Blue Chip Issue 83

BLUE CHIP We welcome

BLUE CHIP We welcome Kobus Kleyn to Blue Chip as one of our esteemed columnists. Kleyn will be sharing his thoughts with us in each issue of the publication. In his introductory column (page 22), he says that it is essential to have a well-diversified portfolio of funds and fund managers to smooth performance over the long term. He goes on to explain that it is about spending time in the markets and that your success rate is high when you protect wealth while creating wealth if you do not try to time the markets during volatility. Florbela Yates concurs in her column on page 20. She says that in determining the most appropriate investments for clients, the investment time frame, risk tolerance and the expected volatility and liquidity constraints are considered. She says that financial advisors guide clients to avoid selling during a downcycle. By exiting then, you lock in the loss. It is often better to stay invested and consider exiting once the market has recovered. Mike Adsetts, Momentum Investments, tells us to stay the course through market turmoil on page 32. Sound investment advice. In A Coaching Way of Being (page 48), Rob Macdonald, our veteran Blue Chip columnist tells us that investments outperform investors because of their behaviour: switching at the wrong times for the wrong reasons, incurring additional costs and generating lower returns than they would have if they had stayed invested. We are more emotional than rational in our decision-making. As such, financial planning is about behaviour management and perhaps the value add that a financial planner offers is behavioural coaching. Nilan Pillay tells us how to transform from financial planning to financial coaching gracefully (page 64) and Terrence Tobin tells us how he applies coaching to his financial practice (page 66). Financial advice is about having informed conversations with the client, about listening to their needs, about guiding them through the rough times and quelling frivolity in the good. Financial advice is the sum of investment and coaching expertise. Financial advice is about being human. Enjoy this issue! Alexis Knipe, Editor EDITOR’S NOTE INVESTOR + COACH = FINANCIAL ADVISOR Blue Chip Journal – The official publication of FPI Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry. A total of 10 000 copies of the publication are distributed directly to every CERTIFIED FINANCIAL PLANNER® (CFP®) in the country, while the Blue Chip Digital e-newsletter reaches the full FPI membership base. FPI members are able to earn one non-verifiable Continuous Professional Development (CPD) hour per edition of the print journal (four per year) under the category of Professional Reading. Special advertising packages in Blue Chip are available to FPI Corporate Partners, FPI Recognised Education Providers and FPI Approved Professional Practices. blue-chip-journal ISSUE 83 | MAY/JUNE/JULY 2022 BLUE CHIP Publisher: Chris Whales Editor: Alexis Knipe Online editor: Christoff Scholtz Designer: Tyra Martin Production: Aneeqah Solomon Ad sales: Sam Oliver Gavin van der Merwe Bayanda Sikiti Venesia Fowler Vanessa Wallace Managing director: Clive During Administration & accounts: Charlene Steynberg Kathy Wootton Distribution and circulation manager: Edward MacDonald Printing: FA Print PUBLISHED BY Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 www.bluechipdigital.co.za Tel: +27 21 657 6200 Email: info@gan.co.za Website: www.gan.co.za No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of Blue Chip, nor the publisher, none of whom accept liability of any nature arising out of, or in connection with, the contents of this book. The publishers would like to express thanks to those who support this publication by their submission of articles and with their advertising. All rights reserved.

TBWA\HUNT\LASCARIS 934408 Your company’s biggest asset is its people. At Liberty Corporate, we are in the business of caring for people. That’s why our team of highly skilled business development managers and specialist advisers will consult with key people in your organisation to ensure that the solution we design for your company will benefit the people who work there. Because people are the heart of our business and yours. Speak to a Liberty Accredited Financial Adviser or Employee Benefits 2018 SUNDAY TIMES TOP BRAND AWARD 2021 PMR AFRICA GOLDEN ARROW AWARD Liberty Group Limited (Reg. no. 1957/002788/06) is a licensed Life Insurer and an Authorised Financial Services Provider (FAIS no.2409). Terms and Conditions, risks and limitations apply. For more details about benefits, guarantees, fees, tax, limitations, charges, contributions or other conditions and associated risks, please speak to a Liberty Accredited Adviser or visit our website.