Fourth Quarter 2023

We view the Bok’s victory in the World Cup as a fitting conclusion to 2023.We trust that you enjoyed the celebrations. As we approach the new year, we extend our wishes for good health, prosperity and joy to you and your loved ones. May the coming year bring success and fulfilment to all.

Message from Mark Jurgens

We are reaching the end of a very challenging year, and it has been distressing for us to hear the recent news regarding another Ponzi scheme which has come to light, affecting thousands of investors in South Africa. So many investors find approval amongst colleagues by being invested in a popular portfolio, without doing any due diligence on the portfolio themselves. I thought it appropriate to remind you of the requirements of the Collective Investment Schemes control act (Unit Trust Fund, Exchange Traded fund and Hedge Fund).
  • The Collective Investment Schemes management company (Manco) must be registered with the FSCA (Financial Servies Conduct Authority).
  • The Manco will outsource the investment function of its C.I.S to a portfolio manager, which must be a registered Financial Services Provider.
  • The Manco must maintain a separate operational trust account for the C.I.S which is controlled by a trustee or custodian – usually a bank.
  • Due to the assets of the portfolio being separate, they are protected in the event of the Manco getting into financial difficulty.
Thus, the first step to take when investing into a product that resembles a C.I.S is to check whether the fund, its Manco, portfolio manager and custodian are all registered with the FSCA. It is fairly simple to find proof of membership on the FSCA website, and I encourage you all to search our FSP number 732.

I would like to convey my gratitude, along with that of my colleagues, for your continuous support throughout the years. As we to look ahead to 2024, my hope is that we find peace and stability in this increasingly turbulent world we are currently living in. May the upcoming festive season bring you and your families joy, and for those travelling, may your journeys be safe.
Stay well and regards
Mark

‘Balancing Acts: The Dual Nature of Investments’ from Alan Botha

Investing is a dynamic dance between potential returns and the inherent volatility and chaos that come with it, and we have had our fair share of chaos to contend with over the past three years. Too often, individuals are enticed solely by the promise of profit, without considering the tumultuous nature of financial markets. This one-sided perspective can lead to unrealistic expectations and ultimately set investors up for disappointment. To truly understand investments, one must recognise that both sides of the equation, potential return, and volatility, play integral roles in the overall scheme.

Potential Returns: The Allure of Profits The allure of potential returns is what draws individuals to invest in the first place. It represents the promise of financial growth and the possibility of achieving long-term goals. Whether it is through shares, property, or other financial instruments, the potential for substantial gains is a powerful motivator. However, it is essential to remember that potential returns are not guaranteed and are often subject to a multitude of external factors.

Volatility: The Rollercoaster of Risk Volatility is the wild ride that accompanies the pursuit of returns. It represents the fluctuation of asset prices over time, driven by a myriad of factors such as economic conditions, geopolitical events, and market sentiment. While volatility can create opportunities for investors to buy low and sell high, it also introduces an element of risk. Sudden market swings can lead to significant losses if not managed carefully. Embracing volatility means understanding that it is an inherent part of the investment landscape and learning to navigate it effectively leads to positive outcomes over time.

Chaos: Navigating the Unpredictable Chaos in the financial markets is a reality that every investor must come to terms with. It encompasses unforeseen events, sudden market disruptions, and unpredictable shifts in investor sentiment. From geopolitical tensions to unexpected economic downturns, chaos can strike at any moment. While it may seem daunting, it is crucial to remember that chaos also presents opportunities. Successful investors are those who can adapt quickly, make informed decisions in the face of uncertainty, and stay resilient in turbulent times.

The Importance of Balance: To truly grasp the nature of investments, one must acknowledge that potential returns, volatility, and chaos are interconnected components of a complex system. Ignoring any one of these elements can lead to a skewed perspective and ultimately result in ill-informed decisions. Balancing potential returns with an understanding of volatility and chaos allows investors to approach the market with a realistic outlook. It encourages the adoption of diversified investment strategies, risk management techniques, and a long-term perspective. By recognising the dual nature of investments, individuals can position themselves to weather market storms and capitalize on opportunities for growth.

Investing is a multifaceted endeavour that demands a comprehensive understanding of both the potential returns and the accompanying volatility and chaos. When someone presents only one side of the equation, they are doing a disservice to the complexity of the investment landscape. It is crucial to approach investments with a balanced perspective, acknowledging the risks alongside the rewards. By embracing both the allure of potential returns and the challenges of volatility and chaos, investors can navigate the financial markets with wisdom and confidence. Remember, it is not about avoiding the storms, but about learning to sail through them and emerge stronger on the other side.

Quote of the Day

"Financial planning and discipline is key to one’s financial freedom."

Short Term News Update from Greg Brits

Let me start by saying “Go Bokke”, what an inspiration they are to us all, nail-biting quarters, semi’s and final but nevertheless we proved a point!

Gosh how this year has flown, I can’t believe that Christmas is upon us so quickly.

There have been many changes in the Short Term Insurance industry this year, especially with topic’s almost always surrounding Power Surge claims, Solar installations, Burglaries and general Maintenance of homes and businesses. With the festive season ahead one can be certain that thieves are also waiting for opportunities to present themselves.

Below are some key points which will help you manage the above risks more effectively, should a loss occur.

• Power Surge Protection in homes and businesses has become the norm across the board with Insurers. A Type 2 SPD (surge protection device), is a requirement and needs to be fitted to your main Distribution Box. Businesses with 3-phase power need Type 1 SPD’s and in some cases both. We strongly suggest that you use a trusted Electrician for these installations, remembering that a COC (certificate of compliance) is required after the installation has been completed.

• Solar systems once installed are not automatically included on your policy, and hence your Insurer needs to be notified. There are different ways of insuring your solar system depending on the cover you choose. Use only accredited solar installers who will issue a COC, which is an insurance requirement, and be sure to check with the installer that your roof can withstand the extra load of the panels. Ensure that your installer has a valid Contractors All Risks policy in force when working at your premises.

• Should you have a Linked Alam Warranty on your policy, it means that your Insurer has imposed a condition specific to theft cover being in place. Your alarm system must be linked to an armed reaction company and must be in working order at all times, as well as being activated when the home is unoccupied. Make sure that your alarm company is receiving opening and closing signals, as well as checking that your batteries can maintain their charge and are in good working order. Where possible upgrade to a lithium battery which has a much longer life expectancy.

• Storms and excessive water cause damage to your building, home contents or business contents if not maintained. Now is the time to clean out gutters, check waterproofing on pitched or flat roofs and conduct general maintenance of your premises. Wear and Tear or gradual deterioration is not covered by Insurers and hence it’s vitally important that you maintain the upkeep of your premises.

• It’s also a good idea to do some tree felling to prevent overgrowth which helps the stability of tree’s during a storm.

We would like to take this opportunity to thank all our loyal clients for your continued support and wish you and your families a blessed Christmas and Prosperous 2024.

Best Regards

Jurgens Insurance Brokers Team
You might recall on one of our previous newsletters, Mark initiated a drive to support TEARS foundation who helps those impacted by violence and abuse. We are very proud to announce that Mark’s ongoing support has awarded him an honouring as one of Gauteng’s 365 men of the year awards for 2023.

Third Quarter 2023

Snow in Johannesburg
Snow in Johannesburg

Hard to believe, but just two months ago, the Jurgens staff rallied against the cold to enjoy some time in the snow! A rare, but enjoyable occasion in Johannesburg!

Message from Mark Jurgens

I am sure you are as pleased as I am to welcome the arrival of Spring.

Having recently read an opening article in the Money Marketing magazine, penned by Timothy Rangongo, it highlighted the importance of each and every one of us practicing strict budget measures with regard to addressing the constant rise of living expenses.

It could not have been predicted that we would have endured nine interest rate hikes since 2021, all of which resulted in higher debt payments for individuals. These hikes have caused the best of budget plans to be stretched to the limit, with regard to debt in the form of bond payments, personal loans, credit cards and household expenses. Notwithstanding the additional pressures created through economic uncertainty and ongoing geopolitical issues. People are realising the benefit provided through having access to a knowledgeable financial advisor. In fact, a fellow independent advisory firm researched that the demand for financial advice has increased in the past year by 21.2%.

An independent financial advisor is able to adapt tailor made financial strategies and evaluate individual investment portfolios which offer informed long term financial planning solutions. As independent advisors, we are not affiliated with any specific provider, ensuring that our decisions are solely based on identifying the optimal offering that suits your needs. A reminder that our advice includes managing debt, minimising tax, estate planning, risk management and fiduciary services.

We encourage you to reach out to our offices and enable us to evaluate your current circumstances and make informed decisions regarding your personal financial situation.

Wishing you a successful and productive last quarter of 2023!
Stay well and regards
Mark

‘The Reverse Obituary: Celebrating Life While Still Living’ from Alan Botha

In a world where obituaries serve as the final tribute to a person’s life, the concept of a “reverse obituary” turns this tradition on its head. Instead of waiting until the end of one’s journey, a reverse obituary invites us to reflect on our lives while we are still living them. It is a powerful exercise that encourages self-awareness, goal setting, and a deeper appreciation for the moments that shape our existence.


Reflecting on Life
It prompts us to consider the legacy we’re actively creating. It challenges us to reflect on our accomplishments, the people we’ve touched, and the challenges we’ve overcome. This introspection allows us to appreciate the journey we’re on, recognizing that every day presents an opportunity to write a new chapter.

Setting Intentions
By purposely crafting this document, we set intentions for our future. We contemplate the impact we want to have on the world, the relationships we want to nurture, and the goals we aspire to achieve. It becomes a roadmap, guiding us towards a purposeful and fulfilling life.

Acknowledging Milestones
It encourages us to acknowledge our milestones and achievements. Whether big or small, each accomplishment contributes to the narrative of our lives. Recognizing these moments of triumph provides a sense of pride and motivation to keep moving forward.

Expressing Gratitude
Expressing gratitude is a cornerstone of a fulfilling life. By reflecting on the people who have played significant roles in our journey, we can reach out and thank them. This act of gratitude not only strengthens our relationships but also cultivates a culture of appreciation.

Embracing Growth
Life is a constant journey of growth and evolution. This reflection, allows us to track our personal development, acknowledging the lessons learned from challenges and celebrating the wisdom gained. It reminds us that growth is a continuous, lifelong process.

Reconnecting with Purpose
In the hustle and bustle of everyday life, it’s easy to lose sight of our true purpose. A reverse obituary serves as a powerful reminder of what truly matters to us. It helps us realign our actions with our core values, ensuring that we live authentically and with purpose.

Inspiring Others
Sharing our personal reflections can be a profound way to inspire others. It encourages them to embark on their own journey of self-reflection, setting goals, and embracing life’s precious moments. Through our example, we can ignite a spark of introspection and purpose in those around us.

Conclusion
The reverse obituary is a testament to the power of living intentionally. It challenges us to actively shape our legacy, fostering a deeper sense of purpose, gratitude, and growth. By embracing this unique approach, we not only enrich our own lives but also inspire others to do the same. So, let us take a moment to reflect, set intentions, and celebrate the beautiful story we are creating with each passing day.

Quote of the Day

"Money grows on the tree of persistence."

Short Term News Update from Greg Brits

With more than half of 2023 behind us, I can’t believe that Christmas is almost upon us. I am glad that winter is nearly over and personally look forward to the sunny and warm conditions South Africans are used to.

There are two subjects in this newsletter that we would like to address, and these are namely a “Linked Alarm Warranty” and the “Rainy Summer Season”. With loadshedding disruptions continuing, and the repair or maintenance operations to power stations throughout South Africa, we have noticed an increase in burglaries at residential and business premises. Summer in South Africa also brings with it, wet conditions, electrical storms and sometimes flooding.

Below are several key points that will assist you in effectively managing the testing of your alarm system, along with preparing for the upcoming rainy season.
• A Linked Alam Warranty means that your Insurer has imposed a condition on your policy that is specific to theft cover being in place. Your alarm system must be linked to an armed reaction company and must be in working order at all times, as well as being activated when the home is unoccupied.
• Make sure that your alarm company is receiving opening and closing signals at least every three months or after an electrical storm. Check that your infrared sensors or door magnets, when activated, trigger the alarm which sends a signal to the control room.
• Where possible, install an infrared sensor inside your roof as intruders either remove roof tiles or cut corrugated roofs to gain access through the ceiling trap door.
• Power surges due to Loadshedding or Lightning can disrupt the zones that have been pre-programmed, causing a malfunction. This is not automatically picked up by the alarm company and hence we strongly suggest that regular testing be a priority.
• Where possible upgrade to a lithium battery which has a much longer life expectancy, high energy density, and low self-discharge rate, meaning they keep their charge for longer. A back-up battery is a great idea to keep the alarm active for longer.
• Storms and excessive water cause damage to your building, home contents or business contents if not maintained. Now is the time to clean out gutters, check waterproofing on pitched or flat roofs and conduct general maintenance of your premises. Wear and Tear or gradual deterioration is not covered by Insurers and hence it’s vitally important that you maintain the upkeep of your premises.
• It’s also a good idea to do some tree felling to prevent overgrowth which helps the stability of tree’s during a storm.
• We remind all our loyal clients to please keep a safe following distance on wet roads, and to check the tread of your tyres to ensure you meet the legal traffic law requirements which Insurers do check at claims stage.

We would like to take this opportunity to thank all our loyal clients for your continued support. We are here to assist at all times and keep you abreast with industry updates and news. Please try NOT to unsubscribe from our “IMPORTANT NOTICE” emailers which are sent from time to time. They contain valuable information which may help you to alleviate discrepancies at claims stage.

Should you have any questions with regards to the above points, please do not hesitate to contact our office.
We are excited to celebrate a significant achievement within our company. Jethro Weidlich, who joined the Jurgens team in early 2022 and advanced to the role of Wealth Manager, has achieved his Postgraduate Diploma in Financial Planning Cum Laude (NQF 8). Jethro obtained distinctions in the following modules: Investment Planning, Retirement Planning, Financial Planning Environment, and the Case Study. His accomplishment is emphasized by securing the highest mark among all candidates in the final exam.
Jethro

Second Quarter 2023

second-quarter-2023
second-quarter-2023

Mark and Alan recently attended a Ninety One Investment Conference in the U.K. Pictured above, starting from the left: Clyde Rossouw (Head of Quality), Mark Jurgens, Nazmeera Moola (Chief Sustainability Officer), Alan Botha, Mimi Ferrini (Co-Chief Investment Officer) and Jeremy Gardiner (Director).

Message from Mark Jurgens

As we head into the second half of the year, we have seen markets continue to recover after the difficult year we experienced in 2022. We hope that this will continue for the remainder of this year.

In the history of money market and fixed interest deposits in South Africa, the banking sector is currently sitting on a record amount of cash. One of the reasons for this is due to global and local uncertainty. Investors are often reluctant to invest their money, and they may hold onto cash for longer periods of time than they originally planned.

In light of these statistics, Ninety One initiated a study to determine the consequences of holding cash for extended periods of time. They analysed the ideal time to invest in equity markets, the worst possible time to invest, and the benefits of investing monthly rather than via a lump sum. They also considered other scenarios. This was done to see the effects of investing in the current climate. For this exercise they looked at the South African market and Global markets.

The results showed that only when investing at the “perfect time” (lowest entry point in each calendar year), which is in any event unrealistic; trumped investing immediately. On both studies, even investing at the worst time (investing at the highest entry point in each calendar year) performed better than staying in cash.

fig2

With inflation getting the better of these investment returns, we encourage you to consider the funds you have in the bank and look at an alternative vehicle that will at least help beat inflation going forward.

‘Wealth Beyond Financial Prosperity’ from Alan Botha

In today’s society, wealth is often associated solely with financial prosperity. However, true wealth encompasses more than just monetary assets. In fact, there are six distinct kinds of wealth that contribute to a well-rounded and fulfilling life. By broadening our perspective and acknowledging the various forms of wealth, we can cultivate a more holistic approach to success and happiness. This article explores the six types of wealth beyond financial gain.

 

Financial Wealth

Financial wealth is the most conventional and widely recognized form of wealth. It refers to the accumulation of money, assets, and investments. While financial stability is important, it is essential to recognize that monetary wealth alone does not guarantee happiness or fulfilment. Nevertheless, when managed responsibly and used wisely, financial wealth can provide opportunities, security, and freedom to pursue one’s goals and passions.

 

Physical Wealth

Physical wealth pertains to the state of our physical well-being. It encompasses good health, vitality, and energy. Taking care of our bodies through regular exercise, proper nutrition, and adequate rest is crucial to maintaining physical wealth. Without physical well-being, other forms of wealth can lose their significance. By prioritizing self-care and leading a balanced lifestyle, we can enhance our physical wealth, enabling us to enjoy life and pursue our ambitions to the fullest.

 

Intellectual Wealth

Intellectual wealth encompasses the knowledge, skills, and wisdom we acquire throughout our lives. It includes formal education, continuous learning, critical thinking abilities, and problem-solving skills. Intellectual wealth empowers us to make informed decisions, adapt to change, and contribute meaningfully to society. Nurturing intellectual wealth involves engaging in intellectual pursuits, seeking new experiences, and embracing lifelong learning opportunities.

 

Emotional Wealth

Emotional wealth refers to our emotional well-being and the quality of our relationships. It involves cultivating self-awareness, empathy, compassion, and nurturing meaningful connections with others. Building emotional wealth requires developing emotional intelligence, practicing effective communication, 

and fostering positive relationships. True wealth is often measured by the love, support, and joy we experience in our interactions with loved ones and the community.

 

Social Wealth

Social wealth encompasses our social capital and the strength of our networks. It includes the quality and diversity of our relationships, the support systems we have in place, and our ability to collaborate and connect with others. Building social wealth involves actively participating in our communities, fostering mutually beneficial relationships, and contributing to the common good. Strong social connections not only enhance our overall well-being but also provide valuable resources and opportunities for personal and professional growth.

Time Wealth

Time wealth refers to the freedom and control we have over our time. It involves having a healthy work-life balance, pursuing leisure activities, and prioritizing personal growth. Time is a finite resource, and how we allocate it impacts our overall well-being. Cultivating time wealth involves setting boundaries, managing priorities effectively, and being mindful of how we spend our time. By achieving a healthy balance, we can enjoy the other forms of wealth and live a more fulfilling life.

In conclusion, wealth encompasses far more than just financial prosperity. By acknowledging and nurturing the six types of wealth discussed above—financial, physical, intellectual, emotional, social, and time wealth—we can create a well-rounded and fulfilling life that extends beyond monetary gains. Striving for a balance across these areas can lead to greater happiness, success, and overall well-being.

Quote of the Day

“Read fewer forecasts and more history.”

Short Term News Update from Greg Brits

Gosh, how time has flown in 2023, one can’t believe that we are basically halfway through the year. From our short-term division, we do trust that all our clients are well and keeping snug with winter upon us.

There have been many changes in the South African insurance market over the past three years, most of which we have mentioned in our quarterly newsletters, and via our email correspondence headed “Important Notice”. We do urge you to please take a couple of minutes out of your day to read these short articles via the above channels, as they are aimed at creating awareness when you claim.

To further expand on what I have said above, please take note of the below points which will guide and assist you, so that your claim runs smoothly.

  • Please ensure that you notify us if your commercial or residential property, whether leased or not, will be unoccupied for a period of 30 days or longer. This is a material change in risk and hence the Insurer must be made aware of this circumstance.
  • Please ensure that you use the emergency call centre number in the event of a vehicle accident, burst geyser or electrical fault. Insurers have set fees with their preferred suppliers so as not to be overcharged for a service offered to customers. Please do not authorise a towing company, plumber or electrician yourself in the event of an emergency, without prior approval from ourselves, the call centre or your Insurer. Additional fees that fall outside of the Insurer approved rates, may and can be, for your own account. Given that our clients are insured with various Insurance Companies, please contact us should you not have an emergency call centre number.
  • Please ensure that your motor vehicle complies with the necessary security requirements, as set out by your Insurer and stipulated in your policy schedule. Non-compliance in this instance may result in a claim being rejected. If you are unsure of these requirements, please contact our office soonest.
  • The above security measures also apply to your Home and Business premises. We have found that in certain instances, linked alarms have been disconnected, or in some cases the contract has come to an end and not renewed. This would be a material breach or non-disclosure issue, which again could result in a possible rejection. Please remember that if your contract of insurance stipulates a “linked alarm warranty”, it must be activated when the home or business is unoccupied at all times and kept in working order.  

We would like to take this opportunity to thank all our loyal clients for your continued support. We are here to assist at all times and keep you abreast with industry updates and news.

Should you have any questions with regards to the above points, please do not hesitate to contact our office

Congratulations Jordan

Congratulations to Jordan Busch on the birth of her beautiful baby boy, Maisyn. We wish Jordan all the best as a valued member of the Jurgens Finance team.
Jordan-Busch
baby-Maisyn

First Quarter 2023

First quarter 2023 newsletter Jurgens Group
First quarter 2023 newsletter Jurgens Group

A message from Mark Jurgens

I do hope 2023 has started as well as possible for all of you.

Having recently attended an Investment conference with Shroders Asset Management, their views, like many other asset management companies, is that the future of investments is changing. Ongoing Covid issues; the Ukraine crisis; Global energy requirements and inflation; are causing a regime shift, which is affecting the thought process of asset owners globally.

• Allocation to private assets are increasing. There has been a slightly higher return from this sector over the last decade.

• Exposure to alternative assets including hedge funds, is increasing.

• Labour shortages will persist, driving investment in technology.

• Political tension in a new world will challenge globalisation.

• Central banks will prioritise inflation over growth. The significant increase in interest rates were the cause of the recent Silicon Valley Bank’s demise.

• Fiscal policies are likely to be more active.

• Response to climate change is accelerating and poses a risk for non-conforming companies.

• Traditional allocation to asset classes has changed and will continue to change. Global pension funds are allocating higher percentages offshore, steadily eliminating home bias. An example of this would be the average pension fund in the UK, which over the last decade, has increased their offshore assets by approximately 20%. The view being that better returns can be achieved with global diversification.

The above shifts will change global investment returns in an everchanging world.

As independent advisors, we are well positioned to ensure exposure to new opportunities, as well as offer alternative solutions based on your risk appetite and personal preferences.

Stay well and regards

Mark

Optimism as a Successful Strategy for Long-Term Wealth Creation' from Alan Botha

When it comes to investing, there are many strategies that can be successful in the short term. However, for long-term wealth creation, optimism is one of the most powerful strategies available. This may seem counterintuitive, as many people associate optimism with unrealistic expectations or blind faith. However, in the context of investing, optimism can be a highly rational and effective approach.

To understand why optimism can be a successful strategy for longterm wealth creation, it’s helpful to first define what we mean by optimism. In this context, optimism refers to a positive outlook on the future and a belief that things will generally improve over time. This doesn’t mean that everything will be perfect or that there won’t be challenges along the way. Rather, it means having confidence in the long-term prospects of the economy, the stock market, and human progress in general.

When it comes to investing, many people believe that a conservative approach is the safest and most effective way to build wealth over the long-term. But while it’s true that minimizing risk is important, it’s also essential to embrace optimism as a key strategy for success.

In fact, studies have shown that optimistic investors tend to outperform their more pessimistic counterparts over the long-term. By cultivating a positive outlook and staying focused on long-term goals, investors can ride out short-term fluctuations and capitalize on opportunities for growth.

Here are some ways that optimism can help you build wealth over time:

Optimism helps you stay committed to your long-term goals.

Investing is a long-term game, and it’s easy to become discouraged when market fluctuations cause short-term losses. However, investors who maintain an optimistic outlook are more likely to stay committed to their long-term goals and avoid making rash decisions based on short-term events.

By focusing on the big picture and reminding yourself of your longterm goals, you can maintain the motivation to stick with your investment plan even during periods of market volatility.

Optimism helps you see opportunities where others see only risks.

In investing, there’s always a risk of loss. However, instead of seeing risks as insurmountable obstacles, optimistic investors view them as potential opportunities for growth.

For example, during a market downturn, many investors panic and sell their stocks, assuming that the market will continue to decline. But an optimistic investor might see the same downturn as an opportunity to buy stocks at a lower price, with the expectation that they will eventually rebound in value.

By taking a positive approach to market fluctuations and looking for opportunities where others see only risks, optimistic investors can position themselves for long-term success.

Optimism helps you make better decisions.

When it comes to investing, emotions can be a powerful force. Fear, greed, and other negative emotions can cloud our judgment and lead us to make impulsive decisions that undermine our long-term goals.

Optimistic investors, on the other hand, are more likely to make rational, fact-based decisions that align with their long-term goals. By approaching investing with a clear head and a positive outlook, you can avoid making decisions based on short-term emotions and instead focus on what is best for your long-term wealth creation.

Optimism helps you stay flexible and adaptable.

Markets are constantly changing, and investors who are too rigid in their investment strategies may miss out on opportunities for growth.

Optimistic investors, however, are more likely to stay flexible and adaptable in the face of changing market conditions. By embracing change and viewing it as an opportunity for growth, optimistic investors can position themselves to take advantage of new trends and emerging markets.

Optimism helps you enjoy the journey.

Finally, investing is not just about accumulating wealth—it is also about enjoying the journey. By maintaining an optimistic outlook and focusing on the positive aspects of investing, you can find joy and fulfilment in the process of building long-term wealth.

Ultimately, investing is a long-term game, and a positive, optimistic outlook is a key strategy for success. By staying focused on your long-term goals, looking for opportunities where others see only risks, and approaching investing with a clear head and a flexible mindset, you can position yourself for long-term wealth creation and enjoy the journey along the way.

Short Term News Update from Greg Brits

South Africans will soon be entering our sixteenth year of power cuts or grid constraints, now commonly known as Loadshedding, however, at a vastly increased frequency than back in 2007. Unfortunately, due to the ever-increasing Power Surge claims, Insurance Companies have had no choice but to start capping their liability or simply exclude the cover in certain instances.

Please pay special attention to the below points as the market has and will be shifting due to the ongoing problems at Eskom.

• Many Insurers will be checking that all electrical/electronic appliances have power surge protection at the plug point, along with the power surge protection on your main DB board. Failing to comply may result in the rejection of your claim.

• Spoilage or Fridge and/or freezer contents due to Loadshedding or Grid-Failure is excluded from certain Insurers wordings or endorsements.

• Grid-Failure of the national electricity grid will not be covered.

• Certain Insurers will now charge a premium for power surge cover, whereas before it was a free benefit.

• Where a linked alarm is a requirement, you must ensure that your battery retains its charge during electricity outages. This can be overcome by upgrading to a larger battery or connecting a second battery, or by adding an Inverter or UPS.

Solar Systems – It is vitality important to notify us of the following:

• Solar systems, once installed, are not automatically included on your policy, and hence the need to notify your Insurer.

• There are different ways of insuring your solar system, depending on the cover you choose.

• In certain instances, private households are installing large inverters which need to be noted, and again are not necessarily insured automatically.

• We urge our clients again, to only use accredited solar companies who have extensive experience in this field.

• Remember to insist that the installer confirms that your roof can withstand the extra weight of the solar panels.

• A COC (certificate of compliance) must be issued upon completion of the installation. This also applies to upgrades of an existing solar system if you decide to do so.

Please do not hesitate to contact our office for additional information or advice in this regard.

Staff News

Staff News March 2023

Congratulations to Simone Heyman on achieving her 5 Year Service Award Presented by Alan Botha and Mark Jurgens. We wish Simone many more years as a valued member of the Jurgens Finance team.

Quote of the day

“Past performance increases confidence more than ability.”

Fourth Quarter 2022 – In Touch

jurgens fourth quarter 2022

Investment news for you

jurgens fourth quarter 2022

Well done to Lemeryn, Simone, Jethro, Jordan and Miguel for furthering their studies and passing their exams!

A message from Mark Jurgens

2022 will go down as a challenging year for South Africans and global investors. High inflation, spiking interest rates, an ongoing war and load shedding are amongst the difficulties being negotiated. However, the benefits of a strong Reserve Bank and surplus taxes being generated from local resources, as well as a resilient South African culture, have softened the blow.

In my fourth and final article relating to Behavioural Finance, I would like to discuss Familiarity Bias. Despite obvious gains from diversification, studies have shown that investors often prefer familiar investments from their own country, region, state or company. Investors prefer domestic investments over international investments. Beyond a geographic familiarity bias, investors also exhibit strong preferences for investing in their employer’s stock. I have met a number of people who have been overconfident with the long-term investment prospects within their company of employment. This can result in not only the risk of poor investment returns, but also potential loss in compensation. Dimension Data and Steinhoff are two examples where employees on all levels lost significant amounts of money when share prices plummeted.

An implication of familiarity bias is when investors hold suboptimal portfolios and suffer from under diversification. Although the best practice is for portfolios to hold at least 50+ stocks, the average investor in this instance, only holds three or four. Focussing on their employer, large capitalisation, and domestic stocks; work against global diversification. To overcome this bias, investors need to cast a wider net.

In my experience, unit trust managers add tremendous value to clients who previously managed their own portfolios based on their limited choices of familiarity. With the amount of unit trusts available today, global diversification is far more attainable than ever before.

One must try to constantly remain aware of behavioural finance influencers and realise the value of independent advice.

I want to take this opportunity of thanking you for your support during a tough year. Volatility creates opportunities, although not always easily identified. Stay well and regards I also want to thank my colleagues at Jurgens Finance for their hard work and commitment. Wishing you and your families safe travels and a happy festive season.

Stay well and regards.

Mark Jurgens

'Let it go, let it go….' from Alan Botha

Human nature allows us to get stuck because we focus on things that are outside of our control. The more we do this, the more disempowered we are, and the more frustrated or disappointed or angry or anxious we feel.

In contrast, the more we focus on what is in our control, the more empowered we are, we can do something useful. This year, declining investment markets have evaluated our ability to remain focussed on our end goal, in turn, ease of access to information or misinformation, and social media influencers, have pushed us over the edge. We feel the need to act and do something in the face of this mounting crisis of market despair; ultimately to our detriment in the journey of long-term wealth creation.

While this year may have been challenging for the investment market, it is important to remember that most of what we see, and experience is out of our control. So even though this is tough to absorb, it is important to stay in the moment and understand that we cannot control everything but if we are mindful – that is self-aware, present, engaged in what we are doing, able to let our thoughts and feelings flow through us without getting hooked by them – then we can exert control in these areas. Your own behaviour is the most important thing you can control. If you can master your behaviour, you will certainly succeed as a long-term investor.

Out of your control:

The Economy

In the grand scheme of things, our spending has little to no impact on the economy. We have zero influence with the Reserve bank or interest Rates, and our purchases of items like mobile phones or cars have almost no impact on corporate earnings or market volatility. Despite all this, you still contribute to inflation everyday, simply by spending your money.

The Markets

No matter how much you might try to control the markets, they will always be unpredictable and seemingly out of your reach. Even if you had billions of rands at your disposal, it would still be impossible to influence the trillion-rand/dollar marketplaces. They operate on their own, unaffected by those who inhabit them. Markets are always looking ahead and pricing in good and unwelcome news, long before we can react to positive or negative price movements. A proven strategy is to always take a long-term view and you will always be well rewarded.
MINDFUL - JURGENS

In your control:

Your financial planning and investment portfolio

Constructing a financial plan that will help you weather recessions, market volatility and drawdowns.You need something you can live with, something that is tailored to your risk tolerance and has achievable goals. The asset allocation and diversification in your plan should reflect this. Additionally, we need to ensure that you know where you are headed and how well you are doing along the way. This includes building towards and in retirement. You can control your financial destiny by living within your means and making wise choices about your behaviour, taxes, fees, and expenses. Reading too much negative news can affect your outlook in a destructive way, so be selective about the news sources you consume.

Conclusion

If we are on autopilot, being spun around by our thoughts and feelings, we are not likely to be able to exert control in these areas. But if we are mindful – that is self-aware, present, engaged in what we are doing, able to let our thoughts and feelings flow through us without getting hooked by them – then we can exert control in these areas. Your own behaviour is the most important thing you can control. If you can master your behaviour, you will certainly succeed as a long-term investor.

Short Term News Update - Greg Brits

INSTALLING SOLAR PANELS

With South Africa’s struggling power grid, many consumers are finding alternatives to best serve their households and businesses. The installation of solar panels has become very popular, however, from an insurance perspective, we would like to point out a few very important considerations when the panels are installed on a pitched roof.
• Identify accredited manufacturers and installers who have many years of experience in this
• Check with your installer, in writing, that your roof can withstand the additional load bearing
• Following the above point, ensure that your installer has a Contractors All Risk Policy that is valid and active. Damages to your roof, tiles, gutters etc., may not necessarily constitute a claim via your Insurer as the contractor caused the damage. This would also apply to flat roof was not designed to accommodate the extra weight. field. This also means that the warranty periods are greater, which works in your favour. weight. This is vitally important as Insurers may repudiate a claim based on the fact that the roofs as damage may be caused to your waterproofing. INSTALLING SOLAR PANELS
• A COC (certificate of compliance) must be issued upon completion of the installation. This also applies to upgrades of an existing solar system if you decide to do so.
• Remember to notify us of the replacement value for the solar system, as your building sum insured will more than likely need to be increased. In the event that you rent premises or are the tenant of business premises, you do have the option to insure the system on an All-Risks basis.

HOLIDAY TIPS

The holiday season brings its own challenges with regards to safety on our roads but also the crime aspect when your home is unoccupied. Here are a few tips to remember:
• Test and service your alarm system to ensure that battery back-ups and all required zones are fully operational.
• Clear your post-box as thieves monitor activity at residences. A full post-box means no one is at home.
• Leave a spare set of keys with a neighbour or family member in case of emergencies.
• Switch off unnecessary appliances which won’t be in use whilst on holiday, namely geysers or gas supplies.
• Where possible, switch off the water supply to the home to avoid unnecessary pressure build up should a pipe leak or burst.
• Ensure your electric fence is fully operational.

We would like to take this opportunity to thank all our loyal clients for your continued support during 2022. We wish you and your families a blessed Christmas and prosperous New Year, may your holiday season be filled with love and memorable occasions. Should you have any questions with regards to solar installations and your Insurers requirements, please do not hesitate to contact our office.

Best Regards and Merry Christmas,
Jurgens Insurance Brokers Team
happy holidays - jurgens

May your holidays sparkle with moments of love, laughter, and goodwill, and may the year ahead be full of contentment and joy.

Quote of the day :

We are extrapolating machines in a world where nothing too good or too bad lasts indefinitely.