Old Mutual Wealth (Tiaan Herselman) – The electronic age of financial planning
There are four key variables in developing a financial plan: Available assets, your desired lifestyle, the investment return required and your expected lifespan.
It’s important to distinguish between non-liquid and liquid investments. An example of a non-liquid asset is a retirement fund, whereas a liquid asset is a unit trust or money market. This can make a big difference leading up to retirement and when you are in retirement with regards to taxation, access of funds and utilisation.
Findings:
- Every financial plan is unique. Make sure you know what the triggers are.
- Getting the balance right between liquid and non-liquid investments is very important, while you save for retirement and when you are retired.
- Don’t destroy wealth by chasing investment returns – stick to your investment strategy
- Make sure you constantly review and update your financial plan. And understand how any potential changes could affect you.
In this electronic age of financial planning, partnering with a qualified financial planner has never been more important.
Investonline’s role:
At Investonline, one of our Client Portfolio Managers can build a digital financial plan with you to show you the potential outcomes of your investment decisions. This is vitally important to ensure that your goals are met and that your investments are structured optimally in terms of liquidity, estate planning and tax efficiency.
Investec (John Biccard)
The Investec Value Fund has outperformed the general equity unit trust sector by a massive 3.6% p.a. since inception (2000).
The value style of investing has underperformed growth for more than 10 years. This must be nearing an end.
The fund’s current positioning:
Platinum shares 33%, SA mid / small-cap shares 34%, Offshore 29%.
Top 5 mid / small-cap holdings:
Mediclinic, Nampak, Brait, Arcelor Mittal, Tongaat.
The Fund is positioned for:
Higher Platinum prices as it catches up to Palladium, the narrowing of the valuation gap between SA midcap and large-cap shares, weaker global markets (especially FAANG shares).
The fund is estimated to grow 20% p.a. over the next three years. The fund is suitable for investors with a high-risk tolerance and long-term investment horizon.
Allan Gray (Duncan Artus)
Although the JSE All Share Index is on a P/E of 16.4, the median company is on a P/E of 12.4, which is at an average level over the last 20 years. Hence, not expensive.
The Rand is fairly priced on a long-term inflation adjusted basis to the US dollar.
The US equity market is at a all time high relative to other developed markets, mostly due to the FAANG stocks (Facebook, Amazon, Apple, Netflix, Google).
Listed property has de-rated significantly and is offering some attractive opportunities
The Allan Gray Balanced fund is 67% invested in equities and 32% outside of SA.
The biggest offshore investment is in emerging markets.
Top 5 local holdings: Naspers, BAT, Sasol, Glencore, Remgro
Top 5 offshore holdings: NetEase, AbbVie, Taiwan Semiconductor, Celgene, Naspers
They estimate equities to grow by 11% p.a. for the next three years.
Investonline (Nick Brummer)
Meet the Investonline Team: 6 Client Portfolio Managers and 1 Client Services Manager
Who does Investonline partner with? Allan Gray and Old Mutual Wealth provide the administrative platform. Various premium branded fund managers are investment managers.
Our Service Offering: Financial Planning, Investment Management and Advice, Retirement Planning, Estate Planning, Tax Advice, Offshore Investing.
Most Common Investor Mistakes: Not having a financial planner, Not matching your goals to your investment strategy, Impatience – Not understanding or trusting your investment strategy, low fees at the expense of performance.
Key considerations when selecting an Investment Advisor: Qualifications and experience of the advice team, are you being serviced by an individual or a team, Independence of the advice, Investment track record, Fee structure.
How Investonline Adds Value:
1) Financial planning process
- Establish goals and aspirations
- Modelling your financial plan with different scenarios
- Recommend the efficient structure in terms of tax, estate planning, liquidity and cost effectiveness.
2) Investment Strategy
- +25 of investment experience
- Proven track record
- Personal investment target for each client
- Review clients targets on a regular basis
- Regular meetings with leading fund managers and experts