MoneyMarketing February 2026

28 FEBRUARY 2026

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WHAT’S INSIDE YOUR FEBRUARY

ISSUE:

THE CHANGING ROLE OF PRIVATE EQUITY

Expanding access to unlisted investments takes on a new meaning for advisers, portfolios and long-term client outcomes.

Cover story + Pg20-21

EMPLOYEE BENEFITS UNDER THE MICROSCOPE

Unpacking how the latest workplace needs are reshaping benefit structures and long-term value for both employers and employees.

Pg10-13

BUILDING A SUCCESSFUL ADVISORY BUSINESS

The strategies, skills and structures that are needed to turn trusted advice into sustainable growth.

Pg18-19

SHARI’AH INVESTING GOES MAINSTREAM

We explore ethical, faith-aligned investment principles and how they’re shaping modern portfolios.

Pg22-25

THE IMPORTANT ROLE OF LINKED INVESTMENT SERVICE PROVIDERS (LISPs)

How investment platforms are simplifying choice, access and administration for advisers and their clients.

Pg26-29

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Private markets: The new tactical position in portfolio

By Siobhan Cassidy MoneyMarketing Contributor

Private markets, once a peripheral asset class, are rapidly becoming central to building resilient, future-ready portfolios. This shift reflects a structural change in where growth, diversification and long-term value are being created. This global trend is increasingly visible in South Africa, where pension funds, wealth managers and high-net-worth investors are recalibrating portfolios to include private equity, private credit, infrastructure and other alternative assets.

For decades, portfolio construction followed a familiar formula: equities for growth, bonds for stability, and real estate for long-term appreciation. That framework is increasingly under pressure in a world of heightened volatility, rising correlations, a shrinking public market universe, and accelerating innovation outside the listed space. As public markets become more concentrated and reactive to macro sentiment, private markets are emerging as a tactical tool for advisers seeking differentiated outcomes for clients.

share of corporate growth as more businesses raise capital privately and stay unlisted for longer – particularly in growth, technology and mid-market opportunities,” says Ord. At Alexforbes Investments, Gyongyi King, Chief Investment Officer: Private Markets, notes that as they “have witnessed increasing correlations among listed asset classes, such as equities and bonds, private markets have become pivotal in driving diversification within portfolios. Not only are alternative assets a key component of our tactical asset allocation but are key in driving long-term strategic outcomes for investors.”

Data from institutional investors tracked by Preqin, a global authority on private markets intelligence, shows portfolios steadily moving away from the traditional 60% equities/40% bonds model. Average allocations now resemble 50% equities, 30% bonds and 20% alternatives, incorporating private equity, private credit and infrastructure. This shift is driven not only by volatility in public markets but also by investors seeking uncorrelated return streams and access to businesses still in early stages of growth, where strategic engagement can add value over the medium to long term.

“The traditional 60/40 portfolio model wasn’t built for today’s conditions,” says Stephan Hartzenberg, Group Director at PIM Capital, a global business specialising in fund design and administration across asset classes and markets. “Public markets have become more correlated across regions, more reactive to macro sentiment, and more constrained by regulation and short-term pressures.” He adds that as the universe of listed companies shrinks, investors who rely solely on public markets are accessing a smaller, more mature opportunity set.

Rory Ord, Head of Private Markets at 27four Investment Managers, agrees that private assets are becoming a core engine of portfolios rather than a niche bolt-on. “Public markets capture only a certain

A growing share of value creation is taking place outside public markets. Sean Neethling, Head of Investments at Morningstar South Africa, points to the US, “where companies such as SpaceX, OpenAI and Stripe – so-called unicorns valued at more than $1bn –represent substantial value creation occurring entirely in private markets”. Beyond the regulatory burden and constant performance scrutiny associated with listed markets, Samantha Pokroy, founder and CEO of private equity firm Sanari Capital, says companies are staying private for longer simply because they can, thanks to the increased availability of private capital.

As public markets increasingly reflect later-stage, mature businesses, private markets provide access to earlier growth phases, operational transformation, and infrastructure development. For advisers, this creates opportunities to align client portfolios with businesses that are innovating and shaping longterm economic growth. Global data suggests the expansion of private markets represents a structural change. Cameron Joyce, Head of Research Insights at Preqin, says: “As we look toward 2030, private markets are entering a new era of growth – one defined by innovation, resilience and strategic reallocation. With alternative assets forecast to reach $32tn in AUM by the end of the decade, this transformation is not only cyclical but structural.”

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PARTNERSHIP THAT POWERS PROTECTION

Continued from previous page

The Preqin Private Markets in 2030 Report sees private equity outperforming public markets over the long term “owing to its ability to identify and support bestperforming businesses”. The report notes: “Over the 10 years ending March 2025, the Global Private Equity excluding VC Preqin index outperformed the MSCI World TR index. Furthermore, we believe the transition of companies from public to private ownership represents an ongoing structural trend.”

Private assets can also play a stabilising role within diversified portfolios. Tending to behave independently of daily market swings, private assets can offer resilience in uncertain conditions. Longer investment horizons and active ownership models often support outcomes that differ meaningfully from public market benchmarks. “An allocation to alternative asset classes enables participation in a wider universe of investments and allows us to reduce volatility within our portfolios,” says King.

“Institutional demand for private markets has been building for several years, supported by regulatory changes”

Ord unpacks the mechanics of this: “Private assets bring exposure to idiosyncratic company or project cashflows, often underpinned by contractual income or long-term service demand rather than daily market sentiment. Return pathways are driven by operational improvement, financing structures and value creation plans over several years, which can reduce markto-market volatility at the total portfolio level and help investors harvest an illiquidity premium where structures are well designed.”

Pokroy points to the role of sentiment in public markets: “Valuations can move sharply on shifts in investor mood, macro headlines or short-term volatility – often disconnected from underlying fundamentals. Private market valuations, by contrast, are more firmly anchored in fundamentals.

“This must, of course, be balanced by the weakness of private market valuations, which rely more heavily on judgement and subjective assumptions,” says Pokroy. “Valuations are also not continuous and thus can demonstrate artificially low volatility as compared to public markets and can reflect outdated conditions.”

Once the preserve of pension funds, sovereign wealth funds and large institutions with patient capital, access to private markets is broadening. Ord notes that

institutional demand for private markets has been building for several years, supported by regulatory changes such as the increased ability of South African retirement funds to allocate to private assets under Regulation 28.

“There is growing interest from wealth managers and high-net-worth investors, helped by feeder funds, fund of funds and other structures that lower minimums and smooth liquidity, with global trends also pushing towards broader retail access,” he says.

Noting that recent regulations in the US and Europe were also actively opening pension fund access to private assets, Morningstar’s Neethling says “by broadening access to these assets, investors are able to diversify investments and participate in parts of the economy that potentially offer differentiated growth prospects”. Feeder funds, evergreen vehicles and interval funds allow smaller investors to participate while maintaining longterm strategy, providing advisers with tools to integrate private assets without compromising portfolio governance or liquidity requirements.

Private markets offer exposure to the real economy in ways public markets cannot. Well-constructed private market programmes provide access to areas critical to long-term growth, including renewable energy, social infrastructure, and enterprises focused on economic transformation. Ord points to specialist strategies, such as 27four’s Black Business Growth Funds, that aim to deliver both financial returns and social outcomes, including job creation and support for historically disadvantaged entrepreneurs. For advisers, this dual focus allows client portfolios to align with broader societal goals while pursuing long-term wealth creation. Pokroy agrees: “Institutional investors have come to appreciate private markets’ connection to the real economy, valuing outcomes such as job creation, ESG, sustainability and social impact alongside financial returns.”

As access to private markets widens, the role of advisers is increasingly strategic. Portfolio construction requires balancing liquidity, time horizons, risk tolerance and client expectations while integrating private market allocations into broader portfolio frameworks. Educating clients about valuation practices, illiquidity premiums, and long-term participation is critical to harnessing the full potential of private assets.

“Private markets are here to stay,” says King, who adds: “Selecting the right players to back will be a key driver of investment growth and wealth creation in the next decade and beyond.”

As the year gathers momentum, February’s edition of MoneyMarketing takes a close look at the forces shaping advice practices and investment decision-making.

Private equity continues to become more mainstream, raising important questions for advisers around access, liquidity and suitability. In this issue, we unpack what this growing asset class means in practice, and where it genuinely belongs within a well-constructed portfolio.

Employee benefits also remain firmly in focus. With rising cost pressures and a workforce demanding more flexibility and purpose-driven outcomes, employers and advisers alike are being challenged to rethink traditional benefit structures. Our coverage explores how to drive better outcomes for both businesses and employees.

Boutique asset managers are a reminder that size is not always synonymous with strength. We examine how specialist managers are carving out niches through conviction-led strategies, disciplined risk management, and strong alignment with investors.

We also turn our attention to Shari’ah investing, an area of growing relevance as advisers seek inclusive solutions that meet diverse client needs while maintaining robust investment principles.

For advisers looking to future-proof their businesses, our features on building a successful advisory practice highlight the importance of client trust and the operational foundations required to scale without losing personal connection.

We also explore the role of Linked Investment Service Providers, unpacking their value proposition, regulatory context and the critical role they play in simplifying complexity for both advisers and investors.

As always, our aim is to equip you with insight that is practical, balanced and relevant, helping you to run your business with confidence and clarity.

Stay financially savvy,

Sandy Welch Editor, MoneyMarketing

Note: If you subscribe to our MoneyMarketing newsletter, see QR code on the cover, you will receive a special discount off a News24 or Netwerk24 subscription*.

*Offer available to new subscribers only.

“As global markets continue to shift, one thing is clear: the future of sustainable wealth will be shaped by those who embrace the full breadth of private market opportunities,” concludes PIM Capital’s Hartzenberg.

Kim Rassou, Head of Discretionary Fund Management (DFM), Symmetry

Kim Rassou has over 20 years of experience in financial services, spanning portfolio management and analysis, investment solutions, manager research, asset allocation, distribution, as well as strategic initiatives. Kim holds a BCom Honours degree in Finance from the University of the Western Cape and an MBA in Finance from Stellenbosch Business School.

How did you get involved in financial services, and was it something you always wanted to do?

I didn’t grow up imagining a career in financial services. I was raised in the Cape Flats and went to Harold Cressy High School in Cape Town. We grew up with very little, and we never spoke about money or long-term planning at home. My parents had limited opportunities to study further due to apartheid – my dad was incredibly intelligent but became an artisan – so financial literacy simply wasn’t part of our world. I initially studied accounting, and my path into financial services happened more by chance than intention. I grabbed the opportunities that came my way: starting out in back-office operations at Coronation and later becoming an investment analyst at Satrix. It was during that time that I realised how much of a difference I could make by helping ordinary South Africans make better financial decisions. That sense of purpose pushed me to invest in my own education. I completed a postgraduate degree in Finance and Investments and later an MBA specialising in Finance – strengthening both my technical expertise and my ability to influence strategically. These studies anchored my commitment to helping shape a more inclusive and informed financial future for South Africans.

What was your first investment – and do you still have it?

My first real experience with saving came from a simple BOB T savings account my parents opened for us when we were young. We saved our holiday money, birthday money – whatever small amounts we could. Over time, those little contributions grew enough to help fund my first year at university. That taught me one of the most powerful lessons in finance: small, consistent savings can change your future. I don’t have that account anymore, but I’m still an FNB client today.

What have been your best – and worst –financial moments?

Best: My best financial moment was being able to create stability and opportunity for my family, something my parents never had access to. Building a foundation of generational

security from where I started is something I’m incredibly proud of. I remained cautious with money and learnt early in life the importance of saving for a rainy day.

Worst: My toughest financial period was figuring out how to fund my own studies. This taught me grit – the combination of passion, perseverance, and sustained effort toward long-term goals. With very little support, I had to self-fund most of my education, studying part-time while working. Balancing everything was overwhelming at times, but it taught me resilience, discipline, and the importance of creating opportunities even when resources are limited.

What are some of the biggest lessons you have learned in the finance industry?

A few lessons have stayed with me throughout my journey:

• Education changes outcomes.

• We’re entrusted with investing the hard-earned savings that people rely on for a dignified retirement.

Start early, even if the amounts are small. Time in the market beats timing the market.

• Ignore the noise and stay focused on long-term goals.

• Compounding is one of the most powerful, and underrated, forces in investing.

Simplicity often wins.

Markets will humble you – stay grounded.

• Good advice matters.

• Purpose leads performance.

What makes a good investment in today’s economic environment?

In a volatile market where asset prices have run hard, valuations are stretched, and uncertainty remains elevated, it’s more important than ever to focus on delivering consistent, risk-adjusted returns. Strong investing rests on sound valuation principles, disciplined risk management, and realistic expectations about future outcomes. Last year was an excellent one for our clients. We had positioned the portfolios with meaningful exposure to South African assets well before sentiment turned, allowing us to benefit from the local market’s 40% rally. But at Symmetry, performance is never

about a one-year wonder. What matters most – and what I’m proudest of – is our top-quartile performance over 10 years. Our investment process has enabled us to deliver a robust, decade-long track record while prioritising stability through periods of market stress. In our living annuity solutions, we blend hedge funds and smoothed bonus strategies to deliver meaningful returns with built-in downside protection – supporting retirees with more stable, dependable income outcomes.

What finance/investment trends and macroeconomic realities are currently on your watchlist?

Some of the key themes we’re watching closely include:

The ongoing evolution of DFM models and how they support better adviser and client outcomes.

• Growing interest in private and alternative assets. With the shrinking listed universe, more retail investors are seeking inflation-beating opportunities, but access remains limited due to liquidity constraints – something we are actively exploring at Symmetry.

• The rising use of hedge funds by investors seeking downside protection in case of a market sell-off.

Global de-dollarisation, which is reshaping currency dynamics and long-term capital flows.

• A highly polarised geopolitical environment, influencing volatility, commodity markets, supply chains, and global risk sentiment.

• The commodity and AI booms –understanding what’s driving them, how sustainable they are, and how long these themes may persist.

AI’s accelerating impact on financial services, from research to portfolio construction to client engagement.

• Symmetry’s own technology journey, where we’ve invested in digital tools to enhance service delivery, deepen adviser engagement, and scale our capabilities.

Having a coherent plan in 2026 is imperative

Compiled by Sandy Welch Editor, MoneyMarketing

Investing is rarely black and white. It’s a delicate balancing act between fear and greed, risk and reward, the big and the small. At the recent PSG Asset Management Outlook Event, Justin Floor, Head of Asset Management at PSG, describes the challenge: “You’ve got to try and figure out where the truth lies. Having a consistent, predictable, systematic approach to get over your own biases is critical to investing.” For financial advisers, this philosophy is particularly relevant. It underscores the value of working with fund managers who combine disciplined research with an adaptive strategy, an approach PSG has honed over nearly 30 years. Floor explains that a key part of their process is identifying quality assets that the market may be overlooking: “We’re trying to find things that are out of favour or going through temporary issues, where the market is mispricing those risks on the negative side.”

A recap of 2025

Last year offered valuable lessons for advisers and clients alike. Globally, asset returns were strong, yet the rand’s strength dampened offshore gains. While the S&P 500 delivered an 18% return in dollars, rand investors barely kept pace with inflation. Outside the US, however, opportunities were abundant. Emerging markets, including South Africa, stood out. The JSE delivered a remarkable 41% return in rands, with property also performing well. Local fixed income performed exceptionally, driven by a repricing in South African bond

yields and inflation targeting moves. The All Bond Index returned 24% in rands, the best year on record, highlighting that bonds in emerging markets can sometimes outperform expectations. Floor emphasises the lesson: “If you buy something cheaply and the embedded prices are too negative, you can do very well, even if things only mildly recover.”

In equities, however, the gains were concentrated. “Seventy-five percent of the return came from four areas: gold miners, platinum miners, MTN and Naspers,” notes Floor. Narrow rallies like these remind advisers that diversification remains crucial, both domestically and internationally.

Diversification beyond the norm

PSG’s global equity strategy reflects this philosophy. Floor explains: “We have a much more diversified portfolio than the MSCI World, with less US exposure and more emerging markets, Europe and the UK. That approach has really paid off.” Emerging markets, often overlooked in a US-centric world, offer attractive valuations and growth potential, a point advisers can communicate to clients seeking balanced, long-term returns.

Domestically, smaller and mid-cap companies present unique opportunities. Many of these firms are neglected by larger managers due to scale constraints, yet they can deliver idiosyncratic growth. Southern Sun and Rhodes Food Group are examples of companies where PSG identified value before broader market recognition. These opportunities often align with cyclical tailwinds such as stable interest rates or rising tourism.

Commodities and gold

Another theme advisers should watch is commodities. Historically, commodities perform

“A consistent investment philosophy, combined with careful research, disciplined positioning, and active risk management, is essential”

EARN YOUR CPD POINTS

well in weak-dollar environments, providing both portfolio diversification and inflation protection. South African investors have an edge, Floor notes, due to local exposure and a deep understanding of the mining sector. Gold, long considered a store of value, still offers portfolio benefits, though speculative activity means cautious positioning is warranted.

Practical portfolio insights

Floor emphasises transparency in fund positioning: “Your clients own shares and securities in our funds. It’s important you know how those are positioned and the thinking behind them.” PSG’s balanced fund currently holds around 30% domestically focused equities, 17% rand-denominated fixed income, and 35% offshore and resourcelinked assets, achieving a roughly 50/50 split between domestic and international exposure. This measured approach balances risk while seizing opportunities where they arise. Insurance strategies also play a role in PSG’s risk management. Floor likens them to home insurance: “You’d rather your house doesn’t burn down, but if it does, you’re very glad you have it.” Using instruments like put options, the team cushions portfolios against downside events, generating liquidity to reinvest when markets offer value.

Key takeaways for advisers

For financial advisers, the message is clear. A consistent investment philosophy, combined with careful research, disciplined positioning, and active risk management, is essential. Diversification – across asset classes, geographies, and sectors – remains a cornerstone. Likewise, understanding where markets are concentrated or mispriced can reveal opportunities overlooked by consensus. Finally, Floor reminds advisers of the importance of patience and perspective: “There are going to be headlines, volatility, ups and downs. Having a coherent plan, well diversified, and partnering with the right people is going to be the key to success.”

For those building client portfolios in South Africa and beyond, PSG’s approach offers a framework for navigating complexity, mitigating risk, and capturing long-term returns – ultimately helping advisers deliver more informed, resilient and outcome-focused advice.

The FPI recognises the quality of the content of MoneyMarketing’s February 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 Image: Getty Images

By Jithen Pillay Portfolio Manager of the Allan Gray Equity Fund

Tilting away from the crowd

2025 was a year for the history books. Heightened geopolitical tensions created, and then seemingly resolved, trade wars, and artificial intelligence (AI)-induced optimism dominated global markets. In South Africa, the near collapse of the Government of National Unity early in the year, and a strained relationship with the United States, were overshadowed by the strong tailwind provided by rising precious metal prices that lifted the FTSE/JSE All Share Index (ALSI). A cursory glance at 2025’s returns hides the sharp volatility that persisted during the year.

Globally, the MSCI World Index delivered a third consecutive year of strong double-digit returns, rising 21% in 2025 to close the year at a near all-time high. This performance was supported by the US, which comprises 72% of the index. As has been the case over the last three years, the breadth of this performance was narrow. Just seven stocks, the aptly named ‘magnificent seven’, accounted for 46% of the S&P 500’s performance in 2025 – largely fuelled by the promise of AI advancements.

Now, the five largest public AI hyperscalers plan to collectively spend more than US$1.5tn over the next three years. To put this into context, South Africa’s annual GDP stands at around US$450bn. We have two primary concerns here. Firstly, this capital expenditure will pose

“History shows that the first movers in world-altering technologies are rarely the eventual winners”

a material headwind to the earnings of these companies in the coming years, which we think is underappreciated. Secondly, the S&P 500 trades on a high multiple of these elevated earnings expectations and is fast approaching levels last seen during the 2000s technology bubble. History shows that the first movers in worldaltering technologies are rarely the eventual winners. As such, the opportunities that we are finding include more reasonably priced stocks than any of the magnificent seven (aside from Alphabet) that are beneficiaries of the AI capital expenditure, as well as underappreciated sectors such as defence and biotechnology.

Precious metals drive local returns

Locally, the ALSI delivered a 42% return in 2025 – its best calendar year in two decades, with the index near an all-time high. Similar to the US, performance was narrow. Precious metal miners rallied sharply, more than doubling, and contributing 58% of the ALSI’s return for the year. Collectively, gold and platinum

Earned it, protect it! Why advisers spot the income blind spot

South African professionals tend to plan with discipline. They shape careers thoughtfully, manage debt steadily, and invest for the long term. Yet many overlook the vulnerability of what funds it all: their capacity to earn an income. Advisers see this gap often – it’s one of the key risks in a client’s financial plan that can catch even the most organised off guard. A serious illness or injury seldom pauses earnings for just a few weeks. It more commonly keeps professionals sidelined for months, or even years. Suddenly, the difference between assumed stability and real protection stands out clearly. We’ve all had clients who look solid on paper, but a prolonged setback reveals how thin the margin can be.

The Financial Sector Conduct Authority’s 2024 report highlights that nearly 79% of middle-income earners channel most of their net income into debt repayments, with little buffer for shocks. Meanwhile, 63% feel ongoing financial worry, and 87% report raised stress

levels. Advisers, this means many clients you work with carry more exposure than their balance sheets suggest.

Emergency savings offer a start, but they fall short for longer disruptions. Most cover three to six months of costs; fine for brief hitches, yet quickly exhausted in extended recovery.

As Wimpie Mouton, CEO of PPS Life Solutions, puts it: “When illness or injury drags on past a few months, savings vanish fast. Clients then dip into retirement funds or pile on debt, unravelling their careful progress.”

Traditional income protection adds hurdles: long waiting periods, tight definitions, fiddly exclusions, and income-proof demands that delay payouts. At the point clients need cashflow most, you end up managing their frustration, even when cover exists.

Advisers, this is your chance to reframe the discussion. Move it from mere coverage to genuine protection of earning power. PPS’s Sickness and Permanent Incapacity Cover

group metal miners now represent over 25% of the ALSI. While we have a constructive view on the gold price over the longer term, in the short term, the price will likely be volatile amid shifting geopolitical and macroeconomic conditions. South African gold miners also have a poor long-term track record. Historically, gold price windfalls have often been eroded by poor cost discipline and value-destructive expansion. As such, we have been selective about the precious metal miners included in our opportunity set, favouring companies more likely to return free cashflow to shareholders.

We remain defensively positioned

Given current valuations, we are concerned about the prospects for absolute returns both globally and locally. Therefore, the Allan Gray Equity Fund is positioned defensively to protect capital. Within the offshore component, the Fund is tilted away from the US in favour of cheaper geographies. Where US exposure exists, it is in the less-crowded names. In South Africa, a slow reform agenda, anaemic capital investment and infrastructure concerns underpin our view that meaningful economic growth will remain elusive. Our local positioning is skewed towards defensive rand hedges – British American Tobacco and AB InBev are good examples. Where the Fund holds South African-exposed stocks, they are businesses that we believe can sustain earnings growth even in a weaker-thanexpected economic environment.

tackles a common flaw by tying benefits to medical fitness for work, not lost income proof. It speeds up support, so clients can prioritise healing over financial firefighting.

Data across the industry confirms it: professionals handle short shocks, but few weather drawn-out incapacity. Without fitting protection, money worries amplify health stress, slowing recovery and shifting career paths. You bring real value here by probing deeper. Ask:

• Do waiting periods match typical recovery times?

• Are exclusions tuned to the client’s job risks? Do triggers deliver quick, reliable access? Does variable pay, like bonuses, profit shares, or commissions, get covered properly?

“Protecting earning ability brings certainty amid uncertainty,” Mouton notes. “It guards lifestyle, career drive, and future aims.”

In South Africa’s shifting economy, with regulatory shifts, job insecurity, and personal risks, earning protection merits a central spot in planning. Advisers, the question for your clients isn’t if they can afford it, but what the cost of not having it might be.

*PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.

Time is the greatest gift of all.

We all want more time to spend on the things that are important to us. Whatever those things may be, the good news is that if you invest early, time gives you money. And then, money gives you more time to spend on the things you love. Speak to us to make the most of your time. Call Allan Gray on 0860 000 654, or your financial adviser, or visit www.allangray.co.za.

Allan Gray is an authorised FSP.

2026 equity outlooks: Broader opportunities await

The global equity landscape entering 2026 is shaped by a recalibration of trade policy, a shift toward more accommodative monetary settings, and the continuation of a powerful investment cycle in artificial intelligence infrastructure. That’s according to industry experts at Ninety One. Markets have transitioned from fears of a hard landing in 2025 toward conditions more consistent with a mid-cycle environment. Early turbulence, including the sharp reaction to April’s tariff shock, ultimately gave way to renewed equity momentum as policy adjustments reassured investors and supported risk assets. Monetary easing in the latter part of the year further reinforced this backdrop.

Rhynhardt Roodt, Chief Investment Officer, Equities, notes the turning point in market sentiment: “The key surprise of the year was April’s tariff shock, which raised fears of stagflation and a global recession. However, this was short-lived with economic growth and equities rebounding strongly.” AI-related capital expenditure remains a defining structural driver, particularly across hardware, semiconductors, manufacturing tools and power infrastructure. Software, while benefitting from long-term opportunity, faces near-term competitive and margin pressures.

The global opportunity set is also widening geographically. Fiscal support across Europe, attractive UK valuations, and reform momentum in Japan are contributing to a more balanced regional picture. Improving dynamics in select Asia ex-Japan markets, along with industrial and financial sectors tied to the AI and capital-investment cycle, further illustrate the expansion of investable themes. Dan Hanbury, Portfolio Manager, Global Equities, says, “Europe’s fiscal stance, EM valuations, and Japan’s reform tailwinds could point to more balanced contributions to returns. Within the US, only Nvidia and Alphabet among the Mag 7 have outperformed during 2025.”

US equity market outlook

We expect the US equity market to evolve toward a broader, more idiosyncratic opportunity set. The anticipated broadening was delayed through 2025 by policy uncertainty around tariffs and taxation. That uncertainty has now largely cleared. With greater visibility on pro-growth tax policy, company management teams, whose incentives remain tightly aligned with earnings delivery and share price performance, are increasingly guiding above consensus expectations, doing so roughly twice as often as guiding below. This points to a healthier dispersion backdrop, where stockspecific fundamentals should matter more than index-level narratives.

Hanbury notes: “On artificial intelligence, we would caution that expectations have short-term run ahead of near-term reality. Monetisation remains uncertain, while power infrastructure is a binding constraint that will take time and capital to resolve. For now, markets are largely capitalising the promise rather than the cashflows. Hyperscalers have become more capital-intensive than the oil majors were at their peak, with aggregate capex on track to approach half a trillion dollars by 2026. To date, much of this investment has been funded through operating cashflow, but recent debt issuance marks a clear inflection point.”

In this environment, return on incremental invested capital relative to the cost of capital is a critical anchor for valuation discipline. While the current spread for most hyperscalers remains positive, it is healthy rather than exceptional. As companies scale, the scope for incremental returns is likely to compress, particularly as the growth tailwind from share gains in traditional advertising moderates. Historically, sustained improvements in ROIIC have been a powerful source of alpha – and today this opportunity set is unusually diverse, spanning both tech and non-tech businesses.

European equities: Relatively cheap with upside risks to growth

Europe enters 2026 with its strongest alignment of fiscal policy, monetary support and structural reform in more than a decade. A pro-growth policy framework, accelerated by renewed focus on industrial competitiveness, defence investment and long-term infrastructure modernisation, is reshaping perceptions of Europe’s economic potential.

"The global opportunity set is also widening geographically”

The groundwork for this shift was laid in 2025, when new strategic direction for industrial transformation and critical infrastructure investment gained momentum across the region. This coincided with a more dovish European Central Bank and an evolving geopolitical environment, strengthening the case for meaningful and sustained domestic demand.

Looking at the significance of the policy foundation, Ben Lambert, Portfolio Manager, European Equities, says: “The seeds of many of 2025’s key events were sown in the Draghi report, which identified €845bn of critical infrastructure investment needed by 2040 to modernise Europe’s ageing grids, transport links and industrial backbone.” Germany, in particular,

stands at the centre of Europe’s fiscal capacity. Proposed multi-year investment programmes and reforms to long-standing budget constraints point to a meaningful uplift in medium-term spending on infrastructure and defence.

Adam Child, Portfolio Manager, European Equities: “Germany is uniquely positioned… and its proposed €500bn infrastructure fund could deliver a fiscal impulse of 3-4% of GDP by 2027.” European equity valuations remain compelling relative to both history and global peers, with earnings expectations improving toward parity with the US on a forward-looking basis. At the same time, participation across sectors has broadened. Banks in select peripheral markets, defence industries and power-equipment suppliers are already reflecting the changing backdrop and capital-expenditure priorities.

Noting the disconnect between valuations and fundamentals, Lambert states, “The asset class is trading on about 14x forward earnings, a 40% discount to the US. However, this doesn’t match up with the forward-looking view of earnings. We regard that as an opportunity.”

A year defined by selectivity and structural transition

Across global markets, 2026 is characterised by widening opportunity but also by heightened dispersion. Structural tailwinds, including the AI infrastructure cycle, substantial fiscal mobilisation in Europe, and reform momentum in key regions, create a broader and more diversified investment landscape than in previous years.

At the same time, elevated macro uncertainty, policy shifts and concentration risk require a disciplined approach to portfolio construction. Roodt says, “This translates into a disciplined approach… aimed at providing a balanced, core, style-agnostic portfolio, driven by a laser focus on stock selection.”

By Francois du Toit CFP® PROpulsion

FYour

inancial planning clients are arriving at meetings with AI-generated research in hand. Advisers who understand this shift will deepen trust. Those who ignore it risk becoming obsolete.

A client walks into your office. Before you can pull up the agenda, she opens her phone and reads a summary of the tax implications of her offshore investment. She asked ChatGPT at 6am while drinking her coffee. This is happening now, across practices of every size. According to Credit Karma, 66% of consumers who have accessed generative AI have used it for financial questions. Among Gen Z and Millennials, that figure climbs to 82%. Your clients are using these tools to prepare for meetings, test your recommendations, and ask the questions they are too embarrassed to raise face-to-face. The question is not whether you approve of this trend; it is how you will respond. Let’s explore what clients are doing with AI, what this means for your role, and how to turn this shift into a competitive advantage.

Diagnose the new client behaviour

The old model of financial advice assumed information scarcity. Clients came to you because they lacked access to data and expertise. That assumption is collapsing.

Clients use AI for three purposes. First, education. According to Credit Karma, 75% of users say AI allows them to ask financial questions they would be too ashamed to ask a human. Questions like “What is compound interest?” go to machines that never raise an eyebrow. Clients arrive with a higher baseline of understanding than five years ago.

Second, research. Before a meeting, a client might ask an AI to summarise balanced fund performance during high inflation. They want to

feel prepared and avoid looking foolish. Third, validation. After your meeting, they test your recommendations against what the AI says. If the AI confirms your advice, trust grows. If it contradicts you, they return with questions. This is the new pattern: the client as validator, using AI as quality control for your output.

“Adapting does not require a technology overhaul. It requires a change in posture”

Decide what role you want to play

Your personal feelings about AI is irrelevant. Your clients are already using it. The only decision that matters is what role you will play.

• Option one: Ignore it. Pretend the client did not consult ChatGPT before meeting you. When your advice conflicts with what the AI said and you cannot explain why, you lose credibility.

• Option two: Compete with it. Try to outinform the machine. This is a losing strategy. You cannot match the speed at which AI synthesises data.

• Option three: Complement it. Accept that AI handles data synthesis, definitions, and scenario modelling. Focus your energy on what AI cannot do: understanding your client’s family dynamics, their fears about retirement, their real goals beneath the stated goals.

The research is clear. When stakes are low, clients prefer AI for its speed and lack of judgement. When stakes are high – retirement strategy, estate planning, major life transitions

– clients demand human oversight. They want emotional reassurance. They want someone who can empathise with the fear of running out of money. AI cannot provide that.

Do

this in the next 90 days

Adapting does not require a technology overhaul. It requires a change in posture.

In week one, ask your next five clients: “Have you used ChatGPT or another AI tool to research any topics we are discussing?” Ask with genuine curiosity, not defensively. You will learn more about client behaviour in these conversations than in any industry report. In weeks two to four, build a list of questions clients are asking AI. These are topics where you need to add visible value. Show them what the AI missed. Connect products to their specific situation in ways machines cannot. In weeks five to 12, adjust how you open and close meetings. At the start, invite clients to share what they found. At the end, ask what questions remain. Offer a summary they can review with any tool they choose. When you are confident in your advice, you welcome scrutiny.

Final thought

The rise of AI-informed clients is not a threat to the advisory profession. It is a filter. Advisers who offered little beyond information access will struggle. Those who understand their true value, trust, empathy, and judgement, will find that AI makes their work more visible, not less. Your clients are already using these tools. Meet them there.

Stay curious!

The benefits of health insurance in tough economic times

South Africans are navigating a rapidly changing economic landscape, and the way households approach healthcare is evolving with it. As medical inflation continues to outpace the Consumer Price Index (CPI), many families are reassessing how they access and fund essential care. This shift is increasingly visible in the workplace, where employee wellbeing directly affects performance, attendance and overall morale. In this environment, employers are recognising that relying solely on traditional medical schemes may no longer be enough. Rising costs and widening affordability gaps have created a need for more flexible, accessible healthcare solutions. This is where health insurance is stepping forward –offering a practical, cost-effective alternative that can help bridge the divide between quality care and financial reality.

Health insurance is emerging as a vital alternative for employees who can’t afford full medical aid. It can provide a more accessible entry point into private healthcare, covering hospitalisation for accidents and illness, day-to-day care and essential medical services.

“The health of the workforce is one of the strongest predictors of performance”

Importantly, it does this at a cost level that’s more aligned with the financial realities of South African workers today. For businesses, modern health insurance offers the flexibility to tailor benefits to different segments of the workforce, making it easier to extend meaningful cover to permanent staff, contract workers or new entrants. Simplicity is also a major advantage, as clear benefits and straightforward administration reduce the confusion that could limit employee uptake. And because these solutions scale effectively, they work just as well for small businesses looking to introduce healthcare for the first time as they do for larger organisations aiming to broaden their benefit options.

What connects all these elements is the ability to help employees access care earlier and more consistently. Early intervention tends to reduce the severity of health issues, shorten recovery time and support more stable attendance patterns – a genuine winwin for both employees and employers.

A closer look at the productivity link

Productivity is often linked to operational

terms, but the health of the workforce is one of the strongest predictors of performance. When employees can consult a doctor before a minor concern becomes a major problem, manage chronic illnesses like diabetes or hypertension with proper guidance, and avoid long queues or delays that push treatment out by days or weeks, the business can reap many rewards.

While fewer sick days play an important role, the greater impact lies in presenteeism: employees who are physically at work but unable to perform at their usual standard due to unmanaged health conditions. This is where businesses often lose the most time, energy and momentum. Health insurance enables regular check-ups, screenings and early treatment pathways that help prevent these silent productivity losses.

Retention in a shifting labour market

South Africa’s talent landscape is evolving rapidly, and organisations are competing fiercely to attract and retain the right people. In this context, healthcare benefits have become a subtle yet powerful differentiator. Employees pay close attention to how employers support their wellbeing, especially in the times of economic uncertainty.

Research consistently shows that healthcare benefits rank among the top factors influencing an employee’s decision to stay or leave. For industries that rely heavily on knowledge, personal expertise or longterm client relationships, the cost of losing talent far exceeds the investment in quality healthcare. Offering accessible, quality healthcare signals an organisation’s values and priorities, and this resonates strongly

with those who are evaluating where they want to build their careers.

The long view: Healthcare as part of business resilience

During tough financial cycles, it’s natural for leadership teams to scrutinise spend. But the instinct to cut back on employee benefits can create unintended vulnerabilities that ripple throughout the organisation. Poor health outcomes do not remain isolated; they influence absenteeism, service delivery, customer experience and even organisational culture.

A well-structured health insurance offering provides an alternative approach. It helps protect employees without overwhelming budgets, and it ensures that healthcare can stay within reach for the people who keep the business in business. For leaders thinking about long-term resilience, this becomes part of a broader strategy: maintaining the capability, energy and stability of the workforce, even when external pressures are high.

Our suite of solutions include health insurance, medical aid, gap cover, occupational health, executive wellness, onsite clinic management and an employee assistance programme. Value-adds include access to our financial wellbeing programme, including financial advice and tools, debt management and free wills.

Visit www.oldmutual.co.za/employeebenefits for more information on the full range of employee benefits. Note: Health

HEALTH COVER THAT PUTS EMPLOYEES FIRST

Rising healthcare costs shouldn’t stand in the way of wellbeing. We help employees manage rising medical costs and access essential care. Our comprehensive suite of healthcare solutions includes Health Insurance, Medical Gap Cover, an Employee Assistance Programme and Group Personal Accident Cover, which deliver meaningful benefits for your evolving workforce. Because healthy employees build a thriving business. Talk to us at omhealthsolutions@oldmutual.com or visit oldmutual.co.za/healthsolutions

The price of non-payment of benefit fund contributions FNB’s Education Protector a bonus for employees

By Nicci van Vuuren Partner,

On 13 January 2025, the Minister of Employment and Labour withdrew the 2003 determination that exempted employers from the application of section 34A of the Basic Conditions of Employment Act (BCEA) in respect of contributions to benefit funds which include pension, provident, retirement, medical aid or similar fund. Notably, contributions to pension, provident or retirement funds are also regulated under the Pension Funds Act. In this regard, Labour Inspectors can now enforce compliance with section 34A alongside the existing regulatory powers of the Financial Sector Conduct Authority (FSCA).

The timing and nature of this withdrawal is significant.

Section 50(9) of the BCEA provides that the Minister may withdraw a determination following an application by an affected party, being an employer organisation, registered trade union or covered employee. This procedure suggests that the change was prompted by stakeholder concerns about widespread employer noncompliance, likely linked to issues identified following the implementation of the two-pot retirement system in September 2024. The two-pot system exposed reams of employers who had been deducting pension contributions from employees’ salaries but failing to remit those funds to retirement funds, with outstanding contributions totalling billions of rands. The withdrawal of the exemption is likely a legislative response to strengthen enforcement mechanisms against such non-compliance.

Section 34A of the BCEA sets out strict payment deadlines that employers must meet. These deadlines apply in respect of any amount deducted. An employer that deducts any amount from an employee’s remuneration for payment to a benefit fund must pay the amount to the fund within seven days of the deduction being made. Any contribution that an employer is required to make to a benefit fund on behalf of an employee, that is not deducted from the employee’s remuneration, must be paid to the fund within seven days of the end of the period in respect of which the payment is made. These obligations do not affect any requirement under the rules of a benefit fund to make payment within a shorter period.

These timeframes mirror the obligations under section 13A(3) of the Pension Funds Act, which requires relevant contributions to be transmitted to the fund not later than seven days after the end of the month for which the contribution is payable. The practical difference is that section 34A of the BCEA imposes different trigger dates depending on whether the contribution is an employee deduction or an employer contribution, and when the employer does the payroll run, which may not necessarily be at the end of the month. For example, if an employer’s payroll run on the 25th of each month, payment of contributions to the fund must take place within seven days from the 25th.

What are the consequences of non-payment or late payment?

Employers are now subject to dual enforcement mechanisms as follows:

• Under the Pension Funds Act: Non-payment is a criminal offence punishable by a fine of up to R10m, imprisonment for up to 10 years, or both. Directors and senior management can be held personally liable under section 13A(8).

• Under the BCEA: Labour Inspectors can issue compliance orders and impose administrative penalties for contraventions of section 34A.

The dual enforcement regime means that employers who fail to pay contributions timeously may face concurrent action from both Labour Inspectors and the FSCA, with potentially overlapping penalties.

Employers should immediately review their payroll processes to ensure compliance with the seven-day payment requirements for both employee deductions and employer contributions, paying particular attention to the different trigger dates under section 34A.

As businesses face growing pressure to attract and retain skilled employees, many are reassessing whether their employee benefits still reflect the realities facing most working families. While retirement and medical aid remain employee benefits’ core offerings, forward-thinking employers are looking to provide benefits to their employees that address long-term financial risks beyond the workplace.

Education is one of the most significant long-term financial commitments for working families, so education protection is emerging as an attractive option to address one of the most pressing concerns of most employees. In response to this need among most working families in South Africa, FNB Employee Benefits now offers its Education Protector solution to businesses that recognise the importance of adding a further layer of protection onto their life and disability cover offerings.

The FNB Education Protector is designed to ensure that, should an employee pass away, their children’s education will continue uninterrupted – from school through to tertiary studies. “Group risk cover has traditionally focused on income replacement and lump-sum payouts,” explains Chris Cooke, Product Head at FNB Employee Benefits. “Education protection builds on that foundation by addressing a very real concern for working parents: ensuring their children’s education can continue, even if they’re no longer there to provide for it.”

FNB’s education protection solution does not aim to fund education upfront, but rather to safeguard it if the unexpected happens. If an employee holding the cover passes away, the school or tertiary fees for their children are paid directly to educational institutions, with additional annual top-up payments to assist with non-tuition costs like books, uniforms and transport.

The benefit covers up to five children per employee, from pre-primary through to tertiary education. School fees are covered up to R70 000 per year for pre-primary, R115 000 for primary school, and R135 000 for secondary school. At tertiary level, the benefit pays up to R100 000 per year for local universities or R150 000 for international studies, with an additional R60 000 available for residence costs. An annual top-up benefit of R5 000 (for school-going children) or R15 000 (for tertiary students) is paid directly to guardians or students to cover expenses like registration fees, uniforms, books and transport.

The cover also accounts for natural fee increases as children progress through their education, with built-in allowances when they transition from primary to secondary school or from school to university. It even extends to honours degrees for students who enrol for a three-year undergraduate qualification and accommodates one gap year after matric. All benefit limits undergo annual inflation-linked increases to ensure sufficient cover over time.

“It’s a risk benefit that employees place a lot of emotional value on,” Cooke explains, “and they take comfort in knowing it’s there. That sense of security builds trust and loyalty, which ultimately benefits the employer as well. And because the benefit is implemented at scheme level as a rider to life cover, it can be offered to an entire workforce at a low cost.”

There are also practical business considerations. For employers, the FNB Education Protector delivers tangible, outcome-based protection without adding complexity or extra administrative burden. And it alleviates the pressure they could otherwise face to support the education needs of families after the death of an employee. Cooke points out that Education Protection provides a clear, insured mechanism to manage that risk, offering certainty for both employers and the dependants of their employees, and creating an employer value proposition that can help attract and retain top talent.

“In today’s skills-challenged environment, employers have to do more than offer basic cover,” says Cooke, “they’re also expected to show understanding and compassion. FNB’s Education Protector benefit protection allows employers to go beyond standard risk cover offerings and demonstrate genuine care for employees’ families, without complicating their benefits framework.”

For more information, employers and IFAs can contact FNB Employee Benefits at employeebenefits@fnb.co.za or call 087 312 1947.

Umbrella funds in South Africa: Why employers can’t afford to ‘set and forget’

By Niki Giles Head of Strategy at Prescient Fund Services

Umbrella funds have become

a cornerstone of South Africa’s retirement savings landscape. These occupational retirement funds pool contributions from multiple, unrelated employers under a single legal structure, offering cost efficiencies and professional management. For employers, they promise simplicity and scale.

But here’s the reality: selecting an umbrella fund is not the end of your responsibility; it’s the beginning. While governance rests with an independent board of trustees, employers remain legally and ethically involved.

The persistent myth: No further obligation

Many employers mistakenly believe that once they’ve chosen an umbrella fund, their obligations end. This misconception can lead to serious compliance failures. Under the Income Tax Act, Pension Funds Act, and Basic Conditions of Employment Act (BCEA), employers have ongoing duties that include timely payment of contributions, accurate record-keeping, and ensuring the fund remains suitable for their employees.

Failure to comply can result in penalties, interest charges, and reputational damage –risks no business can afford.

Legal duties you cannot ignore

To qualify as an occupational pension fund under the Income Tax Act, membership must be a condition of employment, contributions must be regular, and the fund must be SARSapproved. Employers are responsible for enrolling new employees, deducting ongoing contributions accurately and remitting them promptly. The BCEA adds another layer: Section 33A prohibits employers from forcing employees to purchase goods or services from nominated providers, but allows deductions for benefit schemes like umbrella funds if costs are fair and reasonable or employees receive a financial benefit. This fairness test is ongoing, not a one-time check.

Section 34A(2) requires employers to pay deducted contributions to the fund within seven days. Miss that deadline, and you risk legal action and reputational fallout.

S13A of the Pension Funds Act is even more explicit regarding the timely payment of contributions. It mandates employers to pay

employee retirement fund contributions to the fund by the seventh day after the end of the month, and it imposes personal liability on the employer’s directors for non-compliance, with strict reporting duties and penalties for late payments, including compound interest. And, if non-compliance continues for 90 days, the fund must report the employer to the South African Police Services.

Employer prerogative, with strings attached

The landmark Amplats case [Amplats Group Provident Fund v Anglo American Platiumum Corporation Ltd] confirmed that employers have the sole prerogative to decide which fund employees join as a condition of employment. Workers cannot choose their own retirement fund. But this authority comes with a duty of good faith: employers must act in employees’ best interests, avoid prejudice, and follow proper procedures under Section 14 of the Pension Funds Act when transferring members between funds.

“Offering retirement funds is only part of the equation. Employers must ensure these benefits are well-managed, transparent, and provide real value to employees. That means educating staff, ensuring compliance, and reviewing fund performance regularly.” –Industry Perspective, Prescient Fund Services

“Selecting an umbrella fund is not a tick-box exercise, it’s an ongoing governance responsibility”

Governance under the spotlight

National Treasury’s 2022 Discussion Document raised concerns about conflicts of interest, opaque selection processes, and inadequate employer oversight. It urged employers to stay engaged, establish advisory bodies, and avoid restrictive arrangements that lock them into underperforming funds. The message is clear: selecting an umbrella fund is not a tick-box exercise, it’s an ongoing governance responsibility.

What’s next? Auto-enrolment and reform

South Africa’s retirement reform journey is far from over. Following the two-pot system, policymakers are considering autoenrolment, which would automatically enrol employees into a retirement fund unless they opt out.

“Government will also introduce legislation to enable automatic/mandatory enrolment to expand coverage for more vulnerable, contract and temporary workers (e.g. domestics workers, Uber drivers). While workers that are formally employed and belonging to a labour union tend to be covered under the current dispensation, this is not the case with workers not belonging to any labour union, nor those in the gig economy.” – National Treasury, Encouraging South African households to save more for retirement [14 December 2021]

Government has stated that there are outstanding reforms needed to address three key problems in the retirement system: coverage, preservation and costs. While the two-pot changes addressed the issue of preservation, a proposed system of auto enrolment would address the issue of coverage. Employers should prepare for possible future legislative changes that may require automatic enrolment, payroll system adjustments, and proactive communication strategies.

The bottom line

Employers who think their responsibility ends with selecting an umbrella fund are mistaken. The legal framework – and ethical expectations – demand ongoing diligence. That means timely contributions, accurate records, regular fund reviews, and active engagement with governance structures.

In an era of heightened scrutiny and looming reforms, employers must embrace their role as stewards of their employees’ financial futures. Failure to do so isn’t just a compliance risk, it’s a breach of trust.

Will financial advisers meet the challenge of SA’s next HNW generation?

By Thandi Ngwane Head HNW Investments at Standard Bank Group

South Africa’s wealth advisers stand at a pivotal crossroads. The traditional paradigms that once defined high-networth (HNW) clients are being upended by a new generation who are young, diverse, digitally native and value-driven.

These emerging clients are not merely inheriting wealth; they are redefining it. In doing so, they are seeking financial advice that is agile, inclusive and deeply personal. Shifting demographics, evolving client expectations, and the accelerated adoption of digital and data-driven solutions are reshaping the advisory landscape. The archetype of the HNW client – older, with legacy wealth – no longer reflects the full spectrum of South Africa’s economic potential. Exclusivity and static portfolios are being challenged by a new generation of wealth holders.

Today’s emerging HNW individuals are entrepreneurs, creatives, tech innovators and professionals who seek more than just portfolio

performance. They want advice that aligns with their values, supports their social impact goals, and reflects their lived realities. They expect seamless digital engagement, transparent communication and a relationship built on trust, not just transactions.

Yet, despite this trend, 51% of South African investors still rely on financial advisers, according to the 2025 South African Investor and Banking Report. This underscores the enduring value of human insight in navigating complexity and uncertainty. The challenge (and opportunity) for advisers and asset managers lies in bridging the gap between legacy expertise and emerging expectations.

The more mature advisers, many of whom built their careers serving traditional HNW clients, now face a critical inflection point. Their deep knowledge and experience remain invaluable, but without intentional adaptation they risk becoming disconnected from the new face of wealth. The risk is not just irrelevance, it is invisibility.

Emerging HNW clients often feel excluded from traditional advisory models that lack cultural fluency, digital sophistication or inclusive representation. To bridge this gap, wealth managers must reimagine their approach.

The future of financial advice will be defined by those who can deliver relational depth alongside digital agility. Advisory models must evolve to become more client-centred, resilient and reflective of South Africa’s full economic tapestry. Inclusion and exposure are central to this evolution. This means investing in inclusive platforms, rethinking legacy processes, and fostering trust and transparency, suitability and steadfast commitment to acting in the client’s best interest.

These principles aren’t optional; they are foundational, and the most resilient advisers will be those who embed them into every facet of their business. As wealth becomes more distributed across race, gender and geography, the financial sector must ensure that its services reflect this diversity.

Discretionary fund managers and asset managers must collaborate more closely with advisers to deliver tailored solutions that resonate with the new wealth generation. This includes leveraging data analytics, behavioural insights and digital platforms to create dynamic portfolios that adapt to changing life stages and market conditions.

South Africa’s next generation of wealth is here. The question is, will the industry rise to meet them?

Gold fever: To own the metal or the mines?

All eyes have been on gold recently, as the precious metal has become a safe haven for those looking for an investment to protect wealth against high inflation, economic instability and geopolitical tensions. Rashaad Tayob, Portfolio Manager at boutique asset management firm Foord, tackles an important portfolio question relating to gold: how to own it.

Gold has once again claimed investor attention. Its price surged to record highs, breaking through $5 000 per ounce and continuing the historic rally that began in 2025. This move has been driven by central banks ramping up purchases, investors seeking shelter from rising geopolitical risk, and the credibility of major fiat currencies came under strain. For more than 2 000 years, gold has stood apart as a scarce, tangible store of value with no counterparty risk. It remains one of the few assets that tend to perform well when others falter. But for investors the question isn’t whether to own gold – it’s how. Should exposure come through the metal itself, or through the companies that mine it?

Gold exchange-traded funds (ETFs) provide clean, low-cost access to bullion. They track the metal price directly, with none of the operational risks, cost pressures or capital allocation uncertainty that comes with mining businesses. For this reason, bullion remains the preferred gold exposure in Foord’s retirement fund portfolios. These strategies aim to preserve capital and grow wealth steadily across cycles. Gold ETFs help to deliver that outcome by offering liquidity and diversification without operational risk. Gold miners are different. They offer geared exposure to the gold price – profits can rise much faster than the metal when prices move – but they also carry real business risks. Mining is capital intensive, politically exposed and operationally complex. Historically, returns have

been inconsistent and there have been years when gold miners have been loss-making. For that reason, gold miners are not a structural holding across all Foord portfolios.

But they do have a place, especially in funds where the investment horizon is long, which includes equity funds. Such funds have higher risk budgets and portfolio managers look to own businesses that can generate long-term capital growth.

Owning precious metals miners in such portfolios will depend on two conditions being met. First, we must have a constructive, longer-term view of the gold price. Second, the fundamentals of the mining business must support the investment case. We watch for disciplined cost management, capital efficiency, and the ability to generate returns through the cycle. In these conditions, miners can outperform bullion and may offer a better risk–reward profile for long-term investment strategies.

It’s worthwhile noting that in multi-asset portfolios – which include traditional retirement fund portfolios – we have other tools to manage risk and correlations across asset classes, geographies and currencies to achieve inflating-beating returns. In these portfolios, we favour gold ETFs for their predictable return profile and greater downside protection. This is part of our safety-first investment philosophy for such strategies.

Gold remains a strategic asset in Foord’s portfolios; one we’ve held consistently through cycles. Whether expressed through bullion or miners depends on the mandate, the market, and the risk budget. That flexibility is essential to how we manage money: disciplined, valuation-aware, and always aligned to portfolio purposes.

If it’s personal to you, it’s personal to us.

To do things the right way requires a personal commitment. A considered approach. That’s why we use decades of expertise and market knowledge combined with fundamental research to guide all our investment decisions.

Because when it comes to managing your wealth, it’s not just a job, to us: it’s personal.

We care for our clients’ assets like our own because we never forget who they really belong to. If you’re an individual, family, charity, trust or corporate looking for a global investment manager with diversified investment solutions, choose the one that is personally committed to your future. The one who does things the right way. The Melville Douglas way.

melvilledouglas.co.za

Why boutique asset managers matter

Compiled by Sandy Welch Editor, MoneyMarketing

Boutique asset managers play an important role in South Africa’s investment landscape, adding depth, diversity and flexibility to a market that is otherwise highly concentrated. Investors attach different meanings to the term ‘boutique’. For some, it is defined primarily by scale: a small team, often fewer than two dozen employees, and a relatively modest asset base, with R50bn frequently cited as an informal upper threshold. South Africa is home to over 100 firms that fit these criteria.

The benefits of boutique asset managers are extensive, not least being that they are typically founded by experienced investment professionals with a clearly defined philosophy. Their smaller size allows for high-conviction strategies, nimble decisionmaking, and less ‘benchmark hugging’. For advisers, this can mean access to genuinely differentiated return drivers that improve portfolio diversification. In many boutiques, portfolio managers are equity owners and meaningful co-investors in their funds. This alignment of interests promotes capital preservation, disciplined risk management and long-term thinking – all attributes advisers value when managing client expectations across market cycles.

“For advisers, this can mean access to genuinely differentiated return drivers that improve portfolio diversification”

Addressing concentration risk

Importantly, boutiques help address concentration risk on the JSE. A large portion of market capitalisation sits in the Top 40 shares, many of which are global rand-hedge stocks. Boutique managers are not constrained by size and can invest meaningfully in mid- and smallcap companies that are often underresearched and undervalued, broadening the opportunity set for investors. Boutique

firms typically invest significant time and resources into bottom-up research, detailed due diligence and ongoing engagement with company management. This hands-on approach can uncover mispriced assets and growth potential that are not yet reflected in market valuations.

Flexibility is key

In the South African context, boutique asset managers are often able to access a broader and more flexible opportunity set than larger fund houses. Scale can be a constraint: managers overseeing hundreds of billions of rand are typically limited in their ability to meaningfully invest in mid- and small-cap stocks without overwhelming those companies’ market capitalisations or dominating shareholder registers. Smaller managers, by contrast, can build meaningful positions in these segments while remaining agile and unconstrained.

In addition, boutique managers are typically more agile. They can respond faster to changing conditions, take higherconviction positions and adapt portfolios without the friction that comes with managing very large pools of capital. This agility is particularly valuable in a volatile, emerging-market environment like South Africa.

Focus on economic growth

There is no argument that boutique asset managers contribute to economic growth, particularly in the local sphere. Many midand small-cap companies play a critical role in job creation and domestic economic activity. By allocating capital to these businesses, boutique managers help support entrepreneurship, expansion and innovation within the local economy.

Why they matter to financial advisers

Boutiques offer meaningful choice for financial advisers and clients. In a market that is highly regulated and performancedriven, boutique asset managers provide differentiated investment philosophies, specialist expertise and alternative sources of return that can complement large institutional fund houses and improve longterm client outcomes. In addition, one of the most practical benefits for advisers is

access. Boutique managers are usually more available for direct engagement, portfolio explanations and client-facing support. This transparency strengthens adviser confidence and helps translate investment strategy into clear client communication. Also, as boutiques are typically characterised by smaller teams and flat organisational structures, they can operate with agility and clarity of purpose. This environment encourages independent thinking and clear accountability for decision-making. Such cultures tend to attract and retain high-calibre talent capable of excelling in financial markets, making lower staff turnover more likely. Over time, this stability can translate into more consistent performance, as cohesive teams develop a deep understanding of their competitive edge and how to apply it across varying market conditions.

Boutiques often specialise in specific asset classes, sectors or styles rather than trying to be all things to all investors. This depth of expertise can be especially valuable when advisers are building blended portfolios or seeking specialist exposure that complements core holdings. Many boutiques actively manage fund capacity to protect performance, closing strategies when necessary, rather than prioritising asset gathering. This focus on investment outcomes over scale aligns well with an advice-led model.

Advisers operate in an environment that is increasingly competitive, tightly regulated, and acutely sensitive to performance. Partnering with boutique asset managers can provide access to specialised expertise, diversified return drivers, and investment ideas that are not always available through large institutional managers. Used thoughtfully alongside bigger fund houses, boutiques can play an important role in constructing more balanced, diversified portfolios, and ultimately support better long-term outcomes for clients.

Incorporating boutique managers into a long-term strategy allows advisers to demonstrate independent thinking and tailored portfolio construction. It reinforces the adviser’s role as a curator of best-in-class solutions rather than a distributor of massmarket products.

Building trust, one financial plan at a time

By Sandy Welch Editor, MoneyMarketing

For Katlego Mei, CFP®, his whole career has been about clarity and connection. He shared his journey into financial planning with MoneyMarketing, and as you’ll see, it’s a story about purpose, people and the power of getting the basics right.

Please tell us a bit about yourself and the position you currently occupy.

I’m currently a financial planner at Galileo Capital. I’m passionate about financial literacy and doing whatever I can to add value to my clients and making a difference in my profession as well as the public. I’m married with two kids.

What inspired you to pursue a career in financial planning, and how did you get started?

In the final year of my BCom degree, I knew that I wasn’t going to be an accountant as I originally planned. I started doing some research on a career that would be better suited to my interests (personal finance) and personality. I came across financial planning and decided to pursue it. I was also inspired by the idea that I would be able to help people around me be better informed and, hopefully, make better financial decisions.

Did you do any official training or courses?

After my BCom degree and a few years of working, I completed a Post Graduate Diploma in Financial Planning. I also did my RE5 exam and completed the requirements to become a Certified Financial Planner (CFP®).

What were the biggest challenges you faced in the early stages of your career, and how did you overcome them?

The biggest challenge I faced was acquiring clients I could effectively assist and serve as a financial planner. I sought an employer offering a supportive environment to advance my career and build a client base, without a heavy sales focus. After a few years and two roles as a financial planner, I landed an opportunity with the Galileo Group, and I’ve never looked back.

What do you like most about the job?

I love connecting with people and helping them craft their financial roadmaps. It’s rewarding to see clients achieve their goals and live with peace of mind.

Which skills have been most critical in helping you build a successful career and client base?

Being a good listener and asking the right questions has helped me connect with clients

If you’re serious about long-term credibility, a CFP® is considered the gold standard.

• Certain exams are non-negotiable:

• Regulatory Exam Level 1 (RE1)

• Covers legislation, ethics, FAIS, and compliance

• Must be passed within two years of entering the industry

• Regulatory Exam Level 5 (RE5)

• Product/category-specific (e.g. investments, insurance)

• Depends on what advice you’ll give.

and build strong relationships. Sticking to the basics, like being available and responsive when they need me, has made all the difference.

Looking back, is there anything you wish you had known when you first started out?

Not really, I believe life is about enjoying the journey and embracing the lessons along the way.

How has your approach to financial planning evolved over time, and what lessons have shaped your philosophy today?

Over time, I’ve refined my approach by being a good listener, asking the right questions to uncover clients’ needs, and sticking to basics to build lasting trust. I’ve also embraced technology to help improve efficiency without losing the personal touch. Today, my philosophy focuses on building long-term client relationships and crafting personalised financial plans to give clients peace of mind.

Supervised experience is also essential to become an adviser. New advisers must work under supervision for one to three years, depending on qualifications. This is usually done by joining a financial planning firm; working under a licensed Key Individual and learning compliance, client engagement and advice processes. This stage is critical; it’s where good advisers are made.

4 What you need to be a financial adviser

The best route to becoming a financial adviser is a mix of the right qualifications, regulatory compliance and practical experience. Here’s a clear, realistic roadmap – the one most successful advisers follow.

1

You need a FAIS-recognised qualification, such as:

• BCom (Finance, Economics, Investment Management)

• Advanced Diploma in Financial Planning

• Postgraduate Diploma in Financial Planning

• Certified Financial Planner® (CFP®) pathway

2

3

It’s also important to register with the FSCA. You can either:

• Operate under an existing Financial Services Provider (FSP), or

• Apply to become your own FSP (more complex, higher compliance burden).

• Most advisers start under an established FSP and go independent later.

Joining a professional body such as the Financial Planning Institute is strongly recommended. While not mandatory, this adds credibility and discipline.

Where psychology meets financial planning

MoneyMarketing spoke to financial adviser Bheka Mkhize from TD Financial Coaching to find out more about the business and what it has taken to make it successful.

Please tell us a bit about your business. How long has it been going for, and do you specialise in specific areas?

TD Financial Coaching has been in operation for two years now. Established in 2024, our main aim is to provide financial counselling to our clients, looking at the deep-seated money fears and common mistakes when handling money. Applying the ‘Psychology of Money’ teachings is our approach – we assist our clients in planning their finances and help link them with the right investment houses. We focus on:

Financial therapy

Financial planning

• Financial coaching.

What were the most critical decisions you made early on that shaped the long-term success of your practice?

One of the important decisions I made was to upskill myself. To teach and assist people with managing their finances I had to be aware of what is relevant in the financial sector, hence my qualifications. I have committed myself to constant learning. I also decided to target the already educated class, because there is a foundation in their understanding of money, so it’s only a matter of aligning and directing.

How have you defined your target client base, and why has that focus been important to your growth?

Our target clients are tertiary graduates starting their careers. This is mainly because we believe it is easier to start a new culture while you’re young. Starting to invest at a young age enables success in handling finances, achieving financial goals and living a meaningful life.

What role do relationships and trust play in your business, and how do you consistently maintain them?

Relationships are important in our line of business and trust is the centre of our interactions with our clients. Money talks require trust and honesty, so we ensure to portray these

principles in our engagements, as required by the Financial Planning Institute (FPI) as well. To maintain our relations, we communicate constantly with our clients, sharing relevant information and articles with them.

Do you rely on technology in your business and are you adapting to this changing environment? Incorporating tech in financial planning is important, especially now that everything is moving digitally. Young people prefer handling stuff in technologically advanced ways. Automatic savings, investing, etc is what we try to push, because it makes things easier and enjoyable.

Looking ahead, what strategies are you prioritising to ensure your business remains relevant and competitive?

Handling money is stressful and it becomes increasingly stressful for people as they grow. Our strategy is to reduce this stress by being partners with our clients and walking the path with them. Yes, incorporating technology is important, but the human touch is equally important to ensure clients feel safe and free to raise their concerns and let out their fears. Staying informed about what is currently happening in the industry is also our strategy, to ensure our advice remain relevant and consistent with client needs. We bring clarity and confidence to our clients – less complexity equals less stress. We aim for simplicity.

“Relationships are important in our line of business, and trust is the centre of our interactions”

Five points every financial adviser should remember when it comes to building a successful business.

1. Put clients at the centre of every decision Trust is the foundation of long-term success. Advisers who consistently act in clients’ best interests build deeper relationships, stronger retention and more referrals.

2. Build a repeatable, scalable process From onboarding to reviews, having structured systems create consistency, improve efficiency and allow the business to grow without sacrificing service quality.

3. Invest in skills, technology and continuous learning Regulation, markets and client expectations are constantly changing. Ongoing professional development and the smart use of technology keep advisers relevant and competitive.

4. Focus on sustainable growth, not short-term wins

Bheka Mkhize

A successful practice is built over time through disciplined advice, realistic expectations and longterm client outcomes rather than chasing quick gains.

5. Communicate clearly and often Regular, transparent communication builds confidence, manages expectations and reinforces the adviser’s value, especially during periods of market volatility.

By Roné Swanepoel,

CFA®

Head of Distribution, Morningstar

AWhat leading practices around the world are focusing on in 2026

cross markets and regions, one thing has become increasingly clear over the last year – while headlines, technology and market leadership evolved, the foundations of successful advice businesses remained remarkably consistent.

Working with more than 255 000 advisers globally gives Morningstar a unique perspective on what drives strong client outcomes and sustainable practices. When we step back and look across this global insight, a few clear priorities stand out. These are not trends or short-term responses to market conditions. They are the disciplines advisers are intentionally reinforcing as they position their practices for the year ahead.

Lesson 1: Simplicity has become a competitive advantage

Advisers consistently tell us that clients want clarity, structure and reassurance. Practices that simplify onboarding, communication and review processes see stronger engagement and deeper trust. This is not about reducing sophistication. It is about removing unnecessary complexity. Small improvements in how clients experience your practice often lead to disproportionately better outcomes. When

“Clients place the highest value on guidance, confidence and behavioural support”

clients understand what is happening and why, they are more confident and more likely to stay the course during periods of market uncertainty.

Lesson 2: A clear value proposition deepens client relationships

One of the strongest themes from advisers globally is the importance of being clear on who you serve and how you add value. The most resilient client relationships are built by advisers who articulate their purpose well, and consistently deliver value beyond investment returns. Morningstar research continues to show that clients place the highest value on guidance, confidence and behavioural support. Advisers who anchor their value proposition in these outcomes build stronger relationships and more durable businesses.

Lesson 3: Behavioural coaching remains the core of great advice

If there is one area where advisers consistently make the biggest difference, it is behaviour. Morningstar’s Mind the Gap study shows that the difference between investor returns and investment returns is largely driven by emotional decision making and poor timing. We continue to see advisers embed behavioural tools more deliberately into their practices. Checklists, pre-commitment plans and structured communication help clients pause, stay focused on long-term goals, and avoid costly mistakes. These tools are becoming core components of advice, and not just optional extras.

Lesson 4: Operational consistency enables scale

The practices that scale best focus first on process and consistency. They invest in clear workflows, repeatable client experiences and defined responsibilities across the team.

Advisers are also using technology more intentionally. The firms seeing the greatest benefit are not using AI to replace human interaction, but to streamline administrative tasks, summarise information and reduce operational burden. This creates capacity for advisers to spend more time on planning conversations, behavioural coaching and client relationships. Morningstar’s global research shows that clients respond negatively when technology replaces human judgement, but value the efficiency gains when it supports the advice relationship.

Lesson 5: Strong investment processes protect clients from noise

Advisers who remain anchored to a documented investment philosophy and consistent due diligence process are far less likely to make emotionally driven decisions.

Many advisers also recognise the value of smart outsourcing. Partnering with a trusted DFM allows advisers to maintain investment discipline while freeing up time to focus on client relationships and planning. Research consistently shows advisers spend too much time on fund selection and portfolio maintenance, and not enough time with clients. A strong investment process, supported by the right partner, acts as an important stabiliser for both advisers and clients.

Looking

ahead

Across regions, advisers agree that the adviserclient relationship remains the centre of a successful financial plan. Simplicity, behavioural guidance and meaningful human connection continue to define great advice. Markets will always evolve and technology will continue to advance, but the fundamentals remain unchanged. Clear communication, disciplined investment processes, and behavioural coaching are the cornerstones of long-term success. At Morningstar, our focus is on supporting advisers with global research, behavioural insight and practical tools that help them strengthen those foundations and spend more time where it matters most: with their clients.

Global private equity in an uncertain world

In a world shaped by geopolitical shocks, persistent volatility and rapid technological change, it is tempting to assume that private equity operates in a protected bubble, insulated from the daily noise that rattles public markets. The reality, however, is far more nuanced. “Private equity investors may not trade in and out overnight, but we are just as exposed to global uncertainty,” says Benjamin Alt, Head of Global Private Equity Portfolios at Schroders.

The defining difference is liquidity. Private equity’s inherently illiquid nature forces investors to think in mid- to long-term horizons. Deals are held for years, not quarters, which places greater emphasis on business fundamentals, predictability and resilience. And over the past five years, from the pandemic through inflation shocks and geopolitical conflict, those priorities have sharpened considerably.

A shift towards predictability

Heightened uncertainty has pushed private equity managers towards less cyclical business models. The focus has increasingly been on companies with recurring revenues, strong cash conversion, pricing power and lower customer churn. “We’ve been forced to take risk out of the system bottom-up,” Alt explains. “That means prioritising businesses that can absorb macro shocks because their revenues and margins are more predictable.”

This approach has proven particularly effective in the small and mid-market buyout segment, an area that remains underappreciated by many investors, especially those accustomed to headline-grabbing mega-deals.

A vast, underexplored universe

The opportunity set in private markets is far broader than commonly assumed. In the US alone, around 87% of companies with enterprise values above $100m remain privately owned. Globally, the number of listed companies has declined over decades, while businesses are staying private for longer. This creates a deep and diverse universe of potential investments, but only for those willing to do the hard work. “You can’t sit in your office waiting for investment banks to bring you deals,” Alt says. “You have to source proactively.”

In practice, this means building direct relationships with founders, families and entrepreneurs. In many cases, 60–70% of deal flow comes from proprietary sourcing rather than competitive auctions. These founderowned businesses are often high-quality enterprises with significant transformation potential and more attractive entry valuations.

Where the competitive edge lies

As private equity has matured, the industry has become increasingly crowded. While media attention tends to focus on a handful of global giants, there are thousands of managers operating across regions and strategies. The challenge, and opportunity, lies in manager selection. “Our edge is active sourcing and monitoring,” says Alt. “We track hundreds, sometimes thousands, of managers globally so clients don’t have to.”

Healthcare and B2B software continue to feature prominently, although with greater selectivity than in the past. Healthcare, long a core sector, faced headwinds post-2022, particularly in labour-intensive services. In contrast, software – especially in small and mid-cap companies –continues to offer compelling opportunities.

This breadth enables diversification across sectors, geographies and styles, particularly in small and mid-market buyouts, which have historically delivered strong relative performance driven by fundamentally different value drivers than public equities.

“Despite geopolitical risks, the outlook for global private equity remains cautiously optimistic”

Different value drivers, different growth engines

Small and midsized companies are often closer to the engine room of economic growth. They supply larger corporates, drive niche innovation and disrupt established processes, without the inertia that can slow down large incumbents. “These companies are often the real innovators,” Alt notes. “They may not be household names, but they are critical to value creation across economies.”

The growth story in private equity is therefore less about financial engineering and more about operational improvement: upgrading systems, professionalising management, expanding into new markets and driving consolidation.

Valuations and vintage opportunity

While private markets tend to correct more slowly than public markets, the interest rate shock of 2022 did lead to valuation resets. Importantly, the recovery has been more measured, leaving pockets of value still available in 2026. “There are better entry points now than in 2020 or 2021,” says Alt. “Historically, vintages following market corrections have produced some of the strongest returns.”

That said, discipline remains critical. How managers navigated the peak valuation years is still evident in portfolio outcomes today.

Sector focus: Healthcare, software and services

Sector allocation remains a key driver of returns.

“Many businesses in the €50–100m enterprise value range still lack basic digital infrastructure,” Alt says. “That’s where transformation creates value.” Notably, most exposure is to services rather than manufacturing or property – a positioning that has helped insulate portfolios from tariffs and supply-chain disruption.

Navigating AI without chasing bubbles

AI dominates investor discourse, but private equity’s approach is notably pragmatic. Rather than chasing richly valued late-stage technology bets, the focus remains on earlystage innovation and on companies that enable, support or apply AI across industries. “Every investment committee discussion now asks: is AI an enabler or a threat to this business?” Alt says.

While AI may eventually disrupt parts of the services economy, adoption in small and midmarket clients will be gradual. Customisation, trust and human interaction still matter – for now.

Doubling down on winners

One of the most significant structural shifts in private markets has been the rise of GPled continuation funds. These vehicles allow managers and investors to extend ownership of high-performing assets beyond traditional fund lifecycles. “It’s about backing winners for longer,” says Alt. “When you know the business, management and market, the risk profile changes dramatically.” For investors, continuation funds offer optional liquidity, reduced risk and the opportunity to compound returns – a powerful combination in uncertain times.

The 2026 outlook

Despite geopolitical risks, the outlook for global private equity remains cautiously optimistic. Small and mid-market buyouts, specialist managers and disciplined capital deployment continue to offer diversification and differentiated return potential alongside public markets.

“It’s never an either-or,” Benjamin concludes. “The goal is a broad, balanced portfolio, with private equity providing exposure to innovation, transformation and long-term growth that you simply can’t access elsewhere.”

For advisers and allocators looking beyond headlines and hype, private equity’s quieter corners may yet prove its most resilient.

Three ways private equity can drive transformation in SA

By Mbongeni Madonsela Partner at Resolve

Private capital remains one of South Africa’s most effective levers for accelerating transformation within established companies, particularly in sectors that have struggled to expand opportunity through traditional corporate pathways.

This is according to Mbongeni Madonsela, Partner at Resolve, who says private equity is especially well positioned in this regard. “The structure of private equity creates both the mandate and the mechanisms required to deliver measurable transformation,” he explains.

“Because we work so closely with management teams and play an active role in the oversight and direction of portfolio companies, we are able to influence material change in a way that other financial ownership models often cannot.”

Against this backdrop, Madonsela highlights three areas where private equity can play a catalytic role in advancing economic transformation across the country – these being areas that Resolve currently drives some of its transformation imperatives through.

1. Creating opportunities for young job entrants

South Africa’s youth unemployment crisis remains one of the most significant structural barriers to growth. Private equity-backed companies, Madonsela suggests, are well positioned to absorb young talent because PE ownership typically helps to unlock a growth trajectory, as well as clearer organisational structures.

“At the most junior levels of a business, you should have younger South Africans with less experience coming into the organisation,” he says. “As the business grows, as systems

improve, and as reporting capabilities mature, you can create space for entry-level roles that help young people gain their first real exposure to the workplace.” He notes that youth hiring is often achieved through everyday business evolution rather than disruptive restructuring. This includes filling administrative roles with first-time entrants, using natural attrition to introduce new talent, and designing internal pathways that enable young employees to move through the organisation over time.

“Since 2023, three new graduates joined Resolve’s investment team as their first jobs. Each of them has since moved on to positions at FNB, Old Mutual, and Nedbank, respectively,” says Madonsela.

2. Supply chain transformation

Madonsela says supply chain transformation is one of the most under-utilised but high-impact levers available to private equity. Because PE investors sit on boards and influence longterm strategy, they can embed procurement objectives that support emerging suppliers without compromising operational performance.

“By virtue of sitting on the board, we can influence supply chain choices indirectly or directly,” he explains. “If a large portfolio company gives a smaller, black or women-owned supplier even 10-15% of its business, that supplier now has a ‘guaranteed’ market. It can invest in new machinery, build capacity, and hire more people. That is where you see the economic multiplier.”

He stresses, however, that quality must remain the starting point. “Management teams make the final call. The board sets the KPIs, and if those KPIs are achieved, management can be rewarded. But no business should sacrifice operational excellence. Transformation can be achieved while retaining commercial soundness.”

3.

Enabling more diverse executive teams

Private equity’s influence on executive hiring is often the most direct transformation lever. Madonsela says PE investors have a unique ability to shape leadership teams, not by enforcing quotas, but by ensuring that candidate pools are deliberately diversified. “Private equity has arguably the best opportunity to help management teams diversify the C-suite,” he says. “If we agree that, for example, the next role must target someone of specific characteristics, then all candidates will be drawn from that population. It becomes a deliberate and structured process.”

Succession planning is central to this, Madonsela adds. “One proven way we can drive change in executive teams is through intentional succession planning. We look at the next layer of executives and ask whether they reflect the demographics of the country. If not, we work with management to plan for that over time.”

This approach is reinforced by global evidence. Madonsela points to research from McKinsey & Company showing that companies in the top quartile for gender or ethnic diversity are more likely to outperform financially, and to Boston Consulting Group findings linking diverse teams with stronger innovation revenue.

Locally, he notes steady progress, with SAVCA’s latest PE Industry Survey revealing that 23% of portfolio companies now report more than 50% black management – up from 14% in 2023. “It is encouraging to see the industry continue to transform by incorporating diversity at a firm level and across portfolio companies. This is an ongoing process that requires regular alignment, deliberate action, and industry-wide accountability,” Madonsela concludes.

SAVCA now represents the full private capital ecosystem

The SA Venture Capital and Private Equity Association (SAVCA) has formally expanded its mandate to become the representative voice for the entire private capital ecosystem across Southern Africa, reflecting the rapid evolution of private markets in the region. Approved unanimously by members at SAVCA’s AGM last year, the new mandate broadens SAVCA’s scope beyond private equity and venture capital to include growth equity, infrastructure, private credit, real assets, impact investing, venture, secondaries and other private capital strategies.

The shift positions SAVCA to better support capital formation, deployment and long-term value creation in Southern Africa’s real economy. “Private capital is no longer confined to narrow asset classes,” says SAVCA Interim Executive Director, Nicola Gubb. She continues: “It now plays a central role in financing growth, infrastructure, innovation and resilience across the region. Our expanded mandate ensures that

the industry has a unified, credible and influential voice.”

The expanded role strengthens SAVCA’s engagement with policymakers, regulators, institutional investors and market participants, while enhancing research, data, education and advocacy for the broader private markets community.

For investors and stakeholders, the mandate supports: Stronger market infrastructure and policy alignment

Improved visibility and credibility of private capital in Southern Africa

Greater collaboration across investment strategies and life cycles

• A more coherent platform for industry development and growth.

The organisation will continue to convene industry participants, promote professional standards, and advocate for an enabling environment that supports long-term investment and economic growth in Southern Africa.

Beyond religion: Why Shari’ah investing is a universal moral choice

Islamic finances and Shari’ah-compliant investments have been around for centuries.

If you aren’t Muslim, you might think that Shari’ah-compliant investments are something fairly new to the financial industry. However, this type of investing has been around for many years. Today, we see these Shari’ah investments and finance options gaining global attention, surprisingly not only among Muslim investors but also among many investors seeking investments that offer ethical, sustainable and socially responsible options.

The most basic understanding of Shari’ah investing is that these investment vehicles are governed by Shari’ah law. Shari’ah law is a comprehensive set of teachings that guide Muslims in all aspects of their lives, such as morality, spirituality, personal conduct, family, finance and many others. Shari’ah Investments are built around the core principles of transparent transactions, social responsibility, and equitable distribution of risk and reward. But here’s the first intriguing aspect of Shari’ah investments: We forget that these values resonate universally, especially with those who prioritises integrity and sustainability. These kinds of investments represent a moral approach to finance that in this day and time appeals to many investors.

Shari’ah investing is built on ethical foundations that go beyond profit. Let’s break it down, as it’s vital to recognise the following principles to better understand the way these investments are structured. The two significant principles are the prohibition of riba (interest) and avoidance of gharar (excessive uncertainty). Riba is an Arabic word for interest or cost of capital, which is prohibited. Muslims should ensure that when choosing an investment, they avoid those investments that deal in receiving interest. As earning interest from lending money is strictly forbidden, investors will instead look at investments that have returns that are generated through profit-sharing or assetbacked transactions. Gharar is an Arabic term for uncertainty. A basic way to interpret this term is that this occurs in instances when there is a contract that is not transparent between the two parties involved. By ensuring the removal of uncertainty, there is no unnecessary risk or ambiguity at any stage, thereby ensuring that all profits and losses accumulated over the term will be eventually apportioned between the investors. Gharar also refers to the lack of disclosure and deliberate avoidance of transparency, which could be avoided by adding the required information, fostering fairness and accountability. By guaranteeing that these two concepts are always present, as well as other values such as the prohibition of investments in industries which are considered

immoral or harmful, such as alcohol, gambling, pornography, pork and weapons, we are promoting long-term value creation.

Now that we understand the key differences between Shari’ah-compliant and conventional investing, it is clear that Shari’ah investments exclude companies that are involved in prohibited industries, while conventional funds have no restrictions, as well as being largely based on interest-based lending. Let’s get to the second most interesting fact about Shari’ah investments that may not be very widely known: Shari’ah investments share common ground with ESG (Environmental, Social and Governance) investing, which has become a global trend.

“One of the newest and most interesting trends in the Islamic finance to look out for include Green Sukuk”

Both investments are structured to prioritise ethical practices and social responsibility. However, Shari’ah investments often go one step further by excluding sectors like alcohol and interest-bearing companies, namely conventional banks, although these industries could still be included in ESG funds. This makes Shari’ah-compliant investments just as attractive to non-Muslim investors, especially those who value transparency and sustainability. And this allows us to dispel one of the biggest myths or misconceptions about

Shari’ah-compliant investments – you don’t need to be Muslim to invest in these funds. What truly matters is adherence to ethical principles, which have nothing to do with nationality, race or religion, but are simply about being an investor committed to doing the right thing.

Islamic finance is no longer a niche market. It is a growing industry that spans regions like the Middle East, Southeast Asia, and Africa. One of the newest and most interesting trends in the Islamic finance to look out for include Green Sukuk, which operates like a green bond but adheres strictly to Islamic principles by funding renewable energy and sustainability. These innovations in the industry demonstrate that Shari’ah investing is evolving to meet modern demands while still staying true to its ethical roots and values.

As a final disclaimer, Shari’ah investments are not get-rich-quick schemes, and you are highly unlikely to suffer sudden losses from risky bets –making this a good option for many risk-averse investors. In this sense, Islamic investments can be viewed as a holistic ethical alternative to traditional investing – something different to explore when looking at options for your client.

In conclusion, Shari’ah investments offer a structured approach to finance that prioritises integrity, fairness and social wellbeing. Now that we have debunked the myths and misconceptions surrounding Shari’ah investments, we can encourage investors to make smarter, more responsible decisions. Shari’ah-compliant investment options provide a real path toward ethical wealth creation and are not just for Muslims. It’s a moral and sustainable approach for all.

The global outlook on Islamic finance

Once viewed as a niche segment serving a specific religious audience, Islamic finance has become one of the fastest-growing components of the global financial system. Today, it represents a sophisticated, increasingly mainstream investment universe that is attracting attention well beyond its traditional markets – including from advisers seeking diversification, resilience and alignment with sustainable investment principles.

According to analysis by Crisil Coalition Greenwich, a company of S&P Global, global Islamic finance assets are forecast to grow to $9.75tn by 2029, representing a compound annual growth rate (CAGR) of around 10%. That pace of expansion places Islamic finance among the most compelling long-term growth themes in global markets.

While the industry remains geographically concentrated, its evolution, product innovation and growing overlap with ESG principles are steadily broadening its appeal.

Banking still dominates but diversification is accelerating Islamic banking remains the backbone of the industry, accounting for roughly 70% of total assets. However, other segments – particularly sukuk (Islamic bonds) and Islamic funds – are contributing an increasing share of growth. This diversification matters for advisers. Sukuk markets have matured significantly, offering improved liquidity, transparent pricing and exposure to infrastructure and sovereign funding themes. Meanwhile, the growth of Shari’ah-compliant collective investment schemes, ETFs and private funds is making Islamic finance far more accessible within diversified portfolios.

Shari’ah-compliant funding at the centre of infrastructure development, capital market expansion and private sector growth.

For advisers with offshore exposure or clients invested in emerging and frontier markets, the GCC’s Islamic finance ecosystem offers access to large-scale project finance, sovereign and quasi-sovereign sukuk, and increasingly sophisticated Islamic wealth and asset management solutions.

High-net-worth individuals and sovereign wealth funds in the region are driving demand for bespoke Shari’ah-compliant portfolios, structured products and private banking services. This has led to rapid growth in Islamic funds, sukuk portfolios and advisory mandates focused on long-term capital preservation and

at an estimated 18%, driven by demand from high- and ultra-high-net-worth investors seeking faith-aligned solutions without sacrificing diversification or returns.

Technology is another powerful driver. Digital Islamic banks and fintech platforms in Malaysia and Indonesia are rolling out Shari’ah-compliant digital wallets, peerto-peer lending platforms and microinvestment apps. This segment is expected to account for more than 25% of the $350bn global Islamic fintech market, signalling long-term structural growth.

Africa: A high-growth opportunity

“For financial advisers, the growth of Islamic finance is a global investment theme”

While Africa currently represents a smaller share of global Islamic finance assets, it is increasingly viewed as the industry’s final frontier. The continent faces an estimated $100bn annual infrastructure funding gap, creating a natural role for sukuk as an alternative funding mechanism. Countries such as Nigeria, Senegal, Côte d’Ivoire and South Africa have already issued sovereign sukuk to fund infrastructure and development projects.

These issuances create opportunities across the value chain – from underwriting and secondary market trading to currency management and advisory services. Crisil Coalition Greenwich estimates that African Islamic finance could generate $500m to $600m in revenue for investment banks over the next five years, with an additional $80m to $100m linked to green sukuk and sustainability-focused initiatives.

A defining trend has been the alignment between Islamic finance and sustainability. Shari’ah principles prohibit excessive leverage, speculative behaviour and investment in harmful industries, creating natural overlap with ESG investing. This convergence has accelerated the growth of green sukuk and sustainability-linked Islamic investment products – a development advisers should not ignore.

The GCC: The global powerhouse

The Gulf Cooperation Council (GCC) remains the epicentre of Islamic finance, accounting for approximately 50% of global assets.

Total Islamic finance assets in the region are expected to exceed $5tn by 2029, up from around $2.5–$2.7tn in 2024.

This growth is being fuelled by a combination of high oil revenues, government-led diversification strategies and explicit policy support for Islamic finance. Initiatives such as Saudi Vision 2030 have placed

Southeast Asia shows innovation and scale

Southeast Asia, led by Malaysia and Indonesia, represents the secondlargest Islamic finance market globally, accounting for around 20% to 22% of total assets, with assets projected to reach $3tn by 2029. Malaysia, in particular, has positioned itself as a global leader in sukuk innovation. Its development of retail sukuk and sustainability-linked green sukuk has expanded the investor base and reinforced Islamic finance’s role in funding infrastructure and climate-related initiatives. The regional sukuk market is expected to generate more than $1.2bn in revenue over the next five years.

Islamic asset management has also expanded rapidly. Malaysia now offers dozens of Shari’ah-compliant unit trusts, ETFs and multi-asset funds, catering to both institutional and retail investors. Assets in Islamic funds across the region are growing

Beyond capital markets, Islamic banking and takaful (Islamic insurance) are also expanding. While deal volumes remain modest, early participation is laying the groundwork for future growth, with industry revenue pools projected at $220m to $250m over the next five years, and annual growth rates of 15% to 20%.

What this means for advisers

For financial advisers, the growth of Islamic finance is a global investment theme shaped by infrastructure demand, sustainability priorities, demographic growth and financial innovation.

As product availability improves and platforms increasingly offer access to Shari’ah-compliant funds, sukuk and multiasset strategies, advisers have an opportunity to broaden their solution sets – whether to meet explicit client demand or to enhance diversification within global portfolios. Islamic finance’s emphasis on realeconomy assets, risk-sharing and long-term value creation positions it as a compelling complement to conventional investment strategies in an increasingly complex global environment.

Shari’ah investing in 2026: Ethics, innovation and opportunity

By Zaid Paruk CA(SA) CIO, Wealthvest Investment Management

Shari’ahcompliant investing has always been about more than just financial returns. Rooted in principles of fairness, transparency and ethical responsibility, it offers a framework that resonates strongly with investors seeking integrity in how their money is deployed. Once viewed as a niche offering within financial markets, Shari’ah investing has steadily moved into the mainstream. In 2026, it is undergoing a meaningful transformation, shaped by technology, sustainability and global expansion, making it increasingly relevant to investors, both Muslim and non-Muslim alike.

South Africa has a long, if understated, history with Islamic finance. From early Islamic banking offerings to Shari’ah-compliant unit trusts and retirement solutions, the local market has steadily evolved. What is changing now is both the scale and sophistication of opportunity. As global Islamic finance grows beyond $4tn in assets, South African investors are no longer passive observers. They are increasingly engaging with Shari’ah-aligned strategies as part of broader ethical, diversified portfolios.

One of the most important recent developments has been the rise of halal fintech. Digital platforms are reshaping how investors access Shari’ah-compliant opportunities, and South Africa is no exception. Artificial intelligence is increasingly used to automate elements of Shari’ah screening and monitoring, reducing human error while improving consistency and transparency.

For younger South African investors in particular, mobile-first platforms are becoming the primary entry point into investing. These platforms offer accessibility, lower costs and greater clarity around how investments align with personal values. Blockchain technology is also beginning to attract attention, especially for its potential to enhance trust and traceability in asset-backed structures such as sukuk. While still emerging, these tools could materially improve confidence in Shari’ahcompliant products over time.

Alongside technology, sustainability has become a defining theme for Shari’ah investing. There is a natural alignment between Shari’ah principles and environmental, social and governance considerations. Concepts such as stewardship,

responsible ownership and social justice are foundational to Islamic finance, making ESG integration a natural progression rather than a marketing overlay.

Green sukuk have emerged as one of the clearest expressions of this convergence. Globally, recent issuances have funded renewable energy, transport infrastructure and climate-resilient development. For South Africa, this is particularly relevant. The country’s energy transition, infrastructure backlog and growing focus on sustainability align well with assetbacked, ethical financing structures. While local green sukuk issuance remains limited, the framework exists, and investor appetite is steadily building.

The global expansion of Islamic finance also has important implications for South Africa and the wider African continent. Growth is no longer concentrated solely in the Middle East or Southeast Asia. Africa’s rising population, infrastructure needs and increasing focus on ethical capital position it as a natural growth market for Shari’ah-compliant finance. In South Africa, discussions around expanding Shari’ahcompliant investment vehicles have intensified, with asset managers exploring strategies that meet both faith-based requirements and broader ethical standards.

Western markets are experiencing a similar shift. As ESG investing gains traction, many investors are recognising that Shari’ah investing shares common ground with responsible investment principles. Asset-backed financing, a cornerstone of Islamic finance, is particularly attractive in an environment characterised by elevated debt levels, economic uncertainty and market volatility. By emphasising real economic activity and risk-sharing, Shari’ah structures can offer a sense of resilience during uncertain periods.

Performance has played a key role in challenging outdated perceptions. Shari’ahcompliant portfolios are sometimes assumed to be constrained or structurally disadvantaged, yet research and real-world outcomes increasingly show competitive risk-adjusted returns. Ethical screening often excludes companies with excessive leverage or speculative business models, which can help reduce exposure to extreme volatility. In South Africa, where investors are acutely aware of risk, this disciplined approach resonates strongly.

At Wealthvest Investment Management, we have seen this firsthand. Our approach

to Shari’ah investing is grounded in global diversification, disciplined stock selection and a strong emphasis on quality businesses with sustainable growth characteristics. Shari’ah compliance is not viewed as a limitation, but as a framework that naturally encourages prudent capital allocation, long-term thinking and alignment with real economic value creation. For South African investors, this global perspective is particularly important given local market concentration and currency risk.

Despite the progress, challenges remain. Standardisation across jurisdictions continues to be an issue, with differing Shari’ah interpretations sometimes creating complexity for investors. Education is another ongoing hurdle. Many South Africans are still unaware of the breadth of Shari’ah-compliant options available, or they assume such investments are relevant only for Muslim investors. In reality, the principles underpinning Shari’ah investing – fairness, transparency and the avoidance of excessive risk – have universal appeal.

For South Africa and the broader region, these challenges represent opportunity. By strengthening education, encouraging regulatory clarity and embracing innovation, the country could position itself as a credible hub for Shari’ah-compliant finance in Africa. Infrastructure development, renewable energy projects and private-sector growth all align naturally with asset-backed, ethical financing structures. Local fintech innovation is already beginning to play a role, opening new pathways for investors to participate in Shari’ahaligned strategies.

As we look ahead, Shari’ah investing in 2026 is no longer simply about avoiding certain industries. It is about embracing innovation, sustainability and inclusivity, while remaining true to enduring ethical principles. For Muslim investors, it offers a way to align financial decisions with faith. For non-Muslim investors, it provides a disciplined and responsible investment framework that prioritises integrity and long-term value.

In a global and local financial environment searching for stability and trust, Shari’ahcompliant finance offers South African investors a compelling path forward – one that is ethical, resilient and increasingly competitive.

By Hymne Landman CEO at Momentum Wealth

IInvestment platforms: Powering advice, enabling better client outcomes

n an increasingly complex investment environment, financial advisers need more than administration and efficiency from an investment platform. They need a trusted partner that enables ease of business, scale, enhances the advice process, and supports better client outcomes, all while keeping the human relationship at the centre. Effective and efficient investment administration platforms have therefore become essential for advice practices in South Africa.

For nearly 30 years, Momentum Wealth has been part of this evolution. Established in 1996 as Momentum Administration Services, the business has grown into one of South Africa’s largest linked investment service providers. In 2021, Momentum Wealth marked its 25-year anniversary, a milestone that reflected not only longevity but also a consistent focus on innovation, reliable administration, and longterm adviser partnerships.

“Technology is reshaping the way advice is delivered, and platforms play a critical role in helping advisers adapt”

At its core, an effective investment administration platform must simplify complexity. Advisers increasingly manage diversified investment portfolios across multiple asset classes, investment managers, tax wrappers and jurisdictions. It gives advisers the ability to structure, monitor and adapt these portfolios efficiently, while providing clients with clear reporting and visibility of their investments.

Momentum Wealth’s platform offers advisers access to a broad range of local and global investment solutions – from unit trusts, model portfolios and ETFs to direct shares, personal share portfolios and specialised investment solutions. A comprehensive suite of tax wrappers enables advisers to structure portfolios in a way that aligns with each client’s tax position, life stage and financial objectives. Offshore capabilities through Momentum Wealth International further support global diversification, estate planning and tax efficiency.

However, administration alone is no longer enough. Technology is reshaping the way advice is delivered, and platforms play a critical role in helping advisers adapt. Momentum Wealth continues to invest significantly in digital capability, enabling

faster processing, reduced paperwork, and more intuitive online experiences. Many processes that once took days can now be completed end-to-end in minutes, freeing advisers to focus on strategic advice and client relationships and unlocking efficiencies in their practices..

Data insights and analytics are also becoming powerful tools in the advice journey. By leveraging data science and behavioural finance research, platforms can provide insights that help advisers understand investor behaviour and guide clients through volatile market conditions. For example, research* conducted on the Momentum Wealth platform has shown how emotionally driven investment switching can materially erode returns over time. Equipping advisers with these insights can help them to personalise communication, manage behavioural risks, and ultimately improve long-term client outcomes.

Critically, even as platforms become more digital and data-driven, the human element remains essential. Momentum Wealth has always believed that investing is deeply personal. Technology is there to enhance the adviser’s role, not replace it. We design our platforms to support advisers in delivering personalised advice at scale, while maintaining the trust, empathy and judgment that clients value most.

As Momentum Wealth approaches its 30-year milestone, its role in the platform landscape continues to evolve. By combining robust administration, ongoing and deliberate technology investment and deep adviser partnerships, the business remains focused on one goal: enabling financial advisers to deliver better investment experiences and outcomes for their clients, today and into the future.

To learn more about Momentum Wealth, talk to your Momentum consultant, or visit momentum.co.za and select ‘Investments’.

*Momentum Investments 2025 Sci-Fi Report

The quiet backbone of modern advice

In an increasingly complex investment environment, Linked Investment Service Platforms (LISPs) have become a foundational part of how financial advisers construct, administer and manage client portfolios. While often operating behind the scenes, LISPs play a critical role in simplifying access to investments, improving transparency and supporting advice businesses as regulation, technology and client expectations continue to evolve.

At their core, LISPs are administration platforms. They don’t manage money, select funds or provide advice. Instead, they provide a consolidated environment through which advisers and investors can access a wide range of investment products from multiple asset managers, all on a single platform.

“LISPs exist to make life easier for advisers and investors,” says Sunette Mulder of the Association for Savings and Investment South Africa (ASISA). “They provide consolidated access to multiple providers and products, along with reporting and administration, without influencing investment decisions.”

ASISA’s role in the LISP ecosystem ASISA acts as a voluntary industry association that represents the collective voice of South Africa’s savings and investment industry. This includes asset managers, collective investment scheme (CIS) managers, life offices and LISPs.

ASISA was formed through the consolidation of several industry bodies, including the Association for Collective Investments (ACI), the Investment Management Association of South Africa (IMASA), Life Offices Association (LOA) and the Linked Investment Service Providers Association (LISPA).

“The decision to bring these associations together was about efficiency and coherence,” explains Mulder. “The same companies were sitting on multiple committees, often discussing the same issues. ASISA allows the industry to speak with one voice, while still representing diverse views.”

Importantly, ASISA is not a regulator and does not police its members. Regulation and supervision sit with the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). ASISA’s role is to engage with policymakers and regulators, coordinate industry responses and represent member perspectives.

When draft legislation or regulatory proposals are released, ASISA collates

input from across its membership and submits a consolidated response. “We don’t force consensus,” Mulder notes. “If there are minority views, those are included. Regulators need to understand the full spectrum of opinion.”

Why LISPs matter more than ever

For advisers, the practical value of LISPs lies in simplicity and efficiency. A client retiring with a lump-sum benefit does not need to approach multiple asset managers individually. Through a single LISP, advisers can construct diversified portfolios using funds from different managers, administer switches and provide consolidated reporting. LISP platforms also provide the model portfolio technology infrastructure core to the functioning of many Discretionary Fund Manager (DFM) propositions.

“For advisers, the practical value of LISPs lies in simplicity and efficiency”

Statements, valuations and tax reporting are centralised, giving both advisers and clients a clearer view of overall investments. In an advice environment increasingly focused on outcomes, transparency and ongoing service, this consolidation is invaluable. “Access and information are key,” says Mulder. “A LISP allows investors to see all their investments in one place, and advisers to manage those investments more efficiently.”

Regulation, governance and investor protection

While LISPs themselves are administration platforms, they operate within a robust regulatory framework. As authorised financial services providers, they are subject to FSCA requirements, including governance, compliance and operational standards.

In addition, LISPs apply regulatory requirements relevant to the products they administer, such as collective investment schemes or retirement products, within their systems and processes. “South Africa is one of the most well-regulated financial markets globally,” Mulder says. “Our regulators are aligned with international standards, and that provides comfort to advisers and investors alike.”

As technology accelerates, this balance between innovation and investor protection becomes increasingly important. Automation, digital onboarding, enhanced

reporting and data analytics all offer efficiencies, but they also raise risks around data security, system resilience and fair client outcomes.

“Technology brings tremendous advantages, but it also increases the responsibility to ensure systems are secure and clients are treated fairly,” Mulder adds.

Choosing the right LISP partner

For advisers, selecting a LISP is a strategic business decision. Product access is a key consideration, as not all platforms offer the same range of asset managers or solutions. Cost structures, reporting capabilities, adviser support and service levels also vary significantly.

Another critical factor is transparency around fees. ASISA’s Effective Annual Cost (EAC) measure allows advisers and clients to compare the total cost of investing across platforms and products. “Cost perceptions around LISPs need to be weighed against value,” says Mulder. “The EAC makes it possible to see exactly what you’re paying for administration, investment management and advice, and to compare that with going direct.”

The ability to switch funds, access specialist products such as hedge funds or offshore investments, and manage portfolios efficiently often justifies the additional platform cost, particularly for long-term investors.

Looking ahead

As products become more sophisticated and client expectations continue to rise, LISPs are likely to play an even more central role in advice businesses. Increased access to offshore assets, alternatives and digital functionality will shape their evolution. However, Mulder cautions against being blinded by innovation alone. “At the end of the day, LISPs are looking after people’s hard-earned money. Regulation, governance and trust remain non-negotiable.”

For advisers navigating an environment of regulatory scrutiny, technological change and heightened accountability, LISPs remain a critical enabler as the infrastructure that allows quality advice to scale, adapt and endure.

How LISPs make your life easier

MoneyMarketing spoke to Werner Lotriet, Executive Head: Business Development for Glacier, to explain the importance of Linked Investment Service Providers (LISPs) in more detail.

How would you say your platform supports advisers in delivering scalable, compliant and client-centric advice?

Glacier’s strategy starts with making sure the client/investor is at the centre of our focus. Product and solution development is driven by clients’ needs, behaviours, and desired outcomes, ensuring that we deliver sustainable value tailored to their long-term goals. Glacier offers a broad solution set that caters for all the investment needs of the client. We believe that the advice provided by an intermediary is an important part of the value chain. We therefore support financial intermediaries through training and education on regulatory matters, investment dynamics, our products and solutions, and matters like tax and estate planning. On the administration side, we assist with efficient query resolutions and provide direct access to our investment experts (business development managers) in various regions. Our Insights website offers access to thought leadership and practical resources designed to support intermediaries in delivering effective financial planning and advisory services.

What role do LISPs play today in helping advisers manage complexity across products, providers and regulatory requirements?

The biggest role LISPs can play in this regard is to make the complex world of investments easier to understand – among other things, to translate investment jargon for clients to understand so they are comfortable enough to make important investment decisions. Glacier offers investment tools, systems and websites that simplify financial planning for the intermediary, and support the advice process by facilitating accurate record-keeping and consolidated reporting, accessible by both intermediaries and clients. Glacier guides and educates intermediaries to build a comprehensive understanding of the evolving investment and regulatory landscape, enabling them to recommend the most suitable solutions for each client’s unique needs. By equipping intermediaries to navigate and manage complexities with clarity and effective solutions, we help ensure the long-term sustainability of our industry.

How are you using technology and data to improve investment outcomes and enhance the adviser–client experience?

We are incorporating increasingly more technology and data-led tools into our daily delivery and support for both intermediaries and clients. Our advice-led planning tools integrate

regulatory requirements with product features, helping intermediaries and clients identify the most suitable options for each unique circumstance. Specifically, Glacier leverages data insights to benchmark clients’ own retirement portfolios against industry standards, ensuring informed decision-making. Through Glacier Research and Glacier Invest, we have introduced AI-powered tools that enhance fund research and collaboration with asset managers. Finally, our ongoing technology transformation journey continues to implement solutions that drive efficiency and elevate the client experience –whether in new business, ongoing maintenance or consolidated reporting.

What should advisers be looking for when selecting a LISP partner in an increasingly competitive and consolidated market?

Key elements to consider in selecting a platform (LISP) are:

1. Client and intermediary service: The quality of administration, speed of query resolution, and staff expertise are critical to delivering consistent value.

2. Technology: Robust, stable system functionality with scalability ensures continuous improvement, future-readiness, and the ability to administer a full range of investment solutions that support intermediaries in advising and managing clients effectively.

3. Pricing competitiveness: Sustainable value across the investment chain requires competitive pricing. Platform scale should enable cost efficiencies for clients, while affiliation with a large financial institution reduces risk by providing access to capital for transformational strategies.

4. Distribution and support team: Access to a skilled team that provides up-to-date industry insights, problem-solving, and strong support in an administration-intensive environment is essential.

5. Comprehensive product access: A single platform offering all accredited investment solutions and products ensures streamlined advice, service, and consolidated reporting for both clients and intermediaries.

How do you support advisers with practice efficiency, reporting, and integration across their broader advice ecosystem?

The Glacier value differentiator lies in the fact that we are evolving beyond a traditional LISP into a comprehensive platform that provides broader investment solutions through a single access point. This empowers

intermediaries to address client needs and strategies across the entire investment journey, creating lifetime value for clients through their trusted intermediaries.

Glacier supports intermediaries on two levels:

• Client level: Making it easy to do business with Glacier from a client advice, client servicing and reporting perspective

Intermediary or practice level: Providing practice reporting (client information, fee information, investment fund information) and client data insights to strengthen retention and unlock new business opportunities.

Looking ahead, how do you see the role of LISPs changing over the next five years, and what does that mean for advisers’ business models?

LISPs have always played an integral role in intermediaries’ investment practices, and that role will only deepen as technology drives greater integration. Reliance on multiple stand-alone IT systems will continue to create inefficiencies and negatively affect client experience. Looking ahead, integrated technology solutions will unlock efficiencies, enhance client outcomes, and reduce risk across the value chain. As platforms expand closer to intermediary practices, they will foster a more sustainable and resilient investment ecosystem.

Platforms will also make the use of nontraditional investment instruments more accessible, while changing client demographics demand that platforms position themselves to be future fit over the next decade. The industry’s values will increasingly be defined by delivering client value through easy access to solutions and funds across all client demographics, supported by diverse engagement models – from self-directed investing to fully advicedriven approaches.

For intermediary practices, this evolution creates opportunities to join networks that leverage technology to improve efficiency, enhance client experience, and lower the cost of doing business – a trend already evident in South Africa and the UK. At the same time, wealth practices will grow as high-networth clients seek comprehensive suites of solutions. Intermediaries who build diverse client bases that reflect the full South African demographic landscape will gain a competitive edge, integrating established expertise with a growing market segment.

Ultimately, the future success and sustainability of the investment industry will depend on embracing technology’s capabilities combined with human insight.

AI: Insurance’s new operating system for 2026

As insurers have entered the AI age, they’ve regarded the technology as something like a hot new phone app: They know they want it, but they are still figuring out the best way to use it. For 2026, SAS’s industry experts foresee a breakthrough year in which AI will become central to how insurers operate – no longer as an accessory, but as something like the business’s operating system, powering functions from underwriting to claims decisions.

Even as the industry is poised to embrace this technological transformation, though, it continues to face growing challenges from climate change, economic turbulence, and regulatory volatility that could threaten the future of insurance.

Here are some industry forecasts from SAS experts:

“A Fortune 500 insurer will begin phasing out policy admin systems in favour of insurance copilots in 2026. Some large insurers have already signalled their intent to invest big in AI technologies. And SAS’s survey data shows that insurance executives have a high level of trust in generative AI – twice as high as for machine learning, in fact. Policy admin systems require substantial investment and upkeep. However, interactions with data through copilots can eliminate the need to utilise those admin systems to underwrite policies or settle claims.” – Franklin Manchester, Principal Global Insurance Adviser.

“Many straightforward insurance claims will be settled in minutes by agentic AI. Insurers will need strong AI governance to safeguard customers’ trust, though. That means ensuring that their AI platform has the security controls and governance to minimise risks – from accidental bias in claims decisions to exposure and cyberattacks. The companies that install robust AI governance will earn and protect that trust. Building systems that act fast – and act right – will define the leaders of the next decade.” – Alena Tsishchanka, Global Customer Advisory Director.

“Insurers will lean harder into AI-powered actuarial modelling and decisioning. This will result in improved accuracy, speed and efficiency across the policy life cycle, from underwriting through claims. The opportunity is twofold: meaningful progress in narrowing the industry’s $1.8tn protection gap, and greater resilience in the face of escalating climate risk and economic volatility.” – Stu Bradley, Senior Vice President of Risk, Fraud & Compliance Solutions.

“Insurance executives have a high level of trust in generative AI – twice as high as for machine learning”

“Underwriting will move from rule-based to relationship-based AI. Insurers will rely on AI systems that learn from longitudinal customer data rather than static rules. This shift will turn underwriting into an ongoing dialogue between models and customers, recalibrating risk dynamically as lifestyles evolve. The winners will be those who embed explainability and ethical transparency into these adaptive models.” – Oana Avramescu, Senior Manager of Insurance Industry Consulting.

“The accelerating pace of climate change will cause increasing damage. Insurers must increasingly evaluate their business outcomes and adjust their risk exposure accordingly. This can be achieved by optimising reinsurance strategies, but there’s a good chance customers will see more expensive premiums, and insurers may even withdraw from specific business areas. Consequently, the global insurance protection gap is likely to widen further.” – Thorsten Hein, Global Advisor for Insurance Product Innovation.

“Insurers will seek out the best individual AI tools rather than one end-to-end solution. As fraudsters use AI to create false identities, documents and images to support fraudulent claims, insurers will be looking for best-ofbreed tools – rather than all-encompassing

end-to-end solutions – to help detect these risks and reduce related losses. 2026 will also bring an increased focus to improving investigations, with insurers looking to augment their current detection efforts with solutions that include the use of copilots and AI agents to help automate processes and drive efficiencies, allowing investigators to do more with less.” – Nick Feast, Principal Business Solutions Manager for Risk, Fraud & Compliance.

“In the US, states will take the lead in regulating AI. AI regulatory compliance will become more complex, with more states enacting regulations. Leading insurers will embed oversight and compliance features into their AI and modelling programmes.” – James Ruotolo, Senior Director of Presales Support.

“Cyber insurance, already a $16.3bn global market, will continue to grow rapidly. As the market becomes more sophisticated, insurers will move from generalised actuarial modelling for cyber to more targeted technical underwriting on a client-by-client basis.

Insurers will increasingly favour those clients that exhibit and enforce proper security controls and governance while denying clients that do not.” – Norman Black, Insurance Industry Solutions Director, EMEA.

By Sameer Kumandan MD of SearchWorks

AGeographic transparency takes centre stage in FICA compliance

t the end of 2025, the Financial Intelligence Centre (FIC) released draft Directive 10 for public comment. The directive emphasises stronger geographic location disclosures by accountable institutions at the point of registration. Under the directive, accountable institutions must share information about their head offices, branches, and subsidiaries, including the branches of their subsidiaries. This relates to offices and branches located within or outside the Republic of South Africa.

While geographic location has always been a foundational element of anti-moneylaundering and counter-terrorist-financing (AML/CFT), this recent directive from FIC highlights the importance of transparency. At the centre of the draft directive is a deceptively simple idea: regulators need a clearer view of where accountable institutions operate and of how they are geographically structured. This is vital in a financial system increasingly shaped by cross-border activity, complex corporate structures, and distributed operations.

Location, location, location

Geographic location plays a central role in how financial institutions assess risk, apply due diligence, and meet regulatory obligations under FICA. For example, some locations are seen as riskier because it’s easier for money to move across borders without being noticed, there’s more organised crime, or governance and compliance rules aren’t enforced very well. In this way, geographic location can be a critical risk signal. For instance, a small port town with limited customs checks might be more vulnerable to money laundering than a big city with strict financial regulations. FICA also expects accountable institutions to understand their customers’ geographic footprint so that they can apply appropriate levels of customer due diligence.

Geographic data also affects ongoing monitoring because customers that operate across borders require enhanced scrutiny. If a business is constantly moving money between countries with different regulatory frameworks, this should trigger additional checks. But without accurate and up-to-date location information, institutions can miss unusual patterns that might indicate illicit activity.

In recent interviews, acting director of the FIC, Pieter Smit, explained that even after exiting the grey list last year, it is essential for South Africa to continuously strengthen the effectiveness of its AML/CFT frameworks. He stressed that this must be an ongoing process, rather than a once-off fix. According to Smit, the geographic location and the structure in which accountable institutions operate can either increase or decrease the risk of being exploited by criminals, which is why it’s so important.

Where to from here?

Stakeholders are invited to submit comments on Directive 10 by the close of business on Friday, 13 February 2026. Should the directive come into force, accountable institutions must update their registration details within 90 days

of the commencement date. This would mean gathering accurate location data for head offices and all branches and subsidiaries across jurisdictions. Obviously, if a company has hundreds of branches and subsidiaries, this process will be more complicated. But, once the records are updated, it’s just a matter of maintaining and updating the information should anything change in the future.

Automated compliance tools and applications, like VOCA from SW360, streamline FIC compliance in a clear, practical way. If, for example, you have a customer and all their checks are clear, but they suddenly start receiving large payments routed through banks in a jurisdiction flagged for weak AML controls, this activity warrants further investigation. Ongoing monitoring tools keep tabs on sanctions lists and Politically Exposed Persons (PEPs) and will flag this unusual activity. As an accountable institution, you can then investigate, update the client’s risk rating, and file any required FIC reports. Should Directive 10 come into force, it might mean more paperwork for accountable institutions, but it also makes it easier to detect, assess, and act on risks before it’s too late.

“Regulators need a clearer view of where accountable institutions operate”

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