PROFILE: Victoria Reuvers MD, Morningstar Investment Management

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

I actually wanted to become a veterinarian. Unfortunately, that dream ended fairly quickly when, on my first day of job-shadowing at a veterinary practice, I fainted at the sight of blood.

I had always been very good with numbers and had an analytical mind. Ironically, I ended up in financial services by mistake. At 18 – when one needs to start thinking of what to study – I had no idea what I wanted to do, so I ended up just following in my brother’s footsteps and choosing the same degree he was busy with. Thankfully, I absolutely loved it.

After completing my studies, I accepted the first job offer that came my way, which was in the graduate programme at a bank. I didn’t enjoy this side of the financial world all that much and I was actually left a bit uninspired.

We all need a bit of luck in life and mine came with an interview and offer at Investec Asset Management. A few years into my career, I secured a position in the retail fund management team and landed up working with some truly incredible people. From day one, I was inspired and knew I had found my passion. I’ve been in investments ever since.

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

My first investment was with Foord Asset Management at the age of 22. While it has changed over the years, I still have investments with Foord and they have served me incredibly well over the years.

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

My best – ironically – would be 2020 where the benefits of being part of a global business such as Morningstar, and having the support and resources to serve our clients, shone through. In a time of heightened emotions on all fronts, I was so proud of the investment results we generated for our investors and to be part of a team that really shone. While 2020 had so many negatives, it will go down in my books as a highlight of my investing career.

My worst – managing money during the Zuma years when sentiment was so negative, returns were poor, and it was very hard to generate wealth for retired investors or living annuity clients. What’s the best book on investing that you’ve ever read, and why would you recommend it to others? The Psychology of Money by Morgan Housel is an easy read that provides great insights into simple investing rules and habits. In an industry clouded by acronyms and perceived complexity, it’s a refreshing take on investing.

What’s your view on Bitcoin and other cryptocurrencies?

I see myself as a long-term investor and not a gambler and, therefore, I steer clear of all cryptocurrencies. They are far too speculative; I can’t value them and therefore won’t invest in them.

What does the future of investing look like from where you stand – is it all about ESG?

As the investment landscape continues to evolve, I think certain trends are likely to become more pronounced over time. These include fee pressure and a shift towards passive investing, increased demand for alternative investments, and a growing focus on ESG. I believe the concept of sustainability has never been more relevant, especially to us as South Africans living in a world where state capture and corporate malaise has almost crippled this country. Sustainability means good business practice, good governance and operating in a manner that ensures environmental, cultural and community sustainability, which ultimately leads to positive outcomes for investors. The days of believing that ESG doesn’t matter, are over. A good investment is a sustainable investment.

Do you find the relatively new science of behavioural finance useful – and if so why?

Absolutely! The great investor Warren Buffett said that “few aspects of human existence are more emotion-laden than our relationship to money” – our emotions tend to be our worst enemy when it comes to making good investment decisions. Morningstar has done a lot of work in trying to understand how much value is created or destroyed by letting our emotions be the guide for investment decision making. The research showed that the value of good independent financial advice adds about 2% per annum to your investment returns. That may not sound like a lot, but trust me, when it compounds over time, it is. If you can control your emotions and desires to ‘do something’ and actually let time be the secret ingredient to your investments, you will be well served and set up for success.