It’s essential to not only understand your clients’ unique financial goals and challenges but also to offer tailored strategies that align with their needs and aspirations.
Pg 12
BECOMING A FINANCIAL ADVISER
With a lack of Financial Advisers in South Africa, it’s essential to promote the profession and encourage others to join.
Pg 13-15
EMPLOYEE BENEFITS
Thoughtfully crafted benefit packages help employees feel valued. We investigate what employers need to take cognisance of in the year ahead.
Pg 16-21
BOUTIQUE ASSET MANAGERS
Smaller asset management firms play a key role in the investment ecosystem and the economy. Find out the plans this section of the industry has for 2025.
Pg 22-25
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Employee benefits: Trends, flexibility and legislative challenges
By Sandy Welch Editor, MoneyMarketing
The employee benefits landscape is evolving rapidly, with technology playing a central role in streamlining processes and improving accessibility. From faster claim settlements to AI-driven solutions and digital communication strategies, these advancements are reshaping how employees engage with their benefits.
Employers and employees alike are closely watching trends that have shaped the past year and what lies ahead. MoneyMarketing spoke to Natasha HuggettHenchie, Consulting Actuary and Director, and Trevor Kingsley-Wilkins, Principal Consultant, both from NMG Employee Benefits, to find out what they expect from the year ahead.
Two-pot’s impact continues
“The two-pot retirement system was monstrous last year, significantly impacting the industry and NMG,” says Kingsley-Wilkins. “We believe the industry has handled the transition well. At NMG we paid out R650m and processed approximately 48 000 claims. This underscores the significant demand and engagement with the new system,” he says. Looking forward to 2025, a continuation of the trend is expected, particularly in January and February, due to school fees. It’s also anticipated that individuals who have not yet claimed will do so in the new year. “As the tax year finished and a new one starts, members will regain access to their funds, potentially leading to another surge in claims. We are not expecting claims to be as overwhelming as the previous year.”
Members who delay their withdrawals may wait until the funds accumulate to a reasonable level, which could lead to increased activity around May, June or July. However, it is anticipated that many will claim their funds as soon as they become available.
Legislative changes and challenges
The legislative landscape is expected to undergo adjustments, with refinements to the two-pot legislation addressing unresolved technical details. The anticipated introduction of the Conduct of Financial Institutions (COFI) Bill remains a work in progress, with no confirmed implementation date. “While March was initially suggested, it remains uncertain if this timeline will be met,” says Huggett-Henchie. Additionally, member benefit projections and other regulatory frameworks,
such as conduct standards, are expected to gain renewed attention in the coming months. Specific areas of focus include clarifications regarding late payment interest calculations for employer contributions.
Addressing the barriers
Despite advancements in financial products, such as modern retirement annuities, legislative restrictions persist. Employees are still unable to transfer funds freely between employer-sponsored plans and personal accounts, creating barriers to financial mobility, says Huggett-Henchie. Many in the industry are hoping for future regulatory reforms to introduce a system similar to Australia’s, where employees contribute to a chosen fund regardless of employer changes, ensuring continuity and flexibility. It’s a space to watch.
The role of medical aid
Another pressing issue is the introduction of the National Health Insurance (NHI) system, which has prompted medical aid providers to develop low-cost, accessible healthcare solutions. The viability of the NHI in its current format remains uncertain, with industry experts questioning its feasibility and timeline. “Employers and benefit consultants are increasingly exploring packaged solutions that combine healthcare and financial wellness offerings, such as affordable medical aid plans coupled with funeral cover,” says Huggett-Henchie.
Another issue is that many employees remain unaware of all the benefits available to them, such as critical illness cover, which provides financial support in times of health crises without requiring drastic lifestyle changes. Proper education from consultants can lead to a growth in awareness and engagement. “Gap cover, which addresses the shortfalls in medical aid plans, is gaining traction,” says Kingsley-Wilkins. “While it often requires proactive promotion, once adopted by employers, it sees significant uptake.”
Gradual contribution strategies
Setting up a new fund can be daunting, especially for businesses with a large workforce due to the immediate impact on payroll expenses. It is essential to understand that benefit implementation does not have to be an all-or-nothing process. “Employers are encouraged to adopt a phased approach, starting with smaller contributions and gradually increasing them over time. This strategy helps prevent sudden reductions
Better benefits are better for business
At Liberty, we know that care makes a difference. By investing in your employees’ health, growth and satisfaction, you build a thriving workforce. We’re here to support your company’s growth with bespoke retirement advice and tailored employee benefits. Secure your employees’ risk, investments, and well-being with Liberty Corporate Benefits and see #TheCareEffect in action.
Speak to your Financial Advisers, email us on lc.contact@liberty.co.za or search Corporate Benefits.
Continued from previous page
in employee take-home pay and ensures a smoother transition to long-term financial planning,” says Kingsley-Wilkins.
Employers can take over existing funds or introduce new plans in phases to align with their financial capabilities and workforce readiness.
“An option is to consider the opt-in process, as not all employees may immediately participate,” he explains. “A gradual rollout allows for better planning and financial management, ensuring the success of the benefit offering.” Employees should be given the option to contribute incrementally, such as half a percent at a time, making it easier for them to adjust to deductions.
More focus on funeral cover
One good entry product is funeral cover, which should be an essential component of any employee benefits package, and it is often affordable on a group basis. “Many individuals already have funeral policies through their bank accounts, mobile service providers, and retail stores,” says Kingsley-Wilkins. “However, these often come at a significant cost. By offering funeral cover through an employer, employees can access better coverage at a lower cost. A comprehensive funeral plan, potentially with extended cover, is a no-brainer for employers seeking to support their workforce effectively,” he explains. “It ensures that employees do not face financial burdens in the event of a loss, reducing absenteeism and financial stress.”
Leveraging technology
The role of technology in modernising employee benefits cannot be overstated and companies that have embraced technology are seeing tangible results. It is helping to streamline processes and enhancing accessibility. Previously, accessing benefits often required employees to visit physical offices or wait for lengthy administrative processes. However, with digital systems in place, employees can now submit claims remotely via web platforms or WhatsApp, reducing logistical challenges and improving efficiency.
“More than 50% of claims at NMG last year were submitted digitally. This shift enables financial institutions and employers to build comprehensive databases with accurate and upto-date contact details,” says Kingsley-Wilkins.
“A critical focus is encouraging members to engage more actively with their retirement funds,” says Huggett-Henchie. “Two-pot helped with this, and further efforts are being made to encourage members to use available platforms to monitor benefits and projected statements.” Even individuals without personal devices can benefit from technological advancements. For example, in some cases, family members such as grandchildren assist older individuals.
Targeted communication
Gone are the days of lengthy, generic documents that employees must sift through to find relevant information. “With real-time digital communication, organisations can now target employees with specific messages based on factors such as age, gender, and employment status,” says Kingsley-Wilkins. For example, an employee approaching retirement can receive personalised updates on pension plans, while younger employees can be guided on financial planning strategies.
The role of AI
AI is gradually transforming the employee benefits landscape. While not yet fully optimised, AI-driven chatbots are already being used to facilitate onboarding processes and address employee queries. These innovations improve efficiency, reduce administrative burdens and enhance the overall employee experience. Although the adoption of AI is still in its early stages, the industry is moving towards greater automation and customisation, ensuring that employees receive seamless support tailored to their individual circumstances.
Flexibility and open architecture
One of the key aspects of the envisioned future is increased flexibility and open architecture
in benefit structures. “Many current systems face administrative and legislative restrictions that hinder adaptability,” says Kingsley-Wilkins. Removing these hurdles will allow for a more personalised approach to employee benefits.
Compulsory participation
A significant challenge in the industry is ensuring widespread participation in retirement and benefit schemes. While compulsory preservation has been introduced through recent legislative changes, the next step is to implement compulsory participation. This initiative aims to ensure that every working individual is enrolled in a fund, creating a safety net that will benefit the nation in the long term. The concept of compulsory participation was initially introduced in policy discussions around 2021, coinciding with the introduction of the two-pot retirement savings system. “Implementing this in this country remains challenging due to the diverse workforce composition, including informal sector workers and migrant labourers,” says Kingsley-Wilkins.
Building a culture of engagement
Beyond technological advancements, creating the right company culture is vital for the success of employee benefit initiatives. A commitment to transparency, education and accessibility ensures that employees are well-informed and empowered to make sound financial decisions. “Achieving a meaningful impact requires dedication and passion. The goal is not just to provide benefits but to foster an environment where individuals feel supported and valued,” says Huggett-Henchie.
Looking ahead
The evolution of employee benefits is an ongoing journey that requires collaboration between industry stakeholders, policymakers and employees themselves. While challenges exist, the vision for a more inclusive and efficient system remains strong.
For more information on Employee Benefits, see pages 16-21
T
he employment landscape has undergone a seismic shift since Covid-19. Employees demonstrated that the traditional 9-to-5 office routine wasn’t the only path to productivity. They proved they could deliver results, maintain efficiency and achieve a better work-life balance without wasting hours in traffic. Many realised they could, in fact, have it all.
Yet, despite compelling evidence to the contrary, employers worldwide are pushing for a return to the office. The outdated notion that employees need constant supervision still lingers, ignoring the success of remote and hybrid work models. It feels as though we conducted the greatest workplace experiment in history – employees passed, but their achievements are being disregarded. A sense of restlessness has emerged – there’s a growing demand
for a new way of working. Companies looking to attract and retain top talent must recognise this shift. Employees now seek flexibility, better benefits such as healthcare and retirement plans, less micromanagement, and greater autonomy. In 2023, ‘quiet quitting’ became a trend, where employees disengaged without formally resigning. By the end of the year, ‘loud quitting’ gained traction –workers leaving in a more vocal and deliberate manner.
Now, more than ever, retaining skilled employees is critical. This is especially true in tech and other specialised fields where talent shortages persist globally. Businesses must rethink their approach to employee benefits and workplace culture. Providing meaningful incentives and fostering a supportive environment isn’t just an option – it’s a necessity.
Sandy Welch Editor, MoneyMarketing
Kanyane Matlou
Deputy Chief Investment Officer, Terebinth Capital
How did you get involved in financial services – was it something you always wanted to do?
In high school, my strengths were in maths and science, but I knew that I didn’t want to go down the conventional career path like engineering (confirmed by a school excursion to an open cast coal mine). I had developed an interest in watching lunchtime business updates on television and remember enjoying documentaries on corporate takeovers; the BBC programme Blood on the Carpet, which aired on SABC, used to be a favourite. The intrigue drove me to opt for a Bachelor of Business Science degree after high school. I thoroughly enjoyed my courses in finance and made up my mind that I wanted to be in financial services after graduation.
What was your first investment – and do you still have it?
My first stock purchase was Sasol. The high-level investment case was easy to follow from a macro perspective as a proxy for the oil price within the SA market, where there are not too many peers. I no longer hold the investment, having liquidated it when I had assessed its valuation to be full, given some of the idiosyncratic issues the company faced.
What have been your best –and worst – financial moments?
Sasol features yet again. Having built enough conviction at the height of the Covid pandemic that the collapse in the oil price and the Sasol share price was too severe and baked in way more negative news than was justified, I put a sizeable stake on the counter and kept my nerve through the volatility to be subsequently rewarded when the world and markets normalised. The worst moment would probably be one where I did not act on my conviction. I had done my homework on Tesla and built up a decent investment case for myself, but at the last minute I hesitated and decided not to action it. It was a key lesson in not overthinking, and drove home the point that ‘pulling the trigger’ is a key attribute to develop as an investor.
What are some of the biggest lessons you have learnt in and about the finance industry?
Research is the lifeblood of an investment house. There is no substitute for hard and deep work. The most successful money managers are those who allocate an extensive amount of their time doing research and fully interrogating their ideas; and having done so, going on to ensure these ideas are properly reflected within client portfolios. Ongoing probing and testing of investment cases is just as important. To paraphrase Ken Griffin of Citadel, the core of what we do is research, and investing is how we monetise that research.
What makes a good investment in today’s economic environment?
A good investment is one that is aligned with one’s goals in terms of timeframe and risk appetite – there is no one size fits all. But whatever one’s individual goals/circumstances, you can hardly go wrong if you go for an investment that is not expensive (stretched valuation), and one that is not fad – where you do not understand the drivers behind its performance. An investment that provides steady real returns on a medium- to longterm view is ideal. If it is a company, it is key that it has previously delivered peer-beating earnings growth, that it has good quality assets, and it has a moat. It should have a management team that is excellent at allocating capital, and can strike the right balance between ambition and discipline so that the company can weather tough times and do well during the good times.
What finance/investment trends and macroeconomic realities are currently on your watchlist?
The next four years are likely to be shaped by Trump’s second term and his desire to reassert America’s global dominance. The one area of uncertainty is how aggressive he will look to go in this endeavour. But also about how the rest of the world responds, especially the Global South, which has looked to
challenge Western hegemony in recent years. Consequently, the geopolitical realignment can be potentially significant. The implications for climate policy and whether net zero remains an objective for the developed world would have meaningful implications for the globe and the markets, especially commodities.
What are some of the best books on finance/investing that you’ve ever read – and why would you recommend them to others?
Two books I read just after leaving university reconfirmed my love for this industry: Nassim Taleb’s Fooled by Randomness and Gregory Zuckerman’s The Greatest Trade Ever. Taleb is an exceptional thinker and imparts key investment lessons in an accessible way; Fooled by Randomness explores the distinction between skill and luck in investing and the reasons why we may confuse the two as people (and investors). The Greatest Trade Ever demonstrates the handsome payoff to be had as a result of undertaking research, building conviction, and staying the course despite the thesis not playing out in the short term, to eventually reap great benefit due to exercising patience.
Investing in 2025: Prepare for change, embrace disruption
“With rising geopolitical risks and continued global economic volatility in 2025, maintaining resilient portfolios is key to withstanding economic shocks and limiting capital loss,” says Truffle Asset Management CIO Iain Power, who manages the Amplify SCI* Wealth Protector Fund. Rather than reacting to every shift, resilient managers embrace change as an opportunity to grow and position themselves ahead of the curve, says Erik Nel, CIO of Terebinth Capital and manager of the Amplify SCI* Strategic Income Fund. “Resilience is about maintaining clarity and discipline in decision-making. It’s about having a vision that is adaptable but anchored in long-term values and goals.”
Amplify Investment Partners’ top fund managers highlight key strategies for resilient investing in 2025.
Diversify your portfolio
Spreading investments across uncorrelated asset classes – equities, bonds and property – reduces exposure to single-market events, stabilising portfolios in volatile markets. Hedge funds further smooth volatility and provide long-term capital growth.
Embrace an asymmetric mindset
Loss aversion causes investors to experience losses as more painful than gains of the same size. To counteract this, adopt asymmetric
investment strategies that protect against downside risks while capturing maximum upside potential. Hedge funds can enhance returns by managing risk effectively.
Stay invested for the long term
Market timing is nearly impossible. According to Abax Investments, over the last 1 250 trading days, the FTSE/JSE All Share SWIX TR ZAR delivered 63% cumulative returns. Stripping out the top 10 trading days, the return drops to just 4%, proving that staying invested through volatility is critical.
Prioritise quality investments
High-quality companies with strong balance sheets and consistent earnings are more resilient during downturns and recover faster. Such investments contribute to overall portfolio stability.
Rebalance regularly
Adjusting asset allocations after major market shifts ensures alignment with long-term financial goals and risk tolerance, rather than reacting emotionally to short-term volatility.
Think rationally, not emotionally
Market turbulence often triggers fear-based decisions. Stick to a well-informed investment strategy to avoid impulsive moves that could harm long-term gains.
EARN YOUR CPD POINTS
The FPI recognises the quality of the content of MoneyMarketing’s February 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
Turn volatility into opportunity
Instead of fearing market swings, use them to rebalance and capture value. Nimble investment managers leverage volatility to strengthen longterm performance.
Look beyond traditional assets
Hedge funds offer diversified strategies beyond stocks and bonds, using long/short equity, derivatives, and alternative investments to cushion against downturns.
Leverage rand-cost averaging
Investing a fixed amount regularly reduces the risk of entering the market at a peak, allowing investors to buy more when prices are low.
Build an emergency fund
Keeping liquid cash reserves prevents the need to withdraw investments during market downturns, protecting long-term growth.
Adopt a resilient mindset
Volatility is normal – patience and strategy outperform panic. Successful fund managers are nimble, adaptable, and proactive in seizing emerging opportunities.
By employing these principles, investors can navigate 2025’s uncertainty with confidence, ensuring long-term wealth protection and growth.
By Florbela Yates Managing Director of Equilibrium
Blending investment management and technology
As a discretionary fund manager (DFM), we try to narrow the gap between investment management and advice. A DFM needs to understand the way financial advisers segment their clients and give advice. We then build solutions that cater to their clients’ specific needs.
Using behavioural finance
We have been using technology to provide a better form of analysis for advisers and their clients. In the past, investment managers and financial advisers may have not spoken as much, but now we spend a lot of time trying to understand each other’s worlds and analysing the impact of different investment decisions on the client’s investment journey.
Paul Nixon, our Head of Behavioural Finance, uses client data to analyse the experience that different markets have on how a client behaves. The learnings from this have helped us to show financial advisers the impact different markets have on different types of clients and how to keep clients invested.
Most clients don’t achieve their investment outcomes because of their switching behaviour, which we call ‘behavioural tax’. For example, this can happen to a conservative investor invested in a portfolio with a level of risk they are not comfortable with. So, when markets are volatile, they become anxious and disinvest. By disinvesting when markets are down, investors lock in a loss. And they probably don’t get back into the market until there’s good evidence that the market has risen. They therefore lose out on the upside as well. Some of the tools we have at our disposal make it easier to understand the individual investor and their behaviour.
Using technology in portfolios
We also use technology to analyse the holdings in the portfolio and how the manager gets to those holdings. The different strategies of the asset managers impact how the returns in each of the funds are felt by the investor. Therefore, there are two things we try to do. Firstly, we get true diversification in the portfolio. We use tools to look back through different market cycles to see how it panned out for that fund and the impact it would have had on both returns and any portfolio drawdowns.
New appointments
New appointment at Prescient Surette Drew has been appointed as Senior Equity Trader at Prescient Securities.
Drew brings over two decades of experience to the role, having held senior positions at HSBC, Tlotlisa Securities Pty (Ltd), and Standard Equities. Drew’s appointment to Prescient Securities’ trading desk reflects the firm’s commitment to diversity. Drew holds a BCom Honours in Financial Management from Rand Afrikaans University and has completed several professional certifications. She is also a member of the South African Institute of Stockbrokers.
Ninety One’s new appointments
Justin Jewell has been made Portfolio Manager to the Ninety One DM Specialist Credit team. Jewell will join Darpan Harar as Co-Portfolio Manager on Multi Asset Credit (MAC) and Global Total Return Credit (GTRC) and will focus on the expansion of the Developed Market Specialist Credit platform. Jewell will be
based in London. Prior to joining Ninety One, He was Managing Director and Head of European High Yield at RBC BlueBay Asset Management (RBC BlueBay). He has a BSC in Economics from the London School of Economics.
Alper Kilic has been appointed by Ninety One as Head of Alternative Credit. He will be responsible for building upon the current successful Emerging Market Alternative Credit platform, as well as continuing to develop a broader set of investment solutions for clients. Based in London, Kilic will lead the team of over 40 investment professionals. Prior to joining Ninety One, Kilic was Global Head of Project and Export Finance (PEF) at Standard Chartered Bank. He has an MBA from the University of Dallas and a BSc in Metallurgical Engineering and Material Science from the Middle East Technical University in Turkey.
New MD for Business Partners Limited
Small business financier Business Partners Limited has appointed Jeremy Lang as its
We also look for diversified sources of alpha (outperformance of the benchmark). Technology allows us to do that much more easily. In the past, when building a portfolio, you would look at cash, fixed income, equities, and listed property. Today, we have many alternative sources of alpha to include in our portfolios. For example, in our international portfolios, we have a manager who invests in music royalties, with a good stream of income.
When constructing a portfolio, you either need a very big team to analyse the data or you need technology – but you probably need a combination of both.
At Equilibrium, our solutions can help your clients achieve their investment goals through personalised portfolios. Our unique advice-led model portfolios are designed to be efficient and optimised through market cycles, so your clients stay invested. We become your investment management team, and therefore, an extension of your practice. Because partnering with you to enable your advice outcomes is our business.
Equilibrium Investment Management (Pty) Ltd (Equilibrium) is an authorised financial services provider (FSP32726) and part of Momentum Group Limited and rated B-BBEE level 1.
new Managing Director. Lang takes over from Ben Bierman, who will be retiring after more than 35 years of service. During his tenure, Bierman steered the company to extend support to an increasing number of small and medium enterprises (SMEs) across South Africa.
Beiersdorf appoints new MD for Southern Africa
Genasha Naidoo has been appointed as Managing Director for Beiersdorf Southern Africa, effective October 2024. With over eight years of dedicated service at Beiersdorf, Naidoo brings a wealth of experience and a deep understanding of the company’s operations and value. Naidoo began her journey with Beiersdorf as the Sales Director for Southern Africa in 2016 before being appointed as Regional Sales Director Africa, Middle East, Asia and ANZ and, most recently, she served as General Manager for Beiersdorf in Turkey. Her leadership reflects Beiersdorf’s commitment to empowering women in senior roles.
Genasha Naidoo
Jeremy Lang
Justin Jewell
Surette Drew
As an independent DFM, we empower you to prioritise your clients and business growth with our optimised, advice-led solutions.
By Sean Munsie Fund Manager of the Allan Gray Stable Fund
TStriking an appropriate balance between risk and return
he last quarter of 2024 saw more muted returns from the local equity and bond markets as they digested the outcome of the US presidential election in November and the latest actions from central banks, all while concerns regarding growth prospects in the world’s largest economies persisted. Globally, equity markets fared similarly, except for the United States where the benchmark indices have continued to hit fresh all-time highs. Interestingly, this is in stark contrast to the performance of US Treasuries, whose yields have risen markedly since the US Federal Reserve began its rate-cutting cycle.
The standout performer among local asset classes in 2024 was government bonds, with the FTSE/JSE All Bond Index returning 17.2% for the year as yield differentials, or risk premiums required by investors to hold the country’s debt, narrowed versus both the US and emerging market peers.
Similarly, buoyed by the outcome of South Africa’s national elections, shares with greater exposure to the domestic economy were among the best performers on the JSE in 2024. The FTSE/JSE Financials Index, comprising mostly banks and insurers, gained 22.4%, while retailers and other select local industrials performed even stronger. The overall FTSE/JSE All Share Index returned 13.4%, its strongest showing since its post-Covid bounce in 2021.
For the most part, the rally to date has been driven more by a sentimentbased multiple rerating, from a depressed base, as opposed to a widespread positive uptick in earnings growth. For investment gains to be held and advance into a multi-year recovery, it is crucial that progress is made in addressing structural inhibitors to growth in the country. The fleeting returns seen during ‘Ramaphoria’ remain fresh in investors’ minds, helping to explain why foreign investor flows into our equity market – important ‘new money’ – have remained on the sidelines thus far. The prolonged suspension of loadshedding has been a crucial step, but as always, caution is needed –particularly where undue optimism has run ahead of fundamentals.
Thus far, the raft of stimulus measures announced by the Chinese government in September have fallen short of the scale required to reinvigorate the residential property market, with prices continuing to fall into year end. As the largest store of household wealth, this has a significant impact on the consumptive side of the economy, which the government sees as the longer-term engine of economic growth. Despite the prevailing environment, prices for commodities with significant exposure to Chinese demand have not fallen as much as expected. For example, iron ore was down 27.2% but remains above US$100 per tonne, and copper was up 2.7% for the year – potentially an indicator that further downside may be ahead before a bottom in the market can be called with any confidence.
The rand, together with most currencies, has fared poorly against the US dollar since the US elections, weakening by 9.1% over the quarter. Market breadth in the US, which now accounts for approximately 70% of global equity market capitalisation, has rarely been narrower. We remain concerned over valuation levels in certain parts of the global market and what this may mean for near-term absolute returns if large valuation discrepancies begin to unwind.
It is worth mentioning – against an environment in which the interest ratecutting cycle has begun – persistently high cash rates may present a hurdle for conservative investors who want long-term returns ahead of cash, as well as a high degree of capital stability. It is important that the appropriate balance is struck between the risk and return required in meeting and surpassing this hurdle, especially in an environment of uncertainty, both locally and offshore. An allocation to hedged equities and cash serves a dual purpose in this regard, providing protection as well as optionality.
Arguing for life insurance as part of the joint estate
By Dr Rika van Zyl, CFP®, FPSA®, TEP UFS School of Financial Planning Law
On the issue of dealing with a life policy (with no nominated beneficiary) at death in a marriage in community of property, there are two schools of thought. Some would accept the case law which states that such a policy does not form part of the couple’s joint estate. Numerous authors of textbooks and articles argue, however, that a life policy does form part of the joint estate. The results can have drastic consequences for the spouse in getting half of the proceeds of the policy or perhaps not seeing a cent of it.
In terms of family law, a merging of estates takes place in a marriage in community of property upon marriage into one joint estate that includes all property and debts, where the spouse becomes co-owners on an undivided and indivisible half share. Although it is not common, there may be a separate estate of the spouses of property that does not fall into the joint estate (governed by legislation) if, for example, an inheritance was received where the will expressly provides that it should not form part of the joint estate, or delictual damages is paid to one spouse. Life policies are not listed as an exclusion in the Matrimonial Property Act.
“The results can have drastic consequences for the spouse in getting half of the proceeds of the policy or perhaps not seeing a cent of it”
In an insurance contract, the insurer undertakes the risk of death, in return for a premium, to render the insured a sum of money on the happening of death. In the law of contract, death is seen as a time clause (not a condition as death is certain to happen, just not when). The insured has the obligation to pay the premium and has the concomitant right to the proceeds at death. Even though the enforcement of the payment of the proceeds is postponed, the rights (also to name a beneficiary, to cede etc.) already vest at the conclusion of the contract. It is therefore the policyholder’s asset at the conclusion of the contract and should fall into the joint estate of persons married in community of property, as it is not excluded by legislation. The premium will consequently also be paid out of the joint estate.
Despite these legal rules, recent case law hangs on to an argument made in Hees NO v Southern Life Association Ltd 2000 (1) SA 943 (W) and Danielz NO v De Wet 2009 (6) SA 42 (C) that the policy proceeds do not fall into the estate because the proceeds are only paid after death and does not exist prior to death. They argue that there is supposed to be a separation of rights in the policy and the entitlement of the proceeds. The court concludes in Maqubela v the Master 2022 (6) SA 408 (GJ) (also relied on in Naidoo v Discovery Life Ltd 2018 ZASCA 88) that the proceeds never formed part of the joint estate.
The arguments made in these cases cannot be supported based on the legal principles and foundations explained above, and there is a great need for courts to reinvestigate this issue.
Time is the greatest gift of all. And we all want more time to spend on the things that are important to us. Whatever those things may be, the good news is that if you invest early, time gives you money. And then, money gives you more time to spend on the things you love. Speak to us to make the most of your time. Call Allan Gray on 0860 000 654, or your financial adviser, or visit www.allangray.co.za. Money isn’t everything. Time is.
Financial service providers (FSPs) shoulder the responsibility of keeping their clients informed about changes made to financial products by product providers. However, staying abreast of continual product adjustments can be a challenge.
Who is responsible for keeping clients informed about product changes?
FSPs have a fiduciary duty to act in the best interest of their clients. Under the Financial Advisory and Intermediary Services (FAIS) Act and the Treating Customers Fairly (TCF) Outcomes, they are required to provide clear, honest and diligent advice, including promptly communicating any changes made by product providers.
For example, TCF Outcome 3 requires that customers be given clear information and are kept appropriately informed before, during and after point of sale. Moreover, TCF Outcome 5 states that customers be provided with products that perform as they have been led to expect, and Outcome 6 ensures customers should not face unreasonable post-sale barriers.
When it comes to product changes, FSPs are responsible for:
• Timely communication: Inform clients about any product changes promptly. This includes explaining the nature of the changes and their potential impact on the client’s financial goals.
• Guidance and alternatives: Offer guidance on potential alternatives if the product changes negatively affect the client’s financial strategy.
Clarity and understanding: Ensure clients fully understand the changes and their implications. This can involve detailed discussions and personalised explanations.
Common issues faced by FSPs
Properly updating clients about changes implemented by product providers is easier said than done. FSPs face several challenges, including:
• Lack of information: In some cases, product providers fail to inform FSPs
and their representatives of changes. Representatives may only become aware of changes after scrutinising policy wording themselves, or when a claim is denied. Clients often blame the FSPs, leading to reputational damage and potential loss of clients.
• Volume of changes: Keeping up with the sheer volume of changes to products and policies is increasingly difficult. FSPs need to inform clients of changes, offer guidance and alternatives, and ensure clients understand the implications, which can be burdensome in an already complex compliance environment.
• Client misunderstandings: Ensuring clients fully grasp the implications of changes can be time-consuming and challenging.
Practical solutions
To effectively manage these challenges, FSPs can adopt the following strategies:
• Invest in staff training: Regular training and education on regulatory updates and product provider changes are essential. Product-specific training must be completed and assessed each time there are changes to the features of a product.
• Implement robust compliance systems: Embedding strong compliance systems and policies in your FSP can help you track product provider communications and changes, as well as how these updates are communicated to your clients.
• Enhanced communication: Use multiple communication channels such as emails, newsletters and face-to-face meetings to ensure clients are well-informed. Utilise technological tools for secure and efficient communication to streamline the process.
Change on the way
Currently, it can be a little unclear who is ultimately responsible for informing clients of product changes, but this task often falls to FSPs. The upcoming Conduct of Financial Institutions (COFI) Bill aims to rebalance this responsibility between financial advisers and product providers.
Existing legislation requires product providers to equip and provide advisers with timely and accurate information and advice on their products. They should offer FSPs training and support; clearly communicate any changes, including special terms, conditions and exclusions; and monitor and assist in resolving customer complaints to ensure fair outcomes. COFI is expected to offer even greater clarification on the responsibilities of product providers in this regard. This is also more consistent with the outcomesbased TCF principles that follows the whole product lifecycle.
Clear communication
FSPs bear the primary responsibility for keeping clients informed about changes to products or policies – and they play a vital role in ensuring consumers are aware of these updates.
Staying current with these changes can be challenging, but FSPs must take the necessary steps to fulfil this responsibility. Implementing robust compliance policies and procedures in their businesses will help them stay updated, understand how changes affect their clients, effectively communicate these changes, and provide advice on alternatives, if necessary.
Maintaining open communication with product providers is essential for FSPs to stay informed. And if a product provider repeatedly fails to communicate changes effectively, FSPs must consider whether continuing to offer products from this product provider is worth the hassle and administrative burden, and how it may negatively impact the financial adviser’s TCF outcomes and reputation.
About Masthead (Pty) Ltd
Masthead has been assisting financial service providers (FSPs) and other business sectors throughout South Africa since 2004, with practice management services and compliance monitoring of FAIS, FICA, POPI and NCA, so they can stay in business, improve productivity and prosper. Today, we are the leading compliance services provider to FSPs in South Africa, and we cherish our excellent relationships with all the major stakeholders in the financial services industry. We have a national footprint, and with six regional offices, we can effectively deliver consistent and uniform support across the country. For more information, visit www.masthead.co.za
“Legislation requires product providers to equip and provide advisers with timely and accurate information and advice on their products”
By Francois du Toit CFP® PROpulsion
Training financial advisers for an AI-integrated future
Every week, I talk with financial advisers who tell me how they feel about artificial intelligence (AI). Many are excited about what AI could do for their practice, but they’re also a bit nervous about learning to use these new tools. This mix of enthusiasm and uncertainty is completely natural when facing such a significant change in how we work.
Why does this matter and how can we help you succeed in a world where AI is becoming part of everyday work in financial services?
Why your current skills need an update
You’re already brilliant at helping your clients. You understand their needs, give them solid financial advice, and build lasting relationships. These skills will always be valuable, but today’s clients expect more. They’re becoming increasingly comfortable with digital tools (regardless of their age) and want to know their adviser is using the best available technology to help them manage their wealth.
Think of it this way: if you could spend less time on paperwork and more time talking with clients, wouldn’t that make your job more rewarding? That’s where AI comes in. It can handle many time-consuming tasks, giving you more time for what really matters – helping your clients achieve their financial goals. Many advisers find they can double their client interaction time once they’ve mastered basic AI tools. We experience this in our own business too.
Understanding AI’s business impact
You don’t need to become a technology expert. Instead, think of generative AI as a helpful skilled assistant that can help you build a more profitable and sustainable practice. Here’s what that means:
Practice growth and innovation
Generative AI excels at creating unique, engaging content that can help you reach new clients and deepen relationships with existing ones. Imagine having an assistant that could generate fresh ideas for client events, craft compelling thought leadership pieces, or design targeted marketing campaigns – all while maintaining your unique voice and professional standards. Practices can grow their client base by leveraging these capabilities effectively.
Operational excellence
The most successful practices use AI to streamline their operations and improve profitability. From automating routine communications to generating comprehensive business reports, AI can handle time-consuming tasks that traditionally eat into your business development time. We reduced administrative work by 40% by implementing a combination of AI tools and automation, allowing us to focus on strategic business growth.
Better client experience
Today’s clients expect personalised service at scale – something that was nearly impossible before AI. Generative AI can help you create customised client communications, develop targeted service offerings, and identify opportunities for practice expansion. This level of personalisation, combined with your expertise, creates a compelling competitive advantage.
Making the business case
Investing in AI capabilities isn’t just about keeping up with technology; it’s about building a more valuable practice. Consider these points:
• Businesses using AI effectively report 25-35% improvement in operational efficiency Client satisfaction scores increase
when advisers spend more time on relationship building
• Early adopters are seeing significant competitive advantages in client acquisition
• The cost of not adapting may be higher than the investment required to change.
Responsible implementation
As you integrate AI into your practice, maintaining professional standards is crucial. This means:
• Being transparent with clients about how you’re using AI to enhance your service
Ensuring all AI-generated content aligns with your professional obligations
• Protecting client confidentiality and data privacy
Using AI to augment, not replace, your professional judgment.
Next steps for your business or practice
Start by identifying one area where AI could have the biggest impact on your practice’s growth. Perhaps it’s content creation for business development, or streamlining client onboarding processes. Begin there, measure the results, and expand gradually.
Consider joining a community of forwardthinking advisers who are sharing their AI implementation experiences. Learning from others’ successes and challenges can accelerate your own progress. We’re seeing the most successful practices taking an iterative approach – starting small, measuring results, and scaling what works.
Your journey toward building an AI-enhanced practice starts with a single step, and we’re here to help you take it.
Stay curious and keep raising the bar.
10 tips to growing a successful financial advisory practice
By Sandy Welch Editor, MoneyMarketing
In an ever-changing financial landscape, building a successful advisory business demands more than just expertise. By fostering trust and delivering tailored solutions, advisers can not only grow their business but also secure lasting client loyalty and referrals. Focusing on these key areas allows financial advisers to build a thriving, client-focused and future-proof advisory firm.
1. Define your niche and value proposition
It’s difficult to be everything to everybody. By specialising in a specific market segment (e.g. retirees, business owners, young professionals) you can clearly define what you offer and articulate how your services meet their unique needs.
2. Build strong client relationships
It’s important to take the time to deeply understand your client’s financial goals, risk tolerance and personal circumstances. This involves active listening and asking insightful questions. Also, focus on trust, transparency and personalised service to foster long-term relationships and client loyalty. Keeping clients informed through frequent updates, scheduled meetings and prompt responses to queries ensures they feel valued and informed about their financial situation. Trust is fundamental in any adviser-client relationship. Being transparent about fees, potential risks and the performance of investments helps in building trust with clients. Setting realistic expectations and consistently delivering on promises is essential. It’s important to be honest about what is achievable and to work diligently towards meeting those targets. Prioritise communication It’s not enough to sign the business and then never speak to the client again. Keep clients informed through regular updates, scheduled meetings and prompt responses to queries. This ensures clients feel valued and informed about their financial situation.
3. Embrace technology and automation
With the rapidly changing technological environment, any financial advisory business needs to leverage financial planning software, CRM tools and digital marketing to improve efficiency, enhance client
experiences and stay competitive in a tech-driven landscape. The more efficient your technology, the more time you will have to spend with clients.
4. Develop a comprehensive marketing strategy
Reach your potential clients where they are. It’s important to utilise a mix of online and offline channels, such as social media, content marketing, webinars and networking events to attract and retain clients.
5. Stay compliant and informed
Keep up with regulatory changes and compliance requirements to avoid legal risks. Continuous education and professional development of everyone who works in the practice are crucial. Upholding high ethical standards and professionalism can greatly enhance reputation and client trust.
6. Prioritise client-centric financial planning
Understanding the needs of each client allows an adviser to develop a unique and comprehensive understanding of their individual situation, which in turn enables the recommendation of the right products. Holistic financial solutions should be tailored specifically, to cover investments, tax strategies, retirement planning and estate planning. Customising financial plans and advice to fit the specific needs and situations of each client can foster stronger connections and show clients that they are not just another number.
7. Use scalable business processess
It’s essential to have company operations that can easily be adapted and expanded to handle increased demand without significantly changing the businesses’ core structure. An easy way to achieve this is by standardising workflows.
8. Foster strategic partnerships
When it comes to growing the business, it’s often about who you know and not just what you know. It’s important to grow networks, which can mean collaborating with accountants, attorneys and other professionals to provide comprehensive financial solutions and gain referrals.
“Upholding high ethical standards and professionalism can greatly enhance reputation and client trust”
9. Plan for business growth and succession
Establish a clear growth strategy, including hiring skilled team members and planning for future leadership transitions to ensure long-term sustainability. Succession planning involves several strategic steps to ensure a smooth transition and continuation of the business operations. Determine potential successors. These could be internal candidates already familiar with the firm’s culture and practices, or external candidates who could bring fresh perspectives. Establish a clear timeline for the transition, including planning for both expected and unexpected events and setting milestones to evaluate progress. Regularly review and update the succession plan as necessary. Changes in the business environment or internal developments might necessitate adjustments to the plan.
10. Value the use of education
As two-pot taught the industry this year, the power of education can never be underestimated. South Africa is vastly undereducated when it comes to financial issues, so the role of a financial adviser in this field is essential. It also shows your clients that you care about them. Educational resources such as blogs, newsletters and seminars can empower clients and position yourself as a trusted financial expert. Educating clients about financial concepts and empowering them to make informed decisions can create a sense of partnership and mutual respect.
Plot your path to success with Milpark’s School of Financial Services
By Brunhilde Gerber Deputy Head of Milpark's School of Financial Services
In the dynamic world of financial services, staying ahead through continuous education is crucial. Professionals seeking to enhance their expertise and establish themselves as leaders in financial planning and investment sectors need a robust, adaptable, and esteemed educational foundation that aligns with industry trends. Milpark Education’s School of Financial Services provides exactly that – a current, industryrelevant, accredited education that propels working professionals towards success.
Milpark’s Postgraduate Diploma in Financial Planning (PGDip FP) and Postgraduate Diploma in Investment Management (PGDip IM) are designed specifically for those aiming to advance their careers, with many students leveraging the PGDip FP as a stepping stone to becoming Certified Financial Planner® (CFP®) professionals through the Financial Planning Institute’s Capstone course. According to Brunhilde Gerber, Deputy Head of School: “Our PGDip in Financial Planning is our premier programme, crafted to provide students with not
only theoretical understanding but also practical insights drawn from our lecturers’ extensive industry experience.”
A flexible approach to online education
What sets Milpark apart from its competitors is its dedication to flexibility without compromising on quality. “We understand that 95% of our students are working while studying. That’s why our online courses are structured to be both rigorous and manageable, with the added benefit that our postgraduate students can progress one module at a time,” Gerber explains.
This scaffolded modular structure is combined with frequent assessments and easily accessible support, which helps students fully tackle each topic before moving on to the next. This is a significant benefit for those balancing work, study and home life.
The online format also fosters unique networking opportunities. “Although the courses are largely individual, we do see valuable networking taking place as students connect through topic-based forums and share struggles around difficult assignments,” she adds.
A learning path informed by extensive practical experience
Milpark’s financial planning courses will lead you along a clear educational pathway – from the Higher Certificate
in Financial Products to the sought-after Postgraduate Diploma in Financial Planning, providing all the necessary qualifications for those aspiring to become CFP® professionals. Students not only gain technical knowledge along the way but also learn from instructors who have worked on the frontlines of financial planning.
“Our strength lies in understanding our students and the challenges they face in the industry,” Gerber notes. “At Milpark, we’re not just delivering theoretical content; we’ve been in the trenches. We’ve sat in front of clients, wrestled with real-world issues, and that experience translates into better rapport with our students.”
Why you should choose Milpark
Beyond its academic rigour, Milpark boasts a reputation for exceptional student support. Whether it’s the administrative team that ‘always makes a plan’ or the lecturers who are on hand to assist, Milpark creates a culture of care and responsiveness. “We’ve built a reputation for quality and experience,” says Gerber, emphasising that this personal approach is what distinguishes Milpark from other institutions. This is what underpins our ‘We’ve got you. You’ve got this’ brand promise.
For professionals aiming to forge their professional path and stand out in financial services, Milpark’s focus on real-world application, flexible learning and comprehensive support makes it an excellent choice. As Gerber concludes, “Milpark has everything you need – from foundational courses to advanced qualifications –to navigate your way through all the steps to success.”
NAVIGATE YOUR JOURNEY
The financial advisory industry needs new blood
By Sandy Welch Editor, MoneyMarketing
There is still a dire need for more people to enter the financial advisory and financial planning professions in South Africa, to ensure the population continues to get the financial investment assistance and education so badly needed. This is the view of Lelané Bezuidenhout, CEO of the Financial Planning Institute of Southern Africa (FPI), who recently emphasised that there are still too few entrants into the field.
As those in the industry know, being a financial adviser is a rewarding career, but it requires dedication, continuous learning and strong interpersonal skills.
If you are aware of anyone who is interested in entering the profession, this information will assist them to get started on their journey. Becoming a financial adviser requires a mix of education, skills, certifications and experience.
What does a financial adviser do?
A financial adviser helps individuals and businesses manage their finances, including investments, retirement planning, insurance, tax strategies and estate planning. The role involves:
• Keeping up with financial markets and regulations.
What skills do you need to become a financial adviser?
• Strong communication skills, so you can explain financial concepts simply Sales and networking skills, to enable you to attract and retain clients
Analytical thinking, which is needed to understand investment strategies
• Ethical standards, so that you will always act in clients’ best interests
Tech skills, to enable you to use the constantly evolving financial planning software and tools.
Minimum qualifications (FAIS Act Requirement)
The University of the Free State was the first to offer a postgraduate diploma in financial planning, but now the University of Stellenbosch Business School, Milpark School of Financial Services, University of Johannesburg, and the Nelson Mandela University also offer the qualification. The Financial Advisory and Intermediary Services (FAIS) Act sets the minimum education standards. You need:
• A recognised qualification (at least an NQF Level 5 in Financial Planning)
Popular qualifications include:
• Higher Certificate in Financial Planning (NQF Level 5)
Diploma in Financial Planning (NQF Level 6)
Advanced Certificate in Financial Planning (NQF Level 6)
BCom in Financial Planning (NQF Level 7)
• Postgraduate Diploma in Financial Planning (NQF Level 8) (needed for CFP® designation)
If you don’t have a qualification yet, you can start working under supervision while studying.
Regulatory Exams (RE5 & RE1)
To be a licensed financial adviser, you must pass: Regulatory Examination: RE5 – Compulsory for all representatives
Regulatory Examination: RE1 – Required for key Individuals (business owners or managers in financial services).
These exams test your knowledge of FAIS compliance and ethics.
Register with the Financial Sector Conduct Authority (FSCA)
• All financial advisers must be registered with the FSCA and work under a Financial Services Provider (FSP)
If you’re employed by an FSP, they will register you as a representative
• If you want to operate independently, you must register your own FSP and meet fit and proper requirements.
Continuous Professional Development (CPD)
Financial advisers must complete CPD points annually to maintain their licence. The FSCA sets the CPD requirements based on your role and specialisations. The norm is 15+ CPD hours per year for most advisers. Courses and seminars from accredited institutions count toward CPD.
Professional memberships
Joining a professional body, while not compulsory, improves credibility and helps with networking.
The Financial Planning Institute of South Africa (FPI): This offers the CFP® (Certified Financial Planner) designation. The FPI is the first-ever group of more than 5 000 professionals in
South Africa. As a CFP® professional, you have access to Accredible, a platform that provides digital credentialing for your professional designation. This allows you to showcase your CFP® designation on LinkedIn, email signatures, and other professional platforms, reinforcing credibility and trust with clients, employers, and the broader financial industry. You also get access to Lexis Nexis, with its comprehensive legal and regulatory database, to ensure you stay informed with up-to-date legislation, compliance insights, and industry best practices.
The Insurance Institute of South Africa (IISA): Being a professional member of the IISA indicates you have a level of experience, skills and expertise to be of good standing within the insurance industry. It’s particularly important for insurance-focused advisers.
Gain experience
Start by working in entry-level finance roles such as financial analyst, insurance agent, bank relationship manager or investment associate. Many firms offer training programmes and mentorship.
Stay updated on regulations
Financial laws and market conditions change frequently. The best way for a financial advisor to stay up to date is by subscribing to financial news (e.g. CNBC, Financial Times, MoneyMarketing) and continue professional development through courses, webinars and industry events.
Work with a firm or go it alone?
It’s advisable to get enough years’ experience by working for a firm. This also ensures a stable salary and structured training. Once you have gained enough credibility, you can move on to become an independent adviser, which will give you more control and a higher earning potential.
Experience requirement
Some roles require supervised experience before you can operate independently. If you’re new, you may need to work under mentorship for one to three years before advising clients alone.
We offer the following programmes through
Advanced Diploma in Estate and Trust Administration
Advanced Diploma and Trust Administration
Postgraduate Diploma in Financial Planning
Postgraduate Diploma Financial Planning
Postgraduate Diploma in Investment Planning
Postgraduate Diploma Planning
Postgraduate Diploma in Estate Planning
Postgraduate Diploma in Estate Planning
Financial Coaching Short Learning Programme
Financial Short Learning Programme
Employee Benefits Short Learning Programme
Employee Benefits Short Learning Programme
Fundamentals of Short Term Insurance
Fundamentals of Short Term
Short Learning Programme
Short Learning Programme
Advanced Financial Coaching
Advanced Financial Coaching
Short Learning Programme
Short Learning Programme
EMPOWER YOUR STAFF TO SHAPE THEIR FUTURE
Employee Benefits provided by Old Mutual Corporate are designed to empower employers and employees to make informed decisions that shape their financial futures.
We’re here to guide you through every step of your journey, helping you secure your employees’ wellbeing and success for your business.
designed decisions
To find out more about our comprehensive offerings, get in touch with us at employeebenefits@oldmutual.com or scan the QR code to visit our website.
By James White Director of Sales and Marketing at Turnberry Management Risk Solutions
MGroup gap cover: A cost-effective edge for employers
edical inflation has made it increasingly difficult for employers to subsidise medical scheme contributions. Rising healthcare costs and the affordability challenge have forced many individuals to downgrade their medical aid plans, but this comes with reduced benefits and financial risks. Gap cover, however, is a cost-effective alternative that employers can offer to help employees manage these challenges while enhancing workplace satisfaction.
The affordability challenge
Medical aid premiums are increasing at a faster rate than the consumer price index (CPI). This not only means that there are few employers that can afford to subsidise them, but also that people are looking for more costeffective options than the top plans to suit their budget. Many people are opting to move from comprehensive medical aid options to lower options and even hospital plans. However, with reduced premiums comes reduced cover, as well as smaller networks of designated service providers (DSPs) that will provide full cover options. On lower medical aid plan options, there are typically higher
An integrated approach to employee benefits is critical
By Marinda van Schalkwyk Head of Retail
Arecent survey by the South African Depression and Anxiety Group (SADAG) has revealed that 61% of employed South Africans would leave their jobs if they could afford to, citing overwhelming stress, inadequate mental health support, and inflexible work arrangements. This striking statistic highlights that many employees remain in their roles out of financial necessity rather than genuine engagement or fulfilment, which ultimately impacts productivity.
It’s clear that financial insecurity, workplace stress, and lack of support are no longer just personal concerns – they have become critical business risks. To address this, companies must rethink their approach to employee benefits and rewards. Employers need to move beyond a fragmented, compliance-driven model and adopt a comprehensive strategy that recognises employees as individuals with interconnected financial, physical and emotional needs – not just workers earning a salary.
and more frequent co-payments, including penalties for the use of non-DSPs, increased sub-limits for a wider range of procedures, and greater medical expense shortfalls. These entry-level plan options will generally cover between 100% and 200% of the medical scheme rate, but frequently, specialists will charge many times more than that, often up to 600%. This shortfall is then up to the patient to cover, and it can end up costing tens of thousands of rands. In trying to save money by downgrading medical plans, people can end up in far worse financial straits.
The advantages of group gap cover
Gap cover is becoming an essential insurance for people who want to access quality medical care while balancing their budget. It offers cover for the co-payments, sublimits, and medical expense shortfalls that increasingly occur for a premium of only a few hundred rand a month. Companies can access group gap cover, which gives employees access to discounted monthly premiums, as well as favourable underwriting, including waiving typical gap cover limitations such as waiting periods.
Leading the shift to comprehensive benefits
A modern workforce demands more than traditional benefits, and employee benefit consultants play a key role in driving change. By helping organisations design strategies that support employees’ financial, physical and emotional wellbeing, consultants can boost long-term productivity and create workplaces where employees feel valued and engaged.
The approach of prioritising operational efficiency over employee needs is no longer sustainable. Businesses must adopt a people-first strategy that not only retains talent but also actively engages employees in a meaningful way.
Data-backed insights
The 2024 Old Mutual Workplace Benefits Primary Research, powered by LIMRA, reinforces the urgent need for a more integrated benefits model:
• Two out of three employees feel at least some level of financial, physical and/or emotional stress
• Three out of four who are overwhelmingly stressed believe that their employer should offer services to help address this
• While 63% of employees feel their employer is invested in their professional development, fewer believe their employer prioritises their emotional (58%), physical (58%) or financial (56%) wellbeing.
Driving the shift to integrate benefits
To support the transformation from a fragmented benefits model to a holistic, integrated approach to employee wellbeing, Old Mutual Corporate offers a comprehensive suite of employee benefits and employee wellbeing solutions designed to enhance employees’ financial resilience, emotional wellbeing, and overall stability.
With gap cover in place, employees can get the medical care they need without the stress of the large financial burden that medical expense shortfalls can incur. Some gap cover providers also offer added value in the form of trauma counselling and other benefits. This means they will be healthier and happier in body and mind, which translates into more productivity in the workplace. In addition, employers will not have to provide company loans to assist employees in paying for co-payments, sub-limits, and shortfalls. This is a significant reduction in admin.
Becoming an employer of choice
For employers looking to add value for their staff in a costeffective manner, subsidising gap cover premiums can make a massive and meaningful difference, which can tip employers over the edge when it comes to attracting and retaining the best talent. Working with a broker, employers can educate employees as to the benefits of having a gap cover policy in place, help them ensure they are on the best medical aid for their needs and budget, and then match the gap cover option to this. Even if companies cannot afford to subsidise the premium, it can still be hugely beneficial for staff, as it costs employers nothing, while employees access the benefits of reduced premiums and the peace of mind and financial benefits that having gap cover provides, as well as cover for their entire family. It is a simple process that can be done via payroll deduction, with the gap cover provider sending a single invoice for a single payment every month, and it can make a world of difference for employees.
Its Financial Wellbeing Programme (FWP) provides free financial education, helping employees make informed money decisions, reduce financial stress, and improve their long-term financial security. Smart Salary gives employees controlled early access to earned wages, while Right Track identifies reckless lending practices that could be harming employees’ financial stability. Recognising the link between physical and mental health, Old Mutual provides Strove, a gamified wellness platform that promotes healthy habits and rewards employees for meeting fitness goals.
Additionally, its range of health solutions offer high-quality healthcare solutions to employees and members, such as health insurance, gap medical cover, employee assistance programmes, consulting and administration.
Beyond individual wellbeing, the retirement and risk solutions provide financial security at every life stage. Old Mutual SuperFund, South Africa’s largest commercial umbrella fund, offers cost-effective retirement savings, while the group risk solutions cover life, disability, and critical illness protection.
Looking ahead: The case for a holistic benefits approach
By integrating financial, mental and physical wellbeing tools, Old Mutual Corporate empowers organisations to move beyond a siloed benefits approach and create a holistic employee value proposition. Companies that prioritise a comprehensive benefits strategy will see stronger employee engagement, reduced absenteeism, and long-term workforce stability.
By Shaun Raizenberg Employee Benefits Consultant at Essential Employee Benefits
IA blueprint for lasting employee loyalty and growth
n today’s competitive job market, businesses need to go beyond offering traditional benefits to attract and retain top talent. Employees are no longer simply seeking market-related salaries and basic benefits like health insurance or retirement plans. Instead, they want tailored, meaningful benefits that align with their personal values and those of the company they work for. As businesses strive to stand out, crafting a dynamic and customised benefits package can be the secret weapon in attracting, engaging, and retaining top talent. But what makes a benefit truly valuable?
Designing varied packages is crucial in creating a compelling employee experience, one that fosters satisfaction, loyalty and productivity, but to do so requires understanding both the values of the company and the needs of the employees and ensuring that the two are aligned.
Why are benefits crucial in attracting and retaining talent?
Gone are the days when pension schemes and medical aid were enough to keep employees satisfied. The emerging workforce, especially millennials and Gen Z, require engagement and revision of the status quo. They value flexibility, mental and physical wellbeing, and opportunities for growth. Benefits that address these needs help businesses stand out from the crowd. For instance, providing benefits such as flexible working hours, mental health support and professional development allowances demonstrates that the company prioritises and values their wellbeing, personal growth and individuality.
This leads to increased job satisfaction, higher morale, and better employee engagement –all of which contribute to a positive workplace culture. Competitive benefits not only help attract skilled professionals but also retain them, which in turn reduces staff churn and the costs associated with re-training and re-hiring.
Aligning benefits with company values
Employee benefits are not solely the responsibility of the Human Resources (HR) department. Benefits must become part of the bigger picture in alignment of the company’s vision and mission, with its people strategy. Disparity between what a company offers and what the employees need can lead to dissatisfaction, high employee churn, and reputational damage. When employees feel unsupported, they are more likely to seek opportunities elsewhere, increasing the company’s recruitment costs and reducing overall productivity.
A company’s benefits should be more than
just an add-on to an employee’s compensation package – they need to reflect the business’s core values. For instance, if a company values innovation and creativity, offering professional development opportunities and educational stipends can signal a commitment to employee growth. If work-life balance is a central part of the company’s culture, offering flexible work arrangements, like remote working or hybrid models, is essential.
Aligning benefits with company values starts with a clear understanding of both the internal culture, the corporate strategy, and external reputation of the business. Employees are increasingly drawn to companies that embody values that resonate with their own beliefs and lifestyles. For instance, companies with strong commitments to sustainability can offer benefits like incentives for using public transportation where this is available, supporting the use of electric vehicles by providing on-site charging stations or offering subsidies for cycling to work, or offering access to volunteer days focused on environmental initiatives.
When businesses fail to align their benefits with their values, they risk creating dissatisfaction within the workforce. Employees who feel disconnected from the company’s mission are less likely to feel motivated or engaged. This misalignment can also damage a company’s external image, as dissatisfied employees can lead to unhappy customers.
Customisation is key
Designing the right benefits package is an art, not a checklist. Offering ‘one-sizefits-all’ benefits can alienate employees who have different life circumstances and priorities. For example, a new graduate may value student loan assistance, while an experienced professional with a family might appreciate flexible hours or childcare support. Understanding these varied needs – and acting on them – is essential for building a benefits package that resonates.
To achieve this, progressive companies are moving toward customisable or ‘cafeteria-style’ benefits. This approach gives employees the freedom to choose from a variety of perks that suit their individual needs. Whether it’s extra vacation days, wellness stipends, or financial planning services, allowing employees to select the benefits that matter to them makes a powerful statement: “We see you, and we care.”
Cost versus benefit
Well-designed benefits packages can be a point of competitive differentiation – businesses that offer more than just the standard benefits are perceived as innovative and forward-thinking. This appeals to top talent who are looking for a workplace that supports their personal and
professional growth. But customising benefit packages does come at a cost, and companies need to balance these costs with the value the benefits provide. The reality is that these investments often pay off in the long run. A wellcrafted benefits package can lead to increased productivity, higher retention rates, and a more engaged workforce – all of which positively impact the company’s bottom line.
Balancing cost and impact
Customising benefits is often seen as expensive, but it’s a strategic investment. Companies that successfully tailor their benefits packages typically see better employee retention, increased productivity, and even improvements in company culture. The key is to balance the cost of these benefits with the value they bring.
Begin by piloting new benefits within a selected department before introducing them company-wide. Gather employee feedback and use surveys to assess their impact. Tracking Key Performance Indicators (KPIs) such as employee satisfaction, engagement, and turnover rates can help quantify the return on investment. Customisation doesn’t need to be costly – it just requires careful consideration.
This is where consulting with an expert employee benefits provider becomes invaluable. An external expert brings a wealth of knowledge about the latest trends, industry benchmarks, and innovative approaches to benefits design. They can help assess your company’s unique workforce needs, identify gaps in the current benefits structure, and develop a customised plan that both meets employees’ diverse requirements and aligns with your company’s broader objectives. Working with an expert ensures that the benefits you offer not only drive employee satisfaction but also provide a measurable return on investment.
Crafting the right benefit package for long-term success
Ultimately, offering tailored benefits goes beyond simply keeping employees satisfied. It’s a strategic tool to drive long-term success. By designing packages that reflect both company values and employee needs, businesses foster loyalty, reduce turnover, and enhance overall performance. More importantly, these benefits help shape a workplace culture that resonates with the modern workforce, ensuring that employees feel valued, supported, and aligned with their company’s mission.
In a world where employees increasingly seek meaning and purpose in their work, benefits that speak to their values and individual needs are more than perks – they’re essential. For businesses, they’re the key to cultivating a loyal, engaged workforce that drives innovation, stability and long-term growth.
The transformative power of Employee Share Ownership Policies (ESOPs)
By Dhevarsha Ramjettan Partner at Webber Wentzel
and Safiyya Patel,
Employee share ownership policies (ESOPs) in the current labour environment are far more than a passing trend; they are a transformative tool that simultaneously impact several areas of a business: from strengthening company culture, and promoting Broad-Based Black Economic Empowerment (B-BBEE), to enhancing recruitment and employee engagement, increasing financial inclusion and aligning employees and shareholder interests –ESOPs, if structured and managed appropriately, could be a win-win for all parties involved.
The rise and impact of ESOPs
The adoption of ESOPs has surged in recent years, impacting over 211 000 employees since 2019, including historically disadvantaged persons (HDPs). According to the Department of Trade, Industry and Competition, beneficiaries have received dividend payments totalling approximately R3.3bn through ESOPs, with around
98 ESOPs established and 27 in process since 2023. But what exactly are ESOPs and why have they become increasingly popular?
Understanding ESOPs and their types In essence, an ESOP is a programme initiated by a business that offers employees the opportunity to acquire shares or a similar ownership interest in the business they work for. Employees ‘owning’ part of the business they work for is a powerful incentive aligner, encouraging collaboration and rewarding employees based on ‘their’ business’s success. Beyond financial rewards, ESOPs can help attract and retain top talent, align internal values and interests, and meet B-BBEE requirements, all while nurturing a sense of belonging among employees. ESOPs also feature quite strongly in merger conditions imposed by the Competition Commission, solidified with the publication of the public interest guidelines relating to merger control in March 2024. Amid these advantages, ESOPs can be costly and complex to implement and administer, given the different layers of regulation that govern their operation.
There are different types of ESOPs, each with unique characteristics: Restricted share scheme – Shares are granted to employees either for free or sold to them at a discount, with
ownership immediately transferred to the employees, typically subject to conditions.
• Share purchase plan – Employees are allowed to purchase shares at a discounted price, with payment made through payroll. Arguably the simplest model, share transfer occurs when the shares have been paid for in full.
• Option scheme – A contractual arrangement between the company and employees where employees have the right to buy shares at a predetermined price.
• Phantom scheme – Employees receive ‘phantom’ shares that mimic real share value movements but do not include actual shares. This scheme provides financial benefits akin to share ownership.
Direct v indirect ownership
In addition to the chosen type, ESOPs either fall into a direct or indirect ownership bucket, which bleeds into the participation model and ownership structure. Ownership structure can be broken down into employees who may have direct ownership in the company, with shares registered in their own names, or the participation rights track directly in the company, or where employee share ownership is expressed through a vehicle created for that purpose. As so far discussed, ESOPs are quite flexible, offering employers a variety of options for participation. Critically, how an employee enters into an ESOP, which either happens through contractual rights or as a benefit, has a material bearing on their classification as a participant.
If an employee participates in an ESOP as part of a company policy or through ESOP rules separate from their contract of employment, it may be considered an employment benefit. As a benefit, it’s worthwhile to remember that the definition of an unfair labour practice is “any unfair act or omission that arises between an employer and an employee involving unfair conduct by the employer relating to the provision of benefits to an employee”.
In our experience, ESOPs with many participating employees in South Africa are typically structured as a trust or Special Purpose Vehicle (SPV) that holds the shares on behalf of employees (i.e. indirect ownership) versus employees holding shares directly. In such a case, the rules of who may participate and when benefits are awarded are generally set out in policy documents.
Partner at Webber Wentzel
The key aspect that determines who participates in an ESOP is if the parameters or rules are defined in a way that are fair, rational, consistent and justifiable – whether participating employees are top management, all employees, or Black ownership for the purposes of B-BBEE. Qualifying criteria must take into consideration the deeming provisions of the Labour Relations Act, which creates complexity around the inclusion of temporary employment service employees, contract workers, and part-time workers. There are also good and bad leaver provisions that require consideration, which have an overall impact on the employeeemployer relationship.
ESOPs and B-BBEE compliance
An area where ESOPs play an important role in South Africa is in respect of the B-BBEE Act as ESOPs have real consequences upon B-BBEE ownership scores where such schemes are implemented for this specific purpose. An ESOP must have specific minimum qualification criteria that need to be met to qualify as B-BBEE ownership.
"An ESOP is a programme initiated by a business that offers employees the opportunity to acquire shares in the business they work for”
The role of the Competition Commission in the rise of ESOPs
Mark Garden, a competition law expert and partner at Webber Wentzel, further adds that an amendment to Section 12A of the Competition Act in 2019 introduced additional public interest considerations designed to facilitate the spread of ownership by workers and HDPs in the South African economy. This amendment has led to a notable increase in the adoption and implementation of ESOPs specifically focusing on ensuring that mergers do not dilute HDP or worker ownership. The Competition Commission’s Public Interest Guidelines, published in mid-2024, clarify that any proposed ESOP must compensate for ownership dilution by matching the percentage by which HDP or worker ownership is reduced. Although, in
practice, the approach tends to be more nuanced, ESOPs are routinely endorsed by the Commission as an effective remedy.
Navigating regulatory complexities
Designing and implementing an ESOP is a complex process subject to numerous regulations. A well-thought-out ESOP roadmap is essential, especially when considering the winding-down of a scheme, which must comply with the procedural and substantive fairness mandated by the Labour Relations Act.
ESOPs can be a highly effective tool to achieve strategic company objectives, but given their associated complexities and the regulations that govern their operation, it is recommended to seek sound legal advice so that a company ESOP provides maximum benefit to the organisation at large.
Ensuring optimal employee benefits: A guide for South African companies
By John Taylor Head: Benefits Consulting, Liberty Corporate Benefits
In today’s globally competitive economy, South African companies must go beyond offering attractive salaries to retain and attract top talent. A thoughtfully crafted benefits package is essential in demonstrating an organisation’s commitment to its employees’ wellbeing. The very essence of caring for employees embodies a business’s strategic focus on leveraging its talent as a competitive advantage.
Retirement funding
With the introduction of the two-pot retirement system, retirement planning in South Africa has undergone significant reform. This system divides retirement savings into two pots: one for long-term retirement savings, and another accessible pot for short-term needs. Companies should offer competitive retirement savings plans that allow employees to leverage off this system, providing financial planning resources to help employees make informed decisions about their future. This approach fosters a sense of security and loyalty among employees.
Medical aid schemes and primary care products
Health insurance, including medical aid, primary care and gap cover, is a fundamental component of any benefits package. Businesses should offer appropriate cover that includes relevant benefits. Different employees will have different needs, requiring different plans like family plans or individual coverage. Additionally, offering mental health support through counselling services or employee assistance programmes can significantly enhance employees’ overall wellbeing.
Supportive work environment
Beyond specific benefits, creating a supportive work environment is crucial. This includes fostering a culture of respect, recognition and inclusivity. Regularly soliciting employee feedback and acting on it shows that the company values its employees’ opinions and is committed to continuous improvement.
Flexible working arrangements, such as remote work options, flexible hours and compressed workweeks, are highly valued by employees. These arrangements can help employees achieve a better work-life balance, reducing stress and increasing job satisfaction. Companies that offer flexibility are more likely to attract and retain top talent, especially in a post-pandemic world where remote work has become more common.
Attracting and retaining talent
A comprehensive benefits package is a powerful tool for attracting top talent. Prospective employees often consider benefits as a key factor when choosing between job offers. By offering competitive and diverse benefits, companies can differentiate themselves from competitors and appeal to a broader range of candidates. Retention is equally important. Employees who feel valued and supported are more likely to stay with the company long-term. This reduces turnover, which can be costly and disruptive. Additionally, a loyal workforce is more productive and engaged, contributing to the company’s overall success.
Companies that invest in comprehensive and thoughtfully designed benefits packages demonstrate genuine care for their employees’ physical, financial and emotional wellbeing. These benefits not only enhance workplace morale and productivity but also serve as a cornerstone for attracting and retaining top talent, which contributes significantly to the bottom line of any business. By prioritising employee wellbeing and adapting to new systems like the twopot retirement system, companies can build a motivated and loyal workforce, ultimately driving business success.
By Kanyane Matlou Deputy Chief Investment Officer, Terebinth Capital
Cultivating continuity: Succession planning in a boutique asset manager
Whether driving on a gravel road through the scenic Limpopo bushveld or being stuck in peak morning traffic into the Cape Town CBD, one is likely to cross paths (or drive bumper to bumper) with a Toyota Hilux. First sold in 1968, the model is one of Toyota’s leading sellers in the South African market, earning a loyal following for over half a century. But what does a Hilux have to do with investments? The vehicle’s enduring success reflects Toyota Motor Corporation’s commitment to long-term succession planning. Incorporated in 1937, Toyota remains the world’s leading car manufacturer nearly 90 years later, thanks to a leadership development strategy that identifies potential successors a decade in advance, and preserves its culture and values across generations.
At Terebinth Capital, while being much younger than Toyota Motor Corporation, we look up to it as a model worth emulating. In the first twelve years of our existence, we have sought to adopt
practices and instil values that will stand us in good stead for decades to come. One of these core values is the pay-it-forward principle, where we are deliberate about structured skills transfer to ensure business continuity and sustainability. Moreover, we aim to be a true embodiment of a transformed asset manager, reflecting the society within which we live and the broad spectrum of clients on whose behalf we are privileged to manage assets. With clients at the heart of everything we do, our focus is on sustainability and consistency of our returns over the long term. Well-telegraphed and transparent succession planning is vital in maintaining client relationships as we take our clients along on the journey to build confidence in the future crop of leaders. In a boutique environment, where concerns around key-person risk always linger, our ability to keep the business running smoothly is paramount.
Every employee at Terebinth Capital is also an owner – few boutique asset managers can make this claim. The commitment of every team member to the company’s long-term success is a cornerstone of our culture and an aspect we do not take for granted.
Having recently been appointed Deputy CIO, I look forward to the great responsibility that comes with supporting our CIO, Erik Nel, in upholding our philosophy as a macro researchfocused house that integrates top-down and bottom-up analysis. Alpha generation across our suite of products for the benefit of our clients remains a primary purpose that will keep us hungry and competitive. Since joining Terebinth, I have gained invaluable insights under Erik’s mentorship and look forward to deepening my expertise in the years ahead. My background in macroeconomics, coupled with my experience in listed property, has given me good grounding in both equity and debt, providing a robust foundation from which to hone my skills to lead a team of highly motivated and talented individuals in pursuit of investment excellence.
Like the ever-dependable Hilux, we aim to stay true to our Terebinth DNA and deliver unrivalled investment performance – not only in this generation, but also in the decades to come. Growing our own timber and broadening our investment skills will see us stay true to the brand promise we have shown since our inception.
Boutiques, not just a shop window on a wider universe
By Siobhan Cassidy Journalist, MoneyMarketing
In a financial universe dominated by powerful, large-scale asset management firms, one might wonder why anyone except the super-rich would entrust their savings to a smaller player, a so-called boutique. Yet, these smaller firms play a key role in the investment ecosystem and the economy.
Although South Africa lacks an official definition, boutique asset managers are generally understood to be smaller, independent and often founder-run or owner-managed firms with assets under management (AUM) typically ranging up to R100bn.
Giving access to a broader investment universe
In South Africa, boutique managers can access a wider range of investment opportunities than their larger counterparts. “If you are a massive player managing R500bn-plus, your ability to invest in mid-sized or small-cap stocks is extremely limited,” explains Shane Tremeer, Chief Executive Officer of Denker Capital. “Any holding you had in a small cap of R10bn or less would dwarf the market cap of that underlying small cap stock. With a smaller manager, you can take holdings in the smaller and mid-cap sectors without dominating the investor register. Typically, in our environment, we cover just over 100 listed stocks on the Johannesburg Stock Exchange (JSE). Bigger managers are largely restricted to the Top 40.”
By allocating capital to less researched and often undervalued companies outside the Top 40, boutiques help mitigate the concentration risk within the JSE. Smaller companies, often ignored by large managers, can represent significant opportunities for boutiques. These firms
“By allocating capital to less researched and often undervalued companies outside the Top 40, boutiques help mitigate the concentration risk within the JSE”
conduct extensive due diligence, uncovering value that others might overlook.
Tremeer says, “The Top 40 tend to be extremely well researched – maybe you can extend that to the top 60 stocks –but from then on, it’s a handful of people providing research and analysis of those companies. There are fantastic companies that have been around for decades in that space, which are unloved. “There is a lot of opportunity in that mid and small cap space. These companies play an important role in the economy, and may not be the big, sexy, well-known businesses.”
Lonwabo Maqubela, Deputy Chief Investment Officer at Perpetua Investment Managers, adds that where a large manager does access smaller stocks – they might own, say, 25% of a company, which makes up less than 0.5% of the manager’s portfolio – it just doesn’t move the needle for them.
A boutique, on the other hand, can give investors access to these companies at a proportion of a portfolio that makes a material difference to performance. It is more meaningful and “reduces that reliance on the Top 40 ideas”, Maqubela adds.
While connecting the investor to a part of the market that wouldn’t have moved the needle for a large investor, boutiques also add depth to the industry. By focusing on niches or specialist areas, they preserve and develop specialist skillsets, which are sometimes given scant attention or even overlooked by the industry altogether.
Gavin Wood, Chief Investment Officer at Camissa Asset Management, agrees that it is not that the bigger managers can’t or don’t want to invest in smaller stocks. It is not a lack of interest, as “some of them have dedicated small cap teams, some of them have dedicated small cap funds”; it is about relevance, or lack thereof. “Smaller companies can never be a big portion of a large manager’s portfolio as a percentage, and that’s a mathematical fact.”
To explain his point, he gives the example of a well-known and well-loved South African restaurant group that has a market capitalisation around R3bn. If a large manager with SA equity assets under management of R300bn-plus were to “really like” the business and want to take a 1% position, they would have to buy the whole company.
Continued from previous page
As a compromise, he says, they might look at buying 10% of the shares in issue, which would give them a position in their portfolios of 0.1%. Should this turn out to be a great investment, with the share price doubling, the holding would increase from 0.1 of the portfolios to 0.2, “which is just not going to move the performance needle for the asset manager”.
The reality is that investment teams are expensive resources. “If they have an investment team of 20 or 30 individuals, it is just not worth it to dedicate a lot of time to those smaller caps because it is not going to pay off for their clients.
“I have a big choice,” says Wood. “It is massive advantage in my mind that I can invest in these smaller companies, mediumsized companies that become reasonably big in my portfolios, and can have a meaningful impact on our performance.”
Alignment and superior service
A factor with boutique managers that many believe results in better alignment with investors is the ownership structure. According to Denker’s Tremeer, “The people looking after the money at owner-managed or -controlled firms tend to be more aligned with investors.”
He adds that this also means they don’t have conflicting interests, unlike a listed asset manager with many institutional shareholders who might be more interested in returns generated from a shareholder perspective than those generated for investors.
Smaller managers frequently outperform their larger peers. Don Andrews, Head of
Surveys at Alexforbes, says: “The latest results from the Manager Watch™ and BEE Manager Watch™ surveys demonstrate the competitiveness of smaller, majority blackowned managers.”
He says the latest data, reflecting the one-year performance calculated as at 31 December 2024, compares portfolios and strategies in the SA Large Manager Watch (SA LMW) and Global Manager Watch (Global LMW) categories in the Manager Watch™ survey with those in the BEE Manager Watch™ survey. The SA LMW and Global LMW focus on larger asset managers, while the BEE survey tracks smaller, majority black-owned managers who are not yet eligible for participation in the Manager Watch survey. “The Camissa Balanced Fund, featured in the BEE survey, ranked as the top-performing portfolio across the SA LMW and Domestic Balanced categories in both surveys, achieving a solid one-year return of 18.62%,” he says.
“In the Global Balanced category of the Manager Watch survey, Coronation Segregated Full Discretion led with a oneyear return of 17.79%. The BlueAlpha BCI Balanced Fund, in the BEE survey, delivered a one-year return of 17.54%, which would have placed it as a close second in the Global LMW category if it had participated.”
Also, Tremeer points out, Denker’s balanced fund won the Best Aggressive Allocation Fund category at the Morningstar Awards last year, as a result of delivering consistent risk-adjusted returns over time. He adds that “there have been a number of cases where boutiques have become mid-sized managers through consistent performance”.
It is obvious, however, that making a business’s performance well-known depends quite heavily on the size of the marketing budget. Camissa’s Wood notes that it is worth remembering when large managers point to their 20-30-year track record that much of that record was created when they were boutiques. “The relevance of the track record for considering their ability to repeat it in future is diminished by the fact that they are now so much larger and have so much less choice.”
Catalysts for economic growth
According to Patrycja Kula-Verster, Primary Markets: Equity Origination Manager, at the JSE: “Boutique asset managers are vital to South Africa’s economy, investing in small-cap companies that drive growth, create jobs and benefit local communities.” Tremeer of Denker says that by “providing a flow of money into an under-loved and unresearched part of the JSE, you do stimulate economic growth in certain areas”.
Maqubela believes that boutiques can make a difference to South African businesses, “Especially where a boutique is active and is a material shareholder, they can drive engagement,” he says. He adds that while it is often said that boutiques don’t really have influence, sometimes their clout can be underestimated. In the recent past, in the case of several local companies that have been bought out by bigger players, he says, “As one of the top 10 shareholders in those companies, we had engagements with potential buyers working to improve the ultimate price that shareholders got.”
Maqubela also talks to the role boutiques have in providing a second round of capital when Private Equity firms exit an investment. Samantha Pokroy, founder and CEO of Sanari Capital, a private equity firm focused on investments in growth companies emanating from Africa, agrees. “Boutique asset managers play an important role in supporting exits for private equity-backed assets,” she says, adding that smaller firms “continue the important tradition of in-depth valuations and price discovery – for the benefit of all market participants”.
Whether by offering the diversification benefit of funds that can perform very differently from larger managers, supporting smaller listed South African businesses, capitalising on their size advantage to invest more meaningfully in those smaller businesses, or paving the way for the next generation of big asset managers, boutiques are an indispensable part of the asset management ecosystem.
By Hannes van der Westhuyzen Co-founder of Truffle Asset Management and Head of Fixed Income
Staying grounded to achieve success
Truffle Asset Management was founded in 2008 when Louis van der Merwe and I realised a vision to establish an independent and focused South African asset manager. Over 17 years, we have expanded the team and successfully grown Truffle’s capabilities, client base, and assets under management. While many lessons have been learned in evolving the business, there are some key aspects that have shaped Truffle’s growth and success.
Balancing change with consistency
As Truffle has transitioned into a ‘larger’ boutique asset manager, the team has embraced the journey of ‘growing up’ with patience and deliberate focus. This evolution has required careful preparation for the business’s next phase while staying true to the culture and processes that have driven its success from the start. As Truffle has grown, our core purpose and philosophy remain steadfast. However, the business recognises the importance of continuously enhancing
our capabilities to deliver the same exceptional purpose to an expanding client base. As the business has scaled, it has become increasingly important to build complementary expertise and strengthen our systems and infrastructure to offer both excellent client service and outstanding investment outcomes.
One of Truffle’s key strengths lies in our ability to maintain an open and dynamic culture, allowing for agility that directly benefits our clients. In smaller environments, team members naturally communicate more frequently and informally, and have the agility to implement investment decisions as opportunities arise. Truffle has harnessed this advantage and ensured that, even as the team grows in diversity of skill, knowledge and experience, the culture of debate and idea-sharing thrives. Cross-pollination of ideas remains central to our approach, and we work closely to agree investment decisions, cross-referencing or checking each other’s views as the market shifts. Our commitment to flat structures and avoiding the inefficiencies of ‘death by committee’ ensures that clients benefit from the agility of a boutique manager while gaining confidence in decisions
that are thoroughly researched, analysed, and honestly debated.
Experience and ownership
The experience of the team and the fact that the business is owner-managed have undoubtedly played a pivotal role in fostering growth while preserving agility. As our tagline suggests, we believe experience has a high value. However, we recognise the importance of balancing this deep expertise with fresh thinking and innovative approaches to ensure we are constantly developing our people and evolving as a team.
A cornerstone of Truffle’s philosophy is managing downside risk, and this requires a collective willingness to ask the tough but vital question: “Where could we be wrong?” The emphasis on “we” is intentional. One of the key lessons learned as portfolio managers is the need to avoid an overly defensive or ego-centric approach. While maintaining conviction around investment decisions is critical, it’s equally important to distinguish conviction from ego, especially when faced with fundamental changes that challenge the rationale for holding a position.
A collaborative and self-reflective mindset is embedded in Truffle’s culture, meaning experienced managers work hand-in-hand with younger analysts. By blending seasoned insight with fresh perspectives, the team ensures that every investment decision is tested thoroughly and grounded in what is truly best for clients.
Unlocking the potential of SA Inc with a new Domestic Balanced Fund
Prescient Investment Management (Prescient) has launched the Prescient Domestic Balanced Fund, seeded with an initial investment of R200m. The Fund has several unique characteristics, including low-cost access to a variety of South African assets such as equity, bonds, infrastructure, clean energy and both private and listed credit. With a headline fee structure of 45 basis points, the Fund delivers an actively managed product priced as a passively managed offering.
The Fund is designed to provide South African investors with an opportunity to access a well-diversified portfolio focused on domestic assets. The Fund stands out by incorporating infrastructure, clean energy projects, and credit opportunities alongside traditional equity and debt holdings. This unique mix underscores Prescient’s dedication to aligning investment strategies with sustainable growth and development in the local economy as highlighted in the recently released 2024 Prescient Responsible Investing Report.
“Our mission has always been to combine insights and proven, predictable processes to create consistent outcomes for our clients. One of the obvious challenges in the market is that the investment universe on the JSE has been shrinking and investors are seeking alternative ways to participate in the economic recovery in South Africa. This Fund offers access not only to South African equities but a basket of assets that will benefit from South Africa’s economic recovery,” says Rupert Hare, Head of Multi-Asset Portfolio at Prescient Investment Management.
As an active and systematic asset management firm, Prescient specialises in portfolio and risk management strategies that consistently deliver results. The company’s independent and clientcentric philosophy ensures that investment decisions are motivated by data-driven insights and market expertise rather than external influences.
By including infrastructure, clean energy and private credit in its portfolio, the Fund not only supports national priorities for sustainable development and energy security, but allows for exposure to sustainability-linked and Environmental, Social and Governance (ESG) mandates. Additionally, its focus on South African private credit offers investors exposure to opportunities in sectors that drive economic inclusivity and growth.
“As South Africa’s largest systematic asset management house, we are analysing over 170 million data points daily. This understanding of the macro-economic conditions allows us to build expertise in local asset classes, which allows us to build models to extract significant alpha for our clients and gives us a competitive advantage in launching a new domestic fund,” concludes Hare.
For more information on the Prescient Domestic Balanced Fund, visit www.prescient.co.za
Rupert Hare, Head of Multi-Asset Portfolio at Prescient Investment Management
Old Mutual Wealth partners with Bravura
Old Mutual Wealth (OMW) South Africa has announced a strategic collaboration with financial services technology provider to the asset and wealth management communities, Bravura, to enhance its Discretionary Fund Manager (DFM) functionality of its Linked Investment Service Provider (LISP) platform.
The partnership aims to revolutionise the services and technology available to DFMs in South Africa. Designed specifically for the funds markets, the adoption of Bravura’s technology will enable Old Mutual Wealth’s LISP platform to reduce operational overheads and improve efficiencies, while helping to reduce the regulatory burden for DFMs. This is delivered by automating a variety of business processes and facilitating real-time data analysis, allowing DFMs to enhance reporting, respond quickly to market changes, and increase agility in making investment decisions.
“The partnership aims to revolutionise the services and technology available to DFMs in South Africa”
The software is delivered through two of Bravura’s microservice solutions, MPS (Model Portfolio Service) and SSAD (Single Source Asset Data), giving DFMs the ability to create and manage investment models, including bulk rebalancing and reporting, without the need for Old Mutual Wealth to re-platform. This, combined with enabling the creation and management of portfolios more efficiently, further reduces risk and better bridges the gap between advisers and DFMs.
Bravura’s microservice technology is already being used directly by DFMs in the UK following the Financial Conduct Authority’s Retail Distribution Review in 2012, meaning Old Mutual Wealth and its partners will benefit from its market-proven technology and maturity. As the software continuously evolves and updates, it will also enable additional features and benefits, such as self-servicing, that allow quick and seamless rollouts in the future.
Stephan De Kock, Chief Operating Officer at Old Mutual Wealth, says: “Our DFM proposition is seeing significant growth as greater numbers of advisers look to outsource their investment capabilities. The partnership and microservices delivered by Bravura provide us with the opportunity to further cement our position as a leading wealth manager in South Africa.
“Ultimately, this partnership will help to improve efficiency on our platform, making model portfolio rebalancing easier and faster, while reducing risk. This is at the heart of our philosophy of creating client-centric experiences for our advisers and clients.”
Rory Taylor, Country Head South Africa, Bravura, adds: “While upcoming changes to South Africa’s regulatory framework are undoubtedly causing operational challenges for some firms, it is also creating opportunity for others who are committed to using new and emerging technology to create a competitive advantage and better support their end investors.
“By applying the lessons we’ve learnt from successful microservice deployments across the globe – including the UK, which is several years ahead of South Africa in its RDR rollout – Old Mutual Wealth will be able to build on its leading position in the DFM market and further enhance its client experience, and adopt new features and benefits without the need to re-platform.”
First secondaries fund launched in SA
By Tivon Laubser CO-fund Manager, MeTTa Capital
MeTTa Capital has launched SA’s first secondaries fund based on the growing success of this asset class internationally. It aims to address the growth of the South African private equity industry where illiquidity remains a key challenge and investors grapple with limited exit options for their investments.
Typical private equity funds lock up capital for extended periods – often five, seven or even 10 years. Tivon Loubser, cofund manager, MeTTa Capital, explains: “This extended holding period means investors can’t easily access their capital until the fund’s term is reached or until there is an exit. As a result, many investors seek to access their capital more flexibly, challenging the traditional private equity model and driving demand for innovative ways to sell investments. It’s a significant problem in South Africa and we want to pioneer the solution to provide more liquidity in the market.”
MeTTa Secondaries plans to purchase pre-existing investor commitments in various private equity funds and other alternative investment vehicles. The fund provides existing investors with liquidity, while opening the door for its investors to own a portfolio of strong investments at a discount to capitalise on the unrealised future upside.
“A secondaries fund purchases pre-existing investor commitments in private equity funds and other alternative investment vehicles”
For example, South African investors have begun being eligible to exit their Section 12J tax incentives. Other private equity investments and alternatives suitable for a secondary fund include Section 12B and other private equity/credit investments.
Loubser explains: “Investing always carries uncertainty. There’s no guarantee that the company you’ve invested in will successfully exit its position – whether by selling to
another party, or that the product you’ve backed will liquidate and return your capital after the investment period. This is where the secondaries fund comes in.”
The secondaries fund purchases an investor’s holding at a discounted price. For example, the fund might acquire a share valued at R2 000 for R1 200. This means investors in the secondaries fund gain access to a share worth R2 000 at a significantly reduced cost. Additionally, these shares are often closer to an exit, which helps mitigate risk while offering the potential for greater capital appreciation.
MeTTa Secondaries has identified its inaugural investment: a stake in Kalon Venture Partners Fund I (KVP1). KVP1, a Section 12J fund, specialises in building and investing in a portfolio of high-growth technology companies. Its focus is on innovative business models designed to address the evolving needs of both established and emerging institutions, as well as their customers.
The KVP1 fund comprises some of South Africa’s largest technology start-ups, including exposure to Ozow, Sendmarc, Carscan, Peach Bots, and others. In its seventh year, KVP1 has a demonstrable track record and a strong executive team.
The first investment tranche has limited availability and a minimum investment of R500 000.
Secondaries explained
A secondaries fund purchases pre-existing
investor commitments in private equity funds and other alternative investment vehicles. These funds typically acquire stakes from original investors who want to sell their holdings before the fund reaches maturity, often for liquidity reasons or to rebalance portfolios.
The secondaries market provides sellers with an exit option while offering buyers the opportunity to purchase assets at a discount, potentially benefiting from the remaining upside in the investments. Secondaries funds can invest in various types of assets, including buyout funds, venture capital, and real estate.
International traction
Secondaries funds are gaining popularity worldwide, and demand is rising. A 2024 report from Bain & Company highlights the market’s growth. According to the Secondaries Investor Fundraising Report H1 2024, secondary funds raised 92% more capital globally in 2023 than the previous year. The market saw $34.5bn raised in the first half of 2024.
MeTTa Secondaries is administered by Grovest, one of the largest smallcap administrators in South Africa, with R3.6bn in assets under administration.
MeTTa Capital launched South Africa’s first portfolio of market-leading Section 12J funds and has R237m in assets under management.
For further information, go to www.mettasecondaries.co.za
By Mark Sanders COO at GIB
and Jonathan Lindeque Head of Agriculture and Manufacturing at GIB
Insurance in the time of economic and geopolitical turmoil
From the war in Ukraine to tensions in the Middle East, global conflicts and economic uncertainties are disrupting societies, economies and politics, and the ripple effects of these events are felt in the insurance industry.
Natural disasters are also growing in frequency and severity due to climate change, and in response to these challenges, the South African insurance industry faces compounding hurdles that demand adaptability and innovation.
“Insurance operates on the principle of predictability, but the increasing unpredictability of global events has disrupted traditional underwriting practices,” says Mark Sanders, COO at GIB. “The sector must adopt new approaches to ensure sustainability and remain prepared for the unknown.”
Insurers have traditionally relied on historical trends to underwrite risks and to price products. However, with natural disasters intensifying and new geopolitical risks emerging, underwriters are forced to adopt a more cautious stance. This results in higher premiums, stricter coverage terms, and a greater emphasis on geographic
modelling to manage exposure effectively.
Jonathan Lindeque, Head of Agriculture and Manufacturing at GIB, highlights an important shift in this regard. “Reinsurers have historically viewed South Africa as a predominantly fire-risk area. Now, however, natural disasters, such as the devastating floods in KwaZulu-Natal that cost the country upwards of R25bn in infrastructure, are seen as the primary risk. This evolution demands a more dynamic response to underwriting.”
Political unrest in Mozambique has led to significant disruptions. “In the case of Mozambique, we have now seen marine, terrorism and political violence insurers imposing stricter and more onerous conditions. Some local marine insurers have now excluded cover to and from Mozambique as they deem losses in that area as a certainty rather than a possibility,” says Lindeque.
The role of ESG in insurance
Environmental, Social, and Governance (ESG) principles are becoming central to global insurance practices. Many insurers now require clients to demonstrate active ESG strategies before assuming their risks, a trend that is particularly relevant as businesses transition to greener technologies, such as solar energy.
“In South Africa, the surge in solar installations has created new challenges,” explains Lindeque. “While solar reduces energy dependency, it introduces risks like fire or equipment failure, compelling insurers to implement stricter underwriting standards and minimum risk requirements.”
Beyond renewable energy, ESG considerations have also become relevant in other sectors, like agriculture. Farmers in regions like the Western Cape, for instance, have faced increasingly severe droughts, compelling insurers to develop innovative weather-based insurance products that may rely on satellite data to trigger payouts.
Yet, despite these challenges, a positive trend is emerging where consumers and businesses are paying closer attention to the details of their insurance policies. The industry mantra, “Don’t underwrite at claims stage,” rings truer than ever, underscoring the importance of proactive risk assessment instead of checking what is covered only when a loss occurs, so that your business can mitigate risks and fully understand what additional cover it might need.
According to Sanders, “More clients are now engaging with their policies and actively mitigating risks. This shift is critical as the focus moves away from relying solely on insurance policies to implementing internal risk management measures.”
Preparing for the future
The South African insurance sector must remain vigilant as it anticipates future challenges. Climate change, geopolitical tensions, and economic instability will continue to drive demand for innovative insurance solutions. Insurers, brokers and clients must collaborate and adapt, ensuring risks are not only transferred but also effectively managed.
New niche insurance solutions for SA market
Health & Accident Underwriting Managers has partnered with GENRIC Insurance Company Limited (GENRIC Insurance) to bring its health and personal accident insurance products to market.
Health & Accident Underwriting Managers develop, distribute and administer niche insurance solutions from personal accident cover, emergency response cover, gap insurance, and group risk employee benefits.
GENRIC Insurance has established partnerships with specialist underwriting management agencies (UMAs), emerging startup enterprises, and InsurTech pioneers, offering a diverse array of innovative and niche insurance solutions designed for the South African market, utilising its extensive network of brokers.
“The backing and support of an insurer partner like GENRIC Insurance provides the financial strength, systems, processes, technical support, compliance and tech innovation that can take our business forward in this highly competitive market,” explains Adrian Hofman, Managing Director of Health & Accident Underwriting Managers, founded in 1994.
“As an underwriting management agency (UMA), we were looking for an underwriting partner that embraces the specialist, expert skills that UMAs bring to the market. GENRIC Insurance Company is well known
in the industry for its partner-focused model with UMAs, brokers, and insurtech businesses. We’re looking forward to the opportunities that our underwriting partnership brings in expanding into new markets and growing our existing ones with the backing of an insurance partner that is actively involved in market development, and product and process innovation,” says Hofman.
Cornel Schoeman, Chief Operating Officer of GENRIC Insurance, explains: “Strong processes and resources, expanding underwriting, sales and claims support and insurtech investment, means that our UMA partners have the financial and technical backing of an insurer that is solely focused on finding innovative ways to meet changing needs, as well as market and distribution pressures through niche insurance solutions that meet evolving risk challenges. Our UMA partners are embraced for their superior product knowledge, entrepreneurial spirit, speed to market, innovation and customercentricity, without the distraction or red tape of large corporate environments and bureaucracy,” says Schoeman.
All must be in order with the Tax Man
By Lovemore Ndlovu Head of SARB Engagement and Expatriate
An unsuspecting taxpayer recently faced
a dilemma when he had to transfer money overseas, but found SARS had cancelled his Tax Compliance Status (TCS) PIN approval, a critical component for taxpayers who need to transfer funds internationally or engage in other crossborder transactions. Without a TCS PIN approved by SARS, cross-border financial transactions can be delayed and potentially damage the taxpayer’s reputation with stakeholders.
SARS informed the taxpayer the TCS PIN approval was cancelled due to insufficient and outdated documentation. From the SARS notice, is it clear the taxpayer could have saved himself time by submitting accurate and timely information to the tax authority for securing and maintaining tax compliance approval.
Failure to meet SARS’s stringent documentation and information standards can lead to application declines and cancellations, even after initial approval – so best ensure SARS does not find you wanting.
Implications of a cancelled TCS PIN
A cancellation can lead to:
• Delays in financial transactions: A cancelled TCS PIN means that the application must be resubmitted, delaying planned transactions.
• Increased administrative burden: Taxpayers must recompile documentation and navigate the reapplication process, which can be time-consuming.
• Potential financial or reputational risks: Delays or non-compliance could have financial consequences or impact the taxpayer’s reputation with stakeholders.
Why a TCS PIN may be cancelled
It’s important to inform your clients as to why they may be having a problem with their PIN:
• Insufficient or inaccurate documentation
Incomplete or outdated supporting documents, as SARS requires all documentation to be current to ensure accurate assessment. For example, in the case of a recent application, the financial statement provided was older than 14 days.
• Approval issued in error
Occasionally, SARS may identify an error in an approval issued, leading to it being revoked. While this may seem unfair, it highlights the importance of ensuring all aspects of the application meet compliance requirements before submission.
CompCare unveils game-changing digital healthcare option
CompCare Medical Scheme has launched a newly developed digital option, DigiCare, offering an affordable entrypoint to the medical schemes market at a time when membership costs are rapidly rising.
Priced at R995 per beneficiary per month, the DigiCare benefit option opens the door to essential healthcare for single young adults just starting their careers. These individuals are keenly aware of the value of joining a reliable medical aid for unplanned medical emergencies.
“At the same time, there is a push towards the convenience and speed of a digitally enabled service. CompCare’s DigiCare option offers immediate membership – a standout feature and the first of its kind in the South African medical schemes market,” says Josua Joubert, Chief Executive and Principal Officer of CompCare.
“With approval from the Council for Medical Schemes, CompCare is spearheading a new era for tech-savvy healthcare consumers, backed by the scheme’s solid track record,” he says.
What DigiCare offers
According to Joubert, DigiCare offers the full spectrum of healthcare benefits, including comprehensive in-hospital cover at Netcare or Mediclinic hospitals, emergency care,
day-to-day benefits, specialist visits, and travel cover through Universal Rewards. Key features include two online doctor consultations with medication, and unlimited telephonic counselling with three face-to-face sessions when needed, alongside rich preventative and wellness benefits.
Prospective members can apply via the Universal.one App for CompCare members, and if there are no underwriting requirements, membership will be active the next day – a groundbreaking development. A secure membership app connects users with the entire universe of their medical scheme, including an AI-enabled health check, a secure online doctor consultation platform, and a market-leading holistic wellness app.
Beyond basic cover
“Consumers are increasingly conscious of maintaining good health from a young age. Our offerings extend beyond typical health screenings, dental check-ups, and contraceptive care – the likes of which should form the absolute baseline of preventative cover,” notes Joubert.
“We are vocal champions of an individualised approach to wellness and believe that our members should be able to personalise their wellness benefits, not only to their lifestyle but
• Non-adherence to specific guidelines
Each TCS PIN application type – whether for International transfer or other purposes –has unique documentation and procedural requirements. Failing to meet these can result in rejection or cancellation.
How to prevent a TCS PIN cancellation
• Ensure documents are up to date
Financial statements and other required documentation should be no older than 14 days at the time of submission.
• Understand the requirements They should be familiar with the specific requirements for their TCS PIN application type. SARS provides detailed guidelines, and professional advisers can offer additional clarity and guidance.
• Conduct a pre-submission review They should double-check all documentation and information for accuracy and completeness. Address any discrepancies before submission.
As a professional tax consultant or adviser, you can help ensure your clients’ applications meet SARS requirements and minimise the chances of rejection or cancellation.
to their preferences, too. So, if a member of CompCare does not simply want to comply with step counts but enjoys a varied, high-intensity workout for example, we back that,” he says.
DigiCare members enjoy full access to CompCare’s exercise prescription and nutritional programmes in consultation with registered biokineticists and dietitians, respectively.“ By partnering with our administrator, Universal Healthcare, CompCare provides members with exceptional preventative and wellness benefits, all funded from the scheme’s risk pool, so members do not have to dip into their pockets.”
Commenting on the launch of a new medical scheme product in light of NHI, Joubert says: “There is considerable room for additional innovations in the medical schemes space. While we must move towards a future of universal coverage for all, we must also do what we can to approach unmet needs differently – this means finding intelligent solutions that build on proven systems right now.
“It is in this spirit that CompCare brings DigiCare to the market. We are delighted to be taking this next step in answering the healthcare needs of many more South Africans who want to get proactive about quality care and better wellness from the outset,” he concludes.
A partnership that keeps on giving
Bonitas Medical Fund and Gift of the Givers (GOTG) are strengthening their impactful partnership, which began in 2018, with a significant expansion in 2025. This continued collaboration aims to provide critical healthcare interventions to vulnerable and marginalised communities across South Africa. In 2025, additional funding and resources will support three key initiatives: upgrading facilities at Sefako Makgatho Health Sciences University (SMU) near Pretoria, as well as borehole projects at Cwebeni Junior Secondary School in the Eastern Cape and Boitekong Community Health Centre in Rustenburg. These projects will enhance healthcare infrastructure and improve access to clean water, directly benefiting those most in need.
A village without water
Cwebeni, in the Eastern Cape, does not have access to clean water, sanitation and road infrastructure. Locals, including the elderly, walk up to 5km every day to get water from a water hole they share with the livestock. The activation of the borehole on 21 November transformed the lives of the community.
Lee Callakoppen, Principal Officer of Bonitas, says, “We have over 65 000 members based in the Eastern Cape and are pleased to support this province, in a small but meaningful way, and help change lives. We
continue to assist in the social upliftment of South Africans, particularly in the healthcare space. And who better to partner with than GOTG, the leading global philanthropic organisation. Together with GOTG, we have instigated and carried out several projects – from smaller, proactive interventions to repairing healthcare facilities following the floods in KwaZulu-Natal.
Over the past few years some of the key strategic projects include:
• An Audiology Screening programme to screen 16 000 schoolchildren for hearing disabilities (2022/2023)
• University of KwaZulu-Natal bursary programme for final-year medical students who were struggling financially (2023/2024)
• Borehole projects to provide various facilities in dire need of a supply of clean water (2023/2024).
Boreholes to access fresh water
This saw boreholes established at the Kalafong Hospital (Gauteng), Tower Hospital (Free State), Cwebeni (Eastern Cape) and Sibanye Clinic (Rustenburg).
Bringing water to the teaching hospital
“The projects to date have had a marked impact on the relevant communities,” Dr Imtiaz Sooliman says. “We know what a difference this consistent water supply has made to Kalafong Hospital, among others, after the
activation of the borehole.” The borehole at Kalafong Hospital currently yields 8 000 litres per hour. The 150 000 litres yielded a day constitutes over half of the hospital’s daily consumption.
Sefako Makgatho Health Sciences University (SMU) upgrade
The SMU is the only dedicated Health Sciences University in the country and known for its academic excellence. In a groundbreaking achievement, coinciding with its 10th anniversary, it solidified its position as one of South Africa’s leading higher education institutions by securing the 10th spot in the prestigious Times Higher Education World University Rankings 2025. The funds will be used to upgrade safety and security to ensure access to a safe campus for students and staff, as well as equipment upgrades to the clinic and an emergency vehicle.
By Brian Harris General Manager of Operations at Turnberry Management Risk Solutions
Addressing misconceptions around gap cover
Brokers frequently encounter clients who are sceptical or unsure about the necessity of gap cover. Misconceptions, cost concerns and a lack of understanding can create barriers to securing this crucial component of comprehensive healthcare and financial protection. By addressing these objections effectively and demonstrating the value of gap cover, you can help your clients make informed decisions and develop a comprehensive plan of cover to safeguard their financial and medical wellbeing.
1. Addressing misconceptions: Clarity is key “I have comprehensive medical aid, so I don’t need gap cover.”
Strategy: Educate your clients on the reality of medical expense shortfalls. Even the most comprehensive medical aid plans often fall short of covering all expenses, particularly when specialists charge up to 1500% of the scheme rate. Share real-life examples, such as the cases of Turnberry Gap Cover clients who have experienced lifetime claims of R529 598,61, R450 224,52, R437 464,33, R398 585,02, and R395 882,08 respectively, resulting from medical expense shortfalls over the years. These significant figures illustrate the potential financial impact and underscore the importance of gap cover as a safety net.
2. Tackling cost concerns: Emphasising value over price “Gap cover is an unnecessary expense; I can’t afford it.”
Strategy: Shift the conversation from cost to value. Explain that, while gap cover does involve an additional premium, it can prevent far greater financial losses in the long run. Highlight statistics like the lifetime claims from Turnberry,
where clients have faced shortfalls totalling hundreds of thousands of rands over their lifetimes. Emphasise that gap cover is a costeffective way to protect against such significant financial risks, potentially saving clients from having to dip into savings, take on debt, or delay important life goals. It is also important to emphasise to clients that often, one premium will cover all immediate family members in the policy.
3. Dispelling myths about coverage: Setting the right expectations
“Gap cover will pay for all my medical expenses, including day-to-day costs.”
Strategy: Clarify the specific role of gap cover in a client’s healthcare protection plan. Explain that gap cover is designed to address shortfalls related to hospitalisations and significant medical events, not everyday expenses like GP visits or optometry. By setting realistic expectations, you help clients understand how gap cover complements, rather than duplicates, their existing medical aid, making it an essential part of their overall financial strategy.
4. Demonstrating strategic importance: Aligning with long-term goals
“I don’t see how gap cover fits into my long-term financial plan.”
Strategy: Position gap cover as a strategic component of comprehensive financial planning. Explain that unexpected medical expenses can derail even the most carefully crafted financial plans, forcing clients to make difficult short-term decisions that impact their long-term goals. By integrating gap cover, clients can protect their retirement savings and other financial objectives from being compromised by unforeseen medical costs. This approach helps clients see gap cover as an investment in their financial security, rather than just an added expense.
5. Leveraging broker expertise:
The value of professional guidance
“I don’t want to pay extra for a broker’s advice.”
Strategy: Reinforce the value of your expertise by explaining that your services come at no direct cost to the client, as brokers earn commissions from insurers. Emphasise the benefit of having a knowledgeable professional who can navigate the complexities of medical aid and gap cover options. Your guidance ensures that clients choose the most appropriate coverage for their needs, helping them avoid costly mistakes and ensuring they are fully protected.
6. Effective communication techniques: Building trust and understanding
Strategy: Use clear, straightforward language when discussing gap cover; avoid industry jargon that might confuse clients. Focus on building trust by listening to their concerns and addressing them directly. Provide real-world examples and statistics to make the risks and benefits tangible. Regularly review your clients’ coverage needs, ensuring that their gap cover remains aligned with their medical aid and financial goals as circumstances change.
Empower informed decisions
By effectively addressing objections and concerns, brokers can help clients understand the critical role gap cover plays in protecting against unforeseen medical expenses. Through education, clear communication, and a focus on long-term value, you empower your clients to make informed decisions that support their financial and healthcare security. Gap cover is not just an add-on; it’s a strategic safeguard that ensures your clients are prepared for whatever the future may hold. For more information go to https://turnberry.co.za/broker-application-form/
