Meet Carl Lategan, Head of IFA Distribution at Allan Gray 

How did you get involved in financial services – was it something you always wanted to do?  

I was very fortunate growing up to have a dad who worked in the financial services industry, and he encouraged and taught me to follow certain money-wise principles from a young age, such as budgeting, the benefits of starting to invest early, and the value of time in investing. His influence piqued my interest in the sector. At the time (the late 1980s), the industry was dominated by life assurance companies, and I started my career at Momentum. My very first job was to send the regional offices faxes for outstanding medical requirements for clients being underwritten by the underwriters. I studied, learnt new skills on the job and fulfilled various roles in the business before moving into the world of investments when I joined Momentum Wealth. After 11 years, I left Momentum to join Allan Gray in 2001. 

What was your first investment and do you still have it? 

My first investment was a retirement annuity that I started when I was 20 years old, and I still have it to this day. 

What have been your best – and worst – financial moments? 

Some of the best moments I have experienced over the course of my career have been seeing clients invest early enough, stay the course to see the benefit of their investment over time, and build long-term wealth. It’s great to see that what we do as a business delivers for our clients and that we get to play a role in providing insights that are crucial to making good financial decisions – that’s rewarding to me.  

On the flip side of that, the worst moments stem from people making poor investment decisions – be it chronic switching, chasing the next big investment or investing in ‘get-rich-quick’ schemes – that ultimately erode their wealth. 

What are some of the biggest lessons you have learnt in and about the finance industry? 

I have learnt many lessons but a few that stand out are the following: We work in a close-knit industry that is centred around people and building trust and relationships. If one doesn’t have a passion for people, one might find the industry challenging. 

I’ve also learnt the importance of conducting yourself professionally, with competence, and putting clients first, always. Building a reputation in the financial services industry can take years but it can be destroyed in a moment, so it is prudent to protect your reputation. Lastly, the financial services industry provides those who work in it with a wonderful opportunity to build a career that adds significant value to clients. 

What makes a good investment in today’s economic environment? 

For me, a good investment is investing in great financial advice. I have seen, and experienced firsthand, the impact of good independent advice. This is not about making a call on what the best investment instrument, share or market will be, but rather to establish the financial goals you want to accomplish, to put a strategy together to accomplish it over time, and to stick to your strategy. Having an independent financial adviser to act as your financial coach and a thinking and accountability partner is invaluable. 

What finance/investment trends and macroeconomic realities are currently on your watchlist? 

Although we are bottom-up investors at Allan Gray, it is nevertheless important that we stay abreast of local current affairs and global macroeconomic views. This is especially true now, coming off the back of a year where half of the world’s population voted, as the outcome of these events and the knock-on impact affects where we invest and how our portfolios are constructed to achieve long-term returns. 

For me, it is also vital to stay on top of regulatory changes and how these impact the independent advice industry, so we can respond and guide advisers appropriately. 

What are some of the best books on finance/investing you’ve ever read?

Outliers by Malcolm Gladwell, The Psychology of Money by Morgan Housel, Good to Great by James C. Collins, The E Myth Revisited by Michael E. Gerber, and Same as Ever by Morgan Housel.

The Psychology of Money is one of the most meaningful and insightful books I have read about money, whether it is about making it, growing it or keeping it. It talks to the behaviour and discipline you need to display to become successful in growing your wealth over time. It also explains our relationship with money, our beliefs, and that creating wealth over time is not only about making good investment decisions, but also about your behaviour once you have.