GTC Q4 2023 December

Karl Botha Consultant – Wealth Management     _______________________________________________________________________________________________________ Mastering the mindset of saving There’s a reason why so many home gyms are sold very cheaply on Junk Mail and Gumtree.  There’s also a reason that they are usually sold several months into the New Year.  They are the result of failed and poorly constructed goals, often formulated as ‘New Year’s resolutions’. The pitfalls of poorly constructed goals Savings and investment plans too, whilst never appearing in online adverts often start with great intentions (often also as a New Year’s resolution?) only to be abandoned or discarded on the heap of failed dreams due to poor definition, imprecise planning and overly idealistic goals. Misconceptions about timing and planning A common misconception when it comes to an investment plan – whether it’s for a family home, a coastal retirement, or to... Read More

Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ CEO Editorial 2024 welcomes us with many global macro events that could affect our investments.  As you’ve probably already read, we are wishing for a ‘boring’ investment year. Several thought leadership articles that I reviewed for this quarter’s Trendline were penned by some of our younger professional staff.  It was interesting to see their take on savings and investments, and whilst still focussed on long-term objectives (i.e. retirement), their chosen topics focussed on financial goals much earlier in an investor’s life. Adopting a pragmatic mindset of investment strategies and specifically targeting children’s education are probably not topics on the minds of investors either in their retirement or close to it, though they remain important topics for so many of our clients.  I found this refreshing and it acted as a timeous reminder that... Read More

Kyle Jeacocks Consultant – Wealth Management     _______________________________________________________________________________________________________ A considered approach to preparing for your child’s education Introduction: The financial challenges of parenting For most people, having children is relatively easy.  Financially planning for this provision, not only for the benefit of the children, but also considering this budgetary exercise for the parent’s retirement planning – at least for the first twenty years or so – is considerably less so. The rising costs of education: A burden for parents When a couple wishes to plan for the extension of their family, it is also the time to consider the financial responsibility that this decision carries.  Over and above the lifestyle change that accompanies the arrival of a newborn, is the ever-present and compulsory focus on the cost of their upbringing and education.  Often not factored into this exciting phase... Read More

Sabir Bacus Senior Benefit Consultant       _______________________________________________________________________________________________________ Double, double toil and trouble… Two-pot and its (political) expediency  The to-ing and fro-ing of the Two-pot system implementation date appears to have come to an end.  It was reported that a compromise has been reached between the Minister of Finance and the Portfolio Committee on Finance in Parliament.  National Treasury was advocating an implementation date of 1 March 2025 and Government was determined for a 1 March 2024 inception.  The new proposed date is 1 September 2024. Understandably the implementation date is of importance.  It represents, for members of retirement funds, the date from which they may gain access to a portion of their retirement savings (to lessen immediate financial distress), whilst remaining in employment. In contrast, for the industry, this date is the zero hour for readiness.  The path... Read More

An in-depth market commentary – detailing global and local investment performance over the quarter – with our Asset Management team diving into transformative Artificial Intelligence trends. Market Overview Q4 2023 Artificial Intelligence revolutionising finance and investment

In-depth market commentary – Navigating choppy waters in the global investment arena  The year ending December 2023 has continued to reflect a challenging global investment market backdrop.  Enduring economic uncertainty has prolonged elevated investment market volatility.  Subdued global trade and stubborn core inflation have led to persistently restrictive monetary policies from global central banks which, with the elevated yields have prevented markets from being kept on an even footing.  These heightened risk factors necessitate continued caution in portfolio positioning. Over the quarter: Global developed market equities rallied +11.4% over the quarter and +23.8% over the year, well ahead of emerging market equities which delivered +7.9% and +9.8% respectively in US dollar terms. Positive sentiment around sooner-than-expected interest rate cuts from the US FED spurred investor optimism over the last quarter.  The strong returns earned by both counters over the calendar... Read More

  Manty Seligman Director – Asset Management     _______________________________________________________________________________________________________ Artificial Intelligence revolutionising finance and Investment: A deep dive into transformative trends Introduction The integration of Artificial Intelligence (AI) into the financial and investment landscape has sparked a revolutionary transformation, re-shaping traditional practices and unlocking new possibilities.  As technology continues to evolve, financial institutions are leveraging AI to gain a competitive edge, enhance decision-making processes, and optimise investment strategies.  In this comprehensive exploration, we will delve into the multifaceted ways in which AI has altered the financial and investment world, examining key trends and their implications. Data analysis and decision-making At the heart of AI’s impact on finance lies its unparalleled capacity for data analysis. Financial institutions deal with vast datasets daily, encompassing market trends, economic indicators, and customer behaviour.  AI algorithms, equipped with machine learning capabilities, can process, and... Read More