mombasa trustees training presentation · 2019-08-23 · mombasa trustees training presentation...

Mombasa Trustees Training Presentation

8/19/20191

www.enwealth.co.kewww.enwealth.co.kewww.enwealth.co.ke

Our why :A Dignified Retirement

Life for All

Our how :Enriching Lives through innovative social security financial services

Vision & Mission


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


Our Values

Integrity

Fairness

CreativityExcellence

Passion

Empathy


Products and Services

Fund Administration

Services

Retirement Benefits

Consulting Services

Retirement Benefits Training Services

Insurance and

Brokerage Services

Corporate Trustee Services

Property

Services


Custodian

Scheme Administrator

Scheme/Trustees

Fund Manager

Others (Actuary, Auditor, Legal advisors, etc.)

Retirement Benefits Authority

SCHEME GOVERNANCE – REGULATORY MATRIX


Our Philosophy


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


Quote

"Even if you're on the right track,you'll get run over if you just sit there."

- Will Rogers


The Change


Knowledge Capital Vs Wealth Accumulation


Decumulation


What is your Net-worth


The Need ( The Why)

Financial stability

Promote

Savings

Culture-

Member

Education

Growth on

investment

through

income

Tax

exemption

Safety of

Investments


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


Risk vs. Return


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


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%


Comparison of Commercial Office Performance – Different Cities

Source : Cytonn Report


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%


The Entrepreneurial


Shared Values


Family Wealth

www.enwealth.co.kewww.enwealth.co.kewww.enwealth.co.ke 26

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%


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.


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%


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?


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


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.



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.



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.



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.



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.


Effective listening

“Listening is not understanding the words of the

question…listening is understand why the question

was asked…”


effective listening


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


The Five Waves of Trust


Self-Trust


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


▪ 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


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]

Website : www.enwealth.co.ke