Most of us want our money to grow, but markets can be confusing and unpredictable. So how do you make sure your investments work for you, no matter what happens? Investing for real-life outcomes helps you focus on what matters most and what your money can do for you.
‘Goals-based investing’ is about helping you achieve your goals whether it’s buying a home, funding your child’s education, or retiring comfortably through a disciplined, proven process designed to build portfolios most likely to get you there,” explains Renzi Thirumalai, CIO at FNB Wealth & Investments.
Think of it like planning a road trip. First, you choose your route say, a trip to KZN via the N3. That’s your strategic asset allocation (SAA): the long-term plan that anchors you to your destination. Along the way, you might hit traffic, spot a scenic detour, or stop for lunch. These adjustments are your tactical asset allocation (TAA): short-term changes that respond to conditions without losing sight of the big goal. SAA keeps you on track; TAA adds flexibility and value to the journey. And by following this process, there’s no risk of ending up on the N1 to Cape Town your strategy relies on a plan, not hope.
Once you’ve set a plan, staying committed is crucial. “Just like you wouldn’t turn back at the first pothole, staying invested matters, it’s how the power of compounding works,” adds Thirumalai.
For example, if you’d invested R1,000 in the FNB Growth Fund of Funds five years ago and left it untouched, you’d have more than doubled your money (after fees, before taxes). But if you’d panicked during the Covid-19 crash and switched to a more conservative option, your investment would have grown to only about R1,300. “Patience and resisting emotional reactions can make a huge difference to your returns,” he adds.
Strategic asset allocation helps diversify your investments across different assets and risk sources such as market, interest rate, and currency risks building resilience against market shocks. Behind the scenes, we draw on the combined expertise of leading investment teams and a multi-manager approach selecting top managers with different styles for added diversification. Our FNB Wealth & Investments team monitor and adjust portfolios actively, so you can focus on life while we look after your investments.
“While the process is complex, our goal is simple: to make investing easier through expertly managed solutions. Together with your advisor, we help you stay on track, avoid costly mistakes, and give you peace of mind no matter what the headlines say,” concludes Thirumalai.
This disciplined approach has earned industry recognition, including multiple performance awards at the recent Citywire South Africa DFM Awards. While these accolades validate our process, our focus remains on helping clients achieve their goals.