Blue Chip Issue 96

BLUECHIPOn the

BLUECHIPOn the moneyMaking waves this quarterThe advisor landscape and the evolving role of risk and insurance professionalsTRENDS IN THE ADVISOR LANDSCAPESouth African independent advisors are operating at a timecharacterised by extreme volatility, uncertainty and disruption. Againstthis, advisors may need to rethink how they structure, resource andscale their practices. This is one of the key takeaways from the recentlyreleased Advisor Barometer 2024/2025, a study compiled by the LangCat, a UK-based consultancy, and commissioned by Allan Gray. Basedon nearly 600 responses from advice businesses who use the Allan GrayInvestment Platform, the Barometer offers a nuanced view of SouthAfrica’s advice landscape – one that extends beyond traditional researchinto fund and platform preferences, according to Daniel van Andel, headof platform and advisor proposition at Allan Gray.“The advice industry is facing real challenges, but there’s alsoenormous opportunity,” says Van Andel. “Many practices have untappedcapacity, and the right blend of technology, strategic planning andclient-centred focus can unlock long-term value.”Firm structures, resourcing and efficiencyThe report reveals considerable diversity in firm size and operatingmodels, with the average firm having a team of seven people. Only9% of firms have started using AI tools, but interest is growing with 39%expressing curiosity and planning to explore its potential. “Practical,easily implementable use cases remain limited at this stage,” Van Andelobserves, “but that is bound to change.”Revenue models and a continued servicing focusThe report also surfaces key insights into advisor charging models.Ongoing asset-based fees remain dominant – 48% of firms chargeclients 0.5% annually – and nearly half of firms report no revenuefrom initial advice fees. Alternative models, such as hourly consultingbasedfees or charging for the implementation of a plan, remainrelatively uncommon, used by just 26% of respondents.“Regulation can change this quickly and some advisors expect theirbusinesses to gravitate towards what we typically see in the UK, withtwo-thirds of revenue stemming from ongoing asset-based fees, anda third from various activity specific charges.”In terms of client servicing, top-tier clients continue to receivethe lion’s share of advisors’ attention, with an average of nearly fivepersonalised engagements per year. The core offerings across mostfirms remain focused on investment and financial planning, includingtax advice. However, softer services like behavioural coaching and lifeplanning are yet to be fully embraced: only 40% of advisors see theseas core, while 26% do not offer them at all.Offshore advice that is locally ledOffshore investing continues to play an important role in clientportfolios. Most firms engage in offshore structuring but remain largelycomfortable servicing these assets from within South Africa.“Only 14% of advisors expect a quarter or more of their assets undermanagement (AUM) to accrue to beneficiaries based abroad,” says VanAndel. “It is therefore unsurprising that only 11% of firms are activelypursuing offshore licensing or the opening of overseas offices.”The outlookThe financial advice profession faces challenges in attracting new talent(only 22% of respondents believe there is a clear career path for newentrants) and meeting the expectations of younger clients.“In an environment where growth is expected, but margin pressureis mounting, how firms think about succession planning and adapt theirmodels – not just their advice – will be key to long-term success andsustainability,” concludes Van Andel.To access the full Advisor Barometer 2024/2025 please visitwww.allangray.co.za.EVOLVING ROLE OF RISK AND INSURANCE PROFESSIONALSIn today’s volatile environment, risk and insurance professionals areexpected to do more than assess exposure – they are strategic decisionmakers.As the sector becomes more complex, there is a growingdemand for practitioners who understand regulatory shifts, emergingtechnologies and systemic risk. At Milpark, we focus on equippingstudents with real-world insight and analytical agility. Our programmesemphasise applied learning – essential for professionals navigating bothcompliance and innovation. Whether entering the field or deepeningexpertise, continuous education isn’toptional; it’s a professional imperative.The industry needs thinkers, not justtechnicians.Marisa Grundling, Head of Department,School of Financial Services, Milpark16 www.bluechipdigital.co.za

BLUECHIPDEPARTMENT OF FINANCE AND INVESTMENT MANAGEMENTChart your path to success in financial planning with the University of Johannesburg’s top-tierprograms. Begin with a BCom in Finance, our foundational degree with an industry-alignedcurriculum, integrating finance modules such as Financial Planning from day one.Continue advancing with a BCom Honours in Financial Planning and our Master’s inInvestment Management specializing in financial planning. The BCom Honours programbroadens your knowledge across diverse specializations, emphasizing practical, ethicalapplications. The Master’s program refines your expertise in investment analysis and portfoliomanagement, blending global and South African perspectives while incorporating datascience for a modern edge.Academic PathwayBCom Finance | BCom Honours in Financial Planning | MCom Investment Management withSpecialization in Financial Planning | PhD in Finance.Admission RequirementsBCom Finance: Qualification Code: B3F17Q | Minimum APS: 28 | Campus: APK.BCom Honours in Financial Planning: 65% average in relevant modules required, plusassessment.MCom in Investment Management: Finance-related Honours or Postgraduate Diploma withexperience, subject to preparatory study.Application ProcessApplications for the academic year will open in the beginning of April and close on the lastday of September at 12:00 for postgraduate programmes and last day of October at 12:00 forundergraduate degrees.Each student needs to submit a completed application form via the UJ online applicationportalavailable at: http://www.uj.ac.za/apply.ContactsEmail: dfiminfo@uj.ac.za | Chatbot: +27 79 265 2001 | Facebook: Department of Finance andInvestment Management - DFIM at UJ.Dr Musimuni DowelaniHead of DepartmentMr Anrich Van JaarsveldProgramme Manager:Financial PlanningAbout DFIMThe Department of Finance and Investment Management, housed within the School ofManagement in the College of Business and Economics at the University of Johannesburg, isdedicated to providing progressive educational programs essential for leadership in today’sdynamic and evolving world. Through our tailored academic offerings, designed to providestudents with the essential skills and knowledge needed to succeed in the finance industry,we cultivate a culture of innovationand advancement within the field of finance.Scan to find out moreabout our courses