Encouraging saving and ensuring it is invested wisely
Naleni Govender is the head of institutional business at M&G Investments
How did you end up in your current role?
After completing a degree in economics and finance at the University of Natal (now KwaZulu-Natal) in Pietermaritzburg, I moved to Johannesburg to chase my goals and ambitions. Coming from a working-class family, financial independence was top of mind for my parents, and they were strong advocates for education, the most powerful tool to help you achieve financial security. Their empowering attitude and push for financial freedom is what led me to the asset management industry.
Why did you pursue a career in finance?
Watching the financial markets on CNN during my high school years fuelled my interest in wanting to understand the flow of cash between stocks, bonds and other assets, the impact of interest rates and inflation on the purchasing power of the rand and other currencies, and how I could leverage all these aspects to grow my own wealth as well as that of my parents when they retired.
What do you consider to be the biggest challenges in your industry?
South Africa has a low savings rate. To improve this, those of us working in financial services must ensure that the existing savings pot is invested appropriately to ensure the best risk-return outcome for investors while playing an active role in encouraging South Africans to save more despite difficult circumstances.
The two-pot retirement system serves to provide limited access to retirement savings to provide some relief to South Africans for their short-term financial needs. This is a solution that we hope will ensure better retirement outcomes for members over the longer term as we look to mitigate against the current trend of members cashing out their retirement savings when they change employers or are retrenched.
As an industry, it is important we stay true to our long-term goals of encouraging savings rather than spending and ensuring that we maximise outcomes for clients within reasonable risk/return objectives.
Transformation within the asset management industry has progressed but there is more we can do to promote diversity and the inclusion of women and previously disadvantaged individuals in the industry.
What are some of the biggest lessons you have learnt at work?
The industry is highly competitive and you will not succeed without perseverance, grit and hard work. I have learnt to take on the challenges in the work environment with integrity. As a woman in a leadership position, my mission is to take others with me as I continue to grow in this industry.
What was your first investment and do you still have it?
My first investment was at 23 when I started my first job. It was a unit trust investment of R500 a month in an equity fund. I still have the investment, though I have used some of the cash to fund a holiday to Bali.
What is your go-to career advice for young people at the start of their careers in financial services?
I started my career as an analyst running surveys with data-intensive work run off spreadsheets.
It is critical that you put in the time and effort to learn and grow within the industry regardless of your role.
This will provide you with a strong foundation and will set you up within an industry that is innovative and affords you global exposure.
It is not about where you start the race but the journey to success that provides fulfilment in your career.