Financial Mail - Investors Monthly
Top PRIVATE BANKS & WEALTH MANAGERS
All the winners inside
As the wealthy become increasingly concerned about the creeping erosion of the value of their assets in SA’s distressed economy, the people who manage their wealth are reassuring them, expressing confidence in the country’s future. They are also managing expectations after a prolonged period of low investment returns.
Their message to clients is that, while there are real problems, there is also much to be positive about in SA, and their assets are in good hands.
Aside from addressing the direct needs and concerns of clients, wealth managers are also preoccupied by an uncertain regulatory environment with pending retirement reforms, a regulatory review of the way retail financial services are sold that is still not finalised, as well as the launch of the Financial Sector Conduct Authority to replace the Financial Services Board.
Technological changes also dominate their time.
It is in just such difficult times that excellence shines through. The Top Private Banks & Wealth Managers survey puts industry participants through a rigorous assessment process accompanied by a comprehensive interrogation of many of their clients in the People’s Choice survey.
On both fronts, SA’s wealth managers and private banks come out shining.
Winners
The 2018 Wealth Manager of the Year is Gradidge-Mahura Investments.
The boutique firm, which celebrates its 10th birthday this year, impressed us in its debut entry in our survey in 2016, improved dramatically last year and then muscled out the larger players to win this year’s overall award.
Gradidge-Mahura dominates this year’s survey. It is also ranked the People’s Choice of Top Wealth Manager, as well as the top wealth manager in two client archetypes: the young professional and the lump-sum investor.
The latter two market segments make up the majority of the firm’s client base, and the awards show that the firm excels in its core market.
Gradidge-Mahura Investments is privately owned by individuals and is 95% black owned and 100% black managed. It offers no discretionary products and operates independently, but has contracts with all the large product providers to ensure it can meet the full range of client requirements.
Its initial approach was to focus on the black middle- to high-income market, but it has since positioned itself to target all South Africans.
Standard Private Bank is this year’s Top Banking Services Firm, based on client feedback. Its Wealth & Investment business takes second place in the overall award, which it won last year. It also wins the archetype award as best wealth manager for wealthy executives. Standard is a consistently strong performer in this survey, displaying excellence across all market segments. Despite its size, its attention to detail is impressive, as is its extensive expertise in tax and other laws in both local and global markets.
Investec Private Bank is the People’s Choice as Top Private Bank, receiving very strong feedback from clients, with Standard Private Bank second and FNB Private Wealth third.
NFB Private Wealth Management, which changed its name in January from NFB Financial Services, is the 2018 Top Wealth Management
The markets have given up gains from last year that were quite meaningful and investors are experiencing single-digit returns over three and five years