Investment Newsletter (and related info)
April 2008
Market Background
Markets has been fairly volatile the couple of months due to the financial crises in
developed markets, global imbalances, high food and oil prices internationally and
slowing growth in the US and other developed countries.
The market recovered since, driven largely by Resource stocks (up close to 20%). From the market low in January the Resource Index has climbed close to 40% on the back of a weaker rand and continued strong commodity prices, while the Industrial Index (up 11.6%) and Financial Index (up 6.3%) have lagged on the back of a deteriorating local environment.
Investing tips for tough times
Locally
Volatile markets like the ones we're experiencing now (not only on the JSE but globally) make investment planning very difficult.
Successful investing is not only about making the right choices at the right time, but having the conviction to ride out the bumpy times.
Resources are currently driving the local market, the drag being the Financial sector.
Even if the Satrix Top40 Exchange Traded Fund basket contains a large slice of resource companies, the Top40 seems a safer bet for passive investors.
With the Satrix Investment Plan, you can enjoy access to an efficient, flexible and transparent product from as little as a R1 000 once-off lump sum and/or R300 a month via debit order.
Click here for more information.
Increase your options, invest offshore
Local investors are often urged to diversify offshore, and now seems an opportune time to look at developed economy shares.
db x-trackers (Itrix) is the easy way to invest in offshore funds, from only R1 000 lump sum and/or R300 a month via debit order.
The Deutsche Bank Exchange Traded Funds, db x-trackers (backed by a JSE guaranteed settlement) currently offers:
DJ EURO STOXX 50 Index ETF
FTSE®100 Index ETF
MSCI USA Index ETF
MSCI Japan Index ETF
MSCI World Index ETF
Click here for more information.
Return on preference shares now even better
Who should invest in Preference Shares?
Investing in preference shares is an attractive option for affluent clients who are usually more tax-sensitive.
Tax Free dividend income on listed preference shares improved even further with the latest interest rate hike. It compares with a before tax interest income of between 19% and 23% per year for individuals who pay 40% marginal tax. More what can be earned with interest on the money market.
Asset managers such as Coronation offer prospective investors the opportunity of investing at very low cost via a special unit trust investing in preference shares.
Click here for more information.
Saving in tough times
With electricity increases, high interest rates, rising fuel prices and high inflation:
Save now on Car and Household Insurance direct from the Insurer.
Hollard Pay As You Drive
A South African first.
Pay As You Drive ™ is a personalised motor insurance policy where your PREMIUMS are based on your MONTHLY MILEAGE. Making Pay As You Drive ™ the FAIREST and most accurate, fully comprehensive motor insurance around!
Big savings are yours if you travel less than 25 000km's a year (that’s 2 083km’s a month, 480km’s a week).
- If you drive less, you pay less. It's that simple.
- Another sorted solution from Hollard Insurance.
It works just like your cell phone contract, where you pay a monthly fee, you also get free minutes and when you’ve exceeded your free minutes, you start to pay for your calls.
Click here for more information, complete a short form and a Hollard consultant will phone you for a quotation!
Car Insurance| Home Insurance| Business Insurance
AUTO & GENERAL offers car insurance, home insurance and business insurance with unsurpassed benefits.
Auto & General Benefits
- No paper work, all business conducted telephonically
- Call us 24 hours a day, 7 days a week
- Call back within 15 minutes
- Approved panelbeater repairs life time guarantee
- Premium guaranteed for 12 months
- Free vehicle accident and breakdown services
- Free legal advice
- Reduced premiums for retired clients
- Cash Back Policy
- Emergency medical evacuation and treatment
- Trauma support and counseling
- Free home contents cover
- Free buildings cover
- Specialized 4x4 or 4x2 with diff-lock off-road vehicle insurance policy
- …lots more
Get an online quote, complete this short form and get a one minute e-mail quote.
Sanlam Home Loans
Are you paying Prime less 2% on your home loan?
You are paying too much!
Complete a short form to see if you qualify for our Special Concession Rate: Prime less 2.25%
Whether you already have a mortgage bond registered with another financial institution or whether you need a new homeloan, just consider the benefits of a home loan through Sanlam Home Loans:
Apply online here!
Debt consolidation for Homeowners
Have the Banks rejected your homeloan application?
Need Debt consolidation?
Are you an existing Home owner needing a loan or homeloan?
Are you a Homeowner who:
Has debt like Credit Cards, Retail accounts, Motor Vehicle accounts, overdrafts, short term loans etc.
Has credit bureau listings commonly referred to as ITC listings (bad credit record)
Want to consolidate all your debt
have residual or free equity in your home
Apply online here!
Funeral assurance.
This is one of the most popular types of assurance and is aimed a providing a benefit to cover funeral costs.
Previously the Doves Funeral Plan was only available to groups (large) of employees. The Doves Funeral Cover in now available through direct online application for individuals and their families.
From as little as R20.00 per month The Doves Funeral Plan also offers you the flexibility to add extended family members to the base policy. These include parents and parents-in-law, brothers and sisters, not legally adopted children and uncles and aunts.
Click here for more information
Types of Pension Funds in SA today
There are essentially four types of pension funds/schemes currently in SA.
Pension Funds
Provident Funds
Retirement Annuity Funds
Preservation Funds
While all of these funds are generically termed pension funds, they each have unique characteristics with reference to taxation on contributions, election of board members, withdrawal benefits, retirement benefits etc.
Click here for more information
