Standard Bank Wealth and Investment has been awarded the Outstanding Global Private Bank in Africa and the Global Best Next-Generation Offering award at the 29 th Private Banker International Global Wealth Awards 2019.
Private Banker International is a leading journal for the global wealth industry.
The awards were held in Singapore today and were attended by influential decision-makers who are shaping the future and narrative of private banking and wealth management in key regions across the world.
Chris Browne, Global Head of Wealth and Investment at Standard Bank says, “these awards are a testament to our ongoing commitment to wealth preservation and service excellence. We take pride in building deep and meaningful relationships with our clients. We are proud to be recognised on a global platform for our Generational Wealth offering, and to be the preferred institution of choice across the African continent.”
Standard Bank Wealth and Investment has a presence throughout South Africa as well as Kenya, Nigeria, Ghana, Uganda, Mauritius, Jersey and London. This international footprint, combined with the Standard Bank Group’s own African and international presence, and over a 156-year heritage, empowers the division with the diversification needed to lead a globally effective wealth strategy.
Mr Browne adds that the awards, “spur us to continue giving our clients superior service and helps drive our Group purpose that Africa is our home and we drive her growth.”
The Private Banker International Award announcement follows Standard Bank Wealth and Investment being recognised as Euromoney magazine’s Africa’s Best Bank for Wealth Management in July 2019, further reflecting consistency in delivering solutions that matter. Additional Euromoney awards received include Best Bank in South Africa and Best Bank in Uganda.
Disclaimer: Standard Bank Wealth and Investment offer our clients tailored solutions, designed to help manage, grow and protect their generational wealth and that of their families. Our goals-driven investment approach allows our clients to take a long-term view of their investments, whilst simultaneously meeting their short-term lifestyle needs.
... View more
Every parent dreams of creating financial freedom for their children and to provide a better life for them. A life free of any financial burden sets the foundation for even future prosperity. Parents strive to leave their children a financial legacy that will provide for intergenerational wealth.
However, without proper planning, the inheritance you leave behind could dissolve rather than providing your children and grandchildren with a solid financial future. There are as many considerations around intergenerational wealth planning as there are solutions.
At Standard Bank Wealth Management, we work closely with our clients and their families to ensure their legacy wishes are met. To help your family prepare to inherit your wealth a few things need to be considered.
Firstly, professional advice is key in considering the appropriate structure, relevant to the circumstances of each family and it’s important to never take a general approach.
When thinking of how to protect one’s assets when moving from one generation to another the focus should the protection of beneficiaries from unintended consequences. The transfer should be practical and not a burden to heirs/beneficiaries. The appropriate structure attention should be given to ensure there is sufficient provision for heirs and/or beneficiaries of trusts to provide for future income and capital requirements of heirs and/or dependants (insufficient provision will result in the sale of potential growth assets).
Secondly, sufficient liquidity to fund taxes (CGT, Income Tax, transfer duty) and professional fees for example executor fees should be factored in. Other considerations depending on each families’ circumstances may involve business continuity - a major consideration for families with operating companies. Lastly, appropriate structures for the purpose of leaving a legacy for Philanthropic purposes require professional advice.
Much like all things there are bound to be a few obstacles and potential pitfalls. Clients should be mindful of restrictive will provisions clauses in a last will and testament and trust deeds. Outdated or inflexible structures may not stand the test of time and regulatory changes may lead to the unintended consequences the family never planned on. Often the lack of liquidity to fund expenses, taxes or support heirs requires assets to be sold and unfavourable prices achieved. Tax mitigation and planning is important but should not be the sole purposes for planning.
There are numerous acts that impact and influence wealth planning to name a few but not limited to:
Estate Duty | Transfer duty | Administration of Estates Act | Exchange control | Maintenance (children and surviving spouse) | Long term Insurance Act
Every family is unique and therefore no single method would apply in all situations. However, part of the planning process is to ensure the next generation is equipped to receive the wealth, appreciate its value and make smart investment choices.
... View more
Standard Bank, STANLIB and Liberty are excited to announce the launch of 1nvest, a specialist index tracking fund provider. Geared specifically to provide simple, transparent and cost-effective passive investment products, 1nvest specialises in index tracking unit trusts and exchange-traded funds.
1nvest is the product of collaboration from all three businesses under the Standard Bank Group, Africa’s largest financial services group, combining existing index funds, experience and expertise to provide clients with a comprehensive range of 28 index tracing funds across multiple asset classes and geographies.
Index investing or passive investing has seen enormous uptake in more developed markets. According to Moody’s Investor Services, the adoption of passive investing in the US continues unabated with US passive investment funds set to overtake active funds by 2021.
Johann Erasmus, 1nvest Executive observes, “while the total amount of money invested in passive funds in South Africa is small compared to managed funds, an ever-increasing number of investors are showing interest in index funds as part of their larger investment portfolios”.
A big driver of this is the low-cost return, simple and transparent access that these products offer.
Index funds, as the name suggests, track market indices and don’t require a portfolio manager to carefully manage asset allocation. This means that fees are reduced and investment return that closely matches the targeted index is delivered .
Wehmeyer Ferreira, 1nvest Executive notes “over the last year or so, investors have become spoilt for choice as issuers have listed various new exchange traded funds (ETFs) on the Johannesburg Stock Exchange, offering both local and offshore exposure”.
But with a wide variety of options, investors may feel overwhelmed by what is becoming a vast landscape of product offerings. 1nvest has five broad product ranges that span equities, fixed income, commodities and property asset classes. These include the Local, Global, Blended, Commodity and Smart Beta ranges. That’s why 1nvest has made it simple. No matter who you are, no matter what you want to do, 1nvest provides the building blocks for a well-rounded investment portfolio.
1nvest gives investors the tools to grow their money and take control of their own future, in a way that is simple, straightforward and open. With the backing of the finest minds from the country’s most trusted financial institutions, we work with investors to build their wealth and achieve their financial goals.
For more information: https://www.1nvest.co.za/
... View more
Please call the Instant Money Customer care number on 0860 466 639 or email [email protected] Alternatively, if the receiver tried to withdraw using the pin and used the wrong pin until it blocked, the Instant Money sender will receive a new pin from Instant Money voucher.
... View more
You currently cannot change from Cheque account to MyMo account. The account is avaible to new to bank customers. For more information on this, please forward your query and contact details to [email protected] .One of our consultants will be able to assist you with your query.
... View more
Choosing to skip big payments like vehicle and mortgage loans may sound like a good idea at the time, but this has negative consequences that hit your pocket and good financial standing.
Various solutions and help are available for anyone struggling to keep up with their monthly financial obligations. Whether its drawing up a budget and sticking to it or approaching your bank earlier for help, consumers can avoid being heavily indebted or blacklisted if they take key steps.
South Africans are going through tough times, with job losses hitting industries like mining, construction and utilities.
Our advice to consumers was to also think of saving. It’s always important to save money for a rainy day. Think of a goal like paying off school fees, while also bearing in mind not to skip essential payments. The reality is that payment commitments must be prioritized.
A great saving tool is the clever use of several rewards programmes like UCount, which you can redeem at a Caltex garage to fill fuel, and make a saving on this expense. With such rewards, consumers can make relevant purchases to earn points and save, using selected partners.
When faced with failing to maintain monthly vehicle repayments, options like downgrading the car for a more affordable alternative, joining a lift club, reviewing your insurance agreements or using convenient public transport are also available.
Tips for when in financial distress
Identify the challenge early
Speak to the right people. Approach your bank first
Prioritise the debt
The bank is in a good position to assist, before the problem worsens
Don’t fail to communicate and leave the problem until it’s too late
Without a budget goal, you can’t see where your money is going
Different and innovative savings vehicles
Set aside small change from purchases. It can make a difference later
Use the Shyft App, it has great rewards like reaching a goal step
Fixed deposits and Money market accounts are excellent saving tips
Use rewards programmes like UCount and save when refilling on petrol
Make use of store loyalty cards, some of them have a lot of value
When you can no longer afford your current pricier vehicle, look at downgrading to a more affordable option
Don’t cancel your vehicle insurance
Join a lift club
Consider using public transport, if convenient to where you live and work
... View more
Congratulations to our winners!
Because you didn’t just like it, you swiped your Standard Bank Credit Card and got rewarded a lifetime chance to watch the Boks play in Japan. In addition, you will get to explore the beauty of Japan and tour ancient landmarks and beautiful gardens.
Here are our lucky winners! Hope you’re all packed and #GoodToGo.
Stephen Thomas Ryan Mains-Sheard
Donald David Wheeler
Christiaan Jacobus Coetzee
Warren Michael Ebben
Sinenhlanhla Theodosia Mngomezulu
Mudimeni Isaiah Ramabulana
Bradley Ryan Haynes
Go out and enjoy all that Japan has to offer and then grace the stadium for a VIP match day experience courtesy of Standard Bank and MasterCard.
See you there! Post lots of pictures.
... View more
Just like a masterpiece starts on an empty canvas, and a symphony begins with one small note – every great artist starts somewhere too.
For 35 years, we’ve been invested in the stories and journeys of some of our country’s greatest artists. The people whose pictures have made our walls come alive, and whose lyrics have made our hearts sing for joy.
We believe that art, in any form, has the ability to transform a society. It has the potential to take us places we never dreamed possible. It has power. And like Romera Britto said, “Art is too important not to share.”
It’s why we’ve been involved in initiatives like the Standard Bank Young Artist Awards - acknowledging emerging, young talent in different disciplines and affording them national exposure and acclaim. It’s seen the likes of William Kentridge and South Africa’s first lady of song, Sibongile Khumalo climb the ranks and grace the world stage.
Giving the youth access and a platform to be recognised is something we are very passionate about. Both the Standard Bank National Youth Jazz Band and the Standard Bank National Schools Big Band have afforded many young artists the opportunity to perform with some of the world’s best musicians. Jazz trumpeter and composer, Mandla Mlangeni is proof of this, having had his talent nurtured through both these bands.
It’s not just an opportunity, it could be a life changing one - because while a young musician may walk onto the stage, the next South African legend may walk off it.
The opening night of this year’s Standard Bank Joy of Jazz will host some of the Standard Bank Young Artist alumni who will perform to thousands of South Africans, and the Youth Jazz Band will be performing alongside some amazing acts too.
On Heritage Day, as we celebrate our country’s cultural wealth, our National Schools Big Band will be stepping up onto stage and performing with world-famous, Grammy Award and Pulitzer Prize winner for Music, Wynton Marsalis. He is someone whose talent surpasses the norm. Someone who is at the pinnacle of brilliance. And just like everyone else, also started somewhere.
For us, it’s more than an investment into the arts, it’s a commitment to our youth and our future.
Because art can make the biggest impact. One chord can inspire a chorus, and a single lyric can start a movement. So, if we can change just one artist’s world… play on.
... View more
Please send your query and contact details to [email protected] .One of our consultants will be able to assist you with your query. Alternatively, you can check your balance on your Standard Bank App.
... View more
This year marks the sixth of the competition that annually awards a cash prize to the producers of the top 10 Chenins selected. The stipulation is that the money - R25 000 per winning wine – goes towards a socially sustainable initiative involving wine-farm workers. To date R1,1 million has been spent on social upliftment programmes.
The Standard Bank Chenin Blanc Top 10 Challenge list for 2019 includes (in alphabetical order):
Cederberg Cellars Five Generations 2017
DeMorgenzon Reserve Chenin Blanc 2018
Durbanville Hills Collector's Reserve The Cape Garden Chenin Blanc 2018 (Debut)
Flagstone Winery Tributary Bush Vine Chenin Blanc 2018 (Debut)
Ken Forrester Wines The FMC 2018 (Debut)
Kleine Zalze Family Reserve Chenin Blanc 2018
Kleine Zalze Vineyard Selection Chenin Blanc 2018
Rijk's Cellar Touch of Oak Chenin Blanc 2017
Slanghoek Wynkelder Legends Barrel Fermented Chenin Blanc 2017
Stellenrust The Mothership Chenin Blanc 2018
... View more
The pace and scale of digitisation in the financial services sector continue to accelerate. The high-touch wealth management sector, in particular, is embracing technology in both back-office and front-end functions.
Eric Enslin, CEO at FNB Private Wealth and RMB Private Bank, believes most financial institutions understand the massive opportunities that technology offers to enhance administration, meet rising compliance requirements, inform their wealth management strategies and, importantly, engage with clients in relevant ways.
“Digital technologies reduce friction for both Wealth Managers and clients by offering faster paperless, processes, convenient investment tracking online via the web or an app, and easier access to commoditised products like tax-free accounts.”
Mike Wood, Director at Apio Wealth, agrees that technological advancements have had a substantial impact on efficiency and effectiveness.
“Failure to implement and utilise the many technological resources now available to Wealth Managers will have detrimental consequences for their business. With advanced programmes designed to complete financial needs analyses, estimate estate costs and needs, and project future returns and values has, in my opinion, allowed for one advisor to more efficiently manage and serve a much larger customer base without sacrificing on the quality of advice they offer.”
However, technology's greatest value for Wealth Managers lies in its ability to deliver bespoke, hyper-personalised solutions.
Shaun Kotwal, Head of Wealth and Investment, South Africa for Standard Bank, explains that while many financial services providers embrace digital and platform technologies to offer clients convenience and offload many basic processes or repetitive tasks to the end-user, this functionality doesn't reinforce the wealth management principles that resonate with high-net-worth individuals (HNWI).
“We, therefore, invested significantly to develop relevant solutions across mobile and web, with a focus on how technology can elevate client relationships and interactions, and augment the process to prioritise their unique needs, like aggregating investments to provide a single view of their portfolio, and improve their ability to achieve their goals, such as protect, grow or transfer wealth.”
A HNWI's financial circumstances are also, generally, more complex than those of a retail investor's. “Wealth Managers should, therefore, leverage technology to understand these complexities and structure relevant solutions through personalised scenario planning and forecasting.”
Specifically, technologies such as analytics, artificial intelligence (AI) and machine learning (ML) can analyse big data and segmented client-specific data to construct personas and client profiles that inform customer journey mapping.
“AI helps us find commonalities and uncover insights, while ML provides an overlay to reveal how under-invested clients may be in a sector or spot gaps in portfolio construction. We are then able to model returns and growth and anticipate liabilities, which helps us make clear, informed personalised investment decisions. But rather than disintermediate the Wealth Manager's role, these technologies augment the human advisor-led approach, which helps clients to remove emotions from the decision-making process and instils greater confidence in the proposed approach,” continues Kotwal.
Winston Monale, Head of Absa Wealth Advisory, states that a Wealth Manager's role is primarily to understand a client’s current and future financial needs and help them achieve their investment objectives.
Within Absa Wealth, investment teams already leverage AI and ML to predict returns at an asset class, fund and a stock-specific level. “These key inputs inform asset allocations and portfolio construction. And these technologies will play increasingly pivotal roles as next-gen investment teams implement algorithmic trading programmes.”
Beyond investment management and fund construction, Monale adds that AI is also dispensing advice via rules-based systems.
“While technology is a great enabler and there may be many instances where taking the emotion out of an investment decision may be optimal, wealth management requires a human touch to give clients peace of mind regarding their financial affairs. We, therefore, believe that AI-enabled robo-advisors and humans do not compete, but rather complement one other. If we understand where the synergies lie between humans and machines, we can leverage these technological advancements to enhance what we do for our clients and how we do it.”
Mike Wilmot, Head of Advice and Solutions at Nedbank Private Wealth, believes the emergence of AI-enabled robo-advisors will positively and profoundly change wealth management.
“This technology will broaden market access to investment expertise and advice in a commercially-sustainable way, compared to traditional people-based financial planning and wealth management models. However, robo-advisors will not replace wealth management advisors. Augmented advice or hybrid models will bring to bear the best ideas and services delivered by humans, augmented by tech across many areas of the wealth management value chain, which is extremely exciting for clients, the industry and the economy.”
Tom Elliott, deVere Group's international investment strategist, elaborates that HNW and UHNW individuals, in particular, will always require access to expertise on tax, property, trust law, among others, which are surprisingly subjective and, as such, not amenable to AI.
“Wealth Managers that offer these services may find they are managing client money as a loss-leader, perhaps using their robo-advisors to do so. Wealth Managers unable to offer additional professional services are particularly vulnerable to cheaper AI-driven platforms.”
Reginald Labuschagne, Head of Product and Strategy at Sanlam Private Wealth, agrees that self-service advice works in certain instances, but as complexity increases, technology cannot yet replace expert human interactions.
“Technology eliminates onerous elements from the client engagement and wealth management processes. This creates opportunities to elevate client conversations and improves outcomes to deliver greater value, which is important because clients still want the human element in their engagements, often to assure them that the proposed approach is correct.”
... View more
Investment trends are shifting across the globe. In their quest to deliver risk-adjusted returns in increasingly volatile markets and meet shifting investment preferences among high-net-worth individuals (HNWI), wealth and asset managers are boosting alternative investment allocations.
According to the PWC Asset Management 2020 report, alternative investments, which include hedge funds and hedge fund-like products, private equity funds and real estate, will grow considerably faster and become more significant components within investment portfolios by 2020. The report predicts that alternatives, together with passive investments, will account for 35% of total assets managed by the global asset management industry.
Shaun Kotwal, Head of Wealth and Investment, South Africa for Standard Bank, affirms that alternative investments have become more prolific within local portfolios in recent years.
“While the search for yields has driven this trend globally, the need to diversify largely accounts for the rise in popularity for alternative investments in South Africa as asset managers look for ways to demonstrate alpha.”
Shifting preferences around an investment's potential impact on society or the environment have also grown significantly and have become a prolific driver of environmental, social and governance (ESG) and socially-responsible impact (SRI) investing.
Initially driven by millennial HNWIs and investors, wealth and fund managers embraced this investment approach to build loyalty with this emerging generation.
“This prolific generational cohort generally doesn’t want vanilla offerings. For instance, by investing in passive investments, they could buy the entire market, which can expose environmentally-conscious or socially-responsible investors to companies that may not align with their values or ethics,” explains Kotwal.
As such, wealth and asset managers have embraced this approach to meet shifting client investment preferences, while also establishing themselves as good corporate citizens.
“Creating opportunities to invest in alternatives locally and offshore is core to our vision of being a client-centric organisation. We, therefore, leverage partners that align with client preferences and solve for client needs to ensure these investors can invest in companies and products that are relevant and important to them.”
Importantly, it is now possible to invest in companies that in some way improve the world and yield returns.
“Numerous studies show that investing responsibly in this way does not imply that company profitability and share price performance are necessarily foregone,” states Winston Monale, Head of Absa Wealth Advisory.
“Companies that take the time to consider their impact on the environment and broader society, and the way they operate internally are often successful specifically because they pay attention to these factors, in addition to their financials. Investment managers can direct portfolio flows towards these types of assets, but individual investors can also mandate their investment managers to restrict their investment to a bespoke portfolio that builds heavily on ESG-cognisant companies.”
And in an environment where significant corporate governance issues have emerged among numerous listed companies, this trend increasingly transcends generations.
“We now see a cross-generational drive where it is no longer just millennials pushing ESG investing. Older generations also want to invest in ethical, transparent companies that do good and are making the world a better place,” continues Kotwal.
This, however, isn't always a simple proposition, elaborates deVere Group's international investment strategist, Tom Elliott.
“ESG investing, like other thematic strategies such as demographics and renewable energy, requires a subjective impute to effectively determine which companies offer suitable investment opportunities, which is more complex than many clients first assume.”
For instance, Elliott posits that if a large oil company invests billions of dollars into renewable energy, do ESG investors invest in it, even if it still derives the bulk of its current profits from fossil fuels?
“Once you remove sin sectors such as gambling, guns and alcohol, do you remove retail stores that sell them? For this reason, thematic funds are problematic from a retail client perspective. While an institutional client can work with a large pension fund or insurance company to create a bespoke portfolio that fully aligns with a client’s objectives, a HNW client will more often than not be offered an off-the-shelf fund that may or may not meet their understanding of what the fund invests in. The lesson in this regard is to always look under the bonnet before committing to an ESG approach.”
... View more
Six months into her new role as CE of Standard Bank Wealth SA Peggy-Sue Khumalo shows no signs of being the new girl in class. According to Khumalo, her recent appointment feels quite the contrary. This is the homecoming moment of my career. Arguably the largest wealth management business in Africa spanning asset management, short and long term insurance, and servicing clients from across the spectrum from retail, to high net worth corporate and commercial clients, the scale and scope of Khumalo's stewardship is formidable.
She is undaunted by the assignment and her mission is clear. "Standard Bank has completely transformed and reinvented itself. It is now our responsibility to make sure that transformation and diversity not only happens at the top echelons but is infiltrated throughout the group. The balance sheet must look good at the end of the financial year, but I also have a broader purpose - to make sure that in the South African context we are able to redefine and create wealth in a manner that is inclusive."
This is not unfamiliar terrain for Khumalo, her resume attests to her adeptness at not only taking a seat at the table, but widening the space for all invited. During her tenure at Investec, Khumalo was credited with navigating the bank to new spaces through her unswerving quest to bring in new business "I pounded the pavement to bring in the new and made sure that when black business came through the door, we were able to unlock access to capital for them, particularly public sector and BEE financing."
So while it is evident that Khumalo has the resume and the technical competencies to assume the mantle of leadership in her new position, there are other equally potent factors in her arsenal. Her life, which began in rural Kwa-Zulu Natal, has provided Khumalo with a deep understanding of poverty, inequality and injustice. Long before obtaining her Masters in Economics from Manchester University in the United Kingdom, the University of Life had thoroughly schooled Khumalo on the harsh realities of being a "have-not".
Khumalo is the daughter of a woman who was denied access to education and forced into employment as a farm labourer at the tender age of 14. A woman willing to sacrifice everything to ensure young Peggy-Sue would not endure the same limitations and hardships in life. A woman, who to this day, is both the anchor and the moral compass guiding Khumalo's extraordinary trajectory. Every lesson is firmly embedded in Khumalo's memory bank, "My successes are mirrored by my mum's struggles. I am spiritually guided by the notion that to whom much is given, much is required. I carry that with me every single day." Perhaps, this is where the true seeds of wealth are planted. As she steps out in pursuit of her mission, Khumalo is reminded of the words of Maya Angelou, "I stand as one, but I come as 10,000."
This article first appeared in Lifestyle and Luxury South Africa.
... View more
Hello Steblooi ,
Please restart your device.
Tap to your top right corner (Transact)
Select: Send Instant Money.
Select Manage vouchers.
Select the voucher you would like to reverse and delete and confirm your transaction by using the pin that was shared with the receiver.
... View more