17 August 2023
The Glacier Life Investments Summit 2023, hosted as a webinar, and attended by more than 700 intermediaries across South Africa, created a platform for some intriguing knowledge-sharing and insights into the global and local world of investing. During this time of, arguably, unprecedented geopolitical and economic challenges, the Summit provides a platform to discover where opportunities exist and, in a world of uncertainty, how to create certainty for our clients.
Adrian Saville| Director | Centre for African Management and Markets (CAMM)
“Step off the dancefloor and observe it from the balcony.” In his very interesting opening presentation, Adrian explained that this means taking a step back from volatility, drama and noise. Key to this is recognising the difference between noise and news. News is information that has integrity and leads to insight and intelligence. Noise is distracting, unhelpful makes it difficult – though not impossible – to ‘hear’ the news. How do we disentangle from the noise?
Steve Vernon | President | Rest-of-Life Communications
Steve pointed out that retirement planning involves planning for a financial portfolio and a life portfolio – a strategy that caters to financial as well as life decisions. The longevity revolution in South Africa (we’re living, on average, 30 to 40 years longer than our ancestors 150 years ago), comes at a price. Spending safely in retirement means that retirees know their sources of income – the guarantee pay checks as well as the variable ones. This means making critical decisions around guaranteed life annuity, a living annuity with invested , and customised combinations of these. Life is uncertain and things can go wrong – a holistic plan takes into account all likely (and seemingly, unlikely) life and financial scenarios in retirement.
Linda Blom | Business Development Manager | Glacier by Sanlam
Linda unpacked how we solve for the risk of our clients’ increased longevity and retirees living longer than their capital. She points out that medical inflation outstrips our average CPI, increasing the costs of ageing. Hoping for good health is not a strategy. Healthcare costs eat into retirement income, and this is a key consideration in retirement planning.
Melanie Stockigt | Portfolio Manager | Laurium Capital
The current global economic environment provides a golden opportunity of investing in SA bonds. Melanie pointed out that SA bond yields require and are influenced by their risk premium. This premium, in turn, is influenced by factors such as global risks, SA economic growth, political and geopolitical tension and energy security. The good news is that this premium is reduced as risks are addressed (e.g., renewable energy strategies being advanced instead of relying completely on fossil fuels). As a result, SA bond yields could increase.
Linda Blom | Business Development Manager | Glacier by Sanlam
In her second presentation, Linda unpacked what it means to catch the curve for lifelong certainty in retirement income for clients. At Glacier, life annuities comprise, in large part, of government bonds. The average positive South African long bond yield over the past twenty years makes this solution attractive for retirees. However, combination solutions provide an optimal income strategy for clients. Combinations tick many boxes. Clients who are in a living annuity can be moved, at least in part, to a life annuity. These combinations cater for flexibility, lock in value and protect against market downside risk.
Siba Mgijima | Business Development Manager | Glacier by Sanlam
Siba examined the Sanlam Wealth Edge Endowment Plan and how it has been beefed up to be the endowment with muscle. The solution offers:
- Upfront commission flexibility for intermediaries.
- Fund choice from best-of-breed funds from Glacier’s Shopping List, which includes those representing all risk categories.
- A focus on offshore exposure for deeper diversification.
- A point-to-point unit price guarantee.
- A Wealth Bonus feature that offers clients an incentive to clients to stay invested for the term and longer.
- A customised Wealth Bonus structured specifically for the Sanlam Wealth Edge Endowment Plan.
Paul Wilson | Chief Investment Officer | Sanlam Investments Multi-Manager
Paul got to the heart of the Glacier Solution Funds for Life Investments by presenting the findings of a research study of multi-asset equity funds across the industry. Are managers catering adequately for the need for offshore exposure in funds? The components of funds are critical to intermediaries constructing portfolios for their clients. What recipe are they creating and are they using the correct ingredients? He has found that asset allocation to offshore is limited. As Solutions Architects, Sanlam Investments partners with intermediaries to create truly diversified portfolios for their clients, by tapping into managers with skill in appropriate areas, both locally and globally.
Patrick Mathabeni | Senior Research and Investment Analyst | Glacier by Sanlam
Patrick took a closer look at what unit-price guarantee really means and how it benefits clients seeking certainty in volatile markets.
Suren Govender | Business Development Manager | Glacier International
Suren pointed out that offshore investing is imperative considering that the SA industry comprises only 1% of the total global investable universe. There are opportunities offshore that should not be missed when building a diversified portfolio. Glacier International has ensured that accessing these opportunities is possible with simple processes that include multiple currencies, using solutions such as offshore wrappers, sinking funds and endowments, all designed with specific investor risk profiles, and tax and fee efficiencies in mind.
Neal Sinclair | Business Development Manager | Glacier by Sanlam
Neal concluded the intriguing Summit by providing feedback on the performance of Glacier’s structured products such as the new Glacier Top Brands Return Enhancer and the Glacier Capital Enhancer, which recently matured. The Glacier Top Brands Return Enhancer is linked to the performance of a global portfolio of companies that are among the largest, most well-known and well-perceived brands in their respective industries. It will offer a minimum level of return and attractive upside.
Back to Life Investment Summit 2023
