At Ninety One, we understand the importance of continuous growth and development for financial advisors. But we also believe that, whilst technical knowledge about tools, systems and products are the critical core of our industry, personal development in the softer, less technical parts of our industry are equally as important. That’s why we are proud to present the Investment Platform Academy, our flagship leadership event tailored to the next generation of leaders in the wealth management space. This year, we had the privilege of hosting clients from 36 different corporates. Here are some of the highlights from our Investment Platform Academy.
We started the event with a captivating real-life story of a wealth manager’s trajectory to success, highlighting the importance of learning from past experiences. These experiences comforted the attending group of advisors, emphasising the reassuring notion that the (at times chaotic) path your career follows eventually finds its purpose when viewed in hindsight. Placing trust in the process and dedicating your time and effort toward the end goal forms an integral part of this journey.
An interesting case study that was shared dealt with the practical challenges when a small wealth management firm is acquired by a large institution like a bank. Whilst such a transaction provides benefits in the form of a leads source and collaboration across a much larger firm, the devil is always in the detail. And so how does one deal with a divorce once the negatives of the deal starts exceeding the benefits? The key takeaway from this experience is the importance of dealing with termination obligations upfront during the initial negotiation of the transaction, to ensure the demerger process is transparent and predictable for all parties involved upfront. The objective, similar to a marriage prenup agreement, is to avoid any unwelcome surprises for either party.
Two of our firm leaders, Sangeeth Sewnath and Richard Garland, shared their insights about current trends in the global advisory industry. They highlighted that many banks worldwide have struggled when venturing into the wealth management sector. This stems primarily from a lack of focus; conflicts of interest, and regulatory burdens. Interestingly, some global asset management businesses have followed the same direction (i.e. launching wealth management businesses), unlike SA, where financial planners have branched into asset management.
In a room filled with younger advisors hoping to grow into the next leaders in wealth management, the topic of succession planning peaked everyone's interest. The idea of introducing a principal investor’s children to a younger advisor raised concerns, especially when considering implementing a holistic family planning approach. This approach might involve two different advisors working with the same family, potentially causing confusion.
Richard emphasised the importance of generational financial planning within the family planning model. Advisors should carefully craft strategies that align with the best interests of the clients. The transition to a successor should ideally benefit all parties involved, especially for the new and often younger advisor taking over.
Understanding your clients on a deeper level is key to providing exceptional financial advice. The Insights Discovery model was introduced to help advisors navigate their clients’ diverse personalities and preferences. Trevor Hough, an organisational psychologist, offered expert advice on the relevance of perception. In an industry centred around people, communication, emotions, and connections - the more we recognise different personality traits and adapt accordingly, the more successfully advisors can enhance financial consultation and the planning experience.
Our panel of portfolio managers and analysts offered valuable insights into current trends encompassing politics, markets, and artificial intelligence (AI). Amidst the buzz and excitement surrounding AI, finding investment opportunities can be challenging. The constant emergence of new apps adds an element of uncertainty to the equation, leaving us unsure about which ones will ultimately thrive in the long run. Nevertheless, alternative avenues for investment exist within this domain – they key is to look beyond individual apps, and focus on the underlying models and infrastructure that will be required for wide-scale deployment of AI. By focusing on this aspect, the success of any particular app becomes less significant, as each one will inevitably rely on these essential components. This perspective draws a parallel between AI and the 18th-century gold rush, stating, “When everyone’s looking for gold, it’s good to be in the pick and shovel business.”
In the context of our discussions, highly debated topics such as inflation and interest rates were explored by our portfolio managers. One recurring concern centered on the anticipation of prolonged periods of elevated inflation and interest rates. Concurrently, global debt levels were another matter of growing apprehension. Despite these concerns, there are companies that have demonstrated an impressive ability to grow and thrive in this challenging environment – emerging as the winners in these uncertain times.
The emergence of digital marketing presents both opportunities and challenges for financial advisors. In a time where every industry aspires to adapt and thrive, it’s important not to spectate merely but to engage thoughtfully. Donna Barnes, Creative Marketing Director at Ninety One, underscores the allure of platforms like TikTok while emphasising the importance of upholding professionalism. She recommends using social media presence to guide users to your official company website. The key takeout from this discussion was that it is worthwhile for advisors to channel time and effort into enhancing their clients’ online experience with the firm.
As we embrace the digital age, cybersecurity is an ever-increasing area of concern. In his talk Brad Boulle from Trinexia featured examples of the unassuming methods used by scammers to gain your trust and to ultimately steal your credentials or tap into your firm’s various software systems. Advisors must educate themselves and their clients on the risks associated with various online platforms. He mentioned the following four easy controls as a solid starting point.
Just as you wouldn’t forgo car insurance, cyber protection has become a necessity that should never be underestimated. In the words of our speaker, “You won’t take sweets from a stranger” – be cautious and stay protected.
The choice of legal and product structure for a client can significantly impact the effectiveness of a financial plan. Understanding the subtle differences between product structures offered by different providers is vital. Our Masterclass duo Marc Lindley and Albert Coetzee, reminded us that advisors should pay attention to the small details when structuring their clients’ plans. A product is not just a product, and every providers solution is not created equally.
The Ninety One Investment Platform Academy aims to create a network and community for up-and-coming leaders in financial planning. By providing knowledge and skills on relevant and topical issues, we aspire to equip advisors with the tools they need on their personal and professional growth journeys.