How does PWM differ from brokerage firms, trust companies, banks and asset management firms?

We have ensured that our financial interests are aligned with those of our clients. PWM is independently owned and operated. We are not subject to outside influences regarding service, product or investment recommendations.

In addition, our investment management services offering provides expert counsel across the entire capital market spectrum, rather than in a single asset class or investment style. For those with more complex needs, our office services offering provides the high–touch experience and resources you might expect to find in a private office serving an exceptionally wealthy family.

If you have any further questions, please do not hesitate to contact us.

How will we work together? Will you be the only person working with me?

Your principle relationship resides with your advisor. We also have a dedicated support team at PWM who perform back office services.

The process we apply when dealing with clients helps them to know exactly what to expect next. It is broken down into five basic steps:

 

Find more information on the process here.

Why do I need to invest offshore?

Investing offshore allows you to access opportunities not available in South Africa. Some of the factors that may influence your decision to invest offshore include:

  • Spreading the risk – The cornerstone of any investment plan involves diversification – across assets, currencies and regions. Exposure to various world markets decreases overall risk. Exposure to mature markets – you gain access to a vast array of investment products available worldwide, and many are not offered in South Africa. South Africa’s stock market constitutes less than 1% of the world stock market capitalisation, and as such, by going offshore you gain exposure to various mature stock markets that invest in more developed sectors than on offer in South Africa, improving returns. This is achieved by gaining access to new markets and industries that are not available in South Africa. The performance of offshore investments, as with all your other investments, should be considered in light of a well determined long term time horizon.
  • Rand Hedging – This again reduces risk against the exchange rate volatility, and ensures your money is performing in more stable currencies.
How do I choose the correct wealth manager?

Choosing wealth manager may be one of the most important decisions you make for yourself and your family. Taking the necessary time to choose an advisor who is professional, competent and trustworthy, and has specialist knowledge is important. When people say they specialize in everything, watch out, because no one can specialize in everything. Those who focus on a specialized area, will have more expertise, and will offer better qualified advice, than those who try to master a wide range of areas.

Another key question to ask is client workload. If a wealth manager has more than a couple of hundred clients, they may be spreading themselves too thin. Be thorough when selecting a trusted wealth manager. After all, you’ll be entrusting this person to help you turn your financial dreams into reality.

How are you compensated? How will I pay for your services?

PWM charges an annual fee for investment management services. Our fees are based on a percentage of assets under management and the services provided. For example, a client with R5 000 000 would be charged 0.65% annually. The fees are automatically withdrawn on a quarterly basis.

How much should I invest offshore?

The two key decisions that need to be made for any investment portfolio are asset allocation (how you will split your money between shares, property, bonds and cash) and regional allocation (in which countries and currencies you will invest your money).

South Africa is responsible for around 1% of global gross domestic product and around 30% of our producer price index is imported. For private investors, the consensus of opinion is that 30% of one’s total assets should be invested abroad. The volatility of the JSE in recent years highlights the need for geographical diversification. Over-exposure to any one region is hazardous, and most advisors recommend a global portfolio, where risk is spread across several regions and asset classes.

If you have any further questions, please do not hesitate to contact us.

Where will my assets be held? What financial institution(s) do you represent?

PWM Wealth Management is allowed to market the products from the following companies, according to the Terms and Conditions of PWM’s Agreement with them:

ABSA Coronation Momentum Wealth* PWM Asset Management#
Allan Gray* Credo* Momentum Wealth Int.* Sanlam*
Ashburton EEA Life Nedbank Private Wealth* Sasfin
Bellwood Glacier* Nedgroup Investments* Standard Bank Offshore
Brooks Macdonald* IMI Old Mutual Stanlib
Cadiz Investec* Old Mutual Int.* Turicum
Canaccord* iTransact Prescient Xconnect
Capital International* Marriott Prudential  

The above (*) platform facilities have a range of funds or solutions, which we are able to offer as part of our advice, which fall within our licence categories.

The above (#) is owned wholly by BTG Holdings LTD.

PWM has terms of business/contracts with certain offshore product providers which are only available to non-South African residents and will be made available upon request.

PWM does not hold more than 10% of any of the above company’s shares.

PWM did not receive more than 30% of total remuneration, including commission, from any one of the above companies.

How do we begin working together?

We transition the management of your financial affairs in accordance with your specific needs and expectations. We will dedicate as much time as your situation requires while respecting your privacy and availability.

You can contact us or schedule an appointment here.