June 2021

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Now is the time

If ever there was a time for you to pay attention to your investments…NOW IS THAT TIME!

There is a continuous noise and rhetoric around the globe with massive conflicting information about the world economy and where we are headed. Sifting through all the information requires a level-headed approach and perspective.  

On the one hand, all the economies around the Pacific Rim, including USA, Australia, China, Japan, are of the opinion that a massive equity ‘bubble’ has been created by the V-shaped recovery which took place late last year and early this year.  This ‘bubble’ is absolutely not sustainable and may implode at any time. The spill-over into UK and Europe is that most of the Reserve Banks have been busily printing money at an alarming rate. This directly affects exposure to equities, which have broken all-time highs, but with extreme volatility.  

On the other hand, UK, Europe, and the rest of the world are seeing some stability returning to the world markets, in spite of Covid, as world trade has adapted to new conditions and is even prospering under the new regime. 

So, what to do about your Investment Portfolios in order to protect your hard-won assets is the burning question. Keep a “Cool Cerebellum” and keep yourself informed by reading and listening to as many opinions as possible, and work together with your professional advisor to ensure that you choose the correct strategy for your age and time horizon.

The basics of investment have not changed:-

• Set your goals and objectives. 
• Use our free Budget template on the website to determine your affordability. 
• Send us an enquiry form and we will help create a personalised plan for you. For more details refer to our 3 in 1 Program on www.safinco.co.za

No man is an island, and neither is your advisor. Very extensive information networks have been created by all leading Financial Services Providers (FSP’S) who are guiding and teaching Investment Managers how to cope with this new situation. Globally, FSP’S have done the same, and the message is that teamwork and decision-making based on factual data and research must be the order of the day.

To this end we, Denis and Glynis, have devoted a large amount of time to our research process in gathering information, and attending webinars. Since developing our new portfolios in October 2019, we are happy to report that after 18 months in play, all our risk profiled portfolios, including Regulation 28 portfolios, have delivered outstanding inflation-beating results. When investing through our brokerage, you get this proactive portfolio management as part of our service level.  This is what makes us 1% different from other brokerages. 

The basis of our Wealth Creation programme is described in our 3 in 1 process which you can view on our website – www.safinco.co.za  We have developed methods to claw-in and preserve existing investments that you may already have, and blend them into our 3 Pillars philosophy. This is used to either form or create your foundation for your long-term plan.

By being fully independent, registered and licenced, we have partnered with most of the major FSP’s in South Africa, and some globally, to bring you ‘best of breed’ market-leading products and funds. Our knowledge and expertise is then used to blend these into a bespoke, personalised portfolio for you, the investor. 

For this reason therefore, by constructing these portfolios, full diversification of assets and geographical location has been achieved, thus providing a greater margin of safety and protection on the downside.

In these uncertain times, professional management of your portfolios is vital to achieving a successful outcome. We can make the difference. 

On a happier note, we are starting to see some growth stability manifesting in both South African markets and major global markets as world trade gathers momentum.  Quoting the Warren Buffett basic philosophy of “look through”, if the basic portfolio has been constructed correctly, focus on the long-term by “looking through” and let us deal with the short-term fluctuations and whether or not they may have an impact on your investments.  Remember that by the time you read or see news, it is already history.

We believe that we are entering a new era of economic growth and are cautiously optimistic that we are on the road to recovery.

Under Covid conditions, the pandemic has taught us to be more self-reliant, to take on more responsibility, and to make informed decisions on matters which may previously have not been a high priority in our lives.  The new method of doing business is via electronic communications, so make sure that your home computers have a camera and audio capability and that your printer can print, scan, and copy paperwork.  Download free digital signature apps.  If possible, upgrade to Smart Phones to ensure that you can be communicated with by email whilst on the move. The Financial Intelligence Centre Act (FICA) is applied to all transactions and you need to have at hand a certified colour copy of your ID (both sides if it is a card), a utility bill showing physical address not more than 3 months old, and the front page of your bank statement, not more than 3 months old.

The Protection of Personal Information Act (POPIA) is being promulgated on 1 July and is a new security requirement regarding personal information which all FSP’S have to implement.  As such, we will be reviewing all our stationery in respect of Letters of Appointment and Service Level Agreements etc, to accommodate the new requirements. 

We have made doing business via virtual processes nice and easy. We can do zoom and watsap video calls which means the necessity for face-to-face meetings is kept to a minimum, as per lockdown compliance requirements.

We trust that you and your families are all in the habit of coping with the new norm under the pandemic conditions, which looks like it is here to stay for some time yet.

Stay healthy, eat healthy, and take care.

THE TEAM AT SAFINCO