MoneyMarketing July 2025

By Siobhan Cassidy MoneyMarketing Contributor

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different. “It was Baby Boomers and some Gen X before, now it is largely Gen X and Millennials driving strategy. There is a strong shift towards social responsibility. They are asking, ‘What are we doing with this money?’”

Hartzenberg notes that younger clients are more engaged and hands-on, often participating in structuring calls, choosing investment themes, even joining due diligence trips.

The modern Family Office

Modern Family Offices offer much more than investment services. There’s a growing emphasis on succession planning, family charters and educating the next generation, particularly as internationally educated heirs return home with different ideas about wealth, risk and impact.

Hennie Loubser, founder and CEO of Mosaic Family Office, says the landscape is becoming increasingly complex for the 5 000 to 10 000 individuals in South Africa he estimates qualify as Family Office clients. He believes that only about 20 families in the country can justify a single-Family Office; others being better served by a multi-Family Office, which offers shared expertise and economies of scale.

He notes that if one client experiences something complicated, the Family Office develops a solution for it that can be adapted for others. Also, they have specialists for property, investment, tax, i.e. a full ecosystem of services.

Certain financial problems require bespoke solutions, which is what Mosaic Family Office provides, he says. “We’re essentially the executives of that family’s world. We manage personal taxes, SARS queries, trusts, and offshore investments. It’s an intimate relationship.”

Loubser adds that tax complexity has increased substantially, especially following South Africa’s grey-listing. “The disclosures required now for trusts, companies, and offshore structures are intense. On the ultra-high-net-worth side, SARS is assigning personal tax consultants and asking more and more questions.”

Families are complex, and intergenerational wealth planning involves sensitive and strategic decision-making. “There are grandparents, ex-spouses, illegitimate children,” says Loubser. “Do you use a single-family trust or one for each child? Can your trust deed be amended? How do you futureproof it?”

EARN YOUR CPD POINTS

Fortunes lost

Ninety One’s Welsh cites a 20-year study by the US-based Williams Group, which found that 70% of wealthy families lose their wealth by the second generation, and 90% by the third. The reasons? Poor communication, lack of planning, and heirs ill-equipped to manage their inheritance.

This dynamic holds true in South Africa, where family businesses and trusts often lack proper succession planning and governance frameworks.

Henri Le Grange, Certified Financial Planner at Old Mutual Personal Finance, warns that “accumulating assets is only half the battle. Creating a lasting financial legacy is about teaching the next generation how to manage money and understand its purpose.”

Citadel’s Suchard agrees: “In terms of governance and investment oversight, Family Offices are increasingly focusing on aligning different generations around similar financial values. This involves comprehensive succession planning and educating the next generation on the importance of preserving and growing family wealth.”

As interest in Family Office services has grown, so too, has concern about the misuse of the term. Banks and wealth managers stand accused of branding private wealth offerings as Family Offices, without offering the comprehensive, relationship-based service the term implies.

PIM Capital’s Hartzenberg points out that with downward pressure on fees, service providers are finding other ways to charge. “Some are finding alternative services to offer in addition to their traditional offerings in order to participate in the value chain. The term Family Office is used as if it were a product, which it is not. It’s a 360-degree private wealth service and relationship.”

Private fortunes are passing into different hands in South Africa, as around the globe.

As Welsh concludes, the shift from individual-centric to family-centric advice is no longer optional. “It’s a survival strategy. Advisers who don’t embed themselves across generations risk becoming irrelevant, and losing the assets altogether.”

Read more about Family Offices from page 8-11

The FPI recognises the quality of the content of MoneyMarketing’s July 2025 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

ED'S LETTER

In a world where global events have massive impact on local markets, advisers need to stay nimble, informed and empathetic. It’s a time where a considered, well-curated offshore portfolio is more important than ever. In this issue, we’ll be exploring how to build globally balanced portfolios in increasingly fragmented markets.

Closer to home, we examine the financial and advisory implications of switching medical aids – a move that's increasingly more common, but not without cost or complexity. To celebrate National Savings Month, we also dive into South Africa’s saving culture – or lack thereof – and what advisers can do to turn a national weakness into a client opportunity. It’s about financial education, which is needed now more than ever.

Our feature on ESG investing challenges lingering myths about performance tradeoffs. Are you sufficiently versed on this category? Experts warn that in the next five years, it will be increasingly imperative. Lastly, we spotlight hedge funds – long misunderstood, now more accessible – and ask whether it’s time they played a bigger role in client conversations.

As always, our goal is to equip you with insight that informs and inspires. In times of change, good advice matters more than ever.

Stay financially savvy,

Sandy Welch Editor, MoneyMarketing

David Lloyd Founder and CEO of King Alexander Investments

What made you want to create a platform like this?

My background is applying a very focused, client-centric approach, combined with out-of-the-box thinking, to disrupt various aspects of the rather staid financial services industry. But this has never been disruption for disruption’s sake. It is always disruption for the benefit of the client. With decades of global experience to my name, I started looking at South African investment platforms some years ago. Locally, they are known as LISPs (linked investment service providers), and they have always offered the same model, which is expensive and, I think, patently unfair.

Let us say that a client can earn X amount of rand with relative security from a deposit account but instead chooses to invest in the stock market – putting their hard-earned capital at risk to (hopefully) earn a much greater return. But, traditionally, the client literally takes on all the risk while everyone involved gets paid, at the same rate, regardless of whether the returns are good or not. Does that sound fair? There just had to be a better way! And, at King Alexander, we found it. Now, financial advisers and their clients have access to a new, lower-cost LISP: a completely unique, properly clientcentric model that ensures clients only pay when they are ‘winning’.

What makes it so revolutionary?

Where do I start? It is the first LISP platform in South Africa to charge a fixed rand platform fee. At just R100 per month, divided across all plans per investor family, this is the first game-changer we have put into play. Next, we are the first investment platform anywhere in the world to provide 100% GaranT cover on every plan. GaranT locks in both the initial contribution and future growth when it matters most: at death. We have built this peace of mind into our model at no cost to clients. In another world-first, King Alexander brings the “only pay when you are ‘winning’” fee structure to retail investing. Advisers still receive their ongoing advice fees and investment managers still levy their fees, but we track these and refund them to the client (even including the VAT) and instead only charge them for these services if their portfolio outperforms a preset target return (typically 1% to 1.5% a month).

What do financial advisers stand to benefit from the product?

We have designed our LISP to work alongside advisers’ existing platforms – not to replace them. We want to be their second LISP, used just for those too risk-adverse clients or investors who think their fees are too high. It is also designed for those clients who resent paying asset management fees when their investments are not getting decent returns. By adopting King Alexander as their secondary platform for these very investors, advisers can be sure of two things: managing the investments will be simple, and the investors themselves will be comfortable that their concerns have been addressed. Our aim is not only to make these clients happier (and thus less likely to leave) but also to generate higher long-term returns that are only possible when investing in a portfolio with a higher equity component. And the upside for advisers? We can increase the value of their ongoing advice fees and, as top-up contributions are subject to zero platform fee, clients are incentivised to always invest with their adviser.

What have been your best – and worst –moments when working on a start-up?

My career highlight has been making King Alexander a reality. Having the freedom to create and shape a business from end-toend in line with my vision, without any legacy restrictions, while at the same time being able to tap into the considerable technical expertise and entrepreneurial experience of our main shareholder, King Price. A downside has been managing the sheer scale and variety of things that have had to be decided on or designed, then implemented or built, before we could go live. (And this is despite us outsourcing the administration to an existing, experienced company.) But fingers crossed, one day soon, all this work might become a part of my highlights reel.

What are some of the biggest lessons you have learnt along the way?

The biggest lesson, I think, is how important culture is – especially when you want to turn an industry upside down. Partnering with King Price is the best decision I have ever made because they believe that anything is possible. To them, problems are simply issues that have not been solved yet. And, they have an amazing team which, right from the very top, believes in shared outcomes and brings a can-do attitude to work every day. I have found that there are

many naysayers and doubters in the financial services industry.

Too many people think that because the industry has always been this way, that means it is the best way. Luckily, none of them work at King Price! I have also learned a very important thing about myself: even while working with an outstanding team, I still constantly underestimate how long it takes to finish things.

What has been the highlight of your career?  This will probably sound corny, but it is true: launching King Alexander. Firstly, I believe that we are truly breaking new ground and lifting the standards of client-centricity. And secondly, after creating dozens of financial products for other providers, I have now finally created my own company. I am very proud of both these achievements. My shareholders and I still have very ambitious plans, though. We want to expand geographically, and we also aim to turn the traditional LISP platform, with its rather narrow focus, into a ‘super platform’ that will provide advisers with revenue streams they have never even dreamt of.

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

I am keeping an eye on what is happening to interest rates. Because investing in the stock market is a direct alternative to saving in a deposit account, these factors are inextricably linked.

What are some of the best books on finance/investing you have read, and why would you recommend them?  I would tell anyone to read anything by Warren Buffet. He combines good analytics with common sense, and overlays it with strong advice about avoiding hype. To paraphrase him, he will not ‘buy a stock market darling’ (because it will be overpriced) but he will buy a fundamentally good company when the market is gripped with fear (because then it is underpriced). It sounds easy but it is actually very hard to do.

Symmetry, new investment arm at Old Mutual

Symmetry, the new investment management division within Old Mutual, is redefining how it partners with financial advisers by moving beyond the traditional service provider role to become a collaborative investment solutions architect. Kieyam Gamieldien, Managing Director at Symmetry, explains the rationale.

Economic policymaking is now as unpredictable as the markets themselves. The delayed US trade tariff regime, which is prompting policy shifts worldwide, is just one of many global events shaking investor confidence. Ongoing conflicts in the Middle East and Ukraine, coupled with evolving financial regulations, are adding to the uncertainty. As a result, client expectations are changing, and we must continuously adapt our business and solutions to remain competitive.

In this environment, investment professionals play a heightened role in striking a balance between portfolio diversification and returns. Investing successfully in today’s turbulent markets and meeting clients’ shifting expectations requires more than smart asset allocation.

“We needed to enhance our multimanager offering into an investment solutions business”

Over time, we have realised that to deliver on client needs, we needed to enhance our multimanager offering into an investment solutions business. The business evolved to reflect our growth in services and expertise, built on over 25 years of investment experience and market insights. As a result, we have revisited how we take our business to market, as the current

naming protocol contains the word ‘multimanager’. To signal change and continuity in our business, we are now going to market as Symmetry, a name that is part of the DNA of our investment business.

The name Symmetry also accurately captures what we do, balancing both sides of the investment equation, and the ambition of being a full-service investment solutions business. Importantly, our operational framework is unchanged, as Symmetry remains wholly owned by the Old Mutual Group and operates as a distinct, independently managed entity with its own leadership and mandates.

The overarching goal for the business is to continue enhancing the offering and remain relevant to meet investor needs and demands. The investment business will include the existing retail and institutional multi-managed funds, Discretionary Fund Management (currently called Tailored Fund Portfolios), and incubate a Best-in-Class proposition, in addition to expanding the investment product range.

We have enhanced existing capabilities in Manager Research, Multi-managed Solutions, Specialist Investment Funds, Discretionary Fund Management (DFM), Model Portfolios, and Investment Tools.

In addition, we have created new capabilities in providing outsourced CIO services and Investment Consulting. We are also excited about the newly incubated Bestin-Class offering, a premium solution that aims to identify and form partnerships with accomplished asset managers who have a unique approach to investment management and have delivered exceptional, sustained longterm performance.

He adds that the plan is to offer bold thinking and consistent delivery of positive client outcomes, balancing risk and return anchored in agility and discipline to plan for the long term. We will do so by deepening relationships

with advisers and clients while growing alongside them. Accessing new markets and bringing innovative investment solutions to market is a key opportunity we are exploring.

By Kieyam Gamieldien

We build solutions that reflect clients’ long-term investment objectives in the context of the socioeconomic and industry realities they face. Whether we’re working with independent advisers or institutions, our team places a strong emphasis on understanding the client’s context before designing or implementing a strategy.

Regardless of the state of the markets, our clients’ investment goals and needs remain key to our approach. The ultimate objective is to deliver value over the long term.

How will financial advisers benefit?

Rather than simply offering a menu of preexisting funds, Symmetry starts with the client in mind, working closely with advisers to understand the specific needs, constraints, and goals of each investor. It’s not about pushing products; it’s about designing solutions that are built from the ground up around the client’s unique requirements, whether that’s lower fees, specific outcomes, or tailored asset allocations. This more integrated, responsive model strengthens the relationship between Symmetry and the adviser community, ensuring that investment strategies are both fit-for-purpose and adaptable. The result is a deeper level of engagement and support, particularly valuable not only for institutional clients but increasingly for individual households seeking personalised financial planning.

From cancer survivor to financial advocate

By Sandy Welch Editor MoneyMarketing

For Darren Robertson (CFP), a seasoned financial planner and cancer survivor, life and work are inextricably linked. His story is not just about managing portfolios or building wealth, it’s about resilience, preparation and purpose. At the intersection of personal tragedy and professional conviction, Darren has found his calling: to help people secure their futures before crisis hits.

A journey that changed everything “I was 40 when I was first diagnosed,” Darren says of his battle with prostate cancer, a disease more commonly associated with much older men. “Prostate cancer is generally slow growing. For many men, it’s something they’ll die with, not from. But mine was aggressive. I was a typical outlier on both ends.”

His initial treatment included surgery, which gave him hope that the cancer was behind him. But it wasn’t. “When it came back, that was the real scare,” he says. A second round of treatment followed – 35 sessions of radiation, hormone therapy that halted his testosterone production, and the physical and emotional toll that came with it.

Now cancer-free, Darren is still managing the lingering effects of treatment: fatigue, weight gain, and low testosterone. But the experience has reshaped how he sees his role. Not just as a financial adviser, but as an advocate.

“Their goal is to simplify financial complexity while educating their clients at every step”

Financial planning meets advocacy

Before his diagnosis, Darren had already spent 15 years in the financial services industry, beginning with Liberty Group in 2003 before launching his independent practice, Opes Wealth, in 2017. Just six months after going solo – and six months after the birth of his child –he was diagnosed.

“That time was brutal,” he says. “But I knew I had everything in place. My will was done. I had income protection, critical illness cover,

a buy-and-sell agreement with my business partner, and a global education policy for my daughter.”

It’s a powerful illustration of what proper planning can do. “It didn’t take away the fear of dying, but it gave me peace of mind. I knew my family would be okay.” It’s this real-world clarity that Darren now brings to every client conversation. “When I speak to people, it’s not abstract. It’s not theoretical. I’ve lived it.”

Planning with purpose

Opes Wealth positions itself as a “family office for people and families who can’t afford to run their own family office.” Darren and his business associate, Clint Scott manage the financial affairs of roughly 40 families, handling everything from investments and insurance to medical aid, wills, as well as facilitating the intergenerational transfer of wealth. Their goal is to simplify financial complexity while educating their clients at every step.

“We’re proudly independent,” Darren says, noting that their approach is always bespoke. “We don’t have a preferred provider. We use what’s best for the client – whether that’s Glacier, Allan Gray, Ninety One, or a mixture of things. It’s not about pushing product; it’s about doing what’s right.”

Education is a cornerstone of their approach. “When Covid hit and markets crashed, none of our clients withdrew funds. In fact, many gave us more money. They remembered what we taught them – buy the dip. Same with the Trump slump. We try to teach our clients not to panic.”

The industry’s ethical crossroads

While Darren sees a shift toward professionalism in the financial services space, he remains concerned about unethical practices, particularly among tied agents motivated more by sales than service. “I hate that part of the industry. I spent years in that world – where incentives like overseas trips drove behaviour. That’s not advice. That’s selling. We need more Certified Financial Planners (CFPs) and people committed to ethics.”

For Darren, compliance is a doubleedged sword. “It’s good that regulations are improving, but some of it is still backward looking. We need more forward-thinking planning frameworks and less box ticking.”

Looking ahead: Younger advisers and

clients He’s encouraged by the new generation of

Are you a financial adviser with a story to share? Email me on sandy.welch@newmedia.co.za and let’s talk.

financial advisers entering the industry. “When I did my CFP postgrad, I was impressed by the 20-somethings doing it straight after their BCom degrees. That’s a good sign.” His advice for them? Start in independent practices. “If you go into a tied environment, you risk picking up bad habits. Learn the right way – focus on advice, not product pushing.”

As for younger clients, Darren sees them engaging, albeit differently. “The children of our clients are already used to us. We’re talking to them early – before they inherit anything. They’ve grown up watching us work with their parents. That continuity matters.”

While Millennials and Gen Z bring unique interests, like crypto, he approaches it with balance. “I’m not a crypto evangelist, but I recognise the tech behind it. Blockchain is a very useful and fascinating technology that I believe in, but you don’t invest the deposit for your new your house into Bitcoin.”

Advice rooted in experience

Ultimately, Darren’s approach to wealth management is deeply personal. “This isn’t just a job for me. I’ve seen what happens when people don’t have the right cover.”

Darren’s story is a rare blend of professional insight and lived experience. His journey through illness has not just deepened his commitment to his clients – it has also redefined his purpose.

“It’s not about fear. It’s about being prepared. If I can help one person avoid going through what I went through – or at least face it with less stress – then I’ve done my job.”

The invisible work that is draining your practice

Recently, I spoke with someone who spent five hours on a public holiday updating their Risk Management and Compliance Programme. Sound familiar? This perfectly captures what financial advisers across South Africa, and globally, face daily: the invisible workload that quietly drains our energy and time.

You finish your last client meeting, but your real work begins. There's SARS e-filing to complete, FSCA regulatory reports to submit, technology glitches to fix, and a dozen other tasks that somehow need to happen before tomorrow.

What does invisible work look like?

The invisible workload appears in five main areas:

1. Operations and admin dominate most practices. Think about chasing missing FICA documents, onboarding new clients, and submitting reports to regulators. The FSCA imposed administrative penalties totalling over R900m in 2024, making compliance failures increasingly expensive.

2. HR and team dynamics create the second layer. When you hire someone, you suddenly need leave policies and performance reviews. Here's what I learned: hiring inexperienced people to save money often backfires. You spend more time training than the salary savings are worth. Instead, hire someone experienced who can contribute from day one.

3. Technology issues form the third category. When your practice management system crashes, everything stops. You also waste time because different systems don't talk to each other, forcing you to repeat tasks across multiple platforms.

4. Compliance and risk management create the fourth burden. Beyond completing compliance tasks, you need to stay updated

with changing regulations. Most advisers see compliance as a stick rather than a blueprint for building better businesses.

5. The mental load forms the fifth category. You're always thinking about your business. Your brain never switches off. Every decision feels crucial because you can't afford mistakes in a regulated environment.

Why we carry this burden alone

There is a myth that business owners should handle everything. Admitting struggle feels like admitting failure, especially when clients trust us with their financial futures.

We also treat overwork as a badge of honour. Working 16-hour days becomes proof of success rather than a warning sign of poor systems. Isolation makes everything worse. Even advisers within large financial services providers often feel alone, carrying burdens they think nobody else understands.

The real cost

Time is obvious, but energy drain cuts deeper. When you're constantly overwhelmed, you're not fully present with clients. This affects advice quality and client confidence. Research shows that clients receiving regular contact from advisers have higher confidence in their financial plans. Your business value also suffers. A practice dependent entirely on you can't scale effectively, limiting your exit options.

Practical solutions that work

• Start by acknowledging the problem. Track your non-advice work for a week. Write down every administrative task and compliance requirement. You'll likely be surprised by the volume. Next, understand what energises you versus what drains you. I discovered that admin work exhausts me, while strategic planning and content creation energises me. Now I try to batch admin tasks during

low-energy periods and to protect peak hours for energising activities.

By Francois du Toit CFP® PROpulsion

• Document everything that is in your head. Create processes that others can follow. Tasks that feel like they need your personal touch often just need clear documentation. We are systematically transferring everything into written processes, enabling others to handle work I used to.

• Use technology wisely. Modern CRM systems, automated scheduling platforms, and AI-powered planning tools eliminate hours of repetitive work. South African solutions like AdviceTech, Avalon, and atWORK (to mention just a few) offer tools designed for us.

• Leverage your existing support network. Your business coach, product providers, and technology suppliers have vested interests in your success. They often provide support services you're not fully using.

• Consider joining communities where you can share challenges with peers. Having others who understand your situation makes the load feel less isolating and often leads to practical solutions.

• Feeling overwhelmed doesn't make you lazy. You're simply doing too much invisible work. The solution isn't working harder but working smarter by recognising and reducing this burden.

Yes, the invisible workload is real, but it doesn't have to define your practice or your life. Stay curious!

How family offices are turning to private equity to safeguard wealth

By Sandy Welch Editor MoneyMarketing

Family offices are no longer a niche financial tool reserved for billionaires. In South Africa, they are on the rise and fast becoming a powerful player in the local investment landscape.

“It’s been a growing trend over the last 10 years,” says Mike Donaldson, CEO of RMB Corvest. “But we’ve seen a real acceleration in the last two or three years as wealthy families become more deliberate about managing their own capital.”

While many families previously relied on offshore advisers or traditional wealth platforms, the tide is shifting. “A lot of the returns from those offshore investments just haven’t delivered. So we’re seeing this return to basics –families bringing more of their capital home and taking more direct control of it,” he adds.

“Private equity gives them more control, better alignment, and often, stronger returns”

From strategy to partnership

Private equity (PE) has emerged as a preferred asset class for many family offices and not just because of its attractive return profile. “It’s not about trading on stock markets anymore. These families are looking at long-term value creation. Private equity gives them more control, better alignment, and often, stronger returns,” Donaldson explains. But it’s also an interesting dynamic. As he puts it: “Family offices are both our coinvestors and our competitors.”

RMB Corvest, a seasoned player in the South African private equity space, has found that family offices are increasingly entering the same deals, seeking out the same opportunities. But unlike the major banks – many of which have retreated from PE due to performance issues – family offices are agile, entrepreneurial and increasingly well-informed.

Still, there are limitations. “Deploying capital at scale in South Africa is not easy,” says Donaldson. “We have a team of 15 professionals, yet we only manage to deploy

just under a billion rand per year. Most family offices have two or three people. That capacity constraint is real.”

With over 53 assets in its current portfolio spanning South Africa, the UK, and parts of Africa, RMB Corvest has become a central player in identifying and executing deals that family offices often can’t access alone. “Given our scale we are likely to see more deal flow than a single family office,” explains Donaldson. “On average they would rely on us to either source or manage the chunkier, more complex opportunities.”

Why co-investing works

This is where the synergy lies. “Many family offices don’t have the time or in-house capacity to run lengthy due diligence processes or manage deal execution,” says Donaldson.

Co-investing with an established private equity team like RMB Corvest brings several advantages: access to proprietary deal flow, risk-sharing and heavy-lifting on structuring, compliance, and post-deal management. “It’s almost a plug-and-play approach for them,” he says. In return, RMB Corvest benefits from the deep sectoral knowledge that families often bring – typically from building businesses in industries like mining, retail or services. “Their experience is invaluable. It’s a win-win.”

Empowerment and inclusive growth

While family offices bring capital and longterm commitment, they often lack the B-BBEE credentials or empowerment capital structures needed to thrive in South African dealmaking. “About 70–80% of our deals involve some form of black empowerment funding,” says Donaldson. “That’s where our experience – built up over 36 years – really helps. We can bring the right empowerment partners into the deal, or even fund that portion ourselves.”

This is a significant value-add for traditional family offices, many of which are unable to meet the transformation criteria required in certain transactions. “We’ve worked with many empowerment vehicles, and we know how to structure those deals properly, having executed 103 BEE deals in the market over the years.”

Case study: Halewood South Africa Deal

The recent Halewood transaction offers a prime example of the private equityfamily office model at its best. RMB Corvest originated and led the deal, acting as principal equity provider. But due to the size of the transaction, they looked to bring in additional capital. Rather than bring another PE firm into the mix, with its own reporting and decision-making layers, they turned to family office partners.

“Family offices are nimbler,” says Donaldson. “We can have a couple of meetings with the principals and get decisions made quickly. They rely on our due diligence and structuring expertise, and we rely on their ability to move with speed and certainty.”

In this case, Masimong Beverages, the principals being Mike Teke and Chris Seabrooke.

When to enter and when to exit

For family offices looking to enter the private equity space, timing matters. According to Donaldson, the most attractive entry point is typically during the first deal, when the business is transitioning from founder-led to private-equity-backed.

“That’s where the greatest upside lies,” he explains. “The governance is fresh, the management team is being professionalised, and the asset hasn’t yet gone through multiple private equity hands. You’re getting in at a point where real value can still be created.”

But what happens when priorities shift? Donaldson offers a real-world example: “We co-invested in JoJo Tanks with an established and experienced SA family office. Eventually, they wanted to exit and move toward larger, international assets. We were happy to buy them out. It was seamless, and it gave them a clean exit.”

An emerging ecosystem

While the collaboration between private equity and family offices is still developing in South Africa, Donaldson is optimistic about the future. “It’s only really in the last five years that this has become a well-developed market,” he notes. “RMB has a division called FOGS –Family Office Group – dedicated to working with these clients. And I believe we’re just scratching the surface.”

One challenge, however, is access. “Family offices tend to be discreet. It’s not always easy to find them or approach them directly,” he says. But as the ecosystem matures, opportunities for collaboration – and competition – will continue to grow.

With a shared focus on value creation, impact, and long-term thinking, the relationship between family offices and private equity in South Africa is only just getting started. “Ultimately,” Donaldson concludes, “it’s about building a legacy. And doing it right.”

By Mark MacSymon CFP® Wealth Manager and Key Individual at Private Client Holdings

When self-driving isn’t enough: The case for co-stewardship in family wealth

At a certain point in the wealth journey, success is not only about performance – simplifying, coordinating, and the assurance that a family legacy will endure becomes increasingly important.

Many financially sophisticated families, particularly those with backgrounds in finance or asset management, prefer to self-direct their wealth. They value the control and agility. But even the most capable driver can’t anticipate every turn or ensure someone else is ready to take the wheel when they are no longer behind it.

What is co-stewardship?

Co-stewardship is a modern family office approach to wealth management that blends professional infrastructure with personal oversight. It’s not about giving up control, it’s about reinforcing it with structure, continuity, and trusted partnership.

This model recognises that managing wealth today is more than returns. It’s about governance, succession, family cohesion, and shared purpose. Evolving from a lone driver to having a trusted co-pilot – someone who understands the road ahead, even when it becomes uncertain.

As global portfolios, blended families, digital threats, and cross-border tax regimes complicate wealth management, costewardship offers a sound solution. It ensures that when you are no longer at the wheel, your family and its wealth can continue with clarity and confidence.

The blind spots of self-directed wealth

Self-directed wealth holders are often highly capable, but their strengths can obscure key

risks. As wealth grows, so does complexity, and the frameworks that served well during accumulation may falter during preservation and generational wealth transfer. A common blind spot is the absence of a consolidated view of total net worth. Without an integrated balance sheet, decisions around allocation, liquidity, and succession become reactive rather than strategic.

Liquidity management is another challenge. Wealthy individuals may become asset-rich but cash-constrained, especially when capital is tied up in real estate or private equity. Without early planning, liquidity gaps can trigger suboptimal asset sales or tax consequences.

Behavioural risks also loom large. Without a second set of eyes, self-drivers may fall into mental accounting or confirmation bias. Portfolios may lack cohesion, and decisions may not align with long-term family goals.

Perhaps the most critical blind spot is relational. Many wealth creators shield their families from financial complexity, unintentionally isolating themselves. They become the driver, mechanic, and navigator, leaving successors unprepared and uninformed. Governance is often overlooked. Without a family charter or governance model, decisions become personal rather than principled, and disputes are resolved emotionally, not structurally. Administrative fatigue compounds the issue, as managing legal entities and tax compliance becomes increasingly burdensome.

These challenges are not failures of intellect; they are the natural byproducts of high competence. But even the most accomplished investor cannot be their own trustee, succession planner, and family unifier forever. At some point, wealth stewardship becomes a team sport.

The family office approach: Co-stewardship in practice

According to The Williams Group, 70% of affluent families lose their wealth by the second generation, and 90% by the third. The cause is rarely poor investments – it’s a lack of planning, communication, and structured transition. Families with concentrated private equity or real estate holdings are especially vulnerable. Without formal advisory relationships, the sudden loss of a key decision-maker can leave families paralysed – and the cost of disorientation can be defining.

Mark MacSymon CFP®, a wealth manager who practices co-stewardship at Private Client Holdings, says, “We don’t arrive with answers, we arrive with questions that probe purpose, interdependence, and legacy. We act as a personal CFO, not to take over, but to provide continuity, strategic insight, and institutional memory. Our services include integrated reporting, governance design, legacy facilitation, asset planning, and quarterly reviews, all tailored to keep families anchored to their shared vision.” This is not traditional wealth management. It is wealth stewardship – jointly held and consciously shaped.

The quiet strength of co-stewardship

Time is finite. For those who’ve built significant wealth, the real luxury is clarity. Co-stewardship allows wealth holders to focus on what they do best, while a trusted family office reduces complexity, and protects the future.

As Andrew Carnegie wrote, the true challenge is not the accumulation of wealth, but its wise administration. Co-stewardship rises to that challenge, blending modern financial architecture with enduring purpose and a lasting legacy.

Private Client Holdings is taking the lead in South Africa when it comes to providing high net worth families with an all-inclusive wealth management solution.

The hidden risks of neglected trusts

Family offices often turn to trusts as a key part of their wealth management and succession planning strategy. Trusts help ensure that wealth is protected and distributed according to the family's wishes, even long after the original wealth creator has passed away. This is especially important for multi-generational family offices, where the goal is to sustain and grow the family's wealth over time.

Trusts offer several well-known advantages: they can shield assets from creditors, ensure financial stability for future generations, and maintain privacy over one’s estate. They may also serve as an effective tool for estate duty reduction. But they come with strings attached.

“Family trusts are often promoted as a silver bullet for wealth protection, but the reality is far more nuanced,” says Stacy Rouchos, Managing Director of Bannister Trust, an estate and succession planning advisory firm to Hobbs Sinclair. “A trust can absolutely safeguard generational wealth and provide asset protection but only if it’s properly set up, actively managed and regularly reviewed to adapt to changing financial and legal landscapes.”

If a family trust has not been reviewed in the past five years, it could well be dangerously out of date. “Too many South Africans are sitting on neglected, noncompliant family trusts that haven't been updated since the 1980s,” says Morne Janse van Rensburg, Managing Director at Hobbs Sinclair, which specialises in trust and company compliance, management and estate planning. “We regularly come across trusts where the original trustees have passed away, crucial documentation is missing, and tax returns haven’t been filed in years. It’s a ticking compliance timebomb.”

Trusts need maintenance

Family trusts are governed by the Trust Property Control Act, and oversight is handled by the Master of the High Court. In recent years, the Master – along with SARS – have adopted a much firmer stance on compliance. Failing to meet basic administrative requirements can result in costly fines, delays in transactions, and even restrictions on the trust’s legal operation. Without proper upkeep, a once reliable financial structure can quickly turn into a liability rather than an asset.

“Today, when establishing a new family trust, it's a legal requirement to appoint an independent trustee who is not a beneficiary or closely related to one,” explains van Rensburg. “This rule aims to bring more objectivity and transparency in trust management. However, many older trusts still run informally, often leading to significant compliance issues.”

Trusts under scrutiny

One of the most misunderstood aspects of trust ownership is the required separation of control. According to the Trust Property Control Act, once assets are transferred to a trust, the donor must genuinely relinquish control to ensure compliance.

“SARS is cracking down on sham trusts –those where founders try to keep one hand on the wheel,” says Rouchos. “If there’s no clear separation between the founder and the assets, the trust could be disregarded for tax purposes, and income could be taxed in the founder’s hands. That’s a costly mistake.”

Contrary to popular belief, family trusts are not inherently tax-efficient under current South African tax law. Income retained in a trust is taxed at a steep 45%, and capital gains at an effective rate of 36%. Unlike individuals, trusts do not qualify for personal tax rebates or exemptions, making careful planning essential.

“Outdated assumptions from the 1990s still influence many decisions today,” Rouchos notes. “Trusts can offer tax planning advantages, but only when structured carefully with the right professional advice.”

Annual trust checklist

A trustee, or a beneficiary of a family trust, should perform this checklist:

• When was the trust deed last reviewed? Is it still aligned with current legal and financial requirements?

• Who are the current trustees? Are they still alive, capable and actively managing the trust?

• Does the trust need to be registered with SARS and are annual tax returns being submitted on time?

• What assets does the trust own? Are they correctly recorded, up to date and properly maintained?

• Is the trust generating any income? If so, is that income being declared and properly accounted for?

• Are the listed beneficiaries still relevant, or have circumstances changed (e.g. deaths, births, divorces)?

The catch-up is costly

Restoring a neglected trust to full compliance is not quick or cheap. Hobbs Sinclair has seen trusts needing full forensic reconstructions – with missing trustee resolutions, unsigned financial statements, and decades of unfiled tax returns. “It’s far better to maintain a trust proactively than to be forced into emergency mode when there’s an urgent transaction or a death in the family,” says van Rensburg.

Dissolving a trust

“Dissolving a trust is far from straightforward – it can be legally and administratively burdensome,” Rouchos cautions. “Too often, we meet clients who didn’t fully understand the long-term commitments involved. Once a trust is established, unwinding it can be costly and time-consuming.”

South Africans need to approach their trusts with the same level of responsibility they give their personal finances, stresses van Rensburg. “It may be a family trust, but it’s not a family hobby – it demands proper management and oversight.”

By Zaid Paruk Founder and Chief Investment Officer of Wealthvest Investment Management

TThe modern family office: Building legacy in a new age of wealth

he story of wealth, when stripped down to its essence, is never just about money. It’s about continuity. Identity. Values. It’s about what survives when the founder is gone. And this is where the modern family office steps in – not as a vault, but as a vessel.

For generations, the idea of a family office was simple: preserve the capital, manage the trusts, pay the taxes. But today, it has become something far more ambitious. The family office of the 21st century is no longer just a backend operation – it’s the frontline of legacy building.

Wealth today moves faster, and families are more global, more complex, diversified, and more interconnected. With that comes a shift in mindset. Families aren’t just looking to preserve wealth; they want to multiply it. They want it to reflect their values. They want it to empower the next generation, not burden them.

And yet, despite this evolution, the real risk isn’t financial mismanagement. It’s entropy. Families drift apart. Visions blur. Conversations become too difficult to have until it’s too late. The irony? Most wealth plans fall apart not because of bad investing, but because the human side of wealth was never planned for.

At the heart of any enduring legacy is a story. A sense of ‘why’. The best family offices begin by anchoring that story – defining what the family believes, how it makes decisions, and what it stands for. This clarity, more than any spreadsheet or structure, is what gives a family cohesion across generations.

When it comes to investment, family offices have a unique advantage: patience. They aren’t tied to short-term noise and optics. That gives them room to pursue opportunistic deals –off-market investments, listed equities, private equity, direct real estate – where institutions often can’t move fast enough or flexibly enough. Many of the most successful families build ‘deal flow cultures,’ surrounding themselves with networks that generate opportunities, often through trust and long-term reputation rather than transactional relationships.

But where wealth planning often stumbles is inheritance. It’s easy to map assets on a chart. It’s much harder to map emotions. Inheritance tends to expose old wounds – perceived inequalities, forgotten promises, unclear expectations. Families who don’t talk about this early often find themselves in conflict when it matters most. And when families fight, the office is no longer a sanctuary – it becomes the battleground.

Planning for succession isn’t just a legal exercise; it’s emotional architecture. Who will lead? Who will own? And – maybe most importantly – who will feel heard? Family offices that manage inheritance spend time building governance frameworks that include rather than exclude. They create space for dialogue. They don’t assume the next generation will be ready – they prepare them.

This preparation goes beyond financial literacy. It’s about helping future stewards understand the responsibilities that come with wealth. Not just how to manage a portfolio, but how to make decisions. How to handle ambiguity. How to balance privilege with purpose. Education here is not a curriculum – it’s a way of life. Some families establish internal learning programmes; others give the next generation a stake in real investments, often within guardrails. What matters most is engagement. Because heirs who don’t feel connected to the family’s purpose often end up reacting to wealth rather than stewarding it.

“Despite this evolution, the real risk isn’t financial mismanagement. It’s entropy”

What truly makes a family office effective is its team – not just their technical expertise, but their cultural intuition and emotional intelligence. The most successful family offices are built around a steady, sustainable energy –not the kind that burns out quickly, but the kind that endures through challenges and changes. Their teams come from diverse backgrounds –private equity, wealth management, law, and entrepreneurship, but what they all share is a deep understanding of the personal nature of this work. They know when to step up and lead, and when to step back and listen. Above all, they are trusted advisors who become an extension of the family itself.

Trust is, of course, the currency of good governance. When roles are clear, when decisions follow defined processes, and when communication is regular, the family office becomes a stabilising force. Good governance doesn’t mean red tape – it means rhythm. Families that meet regularly in structured, facilitated formats avoid decision-making by default. They can anticipate issues before they

become problems. They move from reacting to guiding.

The influence of an operating company, especially when it’s the original source of wealth, can linger for decades. Many families continue to hold or acquire operating businesses, not just for returns, but to keep a sense of purpose alive. These businesses become training grounds for the next generation, or vehicles for impact.

In more tangible terms, real estate often becomes the lightning rod in wealth transition. A cherished property is rarely just an asset. It’s where memories were made, holidays were spent, and identities were formed. But when it comes time to pass it on, complexity arises. Who maintains it? Who gets to use it? Is it to be sold or kept? Many family offices have had to navigate the emotional fallout of unclear property plans. The solution is rarely found in legal documents alone but in conversations, shared visions and, sometimes, creative ownership structures.

The scope of the family office has broadened significantly in recent years. Today’s family offices serve as comprehensive hubs that address virtually every aspect of a family’s financial and personal needs. This expansion includes everything from philanthropic and charitable strategy to lifestyle management. Family offices now oversee complex cross-border issues, legal affairs, risk management, and even impact investing. The family office has become a true one-stop shop. This holistic approach allows families to preserve not just wealth, but wellbeing, time and peace of mind.

In the end, the most successful family offices don’t just manage wealth, they animate it. They act as stewards of meaning, not just money. They evolve with the family, adapt to new realities, and anticipate the needs of those not yet born.

Because legacy isn’t what you leave behind. It’s what you build, together, every day – story by story, decision by decision.

At Wealthvest Investment Management, as a family run firm, we understand and work closely with families daily, with investment management at our core. Our work goes far beyond portfolios and performance. We engage with the full picture, family dynamics, legacy goals, and the evolving role of wealth in people’s lives. If you’re thinking about the future of your family’s wealth, the conversation starts long before the next generation takes over. And we’re here to help guide it.

Why financial advisers should get involved in medical aid decisions

By Sandy Welch Editor MoneyMarketing

Medical aid is a significant monthly expense and a critical part of managing healthcare risk. Yet many clients may be on unsuitable or overpriced plans out of confusion or inertia. Advisers can add real value by helping clients with:

• Comparing benefits, premiums and exclusions across schemes or plans.

• Navigating waiting periods and late-joiner penalties to avoid unexpected cover gaps.

• Aligning medical aid with broader financial goals, including retirement or managing chronic illness.

• Ensuring continuity of cover when switching schemes mid-year or during life events (e.g. retrenchment, divorce).

As Medihelp says, clients don’t just want cover, they want alignment. Medical aids aren’t only about healthcare funding. They represent peace of mind, alignment of values, and dependable support for life’s unexpected turns. By helping your clients choose a scheme and plan that reflects who they are, you build stronger relationships and deliver real, lasting value.

How easy is it to switch?

Switching medical aids in South Africa is fairly straightforward, but clients need to understand the timing and rules:

• You can switch at any time, provided you meet your current scheme’s cancellation notice (usually 30 days, but sometimes up to three months).

• Waiting periods apply. If a client has been on their current scheme for more than 24 months with no break, they’ll face a threemonth general waiting period (only PMBs covered). If they’ve been a member for less than 24 months or had a break of more than 90 days, a 12-month condition-specific waiting period may also apply.

• Late-joiner penalties can apply if someone is over 35 and had a gap in medical aid membership, potentially increasing premiums by 5–75%.

• Benefit proration: Switching mid-year may result in reduced annual benefit limits (eg: cancer cover).

• Plan-switching within the same scheme is generally restricted to the annual openenrolment window (Oct–Dec), unless triggered by major life events or chronic conditions.

The high cost of waiting

Waiting too long to join a medical scheme can be a costly mistake, especially later in life

when premiums may be significantly increased through late-joiner penalties. Advisers should flag this risk to clients, particularly those with young-adult children.

Michael Emery, Marketing Executive at Ambledown Financial Services, says South Africans should ideally join a scheme as soon as they begin working and before the age of 35. “Many young people opt out because they’re healthy or can’t afford it, but that decision can become very expensive down the line,” he explains.

Medical scheme late joiner fees and waiting periods exist to prevent misuse of the system and protect long-standing members. “Schemes calculate the penalty based on the individual’s age at joining and the number of years they’ve not belonged to a scheme. This can add as much as 75% to the monthly premium,” says Emery.

Filling the gaps

When reviewing or switching cover, clients should also consider gap cover. This product helps pay for in-hospital or defined outpatient costs that exceed what medical schemes will cover. It's only available to medical scheme members and provides critical financial protection during major medical events.

“Waiting too long to join a medical scheme can be a costly mistake”

Switching to healthcare insurance

For many lower-income earners, medical aid remains out of financial reach. While initiatives like the Low-Cost Benefit Option (LCBO) and National Health Insurance (NHI) have been proposed, their rollout has been slow. In the meantime, products under the Demarcation Exemption Framework have helped fill the gap. This framework, recently extended to March 2027, allows certain health insurance products to operate outside the Medical Schemes Act. To make informed decisions, clients need to see the unique benefits of different healthcare products. Shaun Raizenberg of Essential Employee Benefits explains: 'Think of medical aid as all-encompassing protection, regulated by the Council for Medical Schemes to cover everything from chronic illness to day-to-day expenses. Health insurance offers a more tailored approach. While it typically covers specific events like hospital stays, it can also be structured to provide essential primary, chronic, and acute care, ensuring members have access to vital medical services when they need them.”

Raizenberg advises that clients: Check the terms and conditions: What’s covered and what isn’t?

• Assess their needs: Will the new policy meet them?

• Compare products: Shop around for the best fit.

Understand that both products serve essential but distinct roles within the healthcare ecosystem and are regulated by different authorities. Health Insurance is regulated not just by the Financial Services Conduct Authority, but also by multiple Insurance Acts.

The potential pitfalls

Unlike medical aid, health insurance does not cover Prescribed Minimum Benefits (PMBs). Insurance payouts may also fall short of actual treatment costs, and waiting periods may apply. While health insurance offers no tax deductions, lower monthly premiums can make it more affordable for some. It can also work alongside medical aid to provide extra cover for items the scheme doesn’t pay for. Whether a client is switching between medical aids, exploring gap cover, or considering a move to healthcare insurance, your guidance is crucial. By helping them understand their options, potential costs, and protections, you not only safeguard their health outcome, you also strengthen your relationship with them for the long term.

A new medical aid built on the values that matter

By Jeremy Yatt Fedhealth Principal Officer

What if we could rethink how medical aid works in South Africa?

Not just a tweak here or there, but meaningful changes that reflect how modern South Africans live and what they truly need from a medical aid scheme.

That’s exactly what Fedhealth Medical Scheme and Sanlam are setting out to do with the launch of a bold new scheme. Following Sanlam’s endorsement of Fedhealth as its open medical scheme of choice, the new scheme isn't just a new medical aid product, but rather a new philosophy: a medical aid scheme that truly meets the needs of South Africans.

Asking the difficult questions

First, Fedhealth and Sanlam asked the big questions to avoid building just another medical scheme. Questions like: Why is medical aid so

rigid? So confusing? So expensive? And why does it feel like it was never made for people like… you and me? As of 2023, only 15.7% of South Africans belonged to a medical aid scheme, which translates to only around 9.8 million people out of a population of over 63 million. So, there’s definitely room for improvement.

Exploring the biggest pain points led to the creation of something new entirely. A different kind of scheme – with a blueprint of real values at its core to serve as guidelines, not just vague promises.

Here are the values the new scheme is built on:

• Affordability – so you only pay for what actually matters to you. By tailoring a plan specifically to your circumstances, you will be able to pay only for the benefits you truly need.

• Customisation – so your plan fits your life, not the other way around. This means the cover you need at a fair price, rather than paying for extras you don't use.

• Inclusivity – because medical aid should work for more people, more of the time.

• Simplicity – because you deserve to know exactly what you’re getting. No more decoding benefits or unexpected surprises.

INVESTMENT THINK TANK

Now in is fourth year, the Investment Think Tank is an educational event offered by The Collaborative Exchange - SA’s leading research, strategic advisory and event management business. The event is a combination of investment thought leadership and ‘masterclass’ principles with the agenda offering numerous presentations and moderated panel discussions.

This event is designed to challenge convention, spark fresh thinking, and equip financial advisors with the insights needed to navigate a rapidly evolving investment landscape.

Focused on bringing a diverse array of leading investment professionals to South Africa’s outlying regions, this event provides a rare opportunity for

financial advisors to engage directly with the minds shaping the marketsfrom asset allocation strategists to portfolio managers and investment leaders.

This year’s theme, Uncharted Territory: Surfing the Waves of Market Turbulence, speaks to the uncertainty defining today’s geopolitical, economic and investment environment. As volatility becomes more frequent and the old rules grow less reliable, the need for adaptive, informed decisionmaking has never been greater.

Whether its global dislocation, local opportunity, or the psychology of investor behaviour, the Investment Think Tank helps financial advisors

• Trust – so when you need support most, you know your scheme will be there. A commitment to ensuring members know what to expect in terms of their cover.

This isn’t medical aid as you know it. It’s medical aid built for the world we actually live in. Built on these values, Fedhealth and Sanlam will launch this bold new scheme in October that will turn the concept of medical aid on its head. The new scheme will be available to join from 1 January 2026.

Change is coming, South Africa

The partnership between Fedhealth, a trusted name since 1936, and Sanlam, one of South Africa's most established financial institutions, creates a synergy of strengths when it comes to medical cover and insurance. With its five core values, the new medical scheme is set to be a true evolution in the world of medical aid, with an offering that's transparent, trustworthy, affordable and straightforward.

So get ready, South Africa. The change you wanted is coming. Follow the journey at medicalaidreboot.co.za

“The Investment Think Tank helps financial advisors make sense of what’s moving the markets”

make sense of what’s moving the markets - and how to move with it.

The event is held in numerous cities throughout South Africa in August 2025, including Durban, Pretoria, Bloemfontein, Potchefstroom, Mbombela and Ggeberha.

For more details about the event, go to: www.investmentthinktank.co.za

How to guide clients through a valuesbased medical aid switch in 2025

As a financial adviser, you’re already familiar with the technicalities of switching medical aids or medical aid plans – from waiting periods and underwriting to contribution structures and benefits. But in 2025, as consumers seek more personal relevance from their cover, there’s a powerful new lens through which to guide these decisions: personal values.

Medical aid is not a one-size-fits-all product. It’s a long-term financial and emotional commitment that affects your clients’ health, wellbeing, and peace of mind. That’s why values-based advice that aligns medical aid recommendations with what truly matters to the individual sets you apart as a trusted, human-centred adviser.

Why people switch in 2025, and what they need

Clients may switch medical schemes or plans for many reasons: affordability, better benefits, poor service, or changes in life stage or health needs. But beneath these practical considerations lies a deeper desire – to feel seen, understood, and supported by a medical aid provider that shares their values.

This is where your guidance makes a real difference. While switching between schemes involves formalities like underwriting and waiting periods, switching between plans within the same scheme is typically more flexible. Either way, both scenarios are opportunities to connect your clients to cover that matches not just their budget but also their beliefs.

Compare apples with apples – not strawberries or blueberries

When choosing a medical aid, clients are often faced with a fruit bowl of options that look deceptively similar. Same glossy packaging. Similar promises. Comparable prices. But let’s not confuse them; an apple isn’t a strawberry, a blueberry, or a nectarine.

Medical aids may appear to offer the same juicy benefits on the surface, like a neatly packed box of nectarines shouting, “Fitness perks inside!” or a shiny apple sticker boasting crisp rewards. But what truly matters is beneath the surface. Substance over shine. It’s easy to be drawn to the most colourful arrangement loaded with rewards programmes, smoothie discounts, and stepcount challenges. Yet these sweet deals often come with seeds: hidden costs, lock-ins, or lifestyle restrictions.

• As an adviser, ask yourself this: Should a medical aid really be telling members how to stay fit, where to shop, or what wellness should look like for them?

This is where values-based advice really

matters. Clients are increasingly asking: Does this medical scheme reflect what I believe in?

Does it support my freedom, integrity, and wellbeing, or is it just another piece of fruit dressed up to look like something it’s not?

Medical aid shouldn’t dictate your clients’ lifestyle choices. It should support their values and priorities. So, help them look past the packaging and choose cover that reflects who they are and isn’t just the fruit of the season.

Values: the new competitive edge

Both global research and Medihelp’s own experience show that consumers are more likely to support organisations whose actions reflect their personal values, such as integrity, compassion, innovation and community. This is more than a trend; it’s a shift in how people approach their health and finances.

Values are fundamental, non-negotiable principles that guide people’s behaviour and decision-making. They’re what people use to evaluate choices, including financial products like medical aid. And increasingly, clients are asking: Do my service providers share my values?

“Values like excellence, compassion, collaboration, and transparency shape every aspect of our operations – both internally and externally,” says Lien Potgieter, Head of Marketing at Medihelp. “Our plans are built not just around healthcare needs, but around human uniqueness.”

Valuegraphics: a powerful resource

For years, advisers have relied on demographics and psychographics to understand clients. But these tools often fall short in long-term financial planning. That’s where valuegraphics, a method pioneered by David Allison, a human values expert, offers something more: insight into the deeper motivational drivers behind client behaviour.

Allison’s global data reveals that values such as family, community, belonging, and financial security are consistent across many groups

But cultural nuances, like the importance of spirituality and patience in African markets, are essential for truly personalised advice.

To uncover what drives your clients' choices, ask three simple questions:

Why do you go to work every day?

What would you do if you won the lottery tomorrow?

• What advice would you give your younger self, and why?

Their answers often uncover their values, which should shape your advice and guide you to the plan that best reflects their priorities.

Help clients align cover and value

When guiding clients through a medical aid plan or provider switch in 2025, values offer a meaningful framework that goes beyond financial comparisons. Here’s how you can integrate values into your advice process to create long-term, client-centred solutions:

1. Start with what matters most

Ask open-ended questions that reveal what drives your client, whether it’s family, financial stability, independence, creativity, or health. Use their answers to shape a solution that meets practical needs and supports personal purpose.

2. Look beyond the spreadsheet

Don’t let price dominate the conversation. While monthly contributions and benefits matter, they’re only one part of the equation. Clients are more likely to stay with a medical scheme that aligns with their values – such as integrity, innovation, compassion, or community involvement – than one that simply offers a lower contribution.

3. Personalise the match

When making recommendations, connect plan benefits to your client’s values. For example: “Because financial stability and family are priorities for you, this plan offers generous cover for both hospitalisation and dependants without unpredictable costs.” This builds trust and empowers informed, confident decisions.

4. Frame value as long-term value

Cheaper isn’t always better. Bells and whistles may seem attractive upfront, but they often come with trade-offs. Instead, frame value as peace of mind, trusted service, and reliable protection – especially in emergencies.

Final thought: Clients don’t just want cover, they want alignment

Looking for medical aid options that support your clients’ values and health goals? Visit www.medihelp.co.za to explore solutions.

Teaching teens about saving

For South Africa to really establish a savings culture, it’s essential that financial literacy starts with the younger generation. With July being National Savings Month, it’s the perfect opportunity to encourage your clients to get actively involved with teaching their children the importance of money and making these lessons relevant to their daily lives. Chris Coetzee, CEO of FinFix, gives some tips on how to do this.

Financial habits are formed early in life, he says. Children begin developing money habits as young as seven years old. By introducing basic financial concepts during childhood, we can lay the foundation for responsible money management in adulthood.

“For instance, a teen who learns to save a portion of their pocket money or part-time job earnings is more likely to carry that discipline into adulthood. On the other hand, a teen who grows up without understanding the value of money may find themselves in a cycle of debt, impulsive spending, and financial stress.

“If a teen wants a new pair of sneakers, help them create a savings plan rather than buying them on credit or giving them instant gratification. This not only teaches patience but also shows the value of hard work.”

Coetzee says it’s important to use real-life examples they can relate to, like the cost of mobile data or a concert ticket, to help them understand financial trade-offs. You can also involve teens in family financial activities. Let them help plan a grocery shop on a budget or compare prices – this teaches financial decision-making and fosters responsibility.

Most importantly, encourage teens to open savings accounts. Most South African banks offer youth accounts with low fees and parental oversight. These accounts provide a safe environment for young people to practice managing their own money.

And since teens are digital natives, use technology to your advantage. Leverage mobile apps and online platforms that gamify budgeting and financial planning. There are

several tools designed to make learning about money fun, interactive, and accessible.

Be intentional

Coetzee explains how in many South African households, money remains a taboo subject. Parents often shy away from financial conversations, either to protect their children or because they feel uncertain about their own financial knowledge.

“But silence only breeds confusion. Open, honest discussions about money are essential. Share your own experiences, both good and bad, and encourage questions,” he says. “Creating a safe space for money conversations builds trust and learning.”

Financially literate individuals are more likely to avoid debt and build long-term wealth. For a country grappling with inequality, financial education is a powerful driver of progress. It empowers young people to make informed decisions, avoid exploitation, and contribute meaningfully to their communities, Coetzee concludes.

Young South Africans are determined to build wealth

1Life Insurance’s second edition of its Generational Debt Survey offers a deeper understanding of the financial attitudes, behaviours and aspirations of South Africa’s youth. The findings reveal a generation increasingly aware of their financial inheritance and committed to changing the narrative for those who come after them.

This year’s survey underscores a vital shift in mindset: while an overwhelming 89% of respondents believe that building wealth and saving is extremely important, only 6% currently hold retirement annuities, and many remain burdened by both personal and inherited debt.

“Young South Africans are becoming more intentional and informed about their financial futures,” says Hayley Parry, Money Coach and Facilitator at 1Life’s Truth About Money. “They’re not only aware of the weight of generational debt but are actively working to build wealth that changes the future of their families. It’s a commendable shift that needs to be nurtured.”

Key insights from the 2025 survey include:

• The debt stops here

A bold 44% of respondents said they were not left with any generational debt and are determined not to pass any on.

• But the threat of inherited debt still looms 22% worry that the debt they’ve taken on during their lives may still be passed down, particularly as economic challenges and costof-living pressures mount.

• Generational wealth matters – but remains out of reach for many

While 89% of young South Africans believe

building wealth is critically important, many are held back by inherited debt, stagnant incomes and rising financial responsibilities.

• Assets, insurance and property top the list of wealth goals

Respondents most strongly associate generational wealth with owning physical assets (24%), insurance products (20%) and property (17%), a clear indication that tangible legacy-building is front of mind.

• Retirement planning is neglected

Alarmingly, only 6% of young South Africans have a retirement annuity, revealing a critical gap in long-term financial planning and wealth preservation.

• Income is stretched thin across survival and support

Income is primarily used to support family (24%), pay for basic living costs (20%), or saved (16%). Significant portions also go to essentials like school fees, with little left for wealth creation or investment.

• Dependants limit upward mobility

37% support one or two dependants, and 23% support more than two – highlighting the financial strain placed on young earners as they balance caregiving with career and personal goals.

• Student debt continues to stall progress

Of those with tertiary education, 25% are still paying off student loans. Among current undergraduates, 27% are relying on student loan funding (excluding NSFAS), creating a

long financial runway before wealth-building can begin.

• Financial literacy is improving Young South Africans are actively seeking knowledge through social media, schools, books and podcasts. However, despite strong interest, many lack consistent access to quality financial education.

• Budgets are the foundation but not foolproof While most respondents say they rely on budgets to stay on track, inconsistent income and unexpected costs mean that even the most well-intentioned plans often fall short.

• Credit knowledge is rising, but action lags

Most understand the difference between a good and bad credit score, yet many admit to having only average credit profiles. The desire to do better is there, but challenges remain.

• Unemployment and limited resources are top barriers to progress

36% say they’re unable to break the cycle of generational debt due to unemployment. A further 20% cite constrained resources, and 13% say they need to improve their financial planning.

Crucially, nearly half of the respondents (44%) stated they feel personally responsible for ending generational debt, motivated by the support they have previously received.

At a time when unemployment and student loan debt continue to threaten economic mobility, the Generational Debt Survey reveals the resilience, resourcefulness and readiness of young South Africans.

South African youth and the urgency of saving

Standard Bank’s in-depth analysis of over 402 000 salary earners paints a concerning picture: nearly half of wage earners arrive at payday with R1 000 or less in their bank accounts, while more than onequarter carry negative balances or rely on overdrafts. Only 50% go into paydays with more than R1 000. This pattern is most pronounced among young, middle-income earners, but alarmingly, even private banking clients are affected: one in ten find themselves in the red before month’s end.

Lifestyle and overdraft culture

Kabelo Makeke, Head of Personal & Private Banking at Standard Bank, suggests this mirrors deeper issues in household finance.

“Balancing income with lifestyle is becoming increasingly difficult,” Makeke points out. He says easy access to overdrafts can hide financial strain, while juggling multiple bank accounts can skew perceptions of overall wealth. “Customers hold accounts with multiple banks, which can lead to misinterpretations of their financial health,” he says. This transient financial confidence often blindsides individuals until expenses catch up.

The expense trap

Another leading factor is lifestyle inflation. Paradoxically, while salaries increase, so do spending habits, sometimes outpacing earnings. Makeke emphasises that this cycle isn't limited to low-income earners; it's pervasive across income brackets. “As incomes rise, it’s easy to fall into the trap of spending more, which can create a cycle of debt.” Higher earnings often lead to more financial commitments such as loans, leases and entertainment, but without proportional increase in savings buffers.

Understanding financial habits

Standard Bank’s recent Youth Barometer paints youth financial behaviour in vivid detail: approximately 60% of every R100 earned is allocated to essentials – rent, groceries, transport and digital connectivity. From there, remaining funds often go toward takeouts, fashion, and entertainment, priorities that offer emotional rewards amid busy young-adult lives. Doret Jooste, Head of Money Management & Advisory at Standard Bank, highlights this dynamic: “Young people are making bold financial decisions, whether investing in memorable experiences or prioritising personal style,” she

says. “But when savings are deprioritised, it delays building long-term stability and increases vulnerability to credit.”

Why savings matter

Savings aren’t frivolous, they’re essential. In a rising cost-of-living environment, they act as a buffer against everyday shocks. Shaka Zwane, Head of Insurance & Fiduciary at Standard Bank SA, explains that savings also prevent people from cancelling insurance. “Savings may not have the emotional pull of funeral cover or life insurance, but they are the bridge between crisis and control. Without savings, even a minor financial shock can derail months of progress.”

Using financial tools

“When savings are deprioritised, it delays building long-term stability”

Standard Bank and Liberty’s data highlight the growing popularity of accessible savings instruments among youth. Tax-Free Savings Accounts (TFSAs), such as Liberty’s Stash, are held by 66% of under-35s. Uptake of investment products and insurance also indicates a growing awareness of wealth-building, not just consumption.

Targeted saving strategies from the Standard Bank Youth Barometer

18–24s: Kickstart saving

This group typically prioritises entertainment, fashion, and takeouts. Redirecting just R50–R100 per month into a savings account, particularly via digital tools, can build a savings habit without significantly altering lifestyle.

25–29s: Automate and shift habits

As responsibilities grow to include loans and insurance premiums, this group can make saving automatic. “Set up automatic transfers to a savings account right after payday,” says advisers. Even modest, consistent contributions can form a firm financial foundation.

30–35s: Build momentum

With improved earnings and reduced reliance on entertainment budgets, this group is ideally positioned to scale their savings, whether for property, family needs, or emergencies. Growth stays feasible, even with small monthly contributions, given compounding and inflation.

The role of financial advisers

Advisers play a crucial role in translating youthful aspiration into disciplined planning:

• Create small milestones: Suggest microsavings goals, every R100 per month adds up

• Separate essentials vs wants: Encourage tracked budgeting to reveal disposable income

• Promote digital tools: Leverage apps and auto-save features to build discipline

• Incentivise gradually: Encourage incentive-based savings tools (like TFSAs) that offer structure and reward

• Merge short- and long-term thinking: Normalise the idea of saving for both happiness and security.

Encouraging long-term mindsets

Youth, especially females, are already taking initiative. Many under-35s own multiple funeral policies and risk/life insurance, often covering extended family. This movement signals a deepening financial consciousness and readiness to ‘adult’ financially.

Turning insight into action

South Africa’s youth aren’t careless; they’re balancing the joys of young adulthood with financial survival. Yet in areas like savings, they need structural support and guidance. Advisers should channel this momentum: encourage habit formation, normalise saving, and leverage financial tools for automation. When planning includes not just tomorrow’s groceries but also tomorrow’s opportunities, youth can craft futures that balance joy, security, and growth.

Navigating a shifting investment landscape

As investors adapt to an increasingly complex global environment, the way we build portfolios needs to change. Demographics are shifting, technology is accelerating, markets are becoming more efficient, and geopolitical uncertainty is redrawing the map for capital flows and trade. In this environment, balance is not just a desirable trait – it’s a necessity.

Navigate International by Glacier Invest was created in close collaboration with Glacier International and aims to help South Africans access global markets while still managing risk in hard currency. It’s been a highly successful proposition, but success comes with greater complexity. Today’s global investment landscape is more nuanced than ever before.

The world is ageing – and so are investors

One of the most dramatic shifts impacting long-term investing is the global demographic transition. By 2050, the global population aged 65 and over will outpace the 15–24 age group for the first time in history. People are living longer, and that forces us as investment managers to think differently about how we protect and grow wealth over extended retirement horizons.

Add to this an evolving geopolitical landscape, with rising protectionism and shifting trade alliances. The era of globalisation is giving way to regionalisation, leading to fragmented supply chains and more cautious foreign direct investment. From Trump-era policies to Brexit and tensions in Eastern Europe, uncertainty has become a structural component of investing.

Technology, information and market efficiency

The explosion of technology is also redefining how markets operate. Artificial intelligence, real-time data access, and the rise of algorithmic trading have increased the speed at which information is absorbed into prices, leaving little room for traditional active management to find inefficiencies. In the 1940s, global knowledge doubled every 25 years. Today, it’s estimated to double every 12 hours. That has serious implications for active fund managers.

The Active vs Passive debate

Investor behaviour reflects these shifts. Passive investing continues to gain traction, with fund flows moving away from traditional active strategies. But challenges persist even for those following conventional allocation models. The classic 60/40 portfolio – long seen as a safe bet – has come under pressure. Correlations between equities and bonds are now at their highest levels historically, which reduces the diversification benefit investors have traditionally relied on.

Market concentration is another concern. Today, the top 10 stocks make up approximately 33% of the S&P 500. Such concentration introduces systemic risk into portfolios.

Reimagining portfolios with precision and balance

In light of these trends, Glacier Invest is reevaluating how it builds portfolios. It’s about more than just the numbers. It’s about creating harmony and proportion. This balance is

“It’s about more than just the numbers. It’s about creating harmony and balance”

central to Invest’s portfolio construction philosophy. By diversifying across asset classes, regions, currencies and styles, while remaining grounded in data and forward-looking insights, they aim to manage downside risk while remaining positioned for opportunity.

By Luke McMahon Senior Portfolio Manager at Glacier Invest

The investment world is not what it was 20, 10 or even five years ago. From longer lifespans and geopolitical tensions to ESG mandates and technological disruption, today’s investor must navigate unprecedented complexity. In this environment, balance – between risk and reward, growth and protection, local and global – is more than a strategy. It's a principle.

Seeing the bigger picture

As Solution Architects, we believe in creating investment strategies that respond not just to market cycles, but to the real, evolving needs of our clients. It’s about connecting the unique circumstances of investors to the right blend of global asset classes, and then managing those allocations with precision.

At the heart of Glacier Invest’s process lies a data-driven analysis of how asset classes interact, using co-variance studies to understand correlations and diversification benefits. We look deeply at global asset flows and how they behave under stress. One of the standout asset classes is global-listed infrastructure.

Infrastructure investments, which include sectors like communications, midstream energy, utilities and logistics, are especially appealing because of their predictable, inflation-linked cashflows and high barriers to entry. They’re built to serve public needs, which means these are real-economy assets with lasting relevance.

A recent World Economic Forum study highlighted a significant global funding gap in infrastructure – a gap increasingly being filled by public and private capital. From India and China to Europe and the UAE, governments are stepping in with fiscal support, creating a robust tailwind for the asset class.

Historically, global listed infrastructure has outperformed broader equity markets during downturns, offering 8.1% excess return on average since the Global Financial Crisis. And at current valuations, the opportunity appears even more compelling. Right now, global listed infrastructure is trading at an 18% discount, with strong future earnings potential.

Continued on next page

EMPLOYEE BENEFITS

With Old Mutual’s integrated Employee Benefits solutions you get one streamlined, end-to-end offering across retirement, risk, health, wellbeing, consulting and investments. Which adds up to smarter planning, stronger governance and fewer admin headaches for you; and holistic solutions and support that improve financial health, wellness, and long-term outcomes for your employees.

One trusted provider. One integrated strategy. One less thing to worry about.

Building better portfolios from the ground up Glacier Invest’s philosophy extends from asset class selection to manager research, tapping into a global universe of over 300 000 funds. This process is carefully curated and spans from cautious to aggressive multi-asset portfolios, as well as specialised building blocks in equities, fixed income and property.

Recent enhancements include onboarding managers like T Rowe Price and JP Morgan in developed market equities, and expanding exposure to infrastructure and global high-yield bonds.

But what sets Glacier Invest, the largest discretionary fund manager (DFM) in South Africa, apart is not just the diversity of its underlying funds; it's how those funds are deployed in a layered solution framework tailored to different types of financial advisers.

• Optimised portfolios, where active multi-asset fund managers handle asset allocation and Glacier Invest curates the blend.

• Specialist portfolios, with Glacier Invest setting the strategic and tactical asset allocation and selecting active building block fund managers.

• Blended index portfolios, combining passive exposure with tactical asset management for cost-effective balance.

Each risk-profiled solution is carefully calibrated and regularly reviewed to ensure it aligns with evolving global trends and client goals.

Real outcomes, real returns

What matters most is performance – and here, Glacier Invest delivers. Over the last five years, despite extreme market events, from Covid-19 to rate shocks, we’ve delivered consistent alpha. Depending on the risk profile, solutions have outperformed their global peergroup benchmarks by between 1.6% and 4%, with stability across various market conditions.

Ultimately, our goal is to give advisers the tools they need to confidently recommend offshore solutions that are robust, resilient, and fit for purpose. We create portfolios that work for real people, in the real world.

The world is changing fast and so must the way we invest. By embracing innovation, targeting long-term trends like infrastructure and sustainability, and continually refining their process, Glacier Invest is helping South Africans unlock global opportunity without compromising on clarity, control or confidence.

When your clients go offshore, they need to know the solution they’re investing in has been built for this world, not the one we’ve left behind.

Investing offshore: Dependent on great expectations?

By Rob Perrone Senior investment specialist at Orbis, Allan Gray’s offshore investment partner

Given the stellar rise in the S&P 500 in the past decade, it is understandable that many investors still hold high expectations for US stocks. But shifting gear to low expectations – and truly diversifying your portfolio – is a better strategy for investors seeking to

earn offshore returns at a time of heightened geopolitical risk, argues Rob Perrone, senior investment specialist at Orbis, Allan Gray’s offshore investment partner.

For years, US stocks have been the darling of the investment community, thanks to the impressive performance of tech giants like Microsoft, Nvidia and Apple, and boosted by high hopes of the benefits of generative artificial intelligence (AI). Over the past 15 years, the US stock market has come to dominate global passive portfolios, with its weight in the MSCI World Index rising from below 50% to nearly 75%.

The rise in US shares has been driven by exceptional returns. Since 2010, the S&P 500 has returned 13% per year, much higher than markets elsewhere, exceptionally high versus its own history and inflation, and a near-record result against bonds and cash.

But it is unlikely that such a success story is sustainable over the long term, especially given the massive sell-off that was triggered by news of US President Donald Trump’s tariff hikes on 2 April, followed by a relief rally as fears of a global trade war eased.

What’s behind the rise in US stocks?

To understand why US shares have done so well over the past 15 years, it is important to analyse the fundamentals. Equity returns come from just three sources: fundamental growth, changes in valuation, and dividends.

In terms of sales growth, American companies grew sales by 5.1% per year from 2010 to 2025, and dividends contributed 1.9% per year to returns.

While one can’t quarrel with sales growth or dividends, which are pretty stable, almost half of the S&P 500’s return came from expanding profit margins and rising valuations. Those are both cyclical, they’re both currently near-record highs, and they can’t go up forever.

Regarding valuation, there has been a sharp rise in the price-earnings ratio for shares listed on the S&P 500. In 2010, the S&P traded at 15 times trailing earnings. Valuations have since got much more expensive and the US market

now trades at 22 times earnings. That added 2.8% per year to returns. For valuations to provide the same boost to returns over the next 15 years, the S&P would have to trade at 40 times earnings, which doesn’t look realistic to us. But what if they fall to 20-year-average levels? If margins and valuations fall, the numbers suggest a 3.8% per year long-term return for the S&P – less than the yield on US Treasury bonds. Said another way, the broad US stock market is dependent on great expectations. Great expectations are already in the price, so to expect a great return, investors need to believe that reality will prove even more amazing than markets already expect.

“There has been a sharp rise in the price-earnings ratio for shares listed on the S&P 500”

Better value elsewhere

Given that the phenomenal rise in American stock markets is unlikely to continue indefinitely and that the US dollar is currently overvalued, it makes sense for investors to truly diversify portfolios. When expectations are high, so is risk. Fortunately, low expectations are easier to find pretty much everywhere else.

Outside the US, stocks are cheaper across various geographies, sectors and by company size. Many fund managers are looking to markets like Japan, which is experiencing strong corporate reforms and robust earnings growth, while a weaker yen is boosting exports. Tariff volatility has left some babies thrown out with the bathwater. If you look at a company like Mitsubishi Estate, it rents Tokyo office space for Tokyo office workers. This business has nothing to fear from tariffs, yet its shares were down sharply in March and April. Similarly, the Chinese brand ANTA Sports makes running shoes in China for runners in China – almost entirely domestic costs and domestic sales. What does this business have to fear from tariffs? In our view, not much, but its shares were down 26% at one point in April. These examples underscore the opportunities available for investors willing to embrace a greater degree of diversification. Although the US still offers value, it doesn’t hold a monopoly on high-quality businesses. Achieving true diversification isn’t about owning absolutely everything and hedging all your bets. Where assets are attractively valued, you want that exposure, and where they’re not, you don’t. Today, we see much more value in markets outside the US.

That

Don’t just invest

To

Survey shows investors are sensitive to global disruption

Johanna Kyrklund Group Chief Investment Officer

The Schroders Global Investor Insights

Survey analyses the investment perspectives of global financial professionals on a range of topics, including macro themes, investment priorities, and asset allocation intentions across public and private markets. The respondents represent a spectrum of institutions, including pension funds, insurance companies, single-family offices, endowments and foundations, official institutions, as well as wealth gatekeepers.

Investors preparing for a constant state of disruption

The first half of 2025 has been marked by significant upheaval, driven by trade tensions, policy divergence and geopolitical instability.

With fieldwork for this year’s survey conducted in April and May, beginning 13 days after ‘Liberation Day’, it’s no surprise that trade tariffs emerged as the likely most significant macroeconomic impact on investment strategy – six times more than any other macro concern such as inflation and the threat of recession.

We are witnessing a shift in how global economies interact, with investors acknowledging the disruption this has created and its likely long-term impact. In this environment, flexibility, adaptability and selectivity are key. “The wider backdrop is that financial markets are still adjusting back to structurally higher interest rates, made painful in many cases by high levels of debt. This is raising questions about future market trends and the value of passive approaches in a period of greater uncertainty,” says Johanna Kyrklund, Group Chief Investment Officer.

What’s top of mind in 2025?

• Tariffs and protectionism are ranked number one by nearly two-thirds of investors – six

times more than any other macro concern.

• 55% of those surveyed see continued US foreign policy uncertainty as a leading geopolitical concern.

• Nearly one in four expect greater volatility in the next 12 months compared to both the Covid-19 outbreak and the Global Financial Crisis.

How investor priorities shape their risk profile

Portfolio resilience

• 55% of investors are prioritising portfolio resilience

• 60% are maintaining or increasing risk Income

• 12% are focused on generating income

• 53% are keeping risk steady or increasing Return opportunities

• 26% of respondents are prioritising generating return opportunities

• 70% are maintaining or raising risk exposure Decarbonisation

• 8% of investors selected decarbonisation as their top priority

• 66% are sustaining or increasing risk levels.

A quality focus for an uncertain world

Scott Cooper, Investment Professional at Marriott Investment Managers

Global markets have faced renewed turbulence in recent months. Just as investors began adjusting to the postpandemic economic landscape, fresh disruptions have emerged – most notably, a sharp escalation in trade tensions triggered by new US tariff policies. This has reignited fears of a global trade war, amplifying volatility across asset classes. The S&P 500, for example, fell 10% over just two trading sessions in early April, underscoring how fragile market sentiment has become.

At the same time, mounting concerns over the US fiscal outlook have raised questions about the dollar’s long-term status as the world’s reserve currency. Long-dated government bond yields have surged, with the 20-year US Treasury yield breaching 5%, a stark contrast to the 1% levels seen at the onset of the pandemic. Yields in the UK and elsewhere have followed a similar trajectory, reflecting widespread investor anxiety around sovereign debt sustainability.

Inflation risks, too, are resurfacing – fuelled by tariffs and the potential for renewed supply chain disruption. While inflation appeared to be moderating in the latter half of 2024, the spectre of protectionism could push input costs higher and disrupt global trade once again. In such conditions, the natural question

arises: Where can investors find resilience?

Historically, high-quality investments have provided a buffer during turbulent periods. Companies with strong balance sheets, reliable earnings, and durable competitive advantages tend to weather downturns better and often emerge stronger.

This is the essence of quality investing: identifying exceptional businesses and holding them for the long term. Historically, equity managers were primarily categorised as either growth or value oriented. Today, quality investing has emerged as a distinct and effective approach embraced by many global asset managers. Although market narratives shift, the core characteristics of quality – financial strength, operational resilience, and sound governance – offer a rare source of stability in an unpredictable world.

At Marriott, we believe a disciplined, qualityfocused strategy is particularly well suited to today’s environment. That’s why we’ve launched the Smart International Equity Portfolio, a globally diversified solution designed to give investors access to the worlds’ best qualityfocused active and passive funds with subtle but important differences to improve riskadjusted outcomes.

The Smart International Equity Portfolio:

• Focuses on high-quality businesses with strong balance sheets, established brands,

and consistent earnings – traits that support above-average, risk-adjusted returns

• Provides access to globally recognised active managers, including the Fundsmith Equity Fund and the Dodge & Cox US Stock Fund –broadening offshore opportunities available to South African investors

• Blends active and passive strategies, incorporating low-cost options like the iShares Core S&P 500 ETF to enhance efficiency

• Diversifies across managers, sectors, and geographies, helping to manage risk and capture global opportunities

• Offers tax efficiency, with all underlying investments held in UK-domiciled funds in situs-free jurisdictions. By selecting accumulating share classes, investors can compound dividends tax-free, with gains taxed as capital gains rather than income upon repurchase.

For long-term investors, the Smart International Equity Portfolio offers a compelling approach to building wealth through quality. While well positioned for any environment, this strategy is particularly relevant in today’s climate of geopolitical and economic uncertainty.

The Smart International Equity Portfolio (SIEP) can be accessed via Marriott’s International Investment Mandate (using your annual individual offshore allowance).

Structures are a compelling offering

As the world grapples with economic unpredictability, structured investments are presenting a compelling solution and a more balanced approach to wealth preservation and growth for South African investors.

Foreign investors are pulling billions from emerging markets and gold prices have so far surged nearly 28% in 2025 as a safe-haven asset. Therefore, the need for diversified, riskmanaged investments has never been greater. Structured investments, particularly those with offshore exposure, allow investors to participate in market gains while safeguarding their capital against volatility.

For example, Liberty recently opened two new tranches of the Liberty Structured Global Performer portfolios – the V6 and ESG V6 investment. Both allow investors to get offshore exposure while protecting against currency fluctuations and a loss of capital up to a certain level.

These portfolios are available on a fixedterm product for a period of five years, the advantage is that investors can understand today what their payoffs and outcomes at the end of the investment term could be, and

this gives investors peace of mind. The Liberty Structured Global Performer V6 portfolio gives investors exposure to both the S&P 500 index in the US, and the Eurostoxx 50 index in Europe. The split between the two is 50/50.

At the end of the five-year term, if this combination of indices is positive at maturity date after adjusting for tax, investors will receive a minimum targeted return of 8.50% per annum for individuals, and 7.69% per annum for companies. This will be the case, even if the index is up only one or two points.

If the index finishes at a level that is greater than 8.50% per annum for individuals or 7.69% per annum for companies after tax, investors will see that full gain after adjusting for tax. At the same time, if there is no change in the index at the end of five years, or it falls by up to 30%, the product offers full capital protection. In other words, if the combination of indices goes down over this period, investors won’t lose anything unless that decline is greater than 30% at the end of the five years. If that happens, investors will receive the then current value of the investment.

The Liberty Structured Global Performer ESG V6 offers even greater upside protection and

By Luvhani Makoni Lead Specialist for Liberty Investment Propositions

the chance to invest in a portfolio with a sustainability focus. In this portfolio, investors get exposure to the MSCI Global Diversified ESG 100 Decrement 5% index. This is a portfolio of 100 stocks in major markets, such as the US, Europe, China and the Asia Pacific region, with an added layer of sustainability.

At the end of the five-year term, if this index is up but below the minimum targeted return after adjusting for tax, investors will receive the minimum targeted return of 12.50% per annum for individuals, and 11.38% per annum for companies. If the index finishes above these levels, investors will see that full gain after adjusting for tax.

The portfolio also offers the same capital protection up to a 30% decline in the index. What makes these kinds of solutions highly relevant is that they allow investors to hold a diversified exposure to global stock markets, while offering some protection in this current market environment. This provides reliable outcomes.

NAVIGATING THE FUTURE OF OFFSHORE INVESTMENT:

A conversation with Hildegard Wilson, MD of Glacier International

Hildegard, you’ve been in your role as Managing Director of Glacier International for a few months now. What trends have you observed in the business, and what excites you most about the future?

It’s truly an exciting time to be at Glacier International. One of the most surprising developments has been how much easier the conversation around o shore investing has become. This shift is largely due to evolving regulations and a growing awareness of the need to diversify internationally. We’re seeing a broader range of clients engaging with us not just high-net-worth individuals, but a more general investor base as well.

O shore investing can seem daunting to many. What would you say to someone who’s hesitant, especially with the rand being so volatile?

That’s a common concern. The rand is indeed one of the most volatile currencies globally, and trying to time the market can be incredibly di cult. Instead of waiting for the “perfect” moment, we encourage investors to start gaining o shore exposure as soon as possible. The benefits of diversification and access to global opportunities far outweigh the risks of short-term currency fluctuations.

There’s a perception that o shore investing is only for the wealthy. Has that changed?

Absolutely. At Glacier International, we’ve worked hard to make o shore investing more accessible. We’ve lowered the minimum investment in our o shore plan to just R5,000 per month. We’ve also developed a range of risk-profiled solutions that make it easier for financial advisers to integrate o shore options into their clients’ portfolios. It’s about creating inclusive, easy-to-understand products that meet a wide range of needs.

That’s a big step forward. What’s next for Glacier International? We’re focused on continuing to innovate and expand access to global investment opportunities. Our goal is to empower more South Africans to build resilient, diversified portfolios that can weather local and global economic shifts. We’re excited about the road ahead.

The global market is full of opportunities. Ask your financial adviser how the Glacier O shore Investment Plan can help you unlock them.

The Glacier O shore Investment Plan is an investment solution which o ers you the opportunity to invest o shore, accessing di erent markets and currencies with simplicity, flexibility and a modest investment minimum of R5 000 per month

Visit www.glacierinsights.co.za for more information or speak to your adviser about our solutions.

FROM R5,000 PER MONTH

The Glacier O shore Investment Plan is a flexible, discretionary savings vehicle which o ers investors the opportunity to invest o shore, accessing di erent markets and currencies. It is administered by Glacier Financial Solutions (Pty) Ltd, a Licensed Administrative Financial Services Provider, FSP 770.

Vongani Masongweni Quantitative Research Analyst at Momentum Investments

Unlocking global opportunity: A strategic shift for South African investors

In a world where markets are increasingly interconnected, and exchange controls are being relaxed, South African investors have more reason than ever to look beyond their local markets. Offshore investing isn’t just a diversification tool; it’s a necessity to manage exposure to local risks and tapping into a much wider set of growth opportunities. With platforms like Momentum Wealth International, investing offshore has become less complex and more accessible, helping advisers unlock broader investment choices for their clients.

South African investors face a limited and concentrated local investment universe. The JSE, while home to some strong businesses, is also narrow in sector breadth and heavily tied to domestic economic cycles. Many of its companies derive close to half their revenue from South Africa and Africa, exposing investors to country-specific risks such as policy uncertainty, loadshedding, and currency volatility. Against this backdrop, offshore investing offers not only an escape from these constraints but also access to a significantly larger opportunity set.

“Blending developed and emerging market exposure creates a portfolio better positioned to handle shortterm volatility”

Investing in global markets opens the door to those sectors and regions that are underrepresented on the JSE. Local markets lean heavily on financials, resources, and basic materials, while offshore markets provide access to the industries that are driving global growth. Emerging markets, which include fast-growing Asian and Latin American economies, provide strong representation in technology, communications, and consumer services, which are not available on the JSE. At the same time, developed markets offer relative stability through exposure to resilient global giants like Apple, Microsoft and Alphabet, companies that have played a defining role in market recoveries.

For South African investors, going offshore is also a way to mitigate local currency risk. The rand is among the most volatile currencies in the world, often reacting sharply to global sentiment, local politics, or commodity prices. Even when local assets perform well in rand terms, returns can be undermined in real terms if the rand weakens. Offshore assets, especially those denominated in US dollars or euros, can provide a buffer.

There’s also a strong valuation case for having offshore exposure. As shown in Figure 1, emerging markets have historically traded at lower price-to-book ratios, often between 1.2 and 1.8, which suggests room for upward rerating over the long term. Developed markets, while more fully valued, provide more consistent earnings growth and quality of cashflows. The JSE, by comparison, trades within a relatively tight valuation band and is constrained by the structural challenges facing the local economy. In this context, diversifying offshore allows investors to capitalise on valuation gaps and seek return opportunities in relatively undervalued global regions.

Of course, offshore investing comes with its own risks, including geopolitical uncertainty, regulatory shifts, and market drawdowns. But historical evidence shows that developed markets tend to recover faster thanks to their stronger governance and earnings resilience. Emerging markets may experience deeper dips, but their long-term growth potential makes them a valuable counterbalance. For investors willing to look beyond South Africa’s borders, blending developed and emerging market exposure creates a portfolio better positioned to handle short-term volatility and capture global growth opportunities.

The process of investing offshore has also become far more accessible. Momentum Wealth International, Momentum Wealth’s offshore investment platform, allows financial advisers to build globally diversified portfolios without navigating the complex regulatory terrain alone. Momentum Wealth International not only offers more than 1 200 foreign currency denominated funds, but streamlines access to international funds and solutions, giving advisers confidence and flexibility in managing offshore allocations. The result is a more efficient way to help clients participate in global markets – not just as a hedge, but as a strategic driver of long-term returns.

Ultimately, staying local in today’s world means missing out. Offshore investing gives South African investors the chance to broaden their horizons, reduce concentration risk, and gain exposure to sectors, regions and currencies that are simply not available at home. With the right platform and a well-balanced approach, global investing becomes not just an option, but an essential part of building resilient portfolios for the future. For more information on our offshore investing solutions, visit Momentum Wealth International at momentum.co.gg

The global move toward ESG (Environmental, Social and Governance) investing is more than just a trend – it’s an economic force. “Estimates show that ESGrelated assets could reach over $55tn by 2050,” says Luke McMahon, Senior Portfolio Manager at Glacier Invest. “Investors are increasingly concerned about how their capital affects the world, and they’re voting with their wallets.”

With this in mind, while South Africa is behind the developing world in terms of ESG investing, local investors are increasingly recognising the long-term value of sustainable and responsible business practices. Driven by both regulatory developments and shifting societal expectations, asset managers and institutional investors are integrating ESG criteria into their investment decisions to mitigate risk and unlock growth opportunities.

The country’s unique socio-economic challenges, such as inequality, unemployment and climate vulnerability, make ESG considerations particularly relevant. South Africa’s adoption of the UN Principles for Responsible Investment and the inclusion of ESG metrics in retirement fund regulation (Regulation 28) further reinforce this shift. As companies face growing pressure to demonstrate climate resilience, strong governance, and social accountability, ESG investing is becoming a cornerstone of both risk management and value creation in the local financial landscape.

New study reveals ESG investing benefits

In a major new international study, Schroders and Oxford University’s Business School have provided extensive evidence that highlights the potential for ‘impact’ to be a source of alpha and so a driver of positive returns.

The paper is based on data drawn from more than 250 publicly listed companies that have been approved through Schroders' proprietary Impact Framework, which leverages the pioneering 25-year track record of impact asset manager BlueOrchard, and spans more than a decade of performance.

Key takeaways from the research are that impact portfolios delivered strong and competitive absolute and risk-adjusted returns, relative to broader, unconstrained portfolios

The ESG imperative

Compiled by Sandy Welch

– and that they also exhibited lower volatility and smaller drawdowns, and so reduced downside risk, and demonstrated greater stability during market downturns.

The study also found evidence that companies with higher revenue alignment to impact-oriented products and services (impact materiality) generated superior financial returns, suggesting that impact itself can be a driver of financial performance, and a source of alpha.

According to Schroders, the study shows the world is entering a new phase in the evolution of sustainable investing, one defined not by expressions of intent, but by thoughtful investment of capital to align sustainability priorities with performance goals.

Decarbonisation still matters

This year’s results do show, however, that not all investors are moving at the same pace when it comes to decarbonisation. For those who are increasing their commitment to decarbonisation, 51% highlight stakeholder pressure as the primary factor, followed by regulation and increased financial risk associated with climate (both 45%). While 42% report no change in their commitment to decarbonisation, a quarter say urgency has declined, largely due to political factors (50%) and regulatory uncertainty (47%).

The results show that the energy transition has evolved from an ESG concern and a means through which to achieve decarbonisation goals, into a cornerstone of global investment strategy. For today’s investors, the results confirm that the conversation has shifted:

• It’s no longer about whether to support decarbonisation simply from a philosophical, values-based or regulatory standpoint, but how best to position portfolios for sustainable, long-term growth.

• An overwhelming 86% of investors intend to allocate to the energy transition in the next 12 months, across both public and private markets. While 77% cite return potential as a top-three reason for backing the transition, only 8% identify decarbonisation as their number-one investment priority. This is not a contradiction, it’s a signal of maturity. Investors are pursuing performance, with decarbonisation as a natural benefit.

• The opportunity set is vast and growing, with energy transition investments becoming mainstream, essential components of futureproofed portfolios. This year’s survey tells us that renewables (e.g. wind and solar) lead investor interest with 65%, ranking them among their top-three most attractive opportunities in the energy-transition

universe, followed by battery storage (53%) and electric vehicle (EV) charging infrastructure (45%).

Growth in private equity impact

Impact investing has also been a growing phenomenon in private markets – and private equity in particular. According to the Global Impact Investing Network’s (GIIN) ‘Sizing the Impact Investing Market 2024’ report, there is currently close to $1.6tn in impact investing assets under management (AUM) globally, being managed by more than 3 900 organisations.

And according to the GIIN State of the Market 2024 report, based on its annual impact investor survey, 43% of all impact AUM is allocated to private equity specifically, making this by far the largest single asset class for impact investing. A substantial 73% of survey respondents have at least some of their impact AUM in private equity.

Industry data provides compelling evidence that impact returns in private equity are at least competitive with, and in some cases outperform, wider market returns. There is also clear evidence that performance relative to the market deviates year-by-year, supporting the view that there are differentiated return drivers for impact investments.

An emerging priority for family offices

Environmental, social and governance (ESG) considerations are growing in importance for local family offices – but with a caveat. “In South Africa, ESG isn’t yet a major focus for local family offices. It’s still largely about commercial outcomes,” Mike Donaldson, CEO of RMB Corvest says. “But that’s changing, especially when offshore funders or international LPs are involved.”

ESG frameworks, while not yet fully embedded locally, are likely to become a selling point in the future. “If you're planning to exit in five to ten years and haven’t embedded ESG into the asset, you’ll struggle to find a global buyer,” Donaldson cautions. Private equity firms with bank-linked teams – like RMB Corvest – offer a clear benefit. “RMB has a dedicated ESG division with specialists, and we offer access to that expertise.”

As ESG investing continues to mature in South Africa, it's important to move beyond the outdated assumption that investors must sacrifice returns in pursuit of positive impact. The notion that investing with purpose comes at the cost of performance is being steadily debunked by a growing body of evidence showing that well-managed companies with strong ESG credentials are often better positioned for long-term resilience and growth.

The rising importance of ‘S’

By Vuyolwethu Nzube ESG Analyst

AStanford study found that investors in North America and Europe tend to focus more on environmental (E) and governance (G) factors in ESG investing, often overlooking the social (S) risks. However, the ‘S’ factors are becoming increasingly important, particularly given the heightened focus on several social issues in 2024. The relevance of social factors will differ significantly across different regions and can drive a complex balancing act in aligning to environmental protection. Some of the key developing social aspects are outlined below.

Balancing socio-economic protection with a green transition

South Africa’s unique socio-economic context presents the complex challenge of transitioning to a green economy while addressing local social realities. A Just Transition – one that shifts toward a low-carbon economy while prioritising social wellbeing through decent employment opportunities and inclusive community engagement – is essential for sustainable transformation. This approach recognises that environmental progress must go together with social equity. South Africa joins 65 other countries that have explicitly incorporated Just Transition principles into their Nationally Determined Contributions (NDCs), the frameworks that outline each nation’s emissions reduction commitments. We are increasingly seeing countries attempt to balance environmental ambitions with economic realities. For instance, Indonesia had initially planned to phase out coal-fired plants by 2040. However, in light of pressing energy security concerns, the country is now constructing new coal plants and extending the lifespan of existing ones. While environmental risks remain high, the socio-economic challenges of transitioning to greener energy are likely to materially shape the pace and path of the energy transition – particularly for higher risk sectors such as coal and mining.

Minimum wage pressures

Inflationary pressures in 2024 drove significant minimum wage increases across multiple countries. Argentina implemented a substantial

51% increase while Japan recorded its highestever increase of 5%, Nigeria more than doubled its minimum wage, and Saudi Arabia raised wages by 45%. South Africa’s 4.4% increase, though aligned with inflation, represented the highest rise since the introduction of a minimum wage. South Africa also amended its Company’s Act to require disclosure of the ratio between highest and lowest earners within companies.

Minimum wage movements reflect efforts to preserve living standards for low-wage workers and advance social justice. Ongoing inflationary and cost-of-living pressures will likely sustain upward pressure on minimum wages, creating particular risks for sectors with high exposure to minimum wage labour, such as Retail.

Social regulations

The EU introduced supply chain regulations in 2024 through the Corporate Sustainability Due Diligence Directive, targeting social and environmental risks across companies’ supply chains. This directive requires due diligence across the entire value chain, extending beyond direct suppliers. Although the regulation applies to a limited number of companies based on specific criteria, it signals a broader trend of increasing scrutiny of environmental and social risks throughout supply chains. The directives will particularly impact companies operating in the EU and those that do business with EUbased organisations.

Increased social disclosure

The formation of globally recognised Task Force on Inequality and Social-related Financial Disclosures (TISFD) in 2024 marked an important development in social risk reporting, though still in its early stages. TISFD aims to provide comprehensive guidance on social risks, mirroring the frameworks established by TNFD for biodiversity risks and TCFD for climaterelated risks.

Managing social factors in practice

Social issues receive greater attention in South Africa where the unemployment rate is high. Truffle’s ESG approach considers specific social factors or issues that have a material impact on valuations and earnings, as well as our engagement approach with company management. These can broadly be grouped into systemic issues, which are inherent in a company or industry given the environment and business operating model, and incidentspecific issues.

By way of example, Truffle identified labour exploitation as a systemic issue across certain companies and industries. Our research approach included an evaluation of human rights risks in supply chains, focusing on industries such as mining, fashion, luxury goods, and agricultural products (including tobacco).

Our evaluation included a review of each company’s human rights policy and considered any controversies around human rights abuses in the past three years. The results of the analysis as it relates to companies held in the Truffle SA Equity mandates indicate that 96% of companies have human rights policies in place, while the chart below shows the level of risk within the equity exposure. These findings informed ongoing engagements with highrisk companies.

Source: Truffle Asset Management

Delving into a specific incident

In April 2024, a key incident highlighted human rights risks and prompted engagement with SA apparel retailers. Some of Giorgio Armani’s operations had recently been placed under judicial administration for exploiting migrant workers in their Italian supply chain. We engaged with companies in the fashion and luxury sector to assess their exposure and supply chain management around human rights abuses. We established that SA companies engaged have specific Child and Forced Labour policies in place, with only one showing a minor related controversy.

In follow-up discussions with company management, we also gained comfort that these local fashion companies are undertaking consistent monitoring with regular audits across the supply chain.

The ESG landscape continues to change and evolve. Truffle is committed to ESG integration in our investment process and our approach ensures consistent monitoring and response to industry-wide and companyspecific Social risks.

Turning cover into certainty Momentum Life Insurance’s 2024 Claim Statistics

R77,9 billion in claims paid. Delivering on our promises, one claim at a time.

Momentum Life Insurance’s latest claim statistics show just how far Myriad, its market-leading life insurance product, has come in delivering on its core purpose: turning cover into certainty. Since its inception in 2002, Myriad has paid out an impressive R77,9 billion in claims. In 2024 alone, R5,67 billion was paid under Myriad, contributing to a total of R6,6 billion in claims across all Momentum Retail products which include some cover on legacy risk products.

Myriad claims payments per category

R3,87 billion

R617 million

R895 million

R281 million

The 2024 statistics reveal a compelling story beyond the numbers. Life insurance requires tailored advice to ensure clients have the right cover at the right time. Regular reviews are crucial, as products and benefit definitions, particularly for living benefits, evolve over time. This highlights the growing need for modern, adaptable cover that keeps pace with life’s changes.

Death claims

Cardiovascular disease and cancer were the leading causes of death claims, jointly accounting for close to 60% of all death claims paid in 2024. These conditions affect both men and women, with men representing the majority of claims. Unnatural deaths, respiratory conditions and nervous system disorders made up the remainder of the top five causes.

Unnatural causes, including motor vehicle accidents, suicide and homicide, accounted for a smaller share of overall claims. However, they represented a significantly higher proportion among younger clients. In fact, 57% of death claims for clients under 30 resulted from unnatural causes

Terminal illness benefits totalled R93,1 million across 38 claims, with cancer being the dominant cause. These payouts support clients in the final stages of life when a diagnosis is deemed terminal, with no hope of recovery and a life expectancy of less than 12 months.

In a landmark moment for Momentum Life Insurance, 2024 saw the payment of the insurer’s largest death claim to date: R133 million. This significant payout demonstrates both the scale of financial protection offered and the value of sound financial planning, particularly in addressing business assurance needs.

Critical illness

Cancer remained the leading driver of critical illness claims at 45%, followed by cardiovascular, nervous system and musculoskeletal conditions. Momentum paid out R895 million in critical illness claims in 2024. The largest individual claim totalled R12,2 million for a 52-year-old man, and the youngest claimant was just 18 years old.

Momentum’s data shows that 82% of critical illness claims were first-time claims. However, 12% were for a second claim and 6% for a third or subsequent claim. This reinforces the value of cover that reinstates — and supports the case for — standalone benefits that can be reinstated if a qualifying unrelated condition occurs in future.

Momentum also paid R26,6 million across 165 claims under its unique Breadth of Cover Guarantee®, which demonstrates the value of comprehensive benefit definitions. These are claims that might have been declined by other insurers in the South African market as only some — but not all — insurers cover these conditions for which these claims were made. The value of Myriad’s Breadth of Cover Guarantee® cannot be overstated. It ensures that if at least one competitor covers a condition, Momentum will pay the claim too, even if the condition is not covered in the Myriad claims definitions. This gives clients peace of mind, knowing they have the highest likelihood of a successful critical illness claim with Myriad’s Complete Range critical illness benefits.

Disability and income protection

Disability and income protection benefits continue to play a central role in Momentum Life Insurance’s holistic risk offering.

In 2024 the largest lump sum disability claim was R39,9 million and the largest income protection claim was R7,9 million.

Musculoskeletal conditions were the top cause of claims on both lump sum and income protection benefits, followed by nervous system conditions and cancer. Mental health conditions ranked fourth for income protection, while visual impairments were a notable cause of disability claims.

Claimants ranged widely in age. The youngest income protection claimant was an 18-year-old who was paralysed following a motor vehicle accident. At the other end of the age spectrum was an 84-year-old man who continues to receive monthly payments for prostate cancer-related disability on his impairment benefit. This highlights the long-term nature of financial protection and the importance of sustaining it throughout life.

Permanent disability claims under income protection have risen from 28% in 2020 to 45% in 2024, reflecting a maturing portfolio with a growing number of claims that result in permanent disability, requiring sustained financial support.

Payouts from multiple benefits

In 2024, 344 clients received claim payments across multiple benefits. Not all of these benefits paid out in the same year.

Among these clients, the top ten each received over R25 million in total claims. In all, more than R700 million was paid in respect of multiple claim events. This clearly illustrates the value of having layered protection and comprehensive cover across benefit types.

Advisers are encouraged to follow a holistic financial planning process to ensure their clients are fully covered against a range of life-changing events, not just one.

What this means for advisers

This year’s claims data emphasises again that life insurance is not only about cover for death. It is also about living benefits, adaptable protection, and tools that make meaningful cover easier to access.

The 2024 claim statistics proved again that claim events can happen to anyone, of any age, and highlights the need to start cover early, review it regularly and maintain it for as long as possible. It is especially important for younger clients to realise that they are not immune to life-altering events. In 2024, Momentum paid claims to individuals as young as 18 across critical illness, disability and income protection benefits. These cases serve as a stark reminder that serious events can affect clients at any age, making early, comprehensive cover essential.

Momentum Life Insurance continues to support advisers with innovations like LifeReturns® and FastTrack underwriting, which help clients secure relevant cover more efficiently. Intermediaries are encouraged to integrate risk protection into holistic financial plans and to position life insurance not as a grudge purchase, but as an enabler of long-term financial dignity.

Living longer is a gift — but only if your cover doesn’t retire before you do. As clients journey toward their goals, advisers play a vital role in helping them stay protected from life’s unexpected curveballs. That means not pulling back on risk conversations, not skipping the hard topics, and not underestimating the power of the right product, placed at the right time.

Momentum Life Insurance is committed to making that process easier and more effective through tools like LifeReturns® health screening, FastTrack underwriting, and a fully digital onboarding platform. These aren’t bells and whistles — they’re credibility builders, business enablers, and real time-savers.

So use them. Talk to your clients. Get them the cover they need. And help protect the journey, not just the dream.

The current landscape of hedge funds in SA

As hedge funds gain increasing attention in South Africa’s investment universe, financial advisers and investors need clarity on their structure, performance, and the regulatory wind shifting around them. Here’s a comprehensive look at where the industry stands.

Rising relevance and industry growth

Hedge funds in South Africa, though still small relative to mainstream collective investment schemes (CIS), are carving out a vital role. As of end-2024, assets managed by hedge fund CISs reached approximately R185bn across 221 portfolios – representing a 34% year-on-year increase, according to statistics released by the Association for Savings and Investment South Africa (ASISA). These structures, available to both retail and qualified investors, offer access to strategies like leverage, arbitrage and hedging that are unavailable in traditional fund formats.

Performance is a mixed bag

Despite their growth, hedge fund returns in South Africa present a mixed picture. The ASISA survey showed that among 69 funds operational for at least five years, only five

delivered annualised returns above 15%, while nearly a quarter underperformed, returning between 5 and 10%. Shockingly, 18 returned negative figures. This underscores the sector’s inherent risk: while hedge funds can diversify portfolios and tap into niche opportunities, careful manager vetting and risk profiling remain essential.

A regulatory turning point

Regulatory dynamics are shifting – hedge funds are soon to be further regulated under the COFI Bill, as part of the broader ‘alternative investment fund’ category. COFI introduces a unified, activity-based licensing regime across financial services, replacing fragmented legislation like CISCA and FAIS.

COFI’s implications include:

• New licencing and conduct standards: Hedge funds that invite public investment or serve qualified investors will need distinct authorisation and ongoing compliance under COFI

• Increased transparency and fee fairness: Fund managers must justify their fee structures and limit unreasonable charges – an FSCA priority aimed at protecting retail customers

• Stringent disclosure and reporting: COFI mandates improved client communication and more detailed reporting, potentially requiring digital transformation for many funds.

These changes are expected to roll out incrementally, with full implementation anticipated between 2026 and 2028.

Toward a separate hedge fund framework

According to ASISA, National Treasury is considering a separate regulatory and tax structure for hedge funds, distinct from CIS, through COFI implementation. Recognising hedge funds’ suitability primarily for sophisticated investors, this dual framework will balance innovation with manageable risk, allowing skilled investors access while preserving oversight.

The takeaway

Hedge funds in South Africa are at an important inflection point – a growing industry navigating evolving regulatory terrain. Investors must balance their potential for outsized returns with caution around complexity and risk.

Reframing the future: Why hedge funds belong in every smart investor’s portfolio

For years, hedge funds in South Africa have been shrouded in outdated myths and misconceptions. But for investors seeking more from their portfolios – more protection, consistency, and intelligent diversification –hedge funds represent an opportunity and an essential tool in their wealth creation. Let’s explore why these modern investment vehicles increasingly become essential building blocks in future-fit portfolios.

1. High fees? Think high value

Hedge funds often face criticism over fees, but this narrow focus overlooks the bigger picture. Net performance ultimately matters to investors: the returns delivered are after fees. Unlike traditional long-only funds, hedge funds are designed to navigate rising and falling markets. Their advanced strategies aren’t about just doing slightly better than the market – they’re about delivering consistent, risk-adjusted returns with a strong emphasis on capital preservation. In turbulent times, that protection becomes invaluable. It’s not just about what you earn, but what you don’t lose. In this light, a hedge fund’s fee structure reflects the value of access to experienced managers, sophisticated tools, and resilient strategies. When net returns consistently outperform, the question becomes not “Why pay more?” but rather, “Why settle for less?”

2. Beyond the benchmark: Adding true portfolio value

The idea that hedge funds don’t add value is simply out of sync with how modern portfolios are constructed. Diversification isn’t just about owning many assets – it’s about owning different strategies that behave differently under pressure.

Hedge funds contribute meaningfully to this diversification. With tools like long/short positioning, arbitrage strategies, and flexible asset allocation, they’re equipped to capture opportunities traditional funds may miss – and

cushion the blow when markets falter.

Over the long term, this flexibility can lead to more stable returns, a smoother investment journey, and exceptional risk-adjusted returns.

In an increasingly complex world, the ability to manage risk dynamically and pursue returns beyond conventional methods is a strength every serious investor should consider.

3. Transparency, oversight, and risk management Today’s South African hedge fund industry operates under some of the most robust regulations globally. Under the guidance of the Financial Sector Conduct Authority (FSCA), hedge funds must meet strict transparency, governance, and risk management standards.

In fact, many hedge funds go above and beyond in managing risk, actively monitoring exposures, stress-testing portfolios, and

By Marnus Briedenhann

applying sophisticated hedging strategies.

Far from being ‘riskier’, many hedge funds are, in practice, more prepared for adverse market conditions than their passive, longonly counterparts. It’s time to stop equating complexity with opacity. Hedge funds offer a professional, well-regulated, and insightful approach to navigating today’s financial markets.

4. Not just for the ultra-wealthy anymore

A common misconception is that hedge funds are the preserve of institutions or the ultra-wealthy. That may have been true once, but the world has changed. Today, South African investors enjoy access to a growing range of retail-friendly hedge funds with low minimums and access via all major LISP platforms. This democratisation of access means more individuals can now benefit from the strategies once reserved for creating wealth for only the elite.

This is not about exclusivity – it’s about inclusion. Exceptional returns and smart diversification are now available to a wider pool of investors than ever before.

A

smarter way forward

Investors need more than conventional tools in an environment defined by uncertainty, rising volatility, and an ever-evolving global landscape. They need flexibility, foresight, and robust risk management. That’s exactly what hedge funds provide.

At Peregrine Capital, we have spent over two decades refining our approach to managing money through market cycles. As South Africa’s oldest hedge fund manager, we have built a track record of delivering exceptional longterm, risk-adjusted returns for our clients. We believe that hedge funds – far from being a luxury – are an essential component of any resilient investment strategy. It’s time to move beyond the myths. Hedge funds are not just relevant – they are increasingly required for building smart, modern portfolios.

MythBusters – Hedge funds edition!

Hedge funds often carry an air of mystery and scepticism, particularly among South African investors who may be unfamiliar with their structure, purpose, and potential. Misconceptions can deter potential investors or lead to misguided expectations. This article aims to clarify common myths and provide a balanced perspective for South African investors considering hedge funds.

Myth 1:

Hedge funds are only for the ultra-wealthy First off, the idea that hedge funds are only for the super-rich is outdated. Yes, you’ll need more than spare change, but the barrier isn’t as high as most people think. In South Africa, the Financial Sector Conduct Authority (FSCA) regulates hedge funds under the Collective Investment Schemes Control Act (CISCA), and many funds are accessible to retail investors via numerous investment platforms. Minimum investments can vary and are subject to manager discretion, but most are available from lump sums starting from R25 000.

Myth 2:

Hedge funds are too risky

Now, about the risk factor – hedge funds aren’t necessarily ‘high-stakes gambling’. The sensational headlines make it sound that way, but the reality is a lot more measured. In South Africa, you’ll find funds with conservative

strategies, like market-neutral or fixed-income approaches, designed to manage volatility and protect your capital. Others are going to chase higher returns, and, yes, that comes with more risk. The key is understanding the strategy and doing your homework. Our regulators demand transparency, so you can always dig into a fund’s risk profile and historic performance before signing on the dotted line.

Myth 3:

Hedge funds guarantee high returns

Another myth: guaranteed big returns. Let’s be clear, hedge funds aren’t a ticket to instant wealth. They can outperform, but they can also underperform – sometimes spectacularly. Performance is a function of the manager’s skill, strategy, and the market climate. South Africa’s hedge fund industry is growing, but returns fluctuate – sometimes they’re modest, sometimes they’re impressive. Manage expectations and remember: there are no guarantees in investing, especially in volatile markets. It is important to check whether the manager has been able to navigate different market cycles successfully.

Myth 4:

Hedge funds lack regulation

On regulation, some people still think hedge funds are running wild. Not in SA. Since 2015, the FSCA has regulated hedge funds under

By Chris Reddy Portfolio Manager, All Weather

CISCA. There are two main types: Retail (for broader access) and Qualified Investor (for those with R1m or more to invest, or who have relevant financial expertise). Full disclosure on fees, risks, and strategies is required. The regulatory framework is solid and aligns with international standards, giving investors more confidence and clarity.

Myth 5:

Hedge funds are too complex to understand

Finally, the complexity factor. Sure, the terminology can be intimidating – leverage, short-selling, derivatives – but at their core, hedge funds pool capital to pursue a range of strategies that aim to generate returns regardless of market conditions. South African funds might focus on local or global assets, and reputable managers should be able to clearly explain their approach.

To sum it up: hedge funds aren’t silver bullets, but they’re not reckless gambles either. For South African investors aiming to diversify and enhance returns, they offer legitimate opportunities – supported by a robust regulatory environment. Do your research, understand the costs and risks, and make decisions based on facts, not myths.

New hedge fund from Old Mutual

Old Mutual Multi-Managers recently launched the Old Mutual MultiManagers Diversified RI Hedge Fund of Funds, a retail hedge fund of funds. This new offering aims to make hedge fund investments accessible to retail investors, providing them with the opportunity to benefit from the same robust investment strategies and expertise that have driven the success of Old Mutual Multi-Managers’ funds.

What makes the fund worthwhile?

• Value for money – Old Mutual MultiManagers have strong relationships and can negotiate cheaper rates with the underlying hedge fund managers.

• Asymmetric returns – This means investment outcomes where the upside potential (potential for profit) is greater than the downside risk (potential for loss). The fund offers higher returns with lower volatility than some of the most popular hedge funds. More importantly, the fund has high returns and less volatility than the SWIX.

• Suitable for living annuities – The drawdowns are also much lower than that

of some of the popular hedge funds. This makes the fund an option to include in a living annuity solution to manage and limit the sequence risk and preserve capital for clients. Determining the optimum allocation to hedge funds in a living annuity solution for South African investors involves balancing the need for downside protection with the goal of achieving better returns. The client need for diversification, risk tolerance, market conditions, and their investment goals will ultimately determine the allocation.

• Blending of managers done by our investment experts – Using Old Mutual Multi-Managers Fund of Hedge Fund assists financial planners to access a diversified blend of hedge funds without trying to blend the various hedge fund strategies and managers themselves.

The fund objective

The fund has a moderate risk profile with a focus on capital preservation, while targeting asymmetric returns – maximising risk while minimising downside risk. The return target is STEFI plus 4% over rolling three-year

periods. The focus is on long-term stability and maintaining a low visibility to monthly returns, ensuring that investors benefit from a strategic approach designed for steady growth with an emphasis on minimising risk. Financial planners will have access to five underlying managers with proven track records and uncorrelated investment returns, especially in down markets.

The underlying managers

• MarbleRock – Fixed income and commodities manager providing exposure to global and local fixed income, currencies and select commodities. .

• All Weather Capital – Market neutral strategy with 20-30% directional exposure.

• 36One Retail HF – A single-strategy, equity long/short hedge fund with a moderate net equity bias.

• Peregrine HG – Follows a proven investment approach with consistent results.

• Oystercatcher RCIS long/short HF – Also a long/short equity fund, but more aggressive than 36One as it aims to outperform equity returns and benchmarked against the All Share Index (ALSI).

The South African Revenue Service (SARS) is preparing to escalate its enforcement drive. With R7.5bn in additional funding over the medium term and the implementation of a focused initiative known as ‘Project AmaBillions’, SARS now has both the mandate and the means to pursue non-compliant taxpayers with renewed vigour.

Commissioner Edward Kieswetter’s twopronged approach – assisting those who comply and cracking down on those who don’t – is no longer just rhetoric. SARS is making it clear that time is fast running out for those who have not regularised their tax affairs. Now is the time to advise your clients to ensure their tax affairs are in order.

The VDP: A last safe exit

The Voluntary Disclosure Programme (VDP) offers qualified taxpayers a structured, legislated opportunity to correct prior noncompliance. It is not a loophole or workaround, but a legitimate mechanism designed to encourage voluntary compliance before SARS initiates an audit or investigation.

Taxpayers who took this route early have protected themselves from reputational harm, potential financial ruin, and in some cases, criminal prosecution. Those who did

not are now facing consequences that include public naming and shaming, civil judgments, and penalties that can reach up to 200% of the original tax debt. In more serious cases, individuals have faced prosecution, with imprisonment as a real possibility.

VDP process improved but not without risk

SARS has made the VDP process more accessible for taxpayers acting in good faith. The application system has been digitised and streamlined, turnaround times have improved, and SARS has demonstrated a willingness to engage constructively with applicants –provided the disclosure is made voluntarily and before SARS begins any form of inquiry.

While the process may appear simpler, the legal requirements remain stringent. A taxpayer must be registered, up to date with all tax returns, and the disclosure must be complete and accurate. SARS has successfully invalidated VDP relief where applications were rushed or failed to meet the statutory criteria, leaving those taxpayers exposed to both penalties and potential criminal liability.

Legal privilege: A crucial but missing conversation

What many taxpayers fail to appreciate is the importance of legal privilege – especially when the risk of criminal sanctions arises. In matters where potential prosecution is on the horizon, engaging a tax attorney ensures that communication and strategy discussions are protected by law.

This privilege does not extend to accountants or consultants. Without it, sensitive disclosures and planning documents could be accessed and used by SARS in subsequent enforcement proceedings. When the stakes include imprisonment, legal privilege is not a luxury –it’s a necessity.

SARS is now faster, smarter and sharper

This new era of enforcement is underpinned

by smarter systems and sharper tools.

By André Daniels Head of Tax Controversy

SARS has invested significantly in data analytics, automation and inter-agency cooperation. Audits are no longer random – they are precise, data-driven and often highly effective. Once an audit, investigation, or verification commences, the door to the VDP closes. This is not theoretical. SARS has in many cases already executed garnishee orders, asset preservation applications, and criminal prosecutions.

Disclose

before they come knocking

The burden of proof lies with the taxpayer. Failure to maintain records, declare all income, or keep tax affairs in order places individuals and businesses at real risk. The VDP is one of the few remaining proactive avenues allowing taxpayers to resolve historical non-compliance, avoid excessive penalties, and protect themselves against criminal liability.

Position yourself for protection – with the right advisers

It is important to understand that the VDP process is complex. Success often depends on engaging the right advisers – particularly those with a legal background who can offer protection through legal privilege. The right support can ensure a well-considered, compliant, and confidential disclosure strategy, tailored to your specific circumstances.

Act before it’s too late

The message could not be clearer: act now or face the full weight of SARS enforcement. For taxpayers suspecting their affairs are not in order, the window to make a protected, voluntary disclosure is closing quickly. Once SARS comes knocking, the options become limited – and the consequences, severe.

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