ED'S NOTE Change and transformation are the order of the day at present, nowhere more than in the financial services industry. To begin with, the FPI has begun a new chapter in its existence, with an exciting new mixture of vision and purpose, as detailed by new CEO Lelané Bezuidenhout in the Foreword to this issue and further elaborated on in an introductory article on page 18. We Perspectives on transformation welcome Ms Bezuidenhout and wish her every success in this important venture. Retirement is one of life's biggest changes, and it falls to the financial advisor to help their clients prepare for this stage of their lives as best they can. Naturally, quite apart from the emotional and mental considerations implicit in this transformation, adequate retirement capital is essential if the desired retirement lifestyle is to be achieved. Financial planners have to do their homework and ensure that this capital is not reduced by fees and other hidden costs that can be avoided. A number of perspectives on this aspect of financial planning are contained in this issue, including an examination of issues around fees. When it comes to personal development, it seems that more and more professionals are realising that the process of transformation begins internally, not only for themselves but also for their clients. We hope you enjoy the inspirational testimony and insights shared by our professional contributors in this issue. Editor: Greg Penfold Art Director: Brent Meder Design & Layout: Tyra Martin Client Liaison Officer: Lizel Olivier Project Manager: Chris Whales, Global Africa Network Advertising Executives: Bayanda Sikiti, Sam Oliver, Gavin van der Merwe, Jeremy Petersen Subscriptions: Lee-Ann Lawrence Fax: +27 (0) 21 683 4364 RSA: R125.70, Foreign: R335.70 Distribution Manager: Edward MacDonald Circulation: Lee-Ann Lawrence Accounts Department: Chevonne Ismail (accountant) Brigitte Eberbach Debtors Department: Nadeema Abdullah Printing: FA Print CAPE MEDIA CORPORATION Managing Director: Robert Arendse Financial Director: Andrew Brading Laurium Balanced Prescient Fund 3 YEARS OF STAYING AHEAD NO MATTER THE TERRAIN Launched 9 December 2015, the fund is ranked 1/148 in the South African Multi-Asset High Equity Sector with a return of 10.95% p.a. (annualised) over 3 years to 30 April 2019 (net of fees). This is 6.2% p.a. (annualised) ahead of the average fund in the same sector! Visit www.lauriumcapital.com today. Cumulative Performance Balanced Fund since inception vs. SA Multi-Asset High Equity. Investment Growth Time Period 2015/12/09 (inception date of fund) to 2019/04/30 We know Investments T +27 11 263 7700 E laurium@lauriumcapital.com www.lauriumcapital.com Source: Morningstar 2019/04/30 Annualised performance shows longer term performance rescaled to a 1-year period. Annualised performance is the average return per year over the period. Actual annual figures are available to the investor on request. Collective Investment Schemes (CIS) should be considered as medium to long-term investments. The value of your investment may go up and as well as down as past performance is not necessarily a guide to future performance. CIS’s are traded at a ruling price and can engage in script lending and borrowing. Performance has been calculated on the A2 class using net NAV to NAV numbers with income reinvested. The performance of each period shown reflects the return for investors who have been fully invested for that period. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestments and the dividend withholding tax. Highest rolling 1-year return since inception of 19.8%. Lowest rolling 1-year return since inception of -3.1%. A schedule of fees, charges and maximum commissions is available on request from the Manager. There is no guarantee in respect of the capital or returns in a portfolio. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. Prescient Management Company (RF)(PTY) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). Laurium Capital (Pty) Ltd, Registration number: 2007/026029/07 is an authorised Financial Services Provider (FSP34142) under the Financial Advisory and Intermediary Services Act (No.37 of 2002). For any additional information such as fund prices, brochure and application forms please go to www.lauriumcapital.com
On the money Making waves this quarter A reference of note Classic retirement fund handbook turns 25 The Manual on SA Retirement Funds is celebrating its 25th year in the industry. This veritable tome of information comments on all the pieces of legislation that are relevant for an EB practitioner. With its panel of distinguished authors, the Manual is widely recognised as a leading reference work on employee benefits and its online format is ideally suited to this. Sanlam is to be applauded for making the Manual available free of charge, to Sanlam staff, intermediaries, retirement fund clients and members as well as to any persons who registered for the trustee and PO qualifications offered by Batseta. Holding firm Tradehold shows resilience in demanding markets In the year to February 2019, Tradehold, with property interests split between Southern Africa and the United Kingdom, made several farreaching structural and operational changes to the company to strengthen its balance sheet and tighten its focus. Its financial services division has been unbundled and listed separately on JSE’s AltX, making Tradehold exclusively a property company. Underscoring the new route, an unrelated party (ie I-Group Investments (Pty) Ltd) sought to invest R833m in Tradehold’s South African portfolio of mainly industrial buildings in exchange for a 25.7% shareholding in the Collins Group that was restructured post year end. The full transaction has since been finalised, valuing the restructured South African business at R2.4-bn. Tradehold joint CEO Friedrich Esterhuyse said the cash injection at the tangible net asset value of the Collins Group will be used to restructure the balance sheet by reducing gearing and restructuring debt under more favourable conditions, which should have a marked effect on the group’s future profitability and dividend prospects for shareholders. With the unbundling of the financial services division, the value of Tradehold’s total assets reached £859-m compared to £985-m in 2018 if financial services are excluded. Revenue came in at £96.4-m compared to £101.4-m the previous year. Total profit dropped to £13.3-m from £30.8-m. The decrease is mainly due to the net loss in the fair-value adjustment of its investment properties and related assets of £8.9-million, compared to a gain of £11.8 -million in the previous financial year and financial services net profit of £4-million in the previous year. Headline earnings per share was 8 pence, up by 0.1 pence from 7.9 pence if financial services are excluded, and tangible net asset value per share was 123.7 pence / R22.97, compared to 132 pence / R21.48 if financial services are excluded.
