Corporate report

offshore investment will become a necessity if SA investors wish to preserve their wealth.

This is something that Brenthurst clients will be more than happy to say they managed to do in the first half of 2020, despite the Covid-19 pandemic laying waste to markets in March.

Brenthurst Wealth MD Brian Butchart says clients were able to weather the storm because of the strong offshore bias of their portfolios. Not only did global markets recover quickly, but the sharp weakening of the rand buffered them against losses.

“In our asset allocation, we have about 5% of our total assets under management in local equities, with about 55% offshore and the balance in income funds. That has protected and preserved capital over the past few years when the local markets were just not performing.

“Clients were naturally anxious about the huge volatility in March, and it’s our job to assure them to stay calm because we were satisfied with our investment strategy. And I’m glad to report that most of our clients heeded our advice.”

This degree of discipline by clients is testament to the high level of trust they place in Brenthurst and its advisers.

Butchart says that managing clients’ wealth is more than just a transaction. “We want them to feel that we’re taking an interest in their lives and delivering a positive outcome in their financial decisions.

“Clients want to feel they can trust you, that you know what you’re doing, and most importantly that you care.”

For Brenthurst, this duty of care means considering the interests of all family members. Advisers are increasingly managing investments across generations in the same family.

“We’ve been driving this for quite a long time, encouraging clients’ to include their children in

What it means: In an uncertain economic environment, clients know their wealth is being safely managed

seminars and communications around events like Youth Day. We want clients to bring their children to our seminars so that they can become financially literate.

“I think that transferability of knowledge and power from a financial planning perspective solidifies our relationship from generation to generation.

“And, historically, spouses did not always actively participate in financial decision-making, but it’s definitely happening now. They want to get more involved in financial planning.”

This approach is central to the Brenthurst philosophy of building sincere relationships with clients around trust and transparency.

The firm’s strong brand awareness that it has steadily built up around Magnus Heystek’s media profile, and the published insights of the entire financial planning team, has also stood it in good stead.

This is crucial to growth at a time that the wealth management industry is under pressure and as smaller players flounder.

“We have been seeing some consolidation for a while and I think that will continue,” Butchart says, “more so in an environment where there is a lot of uncertainty. Clients prefer an established brand because they feel assured and trust it. Also, smaller advisers have been struggling with the regulatory costs and responsibilities.”

For Brenthurst, the shoe is on the other foot, with the company registering record growth in new clients and assets under management as it expanded its footprint around the country.

Strategically located offices have opened recently in Mauritius, Sandton and in the Val de Vie

Estate in Paarl, increasing the number of offices to eight.

Clients want to feel they can trust you, that you know what you’re doing, and that you care