By Linda Sherlock, Executive Head: Wealth Advisory at PPS.
Wealth management is progressive and high net worth individuals (HNWIs) require a specialised approach tailored to their unique needs and aspirations. As the financial environment continues to change, it is essential for wealth management firms to offer personalised investment strategies that align with their clients’ long-term goals and risk tolerance.
Professional Provident Society (PPS), a leading financial services firm, has long recognised the importance of a tailored approach when working with HNWIs. The company’s ethos of mutuality, which places the client’s best interests at the heart of every decision, has been a driving force behind its success in the HNWI sector.
A Personalised Approach
“At PPS Wealth, we understand that each client’s financial journey is distinct,” says Linda Sherlock, Executive Head: Wealth Advisory at PPS. “Our team of seasoned professionals takes the time to meticulously understand the intricate details of a client’s financial portfolio, risk tolerance, and long-term goals. This holistic approach allows us to craft tailored strategies that align seamlessly with the client’s vision, whether it’s preserving generational wealth, funding philanthropic endeavours, or planning for a comfortable retirement.”
One of the key benefits of PPS Wealth’s specialised approach is its commitment to transparency and personalised communication. Clients are kept informed every step of the way, with regular updates and open dialogues fostering a deep sense of trust and collaboration. This level of engagement ensures that clients feel heard, understood, and confident in the decisions being made on their behalf.
Moreover, PPS Wealth’s investment strategies are designed to deliver consistent, long-term growth by leveraging a diverse range of asset classes and market-leading research. By carefully balancing risk and return, the company’s portfolio managers work tirelessly to safeguard and grow clients’ wealth, positioning them for financial success in the years to come.
“Our clients entrust us with their most valuable asset – their wealth,” says Sherlock. “We take that responsibility seriously, constantly exploring new opportunities and strategies to ensure their financial security and prosperity.”
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In 2023, PPS paid R530 million in claims to the financial sector. Read about mutuality for the greater good in the 2023 Financial Results Highlights.
PPS is a licensed life insurer, controlling company and authorised FSP.
The Ethos of Mutuality
PPS Wealth’s approach is deeply rooted in the ethos of mutuality, which is especially beneficial for high net worth individuals (HNWIs). Unlike traditional financial services firms, PPS operates without shareholders, allowing the firm to focus solely on the best interests of its members. This unique model shapes every facet of the organisation, driving a commitment to shared success and collective well-being. By eliminating conflicts of interest and aligning the company’s success with that of its clients, PPS Wealth nurtures a symbiotic relationship built on trust, transparency, and shared success, providing HNWIs with the personalised attention and ethical management they require.
Long-Term Benefits of Mutuality
Membership in a mutual like PPS is particularly advantageous for high net worth individuals (HNWIs) as it promotes accountability and transparency. Board members are elected by members, ensuring that decisions are always made in the best interests of the members. This structure not only builds trust but also facilitates significant wealth growth, as members share in the business returns, leading to substantial long-term benefits. In recent years, PPS has produced over 10,000 “Profit-Share Millionaires”—members who have received over R1 million in allocations to their notional PPS Profit-Share Accounts™. Additionally, tens of thousands more members have significant balances in these accounts, significantly enhancing their retirement savings and financial security.
Mutuality in Action
From a risk management perspective, PPS believes that high net worth individuals (HNWIs) among graduate professionals form an excellent risk pool, given the professional ethics and inherent risk management skills intrinsic to many professions. This benign risk pool, combined with the sense of ownership that comes with membership, results in PPS having lower-than-industry lapse rates.
A prime example of the distinctiveness of mutuality is PPS Health Professions Indemnity, a business developed in response to medical members’ calls for a sustainable solution to practitioners’ liability needs in an increasingly litigious environment.
Mutuality benefits all stakeholders within the ecosystem, particularly HNWIs. For instance, intermediaries benefit from accessing the PPS academy for training programs designed to enhance their skills and empower them to perform better. In 2023, PPS paid R6.12 billion in gross benefits, covering members in various ways, from sickness benefits to short-term insurance claims. PPS processed 15,931 claims, averaging 64 claims per day, with an average of R16 million paid out per working day. Specifically, PPS paid R849.1 million in permanent incapacity claims, showcasing its robust support system and commitment to member well-being.
The Future of Wealth Management
As the wealth management landscape changes, PPS Wealth is poised to capitalise on the remarkable growth projected for high-net-worth individuals (HNWIs) in Africa’s wealthiest countries, including South Africa. According to a recent industry report, HNWIs in these regions are expected to increase by an average of 65% over the next decade, driven by rising economic prosperity, increased investment, and Africa’s growing prominence as a global economic force. Recognising this trend, PPS Wealth has positioned itself as a trusted partner for affluent clients, offering a comprehensive suite of tailored solutions to help them navigate the complexities of wealth management. With a deep understanding of the unique needs and aspirations of HNWIs, PPS Wealth’s team of seasoned professionals delivers personalised strategies that unlock the full potential of their clients’ assets, secure their financial legacies, and pave the way for a future filled with endless possibilities. As the wealth management outlook continues to evolve, PPS Wealth remains at the forefront, leveraging its expertise and innovative approach to empower HNWIs across South Africa to achieve their most ambitious financial goals.
In conclusion, the mutuality ethos of PPS Investments offers a compelling advantage for high net worth individuals seeking tailored wealth management solutions. By prioritising clients’ needs and aligning their interests with those of the company, PPS Wealth not only safeguards wealth but also promotes a community of shared success. This long-term, sustainability-aligned way of thinking sets mutuals apart, embodying the principle that success is better shared.
Disclaimer: PPS is a licensed life insurer, controlling company and authorised FSP.
Members holding qualifying products share in the profit and the loss of PPS and past performance is not necessarily indicative of future performance.