Last Updated on 20/03/2025 by Carl-Peter Lehmann
Investment advisory firms play a crucial role in helping individuals, families, and businesses manage their financial assets effectively. These firms offer professional guidance, strategic planning, and tailored advice to ensure that clients can achieve their short-term and long-term investment and financial goals. At Henceforward, we pride ourselves on offering a personalized range of investment advisor services that stand out in the crowded field of investment advice and financial planning.
Why Choose an Independent Investment Advisor?
Choosing an independent investment advisor has significant advantages. Unlike advisors tied to specific financial institutions, independent advisors like Henceforward have the freedom to select from a broad range of investment options. This independence ensures that our advice is always aligned with your best interests, free from the influence of proprietary products.
The Challenge of Poor Performing Investments
Money management is a great gig for those asset managers that get it right. Sadly, there are too few funds in South Africa that are actually delivering investment returns outperforming basic benchmarks, and that warrant your hard-earned capital. According to Morningstar and the different ASISA Unit Trust Fund Categories, many funds have delivered disappointing returns across various categories, if you look at their peer group average returns over the past decade. This underperformance highlights the prevalence of poor-performing funds in the market.
As illustrated in the chart above, the 10-year average returns for different fund categories have been mostly lackluster, with few achieving their stated inflation-beating investment mandates.
- The Income Fund Category, with a typical Inflation Plus 2 mandate, has largely met expectations (peer group return = 7.27%).
- However, the Balanced (6.99%; Inflation Plus 5 mandate) and SA Equity (6.39%; Inflation Plus 7 mandate) fund categories have been particularly disappointing. Consider the fact that balanced funds hold most South African retirement fund capital, this is particularly concerning.
- Even Global Equity funds (11.53%) have room for improvement when considering that the S&P 500 has delivered higher returns in USD terms (12.40%).
Therefore, investors relying on advisors bound to sell specific products might find themselves stuck with these subpar options. This is where the value of independent advice becomes crucial. At Henceforward, we are not obligated to push any particular products, allowing us to focus solely on selecting investments that are truly in your best interest. We aim to find those funds and managers that consistently outperform their peers and benchmarks, which are often amongst the boutique managers and investment houses.
Henceforward's Customised Investment Advice Services and Process
1.Comprehensive Financial Analysis
Our tailored investment advice services and process begins with a thorough analysis of your current financial situation. We take the time to understand your goals, risk tolerance, and financial landscape. This detailed assessment allows us to create a personalized investment strategy that aligns with your objectives.
2.Tailored Investment Strategies
One size does not fit all when it comes to investment. At Henceforward, we believe in crafting bespoke investment plans that cater to your unique needs. Whether you’re looking to grow your wealth, plan for retirement, or manage risk, our strategies are designed to help you achieve your specific goals.
3.Ongoing Portfolio Management
Investment is not a one-time event but a continuous journey. We provide ongoing portfolio management to ensure that your investments remain aligned with your evolving goals and market conditions. Our team regularly reviews and adjusts your portfolio to optimize performance and manage risks effectively.
The Importance of a Trusted Relationship With Your Investment Advisory Firm
As an independent investment advisor, Henceforward operates under a fiduciary standard. This means we are legally and ethically bound to act in your best interest. Our commitment to this principle ensures that our advice is transparent, unbiased, and focused solely on helping you succeed. It is also why we are committed to a flat fee service model (as opposed to AUM or Percentage of Assets) to ensure our interests are aligned and we’re treating all of our clients fairly.
Staying Ahead of Market Trends
Our team stays ahead of the curve by continuously monitoring market trends and economic indicators. This proactive approach enables us to anticipate changes and adjust your investment strategy accordingly. Our clients benefit from our expertise and the ability to capitalize on new opportunities while mitigating potential risks.
The Value of Dealing With a Top Investment Advisory Firm With a Global Reach and Outlook
Based on the chart provided, it’s clear that investing in the US, particularly in technology, has led to the best investment returns over the past decade. The Nasdaq (QQQ) has significantly outperformed other indices with an average return of 18.67%, followed by the S&P 500 (SPY) at 12.76%. This strong performance underscores the dominance of the US tech sector in driving market gains.
However, investing is about the future, and past performance is not always indicative of future results. This is why staying ahead of trends and diversifying globally is crucial. While US markets, especially technology stocks, have shown exceptional growth, a diversified portfolio that includes exposure to other global markets can help manage risk and capture growth opportunities across different regions.
Further Reading: How we deal with South African expats living abroad and planning their return to SA
Why Global Diversification Matters
Japanese stocks have shown signs of life of late again, exiting a secular bear market after more than 30 years. Asia – and in particular Taiwan and South Korea – have a critical role to play in the AI supply chain; with GDP Growth in SE Asia forecast to comfortably outperform western markets.
China has been a drag on Emerging markets (EEM), with its disappointing average return of 2.06% over the last decade. Despite this, emerging markets can offer potential growth as they continue to develop and mature, with India in particular a shining light. And there are many exciting companies that have big weightings in European indices; from Norvo Nordisk, to ASML and LVMH.
As for South African markets, while the past decade may not have been favorable, we can remain hopeful that domestic markets will perform better over the next decade if our new government of national unity is able to generate economic growth again.
A forward-looking investment strategy should always consider global diversification to mitigate risks and capitalize on varied growth prospects across different markets.
Read Next: Who We Consider as The Best Asset Management Firms in SA
Educational Resources for Empowered Decision-Making
At Henceforward, we believe that informed clients make the best decisions. That’s why we provide a wealth of educational resources, from blog articles and newsletters to workshops and one-on-one consultations. Our goal is to empower you with the knowledge you need to make confident financial decisions. Here are examples of some of our most popular content:
- The Top AI Investing Ideas for 2024
- Shares to Consider Buying That Will Accelerate Your Path to Financial Freedom
- 15 Timeless and Essential Investment Principles to Achieve Success
- Offshore Investing 101: Your Guide
- Best Performing SA Equity Unit Trust Funds in South Africa
- Best Performing Global Equity Unit Trust Funds in South Africa
- Comparing the Pros and Cons of Investing in Property vs the Stock Market
Conclusion
Choosing the right investment advisor can make all the difference in achieving your financial goals. As an independent investment advisor, Henceforward is dedicated to providing personalized, fiduciary-based investment advisory services that puts your interests first. Our comprehensive approach, ongoing management, and commitment to education ensure that you have a trusted partner in your financial journey.
Carl-Peter Lehmann
Carl-Peter is a Director and Partner at Henceforward. He is a CERTIFIED FINANCIAL PLANNER and Investment Professional with over 20 years experience, having worked for some of the world's biggest banks and financial institutions.
