Connect with us

Company Posts

What To Consider When Investing Your (Hard-Earned) Money

A debate regarding active versus passive investing can quickly become heated, but the issue is far more nuanced than it might seem at first. It’s not as simple as choosing one over the other. Successful portfolios are balanced.

Sasfin

Published

on

sasfin-bank-financial-management

Vital Stats

  • Player: Michael Sassoon
  • Company: Sasfin
  • Position: Head of Wealth and Capital, Executive Director
  • Visit: www.sasfin.com

It isn’t hard to see the attraction of a passive investment strategy: Set it, forget it, and save a ton of money on fees. But it’s not as simple as that. Sure, passive investing has its upsides, but it’s not quite the can’t-lose strategy it’s sometimes made out to be. There are still risks. And there are still fees.

Most importantly, though, it can oversimplify the process of wealth management, ignoring the needs, wants and personality of the person involved.

michael-sassoon

Michael Sassoon

“A person’s relationship with his or her money is a very personal thing,” says Sasfin Head of Wealth and Capital, Michael Sassoon.

“Successfully managing someone’s investments means understanding what their overall financial situation is, and what their investment goals are.

Related: Raising Capital In A Worsening Macro-Economic Environment

“You’re often acting like a psychologist, encouraging them to spend less and save more. It’s also about helping people to manage risk and finding a solution that suits their risk appetite by appropriately blending different asset classes.”

Active and passive

Sasfin believes in a bespoke approach that suits the individual. So, does that mean that the company is against passive management? Surprisingly, the answer is no. According to Michael, a good argument can be made for blending the two.

“Passive investment can be useful as part of a comprehensive investment strategy, particularly if you’re trying to get some exposure to the market, but it is merely one tool in the toolbox. Any passive investment has to be looked at within the context of broader portfolio management decision-making.

“Fund managers at Sasfin can combine active and passive investments to manage a balanced portfolio for asset allocation and single-asset classes. ETFs (exchanged-traded funds) can be a cost-effective way to get exposure to specific asset classes and their respective traits or styles i.e aggressive, or conservative,” says Michael.

“So, it’s not as simple as choosing between active and passive. The whole landscape has evolved to a point where passive investing can be quite hard to define. Passive investing comes at a cost that needs to be evaluated, and all forms of passive investment require a component of active management initially, and at somewhat regular intervals thereafter.”

Fees must fall

fees-must-fall

In fact, the issue isn’t really about active versus passive. The issue is fees. “The big problem a lot of people have with active funds are the fees involved, and that is where some sort of change needs to take place.

Related: How Do I Go About Valuing My Business?

“The industry has a lot of layers — lots of brokers, advisors, and so on. There are a lot of mouths to feed, which is why active management can be expensive. But it needn’t be. Active management can be offered in a more cost-effective way by appointing a portfolio manager to construct a direct share portfolio — thereby getting rid of some of the layers and complexities.”

How can this be done, though? How can you make active investment more affordable? The answer is simple: Technology.

Rise of the robo-advisor

One would expect a company like Sasfin to bemoan the recent rise of automated investment and robo-advisors. Instead, though, the company has invested in a Silicon Valley-based start-up that is in the business of creating robo-advisors.

“Our industry is ripe for disruption,” says Michael. “Changes are definitely coming. But we don’t view it as a bad thing. We actually believe that it can help us in making active management more accessible to more people. We believe there’s tremendous value in sitting across a table from a client and helping him or her map out their financial future, and technology can help us reach more people.

“There are elements of the process, regardless of whether you’re looking at active or passive, that can be digitised. Technology can help us streamline and simplify active asset management, and that’ll make it more accessible,” says Michael.

“It’s not about active or passive — it’s about a comprehensive strategy that works for you.”

Related: Raising Capital Through A Black Economic Empowerment Transaction

Take note

Sound investment isn’t as simple as choosing between active and passive. Any investment should be looked at within the context of a larger portfolio.

Sasfin Corporate Finance focuses on providing innovative commercial and banking solutions to our clients. As an accredited sponsor and designated advisor with the JSE, we offer our sponsor and designated advisor clients independent advice on a full range of corporate finance transactions including advice relating to continuing obligations in terms of the JSE Listings Requirements. Sasfin Capital is a division of Sasfin Bank Limited, a subsidiary of Sasfin Holdings which listed on the JSE in 1987

Company Posts

Why Customers Don’t Respond To Disruption

You’ve got chatbots running your customer service, interactive screens across your stores and you’ve just appointed a chief digital officer. Why aren’t you seeing sales going through the roof?

PwC

Published

on

By

disruption

PwC partner Quinton Pienaar says there could be many reasons for this. But the short answer is probably that in your understandable rush to stay relevant and keep up with the latest technology trends and developments, you lost sight of your number one priority. You’re just not that into your customers – and they know it.

It’s fairly easy to get dazzled by the array of technologies out there. But the trap that you’ve got to guard against is that you start seeing the world through a technology lens, rather than a customer one. Remember, technology is a tool, not an outcome. It’s the means to the end, not the end itself.

That’s not to say you shouldn’t be transforming your business digitally. You absolutely should. But there’s a big difference between investing in technology to keep up with the Joneses, and investing in technology that’s going to drive specific business outcomes and improve the customer experience.

Related: Reimagine The Use Of Technology

In fact, it would be downright dangerous to ignore the game-changing benefits that the current wave of emerging technologies brings to the table. To understand what they can do for your business, you have to know what they are. We at PwC talk about the ‘essential eight’:

  • The Internet of Things (IoT) and Artificial Intelligence (AI) are the building blocks for the next generation of digital work.
  • Robotics, drones, and 3-D printing are all about machines that extend the reach of computing power into the material world.
  • Augmented reality (AR) and virtual reality (VR) merge the physical and digital realms, and offer incredible advances in customer experience.
  • Blockchain rethinks our approach to commercial transactions by allowing participants to exchange value, and verify ownership of something, without a third party.

Some of these technologies are verging on science fiction. So how do we use them in a way that supports customer obsession? The starting point of any successful customer transformation is a customer-focused design that brings together three essential elements – business strategy, customer experience and technology – into a coherent, fully-fledged digital strategy.

In other words, today’s most successful companies have a strategy that is focused around a simple and regularly-updated list of priorities. They incorporate the new generation of technologies like IoT, blockchain and AI. But they keep their people, and their customers at the core of their business by designing strategies that directly address customers’ underlying needs and desired outcomes.

Related: Why Your Latest Tech Investment Might Not Be Wowing Your Customers

This sounds dead obvious. But what we find is that many companies we talk to are focused on growing their revenues, or making improvements to their products and services, rather than creating better customer experiences. Or they have the strategy, but are battling to execute it effectively.

Of course, to underpin this customer transformation journey, you’re going to need some data and the foundational technologies on which today’s innovations depend – data mining and analytics, mobile, and cloud. You may also need to rethink your processes to manage, enrich and maintain data, and operationalise it throughout your business.

So you have all of that in place? Good. Now stop. Breathe. Ask yourself whether your technology and data are truly supporting an unwavering focus on the customer. Because if you take one message from this article, let it be this: in today’s marketplace, putting your customer at the centre of your business is imperative to driving growth and profitability, winning market share and unlocking the value of your technology investments.

Continue Reading

Are You Suited to Entrepreneurship

Start This Business With Zero Advertising Budget And No Need For Premises

What do we need to do to make our chances of entrepreneurial success as high as possible? Is it possible to build and position a business that has the highest statistical chances of survival? How would we even go about building such a business? Financial Freedom Project seems to have the answer.

Financial Freedom Project

Published

on

stay-at-home-mother

What are the causes of most business failures?

When it comes to business failure in South Africa, the numbers aren’t optimistic. Some of the more common reasons for business failure include:

  • Start-up funding
  • Ongoing support
  • Lack of new business to sustain growth
  • Admin time / costs associated with running a business
  • High cost of equipment / premises
  • Advertising budget
  • Cost of personnel labor
  • Legalities of employment contracts
  • Costs of credit
  • Market experience
  • Competition within the industry
  • Current market conditions.

With the odds stacked against you, what type of business could you start that offers you:

1. Minimal start-up funding

Consider minimal start-up funding requirements to mitigate as much risk as possible and make start-up as easy and quick as possible.

We need to go as low as less than one month of one month’s average salary as so to be able to start this business on the spot. Let’s make our criteria less than R10 000.

Related: 15 Things Every Newbie Needs to Know About Starting a Business

2. Mentor/ Trainer support

For support and experience we need to have easily accessible communication methods with a mentor / trainer i.e. WhatsApp and skype.

3. Access to a market full of customers with unlimited spending ability

Want a colossal market, how about an estimated 5.3 Trillion Dollars a day?

4. No need for an advertising budget

Maybe a business where customers come to you without advertising because they want what you have. Let’s be ridiculous and put a zero advertising budget.

5. Minimum paper work / admin requirements before and after sales

Let’s aim for no admin and have everything processed and stored online for absolute minimal ongoing costs.

6. No premises required

You can work from anywhere at minimal cost and only need one computer.

Related: Why Build a Business Just to Close It?

7. No employees required

This business must be able to run as a “one man show” as to exclude all labor costs and employment legalities. As in previous point, let’s aim for one person to run this business and internet to stay connected to the world.

8. Little competition

This industry offers the least possible competition between participants.

9. A industry with no “seasonal times” so you can make money all the time

To get a never ending supply of opportunity we absolutely have to be a part of the global supply and demand system.

10. A proven concept

This will be outlined below.

What’s the business?

Financial Freedom Project provides you with a long-term financial freedom by utilising financial markets. The Financial Freedom Project is a results-based wealth creation training and mentorship programme that has start-up capital requirements of only R4 000 to begin accessing markets.  The course requires only 3 days of your time and offers unlimited course re-sits.

For more information about how you can work with Financial Freedom Project visit financialfreedomproject.net or call them on 010 020 5699 for further info.

Continue Reading

Company Posts

The Make Up of Makeup: How One Entrepreneur is Changing the Cosmetics Industry

Energetic, enthusiastic and fun are three words to describe Alina Lucía Imbeth Luna. But her favorite words are organic, vegan and cruelty free. They’re the backbone of her Medellin, Colombia-based cosmetics company, Pure Chemistry. Learn how this chemist and engineer is revolutionizing the cosmetics industry and read about her advice for future entrepreneurs.

FedEx

Published

on

By

This article originally appeared on FedEx Blog.

What is Pure Chemistry?

Pure Chemistry is a company that invents, manufactures and sells beauty products directly to the consumer. What makes us stand out is that we are certified organic, vegan, and cruelty-free.

Many companies say they do no testing on animals, but we go one step further. None of our processes or ingredients has any animal components. Ingredients from animals are common in the cosmetic industry but for us it is not an option.

If it’s common, how do you avoid using them?

For virtually any synthetic or animal ingredient, there is an organic, plant-based alternative.

Collagen, for example, is an animal protein that we don’t use because there are vegetable alternatives that give us better results.

As for honey, we don’t take honey away from bees, we use cane honey.

So for whatever reason people have, be it religion, ethics or they just decide not to use a product that has ingredients that come from or are tested on animals, they can come to Pure Chemistry.

Related: Going The Extra Mile With Neil Robinson Of Relate Bracelets

Many companies use the word “organic,” but you are “certified organic.” How is that different?

We are proud to have the Ecocert certification. Ecocert is an international entity that has a standard for the definition of what’s considered organic cosmetics.

To get certified, ingredients need to come from renewable resources, manufacturing must be environmentally friendly, packaging must be biodegradable or recyclable so it’s not just about the product, it’s also the packaging and the production of all our ingredients.

Certification, for us, is very important. I could tell you right now that I am Hillary Clinton, but if I don’t show you an I.D., you won’t believe me, right?

That’s why it’s important to be certified.

How are your products tested?

Our products are tested on people because they are made for people.

We have a testing club at Pure Chemistry. Many are from our University and are chemists and physicists as well friends and customers who volunteer to test our products.

People call all the time about being in our new product test group and we pay no one for testing.  This is very important to us so people are honest about the product and their results.

What is your team like?

We are a company of women and everyone has their own expertise.We all have some authority roles over our own specialties but there are no hierarchies here. The business model is a circle. We all support each other.

We have no set schedule. Our team comes to work when they need to – at the time that they need to work. You don’t have to be sitting here doing nothing if, at that time, there is nothing to do. It works very well for us.

Our customers are also an important part of the Pure Chemistry team. Since 2015, many new product ideas have come from clients’ requests. They write to us, send us messages, and we keep a list.

People started requesting, “Please, we need a toothpaste,” and we said, “Let’s work on a toothpaste.”

Others wrote, “Please, we need a product in a size that can go in a carry on bag at the airport,” so we did.

We mean it when we tell our clients, “Your comment, message, suggestion won’t be in vain.”

How hard is it to develop your products?

As a child, you don’t think about having to make money to do this and that.

For me, product development is like that little girl inside me that wants to experiment.

It’s fun, but not easy. It took us almost six years to develop a shampoo to make sure it did not have sodium lauryl sulfate or sodium laureth sulfate, the quickest, fastest, and cheapest way to make shampoo. It took us that long to get a product that would comply with the organic certification and one that you could use on both babies and adults.

We also have to think ahead. When we started developing nail polish, we also needed an organic nail polish remover, one that was also not flammable so it can easily be shipped internationally. Now we have a patent pending water based nail polish remover.

We are always amazed and encouraged when something that we came up with is working for someone. They write things like “I love this product. I love this company. I love you guys.” It’s very heartwarming.

This is what makes me get up in the morning.

It’s creativity with a purpose.

What advice do you have for other women entrepreneurs?

 Don’t just make a business plan and wait. Entrepreneurship shouldn’t stay on paper.

There should be no excuses. Go for it. Be willing to make mistakes. As long as you are clear about where you want to go, there are many ways to get there.  You can make a mistake, you can fall, a million things can happen.

 Examine and redefine your goals as you learn from your mistakes.

Related: Funding And Financial Assistance For SA Women Entrepreneurs

What advice do you have for little girls?

I would tell any little girl or boy, “Start by writing it.” Write about what you want to do, what you dream about.

As years go by, look to see if that was just a kid thing, a whim, or if it was really a dream. As you grow up you forget that as a child you wanted many things, but if you write them down, it will give you something to look back on.

For me, I can say, “Look, I wanted to be a scientist, and I did it!”

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending

FREE E-BOOK: How to Build an Entrepreneurial Mindset

Sign up now for Entrepreneur's Daily Newsletters to Download​​