THE BENEFITS OF A CUSTOMISED
WEALTH STRATEGY

LENTSOANE: As a private client, you’ll in most cases need a bespoke wealth plan designed specifically for you and your family, taking into account your financial reality, aspirations and risk profile. What does a customised wealth strategy include?

DAVID: A bespoke wealth plan for a discerning individual or family is essentially an end-to-end solution which could include anything from minor investment portfolio customisation to global estate planning, cross-geographical tax structuring and a strategy to ensure the orderly transfer and preservation of your wealth for future generations.

At Sanlam Private Wealth, we’ll work closely with you to craft customised, integrated wealth solutions, starting with an investment portfolio designed around your individual risk profile and investment objectives. Whether you wish to grow and preserve your overall wealth, invest for retirement, safeguard your income after retirement, invest offshore, or invest in a Shariah-compliant portfolio, we’ll customise your portfolio as part of your overall wealth plan to suit your needs and circumstances.

LENTSOANE: How does a bespoke private client portfolio differ from a collective investment scheme, also known as a unit trust fund?

DAVID: The main benefits of a customised portfolio include:

• Your investment portfolio is tailored – your individual circumstances guide the process during the initial and continued management of your personal portfolio. In contrast, a unit trust is a pooled investment vehicle where investors buy units in a pool of assets managed by a fund manager.

A simple example: if you already have a large portion of your wealth in a business you own or run, for instance, in the clothing retail sector, you may not want your discretionary savings to have additional exposure to that sector, or to a competitor.

• You have direct ownership of the assets in your portfolios – this allows for complete transparency and greater flexibility.
• You enjoy personal service, with direct access to the investment professional who buys and sells your assets and manages your investments on a day-to-day basis – you don’t have to deal with a private banker, relationship manager or call centre agent.
• You can choose the extent to which you wish to participate in the day-to-day management of your affairs.
• Whereas a unit trust tends to have rigid mandates that the fund manager must adhere to, your portfolio managers are subject to fewer restrictions, which gives them the ability to invest in line with their best investment views.

While you may prefer a customised portfolio with a traditional investment strategy focused on equities, fixed income and cash, we can also give you access to alternative asset classes previously available only to institutional investors. These could include hedge funds, private equity and private credit.

LENTSOANE: A critical aspect of wealth management, especially across multiple jurisdictions, is global estate planning. Why is it so important, especially if you have both local and offshore investment structures?

DAVID: Estate planning is a crucial part of ensuring the smooth transfer of your wealth to the next generation. It’s important to remember that each person’s estate plan is unique, and it’s about so much more than just estate duty and tax. It’s a highly complex area of expertise, and there are many factors to be taken into account, so it’s paramount to obtain expert advice to ensure that there are no nasty surprises for your beneficiaries when your estate gets wound up.

This becomes even more important if your beneficiaries live in another country.

Taking into account your financial assets and liabilities, proper estate planning can provide an excellent opportunity to restructure your wealth through, for example, local and offshore trusts. As part of your integrated wealth strategy, the Sanlam Private Wealth fiduciary and tax experts can assist you in setting up and managing local and offshore trusts, global tax structuring and estate planning, as well as administrative tax compliance services.

LENTSOANE: Does a customised wealth plan include access to equity-backed finance, where investors with existing equity portfolios can use them as collateral for a loan?

DAVID: Yes, as a Sanlam Private Wealth client, you have the option of using your equity portfolio to secure finance or arrange a short-term guarantee. The service is fast and flexible, and offered at highly competitive rates. This can be particularly useful for investors who may need quick access to capital and don’t wish to liquidate an investment portfolio in order to sidestep the cumbersome process of applying for a bank loan.

One final point: it’s important to note that a customised wealth strategy is not a once-off event. It is a dynamic plan which should be reviewed regularly – it will evolve in line with changes in your life circumstances and your goals, as well as market conditions.