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In this issue:
listed property still beating equities
SOUTH AFRICA&S R125bn listed property sector continues to surprise on the upside, a clear indication investors are still chasing cash flow. In fact, property stocks have delivered far better returns than any other asset class, both for the year-to-date as well as over 12 months. Figures from Catalyst Fund Managers show the JSE&s 18 property counters delivered an impressive total return of 29,9% for the 12 months to 31 October, way ahead of the 18,31% of general equities (Alsi) over the same period. Bonds (Albi) and cash clocked up total returns of 16,77% and 7,12% respectively for the 12-month period.
For the year to date, listed property&s total return was 27,41% compared with the Alsi&s 12,55%, while bonds and cash lagged at 15,25% and 5,81% respectively.
Reasons to buy property stocks
The JSE's R95bn listed property sector has posted a strong rally in recent weeks and remained a better bet for income chasers than cash, bonds or equities, real estate analysts have said. The SA Listed Property Index (SAPY) delivered a total return of 7.84% in July following negative growth of -2.98% and -1.81% respectively in May and June, according to latest figures from Cape-based Catalyst Fund Managers.
This means that the total combined return for the sector has increased to 5.41% for the year to date (January to July).
Listed property stocks also offer a higher initial yield than other income-focused investments such as bonds and cash. Forward yields on listed property are currently sitting at 10% while bonds and cash are at 9% and 8.5% respectively.
Property stocks were still expected to record an average 7% to 8% growth in the income they distributed to investors over the next 12 months, despite an uptick in vacancies and rental arrears, she said.
Courtesy of Joan Muller: Finweek (http://www.fin24.com/Finweek/)
Read more on how to invest in JSE Listed Property: Listed Property Index Tracker - Proptrax
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Preservation Funds
Resigned or Retrenched?
Resigned or Retrenched?
Preserve your pension money Tax Free.
Preservation funds are designed to act as a temporary warehouse for withdrawal benefits
from registered and approved pension or provident funds
Preservation Funds
A preservation fund is a pension or provident fund, which has been registered with Registrar of Pension funds and approved by the SARS.
- It is a fund in which employees, who leave the service of a participating employer owing to dismissal (including retrenchment) or resignation, or in the event of the dissolution of the employer’s pension or provident fund, may invest their accrued fund benefits.
- A member’s accrued benefit in a specific provident or pension fund may not be transferred to more than one preservation fund, but the benefits may be divided between a preservation fund and an RA fund.
- The following are retained (preserved) in a preservation fund until retirement:
- Accrued retirement benefits
- Completed years of service
For Expert Advice on transfers from Pension/ Provident Funds Tax Free to Preservation Funds: Preservation Funds Advice
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Crunch Time for Medical Schemes and Members
Your medical scheme membership fees have gone up again, what now?
| Medical Scheme |
Average Annual Increase 2011 |
Average Annual Increase 2010 |
Average Annual Increase 2009 |
| BESTmed |
11.41% |
12.82% |
12.95% |
| Bonitas |
9.80% |
15.90% |
12.47% |
| Discovery |
7.90% |
9.80% |
12.80% |
| Fedhealth |
9.80% |
15.90% |
12.90% |
| Genesis |
9.50% |
9.90% |
|
| Liberty Health |
13.70% |
10.40% |
12.90% |
| Medihelp |
15.50% |
13.60% |
6.10% |
| Medshield |
9.50% |
15.0% |
13.60% |
| Momentum |
9.70% (risk)
7.90% (total)
|
11.60% |
14.38% |
| Resolution Health |
8.60% |
12.80% |
14.05% |
| Topmed |
10.89% |
9.30% |
16.70% |
This is a question many younger, healthier people are asking, especially those who are buckling under bond and car repayments on top of other expenses.
It is very important to “insure” your health. Accidents can happen and your health is also unpredictable. If you cannot afford comprehensive cover, it is recommended that you choose a basic hospital plan.
It is that time of year again when medical schemes announce their average increases for the next year. Once you have received the new information from your medical scheme, you need to consider your options carefully.
Review your own personal needs and basic requirements. Are you still single or have you got married? Do you have children or not? Do you perhaps have a new chronic condition? By when during the year were your savings depleted? Do you have any procedures planned for 2011?
Should you:
stay on your current option;
change to another option within the scheme, or
change to another medical scheme?
Free Online Medical Aids Comparative Quotes
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