While there is still a long way to go, and big challenges remain, there have been some positive strides when it comes to transformation commitments.
Pg 1 and Pg 5
Kudos to all those who received awards in the recent ceremonies. We highlight and congratulate some of the big achievers.
Pg 10-13
Cryptocurrency may have seen some ups and downs over the past few months, but it’s definitely not going away. Here’s what’s happening in the industry.
Pg 14-16
Everything you need to know about the current world of investment, from passive investing and consistent alpha generation to the evolving ETF market.
Pg 18-26
Measuring transformation in the asset management industry remains challenging, and not just because different industry reports yield different results. In various reports, discrepancies reflect varying survey sizes and methodologies, data sources, and ideas on how to measure transformation (ownership versus influence over decision-making, for example) – all of this compounded by the vagaries of self-reported data. There is, however, broad agreement that significant progress has been made, but the targets need to be revisited, and the process recalibrated.
President Donald Trump’s opposition to policies promoting Diversity, Equity and Inclusion (DEI) in the US is seen as unlikely to affect South Africa’s transformation efforts. There is wide agreement in South Africa that transformation is required not just to redress past inequality, but as a driver of stability and economic sustainability. Few would dispute that the persistent skills gap and underrepresentation of black professionals pose risks to the long-term viability of the industry. Given asset management’s critical role in the economy, any failure to transform presents an even greater challenge.
Scan to learn more about the 10X Multi-Asset Funds intermediaries.10x.co.za/ financial-advisers/
As Senzo Langa, Deputy Chief Investment Officer at Alexforbes, emphasises: “South Africa faces a unique and severe inequality challenge,” and this imbalance “can negatively affect economic growth”.
How are we doing?
There is clear consensus that the industry’s commitment to transformation is deeply rooted. Since 2007, 27four Investment Managers has provided the investment community with data and intelligence from regular BEE.conomics surveys conducted with black fund management firms. In October 2024, the company launched the 27four DEI Index, a benchmark to measure, assess and promote DEI across the sector, using data from 93 asset managers overseeing R8.42tn in assets. The company’s Chief Executive Officer, Fatima Vawda, sees “phenomenal progress” in transformation. She says: “We are very pleased with the level of transformation that has occurred, both at ownership and representation level, but we need to think about other issues.”
Visit our newlywebsiterevamped
The improved platform features a dedicated "Advice for Advisers" section, tailored to support financial professionals with insights, tools and resources. Explore a smarter, faster and more adviser-focused online experience today.
Continued from previous page
Noting that the industry has evolved since the economic empowerment codes were put in place, Vawda says the Financial Sector Code, which many use as a benchmark, was “extremely outdated” and called for its replacement with something “more relevant and growth-driven”. She continues, “We need to move beyond these basic targets of ownership and representation, because those have been achieved. We need to talk about the more fundamental issues.”
Kaizer Moyane, Chief Executive Officer of the Association for Savings and Investment South Africa (ASISA), agrees the targets need to be reset, but cautions that the “right data” is required. He says ASISA plans to commission a study into the skills gap for the sector, which would allow policymakers and regulators to talk about targets that are realistic. “If we can show the real skills profile of the sector, suddenly we’ll be able to have meaningful conversations about what would be realistic as targets.”
Vawda suggests that a first phase of transformation, representation, has been achieved but deeper, more subtle issues need to be addressed. “A manager will tell the market they have transformed, that 80% of their investment team are black. But when you ask the question, ‘How much of your assets does that 80% manage?’ you find they are managing just 20% of the assets, and 20% of the staff are managing 80% of the assets. Those are the issues one needs to think about,” she says.
Semoli Mokhanoi, Director: SADC, Mergence Investment Managers, an independent majority black-owned firm, sees progress but says there is still some resistance, often stemming from “unconscious bias, entrenched networks, and traditional hiring practices that favour familiarity and legacy relationships”. He adds: “There is still bias among gatekeepers regarding the ability of black-owned managers to deliver strong returns, despite evidence to the contrary. They often default to larger, established managers, even when more diverse, black-owned managers demonstrate solid performance.”
Agreeing that there had been significant strides in achieving diversity in leadership and investment decision-making, Langa says the latest Alexforbes Transformation Survey highlights a persistent gender imbalance, especially in higher-level positions like CEOs and CIOs, as well as executive and board roles.
Mergence’s Mokhanoi adds: “Only 18% of CEOs and 16% of CIOs are women. Women tend to occupy more entry-level positions, such as analysts, but face substantial barriers to progressing into senior decision-making roles, like portfolio managers, where 76% of firms report less than 30% women representation.”
Vawda agrees the industry needs to think about the role of women, saying that SA’s population is 51% female and 60% of graduates across big universities are women, yet women are unable to progress in the industry.
“You will find that in a large asset management company, the same number of male and female analysts join the firm, but only men progress to portfolio management roles. Women fall behind and eventually exit the industry,” she says.
Langa says transformation isn’t just about diversity quotas but about leveraging a diverse workforce’s strengths. “Diverse teams offer varied perspectives, leading to better financial performance, innovation and credibility. The question is no longer why diversity, but how to improve it and benefit from its advantages.”
Mokhanoi adds, “Clients increasingly seek firms aligned with their values, including diversity, enhancing retention and attracting business. Transformation is both a moral imperative and a competitive advantage.”
Vawda notes that firms resisting transformation are being penalised. “Institutional investors are efficient in penalising poor representation. Those who haven’t adapted haven’t grown in 10 years, while progressive firms have increased assets under management.”
As South Africa celebrates Freedom Day this April, MoneyMarketing is looking at the financial services sector’s transformation journey. The good news is that progress is being made, although challenges remain. Industry insiders note that further attitude shifts are necessary, with true upliftment, equality and inclusion being essential for the sector’s optimal functioning.
This time of year is also synonymous with celebration, as we recognise the outstanding achievements of professionals who have made remarkable contributions to the industry. Award season is upon us, and we extend our heartfelt congratulations to the winners of various prestigious accolades. These awards not only honour excellence but also serve as a benchmark for the future of financial advisory services. Their success stories
She highlights economic growth as crucial. “We really need an economy that is growing to achieve transformation objectives,” she says. “We have seen a lot of independent, black-owned asset managers and women-owned asset managers emerge, and that’s fantastic. The large asset management firms have gone on aggressive hiring sprees to achieve the right kind of profile and demographics. But South Africa’s economy is not growing, so we are not seeing new money coming into the industry in terms of more companies contributing towards pensions, and more individuals saving.”
ASISA’s Moyane agrees that progress in employment equity is also a factor of growth in the industry or the economy, and that more focus should be on creating an economy that is conducive to transformation. “The focus on growing the number of the designated groupings in companies should be overlaid with the lens of what’s happening in the economy.”
He adds that focusing all energies on dividing the cake was just not a worthwhile exercise. “The focus really should be on creating the opportunities for transformation to happen rather than focusing on whether there’s transformation in a space where the conditions are not conducive for that to happen.” Speaking for ASISA members, Moyane says there’s buyin from business, as well as at the highest level in government, that the only way is to work together to grow the economy and create jobs. “That partnership, which is in its second phase now, is growing, and business is playing its part in terms of injecting resources, both financial and human capital.”
By Siobhan Cassidy MoneyMarketing contributor
remind us of the resilience, expertise and dedication that drive our industry forward.
Another key development shaping financial markets is the ever-evolving landscape of cryptocurrency. The past year has seen significant regulatory movements, institutional adoption, and technological advancements within digital assets. With the rise of decentralised finance and increasing discussions around central bank digital currencies, financial advisers must stay informed to help clients navigate this volatile yet promising sector.
As always, MoneyMarketing is committed to delivering insights, trends, and expert perspectives that empower you to thrive in an era of transformation.
Stay financially savvy,
How did you get involved in financial services – was it something you always wanted to do?
It was completely by accident. After moving to Johannesburg, I was searching for a short-term contract and secured a six-week assignment as an administrator with a large investment platform provider. That temporary job turned into a 25+ year career in the industry. I fell in love with financial services, particularly investments, and have been fortunate to work with incredible people across all aspects of the business. It ignited my passion for helping ordinary South Africans achieve their financial goals and retire successfully. Beyond work, I’ve also had friends in the industry who have inspired me and shaped my thinking over the years.
What was your first investment – and do you still have it?
I started with small monthly contributions into unit trusts and a retirement annuity (RA). Initially, the amounts were modest, as it was all I could afford. Over time, as I received salary increases, I gradually increased my contributions. The tax break I received on my RA contributions has been reinvested annually. Yes, I still have those investments, and I’ve enjoyed watching them grow. I’ve only withdrawn from my unit trust once – to cover some renovation costs, which helped minimise debt.
What have been your best – and worst –financial moments?
My best moment was setting up our retirement plan. Understanding the amount we needed for retirement, planning how to get there, and reviewing our progress each year gave us confidence that
we were on track. My worst financial decisions came from starting to save too late – my 20s and 30s were financially tight, making it harder to catch up later. Another regret was upgrading cars too often. I learned the hard way how much of a poor financial decision that was. Now, I am far more practical about that.
What are some of the biggest lessons you have learnt in and about the finance industry?
The magic of compounding is truly extraordinary. Watching monthly contributions grow over time, with annual increases, becomes addictive. Also, having an emergency fund relieves pressure and helps avoid short-term debt. And, understanding the difference between good debt and bad debt is crucial. Compounding can work against you if you’re the borrower.
“The magic of compounding is truly extraordinary””
What makes a good investment in today’s economic environment?
Firstly, diversification is key – having a wellbalanced spread of asset classes, risk types, and geographic exposure. Secondly, time is your ally – playing the long game and allowing compounding to work for you is essential. And lastly, patience is critical – being aware of behavioural biases and resisting the urge to react to daily market fluctuations.
What finance/investment trends and macroeconomic realities are currently on your watchlist?
Technology’s role in making investments simpler and more accessible is fascinating. It has the
potential to ease administrative burdens and help financial services companies and financial advisers reach more people. I’m also watching how younger generations approach financial planning – what they want and how their needs will evolve. Regulatory changes are also always on my radar, as they shape the financial landscape. Another key focus is protecting our clients’ assets – both their money and their data. Cybersecurity and financial protection go hand in hand.
What are some of the best books on finance/ investing that you’ve read, and why would you recommend them?
I highly recommend Sam Beckbessinger’s Manage Your Money Like a Grownup in two versions, one for adults, one for teenagers. Both are easy to understand. Warren Ingram’s books are also excellent. They’re well written and accessible for anyone looking to improve their financial knowledge. Another must-read is The Psychology of Money by Morgan Housel. It helps you understand why people behave the way they do with money and how to rethink your financial habits. But my biggest learning tool has been The Money Show – a podcast hosted by well-known journalist and radio presenter Stephen Grootes (previously by Bruce Whitfield). I’ve listened to it for over 10 years, every episode, often catching up via podcast. The insights, the stories, and the diverse perspectives have been invaluable to me.
The FPI recognises the quality of the content of MoneyMarketing’s April 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
Supporting and developing black-owned Independent Financial Advisers (IFAs) has been an important focus for the ASISA Enterprise and Supplier Development Initiative. The most recent IFA Practice Development Programme came to a very fitting conclusion at a close-out event where 26 IFAs from across six South African provinces graduated.
Held in Dunkeld, Johannesburg, this event brought together industry peers to reflect on the growth and achievements of this latest cohort of IFAs who can now use their enhanced knowledge and digital skills to build trust, expand their reach, and contribute to economic growth and financial inclusion.
The annual IFA Practice Development Programme is run by the ASISA ESD Initiative to foster transformation within the savings and investment industry by supporting and developing black-owned IFA practices. Launched in 2016, this innovative programme is powered by SME development specialists Edge Growth, with support from leading investment managers Allan Gray, Coronation, Ninety-One, and M&G Investments.
The programme involved over 500 hours of mentorship delivered over eight months, completion of more than 40 projects and six modules, with 100% of participants completing the programme.
Since its inception, the ASISA ESD Initiative has successfully supported over 240 black-owned IFA
practices, contributing to job creation and skills development within the sector. Graduates from this programme are equipped with the skills to drive revenue growth, expand their businesses, implement systems and technology, refine business plans, increase brand exposure, diversify products, formalise operations, and grow their client base.
At the event – hosted by programme managers Edge Growth – the COO of the ASISA ESD Initiative, Lee Coller, highlighted the organisation’s commitment to fostering collaboration and sustainable growth within the IFA sector. “The IFA programme will celebrate 10 years in 2025, making it one of the longest-running of its kind, and this strongly emphasises the critical role of IFAs in ensuring accessible, client-focused financial advice, particularly through financial inclusion. With evolving regulations and technology, continuous learning is crucial for IFAs in South Africa to thrive.” Coller also stated that the ASISA ESD Initiative encourages participants to stay engaged, contribute to industry transformation, and mentor the next generation of financial advisors through its internship programme.
“As Edge Growth, we acknowledge the resilience and commitment of all participants throughout the programme and congratulate them on their achievements. We encourage them to pay it forward by mentoring others, to stay connected, and to continue
Systematic investment manager Prescient Investment Management (Prescient) has appointed Tim Terblanche as its new Head of Data Science.
Terblanche, who brings extensive experience in data science, machine learning, and cloud infrastructure, is responsible for advancing the firm’s data science strategy to further enhance its competitive edge in the investment management industry.
Alexforbes is appointing Chief Investment Officers for Institutional, Retail and Private Markets solutions. Institutional investments: Senzo Langa has been promoted to the role of Institutional Chief Investment Officer. With 14 years at Alexforbes, Langa’s extensive experience and dedication to investment excellence makes him well-suited to lead the institutional investment capabilities.
Retail investments: Gyongyi King will assume the role of Retail Chief Investment Officer. King has been with Alexforbes for 15 years and has served as Chief Investment Officer for the past eight years. King will also oversee Discretionary Fund Management, with senior members Nadir Thokan and Fay Khan joining her team. She will also assume the role of Private Markets Chief Investment Officer.
Research pillar: To better coordinate and prioritise all investment-related research, Alexforbes is establishing a dedicated research pillar within the investment team. This pillar will be led by Premal Ranchod as Head of Manager and ESG Research. Ranchod has
been with Alexforbes since 2015 and has led ESG research efforts since 2017.
Market and economics: The investments team will continue to be supported by Executive Chief Economist Mpho Molopyane and her team, providing critical economic, market and political insights. Strategic intent: A dedicated strategy function within the investments team will be led by Donovan McKay, focusing on portfolio management, investment strategy and solutions. McKay has been a senior member of the investments business since 2010, most recently heading the investments product area.
The Sanlam Umbrella Fund has appointed Mokorosi as its new Chairperson, effective 1 April 2025. This transition marks a pivotal milestone for the Fund, with Mokorosi becoming the first female to hold the position. The appointment also underscores both the Fund and Sanlam Corporate’s commitment to championing empowerment, transformation, and future-focused leadership.
utilising the programme’s network to drive ongoing growth,” said Debra Madabi, Programme Delivery Manager at Edge Growth.
The closing event was marked by engaging discussions, thoughtful reflections, and a deep sense of community among industry peers. It effectively highlighted the impact of the programme, leaving participants feeling inspired and motivated as they look ahead to the next phase of their professional journeys.
The ASISA ESD Initiative Programmes provide uniquely tailored business acceleration and developmental support that SMEs require to grow. The supplier development programmes enable funders to strategically build enterprises and suppliers that are directly aligned to their value chains.
Edge Growth specialises in developing small businesses and creating jobs and real transformation by connecting corporates and entrepreneurs, growing SMEs by addressing their key constraints: access to finance, markets and skills. Its offering consists of three service areas, designed to achieve maximum impact:
• ESD Strategy for corporates and building SMEs in their value chain
• Investing in and growing SMEs through fund management
• Scaling businesses to full potential through accelerator programmes.
Sherry Sibeko has been appointed by Miway Insurance as Executive Head for Personal Lines. Sibeko joins Miway with over a decade of experience in the insurance sector, having held key leadership roles in sales, client services, and retentions.
Paul Selibas has been appointed as EFTCorp’s Chief
Product Officer to drive future-focused payment products. Selibas plans to ensure that EFTCorp remains focused.
Weber Shandwick has appointed Larry KhumaloMacArthur as Managing Director and Market Lead for its Africa region. Based in Johannesburg, South Africa, Khumalo-MacArthur will lead the agency’s operations across the continent’s footprint of offices, affiliates and partners, covering more than 30 countries.
If one thing was clear from Minister Enoch Godongwana’s Budget Speech, it’s this: Government, like every South African employer, must do more with less.
Balancing service delivery, rising employee demands, unemployment and regulatory change, amid fiscal constraints, is a challenge no single department can solve alone.
While much debate focused on a potential VAT increase, it’s equally critical to consider how government manages its largest resource: its people. With over 30% of the national budget allocated to public sector salaries and benefits, plus R23.4bn set aside for higherthan-expected wage agreements, government stands at a fiscal crossroad. The expectation to deliver value to employees and citizens keeps rising, but so does the pressure to contain costs.
What are some of these challenges?
Today, government faces pressures like those of large corporates, but with more stakeholders to answer to, and at a much bigger scale:
Rising salary expectations versus a constrained fiscus
Rising cost of employee benefits, including benefits driven by increasing service costs
• Increasing demand for flexibility in benefits across a multigenerational workforce and multigenerational beneficiaries due to unemployment
• Compliance with new regulations, such as two-pot, NHI, and considerations for contribution holidays
The need to demonstrate value and transparency to employees and the public, especially when public confidence is low
• The need to plan for long-term liabilities like post-retirement medical funding while managing today’s expenses.
We recommend four key actions:
1
A unified, consolidated view of employee benefits and salaries
Government, as one of the largest employers in the country, could benefit from rethinking fragmented salary and benefits negotiations across sectors – from nurses and police to teachers and others. A centralised, coordinated benefits and salary strategy could enable better cost management, simpler governance, and a unified value proposition to employees. Consolidating negotiations across sectors can also reduce the cycle of repeated, sectorspecific protests and drawn-out negotiations, saving time and improving labour relations. A coordinated approach creates an opportunity for a more cost-effective benefits structure that still reflects the diverse needs of public servants but is managed under one strategy aligned with broader fiscal and service delivery goals.
There is often a public perception that government “spends too much” on salaries and employee benefits. But what is often missed is that these are not just costs, they are investments in the people who keep essential services running – including teachers educating future generations, healthcare workers providing critical care, and police and security forces ensuring public safety and order. In the context of high unemployment, and an increase in dependents on those employed, government should reframe employee benefits as value – not just for employees, but for families, communities, and the broader economy. These benefits ripple through society, supporting livelihoods, local economies and social stability. Employers need to consider employee benefits as part of a wider employee value proposition. Investing more in a broader range of benefits will have limited impact if other parts of the employee experience remain poor, for example unsafe, unprofessional, or dilapidated work environments.
Often, addressing these indirect issues can be as impactful as expanding benefit offerings. The mining sector has long understood this principle, effectively communicating how salaries and benefits sustain entire communities beyond just their workforce. Government, as the country’s largest employer, has an opportunity to do the same – to demonstrate how public sector benefits drive social and economic value for all South Africans. A shift in this approach could restore public trust, shape labour negotiations, and demonstrate the long-term value of investing in people.
3
Recognising retirement funds as employeeowned assets, not just a line item Public sector pensions are often viewed as government liabilities, but they are
employee-owned assets. Greater transparency on fund performance and investment strategies – especially in infrastructure and ESG-linked opportunities – would build trust with employees and organised labour. Regular reporting on fund performance could help public sector employees see how their savings are working for them and contributing to national priorities.
The private sector has responded to this need for transparency, aligning investment strategies with broader stakeholder value. There’s an opportunity for Treasury and the Public Investment Corporation (PIC) to align public sector pensions with national investment goals, benefiting employees and the country alike.
4 The opportunity to exemplify regulation change and its desired outcome
Major reforms, like the two-pot system and NHI, bring complexity but also opportunities for government to modernise benefits while balancing employee needs, costs, and national priorities. Government can set the standard by first applying reforms to its own employees— demonstrating real-world impact before rolling them out nationwide.
Rather than seeing reforms as a compliance burden, government can use them to build benefits that work for both employees and the country. A forward-thinking, data-led strategy can serve as a model for both public and private sector employers.
What does this mean for both the private and public sector?
As both government and private sector employers grapple with delivering more value on tighter budgets, employee benefits cannot remain a line item to control. They are a strategic tool for attracting, retaining, and engaging the workforce that keeps organisations and essential services running. For government, this means leading the way in modernising, structuring, and communicating benefits that serve today’s workforce while planning for long-term sustainability and national impact. For the private sector, it means moving beyond fragmented and transactional benefits towards integrated, purpose-driven solutions that reflect the evolving needs of multigenerational workforces.
At Momentum Consultants & Actuaries, we believe that employers, both public and private, need to start thinking about benefits as part of a broader strategy to remain competitive, resilient, and socially relevant, while considering the wider employee value proposition in making employee benefits decisions.
Are we ready to stop treating benefits as a cost and start seeing them as the strategic assets they truly are?
If teamwork makes the dream work, why carry the weight of employee benefits alone?
By Vineshree Govender Masthead Compliance Officer
Employing a representative under supervision can be both a rewarding and fulfilling experience for a financial service provider (FSP). However, due to its complexity relating to procedural requirements and recordkeeping, it can also feel like a daunting undertaking. Here we unravel its intricacies.
When should a representative be placed under supervision?
If you appoint someone as a representative who doesn’t fully meet the Fit and Proper requirements outlined in Board Notice 194 of 2017, they’ll need to operate under supervision until all requirements are fulfilled. These include:
• Holding a recognised qualification listed on the Financial Sector Conduct Authority’s (FSCA) register
Passing the Regulatory Exam for Representatives (RE 5)
• Completing relevant Class of Business (COB) training
The supervisee must have the relevant experience in the category of financial products they are registered for.
What is required to place a representative under supervision? Do I need a written agreement?
Yes – before a representative can start working under supervision, there needs to be a written supervision agreement between the FSP and the supervisee. This agreement, as outlined in Section 1 of Condition 3 of the FSCA FAIS Notice 86 of 2018, may be part of another relevant agreement or the FSP’s performance management process. Additionally, as stated in Section 2 of Condition 3, the supervision agreement must, among other things, clearly identify the supervisor and other relevant supervision information, like product categories that are being supervised and the duties and responsibilities of the supervisor and supervised representative.
How intense should this supervision process be?
There’s no one-size-fits-all answer. The intensity of supervision varies depending on factors such as:
The nature, scale and complexity of the financial services and products involved
• The assessed competency level of the supervisee
The risks to clients and the FSP
Taking these factors into account, the FSP must determine the supervision arrangement and the level of supervision intensity.
Who can fulfil the role of a supervisor?
• An approved Key Individual of the FSP, approved for the relevant Classes of Business
• A representative who has met the Fit and Proper requirements. This individual must also be approved to provide advice and intermediary services for the specific category and subcategory of products for which the supervised representative is to be placed under supervision for.
What are the responsibilities of a supervisor?
Some of their key duties include:
• Ensuring compliance with the supervision agreement
Mentoring and coaching in respect of the financial services and financial products
Reviewing and assessing the progress of the supervised representative at regular intervals, recording observations and areas for development
Keeping records relating to development and training, supervision activities, assessments and decisions to reduce the intensity of the supervision.
What are the responsibilities of a representative?
They must:
Adhere to the requirements outlined in the supervision agreement
• Disclose to clients that they are acting under supervision
• Actively pursue the completion of outstanding Fit and Proper requirements within the prescribed time limits.
How long can a representative work under supervision?
Representatives can’t remain under supervision indefinitely. The maximum duration is six years, which starts on the representative’s date of first appointment (DOFA). During this period, representatives must fulfil their Fit and Proper requirements and remain listed as a representative under supervision on the FSP’s register. Each Fit and Proper requirement also has its own deadline based on the representative’s DOFA, some of which include:
• Class of Business: One year
• RE 5: Two years
Recognised qualification: Six years.
How do I determine someone’s DOFA?
This information is on the individual’s DOFA report, which can be obtained from the FSCA. Note that DOFA, or ‘appointment date’, signifies when a representative was initially appointed by any FSP to offer financial services within a specific category or sub-category. This date remains consistent even if the individual changes FSPs or temporarily exits the industry.
Also, you can’t directly request someone’s DOFA from the FSCA. They will have to have received permission from the individual to show it to you.
If the representative holds a recognised qualification and has completed their RE 5, do I still need to place them under supervision?
Yes. This is necessary for them to gain the required experience pertaining to the specific licence sub-categories they seek approval for. They must also complete the required Class of Business, if applicable.
How should I determine the appropriate level of supervision for a representative under supervision?
The supervision agreement should outline the criteria and procedures used to assess whether a representative can work under a reduced level of supervision. Section (2)(e)(iii) of Condition 3 in FSCA FAIS Notice 86 of 2018 states that this process should be clearly defined. Additionally, Condition 7 of the Notice adds that the FSP must determine the appropriate level of supervision intensity for its representatives.
“A supervisor plays a crucial role in guiding and overseeing representatives”
This means the FSP should establish different supervision levels and specify the methods, tools and criteria used to decide when supervision intensity can be reduced. While there is no fixed number of supervision levels required, an FSP should consider at least two levels to allow for a structured approach.
What should I do if the supervised representative I’ve hired isn’t meeting expectations?
A supervisor can start by adjusting the supervision training plan to focus on areas that need improvement. Discussions between the representative and supervisor should be documented and signed off by both parties. Regular check-in meetings are crucial to monitor progress. If a supervisor anticipates a representative won’t meet a deadline, such as completing a COB, they can be removed from the Representative Register beforehand to avoid debarment. They can be added back once the requirement is met. Alternatively, representatives can apply for exemptions from the FSCA for qualification or regulatory exams. If an exemption isn’t approved by the deadline, the representative can be removed from the Register until the requirement is fulfilled or the exemption is granted. They can be added to the Register again thereafter.
By Francois du Toit CFP® PROpulsion
our value proposition isn’t static. And it shouldn’t be. As your career evolves, your business grows, and client expectations shift, your value proposition must adapt accordingly. It doesn’t matter if you are just starting out or have decades of experience, understanding how to position your offering appropriately for your career or business stage is essential for continued success.
What is a value proposition, really?
A value proposition isn’t just a statement about who you help and what you do. It’s a promise you make to clients; one you must be able to fulfil. It’s not merely about retirement planning or investment management. Your true value proposition is the emotional response it creates with clients. Does it provide peace of mind and certainty in a chaotic world, or does it create more uncertainty?
The real value
A value proposition is about the outcomes you create for clients, not the work you do for them. Too often I see websites proudly saying: “We offer [insert list of services here]”. No client gets up in the morning thinking today is a good day for some estate planning. They do get up worried if their loved ones will be okay should the unforeseen happen. What will happen to my employees? They are worried. They are concerned. And a bunch of other emotions. Your value proposition is to help them feel the right emotions for the right reasons.
The two variables
Two things will change over the course of your career. Firstly, as you gain experience and you grow your business, you will be able to offer additional as well as new value to existing and prospective clients. Secondly, your clients’ needs will change and evolve as they grow in their own career and life. So, what can you focus on?
For new advisers: Building trust
When you’re new, your biggest challenge is that people
don’t know you yet. Despite your knowledge, skills and passion, trust hasn’t been established. Your value proposition should focus on:
• Personalised attention: Emphasise your commitment to deeply understanding clients’ goals and fears. This must come through in your marketing and, more importantly, in your behaviour.
• Accessibility: Highlight your availability and willingness to guide, educate and make clients feel comfortable and informed.
Example: “Guiding mid-career professionals through their financial journey with personalised strategies and modern solutions.”
For mid-career advisers: Expanding your reach
Once you’ve built knowledge, skills and business sense, your focus shifts to expanding your client base and services. Your value proposition should emphasise:
• Specialised expertise: Consider specialising yourself or bringing specialists into your business. Specialisation attracts clients with specific problems and gives you satisfaction when helping them.
• Proven success: Provide evidence of successful client outcomes. Track how clients are progressing towards their goals and share these stories (while maintaining confidentiality) in your marketing.
• Holistic approach: Show clients their financial journey with you isn’t transactional but a wellplanned path with clear milestones.
Example: “Delivering tailored financial strategies backed by years of proven success.”
Whether you’re approaching the end of your career or considering selling your business, maintaining relevance and demonstrating continued value is critical:
• Innovative solutions: Adopt new technologies to enhance client experience and make things easier for everyone involved.
• Thought leadership: Share your knowledge not just to position yourself as a leader but to give back to the profession and support the next generation of advisers.
• Succession planning: Address both your clients’ intergenerational wealth transfer needs and their concerns about continuity of service when you eventually step back.
Example: “Leading the way in innovative financial solutions to secure your legacy.”
Common pitfalls to avoid
• Overgeneralisation: Be specific about who you help and how your approach differs from others. Vague promises disappear in the crowd.
• Neglecting client perspective: Ask clients what they’re looking for, what’s working, and what they wish you did differently. Use the wealth of data in your practice to inform your approach.
• Stagnation: Even if you’re comfortable, your clients may not be ready to stand still. Remember that business is about clients, not about you.
Technology: Your enabler
Technology is the tool that helps you do more with less, making you more efficient and winning back time. After the initial setup and training period, digital tools can transform how you deliver value to clients.
A dynamic value proposition evolves as you grow, as your clients’ needs change, and as the world transforms around us. Take time to reassess yours regularly; it’s the foundation upon which your practice builds its future.
Stay curious and keep raising the bar.
The 2025 Morningstar Awards for Investing Excellence South Africa recognised funds and asset managers that have served investors well over the long term and which Morningstar’s Manager Research team believes will be able to deliver strong risk-adjusted returns over time. There are two types of Morningstar awards: the Morningstar Category Awards and the Morningstar Best Asset Manager Award.
“Against the backdrop of geopolitical shifts and evolving markets, our analysts have carefully chosen the top performers across equity, fixed income, and multi-asset categories, leveraging Morningstar’s forwardlooking ratings to identify the leading funds for investors in South Africa,” said Tal Nieburg, managing director of Morningstar South Africa.
MORNINGSTAR CATEGORY AWARDS
Best Aggressive Allocation Fund
PPS Managed
Best Bond Fund
Truffle SCI Income Plus
Best Cautious Allocation Fund
Camissa Stable
Best Flexible Allocation Fund
36ONE BCI Flexible Opportunity
Best Global Equity Fund
GQG Partners Global Equity
Best Moderate Allocation Fund
Investec BCI Balanced FoF
Best South Africa Equity Fund
36ONE BCI SA Equity
BEST ASSET MANAGER AWARD
Best Asset Manager
NFB Asset Management
Methodology
These awards are determined by a combination of risk-adjusted medium- to long-term performance track records and Morningstar’s forward-looking rating for funds, the Morningstar Medalist Rating™, including its Parent pillar component. The Medalist Rating is set on a five-tier scale running from Gold, Silver, Bronze, Neutral and Negative at the share class level.
In the first part of the year, the financial advisory industry’s top achievers take centre stage, and it’s time to pop the champagne and celebrate their well-earned success. In this issue, we’re rolling out the red carpet for some of the award ceremonies that took place.
The 16th annual HedgeNews Africa Awards held in Cape Town in March recognised the outstanding performance of a strong line-up of 44 funds across 15 categories based on their 2024 calendar-year returns.
The Awards measure the best risk-adjusted returns of funds across 15 different categories. They are based on monthly data submitted to the HedgeNews Africa database, which includes South African hedge funds as well as other pioneering strategies applied across the broader markets. The awards ultimately go to those funds with the top return in their category, provided their Sharpe ratio is within 25% of the top Sharpe among the nominees – a method to judge consistency of returns.
The Polar Star FR QI Hedge Fund was named Fund of the Year, delivering a net return of 35.09% in 2024 on a Sharpe ratio of 3.15. It was the second trophy for the commodities-focused Polar Star, which also won in the Specialist category.
Among long/short equity funds, the industry’s biggest category, the Visio Occasio FR QI Hedge Fund was the top performer, with a return of 29.5% on a Sharpe ratio of 2.8.
In the market neutral and quantitative category, the Abax Bao NCIS Market Neutral RIF took the trophy, returning 16.26% during the calendar year, on a Sharpe ratio of 3.05.
Among fixed income funds, the Southchester Smart Escalator Prescient QI Hedge Fund was the winner for the third year in a row, with a net return of 15.99% on an exceptional Sharpe ratio of 10.92.
The Differential Gradient Prescient QI Hedge Fund took the title for best multistrategy fund in 2024, with a net gain of 25.39% and a Sharpe ratio of 1.5.
Among pan-African mandates, the winner was the Old Mutual African Frontiers Fund, with a return of 32.43% and a Sharpe of 1.55.
The Steyn Capital Frontier Fund took the title for best global fund for the second consecutive year, gaining a net 30.17% on a Sharpe of 3.07.
Among worldwide mandates, Senqu Worldwide Flexible Long Short Prescient RI Hedge Fund was another back-to-back winner, with a net return of 32.26% (Sharpe ratio of 2.14).
The Steen Partners High Equity Prescient QI Hedge Fund won for best new fund, based on funds that have launched over the past 12-23 months, with a net return of 29.04% for the calendar year on a Sharpe ratio of 2.43.
The Citadel Multi-Strategy H4 QI Hedge Fund took the title of best fund of hedge funds in 2024, with a net return of 19.31% on a Sharpe of 2.99.
In the long-term categories, the Fairtree Wild Fig Multi Strategy FR QI Hedge Fund received double honours, winning for best single manager over five and 10 years – with a return of 23.5% over five years (Sharpe 1.12) and a net annualised 17.07% (Sharpe 0.78) over 10 years.
Old Mutual Multi-Managers Long Short Equity FoHF was named the best fund of hedge funds over five years, with a net return of 14.81% on a Sharpe ratio of 1.38.
The RCIS THINK Growth QI Hedge Fund claimed the title for best fund of hedge funds over 10 years, returning a net annualised 10.14% on a Sharpe ratio of 0.74.
Above: AlexForbes took the Bonitas Top Broker of the Year Award – seen accepting the Award are (from left to right): Mohammed Jajbhay (AlexForbes), Nedine van Vuuren (Agile Alternative Business Solutions), Tracy Janssens (AlexForbes), Renila Wiese (Agile), Fazlin Swanepoel (AlexForbes), Lee Callakoppen (principal officer of Bonitas), Portia Mahlalela (Alex Forbes), Kriban Moonsamy and Jacques van der Merwe (both Agile).
The Bonitas Medical Fund Top Broker Awards – now in its third year – celebrates the brokers, financial advisers and brokerages who continue to play a pivotal role in the growth and success of the Bonitas Scheme.
“As a leader in the medical scheme industry, we have been unapologetically bold in our approach,” said Lee Callakoppen, Principal Officer. “This has allowed us to implement significant enhancements during the tough conditions faced by the medical scheme industry. It’s in our DNA to consistently improve and connect with our stakeholders. Many of you have walked a long journey with the Scheme and we value your partnership, insights and collaboration. That is what the Bonitas Broker Awards are all about – acknowledging your dedication, expertise and unwavering commitment, and thanking you for the role you have played in supporting us.”
Callakoppen explained that with the healthcare landscape evolving, the role of trusted advisors is more important than ever. “Members rely on you to navigate this ever-changing terrain. You empower individuals and corporates to make informed decisions that directly impact their health and wellbeing.”
A total of 28 awards were presented across a range of categories and tiers, each evaluated by Bonitas actuaries and independent consultants.
The 2024 winners of the Bonitas Brokers Awards are:
Bonitas Top Broker of the Year: AlexForbes
Most Sustainable Book: Avoir Corporate Healthcare
Best Net Growth for 2023: Hippo Advisory Services
New Performing Broker: Wynsam Wealth
Other winners: Timintsu Consulting Agency, Medsafu Brokers, PSG Employee Benefits, Willis South Africa, Succession Financial Planning, Liberty Group, Securitas Financial Group, Classique Medical Aid Consultants, Sanlam Life Insurance, Care Medical Aid Consultants, Mercer Marsh, Prism Employee Benefits, Curemed Health and Wealth Consultants, Moso Consulting Services, NMG, Optivest Health Services, AON, Simeka Health and ASI.
Liberty Group, Avoir Corporate Healthcare and AlexForbes took home two awards each.
By Raihan Allie Fixed Income Portfolio Manager at Truffle
Winning at both the FundHub Awards and securing your fourth consecutive Morningstar Award is an impressive achievement. What do these wins mean for Truffle SCI Income Plus Fund and its investors?
Truffle is an independent, owner-managed asset manager and we have worked hard since our inception in 2008 to consistently deliver financial success to our clients. These awards are a testimony to the dedication and ongoing commitment of the full Truffle team, and reflect the consistency of performance outcomes we pursue. For the investor, consistency of outcomes is a key aspect for a long-term beneficial relationship with Truffle Asset Management.
What key investment principles and strategies have contributed to the consistent success of the Truffle SCI Income Plus Fund?
Several principles and strategies underpin the fund’s success:
• Agile decision-making. A dynamic culture and smaller team enable frequent communication and swift execution on investment opportunities. From a fixed income perspective, we don’t chase yield or make rushed decisions. We patiently allow our investment thesis to play out, selectively adding duration when adequately rewarded for the risk.
Optimal fund size. Large funds often struggle to be selective in credit issuance. Our smaller size allows us to focus on higher-yielding, lower-risk instruments, meaningfully participate in smaller auctions, and manage liquidity more efficiently.
Integration with the broader team. Truffle’s investment team collaborates daily, sharing insights across asset classes. Our fixed income team actively engages in discussions, benefiting from in-depth credit research and broader market analysis.
Over the past year, financial markets have faced significant volatility. How has the fund navigated these challenges while continuing to deliver strong performance?
Throughout a challenging environment over the 2024 year, the fund maintained a disciplined approach with zero duration positioning and a preference for floating rate instruments. While we continuously assessed the risk-reward profile of adding duration to the portfolio, we were not prepared to sacrifice our quality credit positions for the potential short-term gains that fixed rate instruments might provide. This careful assessment proved to be the right
decision, as our credit instruments delivered consistent returns while avoiding the volatility that a duration-heavy strategy would have faced amid the moderation in the rate cutting cycle and heightened global uncertainties. The fund consistently outperformed its benchmark throughout the year, delivering strong overall returns for 2024. Our flexible approach to risk management enabled us to navigate the shifting sentiment in market conditions while maintaining a portfolio of robust assets that delivered sustainable returns.
Managing risk is crucial in fixed income investing. What approach does Truffle take to balance risk and reward while maintaining stability in the fund?
This fund aims to provide investors with consistent and low-risk returns through varying market environments. We maintain this stability through a conservative investment approach and comprehensive risk management. While we primarily hold instruments to maturity, our rigorous daily monitoring process continually assesses whether each holding warrants its place on a risk-adjusted basis. Strategic adjustments are made only when we identify superior opportunities. To maintain stability, our risk management process:
• Prioritises issuer diversification to limit concentration risks
• Employs proactive stress testing against multiple scenarios, including credit spread widening and liquidity events
Continuously monitors domestic and global macro variables
• Sets strict risk limits that are regularly reviewed and enforced.
This disciplined approach ensures the fund consistently delivers the stability and capital preservation our clients expect, with risk management embedded at every stage of our investment process.
What trends or opportunities are you currently seeing in the fixed income space, and how is the fund positioned to take advantage of them?
We’re currently observing constrained supply and compressed spreads in the local credit market, which has enhanced the relative attractiveness of offshore credit opportunities. We continue to hold quality local credit assets, however – our fund is strategically positioned for this environment – as we maintain the ability to selectively access offshore markets when they present superior risk-adjusted returns. We’re actively evaluating such opportunities to reallocate toward more compelling offshore investments.
For existing and potential investors, what key message would you like to share about the fund’s performance and prospects?
The fund has established a strong track record of consistently delivering on its primary objectives: capital preservation and steady income generation. We take pride in these results, which reflect our disciplined approach and unwavering focus.
Looking ahead, we remain committed to maintaining the Fund’s performance excellence by continuously adapting our strategies to navigate changing market conditions while staying true to our core principles and philosophy.
The FundHub Awards, a new recognition ceremony in collaboration with News24 and The Collaborative Exchange, took place in March. Kevin Hinton, founder of The Collaborative Exchange, said the new awards were designed with a single-minded purpose: “To restore credence within the industry with a programme that is modern in its approach and reflects many of the changing dynamics taking place.”
The News24 Best Overall Fund Manager went to Ninety One. The Financial Adviser Top Fund Manager Overall was Allan Gray.
The other winners were:
3 years: South African Interest Bearing – Short Term
Winner: Truffle SCI Income Plus Fund
5 years: South African Interest Bearing – Short Term
Winner: Truffle SCI Income Plus Fund
3 years: South African Interest Bearing – Variable Term
Winner: M&G Bond Fund
5 years: South African Interest Bearing – Variable Term
Winner: Sanlam Investment Management Bond Fund
3 years: South African Multi Asset – Income
Winner: PortfolioMetrix BCI Dynamic Income Fund
5 years: South African Multi Asset – Income
Winner: Visio BCI Unconstrained Fixed Interest fund
5 years: South African Multi Asset – Low Equity
Winner: Amplify SCI Wealth Protector Fund
7 years: South African Multi Asset – Low Equity
Winner: Amplify SCI Wealth Protector Fund
5 years: South African Multi Asset – Medium Equity
Winner: Nedgroup Investments Opportunity Fund
10 years: South African Multi Asset – Medium Equity
Winner: Nedgroup Investments Opportunity Fund
10 years: South African Multi Asset – Flexible
Winner: Centaur BCI Flexible Fund
5 years: South African Real Estate – General
Winner: PortfolioMetrix BCI SA Property Fund
10 years: South African Real Estate – General
Winner: Sesfikile BCI Property Fund
5 years: South African Long Short Equity – Long Bias Equity
Winner: Bateleur Long Short Prescient RI Hedge Fund
7 years: South African Long Short Equity – Long Bias Equity
Winner: Bateleur Long Short Prescient RI Hedge Fund
5 Years: Global Multi Asset
Winner: MiPlan IP Global Macro Fund
10 years: Global Multi Asset
Winner: MiPlan IP Global Macro Fund
5 years: Global Equity – General
Winner: Sygnia FANG AI Equity Fund
10 years: Global Equity – General
Winner: BlueAlpha BCI Global Equity Fund
5 years: South African Equity – South Africa General
Winner: Fairtree Equity Prescient Fund
10 years: South African Equity – South Africa General
Winner: Fairtree Equity Prescient Fund
5 years: South African Equity – General
Winner: Fairtree Select Equity Prescient Fund
10 years: South African Equity – General
Winner: Ninety One Value Fund
5 years: South African Multi Asset – High Equity
Winner: Abax Balanced Prescient Fund
10 years: South African Multi Asset – High Equity
Winner: Aylett Balanced Prescient Fund
As the world’s largest centralised exchange, Binance plays a critical role in the cryptocurrency landscape. Hannes Wessels, General Manager of Binance, highlights the platform’s dominance. “At this stage, we have about 60% of the market in terms of volumes, as well as reserves.” Binance offers a wide range of services beyond trading, including educational resources through Binance Academy and innovative payment solutions such as Binance Pay
The exchange has also been at the forefront of security and compliance, adapting to evolving regulatory requirements. “Binance continues to strengthen its position by working closely with regulators and implementing robust security measures to protect users,” says Wessels.
The cryptocurrency market has experienced dramatic fluctuations recently, marked by periods of rapid growth followed by significant corrections. This volatility has sparked both excitement and uncertainty among investors, financial advisers and regulators alike.
Wessels reflects on the market’s turbulence: “With Bitcoin, it was all going crazy at the end of last year, and everyone was very optimistic – and then it’s been up and down.” He acknowledges that 2025 has been particularly eventful, with external factors, including geopolitical shifts and economic policies, influencing market trends.
The changing market
Cryptocurrencies, led by Bitcoin, have experienced both bullish surges and corrective downturns. Wessels points out that “since last year, it has been crazy but there has also been a bit of a dip in the market”. Bitcoin saw significant growth, reaching new highs before undergoing a sharp correction. This pattern is not new; historical trends show cycles of exuberance followed by stabilisation.
A key factor in these shifts is macroeconomic policy, including changes in interest rates and global trade relations. As Wessels explains, economic uncertainty often leads to adjustments in financial strategies, impacting investor confidence in digital assets. The upcoming Bitcoin halving event is also expected to shape future market movements, with many analysts predicting a long-term bullish trend.
The rise of institutional adoption
One of the most promising developments in the cryptocurrency sector is the growing involvement of institutional investors. Financial advisers and traditional investment firms, once sceptical of digital assets, are beginning to integrate them into their portfolios.
Wessels notes that major financial institutions, such as BlackRock, have entered the crypto space with Bitcoin ETFs, setting a precedent for broader institutional adoption. In South Africa and beyond, regulatory bodies are acknowledging the legitimacy of crypto investments, further paving the way for mainstream acceptance.
The importance of education and security Education remains a key factor in driving crypto adoption. Wessels emphasises that financial advisers and investors should take advantage of available resources to understand the risks and benefits of digital assets. “We need educated individuals coming into the space because it’s an opportunity,” he explains.
Security is another major concern, with scams and hacking incidents posing risks to users. Binance has implemented stringent security protocols, including a secure asset fund to compensate users in case of breaches. Wessels advises users to stay vigilant: “Please stay within the app and don’t share your login details or passwords.”
Crypto in 2025 and beyond
Looking ahead, Binance continues to expand its product offerings and partnerships to drive crypto adoption. The company is particularly focused on integrating cryptocurrency into everyday transactions, making it easier for users to pay for goods and services with digital assets.
Wessels remains optimistic about the industry’s future, stating that increased regulatory clarity and technological advancements will contribute to a more stable and accessible crypto ecosystem. He encourages new users to start small, experiment with transactions, and embrace the evolving landscape of digital finance.
Binance Academy is Binance’s free educational platform designed to provide users with knowledge about cryptocurrency, blockchain technology, Web3 and related financial topics. It offers a wide range of learning materials, including articles, videos, quizzes and courses, catering to both beginners and advanced users. It’s easily accessible, and no sign-ups or payments are required. Content is regularly updated to reflect the latest industry trends, and complex topics are broken down into easyto-understand lessons.
“As the cryptocurrency market matures, Binance’s role as a leader in innovation, education, and security will be crucial in shaping the next phase of digital asset adoption,” says Wessels. With institutional interest rising and mainstream use cases expanding, the future of cryptocurrency looks promising, albeit with the expected market cycles of volatility and growth.
Hannes Wessels, General Manager of Binance
1. Comprehensive learning resources
• Covers topics like Bitcoin, blockchain, trading strategies, security, DeFi (decentralised finance), NFTs and more. Available in multiple languages for global accessibility.
2. Structured courses and certifications
• Offers structured learning paths, including the Binance Blockchain Fundamentals certificate. Users can take quizzes and earn certificates for completing courses.
3. Interactive learning and tools
• Features glossaries, tutorials and explainer videos to simplify complex topics. Provides a crypto tax calculator, blockchain explorer guides and wallet security tips.
4. Security and scam awareness
• Teaches best practices for securing digital assets.
Offers guidelines on recognising phishing scams, frauds, and market risks.
By Sandy Welch Editor, MoneyMarketing
In recent years, the South African cryptocurrency market has become both locally and globally competitive, with African crypto companies holding their own against international players, whether in centralised exchanges, token projects, or hardware wallets. That’s according to Tarris Arnold, Business Development Manager at Luno. “Luno paved the way, showing the demand and viability of crypto investments. Now, established financial institutions are starting to integrate crypto offerings into their platforms,” Arnold explains. He believes this trend will lead to increased adoption and innovation in the sector. Additionally, financial advisers are increasingly engaging with cryptocurrency, recognising that their clients hold digital assets. “We recently launched a tool that allows financial advisers to access customer data in a secure way, ensuring crypto is considered as part of holistic financial planning,” Arnold explains. “Many advisers are showing strong interest in this.”
“Luno offers tools like our crypto bundle, which allows users to invest in a diversified set of top cryptocurrencies with as little as R10”
What’s happening in the market?
The cryptocurrency market has experienced significant volatility in recent months, leaving investors questioning the direction of the industry. Despite hopes of entering a new golden age, market sentiment has been tempered by price suppression and uncertainty surrounding regulatory developments. According to Arnold, the past few months have not seen the anticipated price surges. Instead, the market has faced significant fluctuations, partially influenced by uncertainty over how the Trump administration intends to approach cryptocurrency regulation. “There was a lot of hype built as Donald Trump came into office, which initially fuelled excitement in the crypto market. However, since taking office, we haven’t seen the kind of policy delivery many were expecting,” Arnold explains.
The Trump administration and crypto market sentiment
Trump’s evolving stance on cryptocurrency has been a key discussion point. While his previous term was marked by scepticism, recent initiatives suggest a shift in his approach. One of the most surprising developments is Trump Media’s partnership with Crypto.com to launch ETF products. Arnold acknowledges that such a move is unprecedented for a sitting president and raises questions about its potential market impact. “It’s not something we’ve seen before, and it introduces an element of unpredictability,” he notes.
Beyond media partnerships, Trump’s administration has focused on creating a strategic crypto reserve. However, the market’s reaction to this has been mixed. “Many expected the US government to invest billions in Bitcoin, but instead, they took a budget-neutral approach and used existing holdings. That dampened expectations somewhat,” Arnold explains.
The role of regulation in market stability
The debate over cryptocurrency regulation continues. Some argue it legitimises the industry, while others fear it stifles innovation. Arnold highlights growing global regulatory efforts, with more governments engaging in crypto discussions. SA stands out as a leader in crypto regulation on the continent. New measures, including the travel rule, already familiar to Luno in markets like Malaysia, aim to enhance transparency and security.
While regulatory grey areas remain, Arnold sees progress. Regulation is moving from bans to structured frameworks, empowering investors with grievance mechanisms and platform legitimacy checks via the Financial Sector Conduct Authority (FSCA).
Luno focuses on offering a secure entry point for businesses and individuals navigating the evolving regulatory landscape. “Our goal is to ensure users can invest and transact safely,” Arnold explains.
One example is the stablecoin framework under discussion. Stablecoins are gaining popularity among businesses as a reliable financial tool, yet no clear global guidelines exist for their integration with traditional economies. The recent regulatory discussions on stablecoins indicate a move toward treating different digital assets according to their unique
properties rather than placing them under a single regulatory umbrella.
Is now a good time to invest in crypto?
Arnold emphasises a long-term approach to crypto investing. “Every time is a good time to get into the market. Sometimes prices are high, sometimes they are low, but trying to time the market is rarely a good idea. The best time to invest is always yesterday.”
Arnold encourages new investors to start small and learn about the market before making significant commitments. “Luno offers tools like our crypto bundle, which allows users to invest in a diversified set of top cryptocurrencies with as little as R10. Watching the market daily and understanding how global events impact crypto prices can be an excellent way to build confidence.”
Expanding access to emerging crypto projects
Luno has traditionally been selective about the cryptocurrencies it lists, offering a smaller range of vetted assets compared to competitors with hundreds or even thousands of options. However, the company is now expanding its selection.
“We’ve been cautious because listing a coin comes with an implied endorsement,” Arnold explains. “But after years of refining our assessment process, we’re now confident in evaluating emerging projects. We want to give South African investors access to early-stage assets, which they previously had to seek on international platforms.” This shift means that Luno plans to significantly expand its token offerings, with an ambitious goal of launching nearly 100 new tokens by the end of the year. “This will be a record for Luno and will ensure that customers have a variety of assets to suit different investment strategies, whether for payments, speculative investments, or long-term growth.”
What’s next for Luno?
Looking ahead to 2025, Luno is focusing on expanding its offerings and improving services for both retail and business clients. “We’re developing new tools to support businesses, from large corporations to small enterprises, helping them integrate crypto more effectively into their financial strategies.”
Despite market fluctuations, Arnold remains confident in the long-term trajectory of cryptocurrency. “The market is healthier than ever, and we expect major shifts in the next few years. Within five years, I believe 80% of South Africans will own some form of cryptocurrency, either directly or indirectly.”
Tarris Arnold, Business Development Manager at Luno
By Sandy Welch Editor, MoneyMarketing
While speculating on Bitcoin or Ethereum or one of the others is a way to invest in crypto, it’s not the only way to make money from the asset class. Currency Hub is a financial services firm specialising in arbitrage opportunities within the cryptocurrency space. While the company operates within the crypto ecosystem, its primary focus is not on cryptocurrency investment, but rather on utilising digital assets as an efficient vehicle for arbitrage. According to David Farelo, the newly minted CEO and cofounder of Currency Hub, “The fact that we use crypto for arbitrage is just because it’s the best vehicle for it. The speed and channels available in crypto allow for seamless execution of arbitrage strategies.”
What is arbitrage?
This well-established trading strategy exploits price differences for the same asset across different markets. Historically, arbitrage dates back to the early 20th century when traders leveraged pricing inefficiencies between the London Stock Exchange and the New York Stock Exchange to profit from gold price discrepancies. The same principle applies today in the crypto space, although with significantly greater speed and efficiency.
How the arbitrage process works
Currency Hub executes about 500 transactions daily. The process involves:
• Client onboarding: A rigorous Know Your Customer (KYC) and compliance process ensures all legal requirements are met.
• Funding the account: Clients deposit their funds with Currency Hub, which then manages the trading process on their behalf.
• Executing trades: The firm converts rand into US dollars, purchases stablecoins (such as USDT or USDC) on offshore exchanges, then repatriates the stablecoins and sells them at a premium.
• Hedging risks: “As soon as the client trades, they have no further price risk. We hedge automatically to protect them from market volatility,” Farelo clarifies.
Why arbitrage is possible in SA South Africa’s Foreign Exchange Regulations and the operational complexities of moving funds internationally make arbitrage an attractive investment solution. Farelo notes, “If
South Africa did not have a restricted currency, this arbitrage would not exist.” Years ago, the arbitrage premium sat around 20%. Today, it typically ranges from 1,5% to 1,8%, though it can spike to 4% or drop to zero, depending on market conditions.
The impact of market volatility
When the market is volatile, as it is currently, it’s often seen as a risk, but for traders, it presents an opportunity. “Any trader will tell you that volatility is good, as long as you have the right processes in place. Volatility doesn’t just mean prices going down, it also means they go up,” Farelo explains. “Traders make money through volatility, whereas investors seek stable returns.”
He also highlights the effects of currency strength on arbitrage. “A strengthening crypto market and a strengthening US dollar are both bad for arbitrage opportunities. When Bitcoin’s price rises in the US, it pushes South African crypto prices higher, compressing arbitrage opportunities. Similarly, a weakening rand can impact local crypto prices and reduce arbitrage margins.” Despite these complexities, Farelo and his team remain vigilant. “The equity market trades eight hours a day, five days a week, but the crypto market is 24/7. It’s a nonstop game.”
Risk management and compliance
Farelo emphasises that no investment is without risk. “We never tell our clients this is riskfree. There are operational risks, counterparty risks, and regulatory risks. However, we work nights and weekends to ensure our clients’ funds are protected.”
Currency Hub performs extensive due diligence on exchanges, banking partners and financial products used in arbitrage transactions. The company strictly adheres to both the letter and the spirit of South African financial regulations.
Partnering with Financial Advisers
Currency Hub also collaborates with financial advisers through a referral programme. “We much prefer working with financial advisers because they add a layer of credibility and due diligence before introducing clients to us,” Farelo states. He’s eager to collaborate with financial advisers. “If a financial adviser wants to work with me, I would crawl over broken glass to make it happen,” he says with a smile.
Where is crypto arbitrage heading?
Farelo doesn’t see crypto as “the future of everything,” but he acknowledges the efficiency of digital assets in arbitrage trading and that blockchain technology is here to
David Farelo, CEO and cofounder of Currency Hub
stay. As regulations evolve and the market matures, firms like Currency Hub will continue adapting to provide South African investors with secure and profitable opportunities.
For investors interested in exploring crypto arbitrage, Farelo advises working with reputable firms that prioritise compliance, risk management and transparency. “If any of our competitors claim this is risk-free, challenge them on that. We do everything we can to minimise risk, but true arbitrage requires expertise, discipline and a deep understanding of the financial ecosystem.”
Farelo acknowledges the importance of regulation in ensuring the legitimacy of financial markets. He believes stronger regulations are necessary for the maturity of financial products. “Regulation is there to protect investors from bad actors. Working with a regulated entity provides a level of transparency and security.”
“For investors interested in exploring crypto arbitrage, Farelo advises working with reputable firms”
The crypto space has seen a shift in how banks and regulators approach it. “We’re now seeing banks working with crypto firms more than ever before. We’ve invited regulators to visit us at any time, without prior notice, because we want to ensure transparency. I think regulators are getting smarter and adapting quicker, and some are very knowledgeable and focused on crypto.”
Currency Hub is experiencing rapid growth. “We’ve traded for as many people this year as we did in the whole of last year,” he says. While Farelo hints at new developments, he remains cautious. “There is something in the pipeline, but I’d rather wait until it’s a reality before discussing it. We are constantly innovating, adjusting to changes in regulations and refining our processes.”
Farelo explains that the world of trading requires constant adaptability, resilience and an eye for innovation. While regulation is still catching up, the crypto space continues to evolve, offering both risks and rewards. With a rapidly expanding customer base and ongoing developments, Currency Hub is poised for an exciting future.
By Ettienne Bezuidenhout Wealth Manager at Alexforbes
assing down wealth to future generations is more than just a financial strategy, it is about creating a legacy. In South Africa, where unique tax laws and estate planning regulations apply, careful planning ensures that wealth is transferred efficiently while avoiding unnecessary taxes, legal challenges or financial burdens on heirs.
wealth transfer planning matters
Many South Africans build wealth through businesses, property, investments and retirement savings. However, without proper estate planning, a significant portion of this wealth could be lost to estate duty, capital gains tax (CGT), and administrative costs. Effective planning helps preserve family assets, ensuring that loved ones can benefit without the stress of legal or financial complications.
Key strategies for wealth transfer planning
1. Estate duty and tax considerations
Estate duty in South Africa is levied at 20% on estates valued up to R30m and 25% on the excess above R30m. To minimise these costs, consider the following strategies:
• Gifting assets during your lifetime: You can donate up to R100 000 annually, tax-free, gradually reducing your taxable estate
Using trusts strategically: Trusts offer estate duty protection and a structured way to pass on wealth; they’re subject to strict tax regulations, including a 45% income tax rate and 36% CGT Leveraging spousal exemptions: Assets left to a surviving spouse are exempt from estate duty, postponing tax liabilities until the second spouse’s passing
• Using tax-efficient structures: Section 10C of the Income Tax Act provides tax relief on certain post-retirement income and estate duty, helping optimise retirement withdrawals and wealth transfer.
2. Trusts as a wealth transfer tool
Despite strict SARS regulations, trusts remain a popular estate planning tool. When structured correctly, they offer: Protection against creditors and divorce claims
• Efficient wealth distribution without lengthy estate administration
Potential estate duty and CGT savings Continuity for family businesses and investments.
However, due to the high tax rates applied to trusts, expert guidance is essential to maximise their benefits while remaining compliant with tax laws.
3. Leveraging section 10C for tax-efficient retirement income
For retirees who contributed to a retirement fund but did not receive tax deductions on certain contributions, Section 10C of the Income Tax Act offers an opportunity to benefit from these contributions:
• This provision allows retirees to reduce their taxable income after retirement, up to the amount of non-deductible contributions made during their working years
It can be offset against retirement income from annuities or against lump sums from pension, provident and retirement annuity funds
Depending on what the beneficiaries choose to do with the death benefits from a fund, any remaining unclaimed excess contributions could be excluded from estate duty.
Additional contributions can be a powerful planning tool to reduce tax liability, optimise post-retirement income and, at the same time, potentially lower your estate duty liability.
4. Drafting a comprehensive will
A well-drafted will ensures that your estate is distributed according to your wishes, preventing intestate succession laws from determining the outcome that may not align with your family’s needs. Key elements of an effective will include:
Clear instructions on asset distribution
The appointment of guardians for minor children
Naming a capable executor to administer the estate efficiently.
Regularly reviewing and updating your will as life circumstances change, such as marriage, divorce and birth of children, is crucial to keeping it relevant.
5. Using life insurance for estate liquidity
Life insurance plays a vital role in estate planning, especially for estates with illiquid assets, like fixed property or business interests. Proceeds can be used to:
Cover estate duty and executor fees
Settle outstanding debts
• Provide immediate liquidity to beneficiaries, reducing the need for asset sales
Ensuring adequate life cover helps families avoid the forced sale of valuable assets to meet financial obligations.
6. Preparing the next generation
Wealth transfer is not just about passing down assets, it is about preparing heirs for financial responsibility. This can be achieved through: Financial education and mentorship
• Involving family members in business and investment decisions
• Open discussions about wealth management to instil responsible financial habits.
Heirs who are well prepared are more likely to preserve and grow family wealth, rather than risk its mismanagement. Involving them in the planning process beforehand improves their understanding and commitment to the plan.
Intergenerational wealth planning in South Africa requires a strategic approach to minimise tax exposure, protect assets, and ensure a seamless transition of wealth. By leveraging trusts, tax-efficient retirement income strategies and proactive financial education, families can safeguard their legacies for generations to come. Consulting with a financial planner or estate specialist is essential to tailor these strategies to unique circumstances, ensuring that wealth transfer plans are both effective and compliant with South African law.
By Daniel Dos Passos Portfolio Manager, FNB
To quote Barry Schwartz from his book The Paradox of Choice: Why More Is Less: “On the other hand, the fact that some choice is good doesn’t necessarily mean that more choice is better.” Paradoxically, as financial markets and investment products evolve, it has never been easier to invest; yet, more complicated to decide on an investment.
This ‘Paradox of Choice’ scenario means there are too many investment options, which could result in uncertainty or hesitancy in making an investment decision. This sometimes leads to investors not investing at all, or being dissatisfied with their investment decisions.
However, research has also shown that the more informed or experienced an individual is, the more confident they are in making a decision, and prefer having more options. Experienced investors are more likely to make investment decisions and tend to have less dissatisfaction with any decisions made. Part of this is also attributable to the fact that experienced investors might be looking to invest in very specific sectors, themes or factors, considering their own experience and forwardlooking market expectations.
As with many things in life, we often need to consider the past and the present before making an investment decision.
A brief history of active versus passive investment management Unit trusts, or mutual funds internationally, have been a popular investment choice in South Africa for decades. Managed by professional portfolio managers, they invest in various assets on behalf of investors within an investment mandate. Given market volatility, managers often actively decide which assets to buy, hold or sell – known as ‘active’ portfolio management.
In 1976, John C Bogle of Vanguard created one of the first index mutual funds. Index funds track specific indices, a strategy called ‘passive’ portfolio management. Since then, debates over active vs. passive investing have sparked worldwide.
The first Exchange Traded Fund (ETF) was listed in the 1990s, initially as passively managed funds tracking indices. In 2008, the first Actively Managed ETF (AMETF) was introduced. South African ETFs have been on the Johannesburg Stock Exchange (JSE) for over two decades, but the first AMETF was only listed in 2023.
While active management pioneered unit trusts, passive investing led to ETFs. Now, with AMETFs on the JSE and passive unit trusts available, investors can access diverse
strategies across both. AMETFs offer intra-day trading and liquidity while maintaining active management benefits. Investors can trade ETFs directly via stockbrokers without needing an investment platform.
The way forward on active versus passive investing
As actively managed funds grew, experienced investors welcomed the increased competitiveness and choice among active managers. This allowed them to select funds or managers with different styles, strategies and philosophies, while considering investment cycles, macroeconomic views and market expectations. They understand that historical performance doesn’t always indicate future performance and that investment decisions are forward-looking.
as momentum, value, growth, capping or equal weighting, for example, with some indices including multiple factors plugged into the index calculation methodology.
As experienced investors, it is not uncommon for active managers to invest directly or indirectly into traditional or specialised indexation products and strategies for various reasons, as part of their overall strategy – as greater choice also offers increased opportunities.
Initially, passive portfolios simplified investment decisions. Instead of selecting an active manager and risking underperformance, passive portfolios typically deliver returns aligned with their benchmark, often similar to actively managed funds. While investors seek higher returns, it’s arguably easier to accept benchmark-related returns than relative underperformance.
A new world of possibility with ETFs With the introduction of ETFs, experienced investors quickly understood the benefits and intra-day trading and liquidity with reference to an underlying benchmark. ETFs tracking traditional market capitalisation indices continue to be popular due to their diversification, lower costs, liquidity, familiarity and transparency. ETF issuers also started offering products referencing various other indices, with varying exposures within a specific market or to a specific sector, and various other fundamental and mathematical factors such
However, just because some investors might have more experience, it doesn’t necessarily mean they always make better investment decisions, especially after taking into consideration the various costs associated with making an investment decision. Often, on a relative basis, simple cost-efficient investments into established traditional market benchmarks or indexation exposures can deliver better returns over the long term, although not necessarily the best. However, with ever-increasing investment options and alternatives, selecting the best is an increasingly daunting task. This is further complicated when one considers historical performance as a comparative measure, even though future performance is uncertain, and investments are also forward-looking.
As with all decisions, investors need to determine their own investment objectives, requirements and expectations. This typically requires research and potentially seeking advice from an investment professional, as part of gaining investment knowledge and experience. It is, however, important to remember that ultimately the main decision is to invest.
To quote Barry Schwartz again: “Learning to accept ‘good enough’ will simplify decisionmaking and increase satisfaction.” So, instead of being overwhelmed by the ‘over-choice’ or ‘analysis paralysis’ of making an investment decision, sometimes a simple decision that makes sense to you can be good enough and just as rewarding. After all, experience needs to start somewhere.
By Bastian Teichgreeber Chief Investment Officer at Prescient Investment Management
Financial markets are often dominated by noise – headlines, narratives, and sentiment-driven speculation that obscure the fundamental drivers of asset class returns. The ability to cut through this noise and systematically extract valuable insights is what distinguishes successful investors from those chasing fleeting market trends. At Prescient Investment Management, we firmly believe that evidence-based, datadriven investment strategies represent the future of investing. By leveraging quantitative tools, macroeconomic modelling, and systematic decision-making, we ensure that every allocation is guided by empirical research rather than subjective opinions. This philosophy extends across all asset classes, including equities, fixed income, and multiasset strategies. As John Maynard Keynes famously said: “The difficulty lies not so much in developing new ideas as in escaping from old ones.”
The investment industry remains fixated on traditional stock-picking approaches, yet empirical data consistently shows that outperformance through security selection is elusive. Instead, structural advantages lie in systematic asset allocation, enhanced indexation, and fee efficiency. A common perception in South Africa is that local asset managers struggle to compete with global peers due to the sheer scale of the global investment landscape. This assumption, however, is flawed. The reality is that beating equity markets through stock selection is difficult for asset managers everywhere, not just in South Africa. Research shows that the success rate of stock-picking strategies is consistently low across geographies, with only a small fraction of active managers delivering persistent outperformance over time. When comparing South African managers to their global counterparts, the results are equally unimpressive, underscoring the fact that underperformance is not a geographic issue, but a philosophical one. Thus, the real question is not whether South African managers can compete globally, but
“Structural advantages lie in systematic asset allocation, enhanced indexation and fee efficiency”
rather: which investment approach leads to success? Our answer is clear: a focus on systematic asset allocation, an emphasis on enhanced indexation rather than pure stock selection, as well as a commitment to low fees to minimise drag on performance. This disciplined approach applies equally well in local and global markets, demonstrating that a well-structured investment philosophy transcends geography.
While stock picking remains notoriously challenging, fixed income markets offer greater opportunities to engineer outperformance with a higher degree of certainty. This is where our systematic investment process excels. In global markets, we generate fixed income alpha through a sophisticated asset-allocation-centric approach that systematically extracts excess returns from fixed income markets.
This is particularly effective in global markets, where inefficiencies in yield curves, credit spreads, and macroeconomic factors create consistent alpha-generation opportunities. What many investors fail to recognise is that alpha is portable. Once successfully engineered in the fixed income arena, this alpha can be transferred to other asset classes, including equities. By overlaying our fixed income alpha strategies onto equity portfolios, we can construct a global equity investment framework that systematically outperforms traditional index-based approaches.
With a scientifically optimised global fixed income strategy and a robust, data-driven equity strategy, the next logical step is building a
superior global balanced fund. Our methodology follows the same systematic principles:
1. Smart asset allocation: A quantitative, macroeconomic approach to optimising allocations across fixed income and equities.
2. Consistent alpha generation: Leveraging our portable alpha framework to enhance both fixed income and equity exposures.
3. Cost efficiency: Keeping fee loads low to maximise long-term investor returns.
By focusing on a disciplined, systematic process, we have developed a suite of global fixed income funds, an equity range designed to complement and enhance index performance, and a balanced fund that integrates these components into a welldiversified multi-asset portfolio. While there is always room for refinement and learning, we believe this framework provides a robust foundation for long-term success. Our experience reinforces the idea that global investment excellence is not defined by geography, but by process. By applying data science, macroeconomic modelling, and evidence-based asset allocation, we have sought to build an investment approach that is both rigorous and adaptable. Rather than relying on speculation, we remain committed to objectivity, research, and continuous improvement. While financial markets are often noisy and unpredictable, we believe that staying systematic, focusing on the right data, and maintaining discipline gives investors the best chance at sustainable outcomes. As we move forward, our focus remains on refining our strategies, embracing innovation, and continuing to evolve in an ever-changing global landscape.
By Ray Mhere CEO of Curate Investments
Financial advisers today face a vast and complex investment landscape. With nearly 2 000 funds available locally, and hundreds of thousands more globally, finding the best solutions for clients can be daunting. That’s where we come in – to simplify the process by offering a handpicked selection of world-class investment managers tailored to meet the needs of clients.
We launched Curate Investments with a clear vision: To provide financial advisers with a carefully considered range of high-quality funds, which align with global best practices and investor expectations. Unlike traditional investment managers, we do not directly manage funds. Instead, we meticulously select top-tier investment managers from around the world, leveraging their expertise to deliver superior investment outcomes.
To curate means to care for or collect the best. It is part of our DNA to handpick the best people to take care of clients’ money.
Catering to various investor needs
Our global approach allows us to offer a diverse range of investment strategies, from fixed income to global equities, all managed by experts who align with our high standards of integrity, performance and clientcentricity. For financial advisers, this means access to a carefully selected suite of funds that meet stringent selection criteria, eliminating the need for them to sift through thousands of options. This approach not only saves time but also enhances the overall client experience.
Our comprehensive fund offering
We offer a range of funds designed to cater to various investor needs, including:
• Income funds: Designed to deliver stable, inflation-outperforming returns, which include the following funds:
Fund name Fund manager
Curate Momentum
Enhanced Yield Fund
Curate Momentum
Flexible Income Fund
Curate Momentum
Income Plus Fund
Momentum fixed income team
Momentum fixed income team
Momentum fixed income team
• Capital growth funds: Focused on medium- to long-term growth, which include the following funds:
Fund name Fund manager
Curate Momentum
Balanced Fund Visio Fund Management
Curate Momentum Equity Fund Laurium Capital
Curate Momentum Flexible Property Fund Sesfikile Capital
• Global funds: Provide exposure to global markets through top-tier investment managers, which include the following funds:
Curate Global
Sustainable Equity Fund Robeco
Curate Global Emerging Markets Equity Fund Robeco
Curate Global Value Equity Fund Lyrical Asset Management
Curate Global Growth Equity Fund Jennison Associates
Curate Global Quality Equity Fund Evenlode Investment Management
Our goal is to make the financial adviser’s job easier. We’ve identified the best investment managers, no matter where they are in the world, so they can spend less time researching funds and more time advising their clients.
Why
• Comprehensive fund range: We provide a carefully selected range of funds across multiple asset classes, ensuring diverse investment opportunities tailored to different risk appetites and financial goals.
• An advice-driven proposition: Our approach is built around supporting financial advisers with expert insights and tools, empowering them to make informed investment decisions for their clients.
• Simplicity and relevance to assist in building clients’ long-term wealth: We streamline the investment selection process by offering only the most relevant, high-quality fund options, helping financial advisers focus on growing their clients’ wealth efficiently. Independent single managers: We partner with independent, bestin-class investment managers, which bring specialist expertise and a focused investment approach, ensuring quality and transparency.
• Bringing new global investment managers to South Africa: We identify and introduce leading global investment managers to the South African market, providing local investors access to international expertise and broader opportunities.
“Our global approach allows us to offer a diverse range of investment strategies”
As the financial advisory landscape continues to evolve, staying ahead requires access to top-tier investment solutions that align with client needs and market realities. We empower advisers by delivering a handpicked selection of global investment management expertise in a simple, relevant and transparent manner.
For more information about the Curate funds, visit our website curate.co.za.
Fikile Mbhokota CEO of Satrix
he exchange-traded fund (ETF) market continues to evolve at an unprecedented pace, reshaping global investment landscapes. By the close of 2024, global ETF assets under management (AUM) hit $14.85tn, marking a 17.1% compound annual growth rate (CAGR) over the past decade. South Africa is aligning with this trajectory, witnessing mass inflows into ETFs and index-tracking investments.
South Africa’s ETF surge: A paradigm shift in investing Satrix, the dominant player in the local ETF market, captured 72.5%* of all ETF flows in 2024, while its combined ETF and indexed unit trust flows accounted for 50.5%* of total indexation flows. According to Fikile Mbhokota, CEO of Satrix**, the group experienced 127% year-on-year ETF inflow growth from 2023 to 2024, adding nearly R5bn in inflows and pushing Satrix’s AUM beyond R240bn^ as of December 2024.
This exponential growth reflects a fundamental shift: investors are embracing ETFs as core portfolio holdings, attracted by cost efficiency, transparency, and liquidity. The move toward indexation is accelerating – over the past 12 months, indexed strategies accounted for 87.8% of total industry net inflows. The structural shift away from actively managed funds highlights how local investors are recalibrating their portfolios to align with global trends.
Key global ETF trends shaping 2025 and beyond
1. Explosive growth in ETF savings plans
ETFs are becoming the default investment vehicle for long-term savings, particularly in Europe. ETF savings plans are projected to quadruple over the next five years, according to BlackRock. This retail-driven trend signals a growing demand for automated, cost-effective investing, which could spill over into emerging markets like South Africa.
2. The rise of active ETFs
Active ETFs are outpacing traditional mutual funds, particularly in the US, with a staggering $3tn flow gap in favour of
“ETF adoption in South Africa will continue accelerating.”
ETFs. This shift suggests that investors are seeking the flexibility of active management combined with the efficiency of ETFs – a trend that could see local asset managers responding with more innovative product offerings.
3. Institutional acceleration in ETF adoption ETFs are no longer just a retail investment tool – institutional investors are increasing their allocations to ETFs for their cost efficiency, liquidity, and tactical portfolio management benefits. South African pension funds and asset managers are expected to follow global institutions in using ETFs for risk management, sector rotation, and exposure to international markets.
4. Thematic and alternative ETFs gaining traction
Global ETF innovation is at an all-time high, with 1 787 new ETF products launched in 2024, a net increase of 1 234 after 553 closures. Cryptocurrency ETFs are experiencing robust asset accumulation, led by the iShares Bitcoin Trust.
5. Regulatory tailwinds supporting ETF growth Europe’s ETF market is benefiting from regulatory frameworks, boosting transparency and digitalisation.
South Africa’s ETF industry: Breaking new ground
Mbhokota concludes, “ETF adoption in South Africa will continue accelerating, driven by both retail and institutional investors seeking cost-effective, globally diversified investment solutions.” She anticipates:
• Stronger inflows into equity and fixed-income ETFs
A growing shift toward international diversification
• Increased demand for innovative, crypto and active ETFs.
As South Africa’s financial ecosystem evolves, ETFs are becoming the backbone of modern portfolio construction, reinforcing their position as a core component of investor strategies in 2025 and beyond.
*Source: Satrix and Morningstar, 31 December 2024 | ^Source: Satrix, 31 December 2024, AUM represents all assets managed in CIS vehicles (Satrix ETFs,
Some may say this is an understatement, but we are experiencing a year of significant economic uncertainty. The less certainty, the greater the financial instability, and as the International Monetary Fund so succinctly explained last year, unknowns raise the risk of financial market volatility alongside a sharp decline in economic growth.
With unpredictable macroeconomic conditions due to an escalating global trade war, potential trade disruptions (alongside overall economic uncertainty) could impact investment flows across Africa. In turn, this could lead to a significant increase in the cost of capital in international markets for local companies.
Therefore, many governments – and finance institutions – are going to have to be more strategic in their growth strategies if they want to weather this storm. Capital markets are considered one of the foremost strategic tools of economic growth, channelling funding between suppliers and those who need it most – governments, businesses, and individuals.
By Heidi Barends Head of Sustainable Finance, Absa CIB and
productivity and, of course, a better contribution to the economy.
Similarly, sophisticated capital markets offer a wide variety of financial instruments to help investors diversify their risk and manage their portfolios more effectively. They also drive liquidity, facilitating capital raising that attracts increased participation from both domestic and foreign investors. Such funding is also vital to spurring innovation and entrepreneurship, as capital markets enable corporates and entrepreneurs to actively seek and secure funding for forward-thinking projects.
There are numerous studies that show the strong correlation between the depth and sophistication of a country’s capital markets and its ability to grow. The African Development Bank, in its most recent 10-year strategy, highlights “limited access to affordable credit and underdeveloped capital markets” as one of the constraints holding back Africa’s industrial development.
It’s essential that the financial sector works together with government to accelerate capital market funding, because the benefits of a transparent and liquid domestic capital market are myriad. By issuing debt, for example, capital markets can give flexibility to growing businesses that invest in productive activities and drive future growth. This, in turn, leads to greater
According to the United Nations Economic Commission for Africa, local currency funding (or local currency bond markets) are integral to the development of broader capital markets. This allows risk to be priced appropriately and enables investors to better facilitate monetary policy transmission. Local currency financing and capital market development could, the UN says, significantly mitigate the impact of financial crises on the domestic economy, while also facilitating capital flow absorption. In simple terms, when the local currency is neglected, the human impact becomes tangible. In Kenya, electricity prices are adjusted by the Kenya Power and Lighting Company (KPLC) based on fuel prices and foreign currency fluctuations.
This is because KPLC must raise funding in hard currency to support project development. Practically, this means global uncertainty, geopolitics, and exogenous decisions determine whether some Kenyans can afford electricity. If hard currency funding were replaced with local currency funding, it would significantly insulate Kenyans from these shocks.
Contrast this with the South African Capital Market: from presidential elections to global conflicts, South Africa’s domestic bond markets have remained robust and resilient. Supply and demand dynamics in the Debt Capital Markets continue to deliver competitive pricing for borrowers and a credit-diverse set of fixedincome assets to investors, even amid global shocks. This allows South African borrowers to
Motlatsi Mthimunye Head of Investment Banking Division SA, Absa CIB
raise debt efficiently and quickly, regardless of global events.
From an Equity Capital Markets perspective, the tide has slowly turned, and positive sentiment has returned, particularly since the formation of the Government of National Unity last year. With an easing rate cycle, improved logistics, and more stable energy infrastructure, foreign funding has increased. This renewed focus on domestic equity markets is evidenced by rising issuance activity through primary capital raises, monetisation, and Initial Public Offerings (IPOs).
In the last year, Absa has executed landmark transactions on the continent in both debt and equity capital markets, from issuing the first Sustainable Bond in Botswana, opening the newly established Protea Bond market for foreign sovereigns issuing on the Johannesburg Stock Exchange (JSE), to establishing the first sustainability-linked issuance in the packaging and paper industry in South Africa.
On the IPO front, we acted on the largest IPO in Africa last year through the multioversubscribed offering and listing of a discount retailer on the Main Board of the JSE. This, alongside listing the first telecommunications company on the Stock Exchange of Mauritius, the largest ever IPO in the history of the Mauritian bourse. We also underwrote a successful and oversubscribed Rights Issue as part of a uniquely structured two-step recapitalisation plan for a listed retail client, underpinning its turnaround strategy and unlocking value for its shareholders.
We can see that deep and liquid capital markets, supported by local investors, enable corporates, state-owned companies and subnational entities to maintain their independence in decision making that ultimately supports their respective sustainable development agenda. But how can businesses, and financial institutions, support the evolution of these markets?
Absa’s focus remains on developing economies and deepening capital markets on the continent by supporting product development, issuance activity and investor mandates.
This, while working hand in hand with regulators on improving access and transparency in domestic capital markets. As a pan-African bank, we remain committed to advancing capital market development across the continent through innovative financial solutions. In times of uncertainty, the collaboration between governments, corporates, and financial institutions will be central to shaping a future where capital markets serve as a catalyst for economic resilience and prosperity.
South African investors continue to seek offshore exposure amid local market volatility and a weakening rand. However, the increasingly complex global political, economic and regulatory landscape presents new challenges for both investors and financial advisers. Investors want reassurance that their offshore investments can deliver strong returns at a reasonable cost, while advisers must navigate these complexities.
To help meet this need, Morningstar Investment Management South Africa has launched the Morningstar Global USD Funds. The fund range, comprising the Global Cautious Fund, Global Balanced Fund, and Global Growth Fund, delivers institutional-quality global diversification in an accessible format, leveraging Morningstar’s global investment process and research capabilities.
“More than ever, local investors are looking to externalise their assets across geographies and asset classes globally, seeking greater diversification and long-term stability in their portfolios,” said Rone Swanepoel, Head of Sales at Morningstar Investment Management South Africa. “For advisers, access to truly global funds has become a necessity to remain competitive in an industry where client expectations are evolving rapidly.”
Mike Coop, CIO at Morningstar Investment Management EMEA, says the company has more than 400 investment professionals across 28 countries and access to data on over 300 000 mutual funds and 12 000 ETFs. “This depth of research gives us the ability to uncover investment ideas that others may overlook, tapping into our multi-asset research, equity analysts, credit specialists and ESG experts. Our teams work collaboratively across time zones to bring the best thinking to every fund we manage,” says Coop.
Sean Neethling, Head of Investments in South Africa for Morningstar, adds: “It is not just about finding opportunities. It is also about being able to act on them. These funds allow us to be nimbler in volatile markets. We can combine broad exposure via passive instruments where it makes sense, and then lean into highly rated active managers when the opportunity arises.”
This hybrid approach is reflected in how Morningstar currently manages exposures: from overweight positions in underpriced regions like emerging markets and Latin America, to deliberate underweighting of crowded themes in overvalued US tech. Risk is actively managed through scenario testing and peerreviewed decision-making, ensuring no single shock derails a portfolio.
Delivering better outcomes in a volatile world
“Our portfolios are built to withstand cycles and deliver smoother long-term returns,” says Coop. The funds offer:
• Tax efficiency – Capital gains tax applies only upon exit
• Cost-effective access – A blend of active and passive instruments optimises costs
• True diversification – Exposure spans equities, fixed income, and select alternatives.
Neethling notes that cautious mandates are especially attractive: “Our Global Cautious Fund offers a 3.5% starting yield – highly compelling for retirees.”
Staying the course with confidence
“There’s never a perfect time to invest, but it’s never a bad time either,” says Debra Slabber, Director: Portfolio Specialist. “History shows well-diversified, actively managed portfolios lead to better outcomes.”
Available on platforms like Ninety One, Allan Gray Offshore, Glacier International, and more, these funds equip advisers with essential tools to navigate today’s evolving markets.
This Freedom Month, financial advisers can inspire confidence, guide meaningful conversations and empower their clients to thrive by helping them take control of their financial destinies. It’s the opportunity to remind them that true freedom begins with a plan, a journey toward a life where money doesn’t dictate choices but supports dreams.
Financial advisers play a pivotal role in shaping the financial futures of individuals and families, acting as the architects of financial freedom. It’s all about helping clients to build wealth, secure their futures and unlock the ability to live life free from financial stress. This month is a unique opportunity to inspire and guide clients by focusing on three critical pillars: smart goal-setting, savvy investment strategies and the art of passing wealth through generations.
A well-crafted financial plan isn’t merely a collection of numbers on a spreadsheet; it represents the potential for a life lived on one’s terms. It empowers individuals to identify their aspirations and transform them into actionable plans that bring lasting financial independence.
A strong financial foundation begins with clear and realistic goalsetting. It’s up to the adviser to help clients articulate what financial freedom means to them, whether it’s retiring comfortably, funding their children’s education or travelling the world without constraints. The specificity of these goals provides clarity and focus, acting as a roadmap to guide financial decisions.
“It’s up to the adviser to help clients articulate what financial freedom means to them”
This month is the perfect time for financial advisers to encourage clients to financial goals that are specific, measurable, attainable, relevant, and time-based. Precise objectives make progress tangible and motivate disciplined action.
Building wealth with savvy investment strategies
It’s essential for financial advisers to educate clients on the importance of starting early and embracing long-term investment principles. By focusing on solid, well-researched opportunities and the power of compounding, investors can see their wealth grow steadily. Use this month to contact clients, in the name of financial freedom, to encourage them to revisit investment portfolios, assess performance and make adjustments where necessary to fortify their financial positions.
True financial freedom encompasses not just living well in one’s lifetime but setting up loved ones for success in the future. Advisers can help their clients plan for smooth wealth transfer by discussing wills, trusts and estate planning strategies. Through open communication and a clear plan, families can avoid misunderstandings, protect their assets and ensure their values are passed down alongside their wealth. Freedom Month is an opportunity to emphasise the importance of preparing for tomorrow, ensuring that loved ones benefit from a client’s hard-earned success.
Living life unconstrained by money
Ultimately, financial freedom isn’t about amassing wealth for the sake of it, it’s about enabling the life we envision. Financial advisers are instrumental in reshaping the narrative of financial planning, framing it as a gateway to living without limitations.
By Sandy Welch Editor, MoneyMarketing
Across the global investment landscape, the pressure on fees continues to mount. Investors face multiple layers of charges, from investment managers and administrators to advisers and platform fees. As Tobie van Heerden, CEO of 10X, explains, “There’s been significant pressure on the overall fee that an individual pays, particularly through the advice route.”
The logical starting point in reducing costs is asset management fees. “The asset manager is the first place where fees can be squeezed. But that squeeze becomes difficult to justify for a manager who can’t demonstrate alpha,” says Van Heerden. The rise of passive investing has been a natural consequence, as advisers and portfolio managers seek cost-effective beta-building blocks to drive returns.
“93% to 95% of your return is derived from the beta you choose, not the individual stocks,” he adds. “If you have the right betas in your portfolio, you’ll perform exceptionally well.”
The global shift to passive investing
In the US, passive investing has surged, now accounting for 53% of total assets. This is partly due to the tax advantages of ETFs, a benefit not available in other regions. However, the trend is gaining traction elsewhere, with index funds representing 28% of assets in the UK, Europe, and Asia, and 10-11% in Africa.
“This growth is still in its early stages, and the opportunity remains substantial,” says Van Heerden. “For us, it’s not about arguing the active vs passive debate – it’s about offering cost-effective investment solutions tailored to clients’ risk profiles.”
Strategic positioning in a changing market 10X has positioned itself as a solutionsdriven firm rather than a product-pushing asset manager. “We build strategic asset allocation solutions using index building blocks, sometimes incorporating active investments or private markets if the client’s risk budget allows,” Van Heerden explains. Unlike competitors focused on selling low-cost funds or thematic investments, 10X takes a long-term view, avoiding shortterm fads. “We work with clients to deliver outcomes – whether that’s CPI plus five or three with no capital loss – aligned with their risk and return expectations.”
Technology as a competitive advantage Technology is at the heart of 10X’s operations. “It’s not just about having technology; it’s about how you integrate it,” says Van Heerden. “We don’t see technology as a separate department, it’s embedded in our business through cross-functional teams.”
10X has dedicated squads focused on user journeys, automation and optimisation. “We’ve built a technology platform – Nexus – that underpins our intermediated solutions business. It ensures efficiency, reduces human error, and improves client experience.”
This approach extends beyond digital platforms. “Even in our investment process, our tech team collaborates with the investment team to build tools they use daily. The result is a product that’s seamlessly integrated with technology.”
The impact of strategic acquisitions
A key milestone for 10X was its acquisition of CoreShares. “It was a seamless integration,” Van Heerden recalls. “The deal was signed, and within three months, we were fully operational.” CoreShares had a strong foundation in ETF manufacturing, which 10X leveraged to enhance its intermediated solutions business. “At the time of acquisition, CoreShares managed R9bn. Today, that figure stands at R28bn, just two and a half years later. That’s the power of strategic reengineering and growth.”
The South African opportunity
While global markets face political and economic uncertainty, Van Heerden remains optimistic about South Africa’s prospects. “Compared to the US, France and the UK, South Africa stands out with a strong democratic system and significant private equity inflows.” He draws parallels to India’s economic rise under Modi. “It’s not about perfection; it’s about moving in the right direction. The balance of probability is in our favour.”
However, challenges remain. “Greylisting, immigration policies, and infrastructure need attention. But it’s not about fixing everything at once – just doing fewer things wrong can lead to meaningful improvements.”
One area of concern is potential tax changes in unit trusts. “If unit trust taxation is applied monthly, it will be operationally difficult for administrators and could complicate investment structures,” warns Van Heerden. Beyond regulatory issues, industry ethics remain a concern. “There are bad actors
exploiting investors under the guise of professionalism.
Regulators and industry bodies must step up to protect clients and maintain trust.”
The future of wealth tech
10X continues to evolve as a technologyfirst firm. “We don’t just use AI, blockchain, and tokenisation as buzzwords. These technologies are deeply embedded in our processes,” says Van Heerden. “For us, being a wealth tech business isn’t about having a robo-adviser; it’s about how we analyse data, acquire customers, and simplify financial solutions.” The company has moved away from traditional tech ecosystems, opting for a diversified stack that allows greater agility. “A true wealth tech business doesn’t just buy technology; it integrates it into every aspect of its operations. That’s what differentiates us.”
The investment landscape is evolving, driven by pressure on fees, the rise of passive investing, and the integration of technology. For financial advisers, the challenge is to adapt to these shifts while maintaining a focus on client outcomes. As Van Heerden puts it, “It’s not about selling products, it’s about delivering tailored, cost-effective solutions that align with clients’ long-term needs. That’s where the future of investment advice lies.”
Key takeaways for financial advisers:
1. Fee compression: Investors are demanding lower costs, pushing firms to focus on efficient portfolio construction.
2. Passive investing growth: With passive strategies dominating global markets, advisers must reassess their investment philosophies.
3. Strategic portfolio design: Success hinges on selecting the right beta exposures rather than chasing stockpicking alpha.
4. Technology integration: True wealth tech firms embed technology into every aspect of their business to enhance efficiency and client experience.
5. Long-term perspective: The most successful advisers focus on sustainable, outcome-driven strategies rather than short-term trends.
By embracing these shifts, financial advisers can stay ahead in an increasingly competitive and technology-driven investment landscape.
The non-life insurance industry in South Africa has successfully completed the second year of the Retiree Repurposing Programme, an initiative that brings together experienced retired professionals and young insurance managers to facilitate skills transfer and industry knowledge sharing.
This programme is a collaborative effort between the South African Insurance Association (SAIA), the Insurance Sector Education and Training Authority (INSETA), the Insurance Institute of South Africa (IISA), and the Financial Intermediaries Association (FIA). Funded by INSETA, the initiative provides a structured 12-month mentorship experience designed to address the persistent shortage of critical skills in the industry by ensuring that valuable technical, leadership and management skills are passed down to the next generation of professionals.
Passing the torch
The non-life insurance industry continues to face significant skill gaps in key areas such as marine, engineering, agricultural crop insurance, reinsurance and general technical insurance business lines. The Retiree Repurposing Programme aims to bridge these gaps by connecting young professionals with seasoned industry veterans who can provide mentorship, technical expertise, and leadership guidance.
The 2024 programme paired eight retired insurance professionals with 18 mentees working across six core areas of the nonlife insurance industry. By participating in this initiative, mentees gained hands-on experience, industry-specific knowledge, and access to leadership insights essential for accelerated career development.
Keeping the industry thriving
Pamela Ramagaga, the SAIA General Manager: Insurance Risks, emphasised the importance of such initiatives in sustaining industry growth with a transformation element, by intentionally investing in the developing of future leaders. “A critical challenge in the insurance industry is ensuring that the extensive knowledge of retired experts is not lost. At the same time, we have emerging professionals eager to advance in their careers but who require this mentorship programme for breakthrough in their respective careers. Through this intentional structured coaching and industry approach, the programme provides a scalable model or framework to bridge the development of future leadership while preserving institutional knowledge and expertise.
By fostering mentorship and collaboration, we are strengthening the industry’s foundation and creating opportunities for sustainable growth. The insights and experience shared by our retirees do not only help mentees build their confidence but also equips them with the skills necessary to tackle complex industry challenges. The long-term impact of this initiative will be evident in the leadership pipeline the industry is building today. We look forward to expanding the programme to reach even more professionals in 2025, the registration is open for the next cohort intake, and we have already received a significant number of applications for both mentors and mentees across the various lines of business.”
Benefits for all
SAIA, together with its partners, is encouraged by the impact of the programme’s second year and looks forward to expanding its reach.
With funding for the 2025-2026 programme cohort, pending final confirmation from INSETA, discussions are underway to potentially double the number of participants for this next cohort.
The programme project manager, Gerhard Genis, highlighted the advantages mentees experienced during the programme. He noted that participants benefited from direct knowledge sharing, enhanced professional development, increased confidence, and exposure to senior industry figures. “One of the greatest benefits of this initiative is that it allows mentees to gain real-world insights from experienced professionals who have spent decades in the field. The programme not only accelerates their learning but also helps them navigate complex industry challenges with greater confidence. Through this mentorship, we are fostering the next generation of industry leaders, ensuring that vital expertise is retained and passed on effectively.”
Speaking at the 2025 graduation event, Sizwe Mashinini, a mentee, shared his experience: “Before joining the programme, I was navigating my career without a clear direction. I had technical knowledge but needed guidance on how to apply it strategically. Through mentorship, I not only refined my skills, but also gained the confidence to take on more responsibilities. This structured support and industry programme has been instrumental in shaping my career path.”
Throughout the programme, mentors and mentees focused on key aspects of their respective fields, identifying crucial areas where additional expertise was required. “The mentorship experience provided me with realworld applications for my knowledge, helping me bridge the gap between theory and practice. It has given me a fresh perspective on how to approach industry challenges and career growth,” Mashinini added.
Ylaney Ramlall, another 2024 mentee, reflected on how the programme shaped her professional journey: “This experience has been transformative. Mentorship has not only given me deeper technical insights but has also helped me develop confidence and resilience in navigating industry challenges. Learning from an experienced professional has enabled me to bridge the gap between theoretical knowledge and practical application. The Retiree Repurposing Programme has empowered me to make meaningful contributions to my field while refining my career path.”
Registration for the 2025 Retiree Repurposing Programme are open. Interested candidates can apply through SAIA for this opportunity to gain invaluable industry insights and mentorship.
For more information visit: saia@fticonsulting.com
By Sean Hanlon Executive Director at BrightRock
As a financial adviser, you can play an invaluable role to help ensure financial sustainability for your client through a needsmatched product that is unique to them. But how much income protection cover is enough, and how should it pay out?
Current financial analysis tools consider a client’s current income, expected annual inflation, and the time they have left before they retire to determine a suitable lumpsum amount that represents the present value of the client’s financial need for the remainder of their working life. Capital disability cover that pays out a single lump-sum amount is still the most widely sold solution in the market for income protection needs. However, structuring this cover to meet the client’s needs at the claim stage is not that simple.
Lump-sum products are not always suited to the client’s actual needs, especially as the client’s needs may change. In the case of a client becoming permanently disabled without any impact on their life expectancy, they will face the very real prospect of not having enough money for the full duration of what would have been their incomeearning years, if they can’t invest this onceoff payment to generate the income they need. If the lump-sum amount falls short or investment returns are unfavourable due to adverse market conditions, this could mean years or even decades without enough to live on.
Lump-sum cover also generally contains significant premium waste, as it is structured to keep growing at a set rate for a set period, even though clients’ income needs until they retire decrease in line with the number of pay cheques they still expect to receive. While the lump sum suggested by the Financial Needs Analysis (FNA) tool is accurate at the time of purchase, after a period, it simply does not match the needs of a client. Lump-sum cover also groups various insurance needs
into a single cover amount, not considering the fact that the underlying needs being covered are different and exist for differing terms. For example, a lump sum will be in place until a client is 65, but some of the needs it covers – such as a mortgage bond or children’s educational costs – would exist for a far shorter period. Because of this, clients end up paying more from day one for cover they don’t need for nearly as long. The cost of insurance can be significantly decreased, if each need is covered appropriately for the correct term.
The importance of financial advice
Everyone has different circumstances that are distinct from the next person. Their lives, needs and the people they love and want to protect all vary.
This is why financial advisers play such a crucial role. The ideal situation is to have insurance products that are designed to empower a client and financial adviser, that can enable the cocreation of the most suitable money solutions.
The importance of offering flexibility and choice
Our industry needs to develop more sophisticated quoting systems, analysis tools and risk protection solutions that not only calculate a lump sum, but can ensure that a
client correctly allocates their incomeprotection cover to the different needs that are important to them.
Just as clients allocate their monthly income to different financial needs within a manageable household budget, they should be able to cover their childcare needs, debt repayments, and general household expenses through a sophisticated income protection solution.
A client should, with the help of their financial adviser, be able to control when and for how long they require cover for certain needs. By determining the appropriate periods that cover is required for and then matching the cover precisely to the client’s income protection needs over time, advisers can help clients remove waste, making cover affordable, while ensuring that clients’ needs are taken care of, at the right time. In addition, clients should have the flexibility at claim stage to choose between receiving a capitalised lump sum or an equivalent recurring payment, depending on their expected prognosis and financial situation at the time. These are some of the key principles that underpin BrightRock’s approach to protecting our clients’ income needs.
“Clients end up paying more from day one for cover they don’t need for nearly as long”
Or will it be let down by traditional life insurance products that don’t match your clients’ needs?
As a highly skilled financial adviser, you know that every financial plan is carefully designed to meet your client’s needs today, and as their life changes. BrightRock’s needs-matched life insurance lets you create a product solution that precisely matches the financial plan you’ve crafted for your client.
Take, for example, claim-stage choice* – an industry first. At claim stage, when your client better understands their medical condition, they can choose between a lump-sum or a recurring pay-out for their income protection needs. Or they might even want to choose a combination of both. Because it is impossible to predict their future needs today.
Only with needs-matched life insurance do you have unrivalled flexibility and efficiency, so that your finely crafted financial plan becomes an enduring masterpiece in your client’s hands.
Get the first ever needs-matched life insurance that changes as your life changes.
*Terms and conditions apply
By Michele Jennings Chief Executive, glu
The financial services industry is at a turning point – one that calls for a shift from traditional transactional models to an ecosystem built on shared success. glu is leading this change by embedding Profit-Share at the core of its Mutuality-driven approach. More than just a financial model, ProfitShare is a value-added benefit that prioritises collective prosperity, ensuring that both Members and Financial Advisers benefit from their partnership with glu.
At its core, glu’s Profit-Share model is redefining financial engagement by enabling its Members to share in the business’ success. Unlike traditional providers, where profits stay with shareholders, glu empowers its Members to benefit from their collective contributions. This fosters financial security, a sense of belonging and trust – reinforcing the value of being part of a community that works together.
“This alignment of interest fosters trust, loyalty and sustained relationships”
Financial services have long been perceived as passive, one-sided engagements where policyholders contribute but rarely see the direct benefits of their participation. glu is challenging this norm by shifting the dynamic from a static financial relationship to a rewarding partnership. Members are no longer just policyholders; they are co-beneficiaries belonging to an ecosystem designed to thrive on transparency, shared value, and mutual success.
Financial Advisers are integral to glu’s vision. The Mutuality model enhances their ability to build longlasting, meaningful relationships with Members by shifting the focus from transactional engagements to a model based on Financial Togetherness ™. Advisers are trusted partners who are focused on their Members’ financial wellbeing.
This alignment of interest fosters trust, loyalty and sustained relationships, making it easier for advisers to support Members through every stage of their financial journey. glu’s digital-first approach provides an enhanced experience by streamlining administrative tasks, allowing advisers to focus on value-adding financial guidance rather than paperwork.
Features such as seamless onboarding, straightthrough processing for standard life policies, and an intuitive adviser portal ensure that advisers can dedicate more time to member interactions.
In a world where financial services are often seen as complex and impersonal, glu is proving that Mutuality and innovation can work together to deliver a rewarding financial experience for all.
By Reo Botes Managing Executive at Essential Employee Benefits
The healthcare and medical insurance landscape in South Africa is at a turning point. The next decade will be defined by how well organisations adapt to change, innovate, and meet diverse healthcare needs amid economic pressures, regulatory reforms, and technological advancements.
The National Health Insurance: Challenges and opportunities
The rollout of National Health Insurance (NHI) aims to provide universal healthcare but presents challenges such as funding constraints, infrastructure gaps, and its impact on private healthcare. Product suppliers will need to innovate, offering complementary products that enhance NHI services. Insurers can remain relevant by aligning with the NHI framework through top-up or specialised coverage options. Success will require collaboration between government, private insurers, and healthcare providers.
Addressing affordability and accessibility
Healthcare must not be a privilege. With stark income inequality, affordable and flexible solutions are essential, particularly for temporary and gig workers. Microinsurance and tiered plans will allow individuals to scale coverage as their financial situations improve. Beyond affordability, shifting from reactive to preventive care is crucial. Healthcare is no longer just about hospital visits but about maintaining wellness. Wearable tech, wellness programmes, and incentives for preventive care can lower claims while fostering loyalty and trust.
Technology and innovation in healthcare
Technology is reshaping healthcare.
Telemedicine, solidified during the pandemic, improves access to care, especially for remote and mobility-challenged patients. AI and automation enhance claims processing and fraud detection, while blockchain offers transparency and efficiency in data sharing.
Employers are becoming key players in healthcare, with employee health benefits increasingly seen as a necessity for attracting and retaining talent. Mental health support, employee assistance programmes, and tailored group schemes will be critical. Product suppliers
and advisers must support these initiatives with innovative offerings.
The growing importance of mental health
Mental health is gaining overdue attention. Including mental health services in insurance offerings is both a business imperative and a social responsibility. The challenge lies in making these services accessible and affordable while addressing societal stigma.
Corporate South Africa’s role in shaping healthcare
Regulatory changes, including stricter oversight by the Council for Medical Schemes (CMS) and Financial Services Conduct Authority (FSCA), demand greater transparency and fairness. Adjustments to medical scheme tax credits could impact affordability, requiring proactive industry adaptation.
Intermediaries must evolve beyond selling policies to becoming trusted advisors who educate clients on long-term healthcare value –especially younger generations unfamiliar with its importance.
Key trends shaping the industry
• Hyper-personalisation: AI-driven policies tailored to individual health profiles and evolving risks
• Integrated ecosystems: Seamless collaboration between insurers, healthcare providers, and tech platforms
• Real-time policy adjustments: Usage-based models adapting premiums based on health metrics
• Mental health tech: Digital platforms for online therapy, counselling, and self-care tools
• Sustainability in healthcare: Digitisation and virtual healthcare adoption
• Microinsurance expansion: Affordable coverage for gig workers and underserved groups
• Blockchain in healthcare: Secure, transparent management of records and claims
• Corporate wellness programmes: Employerdriven health initiatives, from screenings to gamified wellness challenges.
The future of healthcare and medical insurance in South Africa is both challenging and full of opportunity. Adaptability, collaboration and innovation will be key to success. Product suppliers that prioritise affordability and clientcentric solutions will thrive. Corporate South Africa must play its part in shaping a healthcare system that adds real value to people’s lives.
The 2025 Budget had some good news about lessening the tax liabilities for South Africans seeking career, business and lifestyle opportunities abroad.
Government’s intention to expand its tax treaty network and renegotiate some existing treaties to double taxation agreements (DTAs) is a welcome step, as these treaties are one of the key enablers for mobile South African taxpayers looking beyond borders for career opportunities, investment prospects, and international lifestyles. DTAs protect expatriates from double taxation in multiple jurisdictions, ensure full tax compliance, and at the same time prevent tax abuse.
South Africa currently has DTAs in place with 73 countries, preventing double taxation of expatriates residing overseas. The importance of expanding on the current tax treaty network can be supported by the latest Henley Private Wealth Migration Report, which ranks South Africa among the top 10 countries globally in terms of projected net outflows of millionaires for 2024, with a projected 600 net millionaire outflow. Many South African expatriates choose to relocate to Isle of Man, Guernsey, Jersey and other Channel Islands, and tax treaties negotiated with these jurisdictions during the expansion as announced in the Budget will be beneficial to those South Africans.
Expats who form part of the global mobile community must not be under the misconception that one’s tax liability ends only because you live and work outside of South Africa. South Africans who have left South Africa on a temporary basis and do not want to permanently cease tax residency under financial emigration have the option to cease their tax residency on a temporary basis by making use of the DTA provisions in countries that already have an existing agreement with South Africa.
In his Budget Speech, Finance Minister Enoch Godongwana highlighted the importance for all South African taxpayers to remain fully tax compliant. This
applies to all taxpayers, whether residing in South Africa or abroad. The Minister’s remarks came against the backdrop of an estimated R16.7bn shortfall in revenue collection in the 2024/25 financial year, against what was foreseen in February 2024. The South African Revenue Service (SARS) is expected to collect R1.846tn in revenue in FY2024/25.
“A larger number
tax treaties means more opportunities for individuals to work and invest
Double tax treaties are agreements between two countries designed to avoid the problem of individuals or companies being taxed on the same income in multiple jurisdictions. In the absence of such agreements, South Africans who earn income from abroad may be liable to pay tax both in South Africa and the country in which the income is sourced. These treaties help mitigate the risk and tax liability by allocating taxing rights to the country of residence and/ or the country where the income is generated, based on the taxpayer’s tax status. The treaties cover critical types of transactions and forms of income, including interest, pensions, dividends, royalties, and capital gains, providing relief from double taxation.
South Africa’s tax treaty network has grown significantly in recent years with the intention, expressed in the Budget Speech, to address non-compliance by further expanding the treaty network. An expanded tax treaty network provides substantial benefits. A larger number
of tax treaties means more opportunities for individuals to work and invest internationally, with reduced concerns over double taxation. This can also make South Africa a more attractive destination for foreign workers, investors, and businesses, knowing that their tax liabilities can be more easily managed.
1. Ceasing tax residency on a non-permanent basis: DTA provisions provide a valuable opportunity for those abroad to cease their South African tax residency on a non-permanent basis, preventing them from being taxed by South Africa while they are living and working outside the borders of South Africa. This relief is favourable for those South Africans working and living abroad on a temporary basis. For as long as they reside abroad, the DTA may be applied as ongoing relief, with a need to be evidenced annually.
2. Tax relief and certainty: Double tax treaties provide clear guidelines on which country has the right to tax specific sources of income. This ensures that South African taxpayers working abroad aren’t subjected to multiple layers of tax, significantly reducing their overall tax burden.
3. Increased international mobility: With fewer tax complications, South Africans can pursue international career opportunities, move abroad, or even invest without fearing significant tax penalties.
Overview of All DTAs and Protocols
Tax treaties play a pivotal role in making international mobility easier and more cost-effective, offering tax relief and clarity for individuals and businesses. South Africans have more opportunities to expand their international footprint without the worry of double taxation. As the treaty network continues to grow, the future looks bright for South Africans looking to make their mark on the global stage.
With Alexforbes, no matter your investment destination, you’re in the right place. You’re in
Every investment is personal, filled with purpose and expectation.
Tremendous time, effort and sacrifice goes into every rand that builds towards your organisation’s investment destination, which means that choosing the right investment partner matters just as much.
The right partner who knows how to find, assess and select only the best investment minds, locally and globally. A place where you have no doubt that you’re in safe hands, and where any investment solution is possible.
