Tag Archive: practice management

Weekly Thoughts 29 September 2017

In the last two weeks I have listened to two fund manager presentations – Coronation and Marriott – as well as connected up to another two internet ‘webinars’, where we are on-line to an interactive training session.

Both asset managers covered the same theme, this being living on income from investments during the current, fairly flat period of time that the South African stock market has been experiencing. These two managers operate differently in terms of providing income. Coronation talked at length about the concept of capital drawdown, which is how their income is passed on. Marriott talk differently. I won’t say much more on this topic as I wrote about it in a mail in August.

The internet based ‘training’ sessions have been worthwhile. Both sessions continued to talk about practice management and adviser trends. The first about Investor Behaviour. This being the resultant trends that occur when clients manage their funds themselves, deciding when and where to invest. Asset Managers often share this information with us. They track the investment results over time that emanate out of this behaviour vs. letting an adviser help with the decisions and to help the client stay the course of time. In most cases investors underperform, mainly due to chasing past performance (choosing a fund that HAS been doing well), switching funds too often and then trying to ‘time’ the markets – trying to decide when the time to invest is right.

The second session was aimed directly at us advisers. The speaker asked whether we are providing a great client experience as well as how well our practices are evolving in order to keep up with many aspects of the industry, from advice, to products and companies used and then to our earnings models. In my opinion, from the live question and answer part of the presentation, more than half the participants are not moving forward.