Goals differ in terms of their importance, whether the goal is essential or aspirational in nature, when the money is needed, whether the specifications of the goal are fixed or whether there is some flexibility in the required outcome. The investor’s capacity for risk also differs dependent on their financial circumstances and the consequence an...
What is the ideal investment solution for clients withdrawing an income? There is obviously not a single correct answer to this question, and the most suitable solution or product will depend on what the outcome is that needs to be achieved. Sustaining an inflation adjusted income for as long as possible requires consistent returns above...
Finance Minister Enoch Godongwana delivered a 'good-news' budget on 23 February 2022. Billions of rand in relief for taxpayers; social grant hikes; and no increases in personal income tax, VAT or the general fuel levy, left most consumers optimistic. Government is allocating an average of 59.4% of consolidated non-interest spending over the medium term to...
What do clients really want when they make an investment? Financial advisors often see their primary role as delivering a risk efficient return. This makes the client’s money the focus of advice and sets investment returns as the primary measure of success. Although the importance of returns cannot be argued, the real reason people invest...
Investment advisors have a challenging task. Clients expect advisors to create financial strategies that will help them achieve their goals. However, delivering the desired outcomes is dependent on factors mostly outside of the advisor’s control. The success of the strategy is influenced by the behaviour of the client, whether investment markets will be favourable, and...
Ensure what you offer has value and how you deliver it, is an experience KEY TAKEAWAYS __ Ensure what you deliver offers value (value proposition) and how you deliver it is an experience __ A great client experience doesn’t happen by chance, it needs to be designed __ A great client experience is a...
It surely feels like we are navigating a maze at this stage. Not only the uncertainty around the virus and what the world will look like after this pandemic, but also the uncertainty around markets and how sentiment has largely been driving activity. Adding to this would be the different views and opinions from analysts...
Fund managers often tell us how they try and personalise their funds as this helps them when making certain decisions. They would often think of their grandparents or parents or close family friend and consider how decisions will impact them if they are the holder of the fund. So, when writing this article, we were...
It has been a few months since the income solutions were launched and markets have been brutal. Investors in the new solutions may be worried, and panic when they receive a statement indicating that the investment’s market value has dropped. “How will I be able to sustain my income if my capital is losing value?”...
After the dismal performance of investment markets in 2018, investors cannot be blamed for feeling anxious. We have experienced one of the worst 5-year periods in the local equity market, going back 25 years. At the same time, cash provided investors with a safe return of 6.8% over the last year, and an average return...