Fisher Dugmore Financial: Providing the Roadmap to Destination Wealth

In the ever-changing world of wealth and financial management, the onset of the deadly Covid-19 pandemic has delivered a fresh set of challenges for those at the top of the industry to meet. In South Africa, where financial advisory practices have been extremely successful, it still feels like more could be done to help people achieve financial freedom and drive involvement from a wider segment of society. The 2017 Old Mutual Savings & Investment Monitor found that just 13% of employed South Africans in the country’s major metros have any form of relationship with a financial advisor. In the same year, a report from Boston Consulting Group found that South Africa was one of the world’s most distrusting countries when it comes to the formal banking sector. In March 2020, when the country quickly moved into a stringent lockdown, even those with traditionally stable incomes had the revaluate their financial position. For advisors, largely shielded from economic shocks, this resulted in a direct impact on earnings. Only the very best managed the continue unscathed.

For Dave Fisher, Director of Fisher Dugmore Financial – a boutique planning service that goes beyond just traditional financial advice – the past 18 months have been bittersweet.

ROLLERCOASTER

“There are two sides of our business,” he begins. “We deal with clients who have already amassed wealth and are just about to retire or have retired. On that side, we have grown a lot. We have a lot of new clients and a lot of new assets under management, and our clients’ portfolios have done very well.

“The other side is dealing with people who are still busy creating wealth and not yet living off their portfolios. On that side, people have been affected because of lockdowns and slowdowns in economies. People’s incomes have been impacted and some industries are still suffering.

“We are still advising those clients and taking care of their financial plan; it’s just that, in the financial services arena, our income is directly linked to the income and wealth of our clients.”

He uses the example of the South African orthopaedic surgeon. Pre-Covid, someone in this space would have a long list of patients waiting for elective surgical appointments. But as the impact of the pandemic became clear, medical personnel were ordered to halt regular activities and focus only on the resultant Covid-sick. Schedules were torn apart, and this is damaging for income. “They would have gone from a decent income to nothing overnight, and remaining like that for a number of months. The continued movement in and out of lockdowns exacerbates that uncertainty. The guys still need the coaching and advice but their contributions towards investments, insurance and pensions drastically decrease in the short-term.”

But, far from worried about the future, this seasoned wealth expert is happy with the performance of his business. Shortcomings in one area have been more than balanced in others. In August 2018, Dave Fisher told Enterprise Africa that he and partner Andrew Dugmore would look for opportunities to grow the business while maintaining the boutique, family feel within the business. “Banks can offer investments and insurance etc for clients, but they don’t do it on a personal level like we do,” he said.

Using the close links and intimate relationships, built with clients and suppliers over many years, Fisher Dugmore has been able to develop exciting new products that have buoyed the business recently.

“In 2018 we had just started with Fisher Dugmore Securities which is our investment arm. That has expanded greatly and we have launched our own branded unit trust funds. We have a fully-fledged in-house investment team with assistance from Analytics Consulting. We are launching our first international fund shortly where we will register our ICAV (Irish Collective Asset-management Vehicle) in Dublin. That will be handled out of Mauritius,” says Fisher.

“We have grown with a number of new certified financial planners in the business and that is great. We are still busy, we still have the clients, and business growth has been good.”

DIGITAL HANDSHAKE

The major change for Fisher Dugmore to navigate, and one which financial advisors globally have been battling with, is the switch to digital communication. Face to face builds trust, meeting in the same room cements belief, a handshake breeds confidence, and looking into the eyes of the person that will manage a large sum of money on your behalf generates faith. Each element is vital in a financial decision that could impact your present and future wellbeing.

However, improvements in software have allowed for better, more reliable communication, and adding video to calls has been a game changer.

“If you asked me in 2018 if it was possible for our business to go total virtual, I would have said no,” admits Fisher. “There has been forced adoption and people embraced it. It is now the norm and people are comfortable with online instead of physical. I expect that we will get back to a physical approach but it might be a 50/50 split. We have onboarded a few clients during this time that we have never seen physically.”

The disruptive impact of FinTech is well documented in the banking sector, but communication and trust building is not something which can be easily replaced. In fact, South Africans report distrust in faceless, cashless transactions as the third largest objection to taking up a digital financial future. But in Africa, where mobile money is becoming more prevalent, there is an expectation that technology will be a main driver of financial inclusion and financial management, if not now then soon.

“Historically, when people adopt new technology, behaviour, platforms, or behavioural patterns, they never go back,” says Fisher.

“Digital is certainly more effective. You fit a lot more in with digital meetings. Productivity is certainly improved. From a communication perspective, although we have all the technology, face-to-face is always better.

“We will certainly look at a balance, and the great thing for our business is that we have longstanding relationships with clients because of the years of face-to-face, so it is easy to work online with them,” he adds.

 DESTINATION W­­­­EALTH

For Dave Fisher, the method of communication with clients, whether digital or face to face, are secondary in importance to the message delivered. More than 30-years in the financial planning industry has helped the entrepreneur to develop a tried and tested method for improving an individual’s financial situation. He has listed the strategy in his book, published in 2020, Destination Wealth. First and foremost is understanding financial context.

“Your financial context explains every money decision that you’ve ever made or ever will make – to budget or not, to invest or not to invest and so forth. Our financial context sets the stage for the level of wealth that we’re comfortable with and are able to attain and, more importantly, what level of wealth we keep,” Fisher writes.

By coaching in a way that aims to improve financial context – something which everyone can achieve – Fisher Dugmore Financial has developed a reputation as more than a reseller of products and policies, but as masters of wealth navigation. In challenging times, the knowledge on offer is more valuable than ever before.

“When things are going badly, people need a shoulder to lean on. We are now extremely busy and our diaries are extremely full,” details Fisher. “I had a lot more appointments in 2020 compared to 2019. Online capability made it possible and we don’t have to see clients in the board rooms. Zoom, WhatsApp and Teams meant that we could fit in double the meetings and that was fortuitous because there was a massive need for people to consult with us and gain clarity and assurance in the short-term.”  

By setting out the company’s map to Destination Wealth, clients are immediately on a journey, one which requires discipline but brings excitement.

“Destination Wealth has become Fisher Dugmore’s manifesto and it speaks to the way we deal with clients. We do a lot of life planning and we have a way we deal with clients there. It’s about setting goals to ensure they achieve the things that are really important to them. Then there is the basic method of financial planning which is the same. We have fine tuned the idea, and we continue to fine tune it. The book anchors our principles.”  

Both Dave Fisher and Andrew Dugmore encourage clients and potential clients to read the book, which unveils secrets from the industry that are not always public knowledge.

“We ask new clients to read the book to inspire, encourage and explain the way we work. It’s a massive boost for credibility as it creates a level of understanding and allows clients to understand my story. We have amazing reviews of the book from around the world so it has become a tool for the business,” admits Fisher.

BOUTIQUE BUSINESS

With the onset of the fourth industrial revolution, major investments into ESG and megatrends, ongoing switches to novel FinTech solutions, and a dwindling list of people qualified to advise individuals on management of their wealth, the future is exciting for Fisher Dugmore. The ethics and care woven into the business over the years are proof that the true end goal for the business is the financial success of its clients, whatever that may look like for each individual.

“We are building the business and changing it to become more boutique. We are heading towards being the family office for people who traditionally wouldn’t qualify for the family office. Everything that we do is about our manifesto. We have invested a lot in the last three years by starting our own funds. It gives a boutique feel. We have a unique way of looking at people’s financial advice and their strategies. We continue to build cost-effective, boutique solutions for our clients so they are never considered run of the mill,” says Fisher.

Right now, when Covid and a myriad of contributing factors have greyed the landscape for those in search of financial freedom, Fisher Dugmore is open and ready to assist. Here you will receive proven, tailored, expert advice.

“It’s obviously been a hectic time. I don’t think anyone has been spared. Personally, we are well, our staff are well but we did lose a few clients to Covid. The impact on the economy does filter through to us.

“We are here and we are more able than ever to offer clients a holistic view on their financial plan. We have a totally different way of doing it that brings life plans, investments plans, and financial plans all wrapped in one, in a unique way,” Fisher concludes.