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WealthWise magazine Vol I/No. 6
FREE
South Africa July 2011
Offshore investments The time is now
A rise in interest rates should the equity market be afraid?
To invest or not in a wellness programme?
New! Business Column: Giving feedback Ask Shaun: Your questions answered Win educational CDs worth over R2000! Details on page 53.
In this edition... On the Cover 16
Offshore investments:The time is now
28
A rise in interest rates: should the equity market be afraid?
35
16
LifeWise
To invest or not to invest in a welness programme?
38 24
Business Column:Tell it like it is
Ask Shaun:Your questions answered
9 QuickRead: How to build confidence 10
When being who you are challenges the norms
13
Liberate your future
20
10
MoneyWise 15
QuickRead: Multiply with interest on interest
20
Get the growth without the multiple
26
In a tough environment, where should investors be looking? 2 WealthWise
BusinessWise 31
QuickRead: Know your business stages
32
The miraculous company allowing transcendence
42
Corporate Image and Grooming
32
CareerWise 43
QuickRead: The case of HR software
44 46
Showing remorse Expectations are everything
46
Agenda 47 48 54 56
This month we inspire you to... A dream come true: The Blades On the bookshelf Events, workshops and seminars
48
Regulars:
5
2 Contents 53 Competition 4 Foreword 58 Last Word 5 Mailbox 59 In our next issue 6 Contributors WealthWise 3
Foreword New Look Welcome back!
We have been very busy these days putting up our brand new July issue, with a newer look that we believe you will find more appealing, without compromising on the simplistic design we have made our mantra. We have also grown our fantastic features and articles with an interactive section: Ask Shaun, where you, the reader, will get the chance to ask our wealth manager expert, Shaun Latter, any wealth and finance related question you might have. This time Shaun has responded on the clever way to structure your budget or, as we all know, budgeting. Our business column continues this month with Optima’s fabulous advice on giving feedback (Tell it like it is), helping you learning various business skills you can’t be without. This month we feature a bumper MoneyWise section dedicated to investors, starting with Kokkie Kooyman, the best global fund manager in South Africa, who shared with us the basics of offshore investing in an exclusive interview for WealthWise magazine. We hope that our publication will inspire you to make every day, long-lasting changes to a wealthier future. All the best,
Denisa Oosthuizen Managing Editor WealthWise magazine
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Mailbox
WealthWise
magazine
Publisher REO Media Solutions
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Managing Editor Denisa Oosthuizen denisa@wealthwisemag.co.za editor@wealthwisemag.co.za Contributors Shaun Latter, Adrian Saville, Hendrien van Zyl, Carla Rossouw, Nikki Viljoen, Agnes Howe Chiweshe, Vimal Ichharam, The Three Gracez Sales and Marketing denisa@wealthwisemag.co.za Graphic Design REO Media Solutions Distribution www.wealthwisemag.co.za www.wealthwisemag.com Copyright All content and information within WealthWise publication is property of the Publisher and should not be reproduced, copied or entirely quoted without the prior approval of the Publisher, being protected under copyright laws.
Should you wish to make use of Each month we showcase your best any of the content displayed comments, feedback and suggestions for please contact us at WealthWise magazine. Have your say! denisa@wealthwisemag.co.za Write to us at or editor@wealthwisemag.co.za! The best editor@wealthwisemag.co.za comments will be published in our next . edition.
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Contributors Adrian Saville (right) is CIO of Cannon Asset
Managers, a niche investment management company. He holds a Visiting Professorship in Economics and Finance at the Gordon Institute of Business Science. Read Adrian's opinion on in our MoneyWise section, page 20.
Shaun Latter (right) is Director and Wealth Manager of Quaestor Wealth Management, where he specialises in Estate Planning and Investment Advice. He is a Certified Financial PlannerÂŽ and was recently announced as a finalist for the coveted FPI Financial Planner of the Year Award 2011. He will be regularly answering your most burning questions on wealth in our new monthly column "Ask Shaun" in the MoneyWise section, page 24.
Agnes Hove Chiweshe is currently the
Managing Member at Sequor Consulting, based in Johannesburg, SA. She has over 12 years experience in senior management and leadership roles within various leading organisations across South Africa. Agnes wrote the piece on employee wellness programmes in our BusinessWise section, page 35.
Nikki Viljoen is an Internal Auditor and Business
Administration Specialist and owner of Viljoen Consulting. She is passionate about assisting SMME’s to grow sustainable businesses. Read Nikki's opinion on unfair dismissal in our CareerWise section, page 44.
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Hendrien van Zyl is a learning solutions
specialist at Optima, a global specialist provider of training and expert support to small and medium enterprises (SMEs). Hendrien wrote our business column on giving proper feedback in our BusinessWise section, page 38.
Vimal Ichharam is the founder of consulting
company Wayfinders, helping businesses to expand their framework of business beyond conventions and transcend limiting beliefs. He is a natural explorer and his interests include, business, science, psychology, spirituality amongst others. Read Vimal's article on the revolutionary companies of the future in our BusinessWise section, page 32.
Carla Rossouw is a Professional Conference
Organiser based in South Africa. She writes reviews on Venues, Hotels and Restaurants as well as International Destinations. She will regularly write for our Agenda section reviews of fabulous places. Visit her website www.carlarossouw.com and read her review on page 48.
The Three Gracez company,
represented by sisters Anisah, Shaziya and Nabilah, provides a range of consulting services, assisting companies in achieving a competitive advantage based on service, better customer care services and improved corporate grooming and image. The sister wrote an article on corporate image and grooming in our BusinessWise section, page 42.
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LifeWise Quick Read: How to build confidence Building confidence is easy once you understand what is confidence based on and follow Dean Cunningham’s advice, the author of “Pure Wisdom” (see our review on page 54).
Set attainable goals. Too often we set goals that are too hard rather than realistic. This could lead to failure, eroding our confidence in the long term.
Make your goals flexible. Flexibility helps in revising and fine-tuning your goals. Achievable, flexible goals build your confidence.
Get inspired. Observing others performing and seeing the best talent in action do wonders for your confidence. Besides, it enables you to learn or perfect new skills while watching and copying others. A little inspiration won’t hurt either.
Speak to yourself… Yes, it might sound crazy, but words have the power to
build confidence. Use only words and phrases that you find meaningful and positive statements.
Understand that your behaviour does not completely define you. When you fail, you tend to believe that you failed as a person, losing confidence. Thinking that you are defined by your behaviour is wrong: consider your feelings, emotions, memories and thoughts too. These are all changing, so you as a person are changing.
Confidence build on action is shaky. If your confidence is built on your
actions or possessions – material things, titles, qualifications and so on – in one word, the things on which you define success, you should know that confidence is not all about success.
Confidence is about knowledge. Confidence builds on that part of yourself that is constantly changing. Recognizing what makes you unique – not the best, superior or inferior – is what builds confidence.
Accept yourself. This is the ultimate way of building confidence and knowing that no external pressures or opinions can change that.
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When being who you are challenges the norms by Leo Babauta
I believe in shaking up the way things are done. Often we’re stuck in a rut of doing things a certain way, because that’s the way everyone else does things, because that’s how it’s always done. Because it’s safe. But the normal way of doing things is often not the only way, nor the best way. Bloodletting and leeches were once the normal way of treating most illnesses until smart people started questioning the practice. Women for a long time were kept out of the workplace because they were thought to be too weak or emotional for many jobs. People used to throw away very little, and nothing was ‘disposable’ because that was thought to be wasteful … wait, maybe that wasn’t so bad. What if you could shake things up … just by being who you are? Without having to do anything but tell someone who or what you are? It turns out, that’s often been the case in my life. I will just mildly tell people who or what I am, and they start getting defensive, even if I haven’t actually attacked anything they do. People assume I’m judging them, just because I do things differently. They’re wrong — I don’t judge what others do, but rather just try to live my life consciously, and conscientiously. I often fail, but in the attempt is everything. Here are just a few examples from my life:
1. Vegan. Just telling people I’m vegan will cause all kinds of interesting
reactions. Often people will start to talk about how they were once vegetarian, or how they eat very little red meat, or only sustainably. Or they’ll start to talk about how delicious meat is, or how humans were meant to eat meat, or ask me if I just eat salad. I don’t mind any of this. Instantly, people are giving more thought to these questions than they ever have in the past. As for myself, the reasons are simple: I do it out of compassion for living, feeling, suffering beings who are treated as objects in our society.
2. Minimalist. This is probably the other
biggest thing I do that gets a reaction from people. They’ll talk about how they live with very little, or how they want to get rid of clutter, or ask me how you can be minimalist with kids. These are good discussions. We need to start talking about why we own so much, why we buy so much (not just physical stuff, but apps and digital content), why we’ve become consumers instead of just simply living.
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LifeWise
3. Self-employed. This is becoming more
and more common these days, of course, but the majority of our society remains employed by a corporation (or unemployed). I choose to work for myself, to be my own boss. And now that I’ve done it, I’m unemployable. I’ll never go back, and I’m constantly subverting people I know, showing them how to break from the chains of employment if they’re unhappy. There’s no reason we should work for other people if we don’t want to.
4. Car-free. Almost a year ago, we gave up
our car. We’d been slowly cutting back on car usage anyway, but finally giving up a car was liberating. Most people don’t understand this — they see the car as a symbol of freedom, of convenience, without realizing just how much we’ve been chained to cars, just how inconvenient it is for us individually and of course as a society. People often don’t know what to make of someone who voluntarily lives without a car.
‘What if
you could shake things up… just by being who you are?
’
5. Healthy and Fit. There are many
people, of course, who are healthy and fit — much fitter than me. But I’m healthier and fitter than most people I know, and while I don’t judge them at all, discussions always come up about health and diet and exercise whenever I visit. Choosing to be active on most days is a radical thing in our society. Weird, I know.
6. Unschooler. My wife and I homeschool
four of our kids, and that makes us weird. Even though compulsory schooling as we know it has only been widespread for a little over a century, and for most of human history, the majority of children were educated at home and somehow their parents found a way to deal with the socialization issue. Parents who send their kids to school get defensive when I talk about unschooling, which is a radical branch of homeschooling that throws the normal model of school (teachers dispensing knowledge to students who memorize it) out the window. We believe our kids should learn how to teach themselves, as many of us learned to do as adults. We don’t believe anyone can create a curriculum of knowledge that will prepare our kids for a future that can’t be predicted, for a workforce that is rapidly changing. Instead, they should learn how to figure things out for themselves, to solve problems, to work on their own without being directed. They’re the entrepreneurs of tomorrow.
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LifeWise 7. Goal-free. I’ve written about the radical notion of giving up goals, though it’s thousands of years old (Laozi taught it to me). But the idea of goals is incredibly ingrained in our society (myself included), that people think I’m weird for even suggesting you can live an amazing life of achievement without goals. As if goals were the only reason to do something great.
8. Ad-free. The advertising model is an old
one, and yet it’s still the predominant form of making money from creating things on the Internet. If you have a blog and want to make money, you probably have ads on your site. Even if the ads suck and no one wants to read them. We put up with them so we can get to the content. What if we could do it differently? I’ve been living without ads for well over a year, and I’m still surviving. It’s forced me to create things of my own, and I’m loving it.
9. Socialist. It wasn’t that long ago (less than a century) when you could say
you’re a socialist and not be too weird. George Orwell, Bertrand Russell, Vonnegut, Einstein, Steinbeck, Hemingway, Jack London … were all socialists of one sort or another. Now it’s seen as against the “American Way of Life”. I’m a socialist. I’m not for state-run socialism, but would consider myself more of a mutualist or a (peaceful) anarchist. I have to add “peaceful” because people assume anarchists want to bomb things, while I don’t believe in violence or the violent overthrow of governments. I believe we have given the corporations too much power over our lives and our society, that they’ve turned us into consumerist machines, and that we should have the freedom to run our own lives, and take the power back from the corporation by being self-reliant. That probably brings up more questions than it answers, but the questions are good things. None of these things defines me, but they are all a part of who I am. They all challenge the norm in some way, bring up questions and discussion that otherwise might not occur, and I believe those are necessary questions and discussions. Share your similar stories with us! Send your message to editor@wealthwisemag.co.za and we might just publish it in our next issue! Leo Babauta is the author and blogger of Zen Habits, a weblog about “finding simplicity in the daily chaos of our lives”, as he describes it. His weblog is viewed by the publication Time as one of the top 25 blogs worldwide. Read his blog at www.zenhabits.net.
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LifeWise
Liberate your future! by Nikki Viljoen
The following quote comes from Marilyn Ferguson, who says “Your past is not your potential. In any hour you can choose to liberate the future.”
Well there it is – my old friend “choice” has come to give me a real swift, sharp, painful kick up the rear end! Just when I think I’ve got the whole thing carefully sussed out, something like this comes along to remind me just how quickly my focus can wander and even more how quickly I can lose my footing on the path of my life. And yes . . . I often do write about what I most need to hear! Quite often over the last couple of months my thoughts have turned to the past and instead of relocating them to the present and the future, I have allowed them to dwell there, with consequences you understand – there are always consequences. I’ve allowed myself to dwell on relationships, both business and personal, that are no longer – I have wallowed in the hurt and injustice of the emotions that they aroused. I have grieved over the loss of animals and companions and friends and seeped myself in self pity – but ultimately at what cost? Sure these things have to take place and it is healthy to go through them, ironically though, I thought that I had dealt with this . . . or had I? Was this self indulgent rubbish or was this me actually going through that process that I thought I had already gone through? Who knows and quite honestly does it really matter? Probably not! What does matter though, is that I shrug it off and get myself re-focused because the more I continue down this path of self pity, the harder it will be for me to get myself back on track. I have to make a decision, a choice if you will. That choice is to turn away from the past, forget about it, wipe the slate clean and look to the present and the future. What do I want to see on the newly cleaned off slate? How do I want to populate it? I have a few ideas – do you? Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za.
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MoneyWise Quick Read: Multiply with interest on interest
Compound growth is the ultimate weapon in sky-rocketing your savings. Named by Albert Einstein “the greatest mathematical discovery of all time”, compound growth works beautifully in the financial arena – and you don’t have to be a math whizz to know why. Here is what you do need to know when earning compound interest (interest on interest):
Start early. One of the major implications of compound growth (sad, but true) is the fact that one cannot compensate or replace any loss of compound in later years, so the earlier you start saving, the better for your savings account and wealth. Even a year or two can make a huge difference on the outcome!
Compound growth equals wealth. The easiest way to create wealth is to leverage the power of compound growth. It would be difficult to achieve your wealth goals without this wonderful tool.
Time is money. We have all heard this saying and it is one of the absolute
truths when it comes to investments. An early start to invest means that the future value of your money will be higher than in the case of waiting another 1,2,5 or 10 years to start. As stated before, time is a crucial factor in harnessing the power of compound growth.
Make a plan. Set realistic, achievable goals when saving, investing and planning for retirement. Include the compound interest factor in your plans. You might not see the difference immediately, but prepared to be amazed in a couple of years from now.
Have patience to be rewarded. Watch how your investment performs in
1,2,5,10,20 years and so forth from now. Estimate the results and make the necessary adjustments. Don’t forget to include any increases on premiums or the annual growth of the investment fund in your estimations.
Multiply your investments. Set aside a reserve to be invested in compound growth fund. You can achieve even greater results when you increase the amount to be initially invested, look for a fund with a good return and annual growth rate (8%-10% should do it) and start today!
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Offshore Investments The time is now
Interview with Kokkie Kooyman (photo left) Head of Sanlam Investment Management (SIM) Global by Denisa Oosthuizen
Sanlam’s global investor and fund manager Kokkie Kooyman shares with
WealthWise readers the basics and attractiveness of offshore investing in the current global economy, together with insights into the risk and investing profile of South Africans. WealthWise magazine: In short, what are offshore investments? Kokkie Kooyman: With offshore investments one can invest in foreign asset classes, for example property, shares, equities or government bonds or simply leave your money in a deposit. Government bonds and deposit yield lower returns – around 1,5% annually in a deposit in UK and 2% in Europe. In South Africa, it will be around 7%, so taking money and investing in a foreign deposit would not be as wise, unless the SA currency, the Rand, will decrease its value against the other currencies, which is something one cannot really forecast. We believe property in Europe is still going to have significant problems. In general, while property prices might be lower, as is the case in America, the transaction costs are quite high. That is one of the reasons why we prefer equity investing in shares. Besides, this is a liquid investment where if you need the cash tomorrow, you could get your cash back. Over time, investing in shares can give you best returns. WealthWise magazine: Is now a good time to consider offshore investing? Kokkie Kooyman: These returns are driven by two things: the returns that the companies generate and if the rate is low. If you buy cheaper shares, you can generate a good return when it gets re-rated on the banking side. If the bank rate goes from 0.5 price to net asset value to one times net asset value, that is a 100% return. This happens without the company doing anything and often because it was initially mispriced.South African companies are not cheap at the moment, neither expensive, however the growth rates won’t be higher at least for the next couple of years, somewhere around 3%-3,5%. So there is JSE, which won’t be such an exciting market for the investors, and the offshore in which you have a choice of high growth markets: China, India, Indonesia, Turkey, Brazil (Russia if you want to take risks) and low-growth, but extraordinary cheap markets like Japan. Even in America some sectors are undervalued and Europe looks cheaper at the moment, but we don’t believe in investing in Europe yet as it poses higher risks.
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MoneyWise I was recently in Spain, Portugal and Japan in a short space of time. What is problematic in countries like Spain and Portugal is the unraveling of the mistakes that these countries made in the past decade. Spain, Portugal, Greece or Ireland will still go through two or three years of restructuring, whereas Japan, we thought, has already done a lot of its restructuring. Then you also have the case of companies spread globally like Phillips or SAB in South Africa, which are showing very good growth in Asia, therefore global investing is not only about selecting countries, but countries that are represented in the markets that are growing faster. This makes it more difficult for the investor to become categorical. Our approach is to look for companies that are mispriced and should do well in their own environment. Let me give you an example. We have recently visited a bank in Japan. Japan’s population growth rate is shrinking by 7%, however this bank is situated in an area where the population growth is 3%-3,5%. People are migrating towards the area, there are new factories and new business.
‘ Our approach
is to look for companies that are mispriced and should do well in their own environment
’
There are areas in Japan that are showing a good growth, despite of this year’s disasters. In conclusion, you have to look at the companies, the countries and lastly, at the industries as well. There are certain industries where the dynamics are changing incredibly fast, like IT. In Vietnam and Taiwan, people are prepared to work for such low wages, that they assemble computers half the price that a company like Dell does it. You find that these companies – Microsoft, Dell, HP and so on – are being constantly attacked, therefore it is very important to also invest in industries that have strong – as Warren Buffets likes to call them – moats. Ideally an investor would look for a company or industry where the players inside the industry have strong moats. South African Breweries (SAB) is a good example, it has a dominant market share. It would be difficult for a small brewer to compete with SAB. In smaller companies, they can use technology and innovation to grow to gain market share. The bottom line is that, outside of South Africa, there are various economies in different states of flux and many more opportunities for investors than inside South Africa. Even in shrinking countries – like America and UK during the banking crisis, where a good number of banks were closed, opportunities for other banks – smaller banks – do exist. There are, globally, smaller players who can do well in difficult circumstances.
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MoneyWise Globally, the investor has a bigger stage, but what is important for him is to decide whether he will invest all by himself or select various shares and invest via the Internet on a global platform. The investor should have the right knowledge. I would advise investors to rather go and invest with a good fund. Some funds are so big that cannot invest in the smaller opportunities – it’s a different kind of game. If you want to invest offshore, it’s wise to invest with smaller companies that have a good long track record. WealthWise magazine: Is it more recommended to have a wider diversity in the offshore fund – different countries, different companies? Kokkie Kooyman: Good question. With our own fund, we have just 50 shares in the portfolio, whilst an average global fund will have 200 shares. Imagine if you have 200 shares and the average position of just 0,5%, you will not be able to track any individual share that makes money for you. Even 50 might be a bit too much, but we always aim for 40 shares where the individual share will make a difference. One should diversify because there is always risk. Think about having all your offshore investments placed in Japan when the disaster strikes. It would be highly risky. Our portfolio focuses on moderate risks, younger companies with high growth potential and diversifying in four or five different economies. To diversify the risk we don’t need to be in as many countries or economies as possible. We do diversify through industries, but not too much. The more you diversify, the more you will deselect other opportunities that you think they will really do well. Contrary to what is being taught, one should still diversify its portfolio, but not so much. If you diversify too much, you get an average return. Then you might just as well buy an index without any costs involved. WealthWise magazine: In which situation will an offshore investment be more attractive to investors than a local portfolio? Kokkie Kooyman: An investor should take into account two things: the growth rate which is not very significant in South Africa, partly because the consumer debt levels are still high. South Africa has not reduced its debt levels. A more than average growth results from either creating more jobs or taking on more debt (increasing spending). In South Africa, job creation is not accelerated and the consumer debt levels are already high. This means we cannot get more growth at the current state. A retail store like Truworths, for example, can only accelerate its growth by taking market share from its competitors (Foschini as an example), but not counting on the economy growing rapidly. In China, a jewelry retailer opened 60 stores per month. There is an immense growth potential.
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MoneyWise The second thing that is encouraging for a market is the lowering of interest rates. A lower interest rate stimulates spending. Interest rates in South Africa are set to increase for the next three years. This will translate in higher expenses and less money for spending. Higher interest rates and high debt levels are in general not good for an economy or the market. South African market will not be a very exciting market, there might be individual company opportunities, but these are more difficult to find. WealthWise magazine: How can financial advisers get involved in waking the public’s interest towards investment tools? How should the population be motivated to use the cash surplus (also resulted from salary increases) for investments? Kokkie Kooyman: The increase in the disposable income should be used to reduce debt or increase savings. We should take into account take interest rates will go up, which means that the economical climate won’t be so strong. The most important thing to do when interest rates climb is to reduce debt. South Africans are generally living way above their means. We have a new black middle class that has been created, which brought more debt, whereas the white middle-upper income class had already acquired houses etc. It is very difficult to look at an average debt level at the moment. A part of the population will remain high indebted, while the other will have no or low debt levels. As investors we tend to look at the average debt levels. A financial planner though will be able to look at the individual client’s position. In a higher interest rate environment, the first advice should be reducing debt. If the client has a surplus of cash, this could go towards investing and offshore investments are a viable opportunity. WealthWise magazine: In your opinion, what would be the risk profile and the investing ability of South Africans, compared to other countries? Kokie Kooyman: It’s fascinating. If you compare for example the South African consumer to the Asian consumer, the latter will have high savings. But at a more indepth look, you will find that in these Asian countries there is no good medical aid or a better pension plan. Effectively, the Asians savings rates happen because they have realized they have to save, whereas most South Africans will already have a medical aid, insurance and other such products that lower their savings. I believe though that the average South Africans have lower savings, except the Americans and British, for example, who consume and build up debt. The biggest concern in South Africa is that our population starts saving when it’s too late. There are countless studies that show the difference between starting investing at an age of 20 as compared to 40. It’s enormous. Kokkie Kooyman is responsible for managing the Sanlam Global Financial and Sanlam Global Best Ideas Funds. He established SIM Global in 2004. Kokkie can be contacted at +27(0)21 950 2625 or kokkiek@sim.sanlam.com. For more information about SIM Global, visit www.simglobal.co.za.
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Get the Growth without the Multiple by Dr. Adrian Saville Dr Adrian Saville, CIO of Cannon Asset Managers, looks at ways to overcome the curse of overpaying for growth.
In his State of the Union address in January this year, US President Obama noted
that for the US to “win the future” it needs to “out-innovate, out-educate and outbuild the rest of the world.” This notion implies that the countries of the world are engaged in a “win-lose” or zero-sum game. In President Obama’s version, the US can only “win” by “beating the rest of the world”. Whilst this view can be understood from an emotive perspective, it does not hold water when viewed in light of the evidence of global prosperity. Through a broad sweep of time, the evidence we have is that as countries have advanced and moved up the income scale, this gain has not involved a downward move for others. Rather, a global middle class is burgeoning as a result of increased world trade. Art Carden writing for Forbes about the State of the Union speech said the “address conveyed an incorrect zero-sum worldview in which what others gain comes at our [the US’s] expense”. As economics has shown over and again, international trade creates wealth. The same follows from international capital flows, including foreign direct investment. This “win-win” argument can easily be evidenced by anecdote. In the two decades before World War I the world economy enjoyed rapid expansion that was associated with vigorous gains in international trade and brisk growth in foreign investments. Between the end of World War I and the end of World War II, however, countries turned inward in a xenophobic-styled reaction to war. The result was a rapid slowdown in global economic growth, sluggish gains in international trade and a retrenchment of foreign investment. By contrast, the “golden age of capitalism” that followed World War II saw a reversal in each of these patterns: capital flowed more smoothly across borders, trade between countries grew quickly and the world economy enjoyed its greatest expansion in modern times. In short, the example illustrates that voluntary exchange is a positive-sum game. Bringing this argument into today’s setting, if the Chinese economy growths this doesn’t imperil our ability to get richer, too. Figure 1 (next page) illustrates this point by showing the level of US exports to mainland China. As the figure illustrates, US exports to China have risen along an exponential trajectory in the last two decades. It is quite evident that growth in the Chinese economy has benefited the US economy and, by extension, other trading partners.
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MoneyWise
An example of the win-win potential emerging from China’s growth comes from that country’s cinema industry: China has been adding four or more new movie screens per day to its total of over 6,200 screens. This means that Chinese cinema owners are buying digital projectors, screens and other equipment and technology, often from US companies that are industry leaders, such as Ballantyne Strong, RealD and IMAX Corporation. There is more to come. China’s box office grew 64 percent in 2010 to $1.5 billion, on top of more than 40 percent growth in 2009. The Chinese market is expected to reach $7.0bn and 20 000 screens by 2015 with positive implications for equipment and technology firms that supply the industry, regardless of their country of origin. Taking the argument back to the US, the issue is not so much that manufacturing in US is dying as it is changing. In fact, the US remains the world’s leading manufacturer. According to Bank of America Merrill Lynch, if US manufacturing were a
‘middle A global
class is burgeoning as a result of increased world trade
’
national economy, it would be the eighth largest in the world, worth $1.6 trillion a year, while the Cato Institute has noted that for every US manufacturing industry in decline there are two that are growing. Industries in the ascendency are those which gain the most from global trade, notably materials and technology. In these two instances, foreign sales of US materials and technology firms account for over 50 percent of total sales (see Figure 2 on page 20).
Figure 1: US Exports to Mainland China ($m)
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MoneyWise Close behind is the energy sector which exports some 48 percent of sales. Significantly, there are US companies which are benefiting from global – and especially emerging market – growth but which do not trade on high multiples. Thus, one can access the prospective growth without paying a high price. To this end, research undertaken by Benjamin Graham and David Dodd in the 1950s pointed to the use of Cyclically Adjusted Price Earnings (CAPE) ratios to indicate the relative value of equity investments. A CAPE ratio in excess of 16 indicates that a share is overvalued, while a CAPE ratio below 16 points to value. Importantly, this figure of 16 times is not random: it translates to a real yield of about 6 percent (before any growth from earnings power).
Figure 2: Foreign Proportion of Sales by Sector (S&P 500)
We have found that the CAPE ratio is as effective an indicator of value at the country level as at the individual stock or sector level. On this basis, the Chinese market is severely overrated on a CAPE ratio approaching 30 times (see Figure 3 on next page). By contrast, the ratings of Russia, Spain and Italy are reflecting considerable value on multiples of 9, 12 and 10 times, respectively. Perhaps more importantly, within each of these countries, there are companies which are trading on low CAPE ratios, but which are exposed to global markets. These companies are priced for the prospects of the local market, yet are exposed to global growth. For example, while Spain is on an already tempting CAPE ratio of 12 times, Santander Bank which is driven to a large extent by Latin American performance is on a mouth-watering CAPE ratio of nine times and trading at less than book value. In Italy, with the market on a CAPE ratio of 10 times, a company like Benetton can be bought on a dividend yield of just less than five percent and a price-to-book multiple of 0.5 times. Importantly, 65 percent of Benetton’s sales take place outside of the country.
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MoneyWise In this vein, Lukoil, one of the Russian oil majors, is priced on a CAPE ratio of six times with an exceptionally strong balance sheet. The price-to-book multiple of less than one makes this cash-rich oil firm an excellent prospect in a world of buoyant and rising oil and gas prices. Financial history is littered with examples of investors confusing economic and company growth prospects with potential investment success. The reality is that there is almost no correlation between the two. In this vein, Jay Ritter observed in 2005 that “… economic growth rates are … irrelevant to stock returns”. By seeking out value – both at the country and the stock level – investors can enjoy substantial investment growth by overcoming the trap of paying for growth. Adrian Saville is CIO of Cannon Asset Managers and holds a Visiting Professorship in Economics and Finance at the Gordon Institute of Business Science. Visit Adrian’s blog at www.adriansaville.com. Cannon Asset Managers is a niche investment management company that has successfully applied the philosophy and principles of value investing, an investment management approach that has consistently demonstrated a clear advantage over other philosophies. The company manages domestic assets as well as global investment portfolios, delivering portfolio results to clients who include companies, pension funds, insurance companies, trusts, high net worth individuals and retail investors.
Figure 3: CAPE Ratios
For further information, contact Cannon Asset Managers and Adrian Saville at +27(0)11 463 3140 or +27(0)82 772 9933 or visit www.cannonassets.co.za.
WealthWise 23
Ask Shaun Shaun Latter, Director and Wealth Manager of
Quaestor Wealth Management and Certified Financial Planner® will answer your most burning questions on wealth management, estate planning and investments. Send your question(s) to Shaun at editor@wealthwisemag.co.za and read his answer(s) in our next edition!
Question: “I am trying a new thing called “budgeting” and I was looking
for information on the percentage of your income that you should spend on your monthly expenses e.g. 40% on your house, 25% on your car, 15% on groceries etc., but couldn’t find any. Could you help me with advice on this?” Marius McAlpine, Elarduspark
Shaun says: Budgeting is often seen as a grudge exercise where denying
yourself simple pleasures seem to be the common theme. Truth is, the role of budgeting should be to ensure that you are spending it in a way that brings you the most enjoyment and fulfilment. In other words, it should rather be seen as a ‘spending plan’. Of course, we live in a country where people are not saving enough to maintain their spending patterns later in life and also take on more debt to satisfy short terms splurges. The key to this process is to try and balance your lifestyle both now and into the future. How much one should be saving vs spending on debt is different for different stages of life. A family man in the early stages of his career will, in all likelihood, hold a lot more debt than a woman nearing her retirement age. At the same time, because of high debt obligations and little disposable income, our young family man will probably also be less focussed on savings than his older lady counterpart. So what are the guidelines?
Debt: Although it should go without saying, debt should be kept to a minimum
and, ideally, limited to long term debt of a home and a car. Short term debt such as clothing accounts and personal loans means that your spending plan needs some serious attention and first port of call would be to get rid of this type of debt as soon as possible. In a worse case scenario, it would be prudent to make sure that your total debt repayments do not exceed 30% of your gross income. When considering buying a home or car, be sure to factor interest rate increases of at least 3% as a buffer in your spending plan – we are living in a very low interest rate environment and all economists agree, the next movement is UP!.
24 WealthWise
MoneyWise Savings: There is no simple answer to this
question; however, you should potentially look at three key areas in your ‘savings plan’: 1) Short term savings (Emergency Funds) Your emergency savings should amount to an equivalent of 3-6 months income. Typically, these funds should be kept in a very low risk instrument and be available within 7 days notice. Options could include money market accounts or funds as well as in an access bond (if you have a bond). 2) Medium term savings (Special Goal/rainy day) These funds are there to cover anything from a special holiday to school education and the amount will differ from person to person depending on the required goal. If there is nothing specific, then this could be the holding bay for discretionary monies from disposable income not spent on lifestyle needs. 3)
‘ Your emergency
savings should amount to an equivalent of 3 to 6 months income
’
Long term savings (Retirement/Financial independence)
This is by and large the departure point for financial planning and wealth creation. In essence, this is what is going to sustain your lifestyle after you stop working. As with any investment plan, the earlier you start the better. Providing you start saving early in your career and you invest in an above average fund holding an appropriate spread of assets classes, the rule of thumb suggests that putting away 15% of your income for a period of 40 years will in all likelihood provide an easy transition into ‘retirement’ Once the basic rules of savings and debt are out the way, the balance of your income is really for you to determine. Some people may prefer to spend more on entertainment and less on a vehicle or vice versa – the key is to make a conscious decision for your money to provide you with the lifestyle you want to lead and not be bound by what others are spending their hard earned money on. Shaun Latter is Director and Wealth Manager of Quaestor Wealth Management where he specialises in Estate Planning and Investment Advice. He is a Certified Financial Planner® and was recently announced as a finalist Shaun was a finalist and rated in the top 3 countrywide for the coveted FPI Financial Planner of the Year 2011. In addition to this, he has recently become a Certified Life Coach, has hosted the popular money show “Financially Speaking” on CNBC Africa , holding a wide media presence with regular contributions on radio, in print and online. Shaun can be directly contacted at +27(0)11 575 3159 and shaun@quaestorwealth.co.za.
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In a tough environment, where should investors keep looking? by Marriott Asset Management
With inflation expected to rise and interest rates likely to follow suit, a consumer
under pressure and an expected downward adjustment of many asset prices, where should an investor turn? Marriott Asset Management provides some perspective on these issues and gives investors some pointers. During 2010, the South African investment environment was characterized by foreign demand for bonds and equities, a strong rand and consequent low inflation. This resulted in further interest rate cuts and an economy that favoured consumers while exports and the mining sector were impeded. The extraordinary success of the Soccer World Cup elevated South Africa in the eyes of the world and left a very positive feeling in so many minds However, the outlook for inflation has deteriorated markedly. Inflows of foreign funds during 2010 contributed to an 11% appreciation of the annual R/US$ exchange rate, helping to contain inflation at historically low levels. We expect a decrease in the quantum of foreign inflows into South African capital markets. Further appreciation of the rand from current levels is therefore highly improbable and the buffer against the inflationary impact of excessive wage increases, hefty electricity tariff hikes and rapidly rising food and energy prices will be lost. Approximately 23% of the inflation basket is a measurement of food and fuel prices which are directly impacted by the currency. We consider inflation to be the most important economic variable as it influences the income yield and income growth prospects of all asset classes. In addition to this it has a profound impact on the lifestyle of income-dependent investors as well as being the benchmark for real returns. The South African equity market has shown strong performance under the favourable conditions. But local equities withforward yields in the region of 3.4% based on dividend growth consensus forecasts for 2011 (which may well prove to be overly optimistic) are below their historic averages. This, together with the expectation that earnings growth, and hence dividend growth, from local companies are likely to be subdued in the face of a struggling consumer, leads us to believe equity valuations are demanding. Given this, we are not convinced that the equity bullrun will endure. 2010 saw dividend growth of some 16% generated by South African companies. In part this reflects a resumption of certain dividends that were waived during the financial crisis, while consumer spending also served to boost company profits.
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MoneyWise
However, we are cautious about further growth in consumption. Although historically low interest rates have allowed consumption to revert back to near pre-recession levels, the South African consumer remains overly indebted and under-saved. Consequently, any increase in interest rates is likely to constrain consumption significantly. With the likelihood of rising inflation and higher interest rates in the years ahead, we anticipate that the consumer will have less spending power which will ultimately hamper dividend growth of many SA companies. With expensive local equity income streams, offshore opportunities look far more attractive. Dividend yields of first-world mega-cap stocks are unusually high especially when one considers local alternatives, thus equity valuations in these
‘ The South African consumer remains overly indebted and under-saved
’
markets are presenting investors with a significant opportunity to generate inflationbeating returns over the next five years. In addition, higher South African inflation is expected to translate into a depreciating rand. Investing in offshore markets, would offer investors a hedge against a weaker currency while simultaneously affording the opportunity to diversify risk. Investors who do not wish to invest offshore should look to the more defensive local sectors, such as pharmaceutical, food, and telecommunications. Such companies are able to protect their turnover and pass on rising costs to consumers, which will enable them to prevail in the current market conditions. The South African bond market has benefited from increased foreign demand and the impact of a strong rand on inflation. These dynamics are unlikely to continue due to rising inflation and an anticipated decline in foreign demand. We therefore favour inflation-linked bonds due to their attractive real yields and inflation hedged income. Property fundamentals remain weak and, given the longer-term inflation outlook in South Africa, we continue to consider property to be an expensive source of income. Property has strong bond-like characteristics, resulting in the yields of both asset classes being highly correlated. Marriott Asset Management began as Russell & Marriott in Durban in 1862.The company offers a number of investment products, including local and international collective investment schemes. Acquired by Old Mutual in 2005, Marriott forms part of the Old Mutual Investment Group SA as an independent boutique. For more information contact Duggan Matthews, Investment Professional at Marriott Asset Management at +27(0)31 765 0705 or +27(0)71 951 8449 or visit www.marriott.co.za.
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A rise in interest rates: should the equity market be afraid? by Plexus Asset Management
The main concern facing South African investors should not be whether there will be a rate hike, but rather when it will occur and the quantum of the change, says Paul Stewart, managing director of Plexus Asset Management. “With inflation concerns increasing throughout the world and South Africa being one of the many countries at record low interest rate levels, the South African Reserve Bank is coming under continued pressure to keep inflation at bay,” says Stewart. “It is well documented what happens to the bond and money markets during changes in the interest rate cycle,” he says. It is just as important to try and determine the impact on equities, especially in the South African environment and, more specifically, in the various sectors.” Plexus thus conducted a study, comparing the performance over 11 years of the FTSE/JSE Resources, Industrial and Financial indices during different interest rate cycles. The accompanying graph on the next page shows the performance of the various sectors, as well as the South African Repo Rate since October 1999. “At first glance there appears to be a reasonable correlation between the direction of interest rates and sectoral performance, but this is actually only over a short period between 2006 and early 2009,” Stewart points out. A further analysis of the respective performances is considered in the accompanying table shown further below. To conduct the analysis, the interest rate cycle was separated into DOWN (interest rates moving down), FLAT (interest rates remaining flat) and UP (interest rates moving up) cycles, while the average monthly performance per JSE sector was calculated. The results as well as the number of months per cycle are shown in the Number of months
Resources Index
Industrial Index
Financial Index
DOWN
51
1,04%
2,06%
1,78%
FLAT
54
2,46%
1,37%
1,55%
UP
34
2,21%
0,74%
-0,32%
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MoneyWise According to Stewart, an interesting outcome can be detected. “While the Financial and Industrial indices performed progressively weaker as interest rates moved in the cycle from down to flat and then up, the Resources Index showed the weakest performance in the down cycle,” says Stewart. “Normal expectations would suggest that companies perform better with a less onerous interest rate obligation. With resources, however, the inflation concern seems to have a greater effect. “As interest rates move into a down cycle as inflation drops, the effect is a moderation in commodity prices,” says Stewart. Gold in particular is regarded as an inflation hedge and rises on the back of increased inflation concerns. “The negative effect on financials in an up cycle can be explained by the higher debt burden on borrowers from banks, resulting in fewer loans and worse debts, while bank margins on loans remain unchanged,” he says.
Paul Stewart is Managing Director of Plexus Asset Management. Founded in 1995, the Plexus group of companies is an independent financial services provider that specialises in providing innovative, unique and holistic financial solutions for both corporate and individual clients. In South Africa, Plexus Holdings comprises of Plexus Wealth Management (financial planning) and Plexus Asset Management (investment management services and solutions). For more information, phone 021 970 2400, email info@plexus.co.za or visit www.plexus.co.za.
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BusinessWise Quick Read: Know your business stages Any business owner’s dream is (or should be!) to have a commercial, profitable
enterprise that works without his presence. Now how do you get there? According to international business coaching company, ActionCoach, these are the stages you will have to go through when building your dream business.
1)
Mastery. It might seem the ultimate “stage” in building a business, but in
2)
Niche. With this second stage comes stability and the ability to predict cash
3)
Leverage. The third stage brings the systematizing of the business for
4)
Team. The fourth stage is critical and structures the company for immense
fact mastery refers to being able to find stability in your business. Coach Fergus Ferguson from ActionCoach likes to put it this way: “from chaos to control”. This step is very important in building the foundation of a successful profitable business. flow. The company should be in a growth stage, having already all the basics in place. And it should be already a commercial profitable company. Fergus’s advice: “Don’t venture into marketing unless you have the basics in place”.
efficiency. The systems should work flawlessly. This is the business stage where the company is profitable, produces extra cash and works without the owner’s involvement. growth. By empowering a team to work in the business, the entrepreneur can finally acquire more time to think about other aspects of business development.
5)
Synergy. This is the happiness stage, when the company performs as a well-oiled machine. “The company now works on auto-pilot and this might be the best time to hire a general manager”, says Fergus. 6)
Results. If all went well so far, the last stage should bring you the desired
results. In this stage, the entrepreneur is looking at new business opportunities, a potential for franchising or selling the business and so on. The key word is “diversification”. With massive results generated by the business, the entrepreneur has gained the freedom, time and money he wanted and is able to pull the company in the most daring directions.
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The Miraculous Company Allowing Transcendence by Vimal Ichharam
There is a revolution in the making. The world of work is changing. Some of the symptoms are obvious and yet some are more sub-tle. Giants of our time have fallen. One need only look at the headlines at the close of the last decade to find the obituaries of once great companies. Companies that persisted for over a hundred years prior to that. What did they not recognize as they flourished?
The global economy is still reeling in shock from the surprise. Yet this should not have come as a surprise. The corporate engine has been slowly manufacturing its way to the crisis. It has been too preoccupied by the corporate scoreboard to notice that the pro-verbial horse had run its course and that flogging it harder would only accelerate its demise. Nothing can grow forever without be-coming toxic to itself and the ecosystem in which in operates. Companies are no different, they are subject to the same rules of nature. Companies are an expression of human potential, the manifestation of our ingenuity and desire to transcend. They are a vehicle through which we bootstrap ourselves to a richer and more diverse experience of life. But something has gone awry. The entity [the company is a true entity, sentient almost with its own legal status and rights] that was given birth to, in the service of humanity, has become the master. This state, the broken economy, the chaotic society, is not a failure though. In the mechanistic world of cause and effect it may seem so. The post-mortem may suggest that the crisis reflects a failure of governance, or a failure of ethics or perhaps even a failure of leadership. If it were not these factors, the guru’s of business would surely identify others. After all, can humanity make a claim to progress if it doesn’t learn? Can humanity claim to be relevant if it is not in the driving seat of its own experience and destiny? This model has certainly held the corporate world in good stead for the last century. It has made leadership relevant, it has made knowledge a prized commodity and it has made action the prime measure of purposefulness. But now, as the corporate world steadies itself in the aftershock of the economic catastrophe, and begins the process of reconstructing the commercial world according to the rules it knows best, the environment seems to have crossed over an inflection point with the single minded purpose of moving ahead according to its own rules. It always has, and it has been evolving silently and relentlessly beneath our awareness until we become ready to meet our creation and someday know ourselves. We are on course towards this moment.
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BusinessWise Nature has an uncanny knack of renewing itself. It sustains because it renews. The chaos that seems to be pervading our experience is the hallmark of standing at the inflection point, a point of significant renewal. The experience is exaggerated in the global eco[nomic]-system because it is a focal point of human experience and endeavour. The mechanistic rules of the industrial era that have governed the world of work up to present day are no longer sufficient to sustain the progress that the commercial world has known. A shift has occurred which is inviting the world of work to follow natures process of renewal, and nature is single minded and relentless in its goal. Nature seeks to transcend i.e. to be or go beyond the range of limits. Longer hours, smarter people, better governance, more regulation, more legislation, better use of capital, more cost control, more credit savvy are some of the common tools in use today to get the corporate score back on track. They have proved their effective-ness and great companies are the ones that have used these tools well in the past. However, they don’t represent the means for radical change and revolutionary growth that they once did. Even the most sophisticated corporate strategies in development to-day are likely focussed on ways of using these tools better. If anything corporate boards are more likely to temper down expectations than to change their tools. To be in alignment with the emergent [coming into being or becoming prominent] future requires letting go of old paradigms. Letting go requires a bold shift in consciousness, it requires relinquishing control and it requires non-attachment to preserving the status quo.
‘Letting go
requires a bold shift in consciousness
These are not terms commonly found in the dictionary of commerce. But then, neither were terms such as social networks, digital media, emotional intelligence in the dictionary a few short years ago. The new phenomena shaping the landscape of business today are a reflection of the new consciousness that they spring forth from. They reflect the desire to connect, to interact, to explore and to create, all in the service of transcending.
’
Whilst the means may have changed e.g. business has shifted from the agricultural age to the industrial age to the information age etc. the underlying drive to transcend has always been there. It is natures law. It is reflected in what we create, and it is reflected in our biology.
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BusinessWise
The miraculous company is in flow with the laws of nature. This is not about the green movement. It is about recognizing that the a company is part of an organic system, one that is more connected today then ever before, to every aspect of life as we know it. It is about recognizing that renewal is an inevitable part of the cycle of transcendence, which means that change or crisis is not to be resisted but to be recognized as the calling to evolve towards a higher way of working. It is about recognizing that the world we create is a reflection of where human consciousness is and that in order to move forward or evolve with harmony, requires attention to the inner source of being from which creation springs. When companies can operate from this level of consciousness, then miracles can happen.
Vimal Ichharam is the founder of Wayfinders, a
consulting company that supports organizations to go beyond ordinary ways of work, by creating value through expanding the framework of business beyond business convention, creating new possibilities and transcending limiting beliefs. Contact Vimal at +27(0)83 786 2793, email vimal@wayfinders.co.za or visit www.wayfinders.co.za.
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BusinessWise
To invest or not to invest in a wellness programme? by Agnes Hove Chiweshe
Managing an organisation in this uncertain economy can be incredibly
challenging. Most businesses are experiencing decreasing revenues, shrinking budgets and increasing uncertainty, and thus think that they cannot afford to invest in their employee’s wellbeing. NOW, more than ever, is the time to focus on employees — the key to your organisation’s future success. Employee wellness programmes have been proven to pay dividends when it comes to improving productivity, morale and overall health costs within an organization. This has lead to a new movement as numerous businesses of different sizes are searching to find the program that best meets their workforce's needs and the goals of the business. Wellness programmes available can range from simple health screenings to the provision of more complex on-site and online tools and programmes. The programmes may include different elements, but their objective is the same- they assist employees get healthier and they save money.
Why should employers care about employee wellness? • • •
The average employee spends over 40 hours at work a week, The average employee has 50% of his/ her meals at work, Normally employees exercise during working hours.
Why should they invest in wellness programmes? • • • • •
Good for the organisation’s brand, Demonstrates care for the employees, Increases productivity and creativity, Reduces absenteeism and sick leave, Promotes longevity and healthy living.
The impact any wellness programme has on employee health is dependent on the design and implementation of the programme. The savings are not merely financial; they also include areas like employee productivity and absenteeism.
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BusinessWise Employers have began to realise that employees are their most important asset, and are looking to assist them in enhancing the quality of their lives and their sense of wellbeing, while also taking care of the bottom line. Studies have shown that employees, who are in good physical and mental health, are more likely to come to work on a regular basis and perform better while they are at work. A few employers are aware of the fact that their wellness programmes need to be effective in order that the amount of money they invest in their employees receives a return on investment.
‘Employee wellness programs are not a ‘one size fits all’ solution
Some employers create wellness programmes because one of the managers believes the employees will find the programme attractive, yet the programme does not fall into the company’s overall strategy, and does not yield the envisaged results. Where many wellness programmes fail is when they run plans that are not needs based, resulting in low utilisation levels. They encourage employees to participate, but in the end they don’t change the health risks of their employees.
’
Currently many managers are asking the question: What does a robust wellness programme look like, a programme that stands the greatest chance of enhancing employee health and saving the company money? It is important for every business owner to understand that employee wellness programs are not a ‘one size fits all’ solution. While a few large businesses may have the capacity to invest in an extensive employee wellness program, smaller businesses can also become involved with less expensive initiatives. While establishing an employee wellness program does require some financial investment, it mainly requires time, effort and creativity. Employee wellness programmes are normally launched by an initial wellness day, at which a health assessment for employees is conducted. The health assessment educates employees about personal health issues, and also provides valuable data around which an effective wellness programme can be de designed, which will help improve the wellness of most of the employees. It has been estimated that close to 90% of all healthcare costs are due to preventable illnesses, it thus makes sense for employers to be at the forefront of effective wellness management.
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BusinessWise Employee wellness programs are an investment in any business' most important asset, their employees. Studies have shown that employees, who are in the best physical and mental health, are more likely to come to work on a regular basis and perform better when they are at work. Strategic wellness management allows employers to offer an integrated, effective, comprehensive approach to preventative health and wellness. A report from the Employee Assistance Professionals Association (American Business Publishing 2002) showed that for every dollar invested in wellness, there was a US $5-$7 saving or increased return for the company, a 66% decline in absenteeism among those offered company sponsored support programs, and a 37% reduction in sick leave.
High levels of employee turnover, and absenteeism have become a rising cost for any business. Business owners need to do as much as they can to ensure they retain a high quality of employee. Businesses with employee wellness programs have also found that they can use their programme to attract employees who value the emphasis on employee welfare. Strategic wellness management programmes have a very positive impact on recruitment, retention, morale and productivity. When an employer partners with employees to share the responsibility of affordable health care costs, because it is everyone’s problem, and a culture of health and wellness is developed within a company. The value of investing in a strategic, well constructed wellness programme has been proven in small, medium and large companies. Employers need to seize the opportunity for the only true way to reduce healthcare costs, prevent illness so the cost spiral does not continue. Agnes Hove Chiweshe is currently the Managing Member at Sequor Consulting, based in Johannesburg, SA. She has over 12 years experience in senior management and leadership roles within various leading organisations across South Africa. For strategic comprehensive wellbeing management for an organisation of any size, contact Andrew Morton at (011) 475 8915, email andrew@thehrhub.co.za or visit www.outsmart.co.za and www.thehrhub.co.za.
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BusinessWise
Business Column Tell it like it is by Hendrien Van Zyl, Learning Solutions Specialist, Optima
What is the first thought that comes to mind when you hear the word:
“feedback”? Most probably not a positive thought! You have most likely been postponing giving feedback to someone for a while now, and will continue to do so until the situation becomes unbearable. Giving feedback is a skill that every individual (regardless of their position in a team) should master early on in their careers. It is one of the most undervalued skills and one that is seldom taught. Feedback is regarded as either positive or negative, but if the team fosters a culture of open communication, continued learning and improvement, the experience of receiving and giving feedback is almost always regarded as positive. This article will cover four simple steps to follow when giving feedback. You will also be reminded of a few common principles to apply to ensure your feedback will achieve the intended results. When you intend to give feedback, it is a good idea to spend a few minutes to prepare for the conversation. And the more important the outcome of the conversation, the more time you will spend on preparing – maybe even writing down what you plan to say. Whether you want to reinforce existing behaviour or encourage some change in behaviour, the four steps are the same: 1. 2. 3. 4.
Behaviour Feelings Impact So what?
Let’s look at some examples: You have to give feedback to the secretary of a meeting. She sends out the minutes of the monthly meeting weeks after the meeting was conducted – sometimes only days before the next meeting is taking place.
38 WealthWise
BusinessWise Typical feedback may sound something like this: “You always do things at the last minute. I wish you were more organised. Please send out the minutes of meetings immediately after each meeting!” Applying our four steps, this is how it might sound:
(1. Describe the behaviour, without attacking the person) I received the minutes of our task team meeting of 17 June only three days before the next meeting. For the last three meetings you have been sending out the minutes more than three weeks after the meeting and less than a week before the next meeting.
(2. Describe how you feel about the problem) I feel disappointed since the issue has been raised by the members at the previous meeting.
(3. Explain the impact – for the individual/team/organisation) Our management team is starting to look inefficient and not committed to supporting the members of the task team in implementing the decisions taken at the meetings. This has a very negative impact on the morale in the team.
(4. So what? Ask how we can resolve this problem) What do you think we can do to change this situation? Using these four steps have the following results: Step 1: Describing the actual behaviour keeps it real, forces you to focus on actual verifiable facts and prevents you from falling into the trap of generalisations and vague accusations. Step 2: Sharing your feelings sends the message that this is real, an issue and has a personal effect on the person giving the feedback. Step 3: Explaining the impact of the person’s behaviour on individual(s), the team and organisation conveys the seriousness of the matter. It places the behaviour in the context of the big picture and helps to convince the person that his/her behaviour should change. Step 4: Involving the person you are giving the feedback to, to participate in finding a
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BusinessWise
’specific Being
in giving positive feedback makes the recipient feel valued and appreciated
‘
solution for the problem definitely increases the chances of successful implementation of the agreed solution. If the person receiving the feedback voices the solution, it feels like their solution, and this increases the feeling of responsibility for successful implementation. When conducting evaluations on the efficiency of managers, team members often feel that they do not receive sufficient positive feedback. When confronted, the manager will say: “But I am always telling them how great they are!” But this type of feedback is not experienced as authentic or real feedback. It is again a generalisation and makes no difference to the team’s level of motivation. However, if the manager takes the time to give specific feedback, consisting of the four elements described, the team starts feeling that the manager notices, cares and trusts them. So let’s pretend the secretary realised the impact of her behaviour, and established the habit of sending out the minutes within two days after the meeting. The most common response to this new behaviour is ….. no response!
Remember to give positive feedback to reinforce this new behaviour. This is how this might sound – using the same four steps:
(1. Describe the behaviour that you want to reinforce.) I noticed that you have been sending the minutes out within two days after each meeting.
(2. Describe how this makes you feel.) I feel pleased with the change that this is having on the way the team is implementing the decisions.
(3. Explain the positive impact – for the individual/team/organisation.) I even noticed that people are starting to talk about this task team in a much more positive way. I think your timely distribution of the minutes has contributed to this.
(4. So what? -Thank them and encourage this behaviour in future.) Thank you for supporting our team in this way. Please continue to send the minutes out within two days after a meeting.
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BusinessWise Being this specific in giving positive feedback makes the recipient feel valued and appreciated. In addition to these four steps always practice the following general guidelines when giving feedback: • • • • •
Focus on the behaviour rather than the person Limit the information to what the listener can take in and use Own your message: say I feel….. not: you make me feel …. Give the feedback as soon as possible - not days after the incident Monitor your nonverbal responses
View feedback as a gift you are offering the other person and match your intention with the appropriate tone of voice and body language. Teach your team the fourstep pattern and the communication will become more open and direct.
About the author: Hendrien Van Zyl Technical ability Design and develop learning strategies, systems and programmes, as well as competence assessment tools across technical, management and soft skills. Experience 25 Years in education, training and development, including design, development, facilitation, coaching, and management of training projects in various industries. Services rendered also include HRD consultation, formulation of training strategy, policy and procedures and alignment with regulatory requirements (SETA, SAQA and NQF). Expertise Design and deliver learning solutions in support of strategic business objectives – on time and within budget.
Optima is a global specialist provider of
training and expert support to small and medium enterprises (SMEs), financiers of SMEs, business advisors to SMEs, entrepreneurs and other business leaders and managers in commercial organisations.
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BusinessWise
Corporate Image and Grooming by The Three Gracez
No matter how impressive your employees may be, if they do not possess good grooming habits and are lacking in social graces, these will have a negative impact on the first impressions of your company and employees.
Untidy and messy hair, dirty hands and finger nails, bad breath and body odour maybe sensitive subjects to discuss, but failure to do so will result in the loss of business. The level of service provided to the CUSTOMER depends not only on the attitude but the WAY in which your employee looks and behaviours at that specific moment in time when the interaction with the CUSTOMER takes place. “Pride in your work, starts with pride in your appearance.” As we all know CUSTOMERS are extremely vital for all organizations to succeed. Competition in today’s world is at an all time high and CUSTOMERS are spoilt for choice, therefore every interaction with your CUSTOMERS is of the utmost importance. Everyone is a CUSTOMER. You are a CUSTOMER. You know that every experience determines whether or not you will do business with that company, and the story you will tell others about your experience. Continuous training is a strategic weapon in assisting your company in attaining service and market supremacy over your competitors. The whole purpose is to attract and retain the CUSTOMER to your company and establish a mutually beneficial relationship. Each experience a CUSTOMER has with your company needs to be better than that your competitors can offer, now, or in the future. To achieve service supremacy you need to seek on-going and neverending improvement on each successive CUSTOMER experience. That is why each moment with the CUSTOMER is so precious, and it has to be treated with the greatest respect for what it is – An opportunity to prove to the CUSTOMER just how good your company is in looking after his or her needs. We live in an “experience” society which means that the experiences that we have of a company, its products and employees very often determine the extent to which we wish to continue to do business with that company. Ultimately, it is the company’s employees who create a good or bad image. Every company would like to have as many CUSTOMERS as possible become loyal, lifelong advocates of it and its products. Therefore proper and appropriate training will enable the company to simultaneously LOCK IN CUSTOMER’s, whilst LOCKING OUT the opposition thereby fuelling your company’s growth. Contact The Three Gracez at +27(0)82 820 0843, email thegracez@gmail.com or visit www.3gracez.co.za for more info.
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CareerWise Quick Read:The case of HR software HR policies, labour laws, effective performance reviews will all be too
unmanageable without a proper HR software. Below we are weighting in the advantages and reasons to use HR software. No prior HR training. An HR software is a life saving tool for employers who do not have a proper HR training or an accountant who does the HR and payrolls in a small company. Automate and compliant.The main purpose of the HR software is to automate your HR-related processes and simplify them, while complying with the latest labour laws and requirements. Save time and simplify procedures. By having an automated, up-to-date functionality, the HR software can save a great deal of time spent with paperwork, employee contracts and information and so on. Improve productivity and decision-making. Since the software automates the HR processes, staff can have more time dealing with other functions inside the organization. Having all relevant HR data in one place equals a faster, more effective decision-making process. Manage and control. Disciplinary records, employee information, performance appraisals, reviews can be all accessed and managed in a heartbeat. Most HR software will include formal employment contract templates, performance review examples and so on, making your life easier. Need control? Here it is. Retain your best assets. The software capabilities are very important for reviewing and appraising the best employees, leading to a better retention rate. Measure. An HR software should be able to effectively measure and reduce your labour costs. Add extras. Some HR software can support and integrate more modules and even link them with similar modules on other business processes, such as accounting. Enforce security. An HR software will keep all your HR information safe and secured, while reducing the amount of paperwork.
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Showing remorse by Nikki Viljoen
To be quite honest, this particular case “bent” my mind in several different directions simultaneously, and not in a good way either.
What it also did however, was clearly highlight the need to use someone with the highest level of labour law expertise when conducting disciplinary hearings that may result in dismissal. Let’s bring out the protagonists. Mike owns a small paint factory in one of the industrial parks. He is very conscientious about the health and safety issues around what happens in the factory because of the paint fumes and chemicals that are used and how badly they can react with one another. All the staff members are trained on safety issues on a regular basis and safety drills and evacuations take place quarterly. Mike employs around 100 staff members. Mike walks onto the factory floor and with the usual smell of paint fumes he detects another underlying smell. Mike is very concerned when he realized that the smell is in fact gas. He issues an instruction for all the staff to leave the premises immediately, while the problem is investigated. The usual procedure is for staff to meet in the lower car park, several hundred meters from the factory. When they do the drill the evacuation generally takes less than 15 minutes. Mike contacts his service provider and the authorities to report the problem and then goes to join the staff in the car park to wait for the technicians to arrive, investigate the problem and then proclaim the factory safe or unsafe. If the factory is declared unsafe the staff will be sent home until such time as the ‘all clear’ is given. Mike gets to the car park around 20 minutes after his instruction to evacuate was issued and some of the staff are still taking a leisurely stroll to the car park from the factory and not only that, it is also clearly evident that many of the staff members are not present and accounted for. After chatting to the safety officers and investigating the issue further, it was discovered that many of the employees just did not follow the correct procedures – some just took their own sweet time to get to the safety of the car park and some went straight home without even reporting to the car park.
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CareerWise Mike was furious, and understandably so – what if the factory had explored while staff members were still inside? What if they were looking for the bodies of people who had actually gone home and even worse, what if the safety officers or authorities had gone into the building to ‘rescue’ those that had not come out and the factory had blown up whilst they were inside and the people whom they were supposed to be rescuing were safe at home? Clearly this was not acceptable at all. Every person who had arrived late (after 20 minutes of the instruction to evacuate was originally given) as well as everyone who went directly home, were required to attend a disciplinary. So far so good, I am sure you will agree – but here is where the whole thing goes pear shaped. You see, some of the employees were issued with final written warnings and some were dismissed. The dismissed staff took Mike to the CCMA.
’Thelevel highest
of labour law expertise is required in disciplinary hearings that may result in dismissal
‘
The arbitrator found that the dismissals were ‘too harsh because the dismissed employees have shown “genuine remorse”’. Wow! So it doesn’t matter that someone could have been killed going in to look for them whilst they were safely at home, but since they were ‘sorry’, that’s okay then. Now that is not good for me at all! What is also not good for me though, is the lack of consistency with the penalties issued at the disciplinary hearings – for me personally, that is where most of the problem lies and whether they showed ‘genuine remorse’ or not should have been featured as part of the mitigating circumstances. I understand that they were all given individual hearings (as they should have been), but the fact of the matter is that they did not follow safety procedures and because of this they put other people’s lives at great risk. Let me put it this way – if Mike had ignored the problem and not followed the safety rules and the factory had blown up and the staff had been killed, but he showed ‘genuine remorse’, would his liability, responsibility, accountability and ultimate penalty been reduced? I doubt it. Once again this evidences the need to have someone with the correct legal HR ‘know how’, when dealing with these matters as the law is always open to interpretation.
Nikki Viljoen is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849, at nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za.
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Expectations are everything by Denisa Oosthuizen
Richard Mulholland (photo) is not your average marketer. He’s part accomplished
speaker, part rock star (he toured with rock bands) and an amazing story-teller. He is also the founder of Missing Link, the largest presentation company in South Africa and the sister company Thunk! He regularly speaks at industry-related events and educates corporates and companies to think out of the box and take action. The thought-provoking Richard (affectionately known as Rich) delivered an exciting, funny, yet straightforward speech on customer service at the Financial Planning Convention, held last month in Sandton, Johannesburg. So what does a guy like Rich think about customer service?
1)
Expectations are everything. In every company, both the management and the staff should acknowledge that customers’ expectations are growing by the minute, if not second. “Reward the 5 that becomes 7 rather than the 10 that becomes 8”, says Rich. 2)
Service happens while you’re busy selling. It’s the back line that counts. Focus on delivery as much as you put effort into selling. Remember that a served customer will serve another customer and so on. 3)
Hire people who care. “I give people a reason to care”, says Rich.
4)
Great service is not how well you are doing your job. “Great
Whether you are the entrepreneur, the HR manager or the employee, do understand that caring for your customer goes a long way.
service is not how well you do your daily job, but how well you do your “not my job””, says Rich. Get involved and do the “not my job” more often!
5)
Favourite trumps best. Don’t strive to be the best – a relative concept anyway – but the favourite company or brand in the consumers’ minds. “Stand for something, surprise and delight”, says Rich. And the final lesson?
Today’s greatest service is tomorrow’s lowest expectation. So
give your best at all times and use every day to enforce better customer service.
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Agenda This month we inspire you to... Be good (and green)! This month take your inspiration from www.goodguide.com, started by a professor of environmental science. Do learn green facts, look out for good eco advice and start improving your life (and our planet's) now!
Become a Forex Pro(s)! Are you a Forex trader wanting to become a pro? On www.forexpros.com you'll find he latest charts, graphics, investors' predictions and tools to help you understand the Forex process better. A must-have tool for traders!
Save time with your software! Did you know you can save a great deal of time by increasing your software productivity? At www.newhorizons.com, users can sign for weekly tips and tricks, timesaving techniques and even learn various computer shorcuts that could spare hours of work! Signing up is free and the tips are highly recommended by the New Horizons Computer Learning Centre.
Promote your business online! South Africans can promote their businesses online in the South African Business Directory at www.sabusinessdirect.co.za. Expect a listing of all businesses via region, city, industry. Listing is free, but for more goodies there is a premium service of around 20c per day. SA Business Direct will showcase your business on the Internet and in a Cell Phone Directory - more chances to be found and called!
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A dream come true The Blades by Carla Rossouw
In 2003 five rowers had a dream. Three of
them were preparing to qualify for the 2004 Olympics Games and were training full time with the South African National Squad. As it turns out, the dream involved more than just Olympic success, but something else.
All members of the Old Edwardian Rowing Club, Paul Backes, Ramon Di
Clemente, Clifford Chaney, Rob Dormehl and Bruce Turvey had a vision for their sport that involved a new home for their boat house and club. It was decided to purchase some property on the banks of Roodeplaat Dam outside Pretoria, the body of water on which numerous Old Edwardians have spent countless hours plying their trade. In 2004 a choice piece of land was identified and the five oarsmen chipped in what they had to make the purchase. Additional capital had to be raised via various investors for the deposit, as a career in rowing lends itself more to poverty than it does to wealth and fame. And so began an incredible journey of hard work and mixed fortune. Their efforts resulted in The Blades, a stunning new venue situated at the Roodeplaat Dam in Kameeldrift area, North East of Pretoria. As a result, The Blades could now boast with a wide range of facilities with the rowing theme a golden thread throughout. The Blades officially opened on the first of March 2011, although the story of The Blades has already begun in 2003. The big conference / function hall has recently been named the The Silver Goblet Banqueting Hall. The Silver Goblet is an event for coxless pairs, a rowing boat used in the sport of competitive rowing. The crew consists of a pair of rowers, each having one oar, one on the stroke side (rower's right hand side) and one on the bow side (rower's left hand side). (Source: Wikipedia) The annually Silver Goblet takes place at Henley on Thames in England. This event has been won by South Africa on four occasions against the very best oarsmen in the world. The winners each receive a Silver Goblet to keep. This tradition of giving a pair of silver 'cups' to the winning crew started in 1850. Ramon di Clemente is one of the oarsmen who have won the Silver Goblet race four times and his triumph is of huge relevance to the owners of the hotel.
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Agenda: Destination The Diamond Sculls, named after a highly prized and elite event at Henley Regatta, is a fitting name for their boardroom. Sculling generally refers to a method of using oars to propel watercraft in which the oar or oars touch the water on both the port and starboard sides of the craft, or over the stern. By extension, the oars themselves are also often referred to as sculls when used in this manner, and the boat itself may be referred to as a scull.(Source: Wikipedia)
The Blades currently has ten rooms with plans to expand to 30 rooms by the end of 2012. The rooms are spacious, modern, beautifully decorated with luxury finishes and stunning bathrooms with all the modern conveniences, featuring luxurious Charlotte Rhys bathroom amenities.
The oarsmen have also built a fully equipped industrial kitchen, now being run under the expert guidance of executive chef Joe Owen and his team. The facilities allow for high quality meals to be served in the restaurant and on the outside wooden deck overlooking the dam, as well as in the Clubhouse bar, suitable for small private groups. This area is equipped with big screen TVs, screening most major sporting events. The gardens leading to the Roodeplaat dam are also suitable for picnics.
The executive chalets reveal a cosy fireplace and an unexpected in-suite bath (bath in the room). The shower, basin and toilet are located in a separate en-suite bathroom. Alternatively, guests can enjoy the luxury double rooms or family rooms. Bed and breakfast rates range from R1 400 to R2 200 per room per night.
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Agenda: Destination
The advantage of a new development, other than having used the latest technology and design trends, lies also in the importance of bringing in the green factor, a very important aspect for the directors. Some of the green aspects include the use of a borehole and a double plumbing system, utilising grey and black water. Other green features consist of the building of a separate dam on the property and the elimination of alien trees, only to be focusing on indigenous trees and plants. The entire electricity set-up is based on low and efficient energy usage, with all geysers working on a solar basis, with gas as back-up when needed. Buildings have insulated walls, thus climate control is easier and more efficient. The construction also uses gum poles and thatch for the rooms, as well as for the main building and function venue.
The Blades is multi-functional in the sense that it is a suitable venue for corporate groups, while being child-friendly and great for families in the same time. The spacious function venue allows the owners to host bigger corporate functions, as well as weddings. Conferencing at the Blades can range from 10 to 200 guests, with the Silver Goblet Banqueting Hall accommodating up to 200 guests in banquet style.The Diamond Sculls loft boardroom, with natural light and own private area for tea / coffee breaks can seat up to 40 guests. In both venues, a data projector and screen is included. Full day conference packages are available from R320 per person, 24-hour package rates from R890 per person sharing and R1 600 per person single. Catering for conference groups can be customised according to the client’s needs. Tea breaks include, amongst other options, homemade pastries, infused water, homemade ice tea and fruit kebabs. Lunch is usually al fresco style. Chicken is halaal, but strictly halaal and kosher meals need to be ordered in.
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Agenda: Destination The restaurant is a great venue for buffet breakfasts of individually plated items such as crumpets with bacon and banana (R45) or lazy lunches, especially on the deck area on a sunny day. Cosy dinners can too be arranged. The restaurant is open to the public; we advise making a booking as the venue can also be booked on an exclusive use basis. The Blades also do high teas, as well as delectable picnic baskets. During our lunch we enjoyed a perfect chargrilled 300 grams beef fillet steak with crispy onions and rocket on a sweet potato rosti and a seasonal salad (R115). The Glamorous Blades salad with smoked bacon, roast chicken, feta, olives, cherry tomatoes and salad greens was fresh, tasty and beautifully presented (R45). A tasty lemon chicken on basil crushed potatoes with garlic lemon aioli and side salad (R85) is just divine. The signature mushroom risotto as a light meal or main meal option is highly recommended. Furthermore, the restaurant offers a variety of light meals, gourmet burgers, snack baskets, Panini’s, wraps and pasta dishes. You can conclude your meal with scrumptious sweet treats. The traditional apple crumble with cream or ice cream (R55) was chewy and utterly delicious. The wine list features an adequate selection with the average price ranging between R100 and R150. Last but not least, The Blades attracts its guests with a wide range of teambuilding options including rowing with a pro, canoeing, motivational talks, culinary courses and fishing events. Not yet convinced?
Photographs: courtesy of The Blades
For more information visit The Blades at www.theblades.co.za, call +27(0)12 808 9943 / 4 / 5 or email events@theblades.co.za or admin@theblades.co.za. Also visit www.carlarossouw.com for more information on hotels, conference facilities and restaurants in South Africa, as well as international destinations.
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Competition
WIN one of 10 educational CDs "Payroll with a Voice"! Learn about payroll at your own pace, anytime, anywhere!
Rekopane Payroll Services have developed South Africa’s first Payroll Audio Support Program called ‘Payroll With A Voice’, assisting entrepreneurs to ‘Demistify payroll for good’. ‘Payroll with a Voice’ programme is a comprehensive payroll workshop packaged in an audio and documents CD containing audio presentations of the different principles that affect payroll, customizable payroll plans, job descriptions and performance appraisals, plus payroll registration compliance. All you need is a CD\MP3 player to start enjoying and learning more about payroll. Learn at your own pace, anytime, anywhere. For more information on 'Payroll with a Voice", visit www.rekopanepayroll.co.za/payroll-with-avoice. To stand a chance to win one of these CDs, join our WealthWise Club absolutely free by subscribing at www.wealthwisemag.com/wealthwise/subscribe or by clicking the Subscribe button on the website's menu bar. Competition ends in July. Winners will be notified via phone/email.
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Agenda: Books
On the bookshelf...
WealthWise recommends
Dean Cunningham, Pure Wisdom The simple things that transform everyday life
Pearson/Prentice Hall Life, R130,00 from www.loot.co.za and www.take2.co.za Can Karate lead us to a better understanding of life? Is wisdom a product of fundamental principles and attitudes? In “Pure Wisdom”, author Dean Cunningham reveals a powerful interpretation of ancient, timeless philosophies for the modern 21st century world. A personal development coach, Dean Cunningham is a former British karate champion and international athlete. An economic graduate from University of London, he was one of Arthur Andersen’s (acquired by UK Deloitte in 2002) top consultants before establishing his own coaching company. He spent years in studying Japanese at the Keio University in Tokyo, Japan, where he practiced Karate and received the life teachings of some of the great masters. “Pure Wisdom” is the result of this profound philosophy and attitude, captured in snippets of wisdom aimed at awakening the mind, body and soul and offering a new perspective on the traditional self-help personal development writings. More than just a “self-help” literature, “Pure Wisdom” is unique through its powerful, simplistic and “straight to the point” perspective. There is no beating around the bush and second-guess here. The truth is spanned over three parts “Right Attitude”, “Right Practice” and “Right Understanding – containing twenty short chapters, each with a single powerful word in the heading. The book is based on the Karate-inspired principle of first “being” before “doing” in order to “have” what you most want in life. In short, the right attitude leads to the right practice, resulting in the right understanding of the things that matter most in life: joy, peace, freedom, compassion, wisdom among others. The book appeals to all those on a journey of enlightenment, looking for the spiritual meaning of life, but it could be easily read and embraced by the most life skeptics, who will find enough support to transform everyday life to its fullest by using the principles and attitudes explained in the book. Whether you feel lost in your spiritual journey or simply want a less stressful and more fulfilled life, “Pure Wisdom” will give you that power towards clarity, happiness, fulfillment and success from a new fresh perspective.
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Agenda: Books Malcolm Gladwell, What the Dog Saw and other adventures Penguin, R142,00, www.exclus1ves.co.za
Malcolm Gladwell is certainly one of the few journalists in the world who can turn the most mundane topics into extraordinary “did you know that?” stories. “What the Dog Saw and other adventures” collects his best amazing writings published in The New Yorker magazine in the past decade. Structured in three parts, the book covers anything from the pioneers of hair dye, ketchup or birth control pills; the theories and predictions behind Enron’s failure, homelessness, plagiarism, failures and accidents; to the burning questions about personality, geniuses, criminal profiling, dog training or job interviews. In Gladwell’s world, everything is subject to an incredible story and if you ever asked yourself questions about some of the most trivial things we have grown used to, you would most probably find the answer (or get very close to it) in this fantastic read.
Richard Hammond, Great Escapes 500 unforgettable travel experiences Tough Guides, R166.00 from www.exclus1ves.co.za
What if you had all the time in the world to discover the Earth’s most amazing, covetable places? Great Escapes just does that, revealing 500 of the world’s most amazing, unusual holidays. We do love Rough Guides’ detailed eye for the adventurous, once-in-alifetime getaways. Keen to visit and stay with Native American Indians? Fancy sleeping in a houseboat or taking a train-hotel to Paris? What about a heart-pounding safari in the plains of Botswana? It’s all there and it’s recommended by some of the best travel enthusiasts out there, Richard Hammond, former Green Travel correspondent for The Guardian and Jeremy Smith, former editor of The Ecologist Magazine. Get inspired for your next travel with Great Escapes!
Have you read an inspiring book recently? Share your experience and send us your review at editor@wealthwisemag.co. za!
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Agenda: Events
Events, workshops and seminars
Tourism Business Fair Where: Pumulani Lodge When: 29th July, 08h00 - 17h00 'Business Unusual' is the Tourism Business Marketing Platform for the CCBC, which aims to expose all the local buyers to a range of services and products in the Tshwane region ie.: Meetings, Incentives, Conference and wedding Industry. To book your free stand and more info go to www.ccbc.co.za/events.php.
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The Networking Mini ExpoSeminar: New rules for BEE Procurement Where: Shere Empowerment Conference Centre When: 21st July, 09h00 - 11h00 Government recently published new rules for BEE procurement! These rules will also apply to public entities, including the likes of Telkom.The empowerment Academy in association with the AHI, Capital City Business Chamber and Centurion Business Forum will be hosting a seminar on the new Preferential Procurement Policy Framework Act, 2011 Regulations. For more informations go to www.ccbc.co.za/events.php.
Agenda: Events
Bastille Festival 2011
When: 16th and 17th July Where: Franschoek Locals and visitors will be celebrating the Franschoek Valley’s centuries-old French Huguenot heritage at the annual Festival about all things French: good food (think cheeses, jams and divine cakes), good music, amazing wines and a red, blue and white atmosphere. For more information go to www.franschhoek.org.za/events/franschhoek_bastille_festival_2011
Stellenbosch Wine Festival 2011 When: 28th to 31st July Where: Stellenbosch
One of the biggest and oldest country food and wine festivals in the Cape area, Stellenbosch Wine Festival celebrates fine wines and decandent culinary experience. Food and wineworkshops combine with music and arts to delight the massive local and international audiences. For more information go to www.wineroute.co.za/festival.asp Do you have an event, workshop or seminar you would like to promote in WealthWise magazine? Send your suggestions to editor@wealthwisemag.co.za and we will publish your event in these pages!
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Last Word Do your bit for charity by Denisa Oosthuizen
Too often we get so caught up in our daily routines and schedules that we forget to experience what is like to be different, unfortunate or poorer.
On the 29th and 30th of July 2011, at the Bentley Country Lodge in Akasia, Pretoria North, the Mzansi Africa – Gauteng Provincial Pageant, also known as Miss Gauteng 2011 Beauty Pageant, will reward its role models. Despite the beauty and fashion aura that surrounds the event, the pageant is about educating young people and their peers to make a difference in their community. The funds raised at the event will all support “Happy Family Care Centre”, a charity from Springs and Pretoria, that is involved in taking after 23 abused and neglected children, from infant years to the age of 15. WealthWise magazine is proud to be a sponsor at this event that will bring more funds towards this cause. We are committed to work towards a better education for our younger generations, and our last month’s supplement, OOdles, was dedicated to empowering youth and their parents on financial matters. But before we start thinking about putting order in our finances, we must think at the unfortunate and help in any way we possibly can, by donating any goods, food, clothing and so on. It might not be much, but it will surely provide for the basics these people need. For more information about Mzansi Africa and its role in charity work, please contact Juanita Smit at +27(0)41 368 3107, email juanita@revents.co.za or visit www.revents.co.za.
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In next edition... E-training made in South Africa Can e-training make a difference in your staff's attitude? Dr. Kobus Neethling proves that it can. Learn more about his innovative "Taking You Beyond" email-based training.
Five WealthWise Club members will each win a complete etraining!
Black or White? Paul Stewart, MD of Plexus Asset Management looks at the pros and cons of two investment strategies - active and passive - and then looks at a third option: RAFI速 methodology.
Living annuity: a better long term future? Lourens Coetzee, an investment professional at Marriott Asset Management, looks at the impact of various draw down rates on one's living annuity and makes a significant discovery.
Stress and your finances Anger management expert Shelton Kartun, takes a closer look at the perils of stress over finances and what can you do about it.
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