WGA Wealth Group

01/05/2026

Diversification – Friend or Foe?
Einstein famously referred to the principle of compound interest as the “8th wonder of the world”. However, the power of compound growth can be severely disrupted when markets experience sudden shocks.
We do not have to look back very far. During the recent conflict involving Iran, which escalated on 28 February 2026, global markets experienced significant volatility. From the start of the market weakness until the recovery phase began in mid-to-late March 2026, the approximate peak-to-trough declines were as follows:
• S&P 500 -8% to -9%
• Nadaq composite -10% to -11%
• DAX -7% to -9%
• FTSE 100 -5% to -7%
• Euro Stoxx 50 -8% to -10%
• FTSE/JSE Top 40 -6% to -8%
• Hang Seng -11% to -14%
The picture painted by these numbers is clear: markets can decline sharply over a very short period. Investors who were forced to retire during this time could have seen the equivalent of several years of retirement savings growth disappear almost overnight.
Fortunately, markets have since recovered strongly, reinforcing the importance of staying invested and remaining disciplined during volatile periods.
This once again highlights the importance of diversification in reducing overall portfolio risk.
If we compare the above market declines to a well-diversified balanced fund such as the Allan Gray Balanced Fund, the pullback was materially lower — approximately -4% to -6% over the same period.
The main reasons the Balanced Fund held up better included:
• Diversified asset allocation
• Lower net equity exposure
• Cash and bond holdings
• Active downside management
So, how should investors diversify a portfolio?
• A combination of different asset classes aligned with the investor’s objectives
• Exposure to different geographical regions and markets, as they do not all react the same way during crises
• Exposure to currencies other than the ZAR to help protect long-term purchasing power
• A mix of investment management styles, as no single style performs best in every economic cycle
• The use of alternative investment instruments where appropriate
• Different investment “buckets” to separate short-term income needs from long-term growth capital
At WGA Wealth Group, we make use of model portfolios, among other solutions, managed by Portfolio Analytics and the Optimum Invest Group . These portfolios apply many of the diversification principles discussed above to help reduce overall portfolio risk. A case in point is that some of our portfolios decline by less than 2% during the same period.
It is my submission that diversification closely reflects the “8th wonder of the world” principle famously described by Einstein and that a professional should construct an investment portfolio in line with these principles.
For more information on our investment process and portfolio solutions, please feel free to contact us or visit our website

Growing & Protecting Wealth. We are financial and estate planning specialists for individuals and businesses with a focus strong focus on wealth creation.

10/04/2026

Schalk Oberholzer has proudly opened a second office in Oudtshoorn. Even more special, both of his sons have joined him on this journey, helping to grow the business to new heights. Well done Schalk🙌🙌



www.wgawealth.co.za

26/03/2026

Glimmers of hope amid escalating global conflicts.

Despite oil spike and inflation risks.

15/03/2026

I attended an investment seminar this week hosted by Optimum Invest Group, where we examined the war’s impact on the global economy and what it means for investors. Here are my key takeaways from the presentation and personal views.

No one knows how long the conflict will last, and we all hope for a swift resolution. World leaders are under intense pressure to find a solution, as the effects are global.

The immediate consequence has been a rise in oil prices, which feeds directly into higher fuel costs and, consequently, inflation. If the conflict ends quickly, oil prices should stabilise and inflationary effects will be limited. If it continues, inflation could accelerate and force interest rate increases in South Africa and worldwide.

Gold has dipped recently, though it typically acts as a safe haven in times like these and the price should increase. Asset managers are monitoring markets closely and will adjust fund allocations where necessary. The rand has also strengthened somewhat, offering relief for positions with foreign exposure.

Key takeaways:

Geopolitical actors are fuelling anxiety to influence negotiations.

Media and social platforms amplify negative headlines.

Misinformation and AI-manipulated images can exaggerate the situation and stoke panic.

Don’t panic — emotional reactions often lead to poor investment decisions.

Historically, markets have recovered after wars and have sometimes delivered strong returns even during conflict years.

Daily life and economic activity continue; opportunities to buy quality assets at attractive prices will arise.

What we recommend:

Existing investors: Stay invested and allow asset managers to do their work. Our diversified approach across asset classes, managers and geographies is designed to reduce risk.

New investors: Falling unit prices present compelling entry points. Consider phasing new investments over 3–6 months to mitigate uncertainty.

If you’re unsure about your investments, avoid reacting to rumours — reach out and we’ll help you assess the best course of action.







www.wgawealth.co.

Growing & Protecting Wealth. We are financial and estate planning specialists for individuals and businesses with a focus strong focus on wealth creation.

28/02/2026

South Africa’s 2026 Budget

Key Highlights and Opportunities
Finance Minister Enoch Godongwana has delivered what may be his strongest budget yet. The announcement includes the scrapping of approximately R20 billion in planned tax increases, providing meaningful relief to taxpayers, small businesses, and investors. Supported by stronger revenue collections and improving public finances, National Treasury presented a noticeably more optimistic outlook than in recent years.

Key Highlights:
Tax Relief
• Personal Income Tax: Adjustments to tax brackets and rebates to offset the effects of inflation.
• Medical Tax Credits: Increased from R364 to R376 per month for the first two members and from R246 to R254 for each additional member.
• Capital Gains Tax Relief:
o Primary residence exclusion increased from R2 million to R3 million.
o Annual CGT exclusion increased from R40,000 to R50,000.
• Tax-Free Savings Accounts: Annual contribution limit increased to R46,000.
Business and Regulatory Changes
• VAT Registration Threshold: Increased to R2.3 million, reducing compliance pressure on small businesses.
Levies and Duties
• Fuel Levy: Petrol increased by 9 cents per litre and diesel by 8 cents per litre.
• Carbon Tax: Increased by 5 cents (petrol) and 6 cents (diesel) per litre.
• RAF Levy: Increased by 7 cents per litre.
• Excise Duties: 3.4% increase on alcohol and to***co products.
Wealth Planning and Offshore Investment
• Donations Tax: Annual exemption increased from R100,000 to R150,000.
• Offshore Allowances:
o The Single Discretionary Allowance has doubled from R1 million to R2 million per calendar year, allowing individuals to transfer more funds offshore without prior SARB approval.

Overall, the budget provides a combination of tax relief, increased investment flexibility, and moderate levy increases, creating new planning opportunities for individuals and businesses alike.


www.wgawealth.co.za

13/01/2026

Blend is your friend!

In today’s unsettled global investment environment, where inflation shocks, geopolitical tensions and unexpected policy shifts batter markets, a single-style approach to investing can leave portfolios vulnerable. This environment and its almost unprecedented levels of uncertainty has highlighted i...

23/12/2025

08/12/2025

WGA Wealth is proud to support our local community by contributing to a Charity Golf Day in Heidelberg (Cape Province) on 6 December. It was a privilege to be part of such a wonderful event!

15/11/2025

Internship Opportunity in Financial Planning – Mossel Bay

We are offering an exciting opportunity for a young, vibrant individual to join our boutique financial planning practice in Mossel Bay as a fully paid intern.

A three-year degree is required, and a qualification in financial planning—or progress toward a CFP®️—will be a strong advantage. Applicants must reside in the Mossel Bay area.

This internship provides an excellent starting point for a long-term career in the financial services profession.

Please send your CV to Mariné Janse van Rensburg at [email protected]. A shortlist of candidates will be compiled, and shortlisted applicants will be required to complete psychometric assessments.

If you have not received feedback by the end of November, please consider your application unsuccessful.

03/11/2025

Welcome to the Team, Cobus Lubbe!

It gives me great pleasure to welcome Cobus Lubbe to the WGA Wealth Group.
Cobus brings over 15 years of experience in the information technology sector, where he held a variety of roles with a strong focus on project management in his later years. While he enjoyed the technical and strategic challenges of IT, he ultimately realised he wanted his work to have a more meaningful and lasting impact on people’s lives.
This calling led him to transition into the financial planning industry nearly four years ago. As a financial advisor at Discovery, Cobus had the privilege of helping individuals and families making informed financial decisions — reducing risk while building long-term financial security.
With his strong analytical background, Cobus approaches financial planning with precision and purpose. He is detail-oriented, data-driven, and deeply committed to creating structured, personalised financial plans that truly make a difference. His passion lies in empowering clients with the right tools and strategies to strengthen their financial well-being and enhance their overall quality of life.
We’re thrilled to have you on board, Cobus — welcome to the WGA Wealth family! 👏

01/10/2025

Business update

We are thrilled to announce the appointment of Mariné Janse van Rensburg as our new Head of Operations.

Our business has experienced tremendous growth in recent years, creating the need for this important role. Mariné holds a BCom Honours degree in Financial Accounting and brings valuable experience in Accounting, as well as her most recent role as a Business Consultant at Momentum. She is also a director of WGA Wealth.

Her expertise will play a key role in ensuring the smooth running of our operations and supporting the continued expansion of our business.

A warm welcome to Mariné — we are excited to have you on the team!