NFB FINANCIAL UPDATE Issue71 Dec2013
FROM THE CEO’s DESK A colleague, Nina, and I have been having a load of fun, defining what it is we think we as wealth managers do; more importantly what you (and us) as investors need and the “stuff” that makes up the storyboard which is the financial markets, the products and the ingredients which colour the landscape. This exercise is a good idea for any business, and it became patently clear to me that I, and most, if not all of my colleagues in Johannesburg, East London, PE and the beautiful Western Cape, are both pilots and passengers. We are employed by you to deliver something which we are also in need of! In various meetings with clients I like to ask the question as to whether they are happy, both with what the numbers say, but sometimes as importantly, with the rest of what it is that we hope makes NFB special i.e. meeting their varied needs. For instance, as reasonable bunny-hugging types, we thought we would change this newsletter to an electronic thing, sent out via e-mail. We were surprised by the number of requests to send printed copies as these were being carefully filed, as had in some cases, been the case for many years! But I digress…so it is back to the storyboard we go. Nina took the broad concept away and came back with a little guy I hope you will enjoy called “Morph”. This friendly little guy who hasn't any particular identity is important to the story because, as you might know, “morph” means a few things. Firstly, as a noun, “morph” in biology means an individual of one particular form, in a species, that occurs in more than one form. As a verb it means “change”; as in “he morphed into a better person”. So it is that our friendly little guy became a symbol for any of our varied clients. Each has a set of needs, be they personal, corporate, perhaps as a trustee, auditor or spouse, sometimes simply as a dependant of a client. The trick confronting NFB and all players in the Wealth Management profession is Mike Estment BA, CFP® the delivery of results that not only suit CEO - NFB Financial Services Group the individuals very real risk tolerance, but also try to match this with the very real need for growth well in excess of inflation, nett of all costs, taxation and any other drag on returns. The market continues to grow in offerings, complexity and regulation. I have a belief in something I believe Steve Jobs said and I paraphrase, “Simple isn't easy. It takes complexity and hard work to end up with something financial services group that works and is simple to use”. So the challenge at
NFB is to morph complex ideas, products, and tax rules both in your life and in your estate, into a plan that works for you. In doing this we need to ensure our own sustainability and continue to achieve this in a few ways. I have enjoyed the investment we have made in people, many of whom have celebrated ten, fifteen, twenty and in a few cases twenty fifth anniversaries with us. We have promoted and funded studies, provided they are in the broad interest of the business. We have invested heavily in all of the business units in technology and training, an ongoing necessity in a world where technology will assist us in reducing costs and radically improving service and communication. Just as we have allowed Nina to develop Morph and the Storyboard, we have other young, bright people guiding the senior teams on technology, and communication mediums like Facebook, Twitter, LinkedIn and others. We will continue to offer advice and hopefully you enjoy this. The challenge for us and our clients is a shared one. One thing that sticks out for me is that our worst enemies include time, indecision and poor advice. Managing these is important and getting stuck in to making time your ally as opposed to an enemy, is probably the most critical. Back to Morph. Like our parents before us, our needs and circumstances change over time. I was inspired by a talk I attended by the hirsute Kingsley Holgate where he, in his own very well read, but nonetheless unique way, explained that each of us are born with seven stones. Each represents an active decade in our lives, and he asked how many we had used, and how many were left! His point I adapt for my own purposes and would suggest that being 55 as I am, I have navigated well past midway and will soon be entering that important phase of mine and Lisa's lives where we will start harvesting from the crop of savings we have been fortunate to amass. Equally importantly, I have used the team and its experts to finesse my estate plan and asked that my will be kept relevant and up to date with important tax and estate duty changes. You should also do these things, and most importantly, in the blur that is modern living in South Africa and elsewhere, my parting shot is to enjoy the journey, smell the roses and engage with NFB, taking advantage of all of the services it offers. I would like to end, firstly noting my amazement at the way the year has flown by. The years do accelerate, as our lives advance. NFB as a group continues to grow, both as a result of loyal support of our many clients around the country and the effort and skill of each of our staff and management team. I would like to thank you all, as well as our Institutional partners, both in SA and abroad, for your continued support, loyalty and networking which is most appreciated. I wish all of our readers a safe and fun year end and health and happiness in 2014.
fortune favours the well advised