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31 March 2018 | www.moneymarketing.co.za
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Growth of blackowned IFA practices key to transformation
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upporting the growth of blackowned, independent financial adviser (IFA) practices is not only a key requirement for achieving meaningful transformation in South Africa’s savings and investment industry, but it is also critically important in helping to address the country’s poor savings rate as well as improve financial literacy. This is according to Leon Campher, CEO of the Association for Savings and Investment South Africa (ASISA).
Over 170 black-owned IFA practices have participated in business development and growth support programmes run by ASISA’s Enterprise and Supplier Development (ESD) Fund over the past three years. The Fund, managed by Edge Growth, was launched in March 2013 and it exists to speed-up job creation by unlocking the growth potential of the country’s small and medium enterprise sector. Campher says the ESD Fund’s black
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IFA Development Programmes, run in partnership with ASISA member companies as well as the Insurance Sector Education and Training Authority (INSETA), aim to accelerate significant transformation in the savings and investment industry by growing black-owned enterprises, creating jobs, and developing skills. “The amount of money that’s gone into the fund from some of ASISA’s members for the development of IFA practices is substantial. There is a strong focus on the training of independent black financial advisers, but it needs to be understood that this is a journey that is going to take time. To ensure deep learning and meaningful development, only a certain number of IFAs can be trained every year.” The ESD fund participating black IFA practices receive business development support over 12 months, which may include upfront diagnosis of constraints to growth, specialist practice development consulting and targeted mentoring and skills development. The following programmes have been successfully completed: • Some 30 black-owned IFA practices are about to graduate from the 12-month ASISA IFA Development Programme launched in collaboration with Allan Gray, Coronation, Investec and Prudential in 2016.
Last year, 33 IFA practices graduated from the first phase of this programme. • In August last year, eight blackowned IFA practices graduated from the Momentum Masibambane Broker Initiative programme, which was delivered by the ASISA ESD Fund in partnership with MMI Holdings. • Also last year, the ASISA ESD Fund completed the Sanlam BlueStar project, which provided practice management training to 88 independent financial planners across seven regions to empower them with practical business knowledge and toolkits in order to develop their businesses. In addition, the Sanlam Catalyst project provided specialist business development support to five black financial planning practices linked to accounting firms. • In 2015, the ASISA ESD fund in partnership with the INSETA developed eight black owned IFA practices around the country over a 12-month period. Following the success of the first INSETA Broker Development Programme, a second programme has just been launched. Continued on page 2
Laurium Flexible Prescient Fund turns 5 The Fund aims to achieve a return of at least 5% above CPI per annum, measured over a rolling 3 year period by investing in a diversified range of local and foreign asset classes.
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Launched 1 February 2013, the Fund is ranked 2/46 funds in the South African Multi Asset Flexible Sector since inception to 31 January 2018, with an annualised return of 15.3% after fees (104.0% cumulative) vs. average peer annualised return of 8.3% (46.0% cumulative). (Source: Morningstar 31/01/2018)
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Laurium is an authorised financial services provider (FSP No 34142).Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). CIS’s are traded at the ruling price and can engage in scrip lending and borrowing. Performance has been calculated on the A1 class using net NAV to NAV numbers with income reinvested.There is no guarantee in respect of capital or returns in a portfolio. For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to www.lauriumcapital.com.