Investment Newsletter (and related info)
September 2008
Satrix Managers has been in negotiation with Automated Outsourcing Services (Pty) Ltd (AOS), which administers the Satrix Investment Plan through an outsource agreement with Satrix, to reduce the annual management fees paid by clients in the Investment Plan.
Satrix are now happy to announce that, with effect from 1st September 2008, there will be a meaningful reduction in fees.
On a weighted value basis, the average fee falls from 1,0% to 0,7%. From 1st September 2008, all clients accounts will be automatically switched to the lower annual management fee structure.
Read more about Satrix reduction in fees
Investment Plan fee versus competitive products
Certain investors have queried the relative competitiveness of purchasing Satrix securities through the Investment Plan platform compared with other platforms, such as linked service providers (LISPS), who offer investors similar collective investment schemes based products.
Read more about Satrix versus other products
SA property fundamentals remain solid
The jury may be out as to when interest rates will peak, but experts agree that when they do, it will be the best time to buy property unit trusts.
Analysts had been expecting another interest rate hike during August, but most have done an about-turn and are now forecasting that they will stay unchanged.
Forecasts for the first interest rate cut are also being brought forward, with some calling it as early as June next year.
“Notwithstanding the inflation rate debate,” comments Craig Hallowes spokesperson for the Association of Property Unit Trusts (APUT), “it looks like a good buying opportunity for property unit trusts (PUTs), which are showing excellent value at the moment. Courtesy ITI News
Read the full article: Property Unit Trusts
Preference Shares: Best asset class of 2008
THE PRICES of listed preference shares have increased by around 15% over the past six weeks. That dramatic improvement and the excellent cash dividend yield of between 12% and 14% that investors earn on prefs in any case make this the best asset class so far for 2008. It's amazing to think that in the midst of an environment of huge resources shares and a First World financial sector, a modest product such as listed preference shares is the best place to park your money.
The dramatic increase in the prices of prefs was brought about by the change of perception regarding inflation prospects about two months ago. The negative mood then - when the inflation rate rose sharply to above 10% and producer prices were heading for a 20% increase for the year - has made way for renewed confidence that the inflation rate, and therefore also interest rates, could again fall.
The trigger was presumably the drop in the price of crude oil and the latest prospects that petrol and diesel retail prices would drop by as much as 100c/litre at the start of September.
For old investors who had to look on despondently over the past few years at the constant fall in the prices of preference shares, while every adviser who knows anything about the product tried to talk the prices up, the increase is excellent news. Their capital losses over the past three years have been nearly wiped out within six weeks.
For other investors, especially those dependent on an income, who haven't yet bought preference shares it's still not too late, says Sasfin's Elan Levy. He's also the compiler of the graph, showing clearly the increase in the prices of pref shares. He says it's not too late to buy.
Levy's price index starts in June 2006 on 100. A few weeks ago it fell to below 75. Now it's recovered to 85. However, the correct or deemed value, as he calls it, is probably closer to 100, as it was in 2006.
The current dividend on A class shares, such as those of SA's Big Four banks, is still above 11%, while investors slightly lower down in Sasfin and PSG can enjoy a 13,5% dividend yield. That's equal to an interest income of around 20%/year for individuals with a marginal tax rate of 40%. Courtesy Finweek – Vic de Klerk
Read more on Preference Shares and how to apply
Absa Small Business Employees Provident Fund
The unique Provident Fund that offers small business institutions and their employees retirement, withdrawal, death and funeral benefits in one package.
Benefits for the employer
- Retain your valuable employee
- Tax deductable
- Peace of mind
- Transferable benefits
- Ease of payment
Benefits for the employee
- Retirement Benefit
- Resignation Benefit
- Death Benefits
- Total and permanent disability
- Accidental Cover
Read more and how to apply: Absa Small Business Provident Fund
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
Debt consolidation for Homeowners
Preferential rates and conditions on Car and/or Household insurance
PSG Konsult Short-Term Insurance, (underwritten by all the major short term companies), offers preferential rates and conditions on Car and/or Household insurance.
They regroup those clients who have a favourable claims experience in such a way that they would not be affected by the claims experience of the insurer
Their clients form part of a special scheme. Every potential client is evaluated according to his risk profile, thus they are enabled to obtain a quality client base which means that they can negotiate the best rates for their clients with the underwriter.
Get a quote: PSG Short-Term Insurance
Taxation Laws Amendment Act No 3 of 2008 (“the Act”) was revealed on 22 July 2008.
Please Note: If any Amendments may affect out retirement funds, rule amendments can be necessary before giving effect to amended legislation.
- New taxation laws, a brief summary which effects:
- Retirement Annuities
- Preservation Funds
- Living Annuities
Read the Brief summary for some of the provisions of the Act.
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