We have put together answers to the most frequently asked questions we get for you to understand us better.
Where can I learn more about Luthuli Capital (Pty) Ltd?
Come in and meet us. This is the best way for you to discover our expertise, commitment and discretion. During a relaxed meeting, we will introduce you to our team. We use this opportunity to listen to you and learn more about your specific circumstances, needs, and goals. We also provide a comprehensive overview of our services and let you experience first-hand why so many families and organisations have chosen Luthuli Capital as their trusted financial advisor.
How does Luthuli Capital differ from other brokerage firms, trust companies, banks, and wealth management firms?
We have ensured that our financial interests are aligned with those of our clients. Luthuli Capital is independently owned and operated. We are not subject to outside influences regarding service, product or investment recommendations. In addition, our investment management services offering provides expert counsel across the entire capital market spectrum, rather than in a single asset class or investment style. For those with more complex needs, our family office services offering provides the high–touch experience and resources you might expect to find in a private office serving an exceptionally wealthy family.
If I choose to work with Luthuli Capital, how will my fee be determined?
We will meet with you to understand your current financial situation, goals and objectives. Following a review of your financial situation, we will jointly determine the scope of services required and the assets for which we will assume management responsibility. The fee schedule and services retainer will then be determined accordingly.
How are you compensated? How will I pay for your services?
Luthuli Capital charges an annual fee for Investment Management Services. Our fees are based on a percentage of assets under management and the services provided. The fees are automatically withdrawn monthly. The fees are charged as follows:
Investment Amount Annual Fee Charged (Excl. Vat)
R0.00 – R5m = 1.00%
R5m – R7.5m = 0.75%
R7.5m and above = 0.50%
How will we work together? Will you be the only person working with me?
The client advisor relationship includes working with both Mduduzi and Trudy. Generally, Mduduzi leads the strategy and investment session while Trudy coordinates estate-planning implementation.
Where will my assets be held? What financial institution(s) do you represent?
Luthuli Capital is an authorised financial service provider and registered investment advisor and is completely independent. We work with 2 affiliates, Allan Gray & Absa Capital. Your assets will be administered by one or both affiliates depending on what investment option/s you opt for. Our affiliates collaborate with us in holding your assets. They, along with us, will provide statements, tax documents, and online access.
What experience do you have?
Please refer to our website page for Mduduzi and Trudy’s bio. This will have a detailed explanation of their expertise and experience.
Do you provide a free initial consultation?
Yes. We find it essential to interview prospective clients to ensure that we are a good fit for one another.
What services do you provide? What are your specialties?
We offer holistic wealth management strategies. Over the course of our relationship we will discuss financial planning, retirement goals, education planning, insurance needs, estate planning, portfolio management, and family values.
Why should I choose you as my financial advisor?
You want someone you can trust. We are independently and objectively looking after your best interest. You also want someone with experience. Between us, we have 19 years of financial planning and investment experience. We are committed to helping individuals, families, and organisations utilise, grow, and protect their assets. We also strategise the efficient transfer of wealth and values to future generations.
What is your approach to financial planning?
Luthuli Capital works with a variety of clients. We understand that risk tolerance and time frame vary from one person to the next. We learn about each client so that we may design customised portfolios. We educate our clients on the investment landscape and demonstrate how diversified holdings blend together to form a cohesive portfolio.
What is the profile of a “typical” Luthuli Capital client?
Together we can determine whether our services are a good fit for you. By design, our business model allows us to work with individuals, families, and organisations across a broad wealth spectrum. Having the opportunity to meet you is the first step in establishing a mutually beneficial and, we hope, long–term relationship.
If you are going to manage my account, will you obtain my permission every time you buy or sell something?
Most of our clients grant us discretion to conduct transactions within predetermined guidelines and levels of risk. Other clients have concentrated positions or extraordinary circumstances that require an ad hoc approach to their portfolio management.
Do you offer any guaranteed results?
No. We educate our clients on historical returns and provide frequent reviews to make sure their portfolios not only reflect changes in their lives and economic circumstances but also track long-term progress toward their defined goals.
Yes. Our structured equity account offers the possibility of a guaranteed return provided the markets remain positive over a rolling 5-year period. Speak to Mduduzi for a detailed explanation on how this account works and if it’s the right fit for you.
Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
There have been no disciplinary actions taken against Mduduzi, Trudy, or Luthuli Capital. There are several government and professional regulatory organisations, such as the FSCA, FPI, SARB and CFP Board that keep records on the disciplinary history of financial planners and advisers. Luthuli Capital has been and is currently regulated by the aforementioned organisations and can provide you with written proof which shows that we have not been disciplined for any unlawful or unethical activities.
How much risk should I be willing to take?
This is a very personal decision. To answer this question, we would need to learn more about your family history, employment status, other income and resources, cash flow, and short-term needs, among other things.
How does Luthuli Capital work with my current Advisors (attorneys, accountants, and other professionals)?
You let us know how we can best work with your other advisors. Our goal is to build a strong relationship with your advisors to complement and enhance their work. In some cases, we may serve as your project manager to ensure that your advisors have timely and accurate information. In all cases, our job is to work together, provide context and obtain the benefit of their expertise. As your advisor, we will be able to anticipate issues and opportunities that can be referred to your tax advisor, lawyer or other service providers, for prompt consideration and resolution.
What percentage of assets can I withdraw from my portfolio in retirement?
If you start early enough, if you plan to retire in your 60s, and your advisor responds with a recommended withdrawal rate higher than 5%, strongly consider heading for the door. Numerous studies have shown that the withdrawal rate that would have survived any 30-year period over the past 130 or so years is just around 4%. It’s a very safe withdrawal rate, so some will argue that 5% is manageable if you can alter your lifestyle based on market conditions. But anything higher is taking on a big risk that you’ll outlive your money.
What is your approach to pension fund preservations?
We educate our clients about taxes and other sources of retirement cash flow and then design an exit strategy that enables our clients to get an “income” from their investments that mirrors what they received while working.
Why should I preserve my pension fund withdrawal with your firm?
Our flexible institutional design has enabled our clients to mirror the investment techniques used by sophisticated institutions. We also have low costs. Most importantly, we look at your preservation as a critical element of your entire financial picture. We educate you on how the various pieces fit together and enable you to sleep at night.
How long does the process of preserving my pension fund withdrawal usually take?
Considering everything is in order, it shouldn’t typically take more than 20 business days.
Are you going to ask me about my debt?
Yes. Any good financial plan includes a discussion of how much someone owes.
Can Luthuli Capital ensure discretion and confidentiality in managing my affairs?
What are my odds of reaching my goals and what are the risks?
It’s important that your advisor be thinking about the ultimate goals of your portfolio and the probabilities of reaching those goals. We want our clients to understand how certain conditions will change their financial independence date and the annual amounts that they will have available to spend during retirement.
What is financial independence?
When you think about wellness, consider the effect it can have on your body and on your balance sheet. While there is nothing more important than good health, a sound retirement strategy can give you the potential for the financial future you want and deserve.
How do we begin working together?
We transition the management of your financial affairs in accordance with your specific needs and expectations. We will dedicate as much time as your situation requires while respecting your privacy and availability. Contact us today for a consultation.