mombasa trustees training presentation · 2019-08-23 · mombasa trustees training presentation...
TRANSCRIPT
Mombasa Trustees Training Presentation
8/19/20191
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Our why :A Dignified Retirement
Life for All
Our how :Enriching Lives through innovative social security financial services
Vision & Mission
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Statistics at a Glance
9years we have been
in operation
40technical staff
members, wide range of professional
specialty ranging from legal, investment
accounting , benefits administrators, trainers
$620min
ASSETS under
administration
3 countries Kenya , Uganda ,
Mauritius $1000,000 professional indemnity
50,000 members
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Our Values
Integrity
Fairness
CreativityExcellence
Passion
Empathy
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Products and Services
Fund Administration
Services
Retirement Benefits
Consulting Services
Retirement Benefits Training Services
Insurance and
Brokerage Services
Corporate Trustee Services
Property
Services
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Custodian
Scheme Administrator
Scheme/Trustees
Fund Manager
Others (Actuary, Auditor, Legal advisors, etc.)
Retirement Benefits Authority
SCHEME GOVERNANCE – REGULATORY MATRIX
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Our Philosophy
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The how – Governance Perspective ( Duties of Trustees)
Statutory enshrined in law
Act in
accordance
with provisions
of statute – RB
Act, TDR,
Income Tax
Contractual/relationship
Management of
relationship
with the
sponsor,
members,
service
providers and
the Regulator
Common Law
Act in good
faith with duty
of care and skill
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Quote
"Even if you're on the right track,you'll get run over if you just sit there."
- Will Rogers
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The Change
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Knowledge Capital Vs Wealth Accumulation
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Decumulation
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What is your Net-worth
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The Need ( The Why)
Financial stability
Promote
Savings
Culture-
Member
Education
Growth on
investment
through
income
Tax
exemption
Safety of
Investments
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Savings & Investments
Money Vision
Financial Capital Risk Management & Legacy
Knowledge Capital Spiritual Capital Social Capital
The “Results
Hierarchy”
What
How
What
How
What
How
What
How
What
How
The how
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Risk vs. Return
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Comparative Analysis
Asset Income
Drawdown
Annuity Property Shares Bonds Business
Risk Medium Risk Low Risk Medium Risk High Risk Risk Free High Risk
Level of Income High High Medium-
High
Varies Medium Varies
Inflation
Protection
Medium Medium High High Low Medium
Legacy Asset Effective Not Always Most
effective
Effective Effective Varies
Tax Protection Very Effective Very
Effective
Low Low Low Effective
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Personal Asset Allocation
Age 20 – 30 31 – 40 41 – 50 51 – 60 61 – 70
Equities 60% 40% 30% 20% 15%
Fixed income 25% 25% 25% 25% 35%
Property 10% 30% 40% 50% 40%
Other 5% 5% 5% 5% 10%
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Comparison of Commercial Office Performance – Different Cities
Source : Cytonn Report
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Commercial Office Performance by Nodes and Grades in Nairobi 2017
Grade A Grade B Grade C
Area Yield Occupancy Yield Occupancy Yield Occupancy
Karen 9.4% 92.9% 9.7% 86.7%
Kilimani 9.9% 69.6% 9.4% 86.4% 9.1% 98.3%
Msa Road 10.1% 84.9% 9.7% 79.8% 7.3% 67.6%
Parklands 9.7% 59.8% 9.9% 87.8% 8.9% 90.0%
UpperHill 9.4% 74.9% 9.1% 83.5% 8.2% 92.5%
Westlands 9.7% 90.7% 9.4% 89.5% 9.1% 85.0%
Thika Road 9.1% 65.3% 8.0% 81.8%
Nairobi CBD 8.7% 83.7% 8.3%
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The Entrepreneurial
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Shared Values
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Family Wealth
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Family Wealth
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The Failure of Wealth TransitionSources of Failure
Poor
legal/tax/investment
advice 3%
Breakdown of family
communication and
trust 60%
Inadequately
prepared heirs 25%
Failure to establish
family mission 12%
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Being Good With MoneyAn Exercise in Balance
• Being “good with money” is a combination of knowing how
to …
– Obtain it.
– Grow it.
– Spend it.
– Give it away.
• If you want the next generation to be responsible, give them
responsibility.
– Experience is the best teacher!
– Create a “safe harbor” in which to make mistakes and learn
from them.
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The Failure of Wealth TransitionSources of Failure
Poor
legal/tax/investment
advice 3%
Breakdown of family
communication and
trust 60%
Inadequately
prepared heirs 25%
Failure to establish
family mission 12%
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Questions to Ask About Wealth Transitions
• What do you want your wealth to do for you, your children and your
grandchildren?
• What difference will this wealth make in their lives, and will it help or
harm them?
• How will this wealth impact the community in which your children
and grandchildren will live?
• What are the core values of your family which you want to see
preserved in future generations?
• How does the family define wealth?
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Definitions of Family Wealth or Capital
• Human Capital
– The unique abilities and
talents of members of the
family
– Family health and happiness
– Ethics, morality and character
• Intellectual Capital
– What people know, both
formally and informally
– Experience and learning
– Heritage, tradition, faith,
history and “distinctness”
• Social Capital
– Involvement with community
and others
– Responsibility to greater
good
– Philanthropic or charitable
activities
• Financial Capital
– Cash, stocks, bonds, real
estate
– Art, collectibles and other
tangible assets
– The family business
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Wealth Transition Checklist
1. Our family has a mission statement that spells out the overall purpose
of our wealth.
– Defines wealth rather than letter it define the family.
– Brings into consideration various types of wealth.
– Provides guidance to outside advisors.
2. Every member of the family participates in important
decision making, such as defining a mission for our wealth.
– Defines wealth rather than letter it define the family.
– Provides guidance to outside advisors.
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Wealth Transition Checklist
3. All members of the family have the opportunity of
participating in management.
– Not just financial management, but also philanthropy and the
management of other forms of wealth.
– “Opportunity” the key word.
4. All members of the family understand and accept their roles,
and look forward to performing in those roles.
– Matches individual interests and competencies with family
needs.
– Can lead to trouble if family members are unwillingly pressed
into service.
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Wealth Transition Checklist
5. Heirs have reviewed estate plans and documents.
– Communication and openness are key.
– Establishes expectations and avoids nasty surprises.
– Helps to drive discussion of meaning of future wealth.
6. Documents are designed to transfer wealth based on
readiness rather than arbitrary age.
– Helps to minimize the law of unintended consequences.
– Yet very difficult for a corporate trustee to accept.
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Wealth Transition Checklist
7. The family mission includes creating incentives and
opportunities for heirs to add to the family wealth.
– Human, intellectual, social AND financial wealth.
– The only way that wealth (broadly defined) grows.
8. Younger children are encouraged to participate in the
family’s philanthropic planning and implementation.
– An ideal training ground for the next generation.
– Instills family values and demonstrates that wealth is a means
of expressing those values.
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Wealth Transition Checklist
9. Family cohesion is as important as finances.
– Don’t allow one definition of wealth to overwhelm the other three.
– Understand and appreciate the contribution of all family members
to all forms of family capital.
– Celebrate family rituals and “rites of passage”.
10. The family communicates openly and meets regularly to
discuss issues.
– Frequent and open communication, whether formal or
informal.
– No hierarchy of authority on raising issues.
– No subjects off limits.
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Effective listening
“Listening is not understanding the words of the
question…listening is understand why the question
was asked…”
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effective listening
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Success in live is largely dependent of whom and what you trust
The level of efficacy in service delivery shall be based on establishment of
an ecosystem Trust ( Competency, Credibility and Character )
Building Trust
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The Five Waves of Trust
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Self-Trust
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The way to get it done
‘‘When you hear something, you forget it. When you see something, you
remember it. But not until you actually do something will you understand it.’’
-- Chinese proverb
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▪ Each team has a coach
▪ Each game has a Half time
▪ Each team has diversified
▪ Substitutes are allowed
▪ Have a game plan “ your strategy”
▪ Celebrate every win moment
▪ Play with the end in mind
▪ Each team has a reserve bench – emergency savings
▪ Each team has a cheering squad
Financial Planning Lessons from Football
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Attitude of gratitude
Attitude of controlled spending through budgeting
Attitude of Love – They don’t hate the rich
Attitude of seeking knowledge through continuous learning
Attitude of savings and investments ( they don’t eat to finish)
Attitude of risk taking
Attitude of time management – Time is money
Attitude of diligence
They don’t care about tax …..
The keep cash in the mattress
They like free things
Attitudes of Wealth Creation
Morningside Office Park
1st Floor, Suite D2, Ngong Road
P. O. Box 52840-00200 Nairobi
Pilot Line: +254 20 2788000
Tel: +254 20 8160312, 202319162, 202316467
Mobile Lines +254 0727 617443, 0788 617443
Email address [email protected]
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