or are not regarded as requiring licensing.

Don’t let the noise drive the strategy With COFI generating increasing discussion across the industry, advisers may be tempted to make decisions before the final requirements are known. Dippenaar’s advice is to resist knee-jerk reactions. There is considerable speculation about what COFI will mean for smaller practices, technology requirements and licensing. But not all the information circulating in the market is accurate or relevant to every business. “Don’t listen to all the things you’re hearing in the industry. There is quite a bit of noise,” she says. Instead, advisers should stay close to their compliance officers and use the available preparation time wisely. Masthead has also been engaging with regulators and gathering information from its adviser network to identify areas where greater clarity or education may be needed. A strategic opportunity Ultimately, COFI readiness should not be viewed purely as a compliance exercise. Understanding the activities, structure and operating model of a business can also provide an opportunity to strengthen the practice. For smaller firms in particular, the process could help clarify what they do, how they create value and whether their current operating model is sustainable. “It isn’t about giving up your independence. It isn’t about becoming a large business,” says Dippenaar. “It is about making sure you have a strong operating model story, something you can explain, and it will protect you into this next phase of the industry change.” For advisers, the immediate task is therefore relatively simple: understand the business before trying to understand the licence. COFI may change the regulatory framework, but the firms that take the time now to understand their activities, document their processes, and build a clear operating model will be better positioned when the requirements finally arrive.

SEPTEMBER 2026 // COMPLIANCE

When ‘good enough’ is not good enough By Sandy Welch

Editor, MoneyMarketing

ompliance can sometimes feel like a constant balancing act. But according to FAIS Ombud John Simpson, the best protection for both advisers and their clients is surprisingly straightforward: understand what you are recommending, explain it properly, keep comprehensive records, and never assume a client has read the fine print. Speaking candidly about the lessons emerging from complaints, Simpson emphasises that the Ombud’s role is not simply about punishing advisers. “I really don’t see myself as this draconian guy that’s here to step on your neck,” he says. “The intention in my mind is to improve the industry continuously.” That means helping advisers understand their responsibilities while also encouraging consumers to take greater ownership of their financial decisions. A changing complaints landscape The Ombud’s office received just under 15 000 complaints in the last financial year, although only around 3 000 fell within its jurisdiction. This represents a significant improvement from the roughly 6 000 to 7 000 complaints within jurisdiction when Simpson took office in 2022. The average time to resolve a complaint is now just under 60 working days, while approximately R35.5m was awarded to consumers. Funeral policies account for around half of the complaints handled, reflecting their prevalence in the South African market. The complaints landscape is also set to change. The eventual amalgamation of the FAIS Ombud, the National Financial Ombud and, later, the Retirement Funds Ombud is intended to create a single platform for financial complaints. COFI is expected to play an important role in this transition. For advisers, however, Simpson’s message is clear: preventing disputes is preferable to resolving them. The adviser is more than a post box One of the strongest warnings is against treating the adviser’s role as simply passing SUBSCRIBE TO

information from an insurer or product provider to the client. “Nothing in the code says you can just forward stuff and they must read it,” says Simpson. “The onus is on the financial adviser to make sure they provide the advice.” If an insurer informs a client that a new vehicle tracking device is required, for example, simply forwarding the email may not be enough. The adviser needs to understand the communication, explain its implications, and ensure the client understands what action is required. Simpson describes the ideal adviser as someone who “goes the extra mile” and takes the time to translate complex information into plain language. That may take more time, but it can provide an important layer of protection for both the client and the practice.

“For advisers, however, Simpson’s message is clear: preventing disputes is preferable to resolving them” If you cannot explain it, do not sell it The same principle applies to financial products. Simpson warns against advisers recommending products they do not fully understand themselves. “Please do not ever sell anything or advise on anything you don’t understand 100%,” he says. If an adviser cannot explain how a product works, what the risks are, and how it meets the client’s needs, demonstrating appropriateness and suitability becomes difficult. This becomes increasingly important as financial products grow more sophisticated. Commercial incentives should never outweigh an adviser’s understanding of the product. “If you don’t understand it, trust me, your client will not understand it,” Simpson says. The answer, he argues, is simple: if an adviser does not understand a product, they should not recommend it.

Records can make or break a case Another recurring issue is record-keeping. An adviser may genuinely believe they explained a particular condition or risk to a client. But if there is no evidence of that conversation, proving what happened can become extremely difficult. “Where’s your records?” is often one of the first questions asked when a complaint reaches the Ombud. Simpson warns advisers not to rely on verbal conversations, particularly where significant financial decisions are involved. Important instructions, explanations and interactions should be documented, with verbal conversations followed up in writing where appropriate. This is especially important when advisers have long-standing personal relationships with clients. Familiarity can create an assumption that formal processes are unnecessary. But, as Simpson cautions, “a decades-long friendship collapses immediately in the face of losses”. Empowering clients Simpson’s approach is also firmly focused on consumers taking greater responsibility. Clients should not simply accept a recommendation without asking questions. They should read documents, research unfamiliar concepts, and understand the basics of what they are buying. “The consumer I love,” he says, “is the one that asks everything under the sun.” That may sound like a nightmare for an adviser, but Simpson believes the demanding client is ultimately better protected. Consumers can use online resources and AI tools to simplify complex terminology and identify questions they should ask. Ultimately, good compliance is not about creating unnecessary bureaucracy. It is about creating a culture where advisers understand their responsibilities, clients understand their decisions, and both sides have the information and records they need when things go wrong. As Simpson puts it, “It’s two-pronged. I’m trying to empower the industry and empower consumers.” That may be the most important lesson of all: when it comes to financial advice, ‘good enough’ is not good enough.

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Employee benefits enter a new era By Sandy Welch

Editor MoneyMarketing

or decades, employee benefits have largely been shaped by employers. Companies selected retirement funds, medical schemes and group risk benefits, while employees simply joined the structures that came with their jobs. That model is beginning to change. According to Geoff Baars, Chairman and CEO of NMG Benefits, the future of employee benefits will increasingly be driven by employees themselves, reflecting a broader shift towards personal choice, financial ownership and individual responsibility. “The future of employee benefits is in the hands of the employee,” says Baars. “It’s their money, and they’re going to want to make the decisions about how it’s used.” The shift is significant in an industry that manages approximately R800bn in annual contributions, including retirement funds, medical schemes and group insurance. Around nine million South Africans belong to retirement funds, while approximately eight million participate in group insurance arrangements. “It’s a very important industry,” says Baars. “What happens to this money is important to literally millions of people.” While participation is relatively broad, adequate financial security remains elusive. “The breadth of coverage is relatively good,” he explains. “The challenge is the depth of that coverage. Are people saving enough for retirement, and are the benefits meeting their long-term needs?” The employment landscape has also transformed. Defined benefit pension funds have largely disappeared, replaced by defined contribution arrangements where employees build their own retirement savings. Yet benefit structures have not kept pace. Employees increasingly fund their own retirement and healthcare through cost-to-company packages, but often have little say over the products they must join. “We’re seeing a growing logical inconsistency,” says Baars. “Employees are effectively paying for these benefits themselves, yet in many cases they’re still being told which retirement fund or medical scheme they must belong to.” Healthcare illustrates this shift particularly well. Medical scheme membership has remained largely

“The future of employee benefits is in the hands of the employee” static despite population growth, as affordability continues to constrain access. While alternative healthcare products have emerged, millions of South Africans remain without adequate private healthcare cover. For Baars, this means employers must move away from one-size-fits-all benefits towards advice that reflects individual circumstances. “Our mission is to ensure that every member receives the best financial advice for their circumstances,” he says. “We know that’s not happening today for many people.” Healthcare benefits under pressure According to Karin Mitchelmore, Executive Head of Healthcare Consulting at NMG Benefits, private healthcare is experiencing what she describes as a “squeeze effect”, driven by rising medical costs and declining affordability. “The rising cost of clinical treatment, combined with a shrinking pool of younger, healthier members, is forcing medical schemes to increase contributions well above inflation,” she says. “We’ve seen annual increases of around 10%, far outstripping salary growth.” As employees come under greater financial pressure, many employers are moving away from compulsory medical scheme membership, giving staff more flexibility over how they spend their healthcare budgets. While that increases choice, it also changes the risk profile of medical schemes. “The average age of medical scheme beneficiaries has increased from around 32 in 2008 to 38 today,” says Mitchelmore. “Young, healthy employees are increasingly looking for cheaper alternatives, leaving medical schemes with an older and more expensive membership base.” Healthcare advice is also moving beyond the workplace. Baars notes that whereas most medical scheme members once joined through their employers, retail advice is becoming increasingly important. Continued on next page