MoneyMarketing April 2026

30 APRIL 2026

R69.95 INCL VAT

WHAT’S INSIDE YOUR APRIL ISSUE:

LIFE ANNUITIES

They provide guaranteed lifetime income and stability for retirement planning. So why do clients still find life annuities confusing?

Cover story + pg24-27

TRANSFORMATION IN THE ASSET MANAGEMENT INDUSTRY

Inclusion, innovation, accountability and broader economic participation are essential for real transformation. Some industry players reveal their thoughts.

Pg 6-7

FINANCIAL FREEDOM

It’s essential for South Africans to build secure, independent futures. We investigate some areas where clients can find financial freedom.

Pg8-9

FINANCIAL MANAGERS AND AI

While AI is reshaping advisers’ workflows, enhancing efficiency and compliance, it can’t replace personal engagement.

Pg10-14

AWARDS

We reflect on the recent industry awards, and celebrate the winners.

Pg15-19

CRYPTOCURRENCY

An update on all things crypto, from new products to market volatility, regulation, education and adoption strategies.

Pg28-30

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Why life annuities need a fresh conversation

By Sandy Welch Editor MoneyMarketing

Retirement planning changes along with the markets, legislation and new product design, but one truth has never changed: retirees need income security that will last for the rest of their lives. In a climate marked by geopolitical tension, volatile market swings and shifting interest rates, this need has only become more pronounced. For financial advisers, helping clients navigate that uncertainty requires a calm, evidence-based approach, especially when emotions rise alongside market noise.

That foundation of income certainty is exactly where Deane Moore, CEO of Just SA, begins. “Pensioners need income security for their life… to cover the essential expenses,” he notes. “The discretionary spend is something else, but they need to be able to cover the essential spend.” And the most cost-effective way to secure that essential income, he argues, remains the traditional life annuity. Through the power of pooling longevity risk within insurers such as Just SA, retirees effectively access income priced on the average lifespan of a community rather than the uncertainty of their individual lifetimes. “If you say, I’m an island and I’m going to look after myself, you can’t count on dying in your mid-80s,” Moore explains. “You need to make sure you’ve got money to live to your mid-90s or even 100.”

Yet, today’s retirees are confronting a very different environment. Balanced funds delivered two consecutive years of more than 20% returns, and then lost 10% in the first two weeks of March as war broke out in the Middle East. Long-term interest rates fell 4,5% over 2024/25, then rose 1% in a short space of time in March 2026. South Africa’s inflation rate fell to 3%, but is expected to rise above 3,5% with higher oil prices. When market performance is strong and annuity rates reduce, clients become unsure about the right time to secure guaranteed income. Many, understandably, wonder whether a lower annuity rate means they have ‘missed the moment’. Moore encourages advisers to shift that perspective. Retirees, he says, should focus on the overall income they can secure, not the rate in isolation. “People think they need to try and time this perfectly,” he explains. “But the amount of guaranteed income you can buy is far more stable than the markets. It drifts up and down, it doesn’t crash 20% overnight.” Usually, when markets rally and asset values increase, long-term interest rates fall and the cost of buying guaranteed

income rises. Over time, these effects largely offset each other. The result for clients invested in a balanced fund is the amount of guaranteed income they can purchase with their available assets remains far steadier than most investors realise.

This perspective becomes even more important during periods of global uncertainty. “Bank the rally,” Moore advises. “Don’t ride the rollercoaster. You certainly don’t want geopolitics to define your retirement.” The point is not political, it is practical. Letting short-term volatility steer long-term financial decisions has repeatedly led investors astray.

For Moore, one message should anchor every adviser-client conversation: the value of guaranteed income has not changed. Peace of mind still matters. Securing the portion of income needed for essential expenses remains the most prudent path, regardless of market cycles. And for retirees, that peace of mind is worth more than another year of unpredictable market returns.

Blending, behaviour and the new frontier

If the first major shift in the annuity market was the growing availability of with-profit annuities, and the second was underwriting for enhanced income, the third, and perhaps most transformative, has been the arrival of blending. Introduced around 2017, blended strategies allow retirees to hold both a life annuity and a living annuity within a single structure. For advisers, this began opening doors that simply did not exist a decade ago.

Continued from previous page

Blending has not yet reached its full potential. Many advisers are still exploring how far they can push the mix: how much security can be delivered through the life annuity portion, and how much growth can come from the living annuity portion? Even now, the industry is in an early phase of experimentation. But what’s clear is that blending removes the all-ornothing pressure from the retirement decision. Clients no longer need to commit exclusively to one path at the point of retirement – they can adapt their structure over time.

This flexibility is only growing. As Moore notes, innovation continues to unlock new levers for advisers to use when tailoring retirement plans. He describes longevity itself as a form of ‘investment return’ – the longer a person lives, the more valuable the guaranteed income from a life annuity becomes. This fundamental truth opens space for more creative structuring by astute advisers.

“For retirees who are anxious about sharp drawdowns but not yet ready to leave the market, this annuity structure delivers both participation and protection”

One example of innovation is the JuLI Advance product, launched to take advantage of a specific market anomaly. By capping future investment returns at a high level – a smoothed average 15% per annum over six years – it enables significantly higher starting incomes on with-profit annuities. For most retirees, achieving a 15% annualised return for six consecutive years would feel more than satisfactory; the cap therefore sits well above realistic long-term expectations. While interest rates and market conditions influence how attractive such innovations appear at any given moment, advisers are increasingly looking at with-profit annuities to maintain market exposure while securing a guarantee that income can never reduce.

The timing trap

Of all the considerations that shape an annuity decision, timing is often the most misunderstood. Clients tend to believe there is a ‘right moment’ to secure a guaranteed income – typically when rates appear high. But Moore cautions that timing often distracts both clients and advisers from the real question: what does the client need? If a retiree wants to remain invested in markets because they believe growth will continue, even if they fear imminent downside, a with-profit annuity can be an elegant bridge.

It keeps them invested in balanced funds, while placing a floor under their income. That floor never moves down, and income increases continue to follow the performance of the underlying balanced portfolios, with smoothing to dampen volatility. For retirees who are anxious about sharp drawdowns but not yet ready to leave the market, this annuity structure delivers both participation and protection.

A common misconception is that buying a life annuity forces a retiree into government bonds. That isn’t true. With-profit annuities, especially, allow clients to retain equity exposure without the risk of declining income. In this way, the products remove an entire layer of stress, particularly during periods of global tension or uncertainty.

Rethinking legacy

Legacy planning presents another persistent misunderstanding. Many clients assume life annuities eliminate the possibility of leaving anything to dependants. Moore is quick to counter this. A life annuity provides an income legacy that can be fully tailored. Clients can add a spouse or second life benefit at any level (from full continuation to a reduced percentage), protect dependent children for a specified minimum period, and shape the flow of income to mirror their family’s financial needs. A living annuity, by contrast, passes on capital rather than income. Both forms of legacy have value, and many retirees will need both.

Blending again becomes the natural solution: secure essential and dependent-related income through a life annuity component, while preserving capital in the living annuity portion for intergenerational transfer.

Dispelling harmful myths

Two key misconceptions often derail sound retirement decisions. The first is the belief that when it comes to life annuities, the insurer ‘keeps the money’ if a retiree dies early. In reality, this is the very mechanism that allows annuity income to remain sustainable for others in the pool. The second misconception is that delaying a life annuity guarantees a better outcome because the annuity rate rises with age. While the rate does rise, the income forgone in the interim typically outweighs any perceived benefit from delaying. Moore notes that analyses show retirees in their 60s are better off in roughly 80–90% of cases when they purchase earlier rather than waiting five years.

Looking ahead

Market cycles come and go, political winds shift, and global tensions ebb and rise. What does not change is the underlying need, and that's secure income for life. Moore believes this should remain the anchor point for advisers in any environment. When markets run hot, discussions about guaranteed income often fall from prominence – yet, these are precisely the times when retirees should pay the most attention.

ED'S LETTER

As we move into the second quarter of the year, the April issue focuses primarily on something I feel will be relevant for a lot of people right now: navigating certainty in uncertain times. I’m sure most advisers have realised that in 2026, clients are looking for clear, firm guidance that anchors them.

Our cover story focuses on life annuities, uncovering how in a world where longevity risk is no longer theoretical, guaranteed income is becoming a far more prominent part of holistic planning. Alongside that, to celebrate Freedom Day this month, we explore the meaning of financial freedom, and how it needs to be a strategy shaped by behaviour, structure and long-term discipline.

Transformation in the asset-management industry continues to be a defining conversation, and we examine where progress is real and how the profession can push further. We also unpack the growing influence of AI in advice practices. Most of the experts we spoke to pointed out it’s important to see it not as a threat, but as a tool that can enhance efficiency and sharpen client engagement.

Our awards coverage celebrates the individuals and institutions raising the bar in financial services, reminding us that excellence still matters. And finally, we tackle the alwayslively world of cryptocurrency, exploring what advisers really need to know as digital assets mature.

It’s a full, future-focused issue – and we hope it equips you for the conversations that matter most.

Stay financially savvy,

Sandy Welch Editor, MoneyMarketing

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“Peace of mind,” he says, “is what doesn’t change.” Securing that certainty allows retirees to read the news with interest, not anxiety. And in a world where unpredictability seems increasingly normal, that security may be the most valuable return of all.

Michele Jennings CE of glu

Can you tell us a bit about your career journey? What inspired you to go into the finance services sector?

Working full-time during my second year of university to overcome financial constraints taught me early discipline, resilience and independence. Post-graduation, I worked across the industrial, retail and IT sectors before joining a major insurer for an ERP implementation. The sheer scale – financials rounded to billions and client bases in the hundreds of thousands – presented challenges that excited me then and still do today. I leveraged available study opportunities to qualify as a Chartered Accountant, completing my articles through Training Outside of Public Practice. This broad exposure across business lines built the financial management expertise and confidence I needed to lead entire business units.

Tell us a bit about your experience of being Chief Executive of glu and your overall philosophy or approach to insurance.

After many rewarding years in financial services, I sought a specific challenge. The strategy for glu, combined with the PPS ethos of Mutuality, aligned perfectly with my goals and values. As a truly purpose-driven mutual, our clients’ needs remain core to our decision to build straightforward, comprehensive solutions. We deliver these through a seamless digital experience, a philosophy we call “digital with heart”.

What do you believe is the single most important quality you possess that helps you to do your job?

A relentless solutions mindset. I genuinely believe most problems are solvable if you stay in it long enough, ask the right questions, and keep moving. That sheer grit creates momentum, which is essential when you’re building and scaling a business. I also think that is why I enjoy endurance sports, because I view obstacles as challenges, not end-points.

In your view, what are the biggest trends currently shaping the insurance landscape in South Africa?

AI is undoubtedly the most prevalent topic that I see at conferences, strategic sessions and even on our operational agendas. As a result of its rapid development, AI brings incredible opportunities as well as risks to insurers. The regulatory, technological, and demographic

challenges that intermediaries are also facing are resulting in consolidation of distribution capabilities, which could impact the traditional insurer and intermediary engagement models.

What are some of the biggest challenges facing those in the insurance industry, and what opportunities do you see emerging in the next few years?

We’re all navigating a tough economic climate, with affordability pressures driving high policy lapse rates across sectors. While insurers aren’t immune to rising costs, this creates an opportunity to use technology to simplify journeys, reduce admin and free people for higher-value work. Combining strong digital execution with trusted human support will be key to success. At the same time, rising demand for technical skills is introducing new challenges around talent availability and sustainability.

How do you see technology, from AI to digital client platforms, transforming the client experience and the day-to-day work of advisers?

Client expectations have shifted fundamentally. Driven by AI and instant information, customers now demand faster answers, transparency and seamless digital experiences that rival the best global platforms. For advisers, technology removes friction by streamlining admin and surfacing insights that ensure compliance. Our goal is to empower advisers to maintain deep trust through consistent service. When done effectively, digitisation lets the human element shine when it matters most, providing support during claims and other high-emotion moments.

What role has education and continuous professional development played in your career?

Furthering my education was a pivotal career moment. Qualifying as a Chartered Accountant after several years in the workforce fundamentally accelerated my trajectory – a powerful reminder of how education expands both options and growth. I’m grateful to the organisations that invested in my development through structured training and leadership programmes that broadened my perspective beyond finance. Continuous

development remains essential as regulations, technology and customer expectations constantly change.

What advice would you give to those hoping to enter the financial services industry, so that they can build a meaningful and sustainable career?

Find an experienced mentor to help test your expectations against reality, navigating the industry’s vast landscape to find a path aligned with your strengths and values. Second, be intentional about visibility. Whether in-office or hybrid, avoid being just a name on a screen. Build credibility through active presence, contribution, and reliable followthrough. Third, raise your hand for stretch opportunities. Volunteering beyond your core role builds business acumen, connects you with key influencers, and helps you discover your niche.

What expectations do you have for 2026, and what are your goals or aspirations going forward?

glu marked its first year in market this January, a period spent testing market fit, refining systems, and ensuring the right team is in place. With this foundation, 2026 is about scaling growth through stronger distribution and enhanced customer experiences. We aspire to be the Financial Bestie that brings Mutuality to more South Africans. We are committed to insurance that is simpler, digital yet human, and engaging at every stage of the financial journey.

What are some of the best books on finance/ investing you have ever read, and why would you recommend them?

I focus on leadership literature, particularly Jim Collins’ Good to Great. Its principle of placing the right people in the right roles is critical to our startup success. Another resonant title is Strengths Based Leadership by Tom Rath and Barry Conchie. It emphasises that understanding your own strengths, and building teams with complementary ones, secures a better future for both people and businesses. Both books reinforce my belief that sustainable success stems from clarity of purpose and investing in people.

What advisers must know about the tax shift

By Sandy Welch Editor MoneyMarketing

South Africa’s Budget 2026 has ushered in one of the most significant waves of tax adjustments in more than a decade. For financial advisers, these shifts carry implications that extend far beyond simple compliance. The message is unambiguous: 2026 is the year to reaudit every client’s plan. From estate structures, higher donations tax thresholds to changes in capital gains tax exclusions and trust funding, to retirement strategies and long-term savings assumptions, the cumulative effect of these amendments demands renewed attention.

According to Ronald King, Head of Regulatory Affairs at PSG Wealth, the scope of the changes caught even seasoned practitioners by surprise.

“Some of these limits haven’t changed since 2002,” he explains. “When the facts change, the financial plan must change. A plan that worked even two years ago may now be misaligned with the current tax environment.”

Capital gains increase significant King believes the updates reflect a long-overdue recalibration. For example, the increase in the annual capital gains exclusion from R40 000 to R50 000, while appearing modest, has meaningful practical implications.

Advisers dealing with estate planning often face significant liquidity constraints, especially in estates laden with property or share portfolios. “Liquidity is still one of the biggest pressure points in deceased estates,” he says. “When taxes, executor fees and capital gains are all added together, they can absorb as much as a third of the estate’s value. Any relief on the capital gains side gives advisers more breathing room.”

The rise in the death exclusion to R440 000 further strengthens that position. It allows advisers greater latitude in determining which assets should be liquidated and which might be rolled over to a surviving spouse. The increased threshold also improves the ability to structure estates in a way that preserves generational wealth rather than forcing unnecessary asset disposals. “We finally have some room to manoeuvre when it comes to managing tax leakage at death,” King says.

The impact of donations tax changes

Perhaps even more consequential for advisers is the increase in donations tax exemptions. These ceilings have long influenced how trusts are capitalised, how inter-spousal planning is approached, and how legacy structures are maintained. King notes that many clients rely on annual donations to reduce loan accounts attached to trusts or to bolster trust liquidity. “A lot of families use donations as a tool to gradually shift value to the next generation,” he says. “Changes to these exemptions should prompt advisers to revisit those structures sooner rather than later.”

“There’s a lot here clients need to understand. And advisers need to be the ones guiding them”

Retirement and savings reforms also feature prominently in this year’s adjustments, requiring fresh technical analysis. While some proposals are still out for consultation, King emphasises that advisers cannot afford a wait-and-see approach. “The environment is shifting,” he cautions. “It’s not enough to react once new rules are enacted. Advisers should already be reviewing assumptions, client objectives and long-term projections.”

How estates can benefit

An important area that continues to cause confusion among clients is the treatment of various investment vehicles at death. King says that while retirement annuities fall outside the estate for estate duty purposes, tax-free savings accounts (TFSAs) do not. “The tax-free savings account forms part of the estate; the retirement annuity does not,” he explains. “It’s a simple distinction, but one many clients misunderstand and that’s why getting proper advice is so essential.”

Although this distinction is not new or unique to the latest Budget, King believes it highlights a broader point: advisers must ensure clients are not operating under outdated assumptions. “Sometimes it’s the basics that advisers aren’t

communicating clearly,” he notes. “That’s where your good adviser and your average adviser really start to separate – in how well they guide clients on fundamentals.”

A more directly Budget-related change is the increase in the maximum deductible retirement annuity (RA) contribution, rising from R350 000 to R430 000. The percentage limit remains the same at 27.5% of taxable income, but the cap now accommodates higher earners more effectively. “In the past, someone earning R1,8m could contribute 27.5%, but the tax deduction would stop at R350 000,” King explains. “Now the cap is R430 000 – a significant jump. A client contributing an extra R80 000 could save R36 000 in tax. That’s meaningful.”

The change also counters a growing public narrative that higher-income earners should not benefit from retirement incentives. King views the adjustment as a strong signal: “There’s been a lot of noise saying wealthy people will save anyway, so they shouldn’t get the tax break. This increase shows that National Treasury doesn’t agree and that’s a positive message.”

Collective investment schemes

Another major development on the regulatory front involves collective investment schemes (CIS). For nearly two years, SARS explored taxing certain CIS transactions as revenue rather than capital gains, a move that could have resulted in a punitive 45% tax rate for some funds. “There were schemes buying in the morning and selling that afternoon,” King says. “Legally, SARS had a point but taxing everything at 45% would have wiped out half the gains in many funds.”

Industry engagement on Treasury committees ultimately shifted the outcome. Treasury has now indicated that all CIS gains will be taxed as capital, regardless of holding period. “It’s a very positive step,” King says. “Treasury listened, understood the unintended consequences, and adjusted course. That’s good for the industry and good for the economy.”

As advisers absorb these developments, King emphasises that their role is more critical than ever. “There’s a lot here clients need to understand,” he says. “And advisers need to be the ones guiding them.”

EARN YOUR CPD POINTS

The FPI recognises the quality of the content of MoneyMarketing’s April 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

By Zaid Paruk CA (SA) CIO and Founder of Wealthvest Investment Management

STransformation in asset management will be decided by capital allocation

outh Africa’s asset management industry is entering a decisive phase of transformation. For years, the conversation has largely been framed through regulatory compliance, scorecards and procurement frameworks. While these mechanisms have created accountability, they have not always translated into meaningful structural change.

The next phase of transformation will look very different. It will be shaped less by policy frameworks and more by how capital is actually allocated – and who is entrusted to manage it.

Ownership, leadership, enterprise development and inclusive capital allocation are increasingly influencing how asset allocators evaluate asset management partners.

A legacy industry at an inflection point

South Africa’s asset management industry has deep roots. Many of today’s largest firms were built in the 1990s and early 2000s, emerging alongside the country’s reintegration into global financial markets.

Over time, the industry has grown significantly in scale and sophistication. The collective investment scheme industry alone now manages close to R3.5tn, reflecting steady inflows and market growth despite economic volatility.

Yet, alongside this growth, the industry has remained relatively concentrated. The top 10 asset managers still control more than 60% of total assets, reinforcing the dominance of established players. At the same time, there are over 400 asset management firms operating in South Africa, many of which are small or emerging managers competing for a limited pool of institutional and retail capital.

This creates a paradox: a large and growing industry, but one where meaningful participation remains concentrated.

The generational shift: Founders and succession

Another structural shift now underway is generational. Many of the founders who built South Africa’s leading asset management firms are approaching retirement or transitioning out of day-to-day leadership roles. This creates both risk and opportunity.

On the one hand, succession challenges can lead to consolidation, cultural drift or a loss of investment identity. On the other, it opens the door for new leadership, new firms and new approaches to emerge.

Historically, asset management businesses in South Africa have been defined by strong founder-led cultures, often with a clear investment philosophy and long-term orientation. As these founders step back,

the industry faces a key question: will the next generation of leadership reflect the same diversity challenges of the past, or will this moment catalyse a more inclusive and representative industry?

This generational transition may ultimately prove to be one of the most important drivers of transformation over the next decade.

The gatekeeper challenge

One of the most important forces shaping the industry today is the role played by asset allocators. Multi-managers, consultants and discretionary fund managers increasingly act as gatekeepers between asset managers and institutional capital. Their decisions ultimately determine which firms scale and which remain on the margins.

While many allocators have made strong public commitments to transformation, the pace of change suggests that these commitments have not always translated into capital allocation decisions.

Emerging managers continue to face structural barriers – including stringent track record requirements and operational hurdles – that favour incumbents. “Transformation in asset management will not be determined by policy frameworks alone. Ultimately, it will be determined by who asset allocators are willing to back with capital.”

This reality places significant responsibility on pension funds. As the ultimate asset owners, they have the ability to influence allocator behaviour and accelerate industry change. Without this pressure, transformation risks remaining a stated objective rather than a realised outcome.

Transformation and investment outcomes

A persistent misconception within investment circles is that transformation and performance are competing priorities. In reality, a more diverse asset management ecosystem can strengthen long-term investment outcomes.

Different perspectives and investment approaches can enhance decision-making, improve risk management, and lead to more robust portfolio construction. In increasingly complex markets, relying on a narrow set of investment viewpoints may itself become a risk.

Emerging managers also bring entrepreneurial agility and focus. Without the constraints of large organisations, they are often able to pursue niche opportunities and build differentiated strategies.

For advisers and wealth managers, this creates an opportunity to access a broader set of investment capabilities, provided they are willing to look beyond traditional incumbents.

Expanding the ecosystem: Women and youth

If transformation is to be meaningful, it must extend beyond ownership statistics and into the expansion of the investment ecosystem itself. Women remain underrepresented in senior investment roles across the industry. Increasing the number of womenled firms and investment teams is both a transformation imperative and a strategic opportunity to deepen the talent pool.

At the same time, South Africa’s youth unemployment crisis presents a compelling case for the industry to do more. Asset management is a knowledge-based industry with relatively low barriers to entry from a capital perspective – yet access to funding, mentorship and distribution remains a significant constraint.

Supporting youth-led firms, incubators and mentorship programmes could meaningfully expand the number of investment businesses in the market. This would not only support economic inclusion but also introduce new thinking into the industry.

Product innovation and inclusive capital allocation

Transformation is also influencing how investment products are designed and how capital is deployed. There is growing interest in strategies that combine financial returns with broader economic participation. Inclusive capital allocation, directing investment towards sectors and businesses that support growth and job creation, is gaining traction.

This is not about sacrificing returns. Rather, it reflects a recognition that longterm investment performance is closely linked to the health and inclusivity of the broader economy. Asset managers that align investment capability with these broader objectives are likely to be better positioned in an evolving market.

Looking ahead

South Africa’s asset management industry stands at an inflection point. Structural change, generational transition and regulatory pressure are converging at a time when the industry must decide what it wants to become.

Asset allocators must recognise their role in shaping the future of the market. Pension funds must continue to demand progress. And asset managers must demonstrate that transformation and investment excellence can go hand in hand.

Ultimately, the future of asset management in South Africa will not be defined only by the size of its assets, but by who is given the opportunity to manage them.

Building an inclusive future for SA’s investment industry

By Sandy Welch Editor MoneyMarketing

South Africa’s asset management industry has undergone notable transformation over the past decade, but leaders in the sector emphasise that the work is far from complete. The industry has made measurable strides in broadening ownership, increasing enterprise development support, and improving representation of black investment professionals. Yet the long-term project of building a truly inclusive, competitive financial ecosystem continues to demand structural change, long-term commitment, and meaningful investment in people.

Few firms embody this commitment more than Argon Asset Management, one of the country’s largest black-owned asset managers. Its Chief Executive Officer, Dr Manas Bapela, believes the most significant progress made to date lies in the shift in mindset across the industry.

“We’re seeing a growing acknowledgement that transformation is central to the sustainability of South Africa’s financial system,” he says. “Real transformation is about who gets to participate, who gains investment expertise, and who ultimately makes decisions about the country’s capital.”

Progress, but not yet equity

Over the past decade, the industry has seen the rise of more black-owned and majority-black asset managers, increased support through enterprise and supplier development initiatives, and more investment in developing young professionals. Professional bodies and asset owners have also sharpened their focus on diversity, equity and inclusion.

Yet the gap between intention and outcome remains. Black professionals are still underrepresented at senior levels, and most assets under management continue to be concentrated among large incumbents. “Transformation has momentum, but it is a long-term journey,” says Dr Bapela. “We celebrate the progress, but we are honest about the challenges. Ownership is only one part of the story. The real measure is whether black professionals have the opportunity to gain investment expertise, lead portfolios, influence decisions and build sustainable investment businesses.”

Argon’s own efforts were recently recognised when the firm received the 27four Diversity, Equity and Inclusion Leadership

Award for 2025 in the R30–R100bn assets under management category. For Dr Bapela, the recognition affirms the company’s long-standing philosophy: “Transformation and investment excellence are not mutually exclusive. In fact, they strengthen each other.”

Breaking down barriers

The barriers facing emerging and blackowned managers are well known: limited access to institutional mandates, fee compression, industry consolidation and the heavy cost of technology and research infrastructure. While regulatory frameworks such as the Financial Sector Code have helped open doors, Dr Bapela notes that structural challenges persist.

“The investment industry is increasingly technology driven. To compete, firms need sophisticated research, data architecture and artificial intelligence tools. Smaller managers must make these investments long before they have the scale to absorb the costs,” he explains. This dynamic often disadvantages new entrants, who must perform at the same level as established global players while building capability from the ground up.

Capital allocation remains central to solving this problem. “If we want emerging managers to succeed, capital must flow toward them in a meaningful and sustainable way,” Dr Bapela says. “Transformation requires an ecosystem approach that includes mandates, mentorship, skills development and longterm partnerships.”

Argon’s defined role

As a black-owned and managed firm, Argon sees its responsibility as extending beyond its own business model. Its longterm strategy is built around developing talent, strengthening governance, and creating pathways for underrepresented groups across the investment value chain, including women and professionals living with disabilities. “Our values – rigour, accountability, dependability and Ubuntu – shape the culture we are building,” says Dr Bapela. “We want to show that a transformed firm can deliver world-class investment outcomes while contributing to the broader health and inclusivity of the sector.”

A cornerstone of this approach is Argon’s Graduate Investment Trainee Programme, which focuses on identifying high-potential candidates from historically disadvantaged

backgrounds and equipping them with technical training, mentorship and exposure to the full investment process.

“Building our own pipeline is essential,” he says. “Competition for experienced black professionals, especially black women, is intense. If we do not grow talent ourselves, we are unlikely to shift senior-level representation meaningfully.”

Strengthening the talent pipeline

The biggest gap in the industry, which is senior, diverse investment talent, can’t be solved simply by recruiting existing professionals. It requires long-term investment in training, mentorship, and hands-on experience. Dr Bapela believes the industry must also widen its lens.

“People living with disabilities remain significantly underrepresented in financial services. Meaningful transformation requires that we create opportunities across all dimensions of diversity.”

The role of regulation

Regulatory frameworks such as the B-BBEE Act and the Financial Sector Code have played a crucial role in driving accountability and setting measurable targets. But policy alone cannot deliver deep transformation.

“Regulation sets the floor, not the ceiling,” Dr Bapela notes. “Inclusive growth requires an enabling environment that supports emerging managers, nurtures investment talent, and encourages collaboration across the ecosystem.”

Looking ahead, he believes policy measures that support capital allocation to emerging managers, enhance skills development initiatives, and incentivise industry-wide collaboration could accelerate progress. Ultimately, the goal is a thriving, diverse and competitive asset management industry that strengthens South Africa’s economic prospects. As Dr Bapela puts it, “Transformation is an investment in the future strength of our financial system.”

By Sharon Hamman Senior Legal Adviser, Momentum

The foundation of freedom: 5 tips to help clients build financial resilience

Human Rights Day is a reminder that freedom is a constitutional principle, but also something that must be experienced in everyday life. Beyond its historical significance, it requires us to think about the practical realities that make it possible for us to make life choices, plan ahead, and build secure futures.

Financial stability plays a critical role in giving individuals and families the confidence to navigate uncertainty and act with intention.

When clients live from pay cheque to pay cheque or lack a safety net, they are financially exposed and freedom of choice is usually the first to suffer. Financial insecurity is a lack of money, but includes limiting someone’s financial independence, staying in a toxic work environment because they cannot afford a month without pay, staying in an abusive relationship as they cannot afford to live on their own, or losing the power to provide for their family’s future because of an unexpected medical bill.

Financial resilience is the ability to absorb life’s financial shocks without losing footing. Contrary to popular belief, it is something tangible, available to anyone willing to take small, intentional steps.

Here are five guidelines to share with your clients to help them become financially resilient, thereby safeguarding their dignity and ultimately, independence.

1 Understand your approach to money

Financial resilience is not possible without self-awareness, as our unique relationship with money is shaped by past experiences and emotional triggers. Resilience is aligning your spending with what provides you and your family with long-term stability.

It is important to spend time reflecting on your current position: are your habits serving you, your independence and financial resilience, or are they holding you back, shielding you from true freedom that financial peace of mind brings?

By identifying and understanding your money personality and aligning your spending with long-term stability, you can move from spending to planning.

2

Build a freedom fund – also known as emergency savings

Peace of mind is knowing an unexpected expense won’t derail your entire month. Your first line of defence – to avoid going into debt

when the unexpected happens – is a freedom (emergency) fund.

To start with, aim to save enough to cover one month’s expenses. Build it up over time to set aside three to six months of expenses, because automated, consistent contributions build self-reliance.

3 Protect your greatest asset – your ability to earn

Financial resilience requires protecting yourself against the ‘what ifs’ of life. Disability, critical illness, or life cover are more than financial products – they are vital, laying the foundation for financial security, ensuring you and your family can live with dignity if you can no longer earn an income. The right level of cover ensures a health crisis doesn’t create a poverty crisis.

4 Navigate relationships with rands and sense

Extended family obligations, loans, or shared household expenses can cause financial vulnerability. Setting healthy financial boundaries helps you build financial resilience; open communication about money with partners and family members protects your financial sanity.

5

Flipping the script on financial planning

Financial planning can easily be seen as an unwanted chore, another annoying monthly cost limiting your ability to enjoy life to the fullest. However, to build resilience, it is important to flip this script.

“Financial resilience is the ability to absorb life’s financial shocks without losing footing”

Be grateful you can afford life cover to leave a positive legacy, view your retirement contributions as payments to your future self, be proud of yourself for keeping to the plan and making responsible decisions. Every cent allocated towards a plan is an investment in your future freedom. By taking the time to regularly review your financial plan, you ensure you remain on course, fit for purpose, confirming your commitment to yourself and your loved ones.

A journey of many small steps

Financial resilience is a journey of small, consistent steps, allowing your clients to live with confidence, security and –most importantly – the power to make life choices.

While human rights set the ethical boundaries within which we live, financial planning secures the resources needed to protect those rights. This Human Rights Day, remind your clients that their financial wellbeing is a cornerstone of their personal freedom, and that they need to do what is necessary to protect that freedom.

By Bheka Mkhize TD Financial Coaching

IFinancial planning for beneficiaries and heirs

n South Africa, more than half of beneficiaries are reported to go broke a few months after claiming their inheritances or benefits left by their parents, or from their disability pay-out or Road Accident Fund (RAF). Reasons for misuse can be traced to lack of investment knowledge, poor advice and lack of succession planning. The biggest challenge with such inheritances is that the beneficiaries are usually inexperienced and have never managed so much money before. The kind of relationships a beneficiary has also play a part in how they handle their money. For someone coming from a financially struggling family, they believe it is their responsibility to help everyone in their surroundings, including extended family and friends. In the case of someone inheriting a business, investments and/or assets from family, this comes with a lot of responsibility, and experience is needed to properly manage such.

A healthy relationship with money goes a long way when inheriting money because it requires an understanding of investing and retention. The reason most wealth does not last in the hands of beneficiaries is not always because of carelessness, but more due to lack of knowledge and lack of experience. Parents who wish to leave their inheritance to their kids need to ensure they involve them early in the management. Learning early allows the heirs to make mistakes while being guided, instead of fumbling on their own at a later stage.

Responsibility left with heirs

There is a huge responsibility left with heirs, to manage the wealth, pay bills, follow up on unpaid debts and collect from debtors. This responsibility can be overwhelming for someone with no experience. You find that some will be meeting with the family Financial Planner for the first time, and don’t know what is expected of them and there is no trust in the relationship. Following through can be quite a challenge if the relationship is still at inception, and following guidelines can be challenging for the beneficiary as the relationship may feel forced at times.

“Learning early allows the heirs to make mistakes while being guided, instead of fumbling on their own at a later stage”

What heirs and beneficiaries need to avoid

• Lifestyle inflation: Instant gratification is what causes lifestyle inflation to creep in. Wanting people to know you are wealthy is the easiest way to lose your money, as you spend on what you do not need.

• Poor advice: Relying on sales-driven advisers is also one of the contributing factors. Sales executives, insurance brokers and car dealerships are always ready to advise heirs to spend their money on expensive items like luxury cars, unnecessary insurance products and credits they do not need.

• Get-rich-quick schemes: The fastest way to lose money is joining schemes that promise quick returns after a few days. These schemes are there to scam people of their fortunes and their hard-earned money.

There are two critical underlying contributors to inheritance issues.

Lack of knowledge: Most beneficiaries have minimal to no information about investing and/or handling money in general. An unemployed high school graduate with no higher qualification is most likely to make financial mistakes with their pay-out, not because they are irresponsible but because they lack knowledge. As financial literacy is not included in the school curriculum, school leavers have no financial management knowledge. Lack of investment knowledge is the reason why some beneficiaries put their money in alternative choices they see fit. These alternative choices may not be as legit and may subsequently lead to loss of income.

• Lack of planning: Without the right guidance, money can be very confusing and may lead to destructive decisions. Spending before saving is inevitable, spending on the wrong items or, even worse, investing incorrectly. Planning and getting the right guidance from

a professional is crucial to avoid all these costly mistakes.

Assisting heirs to keep their inheritance

• As financial planner, get an introduction to the family as early as possible. This will assist in building the relationship early and a profound foundation can be laid.

• Involve beneficiaries in the decision making and in the transactions. A spouse and kids need to have some knowledge about how finances are handled for future purposes. They need to understand that the head of the family will not always be around and some day they would be solely responsible for how things function. Encourage beneficiaries to attend financial therapy sessions prior to receiving their inheritance and post receipt. This helps to identify their relationship with money, their money fears and deep-seated traumas, and to deal with them accordingly. Then the counselling and planning needs to be ongoing to ensure a smooth transition.

• Help them to plan for a life beyond the inheritance. Make sure they plan a life that is independent of their inheritance, such as a career or a business. This will ensure that even if the money runs out, they will still have a life not tied to the inherited wealth.

• Think long term. Encourage beneficiaries not to limit thinking to the pleasures of today, and to stretch their plans to include their future, marriage, kids and kids’ education, even leaving wealth after they pass on.

Beneficiaries need to understand that no matter their age, wealth preservation should be at the centre of their financial plan. Preserving wealth guarantees financial freedom. Understanding that sacrifice today buys more power tomorrow needs to be engrained in their minds to do away with instant gratification.

By Francois du Toit Founder and Director, PROpulsion

MHow to make Microsoft 365 work harder for you

icrosoft 365 Copilot is the safest AI option for South African financial advice businesses. Here is how to get your firm ready.

Most financial planning firms in South Africa already run on Microsoft 365 for email, spreadsheets, video calls and shared files. Yet when the topic turns to AI, many firms look elsewhere, downloading free chatbots or signing up for tools outside their existing setup. That is a missed opportunity and a possible compliance risk.

Microsoft 365 Copilot adds AI directly into Sharepoint, Word, Excel, Teams and Outlook while meeting the governance, privacy and intellectual property rules that consumer AI tools cannot. Here is what makes it the strongest and safest fit for South African advisory firms, and the four things to sort out before you switch it on.

Governance and privacy come first

The 2025 joint report from the Financial Sector Conduct Authority (FSCA) and the Prudential Authority surveyed over 2 100 institutions. It found that data privacy under the Protection of Personal Information Act (POPIA) is the biggest risk tied to AI adoption in South African financial services.

When an adviser enters client data into a public chatbot, that information may end up in the model’s training data. That breaches POPIA. It also creates problems under Section 72, which limits the movement of personal information outside South Africa.

Copilot deals with both. Its Enterprise Data Protection means prompts, responses, and company data are never used to train the AI models. Copilot follows existing access

permissions, so a junior team member cannot use a prompt to reach files they should not see. During 2026, Microsoft will offer the option of processing Copilot interactions entirely within South African data centres, removing the Section 72 question altogether.

Copyright protection and real productivity gains If AI-generated content copies someone else’s work, the firm is exposed. Microsoft’s Copyright Commitment covers what Copilot produces. If a third party brings a claim, Microsoft takes on the legal defence and pays any settlements, as long as you use the built-in content filters.

The Absa Group in South Africa has adopted Copilot and reports real-time savings on admin. According to Microsoft’s own data, firms see a 75% drop in compliance reporting time. For a financial planning practice, that means less paperwork and more time with clients.

“Its Enterprise Data Protection means prompts, responses, and company data are never used to train the AI models”

Four building blocks before you switch it on Copilot reads across your firm’s data, so a rushed rollout can show the wrong files to the wrong people. Get these four things right first.

• Clean up your data. Think of Copilot as a new employee who can read every file your team can see. Make sure the right files are visible

to the right people. Use Microsoft Purview to label documents as Confidential or Highly Confidential. Copilot will not show anything a user does not have permission to view. Make SharePoint your single source of truth. Copilot pulls answers from data inside Microsoft 365. If your templates, compliance documents, and guides are scattered across personal drives, inboxes and desktops, Copilot has little to work with. Move your core knowledge into SharePoint and name the libraries clearly. The better SharePoint is organised, the smarter Copilot becomes.

• Confirm your licensing. Copilot is an add-on that needs Microsoft 365 Business Standard or Business Premium. Business Premium is the better fit for advice firms because it includes device management and Purview for data governance. Make sure you have a paid license for Microsoft 365 Copilot. This provides grounded work context through Work IQ.

• Train your people. A vague prompt gives a vague answer. A clear prompt that states the goal, context, format, and source documents gives something useful. Build a shared prompt library for common tasks and treat training as ongoing, not a once-off.

You already pay for the platform. Clean up your data, get your knowledge into SharePoint, check your licences, and train your team. Do that, and Copilot becomes the safest, most useful AI tool your advice business can use. Stay curious!

Du Toit believes that when financial planners build great practices, they change lives at scale. He also believes we must grow the entire profession so that everyone benefits. That's why he founded PROpulsion, where he helps planners grow through community, events, and expert resources. He hosts the weekly PROpulsion LIVE show on YouTube with over 325 episodes. Visit www.propulsion.co.za

FAI is reshaping – not replacing – financial advisers

or years, the financial-advice profession has been edging toward a digital transformation. According to Partner and Head of Financial Services Sector at KPMG Southern Africa, Auguste Claude-Nguetsop (pictured above), advisers are entering a new era defined not by competition between humans and machines, but by their convergence.

“The role of a financial adviser is moving into one that requires a solid understanding of where and when to use artificial intelligence and digital infrastructure to best serve customers,” he explains. Automation, data analytics and integrated digital platforms are no longer niche tools; they are now baked into the everyday mechanics of advice. Client acquisition, onboarding, record-keeping, risk assessment and portfolio execution increasingly run through platform-based fintech ecosystems designed to streamline operations and reduce costs.

But even as these technologies mature, Claude-Nguetsop is clear about where humans remain irreplaceable. High-end advisory services – the kind requiring deep customisation, contextual decision-making and emotional intelligence – still depend on a human in the loop. “Human advice remains critical,” he says. “Human intervention is key in confirming that the decision-making process done using artificial intelligence is optimal and benefiting from the latest market information.”

AI as amplifier, not autopilot

One of the most transformative shifts is AI’s ability to crunch huge volumes of data and offer hyper-personalised financial solutions. The promise is powerful: sharper insights, more precise risk modelling, and customised recommendations delivered at scale. But Claude-Nguetsop stresses that these systems can’t run unattended.

“AI tools require continuous maintenance and development, including a human feedback loop,” he explains. Without that iterative refinement, models risk drifting away from reality, which is a vulnerability with real financial consequences.

He points to traders on global investmentbanking floors as an example of how AI should ideally operate. Sophisticated algorithms help them optimise asset selection, calibrate portfolio allocations, and assess tail risks such as the low-probability, high-impact shocks that can rattle markets. Yet, the machines don’t call the shots alone. “The human touch is still needed to monitor the portfolio and make real-time adjustments,” says Claude-Nguetsop. Advisers must remain aware of AI’s known limitations: over-confidence, hallucinations, estimation errors, and the inability to intuitively interpret unstructured, fast-moving events.

In other words, advisers are shifting from being the primary generators of all analysis

to becoming expert supervisors, interpreters and strategic decisionmakers. AI is the amplifier – not the autopilot.

The rise of integrated advice ecosystems

As financial services become increasingly platform-driven, advisers are entering a world where entire client journeys, from onboarding to reporting to portfolio management, happen within a single interconnected digital ecosystem. These systems, Claude-Nguetsop notes, are reshaping traditional workflows and client interactions.

“The integrated ecosystem model enables the provision of end-to-end services without the need to jump from one platform to another,” he explains. This seamlessness will push advisers to differentiate themselves in new ways. When every adviser has access to similar digital tools, excellence becomes less about the platform and more about the expertise applied through it.

That means sharper product selection, more sophisticated portfolio construction, stronger tail-risk assessment, and deeper research into alpha generation. “The platform will become a commodity,” he says. “The ability to optimise the functionality of the platform will become critical.” For advisers, mastery of technology needs to be part of the core skill set.

New era, new risks

The opportunity created by AI and fintech is also matched by a new category of risks. Claude-Nguetsop highlights several that advisers must take note of and continue to monitor closely:

• Portfolio crowding – As more advisers rely on similar models, portfolios risk converging on the same strategies, creating liquidity and exit challenges during market stress

• Model and algorithmic errors – From hallucinations to incorrect estimations, AI can produce flawed outputs with significant consequences

• Market manipulation at scale – Bad actors can potentially weaponise automated systems or exploit model blind spots

• Heightened cyber-fraud risks – AI enables more sophisticated attacks, from deepfakes to automated phishing

• Data-privacy vulnerabilities – As more client information flows through digital platforms, compliance demands grow sharper.

These emerging risks underscore why advisers cannot abdicate judgement to machines. The future of advice requires not only adoption of technology but rigorous oversight of it.

The adviser of tomorrow must be hybrid

The new profile of the financial adviser is one who blends traditional advisory expertise with technological fluency. According to ClaudeNguetsop, several capabilities will define relevance in the next decade:

1. Proficiency with generative and agentic AI platforms

Advisers must understand both the power and the limitations of the AI tools they deploy.

2. Basic programming literacy

Not to code entire systems, but to execute routine functions, manipulate data and customise tools in the same way spreadsheets once revolutionised workflows.

3. Awareness of industry-shaping technologies

From blockchain to advanced analytics, advisers must stay ahead of the platforms their clients increasingly expect them to use.

4. Strength in behavioural guidance

The more technology automates the mechanical tasks of advice, the more clients will value empathy, context and human judgement.

Ultimately, Claude-Nguetsop believes the future belongs to advisers who can synthesise technology and human insight and not choose between them. “AI will transform financial services,” he says, “but it will be most powerful in the hands of professionals who understand how to guide it.”

The industry may be stepping into a digital age, but the adviser remains the translator, the steward and the strategic compass. In a world of intelligent machines, human wisdom still sits firmly at the centre of great advice.

Sanlam elevates AI to the C-Suite

AI has parabolic potential in the insurance industry and should be a strategic priority driven by the C-Suite, says Sanlam. It has appointed its Group Chief Technology & Information Officer, Theo Mabaso, as Group Chief AI Officer on its Group Exco. In the role, the senior executive will ensure Sanlam drives AI as a defining factor for differentiated competitiveness, efficiency and resilience.

The appointment marks a significant step in Sanlam’s strategy to embed artificial intelligence across its businesses – from underwriting and claims to advice and client engagement – while ensuring strong governance and ethical oversight. While Sanlam has already seen success in the application of AI across the Group, this move creates dedicated focus, embedded measures and revised capital allocation.

Mabaso, who still serves as Sanlam’s Group Chief Technology and Information Officer, has played a central role in modernising the Group’s technology and building the foundations for AI adoption. In 2025, he also served as a member of the B20 South Africa Digital Transformation Task Force responsible for ensuring that digital technologies become a driver of inclusive growth across the continent.

Paul Hanratty, Sanlam Group CEO, says of Mabaso’s extended role, “AI has moved beyond experimentation. It is now central to how financial services companies compete, innovate and deliver to their clients. At Sanlam, we aim to maintain and strengthen our position as a digitally enabled insurance market leader in Africa, and in fast-growing markets in Asia. With Theo’s appointment, we are ensuring that artificial intelligence is developed responsibly and used to strengthen our competitive muscle, innovation and enhanced customer experiences across the organisation.”

Turning data into better outcomes

Mabaso says insurance presents unique opportunities and responsibilities when it comes to AI. “Insurance is, in many ways, a data business masquerading as a financial one. We hold deep, trusted data that spans lifetimes. Artificial intelligence allows us to synthesise that knowledge in previously impossible ways, industrialising our ability to deliver better products, superior advice, and ultimately better financial outcomes.

“In our industry, the stakes are high. AI influences decisions that affect people’s financial security for years, sometimes decades. That means machine operable accuracy, codified controls, digitally executable fairness, explainability, and robust oversight must always come first.”

With the latest frontier model releases, inference costs falling, orchestration tooling maturing, and multi-agentic systems entering enterprise production, Sanlam expects AI at scale to have a strong impact in underwriting, claims processing, client engagement, product development, revenue generation, and just about everywhere in the organisation.

Scaling AI responsibly

Creating a dedicated Group-level AI leadership role ensures innovation across Sanlam’s businesses remains coordinated and aligned with long-term strategy.

“As AI adoption accelerates, the strategic risk is no longer premature adoption. The risk is structural drift – falling behind while competitors compound capability – and teams without alignment or shared standards,” Mabaso says. “This role, and artifacts such as AI’s manifestation in the Group’s 2030 strategy, the office of AI, AI control tower, and our nerve centres, ensure we are scaling AI in a disciplined way, with clear priorities, strong governance and a focus on delivering real value for clients.”

Strengthening adviser-client relationships

Sanlam also sees AI as a tool to strengthen, rather than replace, its extensive adviser network. “The foundation of financial advice requires a human touch,” Mabaso says. “What AI will do is to collapse the end-to-end administrative and burdensome cycle times, and materially change the human in the loop operating economics, allowing advisers to use their time where they add the most value – their clients.”

The inflection point has arrived – advice will never be the same

By Kobus Barnard Managing Director, Allegiance

Change is inevitable. Life, the world we live in, the way society functions – all these things (and more) are continuously evolving. But there are moments in history where things shift in an instant. In a way where you suddenly realise: this changes everything.

We are having one of those moments.

Artificial Intelligence has moved beyond experimentation. It’s no longer something we’re just dabbling with as a more convenient Google. It’s getting ingrained, everywhere.

With operational shifts in industries, the birth of new industries and services, and a mass convergence of exciting technologies (from robotics to energy to manufacturing), it’s invoking giddy excitement (if you follow the money). But it’s also starting to expose something far more uncomfortable than inefficiency. We are witnessing a tectonic shift where traditional ways of work and traditional skills are shifted into irrelevance. This creates chaos, fear, panic… and massive opportunities.

Recent industry commentary, including from Magda Wierzycka, reflects what many are dreading – a rush into AI. Everyone is ‘doing AI’. Very few can clearly explain what that means for their businesses, their operations and, ultimately, their clients. That’s where the real divide begins. Because AI is not a strategy, or a buzzword you can just throw around. It’s an amplifier. It amplifies clarity or confusion. It amplifies value or exposes the lack of it.

For years, financial services have been built around distribution. Faster systems. More products. Better efficiency. Looming targets. Advice, in some cases, became secondary, something that supported the sale. AI changes that.

For the first time, technology can understand context, model outcomes, and engage clients in a way that is hyper personal – even at scale. This isn’t just automation. It’s personalisation that matters. It forces us to question existing models. How do we broker meaningful change and improvements for our clients? How do we help them reach their goals?

We are entering a new kind of competitive environment, one where relevance becomes the real differentiator. Three shifts are already emerging.

1. Advice becomes the product. Not the wrapper around a solution, but the value clients are paying for.

2. Trust becomes visible. Clients won’t rely on brand alone. They will expect to see consistency, understand decisions, and know that advice is aligned to their goals.

3. Human + AI becomes the winning model. Not one replacing the other, but a powerful partnership where AI handles complexity and advisors bring judgement, empathy, and meaning.

Those who get this right will scale trust in ways we haven’t seen before. Those who don’t will slowly become invisible.

In a world where technology can do more (so much more), clients will care more about those who genuinely improve their lives and not just who can process something faster. So, what should advisers do now?

Stop asking which AI tool to use, and start asking where you are not adding real value.

Rethink your advice process. If payments for product distribution disappear tomorrow, will your advice still stand?

• Use AI to deepen relationships, not replace them.

Finally, the money shot is: use AI to scale your business.

The inflection point isn’t coming. It’s already here. The only question that remains is: which side of it will you stand?

MoneyMarketing spoke to Justin Poiroux, Co-Founder and Chief Technology Officer at Yellow Card, to hear his views on the impact of AI on the financial planning industry, with specific reference to cryptocurrencies. (Yellow Card is one of the largest licensed stablecoin infrastructure providers, operating across 34 countries, including 20 in Africa.)

How is the convergence of fintech, artificial intelligence and digital infrastructure reshaping the traditional role of financial advisers, and where do you see human advice remaining indispensable?

This convergence has fundamentally transformed the role of financial advisers, expanding it into more of a hybrid role. At Yellow Card, we’re seeing this firsthand across emerging markets – digital-first solutions aren’t just upgrading legacy systems, they’re leapfrogging them to create entirely new financial frontiers. AI excels at pattern recognition and data processing, but financial advice has always been about more than just optimisation algorithms. The human element becomes important when you’re navigating life transitions, cultural nuances, and complex dynamics around money. Where AI reshapes the adviser role is in the foundational work: portfolio rebalancing, risk assessment, compliance monitoring. This frees advisers to focus on what humans do best: building trust, understanding context, and helping clients navigate the emotional complexity of financial decisions. In emerging markets especially, trust-building is everything. You can’t algorithm your way into understanding why a small business owner in Accra needs to keep certain assets liquid for family obligations.

With AI enabling deeper data analysis and hyperpersonalised financial solutions, how can advisers leverage these tools to enhance client outcomes without losing the human touch?

The key is treating AI as a research assistant, not a replacement. AI-driven analytics can help advisers understand spending patterns, predict liquidity needs, and identify optimal timing for currency conversions. But the magic happens when teams use those insights to have better conversations with customers. AI gives advisers an amazing advantage – they can walk into client conversations armed with insights that would have taken hours to compile manually. They can model scenarios in real-time, stress-test strategies instantly, and provide data-backed

How financial advisers can stay ahead when it comes to AI

recommendations. But the conversation itself – the trust-building, the cultural sensitivity –remains fundamentally human.

As financial services become increasingly platform-driven, how will integrated ecosystems impact the way advisers access products, manage portfolios and engage with clients?

We’re moving toward seeing financial infrastructure like Legos or building blocks. Just like AWS democratised computing power, integrated financial platforms are democratising access to sophisticated financial tools. At Yellow Card, we’ve built a full-scale ecosystem where advisers and financial managers can access everything, from Stablecoin payments to wallet services, invoicing, and more. We provide the infrastructure and tools businesses need to manage Stablecoins, payments, and operations across emerging markets. This changes everything for advisers. Instead of managing relationships with dozens of product providers, they can access a comprehensive suite through integrated platforms. Portfolio management becomes more dynamic; you can rebalance across traditional and digital assets. The winners will be platforms that prioritise interoperability. Advisers don’t want to be locked into walled gardens; they want to pick best-of-breed solutions and integrate them seamlessly.

What new risks are emerging from the use of AI and advanced fintech infrastructure, and how should advisers navigate issues such as data privacy, algorithmic bias and regulatory compliance?

The risks are evolving faster than most regulatory frameworks can keep pace. Algorithmic bias is particularly dangerous in financial services because it can perpetuate or amplify existing inequalities. If your AI training data reflects historical lending biases, you’ll automate discrimination.

Data privacy is where many fintech companies stumble. Customers are sharing incredibly sensitive information, and the temptation to monetise that data is enormous. The same technology driving fintech innovation is simultaneously arming bad actors. AI-enhanced financial crime – from deepfake identities designed to bypass KYC (Know Your Customer) checks to hyper-personalised, automated phishing attacks – operates at a scale and sophistication that manual compliance teams simply cannot match. You cannot fight artificial

intelligence with legacy security. At Yellow Card, we counter this by deploying our own adaptive, AI-driven systems. By continuously analysing behavioural patterns and transaction velocity in real-time, we can intercept anomalies and neutralise threats before they impact our customers.

Regulatory compliance is perhaps the trickiest because the rules are still being written. While current global regulatory frameworks are a step in the right direction, AI governance is largely uncharted. To navigate this safely, advisers cannot be passive. They must engage directly with regulators, rigorously document their models, and embed compliance into the very foundation of their systems, rather than bolting it on after the fact.

What skills and capabilities will financial advisers need to develop to remain relevant in a landscape shaped by automation, digital platforms and rapidly changing financial technologies?

The advisers who thrive will be those who become technology translators – people who can understand complex fintech innovations and explain them in human terms. You don’t need to become a blockchain developer, but you should understand how blockchains generally work, what stablecoins enable, and how AI can enhance portfolio management.

Data literacy is non-negotiable. You need to be comfortable with analytics platforms, understand how to interpret AI-generated insights, and know when to trust the algorithm versus when to override it.

Adaptive learning is also key as the pace of innovation in fintech is accelerating, not slowing down. New asset classes, new regulatory frameworks, and new technologies are emerging constantly. The advisors who succeed will be those who embrace continuous learning.

Cultural intelligence becomes increasingly important too, especially as financial services become more global. Understanding how different markets work, different regulatory environments, different cultural attitudes toward money and technology – these soft skills become competitive advantages.

Finally, ethical reasoning is crucial. As AI makes more decisions and platforms become more powerful, advisers become the ethical guardrails for their customers. You need to be able to ask the right questions. That judgment can’t be automated; it’s fundamentally human, and it’s why great advisers will always be in demand.

The Morningstar Awards for Investing Excellence South Africa 2026

Morningstar, Inc. (Nasdaq: MORN) has announced the winners for the Morningstar Awards for Investing Excellence South Africa 2026. The awards recognise funds and asset managers that have served investors well over the long term, and which Morningstar’s manager research team believes will be able to deliver strong risk-adjusted returns over time.

There are two types of Morningstar awards: the Morningstar Category Awards and the Morningstar Asset Manager Awards.

“Each year, the Morningstar Awards for Investing Excellence shine a light on the investment strategies and managers that have consistently put investors first,” says Tal Nieburg, Managing Director of Morningstar South Africa.

Congratulations to our 2026 winners and finalists, who have demonstrated resilience, discipline, and a clear commitment to delivering long -term value in a volatile and fast- changing market.

Drawing on our rigorous, forward - looking research, we are pleased to recognise those fund groups that continue to set the standard for investors in South Africa.”

All

“The Morningstar Awards for Investing Excellence shine a light on the investment strategies and managers that have consistently put investors first”

These awards are determined by a combination of risk-adjusted medium- to long-term performance track records and Morningstar’s forward-looking rating for funds, the Morningstar Medalist Rating™, including its Parent pillar component. The Medalist Rating is set on a five-tier scale running from Gold, Silver, Bronze, Neutral and Negative at the share class level.

The ninth 2026 SALTA Awards

The South African Exchange Traded Product (ETP) Industry, which now consists of 15 different providers of listed exchange traded products on the JSE, with 300 products in issue, accounting for over R300bn in market capitalisation, gathered in force at the JSE on Tuesday 24 March 2026.

23 SALTA Awards, for the top performers in the listed ETP market, were made during the evening, with Satrix dominating the number of awards won.

Satrix won its awards in multi-categories, including total investment returns, over five and 10 years, tracking efficiency and capital raising, and also came out tops in the People’s Choice Awards, for both the local and foreign categories.

1nvest, which is the brand name for ETFs issued by Standard Bank, won five of the 23 SALTA Awards, including double wins for the 1nvest Rhodium ETF and for the ICE US Treasury Bond Index Feeder ETF.

UBS had three winners, all actively managed products listed with the balance sheet support of UBS for AMCs, issued by Nedbank Wealth, Stanlib and Excelsia Global, respectively. In all, four awards were made to actively managed ETPs, reflecting the strong inroads into the industry made by active managers since 2024, when such products have been able to list on the JSE.

The People’s Choice Award, where the public is invited to vote on their favourite Exchange Traded Product, continued to attract wide support. Satrix won both categories. For local ETFs, Satrix 40 ETF came first for the eighth year in a row. The Satrix MSCI World ETF was also a clear winner in the People’s Choice Award for foreign referenced ETFs.

The most SALTA Awards (nine) were awarded for capital raised on the JSE from the issues of ETP securities over the past three years. Such capital came from new listings, with capital often raised through IPOs, or from additional listings of ETP securities already in issue, as all ETPs are open-ended and additional capital can be raised or redeemed at any time.

Over R67bn in fresh capital was raised over the past three years by the Exchange Traded Products industry from such listings on the JSE. In a stock market starved of new issues, this capital raising has been an important part of the growth of the JSE over this period.

Satrix Managers, with a net R24.9bn new capital raised, followed by UBS with

“Four awards were made to actively managed ETPs, reflecting the strong inroads into the industry made by active managers”

R12.9bn and 10X (R8.2bn), were the top three ETP capital raisers on the JSE for the past three years.

Adele Hattingh, Business Development & Exchange Traded Products Manager of the JSE, comments, “The significant growth of the ETP industry in recent years, aided by the recent introduction of actively managed products to the market, has been proactively encouraged by the JSE through changes to its listing requirements and operating systems to enable portfolios, rather than single securities, to take their place in the listed investment options available to the South African institutional and retail investors.”

More about the SALTA Awards

The South African Listed Tracker (SALTA) Awards are a joint initiative between four service providers to the

ETP industry in South Africa. They are:

• The Johannesburg Stock Exchange

– JSE Limited

The London Stock Exchange Group

– LSEG

• Profile Data (Pty) Ltd – Profile

• ETFSA

These four organisations provide an independent measure of success for the industry.

A rigorous analysis of daily NAV pricing and data generated from trading on the JSE is used to assess the winners of the various categories. The SALTA Awards not only reward investment returns, but also excellence in product performance, in areas such as tracking error and the raising of new capital. Only quantitative assessments have been utilised, and no subjective judgements are made.

Recognising best fund managers and topperforming companies

News24 Business Awards 2026

The winners of this year’s News24 Business Awards were unveiled last night at an awards dinner and ceremony, recognising excellence across South Africa’s financial services landscape. The awards, which were sponsored by Uber, highlight companies that distinguish themselves through outstanding client service, innovation, strategic execution, communication and claims efficiency.

This year’s results drew on insights from 13 000 surveyed readers, supported by quantitative data from the National Financial Ombudsman. In addition, News24 conducted its own rigorous assessment based on a comprehensive set of criteria, ensuring a balanced and credible evaluation of the industry’s top performers.

Speaking at the event, News24 Editorin-Chief Adriaan Basson highlighted the vital relationship between the private sector and the media. He noted that commercial support plays a crucial role in enabling his team to pursue some of the country’s most significant investigative journalism, work that holds Government to account and strengthens South Africa’s democracy.

The winners are:

News24 Medical Scheme of the Year: Momentum

News24 Long-Term Insurer of the Year: FNB

News24 Short-Term Insurer of the Year: OUTsurance

News24

It was a glitzy evening of celebration and networking as the industry’s fund managers came together to find out who would win this year’s News24 FundHub Industry Performance awards. Organised by The Collaborative Exchange and sponsored by News24, the event was held at the Century City Conference Centre and was hosted by Bruce Whitfield.

Kevin Hinton, Director at The Collaborative Exchange, explained that these awards were launched to restore credibility to the industry’s award culture and to continue to raise standards. The use of an in-depth review methodology that focused essentially on performance, risk management, innovation and partnership contributed to the final results.

The two biggest awards of the night were the News24 Best Overall Fund Manager, which went to Satrix and the Financial Advisor Top Fund Award, which went to Allan Gray. The other award winners were:

Interest-Bearing and Income Categories

South African – Interest-Bearing - Short Term

3 years: Terebinth SCI Enhanced Income Fund

5 years: Truffle SCI Income Plus Fund

South African – Interest-Bearing - Variable Term

3 years: Prescient Flexible Bond Fund

5 years: Prescient Flexible Bond Fund

South African – Multi-Asset - Income

3 years: PortfolioMetrix BCI Dynamic Income Fund

5 years: PortfolioMetrix BCI Dynamic Income Fund

Multi-Asset Categories

South African – Multi-Asset - Low Equity

5 years: Camissa Stable Fund

7 years: Amplify SCI Wealth Protector Fund

South African – Multi-Asset - Medium Equity

5 years: Nedgroup Investments Opportunity Fund

10 years: Camissa Protector Fund

South African – Multi-Asset - High Equity

5 years: PSG Balanced Fund

10 years: Abax Balanced Prescient Fund

South African – Multi-Asset - Flexible

5 years: Flagship BCI Flexible Value Fund

10 years: Centaur BCI Flexible Fund Equity and Property

South African – Multi-Asset - High Equity

5 years: PSG Balanced Fund

10 years: Abax Balanced Prescient Fund

South African – Multi-Asset - Flexible

5 years: Flagship BCI Flexible Value Fund

10 years: Centaur BCI Flexible Fund Equity and Property

South African – Equity - General

5 years: PSG Equity Fund

10 years: Ninety One Value Fund

South African – Equity - South Africa General

5 years: PSG SA Equity Fund

10 years: Fairtree SA Equity Prescient Fund

South African - Real Estate - General

5 years: Amplify SCI Property Equity Fund

10 years: Amplify SCI Property Equity Fund

Global and Alternative

Global – Multi-Asset

5 years: PSG Global Flexible Feeder Fund

10 years: Mi-Plan BCI Global Macro Fund

Global – Equity - General

5 years: 1nvest S&P

10 years: Old Mutual Global Equity Fund

South African - Long Short Equity - Long Bias Equity

5 years: Oyster Catcher RCIS Long Short Retail Hedge Fund

7 years: 36ONE Prescient Retail Hedge Fund

Recognising Platform Excellence

Best Adviser Support Service

Allan Gray

Best Use of Technology

Allan Gray

Best Investment Offering

Glacier by Sanlam

Best Partner for Asset Managers

Ninety One

News24 Best Overall LISP

Allan Gray

Bonitas celebrates 2026 Top Broker Awards

This Freedom Month, Bonitas Medical Fund is recognising the brokers whose expertise and partnerships ensure South Africans have access to quality healthcare.

Bonitas hosted its annual Top Broker Awards, honouring the brokers, advisers and brokerages whose performance drove the Scheme’s growth in 2025. The awards highlight the pivotal role brokers play in guiding members through complex healthcare decisions, helping individuals and corporates match needs with the right medical cover.

The evening brought together South Africa’s leading advisory professionals, with top performers recognised across Bronze, Silver, Gold, Platinum and Special Awards categories. The highest accolade, Bonitas Broker of the Year, went to AlexForbes for enrolling more than 5 000 new principal members during the year.

Strong growth backed by trusted advice Bonitas entered 2026 on the back of robust 2025 results, following record membership growth in 2024. The Scheme achieved its highest January intake ever, alongside gains in total lives covered and market sector diversification. This reflects a strategic focus on appointing providers with diverse skills in wellness, marketing, new business, digital and data management.

Bonitas Principal Officer, Lee Callakoppen, highlighted the broker community’s role in this success. “Behind every membership figure is a family or individual whose peace of mind relies on quality healthcare. Our brokers make that possible,” he said. He also noted that the Scheme’s strong financial position allows it to absorb cost pressures while maintaining competitive pricing and member benefits.

A total of 31 awards were presented, evaluated through actuarial analysis and independent performance assessments based on new principal members enrolled. Awards recognised not just numbers, but the quality and strategic value of growth.

left to right:

Busi

Tracy Jansens (Alexforbes), Susan Weedman (Alexforbes), Nicole Lombaard (Alexforbes), Lee Callakoppen (Bonitas Medical Fund), Fazlin Swanepoel (Alexforbes), Nedine van Vuuren (Agile Alternative Business Solutions), Renila Wiese (Agile Alternative Business Solutions), Kriban Moonsamy (Agile Alternative Business Solutions)

Among the winners:

• Bronze: RP Comprehensive Marketing Agency and Classique Medical Aid Consultants showed meaningful book growth.

• Silver: Sanlam, Simeka Health and Securitas Financial Group demonstrated consistent expansion.

• Gold: Medsafu Brokers and Liberty Group enrolled more than 1 000 new principal members.

• Platinum: Hippo Advisory Services, NMG Consultants and ASI Financial Services enrolled over 2 000 principal members, demonstrating market impact.

“The awards underscored not only performance but the breadth of expertise and resilience in South Africa’s advisory community”

Special awards included Best Net Growth (NMG Consultants and Actuaries), Most Sustainable Book (Wynsam Wealth) and Best New Performing Broker (Nexus Independent Financial Professionals). The inaugural Top Wellness Broker Award, recognising commitment to member health engagement, went to AlexForbes.

The awards underscored not only performance but the breadth of expertise and resilience in South Africa’s advisory community. Bonitas remains committed to working with brokers to enhance service delivery, improve member outcomes and adapt to evolving healthcare needs.

Lee Callakoppen

This Freedom Month, the Top Broker Awards reflect Bonitas’ ongoing commitment to partnership, innovation and ensuring quality healthcare reaches more South Africans.

“Our work with brokers extends beyond figures,” Callakoppen said. “It is about improving access to care, enabling informed healthcare decisions, and building trust across our membership.”

The Spire Awards

This year marked the 24th annual Spire Awards, which recognise outstanding achievements in client service, innovative solutions and overall market contribution across the Bonds, Currency, Interest rates and Commodity derivatives markets.

Award Name

Best Broker: Agricultural Derivatives Research

Best Structured Commodity Financing House

Best Commodity Broker - Physical Deliveries

Best Commodity Broker Options

Best Broker Commodity Derivatives

Best Market Making Team: Cash Settled Commodity Derivatives

Best Research Team: Africa

Best Research Team: Forex

Best Research Team: Credit

Best Research Team: Economics

Best Research Team: Fixed Income

Best Agency Broker: Listed Interest Rate Derivatives

Best Inter Dealer Broker: Interest Rate Derivatives

Best Market Making Team: Listed Interest Rate Derivatives

Best Sales Team: Interest Rate Derivatives

Best Market Making Team: Interest Rate Derivatives

Best Agency Broker: Listed FX Futures

Best Agency Broker: Listed FX Options

Best Market Making Team: On-Screen Listed FX Derivatives

Best Sales Team: Forex and Forex Derivatives

Best Market Making Team: Forex & Forex Futures

Best Market Making Team: Forex Options

Best Agency Broker: Bonds

Best Inter Dealer Broker: Bonds as voted by Agency Brokers

Best Inter Dealer Broker: Bonds as voted by Banks

Best Structuring Team: Fixed Income\Inflation\Credit\FX

Best Structured Notes Issuer

Best Debt Origination Team

Best Team: Credit Bonds

Best Team: Inflation Linked Bonds

Best Repo Team

Best Sales Team: Bonds

Best Sales Team: Bonds (Weighted Buy-Side)

Best Bond ETP Market Maker

Best Market Making Team: Government Bonds

Best Market Making Team: Government Bonds (Weighted Buy-Side)

Best IDB: Fixed Income

Best Research House

Best Interest Rate Derivative House

Best Forex House

Best Bond House

Best Fixed Income & Forex House

Winner

Robinson Mulder De Waal

Financial Services

Absa CIB

Robinson Mulder De Waal

Financial Services

BVG Commodities

BVG Commodities

Rand Merchant Bank

Standard Bank

Absa CIB

Standard Bank

Standard Bank

Absa CIB

Peresec Derivatives

Tradition

Rand Merchant Bank

Standard Bank

Standard Bank

Peresec Derivatives

Tradition

Absa CIB

Standard Bank

Absa CIB

Absa CIB

Prescient Securities

Tradition

Tradition

Standard Bank

Standard Bank

Standard Bank

Standard Bank

Rand Merchant Bank

Rand Merchant Bank

Rand Merchant Bank

Nedbank

Nedbank

Absa CIB

Goldman Sachs

Tradition

Standard Bank

Rand Merchant Bank

Absa CIB

Rand Merchant Bank

Standard Bank

Alexforbes Paragon Impact Awards 2026

The winners of the inaugural Alexforbes Paragon Impact Awards recognised JSE Top 100 listed companies demonstrating measurable, datadriven sustainability performance aligned to the United Nations Sustainable Development Goals.

Companies were assessed across five key dimensions: Earth and climate stewardship

Sanlam Limited

Responsible resource use and innovation

Momentum Group Limited

• Just transition and economic inclusion

Ninety One Limited/Plc

Basic human needs and social outcomes

Clicks Group Limited

Governance, ethics, impact integration and accountability

Clicks Group Limited

Discovery Limited was named the overall winner, recognised for its consistent performance across all categories, supported by strong governance and a balanced environmental and social profile.

In addition to recognising leading impact performers among the JSE top 100 companies, Alexforbes intends to create an index based on the top-performing impact companies and develop solutions to track this index over the coming months.

SA hedge fund industry reports strong results for 2025

The South African hedge fund industry concluded 2025 with assets under management of R216bn (excluding fund of funds), a 17% increase from R185bn at the end of 2024.

The annual hedge fund statistics released by the Association for Savings and Investment South Africa (ASISA) show that these assets were invested in 219 hedge funds managed by 13 management companies with hedge fund schemes.

Hayden Reinders, convenor of the ASISA Hedge Funds Standing Committee, says while net inflows of R6bn for the 12 months to the end of December 2025 contributed to the growth in assets under management, the main driver was market performance.

Reinders says a noteworthy development in 2025 was the South African Retail Hedge Funds category overtaking the South African Qualified Investor Hedge Funds category in size, with 56.6% of assets under management in retail hedge fund portfolios at the end of December 2025.

When South African (SA) hedge funds were regulated 10 years ago, they were categorised as either SA Retail Hedge Funds or SA Qualified Investor Hedge Funds. From 2015 through the end of 2024, the SA Qualified Investor Hedge Funds category held the largest share of assets, ending 2024 with 56%.

SA Retail Hedge Funds are strictly regulated regarding the investments and risks they may take and are open to investors who can afford the average minimum lump-sum investment of R50 000.

SA Qualified Investor Hedge Funds are open to investors with a solid understanding of the investment strategies deployed by hedge funds and the associated risks, and require a minimum investment of R1m.

According to Reinders, retail investors contributed the bulk of the hedge fund industry’s net inflows in 2025, with the SA Retail Hedge Funds category recording R9.1bn in net inflows. SA Qualified Investor Hedge Funds, on the other hand, recorded net outflows of R4.3bn.

Investor trends

SA Retail Hedge Funds and SA Qualified Investor Hedge Funds are classified by investment strategy: Long-Short Equity, MultiStrategy, Fixed Income, and Other.

Reinders says historically, long-short equity portfolios have been firm favourites with both retail and qualified investors. In 2025, however, hedge fund investors preferred Multi-Strategy portfolios over the other classifications.

Reinders reports that SA Retail Long Short Equity Hedge Funds recorded net outflows of R1.7bn in 2025, while their SA Qualified Investor counterparts reported net outflows of R5.6bn. Long Short Equity Hedge Funds are portfolios that predominantly generate returns by pairing long equity positions with short selling to benefit from both price rises and declines.

SA Multi-Strategy Hedge Funds attracted record net inflows of R7.5bn from retail investors

and R1.1bn in qualified money. Multi-Strategy Hedge Funds are portfolios that do not rely on a single asset class to generate investment opportunities but instead blend various strategies and asset classes with no single asset class dominating over time.

SA Retail Fixed Income Hedge Funds attracted net inflows of R3.3bn. These portfolios invest in instruments and derivatives sensitive to movements in the interest rate market. Flows into the SA Retail Other Hedge Fund category were flat. These portfolios apply strategies that do not fit into the other classification groupings.

Reinders notes that, in the qualified investor space, SA Fixed Income Hedge Funds reported net inflows of only R226m, while SA Other reported net outflows of R46m.

The outlook for 2026

The National Treasury, in the recent Budget Review, acknowledged that collective investment schemes (CIS) and retail hedge funds remain well-regulated and an important avenue for savings. Revised proposals on the taxation of these portfolios would therefore aim to encourage savings and to provide tax certainty. Reinders says while details have not yet been released, this announcement is likely to be good news for SA Retail Hedge Funds and likely to encourage retail investors to continue including hedge funds in their portfolios.

The National Treasury also indicated that SA Qualified Investor Hedge Funds will be considered separately from the proposed CIS tax regime engagements and amendments around CIS and retail hedge funds. According to Reinders, further engagement with the industry, as intended by the National Treasury, will contribute to much-needed certainty.

“We are also optimistic that the Financial Sector Conduct Authority will resume its review of Board Notice 90. In its current form, BN90 prevents long-only unit trust portfolios from investing in hedge funds, even though they are also regulated as collective investment schemes, and future engagement may also allow further investment into retail hedge funds, which would be welcomed by the industry.”

By Laurence Rapp Chief Executive Officer, Vukile Property Fund

SListed property is a long game: Back companies with a proven record of growing dividends through cycles

outh African listed property, especially retail property, is proving a lot of investors wrong. It is defying expectations and showing more robustness than many predicted. People love to speculate about how SA real estate is vulnerable to whatever global chaos hits. But the truth? They significantly overestimate the impact of global disruptions. Real estate is inherently local.

Our business has taken every hit thrown at it – the pandemic, riots, energy volatility and interest rate hikes – and still, the fundamentals are solid. Vacancy rates haven’t spiked, rents are mostly climbing, and tenants keep paying on time.

Then there’s the tired old tale that retail is dying because of e-commerce and changing shopper habits. That myth’s been busted too. Retail real estate, particularly convenienceled shopping centres like those in our portfolio, have shown that when assets are well-positioned, retailer demand remains durable and shopper support strong.

Bottom line: don’t believe the hype. Retail real estate’s all about what’s happening on the ground, not the headlines.

The power of annuity income

At the core of listed property’s appeal is that it generates predictable, growing income. That’s structured into the REIT (real estate investment trust) asset class. REIT frameworks, both locally and overseas, have rules demanding they pay out most of what they make. That means investors regularly see cash coming back to them.

The result is annuity-style income. Steady. Predictable. Visible. And, importantly, growing.

Inflation eats away at fixed income returns offered by traditional bonds, but property offers a natural hedge. Rent escalations and proactive asset management keep the cashflow growing over time, preserving value in ways bonds just can’t match. For incomefocused investors, particularly retirees, this distinction is critical.

When selecting assets for investors seeking income, diversification and inflation protection, REITs belong in your portfolio.

Selecting strength

As with any sector, performance within the REIT sector is not uniform. Property, by its nature, is a long-term game. Markets swing, interest rates bounce, and surprise shocks hit more often than we like. What counts is performance through the cycles. The winners

keep vacancies low, grow income, and keep paying dividends no matter the cycle.

How do we measure up?

Through all the challenges – pandemic, unrest, energy issues and more – our vacancy has stayed under 2%. Rental reversions only dipped into the red once, during the worst of the pandemic. Vukile has paid a dividend for 22 years straight, growing it every year except 2020, when the pandemic hit hardest.

Look at the numbers: base rental growth, low vacancies, positive reversions, strong collections. They’re solid across our portfolios, both in Iberia and South Africa. Setting ourselves apart, we stayed consistent through the cycle and quickly returned to our pre2020 values. Why? Two big reasons.

A well-diversified portfolio

Geographically, we cover three macroeconomies, with 21 properties in Iberia (16 in Spain, five in Portugal) and 33 in SA. These shopping centres dominate in their areas, with little to no competition. Plus, our centres offer mostly convenience retail that is defensive and tied to non-discretionary spending, which holds up better when consumers tighten their belts.

On the tenant side, 95% of our Iberian tenants and 85% of our SA tenants are national or international retailers with toptier credit. These blue-chip tenants need to be in our locations because there’s simply no better (or no other) place for them. Plus, retailer groups often run multiple formats, so if one concept stumbles, they pivot to another. Bottom line: our income is low-risk and dependable.

Managed debt and hedging

Interest rates matter in property, but we’ve got it handled. We keep low loan-to-value ratios between 35% to 40% and hedge our debt heavily, usually for three to five years ahead, often longer. This means short-term rate movements don’t really impact our earnings. After well-managed interest costs, what’s left is steady, growing net operating income. We have a conservative dividend payout of 85%, retaining 15% to reinvest in our centres. That’s how we add value and keep them attractive to shoppers.

Adding value, rotating assets

As mentioned earlier, astute asset management keeps property income

growing. It’s the difference between a market-related performance and outperformance. Knowing which assets to sell, and when, is just as important to effective asset management as knowing where and when to invest for better future growth. A recent example is our shift in the Iberian shopping centre market for higher growth potential and value.

Vukile entered Spain back in 2017 via Castellana Properties, our 99.7% owned subsidiary. We started with smaller, simpler retail park assets, adding value to them through focused asset management and operations. They provided income growth and market insight, while building Castellana’s on-the-ground capability. From that foundation, we expanded into bigger, dominant shopping centres in secondary cities in Spain and into Portugal. We invested in assets with strong catchments, solid tenant demand and upside potential. This strengthened both our earnings and portfolio. This year, we sold our original Spanish retail parks. Under our watch, these assets increased net operating income by around 23%, driven value-enhancing asset management. With the sale proceeds, plus available cash, we reinvested in high-quality, higher-growth Spanish shopping centres. This includes Berceo in Logroño, Islazul in Madrid, and most recently, a 50% stake in Splau in Barcelona, in partnership with UnibailRodamco-Westfield.

Together, these deals have fundamentally reshaped, diversified and strengthened Castellana’s portfolio, now among the strongest in Iberia, with prime assets in Spain’s three biggest cities: Madrid, Barcelona and Valencia. This asset rotation shows power of specialist value-adding asset management and reflects our disciplined capital allocation and rotation.

So, what are investors getting?

From REITs, investors get annuity income streams that naturally hedge against inflation, and predictable earnings with scale and liquidity from a regulated structure. From Vukile, investors get a business committed to paying consistent and growing dividends, backed by diverse, strong income streams from big name blue-chip tenants in Europe and SA. Dominant assets with no real competition. Value-adding prowess. Disciplined capital allocation and recycling. And interest rate risk that’s well controlled.

Rand hedge or hedging the rand?

Prescient Investment Management’s approach has always been to investigate a story before it becomes a fact, rather than following a narrative that might make sense but may not be true. How many times have you heard a portfolio manager talk about how their “rand hedge” stocks provided a good buffer in a weakening rand environment?

The term “rand hedge” is a classic within stock picking circles. It’s usually seen as a stock which serves as a good off setter (contributes positively to performance) when the rand blows out due to the strong reliance on offshore earnings.

Their counterparts, “SA Inc” shares, gives reference to shares which earn most of their revenues in rands - so any rand weakness has no material impact on their profit margins from exports but may be a sign of other problems in the economy.

There is no doubt that a company that earns most of its revenues offshore should benefit from those revenues coming into the country at an exchange rate of R19 instead of R16, but what impact does that have on the share price?

This is the key disconnect that often happens between a fundamental analyst dissecting the balance sheet versus a quantitative analyst who checks for impacts of a factor on a share price. Spoiler alert – it’s not what you think!

Looking at the rolling monthly correlations of Top40 stocks versus movements in the rand we see that banks and insurers (the classic “SA Inc” companies) do exhibit a strong relationship to the rand – in their case when the rand weakens their share prices tend to fall. But what is interesting is that contrary to balance sheet logic, there aren’t any shares on the flip side of that coin which show a significant and reliable price rally when the rand weakens. During the recent sell off in the rand of almost 10% due to the

ongoing conflict in the Gulf region only Sasol rallied significantly (shown in teal below)and that was most likely due to the oil price increase rather than the rand weakness.

At Prescient Investment Management, we rather trade the fact than the narrative, so for our Prescient Income Fund looking to gain some offshore currency exposure to hedge against rand weakness, rather than buying "rand hedge" property counters or stocks we’ll simply by a USDZAR futures contract. The future isn’t linked to the rand/ dollar via some sort of loose relationship that works sometimes and sometimes not –instead its contractually linked to the exchange rate – no questions asked and no doubts had.

Conversely our Prescient Balanced Fund, which already has significant offshore exposure, hedges back a portion of that exchange rate risk into rands (shown in dark blue below), avoiding a scenario like last year where funds with large offshore exposures got knocked by a strong rand rally. At the same time, it doesn’t miss out on rand depreciation, it earns the carry rate.

The key takeaway here is that everything that is taken as fact should be investigated before being regurgitated as fact.Rand hedge stocks may have improved balance sheets when the rand sells off, but their share prices don’t react with any degree of certainty. The same applies to stylised facts like “paying high fees is worth it for the performance”, “our funds are not benchmark cognisant” or “picking a few global single stock names like Apple or Nvidea gives broad-based global exposure”.

Asset management is as much a marketing game as it is a performance one, and investors often subconsciously place far too much weight on the former than the latter.

At Prescient Investment Management, we rather trade the fact than the narrative.

RUPERT HARE Head of Multi-Asset at Prescient Investment Management.

The global pensions shift and why SA needs

to be a part of it

By Sandy Welch Editor MoneyMarketing

According to former UK Minister of State for Pensions, Guy Opperman, one truth is unavoidable: retirement systems around the world are heading for an era of deep technological and cultural transformation – and South Africa is no exception.

MoneyMarketing editor Sandy Welch spoke to him recently when he was in South Africa as a representative of Keystone, a pension administration platform that delivers Defined Contribution pensions and long-term savings solutions. Opperman sees his role as advisory; governments and regulators approach him precisely because they want to understand how other nations have navigated reforms. He recounts how a meeting at an IRFA conference in September 2025 in Cape Town led to deeper discussions with multiple local organisations about potential auto-enrolment pathways, national schemes, and the need for institutions to ensure universal coverage.

Opperman explains that one global lesson stands above all: the shift from Defined Benefit (DB) to Defined Contribution (DC) works – if implemented well. He cites Australia as the “golden example”, where a 1990s DB system has become a powerhouse of DC super funds capable of shaping national infrastructure and long-term prosperity. A system that began in 1992 with no DC savings has grown into a AU$4.5tn, which is approximately US$3.2tn. One DC Superfund alone – the Aussie Super –has AU$387bn under management. They are now the driving force funding airports, keyworker housing and major infrastructure. “Your savings work for you – and for your country,” he says. “That’s the promised land.” At its core, Opperman believes the transition to DC is not just about individual savings, but about nation-building.

Opperman says: “There’s clearly a market for new products and upgrades in South Africa,” he says. “The appetite

for change is enormous.” But getting there is a political and cultural journey. Convincing individuals to take responsibility for long-term saving, especially when cash is tight, is difficult. Convincing governments to implement reforms whose benefits will only be felt a decade later, is even harder. Yet Opperman insists the payoff is transformative: a nation of savers whose pooled capital finances renewable energy, infrastructure and economic renewal. He points to pension-fund ownership of UK wind farms as the perfect “win-win”.

The trigger, he argues, is the coming wave of automatic enrolment. “The SA government will go ahead with auto-enrolment, there’s no doubt in my mind. The question is when, and in what shape,” he says, pointing to the Irish model as a template worth emulating.

In countries that have already embraced

“It’s inevitable that every major corporate, in South Africa and globally, will have to overhaul its systems within the decade”

it, from United Kingdom to Ireland, autoenrolment has forced providers to scale at extraordinary speed. Opperman points to Smart Pension, which runs on the Keystone platform and manages £9bn across roughly 100 000 employers: “That’s a huge payment run. Legacy providers simply couldn’t cope with that volume. They cannot take on mass new customers with their current tech.” Success, he emphasises, hinges on modern technology. The future will belong to those able to modernise at pace. “So many traditional DB and DC providers operate on very old platform systems,” he says. The opportunity, however, is obvious: upgrading technology would radically improve capability, member experience, and allow employers to offer a modern suite of financial wellbeing tools – from housing support to midlife assessments and personalised nudges.

For him, it’s inevitable that every major corporate, in South Africa and globally, will have to overhaul its systems within the decade. Some will choose providers as advanced as Keystone, others will adopt alternatives, but all will need modern platforms capable of real-time processing, investment routing and mobile-first engagement. Without this “essential plumbing”, he warns, autoenrolment cannot function.

For employers, the opportunity is equally significant. Modern platforms allow innovative benefits such as housing-deposit savings, rainy-day funds and midlife assessments –tools that improve retention, productivity and employee wellbeing. “These things change businesses,” he says. “They keep people working, healthy and financially confident.”

South Africa, he believes, is at the start of this long journey. But with regulatory reform, a “South Africa-first” savings ethos and modern digital infrastructure, the country can follow the same arc others have travelled. “Every nation begins with a single step,” Opperman says. “This is yours.”

How have global developments impacted the retirement industry?

Recent global events have highlighted the growing need for certainty in retirement planning. With geopolitical tensions and volatile markets, retirees relying solely on market-linked income face heightened risks. Market downturns have shown how drawing income from a living annuity can rapidly erode savings. At Glacier, our focus remains on developing solutions that strengthen clients’ post-retirement income security and long-term sustainability.

In today’s volatile market environment, where do life annuities fit within a comprehensive retirement income strategy?

A recommended retirement income and financial plan (preferably created long before your last day at work), should start with grouping your financial needs into three buckets:

• Essential living expenses such as rental, electricity and healthcare expenses. Variable expenses for needs such as entertainment, travel and hobbies.

• Discretionary savings for disposable income.

As a retiree, a life annuity provides a guaranteed income stream for life and can be structured to allow for an annual income increase, which would offset the potential pressure of inflation. It’s a good vehicle to cover the needs of the first bucket.

What are the key differences advisers should consider when comparing guaranteed life annuities with living annuities?

Advisers should start by helping clients clarify their financial needs. Key questions include:

• How long am I likely to live? A 60-year-old may need income certainty for 20 years or more while still benefiting from long-term market cycles.

• What are my expenses and required monthly income?

How much investment risk am I willing to take? Do I want to leave a legacy?

A life annuity provides a guaranteed income for life, typically ending on death. Because it is an insurance policy, clients have no control over the underlying investments and cannot adjust their income level. A living annuity, by contrast, gives clients full control over investment strategy and income drawdowns, and remaining funds pass to beneficiaries.

The importance of a guaranteed income for life

Asief Parker, Product Owner: Life Annuities, Glacier by Sanlam, shared some important insights on the importance of life annuities.

However, because it is market-linked, the value can fluctuate with market conditions. Clients also carry the responsibility of managing withdrawals to avoid running out of money. Ultimately, the choice depends on individual circumstances.

How can life annuities help mitigate longevity risk, and why is this risk often underestimated by clients?

The retirement problem many South Africans face is that only 6% are financially ready to retire. Most retirees seem to opt for a living annuity without fully understanding the responsibility they have taken on. It’s very common for retirees to be in a situation where they deplete their living annuity earlier than anticipated. By incorporating a life annuity as part of a holistic financial plan, you can mitigate your longevity risk (the risk of living longer than your money will last) as the life annuity provider guarantees an income irrespective of how long you live.

“A hybrid living annuity also allows a smooth shift from market-linked income to guaranteed income”

What structuring options are most relevant?

People have different needs and financial pressures in retirement, so one annuity product is seldom enough. Growing awareness of life annuities and their role in a holistic retirement plan has increased interest in blended strategies. This involves allocating part of your portfolio to a life annuity for lifetime income and inflation protection, while keeping the rest in a living annuity for flexibility. A hybrid living annuity also allows a smooth shift from marketlinked income to guaranteed income as needs and risk preferences change.

What role do interest rate cycles play in annuity pricing, and how should advisers time their annuity purchases, if at all?

Changes in interest rates have an impact on bond yields. Most insurers use bonds as the backing assets for life annuity liabilities. Therefore, if interest rates and bond yields increase, the starting income of a life annuity also increases (or simply, life annuities become ‘cheaper’). As with other investment choices, timing the market is not the best option.

How are product innovation and underwriting developments improving flexibility or outcomes within the life annuity space?

Through regulatory changes, actuarial insights on longevity risks and new asset classes, there has been innovation in product design and pricing. Modern solutions increasingly allow retirees to:

• Blend guaranteed income with market-linked growth

Choose inflation protection or guarantees for beneficiaries

Structure income to better match real spending needs.

Over the past few years, the annuity market has seen the introduction of Hybrid Living Annuities, deferred annuities, and life annuities with mixed escalations. Furthermore, some insurers have started using new underwriting methodologies, which aim to offer clients a more bespoke and fairer annuity price.

What common misconceptions do clients have about life annuities, and how can advisers position them more effectively as part of a blended retirement solution?

Two common misconceptions about life annuities are:

“I’ll lose all control of my money.” While pure life annuities do involve giving up control, modern structures can include guarantees to beneficiaries as well as estate protection.

• “Living annuities always perform better.” Market returns are unpredictable, and poor performance combined with high withdrawals can severely reduce your income over time.

Life annuities are best positioned as a guaranteed asset class within an overall investment strategy. This allows the financial adviser more leeway for the remaining assets to be invested in more growth assets.

What is your outlook for 2026?

Having experienced two shock events over the past 20 years – the Global Financial Crisis of 2008 and Covid – financial advisers and clients have developed a better appreciation and understanding of life annuities. Therefore, as a provider of these products, we expect demand for life annuities to continue to grow.

By Martiens Barnard Marketing Actuary at Momentum Investments

What is the best annuity?

Retirement income planning is complex because retirees want flexibility and certainty, growth and protection, and an income that lasts for life while also leaving a legacy. These competing priorities explain the love-hate relationship with annuities: each option delivers something valuable while exposing you to other meaningful risks.

For retirees, specifically those who consider or use a living annuity, five key risks matter: Drawing an income that is too high – a high starting income requires an unrealistic return.

• Market risk – poor returns, especially early into retirement, can permanently impair capital.

Inflation risk – rising prices erode purchasing power, forcing higher income withdrawals.

• Behaviour tax – switching between underlying investment components at the wrong time can reduce long-term returns. Longevity risk – living longer means income must last decades.

By managing these risks well, you can improve both income sustainability and your potential to leave a legacy.

Living annuity – loved for their freedom, disliked for their fragility

A living annuity offers control over the income you take and the choice of the underlying investments that can provide you with the opportunity to grow your investment value. At death, the remaining capital passes to your beneficiaries, making a living annuity attractive for legacy planning. The tradeoff is exposure to all five key risks.

Life annuity – loved for certainty, disliked for loss of control and no exposure to market growth

A life annuity provides income for life, regardless of market performance. They offer the strongest defence against longevity risk. Income can escalate at a fixed rate or be inflation-linked to address inflation risk directly.

The perceived drawback is the loss of control; your capital is exchanged for a predetermined income and cannot be accessed later. This can also cause some to fear dying early and leaving little to heirs. The income levels also reflect the interest rate environment at the time of purchase, which feels like a timing risk. However, the certainty of income removes the dependence on market returns.

“There is no universally ‘best’ annuity, only better alignment with the risks that genuinely matter to a given retiree”

Hybrid

annuity – loved for balance, misunderstood because it blurs boundaries

A hybrid annuity combines a guaranteed income component with a living annuity. The guaranteed income creates a stable floor, reducing pressure on the market-linked investments, which can now, if needed, be used to target a higher growth potential.

A hybrid annuity directly addresses the key retirement risks. The guaranteed portion can reduce the effective return required from market-linked assets. If the guaranteed income is inflation-linked, inflation risk can be reduced and because the guaranteed stream lasts for life, longevity risk is partially neutralised without giving up all flexibility.

Lastly, there is an initial reduction in the inheritance value, but the hybrid annuity may preserve the market-linked capital more effectively than a pure living annuity when drawing a realistic income and especially under muted market returns.

Bringing

it together

There is no universally ‘best’ annuity, only better alignment with the risks that genuinely matter to a given retiree. When you look at the choice through the lens of the five key risks and what you hope to leave behind, the love-hate debate becomes a much simpler question: what mix of certainty and flexibility will help your money last and still leave something for your family?

We have reimagined retirement income planning by enhancing the Retirement Income Option, the living annuity on the Momentum Wealth platform. You can add the Guaranteed Annuity Portfolio if you want to blend certainty and flexibility in one retirement income solution, like a hybrid annuity. This structure introduces stability, reduces reliance on volatile markets, and helps protect against several of the five key risks, without completely sacrificing flexibility, which many retirees value.

For more on the Reimagining Retirement campaign, visit our website at momentum.co.za.

Reimagining retirement

When your clients retire, they can now enjoy certainty and flexibility in one retirement income solution. The Retirement Income Option gives your clients the best of both worlds. By including a life annuity in the form of our Guaranteed Annuity Portfolio as an investment component in our living annuity, you can offer your clients the certainty of a guaranteed income, as well as flexibility and market upside.

We are dedicated to giving you every possible advantage to help your clients build and protect their financial dreams on their journey to success.

Speak to your Momentum Consultant or visit momentum.co.za

What financial advisers need to know about crypto right now

By Sandy Welch Editor MoneyMarketing

After a bruising downturn in 2022, followed by a powerful global resurgence, the cryptocurrency landscape has shifted once again – and financial advisers are having to navigate a market shaped as much by geopolitics as by innovation. Few people have had a closer view of these changes than Christo de Wit, Luno Country Manager South Africa, who has spent the past three years watching sentiment, regulation and technology pull digital assets through one of their most dramatic cycles yet.

“Coming out of 2022, you could feel momentum building,” he says. “The winds of change were blowing from the US: rising institutional adoption, regulatory clarity and, of course, the approval of Bitcoin spot ETFs. And markets responded.”

That shift was unmistakable. After bottoming out in late 2022, Bitcoin and key altcoins began climbing steadily as the US Securities and Exchange Commission softened its posture toward digital assets, and institutional giants pushed for ETF access. Capital poured into these new products, billions within months, fuelling one of the strongest rallies in the industry’s history and sending major cryptocurrencies to fresh all-time highs by early 2025. But the same political environment that boosted momentum also brought macroeconomic turmoil. The shift in US governance, rising tariffs and mounting geopolitical tensions triggered sharp volatility across risk assets. Crypto felt those shocks acutely. “It reminded investors that crypto remains, at its core, a risk-on asset. Bitcoin still reacts instantly to global uncertainty,” says De Wit.

The Trump paradox and the institutional whiplash De Wit calls it the ‘Trump paradox:’ the same forces that accelerated institutional acceptance also ignited the volatility that pulled markets back. Outflows from Bitcoin ETFs followed, roughly $750-m a week at the peak, but, he stresses, this needs context. “It’s nowhere near the billions that flowed in. And institutional vehicles are naturally more sensitive to macro shifts. When markets de-risk, ETFs move first.” That sensitivity played out earlier this year when tensions escalated between the US, Israel and Iran. “Immediately, crypto pulled back. And just as quickly, when indications suggested the conflict might not escalate further, prices rebounded.” Crypto volatility is no longer dictated solely by sentiment within the sector; it is now directly tethered to global macro events.

Is crypto becoming a safe haven?

Headlines in recent months have floated a provocative question: is crypto once again

behaving like a safe-haven asset? De Wit says that depends entirely on perspective. “In Iran, for example, where the nation faces wide-ranging sanctions, crypto acts as a literal safe haven and is one of the only ways to secure funds outside the traditional banking system.” That, he says, helps explain why Iranian inflows surged during heightened regional tensions.

“But in the US and much of the West, the immediate response to geopolitical risk is still de-risking from crypto. It’s two different realities coexisting.” Over time, he expects the ‘risk-on’ label to fade as adoption broadens.

When Wall Street booms, crypto often lags The relationship between crypto and the US equities market continues to intrigue analysts. “When the US markets are unusually strong, crypto tends to trail,” De Wit notes. “The inverse is also true.” He draws a comparison local advisers will recognise: the performance pattern mirrors that of the South African rand. “It’s not that the rand or Bitcoin correlate with each other because they don’t. But both tend to weaken against a very strong dollar. It’s about relative performance to US strength.”

Is regulation South Africa’s next big shift?

One area where South Africa is moving decisively is regulation. Crypto is now fully regulated under local financial-services laws, with further reforms expected. A major milestone came when government signalled plans to clarify how digital assets fit into exchange-control rules. “It’s essential,” De Wit says. “Our view is simple: if you hold or trade crypto on a South African-regulated platform, that’s an onshore asset. Once it leaves for an offshore exchange or private wallet, it becomes externalised. We need clear rules that reflect that.”

Tax reporting is also tightening. With the new international Crypto-Asset Reporting Framework (CARF) data-sharing requirements, crypto platforms must capture tax residency information from all new users, something Luno has already implemented. “We haven’t seen pushback,” he says. “We’ve been educating customers about tax since 2018. There were no surprises.”

How South Africans are using crypto

South Africans continue to use crypto primarily as an investment vehicle. But stablecoin adoption is rising fast. “While crypto prices were falling last year, stablecoin volumes rocketed,” De Wit says. “That demand is coming from institutions. They’re using stablecoins in treasury operations and settlement and that signals a major shift.”

On the retail side, Luno’s payment tool, LunoPay, is seeing growing usage for everyday purchases, aided by the ability to pay via QR

code across a wide network of merchants. The biggest structural shift, though, may come from the rise of the ZAR-backed stablecoin, ZARU, being developed in partnership with major financial institutions. “The utility for settlement is enormous,” he says.

The rise of the Blue Chip Bundle

One of Luno’s most striking innovations was introducing tokenised stocks to South Africans – blockchain-based representations of US equities. “For South Africans, investing in US shares traditionally involves brokers, forex and exchange-control allowances. Tokenised stocks remove all of that. You invest in rand and track the share’s performance.”

But many consumers found the concept intimidating. Enter the Blue Chip Plus Bundle, combining Bitcoin, Ethereum and seven major tech stocks into a single product, automatically rebalanced each quarter. “The minimum entry is R20. It’s designed for simplicity – an easy way to gain diversified exposure without having to manage allocations yourself.”

Cybersecurity is an unavoidable frontier

With geopolitical tensions high and statebacked hacking groups increasingly active, cybersecurity remains a centrepiece of crypto risk management.“ Our security protocols are reviewed daily,” De Wit says. Most customer funds are stored offline in cold storage, and customers are urged to enable strong passwords, two-factor authentication and, crucially, to disable crypto sends unless needed.

What’s next

Looking ahead, De Wit sees two dominant themes shaping the next four-year cycle: AIdriven market participation and tokenisation of real-world assets. “Tokenised stocks were the start. Next will be property, contracts and broader real-world assets moving on chain. Meanwhile, institutions are laying blockchain rails behind the scenes. This includes payment networks, settlement systems and treasury infrastructure. Retail built the road. Institutions are now driving the trucks.”

The message for advisers? Crypto is no longer a fringe asset. It’s becoming structural. “And that,” De Wit says, “is where the real growth will come from.”

Crypto for kids

Following the successful launch of Binance Junior in December 2025, Binance has introduced new features aimed at making saving and learning about crypto engaging and accessible for families. Designed for kids and teens aged 6 to 17, Binance Junior already provides a secure, parent-controlled platform that encourages positive savings habits and financial literacy from an early age.

The latest updates introduce a Red Packet gifting feature, Merchant Pay options, and seamless integration of the educational ‘ABCs of Crypto’ eBook directly within the Binance Junior app. These enhancements create a richer, more interactive experience for families to explore.

Binance Junior empowers parents to safely guide their children through the world of digital assets. Parents maintain full control, with the ability to enable or disable selected features and monitor all account activity through an easy-to-use interface. These new features further strengthen that foundation by allowing children, with parental approval, to receive crypto gifts, make approved payments, and access educational content that demystifies crypto in a fun and approachable way.

As part of this expansion, parents can now enable non-parental transfers from adult Binance accounts to Junior accounts. This includes Red Packet gifting and regular peer-to-peer (P2P) transfers, allowing relatives and family friends to send crypto gifts to their children’s Binance Junior accounts. To ensure security and responsible use, receipt limits are capped at an annual threshold of $12 000 for both crypto transfers and Red Packet gifts. Once this limit is reached, Junior accounts will no longer be able to accept additional crypto transfers until the next cycle. Parents retain full control to activate or deactivate these features, so families can tailor usage according to their comfort level.

Beyond that, the new Merchant Pay feature enables Junior users to make payments at selected merchants, while excluding restricted merchant category codes such as gambling and tobacco. This family-friendly approach helps teach responsible spending and saving, giving children practical experience managing digital finances in a safe environment.

Binance’s mission with Binance Junior extends beyond providing a savings tool. It aims to foster financial education and intergenerational learning. The ‘ABCs of Crypto’ educational book is now fully integrated into the app as a mobile-friendly version. This illustrated eBook breaks down complex crypto concepts into easy-to-understand lessons, helping young users build confidence and curiosity about the digital economy.

Yi He, Binance co-CEO, comments, “Binance Junior is a family-focused platform designed for children to manage their allowance with savings and payment features. By helping children develop good money management habits early on, we hope to empower families to build a strong foundation for their financial future.

“Many of the new features were inspired by valuable feedback from our community. Our goal is to make it easier and more fun for families to teach and learn about crypto together in a safe environment. It’s important that our children are prepared for a future where digital finance plays a vital role,” she adds.

Looking ahead, Binance envisions Binance Junior as a platform for users to grow in-line with Binance’s broader goal of nurturing a new generation well-prepared for a financially digital future.

For families looking to start or expand their journey into the world of crypto savings and education, these new features offer meaningful ways to save, send, pay, and learn – all with safety and parental control at its core. To explore Binance Junior and its latest updates, visit www.binance.com/en/binance-junior

Nedbank partners with Crypto.com

Nedbank has formed a strategic partnership with Crypto.com to harness the power of blockchain technology and digital assets for developing advanced payment, settlement, and liquidity solutions across Africa – subject to compliance with the necessary regulatory requirements. The collaboration positions Nedbank as a leading gateway for secure, regulated blockchain finance on the continent, driving transparency and efficiency of cross-border transactions, signalling a significant shift in the region’s financial landscape.

As global trade and financial ecosystems evolve, Africa’s dependence on legacy payment rails has introduced challenges, including high settlement costs, currency volatility, and geopolitical exposure. Nedbank’s vision is to establish a compliant, blockchain-enabled payment infrastructure that enhances resilience while integrating seamlessly with traditional banking systems.

Through Crypto.com’s world-class digital asset platform and blockchain settlement technology, Nedbank aims to bridge traditional banking and digital finance, offering real-time, low-cost, and secure settlement options in both South African rand (ZAR) and on-chain US dollars (USDC).

The initiative will enable Nedbank to serve both retail and commercial banking clients, addressing the growing demand for modern financial solutions. Whether for individuals, SMEs, or large corporates, the partnership will enable clients to:

• Seamlessly convert between ZAR and USDC in real time via secure digital channels

Access digital dollar liquidity for trade, remittance, and treasury operations

Benefit from daily net settlement between Nedbank and Crypto.com, ensuring stability, transparency, and regulatory oversight.

This collaboration will empower businesses to transact in digital dollars across Africa, facilitating trade, investment, and payment flows without reliance on traditional international intermediaries.

Subject to applicable legal and regulatory requirements, the rollout will be implemented in phases, commencing with individual clients and extending to juristic entities over the next 12 months.

Nedbank’s strategy reflects a broader commitment to financial innovation and continental integration. By connecting banks, businesses, and regulated crypto asset service providers (CASPs) through blockchain, Nedbank aims to establish an African payment backbone that is:

Fully compliant with domestic and cross-border regulatory frameworks

• Interoperable with existing financial systems

• Resilient to global payment disruptions and currency risks.

This initiative aligns with the African Continental Free Trade Area (AfCFTA) objectives and supports South Africa’s leadership role in digital financial transformation.

Simon Marland, Managing Executive for Automation, Blockchain and Analytics at Nedbank, says: “Africa’s future competitiveness depends on how effectively we integrate modern financial technologies into the heart of trade and commerce. By leveraging Crypto.com’s blockchain capabilities, Nedbank is building the foundation for a more resilient, inclusive, and future-ready financial ecosystem, one where South African and African businesses can transact seamlessly and securely on a global scale.”

Karl Mohan, EVP, Financial Services and GM, International of Crypto. com, adds: “Our collaboration with Nedbank underscores Crypto.com’s commitment to expanding financial access through blockchain innovation. Africa represents one of the most dynamic frontiers for digital finance, and by working with a trusted institution like Nedbank, we can jointly enable secure, compliant, and efficient access to digital assets for businesses and individuals alike.”

Herman de Kock, Managing Executive, Nedbank Mid Corporate, comments: “Nedbank understands that businesses require easy payment and trade capabilities both domestically and cross-border. By partnering with Crypto.com, we’re driving innovation that directly responds to our clients’ needs, enabling them to achieve their growth ambitions.”

A new frontier in multi-currency stability

In a digital-asset landscape long dominated by single-currency stablecoins, a South African born innovation is attempting something far more ambitious: a token backed not by one economy, but by many. IS21, launched by Intershare in collaboration with the global digital asset management BlueAsset Group, positions itself as the world’s first multi-currency token anchored to a basket of the rand, dollar, euro – and soon, gold. For investors navigating global volatility and client expectations, this development could mark the next stage in strengthening currency resilience in an increasingly destabilised world. While the token is being launched initially in South Africa, it is designed for international digital markets.

A vision born in a volatile world

For CEO Pierre Oosthuizen, the impetus dates back four years, long before stablecoins became mainstream headlines. “This needed to be a trading currency that everyone could benefit from,” he says. That philosophy is grounded in the simple belief that when major currencies work together, they create buying power and stability no single nation can replicate.

“It’s about putting value somewhere that doesn’t depend on which country is doing what tomorrow,” Oosthuizen explains. “So the idea was don’t choose one currency, leave it everywhere.”

The result is a token backed by equal proportions of the top global trading currencies, starting with the rand, the dollar and the euro. The ‘21’ in IS21 comes from the eventual inclusion of the top 20 global trading currencies plus gold, which Oosthuizen describes as the final stabilising anchor.

Beyond stablecoins

While many digital assets promise price stability, IS21’s equal-weighting mechanism sets it apart. Instead of a dollar-pegged model, the value is derived from a diversified basket, giving it an inherent shock absorber. If one currency collapses, it impacts only 4.76% of the token’s value. “It makes IS21 unbelievably safe, especially for institutions,” Oosthuizen notes. Insurance firms and asset managers, he says, have already signalled interest, which is a notable development

in a sector that scrutinises digital assets with caution.

COO Peter Fairbanks, who comes from traditional finance, sees the timing as ideal. “Digital currency is no longer experimental,” he argues. “We’re out of the baby steps phase. Legislation is coming in globally; stablecoins are launching at rapid speed because this is the future.”

Inside the technology

For advisers accustomed to managing crossborder exposure, currency risk and liquidity constraints, IS21’s proposition is straightforward: a diversified currency reserve in a single digital instrument, with blockchain speed and transparency layered on top.

Why start with crypto elements?

Though IS21 will ultimately be backed by fiat reserves held in each issuing jurisdiction –dollars in the US, euros in Ireland, rand in South Africa – the early stage relies partly on crypto equivalents such as USDT and USDC. This was a deliberate strategic decision. “We needed an easier entry point into the decentralised world before moving into multiple regulatory jurisdictions,” Oosthuizen explains. “But over time, those digital elements will fall away and be replaced entirely by real fiat reserves.”

A detailed roadmap outlines how the remaining global currencies – and gold – will be incorporated. Fairbanks adds, “Gold is coming soon. In times of global uncertainty, it remains the world’s most trusted stabiliser. Adding it boosts currency-risk balance even further.”

From institutions to everyday users

So what is the real-world purpose of IS21?

According to Fairbanks, the token has a broad set of use cases spanning both institutional and retail investors. “For institutions and asset managers, it’s a balanced, stable reserve,” he explains. “It’s excellent for cross-border transfers, where you have multiple major currencies in one place. And for global trading and treasury functions, it offers speed, safety and efficiency.”

Retail investors, meanwhile, can use IS21 as a stability-seeking store of value – something increasingly important in markets where local currencies depreciate rapidly. Oosthuizen emphasises one feature in particular: IS21 benefits not just users, but the underlying countries themselves. Because each fiat component sits within its respective jurisdiction, participating economies gain from transactional flows and liquidity benefits. “It becomes shared growth,” he says. “Everybody has a fair part in trade.”

From a technical standpoint, the token is engineered for trust first. CTO Christian De Beer explains that the team designed IS21 “from the ground up with zero tolerance for security failure”. The developers selected the secure Ethereum blockchain for its proven resilience. It operates as Ethereum blockchain as an ERC-20 token, enabling transparent on-chain verification of circulating supply and digital reserve balances. Independent third-party attestation procedures are expected to periodically verify reserve balances and token supply.

IS21 is also built on top of FireBlocks, an enterprise-grade platform that provides secure infrastructure for moving, storing, and issuing digital assets. Customers can currently connect to the Intershare app and platform via their USDT wallets, but access through trusted local and international exchanges will be added soon. Institutional and retail participants can acquire, transfer or redeem the token subject to applicable onboarding and verification processes.

Transparency is another cornerstone. “You can check the reserves live,” De Beer says. “They update continuously, and the minting process is tied directly to reserve verification. There’s no point where manipulation can occur. With blockchain, it’s fully transparent, fully audited. No middlemen. No trust gaps.”

The vision ahead

Looking forward, Oosthuizen’s ambitions are unapologetically bold. “My vision is for IS21 to become the world’s major token for moving funds, purchasing and trading,” he says. Not through exclusion, as he suggests happens in certain geopolitical currency blocs, but through inclusion. “Everybody gets a fair part. No currency dominates another. That’s the way forward.”

With cross-border payments still slow, opaque and expensive within traditional banking, IS21 aims to position itself as a fast, transparent, globally neutral alternative. For financial advisers, it represents the meeting point of old-world currency management and new-world digital infrastructure. It’s a product that's built for an era where stability is no longer found in a single jurisdiction, but in diversification itself.

By Alicia Kamfer

Masthead Pretoria Area Manager and Compliance Officer

WWhat UMAs need to do now to strengthen compliance for COFI

ith the upcoming Conduct of Financial Institutions (COFI) Bill and Omni-Risk Return (Omni-RR) set to replace much of the existing legislation to create a more harmonised regulatory framework for South Africa’s financial services sector, underwriting management agencies (UMAs) will face growing expectations around governance, data quality and compliance.

The role of UMAs

UMAs have become a key part of South Africa’s short-term insurance sector. They represent insurers through binder agreements, performing specialist functions such as underwriting, claims management and policy administration. They bring technical expertise and efficiency to the process.

In the insurance value chain, UMAs sit between the insurer and financial advisers (the distribution channel). The insurer provides the cover and carries the risk; the broker provides advice and deals directly with the client; and the UMA handles the technical and administrative side that keeps everything running smoothly. While clients usually interact with brokers rather than UMAs, their behind-the-scenes work directly influences how effectively policies are managed and how fairly claims are settled.

The current compliance landscape

Because UMAs operate under delegated authority, they face a unique mix of compliance and operational responsibilities. To operate as a UMA, an entity must meet both Financial Advisory and Intermediary Services (FAIS) licensing and insurance regulatory requirements. This usually means holding a Category I FSP licence to perform intermediary services and being formally approved by an insurer as a binder holder under the Insurance Act. Like all FSPs, UMAs must meet the FAIS Fit and Proper requirements relating to competence, operational ability and financial soundness.

They also need strong governance structures, experienced underwriters, sound financial management and robust systems that can produce accurate reports for insurers and regulators. Beyond licensing, UMAs have several ongoing compliance duties, including:

• Treating customers fairly (TCF) and managing conflicts of interest

• Keeping detailed records for at least five years Ensuring compliance with the Protection of Personal Information Act (POPIA)

Maintaining accurate, auditable data to support insurer oversight.

Before signing a binder agreement, a prospective UMA should take a careful, informed approach. The agreement defines their authority, accountability and compliance obligations. Terms around remuneration, indemnity, data ownership and reporting must be fair and transparent, and the UMA should ensure it has the systems and staff to maintain the requirements stipulated in the binder agreement. Binder fees must stay within regulatory limits, and UMAs should understand audit rights and performance expectations upfront. In essence, the binder agreement is both a contractual agreement and a compliance commitment.

Because the insurer remains ultimately responsible for all decisions an UMA makes, oversight is continuous. Insurers typically conduct annual audits, review underwriting and claims processes, and require regular reports on performance and complaints. For UMAs, demonstrating strong governance and transparent reporting is essential.

Common pitfalls and compliance risks

UMAs often run into difficulties when they overstep their binder authority or fail to follow insurer procedures. Common issues include:

• Making underwriting or claims decisions beyond their mandate

Weak recordkeeping or inconsistent claims outcomes

Delayed or incomplete reporting to the contracted insurer

• Conflicts of interest, particularly where a UMA has links to a brokerage

Non-compliance with binder fee limits or justification requirements

Failing to meet reporting and screening requirements under the Financial Intelligence Centre Act (FICA).

These challenges usually stem from gaps in governance or insufficient monitoring – areas that can be strengthened.

Preparing for COFI and the Omni-Risk Return

The upcoming COFI Bill and Omni-RR are set to bring significant changes to the insurance industry and UMAs will be directly affected. COFI will replace and consolidate existing legislation in a phased manner, including those that apply to UMAs, such as the FAIS Act and the Long-Term and Short-Term Insurance Acts. While the exact implementation date of COFI is not yet confirmed, many in the industry believe it will take effect sooner rather than later, giving UMAs good reason to start preparing now. COFI will also raise expectations around governance, reporting and fair value assessments. Both insurers and their delegated partners will have to show how their operations deliver fair outcomes for customers throughout the product lifecycle. Meanwhile, the OmniRisk Return will significantly expand data and reporting requirements across the insurance value chain. Insurers will depend heavily on UMAs to provide accurate, detailed information for their submissions. This means UMAs must maintain strong data management processes. UMAs can also view this shift as a positive opportunity – the increased focus on data can enhance both business and compliance outcomes. When data management is integrated with good governance, it strengthens oversight, improves decision-making, and aligns compliance with effective conduct and fair customer outcomes. Together, COFI and the Omni-RR represent a shift towards greater transparency, accountability and integration between insurers and their partners. UMAs that strengthen their compliance readiness now will be better equipped to meet these demands.