Coronavirus will end up giving value companies another bite at the cherry
Only clear COVID narrative will set markets on path out of volatility – Graham Wainer
Finding green bonds issued by evolving companies is a subtle science - Ashley Schulten
The Role of Active Management in a Modern Portfolio
Two minutes with Johan van Zyl, Chief Executive, South AfricaPublished on 30 Aug 2019
We are a client-led business. In order to be in tune with our clients’ needs we have to keep the conversation going – both formally and informally. Having ‘no agenda’, face-to-face meetings allows us to pick up on things that may not otherwise come out.
For our clients, we act as co-pilot and financial director to the family. Many come from entrepreneurial backgrounds. Having built up their businesses independently, they want to retain control and be involved in decision-making. In these relationships, we provide structure, discipline and execution.
Our culture allows people to thrive at work. There are many business reasons why we are different from our peers, but apart from their technical expertise, the care with which the team approaches working with clients is what sets them apart. At the end of the day, clients want to work with people they like and trust. If we look after our people well, they will do the same for our clients.
The majority of our clients in South Africa are first generation wealth creators. The concepts of succession and governance are new to them. We encourage families to start the planning process early and spend time agreeing their family values and a purpose for their wealth. This promotes understanding within the family and reduces the risk of conflict. Families, however, do evolve and the process should be ongoing. Having the discipline to review their plans periodically helps a family stay ahead of the curve.
We challenge traditional thinking. We don’t believe that external threats such as the economy or political landscape pose the biggest risks to families. Backed up by our experience with clients and the findings in our latest research report (Four Pillars of Capital: The Next Chapter, 2018), we believe that internal issues like family disputes or a lack of leadership are what ultimately destroy wealth.
Engaging the next generation from an early age is essential. Involving people young helps to assess which roles they might play within the family and allows natural leaders to emerge. It can take decades, but it is probably the least invasive way of establishing leadership. The earlier you start the more natural and obvious the choice becomes.