Nr 3 / 2012
67 min vir “Madiba-dag”............................... 2 Change today............................................... 2 Is your business going Viral? ........................ 3 Trustee’s actions scrutinized by the courts ..... 3
Editor/Redakteur: Wallie Krumm Tel: 028 314 0664 E-mail/E-pos email@example.com
PSG Konsult Akademie nou op hoër vlak ....... 4 Using your longevity to your advantage ....... 4
Interview with new deputy CEO
Superbru Competition ................................. 4
FRANCOIS GOUWS As you know Francois joined us from 1 July 2012. At the time his curriculum vitae was distributed but we wanted to discover a little more about him in a short interview: Why did you join PSG Konsult? I have followed the PSG Group from inception and helped to raise the first capital for the firm while I was a stockbroker in 1996. Jaap du Toit, our Chairman, was actually my first boss in stockbroking so I knew both the broader business and the people in it well. I was also specifically impressed with how Willem, you and your colleagues built PSG Konsult into a multifaceted business which has gained an enormous footprint with an impeccable reputation in such short a period of time.
What is the business principle you use most? It's important to closely listen and carefully think about what both staff and clients say but I feel it's often more important to look at what they subsequently actually do.
mance and platform, 2. Providing our clients with a superior international product offering against the backdrop of easing exchange control and 3. To enhance our short-term insurance offering via vertical integration.
Where do you live? I currently live in London but spend two weeks a month in South Africa. The balance of the time I spend in our new PSG Konsult offices in London's Mayfair.
Do you have anything else you want to say? Yes, I firmly believe that each individual at PSG Konsult must feel they have a voice and can continue to help take our firm forward.
How do you spend your time? Many years ago a ski resort manager said to me that she had a simple rule when employing and managing the young seasonaires which helped her in the resort. She said to them: “You can work, you can ski and you can party but you can only survive if you do two of the three.” So I decided there and then to focus on work and my family. What can you tell us about your family? Luckily my family likes to party. What is your favourite gadget? I'm not a fan of gadgets and like to keep things simple.
Francois Gouws with wife, Annalize.
Which businesses in PSG Konsult do you like the most? I like the fact that we have a portfolio of businesses which operate in complementary areas. This allows us to offer multiple products and services to our clients; it reinforces the excellent reputation and brand over a very broad spectrum of clients, and helps us to carry technology and regulatory expenses over a broader base.
What is your favourite book? “Extraordinary popular delusions and the madness of crowds” by Charles Mackay. I read this as a young stockbroker and realised how dangerous, in certain circumstances, consensus can be. What is your favourite saying? “What's the one-liner?” I like presentations that start with conclusions. People who have done their homework can quickly summarise the heart of the issue and then effortlessly drill into the detail. What are the most pressing issues in PSG Konsult? We are currently very focussed on three matters: 1. How to lever our impressive asset management investment perfor-
Kwaliteit in kleiner portefeuljes
PRESTEER Aangesien aandelemakelaars dikwels deur beleggers gevra word of dit sin maak om 'n relatiewe klein bedrag direk in aandele te belê, het ek 'n jaar gelede in ons Nuusbrief sekere aanbevelings in dié verband gemaak. Kortliks het ons gesê die bedrag moet darem sowat R100 000,00 of meer wees. Anders kan die belegger, hoofsaaklik vanweë koste oorwegings, nie sy risiko genoeg versprei nie en sou 'n goeie effektetrust waarskynlik 'n beter opsie wees. Verder het ons aan die hand gedoen dat kleiner portefeuljes beperk moet word tot 'n maksimum van ses aandele in top maatskappye. Ons het vier sulke aandele uit verskillende sektore aanbeveel. Dié aandele was British American Tobacco PLC (“BAT”), Anglo American PLC (“Anglo”), RMB Beherend Bpk (“RMBH”) en Shoprite Groep. Vervolg op bladsy 2
.... Kwaliteit in kleiner portefeuljes presteer
Vervolg vanaf bladsy 1
In hierdie uitgawe kyk ons eerstens hoe so 'n portefeulje sedertdien sou gevaar het. Daarna vra ons of enige veranderinge in hierdie stadium nodig is.
min vir “Madiba-dag”
Ten einde die opbrengs sinvol te takseer, moet 'n paar oorwegings in gedagte gehou word. Selfs al val ons aandeelkeuses in verskillende sektore, hou 'n seleksie van slegs vier aandele heelwat meer risiko in as die meer gediversifiseerde opsies wat effektetrusts en beursverhandelde-fondse bied. 'n Kernvraag is dus of die belegger voldoende beloon is vir die addisionele risiko. Die vier aandele in die portefeulje het onderskeidelik die volgende kapitaalopbrengs oor die termyn gelewer: BAT was 41.7% op, Anglo 14.2% af, RMBH 54.3% op en Shoprite 61.8% op. Ten spyte daarvan dat Anglo se prys laer was, was die kapitaalopbrengs van die portefeulje as 'n geheel 35.9%. Oor dieselfde termyn het die JSE se Algemene Aandele Indeks (“ALSI”) met 21.1% gestyg. Die belegger sou 'n addisionele 3.8% oor die termyn aan dividende verdien het en is dus ryklik beloon vir die addisionele risiko deur die totale portefeuljeopbrengs van 39.7%. Is dit nodig om enige veranderinge aan die portefeulje te oorweeg? Normaalweg sal 'n goeie portefeuljebestuurder nie sommer na so 'n relatiewe kort periode enige veranderinge maak nie. Maar terselfdertyd maak dit dikwels sin om 'n wins te bank na 'n sterk lopie in 'n aandeel se prys. Een van die nadele van 'n kleiner portefeulje is dat dit nie prakties is om wins te neem op 'n gedeelte van 'n spesifieke aandeelhouding nie. By groter portefeuljes is dit makliker en kan die risiko beter bestuur word deur slegs 'n gedeelte van 'n aandeelhouding te verkoop. Met dit in gedagte, sou ons twee maal dink oor enige verandering aan die portefeulje vir bestaande beleggers. Sou ons iets anders vir “nuwe” kontant voorstel? Die besluit om Anglo (R246.00) weer voor te stel, is 'n maklike een. Anglo se verdienste het laasjaar met 23% gestyg en sy dividend met 14%. Ten spyte daarvan, is sy aandeelprys onder druk en bied dit 'n koopgeleentheid. Voorts maak dit sin om blootstelling aan die hulpbronsektor te hê. Die herinsluting van BAT (R443.90) is ook relatief maklik. Ons het voorheen genoem dat BAT wêreldklas handelsmerke besit en dat tabakverkope goed behoort te vaar. Die aandeel is nie meer goedkoop nie, maar bied steeds waarde. Aandeelhouers behoort ook in die komende jaar sowat 4% se dividende te verdien. RMBH en Shoprite was die afgelope jaar onder die uitblinkers op die JSE, maar lyk tans aan die duur kant. Versigtige beleggers kan Remgro en MTN as alternatiewe vir nuwe kontant oorweeg. Remgro (R144.71) bestuur 'n goed gediversifiseerde portefeulje van genoteerde sowel as ongenoteerde aandele, veral in die finansiële sektor (33% van hulle bates) en industriële sektor (53%). Onder meer verkry aandeelhouers blootstelling aan Firstrand, RMBH, Medi-Clinic, Unilever en Distell. MTN (R155.97) bied tans relatiewe goeie waarde. Die sterk groei in nuwe intekenare op selfoondienste, dui op 'n blink toekoms vir die sektor. MTN is 'n leier op die gebied en die keuse word vergemaklik deur 'n beraamde 6% dividendkoers. Hannes Smuts Portefeuljebestuurder PSG Konsult, Hermanus
Suid-Afrika het weer op 18 Julie die geleentheid gehad om 67 minute ter ere van Oud-President Nelson Mandela aan welwillendheidsdade te wy. Baie van ons takkantore het meegemaak hierin. Op Harrismith was dit Wessel Hamman en sy personeel wat pakkies gemaak het met lekkernye vir die minder bevoorregte kinders by Hope House asook by die plaaslike hospitaal. Gepas was die boodskap op die pakkies: Education is the most powerful weapon which you can use to change the world. ~ Nelson Mandela
Change Today! If there is one thing that we need to realise it is that things are not only changing, but the speed and impact of these changes remain on the increase. This year has already seen significant tax changes, but this is just the beginning. In May Treasury announced that it will release four discussion papers this year with regard to legislative changes in the financial services industry that they are considering. The first paper published dealt with changes to retirement funds and life annuities, some of which might have far reaching consequences for the intermediary. With other pieces of legislation like the Consumer Protection Act and Treating Customers Fairly legislation that is being developed, the biggest mistake we can make is to continue to do things the same as we did last year. Not only are these changes increasing the cost of doing business, most of which is absorbed by PSG Konsult, but the fees itself will be coming under attack as well. We will have to think smarter, think faster and be more efficient. We will also need to communicate better. With the recent crash of Abante Capital, the value of a true financial planner has again been brought to the fore. But the news out there will always be negative
towards the financial planner. If you do not ensure that the client knows what is planned for him and if he is not part of the decision making process, you will be sure to lose him as a client. If you do not want to be replaced by a call centre, you will need to use your best weapon to your advantage. If all that you send your client is his financial statements, you are not adding value. A relationship is built by providing more than just advice. So what about inviting you clients out to popcorn at the movies when the next blockbuster is showing, or just do something different! To survive, we will need to continue to provide the best advice, we will have to have a unique offering where we own the relationship, we will have to communicate, we will have to be different, we will have to be human. So if you are sitting there thinking everything in my office is fine, I am not going to change, remember somewhere, a long time ago, a dinosaur said the same. Ronald King CE: Business Development Johannesburg
Is your business going VIRAL? In today's technological landscape the idea of a viral campaign is the proverbial pot of gold at the end of the rainbow. But we forget that the end goal of spreading a message via word of mouth is the route of virility, and has been around since long before the emergence of the now 21 year old internet. Although the tools that enable us to provide financial advice have made our jobs much easier in the epoch of this digital age, the crux of advice remains a face to face model. So how do we integrate viral thinking with a face to face offering? Well that's the easy part – all you need to do is get your clients talking about you to the networks that they influence. The tougher part is giving them a reason to give you a share of their voice… PSG Online has developed a tool to help you get your clients talking about you, and even introducing their friends and family to you! The Investment Club Starter Pack (you can download it at http://www.psgonline.co.za/docs/PSGOnline_Introduction_ to_Investment_Clubs.pdf) provides a reason for clients to get a group together with the intention of investing as a club or partnership. That is the ideal time for you to make your move. So why would clients look at this as a strategy towards wealth creation? Several benefits underpin the advantages of investment clubs. The most obvious case is that the fees are split over a bigger pool of funds so the investment does not need to work as hard to provide a satisfactory return on investment. Other important factors include the fact that members can split the responsibility of researching shares or funds, so each member is exposed to a decision making process that is much more in depth than what could be achieved on their own; as well as the obvious social interaction that comes with joining any sort of club.
By facilitating the first meeting of potential investment club members, not only will you improve your relationship with existing clients, but will show them that you are dedicated to enriching the lives of their network, and that is added value that one cannot put a price on. This is also the perfect time to get to know the individuals of the group that you are not familiar with. Some of them will join an investment club and some will discover a renewed vigour to trade and invest on their own all of which you can facilitate. From creating or joining an investment club through to the process your clients should follow in order to invite new members, hold meetings, decide on the contribution amounts, allocate responsibilities, and even the tax implications of being a member of an investment club; this comprehensive guide to investment clubs even provides templates for membership agreements, operating procedures and much more. Compiled by PSG Online's Head of Client Education, Shaun van den Berg has spent years refining the starter pack which is available for you to download and share freely with your clients. In fact the only thing left for you to do is meet your new prospective clients, and their friends, and their friend's friends. Making use of this tool is the perfect way to grow your book with minimal effort, because you'll be getting your clients to advocate your services. Darren Cohen Marketing Executive PSG Online Johannesburg
Trustee's actions scrutinized by the courts In a recent decision handed down in the Western Cape High Court of South Africa, the onerous duties attached to the office of trustee were once again the focal point of an application brought by a disgruntled beneficiary of a trust. The trust in question was set up a number of years ago during divorce proceedings for the benefit of a handicapped child of the divorcing parties. One of the trustees, and the father of the trust beneficiary, entered into an agreement with the other trustees to amend the trust to enable him to loan money from the trust fund without any security being offered or required by the trustees. An urgent application was lodged to prevent the trustees from amending the trust without the consent of the beneficiary or to pay the quantum of the loan in question, to the trustee. Further relief sought included the removal of the
trustees from office. The court found that the trustees dealt with the trust assets as if it belonged to them. Trust assets were used to finance various business ventures of one of the trustees without any security for the repayment thereof. On the question of the trustee's administration of the trust, the Judge emphasized that “....trustees must behave with the care and trust inherent in the office. The handling of the trust assets by the trustee on his own admission displays the contrary. The trustee's conduct warrants his removal as a trustee” The most recent focus on trusts is aimed at ensuring that trusts are used correctly and for the initially intended purpose. Trustees are advised to read through trust deeds to determine what they
may or may not do in relation to the administration of the trust fund. They need to ensure that they understand the provisions of the trusts that they manage and understand why the client who transfers assets in trust, need to sacrifice control over the assets in the trust and what that actually means. The office of trustee comes with a great deal of responsibility and the dereliction of that duty carries with it personal liability. The current legal system is unfortunately unable to ensure compliance with the many duties and responsibilities attached to the office of trustee. Stringent compliance is on t h e cards and the appointment of a professional trustee will become the norm.
Willie Fourie CEO, PSG Konsult Trust Tyger Valley
PSG KONSULT AKADEMIE NOU OP HOËR VLAK PSG Konsult Akademie is tans een van twee hoër onderwysen opleidingsinstansies in Suid-Afrika, wat geregistreer is by die Department Hoër Onderwys en Opleiding en NQF6 Finansiële Beplanning as vakrigting aanbied. Dié kwalifikasie verleen toegang tot studies aan verskeie universiteite wat óf 'n Nagraadse Diploma in Finansiële Beplanning óf 'n B.Com (Finansiële Beplanning)-kwalifikasie aanbied, wat die graduand in staat stel om na goedkeuring deur die FPI, die gesogte en internasionaal erkende CFP®-titel te mag gebruik. In 2008, met die wysiging van die Hoër Onderwys Wet, het die Akademie besef dat die registrasie as hoër onderwys instelling onafwendbaar was om die voortbestaan as 'n opleidingsinstansie te verseker, aangesien die aanbieding van die NQF-6 Finansiële Beplanning-kwalifikasie in gedrang kon kom. Tans mag slegs private onderriginstellings wat gereigistreer is by die Department van Onderwys en Opleiding en waarvan die programme by die Raad vir Hoër Opleiding geakkrediteer is, kwalifikasies op NQF510 aanbied. PSG Konsult Akademie het in 2011 dié eer te beurt geval en is ons trots om te kan sê dat ons die kwalifikasies, Gevorderde Sertifikaat in Finansiële Beplanning: NQF6 en die Hoër Sertifikaat: Welvaartbestuur: NQF5, mag aanbied. Carl Anshutz van die Universiteit van Johannesburg, het per geleentheid sy lof uitgespreek vir die gehalte student wat PSG Konsult Akademie oplewer en dat ons studente die B.Com-kwalifikasie in Finansiële Bestuur wat hulle aanbied, maklik bemeester. Ook Shirley Hyland van die Universiteit van die Vrystaat het soortgelyke terugvoer gelewer.
SuperBru competition s Congrattoulation for winning the
PSG Konsult SuperBru rugby competition. Adriaan has walked away with a 'One‐touch Gold' Weber Braai with all trimmings.
Thank you all for playing! 4
PSG Akademie is ook deur die FPI goedgekeur as 'n voorkeur opleidingsverskaffer en ons programme is geakkrediteer deur die Raad op Finansiële Dienste. Verder is ons is tans in die proses om die NQF5 Welvaartbestuur-kwalifikasie te belyn en sodra dit gefinaliseer is, sal ons aansoek doen vir vrystelling van vlak twee, regulatoriese eksamens vir kategorie A, B1, B2, C, Pensioenfondse en Kollektiewe Beleggings. Die Akademie bied verskeie ander kwalifikasies aan en meer inligting is beskikbaar in die PSG Konsult Akademie Prospektus wat beskikbaar is by: http://www.psgkonsult.co.za/affiliates/academy.php. Ons het tans ± 935 ingeskrewe studente op die verskeie programme wat ons aanbied. Nou is dit jou beurt om te registreer vir die 2013inname, sodat jy ook een van 'n uitgelese groep graduandi kan word. Kobus Serfontein Hoof: Menslike Hulpbronne Tygervallei
Using your longevity to your advantage It is a well-known fact that South Africa is amidst a severe pension funding crisis. Earlier this year, the Association for Savings and Investments South Africa (ASISA) stated that research has shown that a mere 6% of South African retirees can afford to retire comfortably. This problem is further accentuated by the increased longevity experienced worldwide. It may seem strange that living longer could be problematic, but it is a very real problem that most investors are at risk of outliving their capital. Fortunately there are some remedies. Saving from an earlier age, saving more and more frequently, saving for longer, and curbing post-retirement income withdrawals are just some of strategies that may be used to accumulate more capital and make it last for longer. An additional strategy is to invest smartly. The upside to longevity is that the investor has an increased investment horizon. This is invaluable time in which to grow capital. The increase in available time enhances the investor's risk budget which creates room for the use of high growth assets like equities, if he/she can stomach the short term volatility. It has been known for some time now that, over the long term, investors with greater risk budgets will outperform investors with more conservative risk budgets. With the
increased longevity this consideration has become more important than ever before. Investors should also be encouraged to be mindful of the trade-off dynamics. It is not merely a risk and return trade-off. There also exist trade-offs between risk and the investors savings liability. If the investor is hesitant to accept short term volatility, the return won't be the only trade-off. A too conservative profile will affect the planned retirement age and an investor may have to work an additional 5 to 15 years depending on his/her investment strategy. Outliving the available capital is a potential trade-off for reduced volatility: A low volatility portfolio could be the result of a too conservative strategy which increases the risk of outliving the available capital and vice versa. From the above it should be clear that the appropriate financial planning and investment advice is crucial. For this reason we believe that industry financial planners with strategic associations to investment experts are the most favourably positioned to provide their clients with the best possible advice.
Adriaan Pask Asset Management Johannesburg
PSG Konsult newsletter for September