Old Mutual Wealth’s Post

Transcript

Welcome back to another Old Mutual Wealth Coffee chat with, as usual, Tian Husselman, head of Old Mutual Wealth Proposition, where today we talk around hardly financial planners make sense of all this market noise that's out there by partnering with expertise in certain investment fields. Martian Old Mutual Wealth. Does everything by design not by accident and in our approach we are quite data-driven, so much so that we actually see on average our financial planners invest clients money into over 100 funds. Are there any global trends that you picking up on now you can't look at global trends without considering America because in our country we look after less than 1% of global wealth, most of wealth is concentrated in America and the one thing we see there Dave is that their financial planners are actually outsourcing and. 1000 management by partnering with a reputable business manager with a long track record and I do that for three clear reasons. The first one, it gives them much better oversight of their portfolios because as you've mentioned, most planners in our country are invested into 100 funds or more than 100 funds for their clients. The second reason is it actually ends up saving them more than 8 hours every single week by outsourcing and business management. And the last reason it actually helps them grow their practices at a much higher rate and you can even see on the local. Run 25% of financial planners in our country currently utilized DFM's or discretionary fund managers for one simple reason, to simplify their investment practices to spend more time with actually matters in front of clients. Now then, let's bring this back with your advice hat on, how do you make this practical with financial planners? Especially since Old Mutual Wealth offers a myriad of investment options for them. So we've tried to simplify this world of investments for financial planners by putting together for the first time the Old Mutual Wealth House view. And this house has three legs to it. The first one is the Old Mutual Multi Managers capability and here we have Multi Manager funds. They've got a 20 year track record of achieving inflation +2. Inflation plus four and inflation plus five. The second leg is our discretionary fund management capability where we have our own TFP portfolios, tailored fund portfolios. It's our version of a DFM. And the third but very important leg which we'll talk about a bit more in detail today, is our private clients offered by Old Mutual Wealth Wave for the first time or not just for the first time for the last 10 years, you could do this, but you can actually have a portfolio manager and invest in professional in your practice sitting having a cup of coffee. With clients and unpacking their financial planning and statistically their investment planning needs alongside A portfolio manager nation. As we know no one client is the same. So when does a financial planner choose between a unitrust fund, a discretionary fund manager or whether to go the private client route? It's such a good question and it's always like more how long is a piece of string. And I think a good starting point is if you have investable assets of 5 million and above, private clients is a great solution for those clients with more unique. Even more complex structures, if you want a simple unit trust fund with a long term track record with diversified asset managers are multimanager funds is a great solution. Or if you want a fund of funds approach, simplify your investment management into model portfolios utilizing our DFM capability through our tailored fund portfolios, then we'd probably recommend the TFP solution. So that really depends on each particular client, their needs, but I think we've now for the first time simplified it down to three core solutions. Martian, you mentioned private clients and I wanna pick up on this because this is probably the fastest growing segments of our business, currently managing 70 billion rands worth of clients money. Why do you think this is? I think the private client success is due to the fact that it's so much more than just a stockbroking offering. I think we started there more than a decade ago. It was a stockbroking option for clients, but now we can actually build bespoke portfolios for clients where they'll be putting in ETFs. She is locally offshore. Whether you want investment structured notes or bonds into your portfolio, we can even look at the timing and managing the timing as to when do we buy and sell these particular asset classes. Do we buy when equities are cheap? Three buy into the Magnificent 7 now because markets have given us great returns or do we hold back a little bit? Do we wait for the round or do we go in? This gives us much more flexibility in managing clients wealth, the other great benefit of the private clients. Offering full the financial planner is that you can put together a mandate for clients saying they've I need a target inflation +4 or inflation +2 or $1.00 beating returns offshore. I wanna beat global inflation in dollar terms and in the portfolio manager can put together a bespoke portfolio that sets out to achieve that particular mandate. And also we've got a 10 year track record of doing this. That's how we got to 70 billion that's why the capability is growing so fast and we wouldn't achieve this growth if the performance. Wasn't there either, the loss of one year we saw our global equity portfolio do 34%. So these models and these portfolio managers are very competitive when it comes to performance. We also finding more and more our clients are becoming global citizens and we're seeing more and more family offices. And here with our fiduciary capability, we basically try and prevent three things from happening. Firstly, paying too much in fees, paying too much on tax and also preventing them from creating an administrative nightmare upon their passing. And this is where the fiduciary capability gives you all of the following benefits. We can help you draft your local and offshore walls. We can help you with your offshore and local trust. Lanning. We can help you with tax advice. And all of this elevates your offering as the owner of the client relationship, as the owner of the financial plan. And it helps you to spend more time where it really matters in front of clients Co creating plans and helping them bridge the gap between their current and ideal reality. And Speaking of trends private clients helps unlock. Greater share of wallet for both financial planners and their clients. Jan, thank you for making things practical, as always for financial planners out there to help navigate the noise. Join us again for another Old Mutual Wealth Debrief exchange.