08
April 2024
The Wealth Perspective - First Quarter 2024
Etienne de Waal, Chief Executive Officer
PSG Wealth
In this edition of The Wealth Perspective, Chief Investment Officer Adriaan Pask shares his insights on the use of cash in portfolio and wealth management while Head of Sales Nirdev Desai explains how investors can mitigate the risks associated with investing too much of their savings in cash. Head of Securities Wendy Myers explains how cash can be an effective tool when investing in equities, and Head of PSG Life and PSG Invest Haydn Johns shares insights on how this is supported by our fund investment platform. Legal Advice Specialist Mariska Redelinghuys looks at the important aspects investors should consider when constructing a holistic estate plan, before Advice and Product Specialist Robyn Laubscher rounds off this quarter’s edition by unpacking why an emergency fund is a critical part of holistic financial planning.
“ ...financial access is vital for South Africa’s socio-economic development, and the interconnectedness of the underlying issues requires a collaborative effort...to foster an environment with access to financial services for all. ”
Welcome to the latest edition of The Wealth Perspective
A report by the World Bank found that increased financial access is directly linked to a reduction in poverty. In South Africa, where a substantial portion of the population has historically been marginalised, providing access to financial services can be a powerful tool in breaking this cycle.
At PSG Wealth, we believe that financial inclusion helps individuals to save, invest, and accumulate assets more effectively, thereby improving their economic well-being and, ultimately, that of our country.
In this quarter’s edition, we focus on a key component of an effective financial plan, namely medium-term investment vehicles designed to carry investors through lower interest rate environments or unexpected emergencies.
The importance of financial access
Research conducted by the International Monetary Fund (IMF) highlights the positive correlation between financial inclusion and economic growth. In South Africa, an inclusive financial system that enables small and medium-sized enterprises (SMEs) to access credit and financial services can facilitate entrepreneurship and job creation and foster a more dynamic and resilient economic environment.
Financial access goes hand in hand with financial literacy
According to a study by the South African Reserve Bank (SARB), a lack of financial literacy is a barrier to financial inclusion. Providing education about basic financial concepts, banking services and responsible financial behaviour is therefore important in improving access to financial services – empowering individuals to make informed decisions about their finances and contributing to the overall well-being of future generations.
In an era of rapid digital transformation, the role of technology in financial inclusion cannot be overstated. The World Bank notes that digital financial services have the potential to reach underserved populations in remote areas, and widespread mobile phone usage in South Africa means that this technology can be leveraged to provide affordable and accessible financial services to a larger portion of our population and promote financial inclusion on a broader scale.
Government initiatives naturally play a crucial role in this process, and the South African government has recognised the importance of financial inclusion and implemented various policies and programmes to address this issue – for example, the National Development Plan.
Conclusion
In summary, financial access is vital for South Africa’s socio-economic development, and the interconnectedness of the underlying issues requires a collaborative effort from policymakers, financial institutions and other stakeholders to foster an environment with access to financial services for all.
In terms of our own business, we recently launched the PSG Wealth Cash Account product and, in 2023, our family pricing offering which, together with our ongoing commitment to enhancing digital functionality, are designed to provide improved financial access to a wider audience.
As Queen Máxima of the Netherlands, who serves as the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), once said: “Financial inclusion is a key enabler to reducing poverty and boosting prosperity.” Speak to one of our qualified financial advisers, who can guide you in constructing an appropriate plan for your family’s needs.
- A Word from our CIO - Adriaan Pask, Chief Investment Officer, PSG Wealth - The role of cash in an investment portfolio
- Industry Views - Nirdev Desai, Head of Sales, PSG Wealth - Much ado about cash
- Investing and Trading - Wendy Myers, Head of Securities, PSG Wealth - How a low-risk product can help you take advantage of equity opportunities
- Estate Matters - Mariska Redelinghuys, Legal Specialist, PSG Wealth - Your estate plan: A matter of life and death
- Quarterly Insight - Haydn Johns, Head of PSG Life and PSG Invest, PSG Wealth - How an investment platform enhances financial access
- Financial Planning - Robyn Laubscher, Advice and Product Specialist, PSG Wealth - Why an emergency fund is a critical part of holistic financial planning
Click here to download the full edition of The Wealth Perspective
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