SA Investors wary of global economic repercussions

South Africans have cast their votes and the ballots have been counted. The outcome of the fourth democratic election is certain and the African National Congress, led by Jacob Zuma, is the new leading regime. Unfortunately, the same certainty cannot be said of the South African economy which is following the rest of the world into uncertainty as a result of the current economic global crisis.

With the hype around the election and its ultimate outcome markets have been twitchy. However, concerns surrounding the competence of the new ruling party, in terms of the South African economy, appear to have been unfounded. With the appointment of new finance minister, Pravin Ghordhan the prodigy of Trevor Manuel, confidence has been somewhat restored and an economic upswing is definitely on the cards.

“It is often difficult to advise a client when his or her judgement is clouded by the headlines he or she reads”, says Menzi Nkosi CEO of Trilinear Investment Managers.

A different breed today, investors have instant access to relevant company and general news and are invariably less reliant on financial advisors for direction.

“The clients of today will ask many relevant questions pertinent to shares and other investment vehicles. Client relationship is obviously the key to a business like ours and its growth has sent out clear signals that we are succeeding in our endeavours”, adds Nkosi.

In the past many investors were familiar with a sprinkling of terms and words most were unfamiliar with; today’s investor is much more acquainted with the terminology. The need has grown for advisors to tailor-make client-centric strategies to compliment this new flux of informed investors.

“Wealth management and investment has evolved to match the needs of its clients”, continues Nkosi.

Trilinear Investment Managers have recognised that strategies where the clients belong in the centre, revolving around what the client says, does, wants and needs are inevitably those that are going to succeed.

The concerns of prudent investors relative to political and economic climate changes should not be brushed off. Millions of Rand’s worth of equity have been decimated on global markets. Stalwarts in the industry and the financial world have fallen from lofty perches.

The world has been thrown into a time of uncertainty that is unprecedented and unfamiliar to those who invest and advise. Yet, never before have people been more informed of these changes and fluctuations. This will, without doubt, change how investors use their money, and how investment professionals dispense of knowledge.

There needs to be a change in the interaction between investors and investment professionals, particularly with regard to knowledge. It is no longer a case of investors blindly following the advice of those in the know. There is a growing trend towards more informed investment and this has changed the market place as a whole.

In a time where change is inevitable those who refuse to accept and adhere to the obvious will be left behind. Investors are aware of the insecurity surrounding the global and local economy at present and are wary of the repercussions that go hand in hand with this.

Many South African companies, such as Trilinear Investment Managers, have taken the wants and needs of South Africa’s new, more knowledgeable investor in mind whilst formulating new business strategies.

“We pride ourselves on actually listening to clients rather than lecturing at them. This part of our strategy ensures a refreshing approach to investment management which ensures that our clients feel that the advice we offer is credible. It is our unique approach to investing coupled with a view to meet client needs that sets us aside from the mainstream. We aim to deliver targeted returns defined by you - it’s that simple”, states Nkosi.

This suggests that information is key to overcoming the concerns surrounding the global economic crisis and the current political changes occurring in South Africa. Without informed investment, the world’s economies are likely to face a situation where history repeats itself once again.