The rand has hit the eye-watering level of R17,60 to the dollar again and anything dollar-based is expensive, but fortunately your international investment exposure softens the blow. As the equity markets give back their recent profits, the stronger dollar brings South African investors with dollar exposure some relief.
All of these swings and roundabouts are temporary, however, and over the medium to longer term only the quality of the companies you are invested in will matter. As investment managers we often reflect on the true value we add to people’s lives. Surgeons, for example, see results within hours and they are usually life-changing. Engineers design and build incredible structures and machines that benefit humanity as a whole and we can all marvel at their ingenuity. Scientists can develop vaccines that save millions of lives.
As investment managers, on the other hand, we operate in a world where we cannot see the fruits of our labour for many years, but ultimately people’s investments provide something that is invaluable, and that is the luxury of choice. There may be people who never save any money and happily continue to work their whole lives without ever needing something to fall back on. But for most people, their income-generating days will come to an end at some point. The ability to choose how you want to live once you no longer work and earn and income, is a privilege. We know not everyone will be in a position one day to live completely without boundaries, but we can help our clients to steer their nest egg in the right direction, avoiding potentially terminal mistakes and providing them with the ability to live their chosen lifestyles till the end.
