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OVERVIEW

Delivering strong, consistent

growth amid global volatility

Co-founder Magnus Heystek brushes off criticism against

offshore bias and lets the figures speak for themselves

ý To d ay ’s truth and factsare often little more than fodderfor distortion by the fake newsbrigade, but for one man only thefacts matter. Meet BrenthurstWealth co-founder and investmentstrategist Magnus Heystek, whohas become synonymous withthe call for SA investors to looko f f s ho r e .

“We ’ve had one of our bestyears ever in terms of returns,” hesays, five months after worldstock markets tanked due toCovid-19 panic-selling.

In the year to August,Br e nt hu r s t ’s top 10 funds havedelivered average growth ofbetween 18% and 20%.

“We ’ve been overweightglobal equities, underweight localequities and have had no propertyin our portfolios. And this year ouroffshore component kicked inaggressively, with some f u nd sdelivering between 35% and 40%.”

The charge was led by regulartop performer in Brenthurst’sselection of funds, the Mi-PlanGlobal IP Opportunity Fund,which accounts for 15% of allmoney invested on behalf of itsc l ie nt s .

This fund, managed byRaging Bull Award winner TonyBell, has returned 32% this yearcompared with an average 15% ayear for the past few years. TheBrenthurst BCI Worldwide FlexibleFund has also delivered strongreturns, growing 14% this year.

These figures make it difficultfor Heystek’s many detractors toargue against the soundness ofhaving a strong offshore bias. Incontrast to his funds’ returns, theJSE all share index has shrunk1.11% in the year to mid-August.

“I have personally received alot of criticism, with people sayingI’m disloyal and unpatriotic. Butmy job is to make money for myclients and protect their wealth. Ifit happens that SA assets do notappeal to us, then it is my duty tocall this out and give my reasons.

“Our investment strategies arebased on a tremendous amountof research, and as time haspassed the macroeconomic pic-ture has worsened. So far we’vebeen shown to be correctbecause it’s based on facts andwhat is best for our clients.”

This single-minded focus onbuilding portfolios to match itsc l ie nt s ’ needs is one of the majoradvantages Brenthurst holds overlarger, institutional investmentho u s e s .

Heystek says that thisindependence allows his team theflexibility to choose from between60 and 85 global funds and up to50 domestic funds. “We have thefreedom to select and mix andm at c h ,” he says.

Rather than fostering ascatter-gun approach because ofthis wide choice, Brenthurst’srigorous research process helpsidentify themes and funds that

reflect major trends.“We ’ve been basing our

portfolios on global megatrendssuch as health care, technology,biotechnology, demographics and

Magnus Heystek: High

offshore exposure has

protected local clients

more recently connectivity,artificial intelligence and cloudcomputing. None of this isproduced in SA and is onlyavailable elsewhere in the world.”

Financial Mail Page 4-5 -09/09/20 02:26:56 PM

Thursday September 17, 20204 Thursday September 17, 2020 5

corporate report brenthurst wealthcorporate report brenthurst wealth

What it means:

Well-researched investment

strategies have helped clients

weather the Covid storm

Once satisfied that the researchpoints to long-term growthopportunities, Brenthurst then addsinstruments to their portfolios thatoffer the right type of exposure.

This approach has served thefirm and its clients well since itwas established 16 years ago.And clients are clearly satisfiedwith how their money is beingmanaged and the level ofpersonalised service they receive.

This is reflected in Brenthurstagain being named BoutiqueWealth Manager of the year in theIntellidex Top Wealth Manageraward, which is based in part onclient feedback and ratings.

The firm has a proud historyof being ranked in the top fourboutique managers for the pastfour years, including number onespot in 2017.

Br e nt hu r s t ’s advisers were alsorecognised again this year, withfinancial planners André Bassonand Brian Butchart ranked as thesecond- and third-best relationshipmanagers in SA, respectively. Headof Brenthurst Stellenbosch, Soniadu Plessis, received the inauguraltop relationship manager accoladein 2019.

Heystek is justifiably proud ofthe consistency this performancereflects. “Internally, it shows we’redoing the right thing. And itshows our clients a record ofp e r fo r m a nce ,” he says.

Another measure of the trustthat clients place in the Brenthurstteam is the discipline they showedby not panicking during March’ssell-off. Heystek says one of thefirst investment lessons he shareswith new clients is that theyshould expect some market crisisin their lifetime.

“The response from clientswas remarkably benign. Becausewe have a very high offshoreexposure it protected our localclients. As the markets fell, so didthe rand. So, their rand returnswere not that badly affected,”Heystek says. x

GROWING FOOTPRINT

Constantly striving to

evolve, expand and excel

Staying well informed and fiercely independent keeps the firm at the top of its game

ý Brenthurst Wealth MD BrianButchart is understandably proudthat the company has again beennamed SA’s Top Boutique WealthManager. For the second time inJuly this year, the firm receivedthis accolade at the IntellidexPrivate Bank and Wealth Managerawards, after winning in 2017 forthe first t i me .

“The wealth managementindustry is fiercely competitivewith exceptionally high standards.To remain relevant and providecutting-edge solutions you have tostay informed about changingtrends and financial planningsolutions. So it’s an honour to benamed Top Boutique WealthManager, considering the calibre ofthe industry,” says Butchart.

“You have to be able todifferentiate yourself in the aw a r d sbecause a large proportion of theresults are based on opinions andratings of existing clients.”

Results from the survey showedthat more than 90% of clients ratethe overall service very good orexcellent, and 97% say they are

Brian Butchart: To remain relevant you have

to stay informed about changing trends

Ruvan Boshoff


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likely to refer Brenthurst toa cq u a i nt a nce s .

This positive perception has notcome about by accident. Sincewinning the Top Boutique WealthManager title in 2017, Brenthursthas expanded its national footprintinto strategic areas and establishedan offshore office.

Today, the 47 staff are locatedat eight local offices including twoin Joburg, one in Pretoria and twoin Cape Town, with satellite officesin Tyger Valley, Claremont andVal de Vie Estate in Paarl. TheMauritius office, added in 2018,is Brenthurst’s first internationalex p a n s io n .

Butchart says growing thefootprint has also led to growth instaff numbers. Brenthurst has 16financial advisers, 12 of whom arecertified financial planners, withseven paraplanners supportingthem. The firm has also addedtwo qualified legal advisers inJoburg and Cape Town as itexpands its fiduciary capabilities.

Thanks to this expansion ofoffices and services, its clientsnow have access to a broad rangeof investment services underone roof.

Butchart says this includesretirement planning, tax and estateplanning, risk and forex solutions,drafting of wills and winding up ofc l ie nt s ’ e s t at e s .

Br e nt hu r s t ’s independence isone of its key differentiators, a nd

ý Mauritius has capitalised on itsstatus as a business-friendly,politically stable economy righton the continent’s doorstep toattract significant investment.Brenthurst Wealth recognisedthis early on and has used this toits advantage.

Gavin Butchart, the head ofBr e nt hu r s t ’s first offshore office,says the island offers a newfrontier that many South Africansare exploring as both a businessand expat destination.

“Initially we acquired an assetmanagement licence, with mostof the interest in the investmentproperty opportunity,” he says.“This is becoming moreappealing as the Mauritiangovernment has quite recentlyreduced residency and businessinvestment requirements.”

For this reason, Brenthurst’soffshore office is facilitatingmostly property investments,including the financial structuringand permits needed by foreigninvestors. Such is the demandthat Brenthurst plans to add aMauritius property centre to its

Mauritius: grabbing

i nve s to rs’ a t te n t i o n

Sandton office later this year.“We ’re seeing a lot of

enquiries from people 50 andolder who are looking to retireand settle in Mauritius,” s ay sButchart. “The government hasbeen promoting retirement visasbecause these people will beretired and not taking workaway from Mauritians; they’rebringing in foreign investmentand will be spending money inthe local economy.”

Butchart expects to seecontinued interest from SouthAfricans weighing up theiro p t io n s .

Though Mauritius is q u it esmall, the government hascommitted to accepting moreimmigrant families. There is astrong demand for opportunitiesfrom SA, as well as from otherco u nt r ie s .

“It also encourages exportingfrom Mauritius and offerspreferential tax rates forexporters of certain goods.They ’re doing all they can to beattractive to foreign investors,”says Butchart. x

B re n t h u rs t ’s first offshore office is capitalising on the

island’s reputation as an attractive business destination

What it means:

Multiple awards are testament

to firm’s continued investment

in research and services

allows it to select the mostappropriate funds that can deliveron clients’ investment goals.

Butchart says he and his teamspend a considerable amount oftime doing research on marketsto understand which investmentscan deliver results. Apart fromin-house research, Brenthurstdraws on the capabilities andinsights of asset managers it haspartnered with, as well as expertsacross a mix of d i s c ip l i ne s .

Most importantly, the firm’sindependent status allows it toinvest or divest funds to the benefitof client portfolios.

“We have access to a wideopportunity set in which we investclients assets, both locally anda br o a d . That adds a lot of benefit tothe potential outcomes from aperformance point of view, and ifsomething is not performing wecan remove it,” says Butchart.

Judging by Brenthurst’sbreak-neck expansion over thepast four years, it would be foolishto believe the firm will be restingon its 2020 laurels.

Clients, Butchart says, canexpect continued investment in theimprovement of its services andtechnology that enable it to raisethe customer satisfaction bar. x

RELATIONSHIPS

For Brenthurst,

it’s personal

ý The essence of a boutiqueexperience, especially when itinvolves money matters, is aboutfar more than the financial results.Above-average returns, after all,are expected when the level ofexpertise and attention to detail areabove what an average investorgets from a large money manager.

Brenthurst Wealth co-founderMagnus Heystek explains thef i r m’s approach in his typicallyblunt fashion: “We built thisbusiness knowing that we mightnot be the smartest and prettiest,but we’re going to be the bestcommunicators in the i ndep e nde ntfinancial adviser space.”

And results prove that the firmhas stayed true to this maxim.

Br e nt hu r s t ’s top executivespride themselves on a clientretention rate above 95% since thebusiness was established.

“We ’ve lost very few clientsover the years,” says company MDand co-founder Brian Butchart. “Ithink that boils down to the

personal relationships advisersestablish with clients, which arebased on regular appointmentsand constant communication. And,of course, the individual relation-ships the advisers establish withtheir clients to help tailor theirfinancial and investment planning.”

The wisdom of prioritisingclient relationships is evident inBr e nt hu r s t ’s performance at thisyear’s Intellidex Top WealthManager Awards. In addition tobeing named Top Boutique WealthManager, André Basson andBu t c h a r t were placed second andthird in the Top RelationshipManager Award.

This follows Sonia du Plessiswinning the inaugural TopFinancial Adviser title at the 2019Intellidex awards.

These accolades are significantgiven the sheer number offinancial advisers in the country,and Brenthurst’s relative sizecompared with larger, more estab-lished outfits. The greatest value,

Zodwa Ngwenya, admin support, and Leslie Greyling, risk expert, at the Brenthurst Fourways

office, one of the firm’s eight local offices

Port Louis, the capital of business-friendly Mauritius.

Team Brenthurst celebrate the company’s 15th anniversary in 2019

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r fNinety One congratulates Brenthurst Wealth on your

outstanding performance in the 2020 Intellidex Wealth

Manager and Private Bank Survey – your second win in

four years. We salute your commitment to independent

advice and look forward to continuing our valued

long-term partnership.

Powered by independence

Ninety One SA (Pty) Ltd is an authorised financial services provider.

Investing for a

world of change

Previously Investec

Asset Management




however, lies in the results beingbased on client feedback to thes u r v ey .

“We ’re still a relatively smallcompany, so we’re able topersonalise the service that weoffer and respond to clients in atimely manner,” Du Plessis says.“Building a relationship takes time,and success relies on staying intouch with them through ournewsletters, or phoning them ontheir birthday.

“And we’re very fortunate thatwe have brilliant backup from ouradmin and support teams, whooften deal with clients when we’renot available.”

André Basson, relativenewcomer to the BrenthurstWealth team, is in charge of thenew office in the Val de Vie Estatein Paarl. A key to building trustingrelationships, he says, is mutualrespect between adviser and client.

“If someone has worked for 30years to build up their wealth, youhave to respect that. By the sametoken, we are high-quality advisersdelivering high-quality investmentadvice. So it’s a two-way street andcommunicating this upfront helps alo t ,” he says.

“This is important because Iwant to give clients the highest-quality service and want to fullyunderstand their personalcircumstances and goals.”

Key to this is taking in theentire picture, which means alsounderstanding the roles anddreams of spouses and children.

This is an aspect of clientrelationship management thatBr e nt hu r s t ’s advisers areincreasingly attuned to. Bassonsays, for instance, that he oftenencourages clients to involve theirspouse in the decision-making.

Du Plessis says there hasdefinitely been a shift to includingeveryone in the conversation.

“Traditionally, women weren’toften very involved in the familyfinances, but as things haveevolved more and more womenare not only more involved in jointdecisions, but set up their ownp o r t fo l io s ,” says Du Plessis. x

FUND STRATEGY

A carefully selected

universe of investment

opportunities on offerA rigorous and exhaustive research process allows the investment

committee to find the right funds that best meet clients’ needs

ý Brenthurst Wealth’s house viewfor the past decade has been thataggressive offshore diversificationis the best way to preserve andgrow clients’ wealth. While thisposition has remained steadfast,it has never been about gainingoffshore exposure at all costs.

The choice of industry, assetclasses and instruments is arigorous process that aims toeliminate bad decisions andmaximise long-term returns.

Led by investment strategistMagnus Heystek, Brenthurst’sresearch process is built aroundthorough due diligence. Apartfrom tapping industry news andknowledge, the firm seeks outexpert views of political andeconomic analysts, and local andglobal asset managers, to draw themost accurate conclusions.

MD Brian Butchart, directorJohan Burger and adviser GustavRe i n a c h also serve on theinvestment committee.

“We follow global megatrendswhen it comes to asset allocation,”Heystek says. “Based on our globalmacro analysis we’ve identifiedtechnology, biotechnology, healthcare and demographic themes thatwe believe are growth sectors.

“Once we’ve identified themegatrends, we will investigatewhich funds, assets classes orinstruments will give us exposureto a trend. This is then distilledand analysed by the investmentcommittee to produce a list of 50or 60 funds that give us exposureto those trends.”

Heystek says this search for theright funds is an exhaustive one,and Brenthurst has been known tointroduce offshore funds whenlocal equivalents are not available.He uses the example of the FidelityHealth Care Fund and FranklinBiotechnology Discovery Fund thatwas made available to his clients.

Once confident that the fundsoffer clients a range of options thatmeet their risk appetite andinvestment objectives, these areadded to the Brenthurst Wealth“me nu ” of funds.

Armed with this fund menu,Brenthurst advisers are then ableto select the funds that best meet aparticular clients’ ne e d s .

This flexibility is one of themajor advantages that the firm’sindependence gives it overinstitutional investment managersthat are often restricted to sellinghouse funds. Best of all, theinstitutional funds that do offer

growth potential are still availablefor Brenthurst to tap into.

This has been done to greateffect with Ninety One (formerlyInvestec Asset Management), withwhich Heystek has had a closerelationship going back more than25 years. Today, Ninety One is oneof SA’s largest asset managers,and Brenthurst is one of its biggestindependent financial adviseri nv e s t o r s .

Heystek says the Ninety OneGlobal Franchise Feeder Fund isan example of a fund that has notonly proven popular with clients,but also delivered exceptionalr et u r n s .

He has equally high praise forSygnia Asset Management after asuccessful partnership over thepast few years. He credits them forintroducing innovative productslike its 4th Industrial RevolutionFund, FAANG Plus Equity Fundand Sygnia S&P 500 Fund that

offer exposure to Brenthurst’sinvestment megatrends.

This rapidly strengtheningrelationship has also openedopportunities in the unlisted space.This has come about through theSygnia Oxford Sciences InnovationFund, to which Brenthurst Wealthreceived and filled a R100mallocation on behalf of its clients.

This investment, which hasplans to list within the next fiveto 10 years, has taken on evengreater significance as it is one ofthe frontrunners in the race todevelop a Covid-19 vaccine.

“We ’re looking to do more ofthose types of deals,” s ay sHeystek. “It ’s clear that our clientslike that we’re able to offerthem something different,and I think that’s what highnet-worth clients want.”

Br e nt hu r s t ’s ability tooffer tailored solutions toclients has now also beenbolstered with an exclusivepartnership with online

trading and investment researchprovider Sharenet Investments.

“We can now offer a globalshare portfolio to our clients,which is something we’ve not haduntil now,” Heystek says. “So, if aclient wants to invest directly inshares, we will help them identifythem and place them in a shareportfolio, but the clients will do theactual buying and selling, whichalso reduces costs.”

This development followsdemand from clients to i nv e s t

directly in local and globalmarkets. Heystek is quickto point out that the serviceisn’t meant to facilitate daytrading, but rather allowclients to build a bespokeportfolio that supplementstheir investment in otherasset classes. x

ý An important part of BrenthurstWe a lt h’s evolution over thepast few years has been theintroduction of a range of ex t r aservices, including fiduciary andestate planning, to round out itsinvestment planning offering.

“From a financial planningpoint of view, we cover all aspectsnow, whether that’s tax or estateplanning, forex and risk services,or retirement and investmentplanning, domestically ando f f s ho r e ,” says director of thePretoria office Johan Burger.

Key among these services

when it comes to preserving gen-erational wealth is Brenthurst’sestate planning and fiduciary ser-v ice s .

Rozanne Heystek-Potgieter,who leads the firm’s fiduciaryservices department for Gauteng,says financial advice cannot begiven in isolation and has to take inthe bigger picture.

“There is an overlap in certainspheres of a client’s circumstancesregarding estate planning, risk andtax. With offshore investing beingour main focus on the investmentside, we recognised the need to

What it means:

"Menu" of funds offers a

broad range of options to

meet any risk appetite

SERVICES

Expanded scope of

offerings gives clients

comprehensive choice

We followglobalmegatrendswith ourassetallocation

The performance of the JSE all share index vs world markets.




have in-house legal professionalsto not only draft the will, but alsoidentify concerns across multiplej u r i s d ic t io n s .

“It ’s not just a side part of whatwe offer clients. We look at thewhole picture and work withadvisers and risk specialists togive clients proper outcomes thatpreserve their legacy.”

The significance of theseservices has been heightened in2020 with the Covid-19 pandemicsweeping across the globe.

Malissa Anthony, head ofBr e nt hu r s t ’s fiduciary servicesdepartment in the Western Cape,says this event has he ig ht e ne destate planning concerns.

“People are taking their willsmuch more seriously, and w h i lewe have always placed impor-tance on this aspect of estate plan-ning, we have taken this opportu-nity to emphasise its importanceeven more so as a result of every-thing that’s gone on,” Anthony says.

“There has been a phenomenalresponse and greater sense ofurgency from clients to get theirmatters in order.”

Some Brenthurst clients wouldsadly have been grateful for thispersonal attention to detail if lovedones had been victims of thecoronavirus pandemic.

This would have been apainfully frustrating time forfamilies as even the courts wereshut down during the lockdown.This delay in processing estatesand related matters has led toconsiderable backlogs that are

creating additional bottlenecks.Heystek-Potgieter says it is at

times like these that clients benefitfrom the close personal nature ofthese relationships. The Brenthurstteam is on hand not only to guidethem through the process, but toensure they stay informedt h r o u g ho u t .

Allied to estate planning are thevarious forms of risk planning thatBrenthurst has added to its arm-oury.

Leslie Greyling, Brenthurst’srisk expert in Gauteng, says thef i r m’s offering covers both person-al and business risk assurances e r v ice s .

Brenthurst started offering spe-

cialised risk services in 2018 toclose the loop in the financialplanning process.

“For personal clients, we offereverything from life, disability andsevere illness cover to incomeprotection. For individuals, I wouldsay the number one reason for lifecover is to provide families withthe liquidity to cover costs such asestate duty and executor fees,”Greyling says.

“Our business assurance offersnon-short-term cover you wouldexpect to take to protect a busi-

ness against losses. This mightinclude key person cover,partnership assurance and contin-gent liability protection to preventa death or disability threateningthe viability of a business.”

Another value-added serviceoffered countrywide is forexbuying and selling. Managed byCFP professional and 2019winner of the Brenthurst AnnualExcellence Award SuzeanHaumann, this service handlesforex purchases clients use tofund their offshore accounts.

One of the major benefits toclients is that they have a singlepoint of contact when dealingwith what can be complex pro-cesses and applications to transfermoney across borders.

“We can now also open anInvestec Call Money Account onbehalf of clients that they can useas a trading account. Once it isopened, clients can then transfertheir rands to this account to beable to buy and transfer the for-eign currency. If a client needs toapply for tax clearance, we canalso assist with that,” she says.

The expanded scope ofservices available to Brenthurstclients is testament to the firm’scommitment to providing clientswith a personalised, professionalwealth management offering.

The close understanding ofc l ie nt s ’ particular circumstancesallows relationship managers,planners and advisers to offerbespoke solutions that simplifycomplex processes. x

ý “The most important assets inour business are our existingclients, not our new clients,” s ay sBr e nt hu r s t ’s Johan Burger.

For a company that has grownclients and staff by 30% since2017, it’s no small feat to retainthis focus on servicing clients atthe highest level.

But that is precisely whatBrenthurst has done whilegrowing its office network andstaffing its operations with suitablyqualified personnel.

“I think it’s easier to paypersonal attention to all yourclients when you’re a smaller,boutique outfit,” Burger says. “It ’s afine line to manage growth whilemaking sure you’re still takingcare of clients. We spend a lot oftime and resources on appointingthe right people.”

One way that Brenthurst hascountered its comparativelysmaller size is to emphasise skillsand career development for allstaff. Burger says the company

foots the bill for staff pursuing acertified financial planner or otherrelevant qualification.

Looking to the immediatefuture, Burger says existing clientsremain a priority when deliveringexceptional service and outperfor-mance in financial returns.

“Though Brenthurst hasbecome a lot bigger than it was 10years ago, we’re still small enoughwhere anyone can contribute toour operations while we all followthe same methodology,” he says. x

What it means:

Wide range of services shows

level of commitment to clients

G row t h ,

but not

at all

co s t s

MANAGING RISK

Re l a t i o n s h i ps

and returns build

c l i e n t s’ trust

ý If the past 10 years are anythingto go by, the next 10 will severelytest the resolve of SA investors.Should the economic doldrums ofthe past decade continue, and thegovernment fail to implementpromised reforms, then an alreadyprecarious situation could becomedisastrous.

Of course, this need not be thecase, but Brenthurst investmentstrategist Magnus Heystek remainss cep t ic a l .

“Some might say that now is the

time to buy SA stocks. And I thinkit is getting to that point, but weneed a little something from thegovernment to make it attractivefor investors to come back to SA,”says Heystek.

“One of the indicators that Ikeep an eye on is the net foreignpurchases or sales of bonds andequities, and every month it isnegative. So, the foreigners arestill running. So far this year it isR58bn, and over the past six yearsit ’s R500bn.”

Deteriorating conditions on thedomestic front, therefore, shouldspur on the already dramaticincrease in SA investors seekingprotection offshore.

Doing so counters the risk ofa sluggish economy, political

uncertainty and growing threatsto the long-term wellbeing ofSouth Africans’ retirement savings.Recent talk of prescribed assets isnot expected to remain just talkfor too much longer.

Therefore, Heystek believes

Sesetu Majwede, on the administrative team, and Suzean Haumann, 2019 winner of the

Brenthurst Annual Excellence Award

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corporate report brenthurst wealth

offshore investment will become anecessity if SA investors wish topreserve their wealth.

This is something thatBrenthurst clients will be morethan happy to say they managed todo in the first half of 2020, despitethe Covid-19 pandemic layingwaste to markets in March.

Brenthurst Wealth MD BrianButchart says clients were able toweather the storm because of thestrong offshore bias of theirportfolios. Not only did globalmarkets recover quickly, but thesharp weakening of the randbuffered them against losses.

“In our asset allocation, we haveabout 5% of our total assets undermanagement in local equities,with about 55% offshore and thebalance in income funds. That hasprotected and preserved capitalover the past few years whenthe local markets were just notp e r fo r m i ng .

“Clients were naturally anxiousabout the huge volatility in March,and it’s our job to assurethem to stay calm becausewe were satisfied with ourinvestment strategy. AndI’m glad to report thatmost of our clients heededour advice.”

This degree of disci-pline by clients is testa-ment to thehigh level of trust theyplace in Brenthurst and itsa dv i s e r s .

Butchart says that managingc l ie nt s ’ wealth is more than just atransaction. “We want them tofeel that we’re taking an interestin their lives and delivering apositive outcome in their financialde c i s io n s .

“Clients want to feel they cantrust you, that you know whatyou’re doing, and most importantlythat you care.”

For Brenthurst, this duty of caremeans considering the interests ofall family members. Advisers areincreasingly managing investmentsacross generations in the samef a m i ly .

“We ’ve been driving this forquite a long time, encouragingc l ie nt s ’ to include their children in


A strong presence on all platforms is part of winning formula

ý Brenthurst Wealth co-founderand investment strategist MagnusHeystek has never been one to shyaway from expressing his views,so it probably won’t be surprisingto hear that he personally respondsto all new client inquiries.

He also makes no bones aboutclient communication being acentral pillar of the firm’s successsince it was established in 2004.Since then, Brenthurst Wealth hasstayed true to its values, and todayboasts a growing client base. Newclients are attracted not only to thefinancial returns, but also to thestrength of its marketing andcommunications strategy.

Co-founder and marketingdirector Sue Heystek says clientrelationships are the cornerstone ofBr e nt hu r s t ’s success, which isvalidated by its consistently strongperformance in the IntellidexWealth Manager and Private BankAward. The firm was named TopBoutique Wealth Manager in the2020 and 2017 Intellidex Awards,second in 2019 and fourth in 2018.

“We are now busier than ever,”says Sue, while reflecting on howsocial distancing has influencedrelationships. “Co m mu n ic at io nwith clients has always been a keycomponent of the marketing mix,and our continuous presence on

all platforms has definitelystrengthened client relationships.”

A major strength that Brenthursthas leveraged over the years hasbeen its investment seminars. Ithas hosted as many as 16 of thesea year, often in partnership withleading asset managers.

Of course, once the Covid-19pandemic put an end to largegatherings, the marketing teamswitched seamlessly to virtualg at he r i ng s .

“Client meetings are differentnow but logistically easier,” s hesays. “Lockdown has forced clientsto explore alternatives to face-to-face meetings and it’s gone verywell. It has been a p o s it iv etransformation and we’re able toreach clients in remote areas, forwhich they’re really grateful.”

The convenience of hostingvirtual discussions has also openedup new opportunities to reachuntapped audiences. The seminarsaround the country typicallyattracted 500 attendees. A series of

webinars hosted this year attractedclose to 1 ,000 registrants each.

One of these, presented inpartnership with Daily Maverick,attracted nearly 1,800 people.

“We will most de f i n it e lycontinue hosting webinars as thisplatform allows for easy audienceinteraction and engagement onrelevant topics,” she says.

“But we expect to revert back to‘live event’ seminars at venues,albeit less frequently, as we valueour personal relationship withclients and pride ourselves onbuilding long-term relationshipswith our clients and their children.”

A simpler form of communica-tion that supplements personalinteraction is Brenthurst’s e-mailnewsletters. With a database ofabout 11,000 subscribers, which isgrowing by the hundreds everymonth, the marketing team is

seminars and communicationsaround events like Youth Day. Wewant clients to bring their childrento our seminars so that they canbecome financially literate.

“I think that transferability ofknowledge and power from afinancial planning perspectivesolidifies our relationship fromgeneration to generation.

“And, historically, spouses didnot always actively participate infinancial decision-making, but it’sdefinitely happening now. Theywant to get more involved infinancial planning.”

This approach is central to theBrenthurst philosophy of buildingsincere relationships with clientsaround trust and transparency.

The firm’s strong brandawareness that it has steadily builtup around Magnus Heystek’s

media profile, and thepublished insights of theentire financialplanning team, has alsostood it in good stead.

This is crucial togrowth at a time thatthe wealth managementindustry is under pressureand as smaller playersf lo u nde r .

“We have been seeingsome consolidation for a

while and I think that will contin-u e ,” Butchart says, “more so in anenvironment where there is a lotof uncertainty. Clients prefer anestablished brand because theyfeel assured and trust it. Also,smaller advisers have been strug-gling with the regulatorycosts and responsibilities.”

For Brenthurst, the shoe is onthe other foot, with the companyregistering record growth in newclients and assets under manage-ment as it expanded its fo o t p r i ntaround the country.

Strategically located offices haveopened recently in Mauritius,Sandton and in the Val de VieEstate in Paarl, increasing thenumber of offices to eight. x

easily able to reach existing andprospective clients.

Add to this Brenthurst’s expan-sive media reach, and it’s difficultto miss its message. All advisersand the executive team are regularcontributors in the media,

A recent addition to these plat-forms is Twitter, on which Magnushas quickly acquired tens of thou-sands of followers.

“Twitter has been the mostincredible thing,” he says. “I startedtweeting only 18 months ago andit ’s been an eye-opener because ifyou say something that resonateswith an audience it gets spreadvirally so quickly.”

Sue says that one of the majorbenefits is that digital channelsmake it easier for clients to contactBrenthurst. “Our presence onsocial media platforms makes iteasy to engage, connect and com-municate with our clients, and alsoallows them quick access to rel-evant money matters,” she says.

Naturally, a digital presence

appeals to younger investors,which is a growing demographicamong Brenthurst’s clients.

“We create consistent, high-quality content that transcends allages, but also resonates withyounger investors. Children ofclients are part of the investmentstrategy and we have many clientswho have remained with us forseveral generations,” says Sue.

The Covid-19 pandemic alsopresented Brenthurst with theopportunity to lend a hand tocommunities in need. All staff wereasked to nominate projects, NGOsand charitable organisations thefirm could support with donations.

This ad-hoc support is inaddition to the firm’s long-standingsupport of charitable organisations,including setting up the BrenthurstWarrior Kids Foundation to helpchildren with cystic fibrosis.

This ability to see beyond itsown world is an extension of theBrenthurst philosophy of keeping itpersonal. x

Sue Heystek: Client relationships are the cornerstone of Brenthurst’s success

What it means:

In an uncertain economic

environment, clients know their

wealth is being safely managed

What it means:

The strong communication

strategy is a major strength

Clients wantto feel theycan trustyou, that youknow whatyo u ’re doing,and that youcare

COMMUNICATION

Focused, integrated

marketing strategy

a major attraction

Jere

my

Gly

n

OFFSHORE SHARE PORTFOLIOS

OFFSHORE ETF PORTFOLIOS

Do you want to make a savvy offshore investment? Contact us today on [email protected] or visit www.sharenetinvestments.co.za

TRUSTED & PROVEN

Sharenet Investments (Pty) Ltd (Reg #2012/192461/07) is an authorised Financial Services Provider (FSP #46570)




Should you go solo, trust algorithms or get an adviser?

INVESTMENT GUIDE

The pros and cons of

using a wealth manager

ý How serious are you aboutmanaging your finances? If youare reading this, then there’s a fairchance you have more than apassing interest in making sureyou accumulate rather thansquander your wealth.

But there’s a big difference inwanting to do the right thing andknowing how to do the right thing.

To help guide you through thatdecision-making, Brenthurst hascompiled a list of pros and conscomparing going it alone, trustingin algorithms, and speaking to aqualified financial adviser.

DIY investing

This route is advisable only forexperienced, sophisticatedinvestors. And even then, takingfull charge of your investmentplanning is not without sizeablerisk.

Pro s

ý You make your own decisionsbased on your own research;ý You can select companies orindustries you believe offer growtho p p o r t u n it ie s ;ý You are free to choose theinvestments or products you want;ý You potentially benefit fromlower fees;ý You have direct access toinvestment information andco m mu n ic at io n .

Co n s

ý Poor decisions due to a lack ofinsight, especially during times ofmarket volatility;ý Decisions based on emotion,especially fear or greed;ý Low returns compared withfunds managed by a professional;ý Limited product choice due toan overload of information or lack

of understanding;ý Investing or saving in isolation,with no comprehensive plan..

Robo advice

No discussion on investing in the21st century is complete withoutdebating the merits of algorithmsto produce a personalised financialplan. Robo advisers may bepromoted as the future of financialadvice, but still have a long way to

go to live up to that promise.

Pro s

ý Low fees;ý Software that offers a lot ofinformation and options;ý Process establishes your wantsand needs;ý You get to choose w h ic hproducts you want from thesuggested options.

Co n s

ý Despite the promise, robo

advisers don’t offer personalisa-t io ný Platforms claim to have all theanswers;ý No face-to-face meetings;ý Access and services require aninternet connection.

Wealth manager

Partnering with a wealth manageris a sure sign that you are seriousabout managing your financials u cce s s .

As you can see from theinvestor lifecycle graphic, there isno ideal time to start thinkingdifferently about your money: it’s alife-long pursuit and discipline thatpays dividends over the long run.

Brenthurst Wealth’s qualifiedfinancial advisers can help youcraft a financial plan, irrespectiveof where you are along theinvestor lifecycle.

Pro s

ý A comprehensive needsanalysis is conducted to identifyyour needs and goals;ý A personalised financial plan iscreated so you can meet yourneeds and goals;ý Deep insight into markets,economies, investment vehiclesand tax rules;ý Access to tax and estateplanning, risk planning, local andinternational investing;ý Professionally accreditedfinancial and wealth advisers;ý Legal compliance offers peaceof mind;ý Personal interaction andknowledge-sharing throughinvestment seminars;ý Returns that outperformindiscriminate retail funds.

Co n s

ý The administration anddocumentation required for fulllegal compliance;ý Higher (but realistic andrelevant) fees compared with DIYand robo investing. x


Special Report written by:

Johann BarnardAdvertising executive:

Nigel Twidale


Our global footprint delivers

personal investment solutions.

That’s why we’re oceans apart.

Momentum Investments is part of Momentum Metropolitan Life Limited,

an authorised financial services (FSP6406) and registered credit (NCRCP173) provider.

We provide hands-on guidance for your clients’ offshore investments.

We partner with you personally and aim to deliver on your clients’ investment goals.

Speak to your Momentum consultant or visit momentum.co.za


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