Innovation Articles

  • i3 summit 2017
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    RDR: winners and losers
    anemptytextlline
    28 June 2017
    With the Financial Services Board’s Retail Distribution Review (RDR) regulations looming, South Africa’s intermediaries are understandably nervous. However, in the experience of the UK’s David Ferguson, the local investment community has nothing to fear - as long as it embraces the priorities of RDR, which are to put the client first and take full responsibility for professional financial services and overall practice. Ferguson, CEO of Nucleus Financial Group and Scotland’s fintech envoy to the UK Treasury, was speaking at the annual i3 Summit presented by Sanlam Investments and Glacier by Sanlam last month.
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    Populism driven by debt, low growth and a broken social contract
    anemptytextlline
    21 June 2017
    US President Donald Trump may perplex and exasperate the old order of established geopolitical interests, but his maverick style may turn out to be a boon for the global economy. That’s the word from Dr Pippa Malmgren, speaking at the annual i3 Summit last month. Malmgren said Trump is the “Uber” of politics. He is disintermediating traditional media companies by posting directly on social media; he’s shrinking the government’s staff constituent; and also declared it his aim to disintermediate Washington. And those who are decentralising power in America are clearly winning. “We will continue to see a president who thinks his job is to cut deals,” says Malmgren. “And markets like deals.”
  • Clients want outcomes, not the hiring and firing of managers
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    Clients want outcomes, not the hiring and firing of managers
    anemptytextlline
    13 June 2017
    “One of the wheels of the Wells Fargo coach came off with a big scandal hitting our community bank last year. It’s a good example of how things go wrong when you take your focus off the client.” The importance of acting in clients’ interest was one of the key messages from Nico Marais from Wells Fargo Asset Management, speaking at the 2017 i3 Summit recently. Marais highlighted three trends that affect advisers in the world today: the growth in passive investing, the shift towards outcomes – either stock selection to asset allocation, products to solutions or institutional toward individual retirement – and lastly the rise of robo-advice.
  • Changing lanes
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    It’s here, multi-management 2.0
    anemptytextlline
    1 June 2017
    ‘The world of investing has changed,’ says Selwyn Pillay, CEO of Sanlam Investments Multi Manager. ‘But we’re ahead of the curve and our business has already adapted to these changes.’ This was one of the key messages Selwyn Pillay shared with Implemented Consulting clients at the first Sanlam Investments Changing Lanes Multi Manager Forum hosted by Sanlam Investments during May. In describing his adaption to change, Selwyn noted that multi-management used to be all about asset allocation, building blocks and manager selection to construct funds that would achieve the client’s return objectives. ‘The paradigm has changed. Now we select and blend risk exposures instead. It’s a subtle but important difference. We believe that you cannot manage returns, but risk is possible to manage – and through managing risk exposures we can achieve the client’s return objective,’ says Selwyn.
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    A consistent performer, no matter the cycle
    anemptytextlline
    2 March 2017
    In an era of volatility and uncertainty, the world of investing often resembles a labyrinth of indecision and changing goal posts. Even the most focused investors can find themselves caught up in external noise and emotion, eventually questioning their investment choices. During periods of volatility, investors need to be able to depend on funds that have proven their ability to reduce drawdowns and potential capital loss. Volatility therefore requires effective tactical asset allocation. The Sanlam Investment Management (SIM) Inflation Plus Fund meets this need.
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    Budget 2017: Only growth can balance the books
    anemptytextlline
    16 February 2017
    The improvement in the Main Budget primary budget balance is a clear statement of intent. It is also a remarkable achievement in a low-growth environment with an excessive unemployment rate and rising demands on state resources. In addition, Treasury’s track record in containing expenditure has improved in recent years. Considering these developments it is fair to argue some of the key building blocks are falling into place to return South Africa to fiscal sustainability. Even so, the risk to fiscal sustainability is material. The impact of tepid economic growth on government revenue is well documented. What will it take to make the books balance?