Insights
By: Reyneke Van Wyk
Two minutes with Reyneke van Wyk
Catching up with the head of our investment division in South Africa
The ‘new’ economy will not completely take over. The new world economy is driven by technology businesses. They will continue to dominate, but we shouldn’t write-off more traditional businesses. Many will fold, that’s inevitable, but others will innovate and remain relevant. Some of these companies –auto-related and car hire companies for example – are cheap compared to fundamentals. Certain stocks in these sectors offer good value to investors and will continue to do well.
South Africa represents less than 1% of the global economy. Diversification of capital is important wherever you live in the world but in a more volatile, emerging environment like South Africa, with only a finite number of investment opportunities, the requirement is more marked. A global mind-set is essential. Many clients understand that and want the majority of their surplus assets offshore. That amount will vary according to each family’s long-term strategy, but for most, the target allocation tends to be between 50 and 80%.
Families will continue to become more international. This isn’t just about communications and mobility, but the fact that people tend to reside across several countries these days - a trend expected to continue. We are nimble and well positioned to support clients as their needs change. With strong teams both in South Africa and around the world, we understand their concerns. Over the years, we have worked with families in similar circumstances and are in a position to give advice during difficult and improving times.
We are leaders in our field and act with conviction. Many of our clients are incredibly successful business people. They are experienced, switched on, and determined. On occasion, we have to be respectfully firm where we believe their instruction to us is not in their best interests. We rely on the strength of our relationships with clients, built on harnessing the power of listening and asking the right questions.
Personal relationships will remain crucial as technology evolves. We see opportunities to improve efficiencies and commoditise or digitise parts of our service offering. However, the complex nature of our clients’ affairs means that a personalised, face-to-face relationship will always be critical. I don’t see that changing.
Reyneke has been with the Group for over 17 years. He spent the first nine on the asset management side, looking after distribution in South Africa. He was instrumental in setting up the investment business in Johannesburg in 2011.
Find out more about Stonehage Fleming's Investment Management offering