The Twelfth Official Language
The twelfth official language of South Africa: Economic Jargon – or at least that’s how some would have it! Yet for many of us, it’s found in the section of the newspaper deemed most suitable for lining the budgie cage. At the mention of “financial indicators”, we find it an opportune moment to make a cup of tea before the weather report. The zigzag of graphs and trend-lines leave our minds boggled as we just struggle to make ends meet. Little do we realise the importance that markets and trends hold for our futures.
The global recession has hit our world hard – and the South African economy has been no exception. Yet, time and again, the world economy has pulled through recessions. Astute and well-informed investors see opportunities when others drown in despair. The need to become financially literate – to learn as much as one can about the economy – has become imperative. Therefore systematic cognitive development of economies and financial literacy can empower us to understand the problems our economy faces, and equip us to make the necessary adjustments to achieve economic recovery.
With this requisite body of knowledge, users’ of financial information can be better equipped to deal with some of the evils that have befallen the investment industry, such as greed and fraud, which have wrought havoc on the economy. These financial sins are echoed by Zandie Mlambo, Business Development Director of Trilinear Investment Managers, as being in the heart of the problem, coupled by information asymmetry between professionals and the end users’. The psychology of a competitive market will always devour the weak, weak defined as lack of information, the strong will act in their best interest, taken to the extreme, will result such excesses as greed, resulting in financial credit crunch and fraud, increase in Ponzi schemes such as Madolf’s case
She believes that what is needed is an approach to investment management that empowers the end user through financial literacy. As an investment management company, Trilinear have thus made it their responsibility not only to invest their clients’ assets according to their individual investment policy statement, but also to speak the language of the end user.
“The sum knowledge of our team is complimented by the expert knowledge of the individual,” proposes Mlambo. Through Trilinear’s commitment to educating the end user, the client is drawn into this effective partnership.
“We believe that having an investment strategy that is aligned with end user’s
investment policy statement is paramount to both the success of Trilinear and users’ investments,” suggests Mlambo. Trilinear establishes a meaningful relationship of trust and knowledge not only with the trustee boards, but also with the end users themselves (in the form of the respective trade unions involved in the specific fund). This relationship is achieved through the empowering force of knowledge as they seek to inform the end users, enabling them to develop financial literacy.
None would argue that our economy requires a drastic correction. The cost of living costs
are unrealistically high and consumption driven economy, is driving people into even greater debt. In such turbulent times it makes sense that an “all things considered approach” as opposed to an “all things constant approach” should be taken in investment. “The only constant is a knowledgeable client,” says Mlambo. “It is therefore imperative that investment solutions are tailor-made for each client: one size does not fit all.”
The bespoke philosophy of Trilinear extends to the targeted returns and risk profile which are also determined by the client. “An empathetic understanding of out client’s needs is translated into their investment solution,” says Mlambo. This empathy, coupled with the valuable information that Trilinear provides their clients, personifies the relationship of trust and knowledge that is essential in investment management.
Providing empowerment through knowledge, designing tailor-made investment solutions whilst delivering on fund manager performance, is what sets investment companies such as Trilinear apart in these challenging economic times. Fortunately, fluency in all eleven official languages is not essential for survival in South Africa. However, being financially literate has clearly become an imperative!
