IOL Personal Finance -​ 1st Quarter 2022

COVER STORY

Dealing with debt

These are the different options open to you, depending on how much you owe and what legal steps have already been taken against you by your creditors. 8

38 How to do long term “Long-term thinking is easier to believe in than accomplish”

40 When a hobby becomes a business A warning not to overcommit financially when monetising your passion

42 When it comes to trust administration, SARS is your friend SARS in this instance doesn’t mean what you think it means

44 Intellectual property is an asset in a deceased estate This intangible asset is often overlooked in estate planning

46 How changes to VAT affect compliance among small firms Why VAT increases may have the effect of reducing revenue

REGULARS

2 Upfront Staring debt in the face

4 Book review Books on financial topics

6 Your letters

Readers’ queries answered by experts

48 Millennial view Are you in business?

50 Ombud case file Insurance, advice and retirement fund disputes

52 Fund focus Kagiso Islamic Equity Fund

54 On the contrary Investment lessons from the pandemic

DATABANK

55 A list of the adjudicators and the ombuds who can assist you with your complaints, followed by the unit trust quarterly results, tax rates and annuity rates

MARTIN HESSE

STARING DEBT IN THE FACE

According to the Debtbuster’s Debt Index for the fourth quarter 2021, more and more South Africans are turning to debt to cover their ever-increasing daily expenses, and as a result are getting into deeper and deeper financial trouble. Blame the coronavirus and the struggling economy, but also blame our irrational regard of debt as instant cash, with a total disregard for the consequences.

Well, you can use debt to finance your spending only up to a point. In the end, it will catch up with you, and the retribution is savage. High finance costs, debt collection costs, legal costs, not to mention the impairment of your credit record.

If you have reached that point, or if you want to turn the situation around before you reach it, there are a number of options open to you. You need to carefully weigh each one before deciding on a course of action. Our article on page 8 spells out what your options are and the pros and cons of each.

How cryptocurrencies perform in the future, and the role they will assume in our lives, depends to a large extent on how governments will deal with them. They may be decentralised, but don’t be fooled: nothing is beyond a government’s control. If cryptocurrencies are increasingly used for nefarious purposes, such as money laundering, no government, no matter how progressive, is going to remain quietly on the sidelines. Read Anna Rich’s well-researched article (page 14).

Among the diverse array of good financial reads in this edition are Gareth Stokes’s assessment of the blow to our insurance sector inflicted by last year’s catastrophic riots in KwaZulu-Natal and Gauteng (page 27); a profile of Ryan McCaughey, the FPI’s new Financial Planner of the Year; and an entertaining summary of a presentation on long-term investing at last year’s Allan Gray Investment Summit by investment guru Morgan Housel (page 38).

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PERSONAL FINANCE CONGRATULATES THE RAGING BULL AWARD WINNERS FOR PERFORMANCE TO THE END OF 2021

MANAGER OF THE YEAR AWARDS

South African Manager of the Year

Ninety One

South African Manager of the Year – 2nd Place

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South African Manager of the Year – 3rd Place Coronation Fund Managers

Offshore Manager of the Year

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RAGING BULL AWARDS

STRAIGHT PERFORMANCE OVER THREE YEARS

Best South African Equity General Fund Counterpoint SCI Value Fund

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Best (SA-Domiciled) Global Equity General Fund

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Best (FSCA-Approved) Offshore Global Equity Fund

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Thanks to our data providers

RISK-ADJUSTED PERFORMANCE OVER FIVE YEARS

Best South African Equity General Fund on a Risk-Adjusted Basis

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Best South African Multi-Asset Equity Fund on a Risk-Adjusted Basis

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Best (FSCA-Approved) Offshore Global Asset Allocation Fund on a Risk-Adjusted Basis

Sarasin IE Multi Asset Strategic Fund

Demystifying Trusts in South Africa

Trusts in Practice – a Reference Guide

(Second Edition)

Author:

Phia van der Spuy

Publisher: Phia van der Spuy

Retail price: R1 295

(order from Red Pepper Online)

Also available as an e-book (Amazon)

Through her own e orts to nd out everything she could about trusts after a client going through a divorce asked her for help, Phia van der Spuy has become one of the leading authorities on trusts in South Africa. Her reference guide, rst published in 2017, has become a bible for nancial planners, duciary practitioners, trust owners/founders and trust bene ciaries, because it answers just about any question anyone would have on this complex and often misunderstood subject.

Van der Spuy is a chartered accountant with an MCom degree in local and international tax. A member of the Fiduciary Institute of Southern Africa, she is a registered Trust and Estate Practitioner, Fiduciary Practitioner of Southern Africa and Master Tax Practitioner. She is the founder of Trusteeze, a company that o ers a digital solution to the management of trusts. She also publishes regular trust columns in the Personal Finance and Business Report newspaper supplements.

Trusts have been used in the past for tax avoidance, and in this respect the South African

TRUSTED BOOK ON TRUSTS UPDATED

Revenue Service (SARS) has tightened legislation in recent years.

Van der Spuy writes: “It has become apparent that SARS treats trusts as the black sheep of the family of investment vehicles available to South Africans tax residents. They are well aware that a large portion of the country’s wealth is protected by trusts. Government is trying their utmost to steer people away from utilising trusts because they are struggling both to get a handle on the wealth protected in trusts and, furthermore, to administer trust taxes e ciently. The only certainty is that SARS will investigate trusts when they are misused and mismanaged. This book will guide you towards preventing such an attack.”

The book, which is written in language that is easy to understand by the lay person, has been updated to incorporate the most recent legislative changes surrounding trusts.

Importantly, Van der Spuy dispels common myths about trusts, which have caused many people to become sceptical about using them. These include: trusts only serve a purpose once you have created wealth; trusts are expensive to run; and you lose control of your assets in a trust.

If you are contemplating establishing a trust to protect your assets, or if you have been made a bene ciary of a trust and are unsure of your rights or responsibilities, Van der Spuy’s book is a must-have.

“If a trust is correctly structured and properly administered, you can have peace of mind that your and your family’s wealth will never be exposed, or at risk,” she says. - Martin Hesse

At Sanlam Investments, we’re on a mission to think bigger, look further and find smarter ways to grow our clients’ wealth, while investing in a more sustainable future. So the SIM* Resources Fund being acknowledged as the Best South African Equity Resources Fund** at the Raging Bull Awards on 1 February 2022 is a big honour for us. It’s just the encouragement we need to keep working hard to find investment solutions that make a meaningful difference to communities, our planet and our future. Investment solutions that help create a world where we all flourish, while ensuring a sustainable tomorrow.

YOUR LETTERS

WHEN TO CHANGE MY PORTFOLIO?

I am a novice investor who recently started investing in unit trusts and exchange-traded funds. I’m nding it very challenging to stick to my strategy in the current market environment. How do I know when to make changes to my investment portfolio?

retirement planning, risk cover, short-term insurance, medical scheme, estate planning, as well as bene ciaries on policies and annuities.

Name withheld

Anet Ahern, chief executive of PSG Asset Management, responds:

Investors often do the most damage to their long-term wealth when they allow market volatility to derail their investment plans. As investment professionals, we have seen it all and understand that, most often, investors struggle to remain emotionally detached from their investments. Markets often produce contrary signals. No market recovery or trend ever moves smoothly in only one direction, and although the long-term trend in the stock market is generally up, there are many corrections, dips and periods of sideways movement along the way. This is exactly why the ideal portfolio should be able to withstand a multitude of conditions. It also helps to have a “sounding board” (in the form of a nancial adviser) that challenges you in a rational way and helps you to remain focused on the longer-term picture, even in the midst of market volatility.

FINANCIAL PLANNING AFTER A DIVORCE

I’m in the process of a divorce and am feeling quite overwhelmed by the nancial aspect of having to handle everything by myself. What can I do to make sure my future is nancially safe?

Name withheld

Magdeleen Cornellisen, financial adviser at PSG Wealth Pretoria, responds:

Those of us who have su ered the trauma of a divorce can certainly attest to the far-reaching impact it has on one’s nances. The outcome you had planned for yourself suddenly looks very di erent. That’s why it’s vital for us to plan and discuss our nances during such a life change. Your nancial adviser should support you in reviewing important elements of your nancial portfolio that need to be addressed, including your

An important aspect to assess is whether your retirement contributions are adequate in order to enable you to retire nancially independent. Another key element to consider when going through this process is your will and whether it will need to be updated.

As we grow older our perspectives on what is important will change. Talk to your nancial adviser about your goals, particularly if they’re not what they used to be.

DEALING WITH RETRENCHMENT

I’ve recently been retrenched and am feeling confused as to how to tackle this setback while still sticking to my nancial plan. Can you give me some guidance? Name withheld

Marguerite Marais, technical legal adviser at PSG Wealth, responds:

Due to the emotional nature of retrenchment, it’s imperative to reassess your nancial situation and take proactive steps with the help of a professional.

As a rst step, it’s important to understand your retrenchment package, and create a plan on how best to make it work for you. The famous saying goes: “If you fail to plan, you are planning to fail.”

Review your monthly budget, make a list of your expenses and assess what you can potentially cut back on. Once you have sight of this, readjust your nancial and saving goals based on what you can realistically a ord, even if it is only a temporary plan. While doing so, try to maintain your emergency fund and stick to your long-term saving goals as far as possible.

Make sure that you have a trusted “sounding board”, such as a nancial adviser, to supply guidance and input on what your various options are.

Once you’ve reviewed the nancial aspects of your a airs, the next step is to re-evaluate your skill-set and ability to nd a new job.

Note: These letters are selected from “Your Questions Answered”, a monthly letters feature in Personal Finance in the Saturday newspapers, sponsored by PSG Wealth.

Enjoy the fruits of a well-diversified portfolio.

The value of experience.

www.truffle.co.za

Truffle Asset Management (Pty) Ltd is an authorised Category I, II and IIA financial services provider (FSP No. 36584) (Date of Authorisation: 11/03/2009). Truffle operates independently from the Raging Bull Awards and is neither an associate or product supplier to Raging Bull. Full details and basis of the award are available from the Manager.

When it comes to long-term investment success, a portfolio’s composition is crucial.

DEALING WITH DEBT

Debt is likely to become a major problem in your life if you have let it spiral out of control, which can happen too easily, considering that compound interest works against you in the case of debt. Martin Hesse looks at the ways you can climb out of the hole, depending on how deep the hole is and how disciplined you are

If you have built up debt and are at the point where you have decided to – or are forced to – do something about it, there are various routes you can take, depending on the depth of your nancial troubles. Obviously, the deeper those troubles, the more drastic the action will

have to be.

An early intervention point might be when, while still being able to a ord to service your debts, you decide you want to live a more healthy life nancially and reduce your debt as much as you can. This would be akin to noticing that you have put on too much weight and you decide to reduce your weight and live more healthily by cutting out certain foods and increasing your physical exercise.

A widely recommended method at this point is the “snowball” method, whereby you target your smallest debt – typically the smaller debts have higher interest rates than the larger ones such as your vehicle and home loans. Once paid o , you use the money saved to pay o the next debt, and so on. The amount of money you have to pay o your debts “snowballs” each time you settle an account.

This article focuses on options open to you when your situation is more serious and you may be over-indebted. For one reason or another – your income may have decreased or your debt may have ballooned – you can’t a ord to keep up with your debt repayments and may be in arrears with some of them. Your creditors may have instituted legal action to retrieve what you owe them.

The National Credit Act describes “overindebtedness” as follows: “A consumer is over-indebted if the preponderance of available information at the time a determination is made indicates that the particular consumer is or will be unable to satisfy in a timely manner all the obligations under the credit agreements to which the consumer is a party, having regard to a) that consumer’s nancial means, prospects and obligations; and b) probable propensity to satisfy in a timely manner all the obligations under all the credit agreements to which the consumer is a party, as indicated by the consumer’s history of debt repayment.”

A bright uttering red ag signalling overindebtedness is when you have resorted to taking out more debt to service existing debt.

Whatever strategy you opt for, it is essential not to take on more debt – some of

them prevent you legally from doing so.

1. VOLUNTARY ARRANGEMENTS

If you are in arrears with a credit provider, the longer you put o taking corrective action, the worse the outcome will be, and the more it is likely to cost you in the long run, especially if the creditor takes legal action. Before the point at which your creditor hands you over to its lawyers, it is wise to approach the creditor, explain your di culties, and try to negotiate a “payment holiday” or a restructuring of your loan over a longer repayment term. While you may not have the negotiating power of a debt counsellor, for example (see below), the credit provider is likely to take into account the fact that you are proactively taking steps to remedy the situation. If you have multiple creditors, this will need to be done for each of them.

Will my credit record be a ected? If you have missed three or more payments on a debt and the credit provider has sent you a lawyer’s letter (a section 129 notice – see below, under “debt mediation”), this will negatively a ect your credit record. If you have not yet defaulted on any repayments, your credit record will not be a ected.

What costs are involved? No fees are payable on your side apart from a possible administration fee for restructuring your debt. Remember, though, that if the debt is restructured over a longer period, you will end up paying more in interest.

2. DEBT CONSOLIDATION

This involves using an existing credit facility or a new loan to consolidate all your smaller debts into a single large debt.

A popular method is to use your home loan. You will need to have built up equity in the home loan (the di erence between the total loan amount and what is still owing), which you can then access, depending on the type of loan.

If you are unable or unwilling to use a home loan for this purpose, several banks o er consolidation loans, whereby the bank will repay your creditors (they need to be registered credit providers) and take on your debt in a single package.

There are multiple bene ts to this strategy. The loan is likely to have a lower interest rate than your smaller debts, such as credit card debt and personal loans. And you deal with only one, instead of multiple, providers, with a related drop in administration costs and credit life premiums.

However, there are pitfalls and risks. First, you need to be aware that unless you have a good credit record and are considered a low-risk borrower, banks are unlikely to consider you for a debt consolidation loan.

The biggest risk is that you end up paying more in interest because, although interest rates on home loan or consolidation loans are lower than those on short-term credit, such as credit-card and personal loans, you have now converted short-term debt into longer-term debt – much longer in the case of a home loan.

Regional director and chief executive of Re/Max of Southern Africa, Adrian Goslett, says car loans and credit cards usually accrue interest at much higher rates than a home loan. Before using home equity to cover these debts, he recommends going through the numbers to work out whether it will put you in a better nancial position or a worse one.

“Homeowners need to consider the longterm impact of this decision and do the necessary calculations before making any nal decisions. The last thing a homeowner wants is to fall behind on repayments and lose their home because they have used their equity to cover other debts,” Goslett warns.

As an example, if you have a 20-year home loan of R1 million with an interest rate of 8%, with 10 years left to go, an additional R100 000 will cost R1 213 extra a month, costing you R45 460 in interest over the 10 years. However, if you take out vehicle nance for R100 000 over ve years at an interest rate of 12.5%, you will pay R2 250 a month and R36 080 in total interest over the ve-year term of the loan. The di erence in interest paid is R9 380, or an extra 26% more.

The key to this strategy is not to reduce your total debt repayments in line with the reduced interest rate. In other words, instead of paying the minimum monthly

amount, you pay the same into the consolidation loan as you were paying in total into your multiple short-term loans. In this way you shorten the loan term.

Will my credit record be a ected? Not if you have not defaulted on your debts. What costs are involved? No fees apart from a possible administration fee to the bank for consolidating your debt.

3. DEBT MEDIATION

This option is appropriate in resolving a dispute about a speci c credit agreement with a speci c credit provider and works best when a creditor has begun legal action against you, but the action has not yet reached the court stage. The debt-recovery process begins with a section 129 notice, which credit providers are obliged to issue you with once you are in default for at least 20 business days. If you have not responded to the credit provider within 10 business days of receiving the notice, the credit provider is at liberty to take the case to court, in which case you will be issued with a summons.

Debt mediation is alternative dispute resolution (the resolution of disputes through conciliation, mediation or arbitration instead of through court action) applied to a debt dispute whereby, through a mediator, you and your credit provider reach an agreement on how to repay your debt. This would typically involve:

• Negotiating a restructured, realistic debt repayment plan which you can a ord; and

• By agreement, preventing the credit provider from obtaining a judgment against you and executing a court order to repossess your assets.

The National Debt Mediation Association (NDMA), a non-pro t organisation dedicated to helping consumers with debt management and restructuring, says on its website: “The NDMA applies mediation to assist consumers and credit providers and debt collectors to resolve arrears, legal actions and other related credit disputes. Mediation … does not involve the courts but relies on parties sticking to any agreement or arrangement made.

“Once you have received a section 129 letter, you have the option to refer that speci c credit agreement to a debt

counsellor, alternative dispute resolution agent, consumer court or ombud with jurisdiction. The intention is that the credit provider and yourself resolve any dispute related to the agreement or agree on a plan to bring the arrears up to date.”

Credit Rehab, a debt resolution practice in the Western Cape, explains the di erences between debt mediation and debt review on its website: “Debt mediation has proven to provide relief to overindebted consumers who are only slightly indebted, e ectively gaining nancial control before the situation calls for the more formal process of debt review.

“One of the standout factors of debt mediation is that you do not have to be declared o cially over-indebted – a prerequisite for undergoing debt review. It is important to note that when undergoing debt mediation, there is no binding legal contract in place, which comes with its own set of bene ts and downfalls. Without the protection provided in a formal legal contract, consumers will not be able to avoid potential asset repossession. [However], the less formal proceedings of debt mediation can prove bene cial, as it is easy to cancel the process if your current nances take a turn for the better.”

Will my credit record be a ected? Your poor repayment history will be re ected on your record, but because any legal action is prevented or halted, the record will not re ect a judgment against you.

What costs are involved?

There is an application fee (nonrefundable) and a mediation fee if you accept the agreement after the mediator has approached your credit provider. Expect to pay about R400 to apply and a further R4 000 to R6 000 per credit agreement, depending on the type of loan and amount owing.

4. DEBT ADMINISTRATION

Debt administration may be described as “debt counselling mild”. Like debt counselling, and unlike debt mediation, it is a legal process, which is enforceable by an order of the Magistrate’s Court. It applies to all your debts collectively, unlike debt mediation, which applies to individual credit agreements. However, there is a big

catch: your total liability must not exceed R50 000. This is a small amount when one considers that vehicle loans are often in the hundreds of thousands and home loans in the millions of rands. However, it may be useful for young people who do not have vehicle or housing loans but who have run up debts on credit cards, store cards and personal loans.

Legal website Law for All explains: “You will need the assistance of a debt administrator, who will deduct your living expenses from your income, and divide the balance equally between your creditors. Only a court can make an order to place you under administration. If the court grants your application, the administrator will take over the management of your nances, and your creditors won’t be able to take legal action against you.”

Law for All says this option may not be cost-e ective. “Interest rates are only reduced to 15.5%, and the repayment terms are usually extended open-endedly. Interest adds up, because creditors are only paid every three months. There is also no way of hiding it from your employer, as payments are deducted from your salary.”

Unlike debt counsellors, debt administrators aren’t legally required to

register with a regulatory body, and in the past, some have been caught overcharging or not paying creditors, according to Law for All.

If you decide that debt administration is not for you, you can cancel it, Law for All says. “But you will have to convince a magistrate that you have good reasons for

your decision and that you will continue to pay your creditors.”

Will my credit record be a ected? The administration listing will re ect on your credit record for 10 years and you may not apply for credit in this period.

What are the costs involved? Of all the options listed, this is the most expensive, relative to the amount of debt. An administrator appointed by a Magistrate’s Court to collect and distribute your payments to creditors is allowed to take up to 12.5% + VAT of the monthly payments for his/her service. Expect to pay a once-o fee of about R1 200 for the administration order. If an emoluments attachment order (whereby your repayments come directly o your salary) is granted by the court, your employer is allowed to take a 5% management fee on the monthly amount. This means more than 17.5% of your monthly repayment could be chewed up by costs.

5. DEBT COUNSELLING (DEBT REVIEW)

Debt counselling is a debt-resolution mechanism unique to South Africa that was introduced by the National Credit Act in 2007. Also known as debt review, it is in

“Your administrator must draw up a distribution account every three months, and show what has happened with your money. The account must show how much was received, how much was deducted as fees and costs, and the amount paid over to each of your creditors. By checking statements, you can make sure you aren’t being overcharged or end up in deeper debt.”

many ways the most bene cial option for consumers wanting to free themselves of unmanageable debt, because it is the most tightly regulated and weighs heavily in favour of the consumer.

On their website, East London rm Oyisa United Debt Specialists (OUDS) note that all debt counsellors are regulated by the National Credit Regulator, which also regulates the debt review process and all fees charged. “All consumer funds are paid to a regulated and approved payment distribution agency and distributed monthly to credit providers. [This option o ers] legitimate legal protection for assets such as your home or car,” OUDS says.

Debt counsellors negotiate reduced installments and interest rates with your credit providers allowing you to settle your debts over a reasonable period. A counsellor may bring down your monthly debt repayments by as much as 30 to 50%, OUDS says. “The outcome is one a ordable monthly instalment, making provision for you to cover your normal living expenses as well.”

Not everyone can enter debt counselling: you qualify for the debt review process by being declared over-indebted, according to the de nition in the National Credit Act (see above).

Roodepoort-based debt-resolution company Ithuseng Credit Solutions describes debt counselling as “a formal legal process that provides for a consumer to be declared over-indebted and for the debt counsellor to negotiate a restructured payment plan and obtain a court order con rming the new repayment plan. The debt counsellor must be registered with the National Credit Regulator (NCR) and have an NCRDC number”.

Once declared over-indebted and accepted into debt counselling, the following will happen:

• You will be protected from legal action for a period of 60 days from the day of

application and after the arrangement has been concluded as long as you make payments according to the new arrangement;

• All your creditors will be prevented from communicating with you directly and must liaise with your debt counsellor;

• You will be listed at the credit bureaus as being under debt counselling;

• Once you have settled your short-term and unsecured credit agreements and cleared the arrears on your home loan, you will be issued with a clearance certi cate, at which point your credit record will be updated and you will again be able to access credit.

The NCR lists additional important points to consider before choosing the debt review option:

• Couples married in community of property must apply jointly for debt counselling.

• Consumers under debt administration cannot apply for debt counselling.

• You cannot apply for, or be granted any new credit while under debt review. In the past, the only way to exit debt review was to obtain your clearance certi cate However, the law has changed, letting you cancel the process voluntarily. However, you will have to pay the original instalments and interest rates again, there may be additional penalty fees, and if you default on your repayments, you run the risk of legal action. If the process has reached the stage where a court order has been granted, you will have to apply to the court to have it cancelled, which will entail legal fees.

Will my credit record be a ected? You will be listed with all credit bureaus as being under debt review. Your debt review status will be cleared once you receive your clearance certi cate.

What are the costs involved? There is an application fee of R50, and a fee of R300 if your application is rejected. The maximum allowable fee on a successful application is R6 000, which is payable at the rst

instalment. A monthly "after-care" fee of up to R400 a month is also payable (the debt counsellor will work these fees into the repayment plan). The legal fee for the consent order is limited to R750. Payment distribution agents are entitled to charge between R5 and R15 on each payment to each credit provider in the repayment plan. All quoted fees exclude VAT.

6. SEQUESTRATION

This is the most radical step. Sequestration o ers a nal way out of crushing debt: you will literally lose all your possessions, but then have the opportunity to start afresh, without owing anything.

Law for All says someone will be appointed to manage your nances and you will be forced to sell your possessions to settle your debt. “This includes your house, your car, furniture and other assets of value. Unfortunately, you cannot be sequestrated if your creditors feel that it won’t be in their best interests, so you will have to o er at least 20c-25c in the rand of what you owe.

“You will need the assistance of lawyers and advocates, which means that you will be forking out hefty legal fees. This process is long and often takes years to be nalised. What’s more, you won’t be able to take on debt for at least ve years.

“On the upside, after being sequestrated, your entire salary is yours, and you won’t have to pay any portion of it to your creditors. Your employer will also not know about your debt problems,” Law for All says.

Sequestration is the process of liquidating your assets and distributing the proceeds to the creditors as equitably as possible, given that no claim will be met in full. There are two types of sequestration:

1. Voluntary sequestration, when you le for bankruptcy under the Insolvency Act. You ask the High Court to declare you legally bankrupt, accept the “diminished legal capacity” that goes with bankruptcy and invite the court to liquidate your estate.

2. Forced or compulsory sequestration, when your creditors apply to the court for your sequestration.

The court will grant a sequestration order under the following conditions:

• Your estate is genuinely insolvent;

• Liquidating your assets will bene t the creditors; and

• The value of the assets will cover the costs of sequestration.

This means the value of your assets needs to be relatively high. Someone with negligible assets will not be able to le for bankruptcy.

Once you have been declared insolvent and sequestrated, you lose control of your nancial a airs until you are rehabilitated. This happens automatically after 10 years, but if your nances take a turn for the better you may apply to the court for rehabilitation before the 10 years are up. Once rehabilitated, you can start life with a clean slate, and your former creditors will have no further claims against you.

For a comprehensive article on the pros and cons of sequestration and the legal processes to follow, read “Going for broke” by Roz Wrottesley in the 3rd-quarter 2019

edition of Personal Finance. The article also appears on the Personal Finance webpage (www.iol.co.za/personalnance) under the title “Going for broke: sequestration is a last-ditch option to becoming debt-free”.

Will my credit record be a ected? Yes. Your sequestration status will be cleared when you become rehabilitated.

What are the costs involved? The legal costs are high – they may be in the region of R20 000 - R30 000. These costs will be deducted from the proceeds of your liquidated estate.

REINING IN CRYPTO WHAT GOVERNMENTS ARE DOING

The very nature of crypto assets is that the blockchain to which they are linked is decentralised, operating everywhere simultaneously, in a realm beyond the concept of country borders. Countries are approaching the regulation of this elusive asset class in di erent ways, reports Anna Rich

Here’s one for the next pub quiz: which crypto scam was the biggest in the world in 2020?

According to the 2021 Crypto Crime Report from the Chainalysis blockchain data platform, that title went to Mirror Trading International (MTI).

You’ll probably remember hearing each successive twist in the tale of the Stellenbosch headquartered company, which has since been placed into nal

liquidation. The Chainalysis report said that the MTI Club had received $588 million worth of Bitcoin across more than 470 000 transactions.

In August 2020, Texas state regulators labelled the company a scam, and here in South Africa, the Financial Sector Conduct Authority (FSCA) announced an ongoing investigation into their activities, and warned the public against trading with them.

When the FSCA informed MTI that it was conducting an illegal unregistered nancial services business, MTI claimed that it was then trading in derivative instruments based on Bitcoin, which meant that it was no longer under the FSCA’s jurisdiction, and did not need a nancial services provider (FSP) licence. But after looking more closely into MTI’s operations, there was no evidence of crypto trading either, so the FSCA opened

a criminal case with the Commercial Crime Unit. The MTI example highlights where regulatory oversight begins and ends.

The next year brought Africrypt, yet another South African story of disappearing crypto – allegedly a hack – to the extent that the cumulative MTI losses looked like small change. However, the Africrypt plot continues to thicken, and the guilt or innocence of the founders is still under question.

Crypto scams are by no means a particular South African problem. Word of 2019’s China-based PlusToken scam may not have reached our ears, but Chainalysis says that this Ponzi scheme took at least US$3 billion from its victims, who were concentrated in Asia. The way it worked, as Chainalysis explains it, is that PlusToken “presented itself as a cryptocurrency wallet that would reward users with high rates of return if they purchased the wallet’s associated Plus cryptocurrency tokens with Bitcoin or Ethereum. The scammers claimed those returns would be

generated by ‘exchange pro t, mining income, and referral bene ts’.” They note that the Chinese authorities had arrested 109 people linked to this scam, and prosecuted the six ringleaders.

Many in Russia and Ukraine (and elsewhere) fell for the Russiabased crypto Ponzi scheme

Finiko, which claimed that investors would see monthly returns of 30%, according to the 2021 Geography of Cryptocurrency Report from Chainalysis. They say that “between December 2019 and August 2021, Finiko received over $1.5 billion worth of Bitcoin in over 800 000 separate deposits”. When users found that they couldn’t draw their funds, around mid-2021, the scheme fell apart.

Then, more recently, you may have heard the reports of the (uno cial) Squid Game crypto token investment. No doubt the scamsters were banking on the runaway popularity of the South Korean Net ix series. During the last couple of months of 2021 the website disappeared –along with investors’ money.

Lest we gain the wrong impression through repeated stories of crypto crime that dominate headlines, illicit activity forms just a tiny fraction of crypto activity. The above-mentioned Crypto Crime Report said that “In 2019, illicit activity represented 2.1% of all cryptocurrency transaction volume or roughly $21.4 billion worth of transfers. In 2020, the illicit share of all cryptocurrency activity fell to just 0.34%, or $10.0 billion in transaction volume.”

They note a few reasons for this drop, one being that overall economic activity nearly tripled between 2019 and 2020. Nonetheless, they contend that the news is still good: “Cryptocurrency-related crime is falling, it remains a small part of the overall cryptocurrency economy, and it is comparatively smaller to the amount of

illicit funds involved in traditional nance.”

A parallel financial system

It’s not just a question of attempting to contain criminal activity. As the Intergovernmental Fintech Working Group (IFWG)/Crypto Assets Regulatory Working Group (CARWG) said in their 58-page position paper, crypto assets have the potential to become systemic.

Citing the CoinMarketCap website, they note that there are over 5 300 di erent crypto coins and tokens in circulation. According to the same site, the global crypto market cap was at US$2.19 trillion at the time of writing. The Chainalysis 2021 Global Crypto Adoption Index says that adoption is skyrocketing in general, with growth of 2 300% between Q3 2019 and the end of Q2 2021.

In South Africa, the working group says that 12 crypto asset trading platforms –which include Altcoin Trader, Bitcoin.com, Chainex, CoinBR, CoinDirect, Edcoin, Ice3X, Luno, ProjectUbu, ProsperiProp and VALR –have a market capitalisation of R6.5 billion.

With that in mind, it’s no wonder that the IFWG/CARWG also describe crypto assets as posing the risk of “a parallel, fragmented, non-sovereign monetary system”. They explain that a signi cant increase in the demand for crypto assets would mean that “the central bank’s role in ensuring an e cient monetary system could become less e ective, as the demand for at currency would decrease and crypto assets would e ectively compete with at currencies.” However, they don’t foresee this as an immediate issue.

As the IFWG/CARWG note, “crypto assets operate within a regulatory void, as no globally harmonised approach or position has been reached as yet”. They call for a coordinated global approach for fear that varying degrees of stringency would result a “race to the bottom”, with crypto asset activity migrating to the most lax jurisdictions.

What other countries are doing

Globally, governments are wrestling with the issues to nd their way forward

in terms of cryptocurrency policies. Between the publication of the Law Library of Congress, Global Research Directorate Regulation of Cryptocurrency Around the World report in 2018 and the November 2021 Update, the number of countries that have placed restrictions on cryptocurrencies has increased, with further changes since. Nine countries have complete bans, and 42 do so implicitly, they note – while at the previous count these gures were eight and 15 respectively. And 33 countries applied antimoney-laundering and counter- nancingof-terrorism laws in 2018, but 103 do so now, with most applying both. In general, the trend is not to ban cryptocurrencies, but anti-money-laundering and counternancing-of-terrorism laws do apply. The greatest variation in approach is in taxation.

At one end of the spectrum, El Salvador has adopted Bitcoin as its legal tender (as of 7 September 2021), and at the other, China has clamped down signi cantly. On 24 September 2021, the Chinese central bank announced that all cryptocurrency transactions and crypto mining were illegal.

The Cambridge Centre for Alternative Finance (CCAF) at the UK’s University of Cambridge has a Bitcoin mining map that allows you to toggle through geolocational mining facility data each month. In June 2021, it shows that China had the highest concentration of mining activity globally. By July, the concentration had shifted to the United States, while in China there was no activity, though of course there are ways and means of hiding it.

And the CCAF’s Third Global Cryptoasset Benchmarking Study showed that in 2019 “China accounted for a substantial portion of manufacturers’ total mining hardware sales (52%), dwar ng other world regions, including the USA (12%) and Canada (9%).”

What’s afoot? In their Geography of Cryptocurrency Report, which looks at adoption and usage trends, Chainalysis says China plans to launch the world’s rst blockchain based central bank digital currency (CBDC). In a November article titled, “With 56 bln yuan in transactions,

where is China's digital yuan heading?”, the People’s Daily Online, a foreign-language o shoot of the o cial newspaper of the Central Committee of the Chinese Communist Party, said that as of 8 October, “the number of pilot scenarios for the digital yuan in the country has exceeded 3.5 million. Over 123 million personal wallets have been opened, with the transaction volume totalling 56 billion yuan (about 8.76 billion US dollars), according to the governor of the People's Bank of China, Yi Gang.” The article also said that pilots of the digital yuan have been rolled out in 10 Chinese cities, including Beijing, Shanghai and Shenzhen, and that there are plans to test it at the 2022 Beijing Winter Olympics.

In terms of crypto adoption (by ”ordinary people”), an index developed by Chainalysis puts Vietnam rst, though, according to the Law Library Update, cryptocurrencies are not legal as currencies or as a means of payment.

India comes in second – despite regulatory uncertainty. In April 2018 the Reserve Bank of India prohibited banks from dealing with cryptocurrency exchanges, says the Law Library Update, but this was dismissed by the Supreme Court. Ahead of the winter parliamentary session in late 2021, speculation as to the contents of the Cryptocurrency and Regulation of O cial Digital Currency Bill was rife. There was talk that the bill was set to ban private cryptocurrencies (with some exceptions) in favour of an o cial digital currency. Another possibility that was oated was that crypto would be allowed as an investment, while transactions would be banned. It is now expected to be delayed until the Parliamentary budget session in the rst quarter of 2022.

Nigeria, another top adopter of crypto assets, has also seen governmental entities ip- op in their regulatory approach: in September 2020, the Securities and Exchange Commission issued a statement to the e ect that blockchain-related and virtual digital asset services activities had to be registered by the Commission and would be subject to regulatory guidelines. Then, in February, the Central

Bank of Nigeria reminded banks and other nancial institutions that dealing in crypto currencies and facilitating payments for cryptocurrency exchanges was prohibited. This led to the SEC suspending their guidelines. The central bank has issued its own digital currency, the e-Naira.

Moving to the EU, Germany’s stance on crypto assets is to bring them squarely within their regulatory framework. At the start of 2020, legislation kicked in that required crypto exchanges to apply for a licence from the German nancial regulator. What is even more signi cant, though, is that their banks are now allowed to deal in cryptocurrencies. And at the beginning of July 2021, Germany’s Fund Location Act came into e ect, which enabled “domestic special funds” –institutional investment vehicles – to invest up to 20% of their portfolios into crypto assets.

And over in Switzerland, the nance minister was reported as wanting the country to be “the crypto-nation”, the IFWG/CARWG said, in their survey of the regulatory approaches of 19 jurisdictions. Another country that the working group designates as having a “friendly” position on ntech is Japan, pointing to the Virtual Currency Act that made crypto assets legal tender in 2017, and their attribution of “0.3% of 2017 GDP growth to their cryptofriendly stance”.

The Russian Federation, on the other hand, is deemed “hostile”. The Library of Congress notes that crypto assets are not banned, and they reported that rules for mandatory tax reporting would come into force in April 2022. “Before that, declaring ownership of cryptocurrency is voluntary.” Russian residents may not o er or receive digital currencies as payment for goods, work or services. In December, Reuters reported that the central bank was pushing for a ban on cryptocurrency investments, fearing that their popularity posed a risk to nancial stability.

Though cryptocurrency investment and blockchain companies are a dime a dozen in the US, there is no clear regulatory framework in place, besides the requirement for crypto exchanges to

adhere to anti-money-laundering and counter- nancing-of-terrorism provisions. December saw hearings before the House Financial Services Committee.

Across the US and Europe there is a trend towards institutional adoption of crypto assets, the Institutional Investors Digital Asset Survey 2020 Review by Fidelity Digital Assets notes. They found that 36% of institutional investors surveyed currently invest in digital assets.

The regulatory direction in SA

Back in 2014, National Treasury along with other key nancial authorities – the South African Reserve Bank, FSB (now FSCA), South African Revenue Service (SARS) and Financial Intelligence Centre (FIC) – warned the public about the risk of using crypto assets to transact or invest.

The absence of regulations meant that consumers have no legal recourse or

protection, they said.

This is set to change. Since 2016, the IFWG has been exploring “how regulators can more proactively assess emerging risks and opportunities in the market,” says the FSCA. Then in 2018, the CARWG, with IFWG representatives, began working on a comprehensive policy, laid out in their position paper, published in June 2021: crypto assets would be regulated in South Africa.“The IFWG does not possess legislative powers to implement regulatory changes. Legislative powers sit with regulators and policymakers,” the FSCA explains. The IFWG/CARWG position paper o ers 25 recommendations for regulation of crypto assets. “Multiple proposals have been set in motion,” says the FSCA. “Various processes need to be undertaken to implement the proposals – for example, a legislative change that

needs to be tabled in Parliament versus a regulatory or standard amendment – and each process is linked to speci c timelines.”

The highest priority, says the FSCA, is to protect consumers. One of the rst steps towards this goal is to include crypto asset service providers as accountable institutions under the FIC Act.

One such provider is Luno. Founded in 2013, they were the rst in South Africa, and now have nine million customers in over 40 countries.

“We, and other industry players, are already voluntarily registered with the FIC, but amendment of the Act to include crypto providers as accountable institutions is an important rst step towards regulatory oversight of the industry in South Africa, and we think it will come through soon,” says Lucy James, general counsel at Luno. “As a

global business, we spend a lot of time advocating for and working towards regulation. We’ve seen its success in some of our markets, and we’re really pleased that South Africa is moving in the same direction.

Many of the systems and processes typically required by crypto and other nancial services regulation are already in place at Luno, James says. The company has a comprehensive “Know Your Customer” programme, which includes verifying the identity of their customers when they onboard them and understanding a customer’s activities throughout the lifetime of the relationship.

They also monitor transactions, conduct daily sanctions screening and le suspicious activity reports. “But we’ve also taken additional steps, such as an audit by Mazars, to assure our customers that we do hold the amount of crypto they see re ected in their wallets.”

Another step was obtaining ISO 27001 certi cation, the international gold standard for information security. “We are not yet required to do this by any regulatory standard, but we think it’s important for our customers that we do so regardless.”

Another area of focus in the working group recommendations is anti-money laundering and combating the nancing of terrorism.

For each theme, the working group lists the responsible authorities, the necessary actions, and risks. The FIC and National Treasury are responsible for anti-money laundering and combating the nancing of terrorism.

that the anti-money-laundering regime relies on will be challenging for crypto providers because of the nature of crypto assets – their anonymity, lack of geographical limits and irreversibility of transactions.

The third aspect the working group highlights is the ow of money across our borders, as the current exchange control regulations don’t currently require crypto asset trading platforms to report crypto asset transactions. The trading volumes are signi cant, reaching in excess of R2 billion a day for the rst time in January 2021.

For the majority of citizens, most of these areas of regulation might not be top of mind. But tax certainly is. Normal income tax rules apply to crypto assets, says SARS. You have to declare any crypto assets gains or losses, and these are taxed under gross income. Otherwise, gains could be seen as capital, and taxed under capital gains tax.

The related actions listed include aligning the regulations with the intergovernmental Financial Action Task Force recommendations, a proposed amendment of schedule one of the FIC Act to include crypto providers as accountable institutions, publication of draft amendments for public consultation, and approval by the Minister of Finance.

A risk here, they say, is that the customer identi cation and veri cation

Regulation is not a cure-all. As is the case in every system, not just crypto, putting regulation in place will not completely weed out unscrupulous players, James notes. But regulations serve a further purpose: to lift standards. “If the public knows they’re dealing with a regulated entity, they know that entity has to meet standards that have been put in place for their protection, and this increases trust.”

"The extent to which the working group engaged with industry and took their view on board was 'impressive'."

FINANCIAL PLANNER OF THE YEAR MEET SOUTH AFRICA’S NEWEST

It’s rare for someone to earn the highest distinction a profession can bestow after being a fully-fledged member of that profession for only about four years. But this is exactly what 36-year-old Ryan McCaughey accomplished in October last year, when he was named Financial Planner of the Year for 2021/22 by the professional body for financial planners in South Africa, the Financial Planning Institute (FPI). The coveted award goes to the winner of a gruelling annual competition among the FPI’s members.

To put his achievement into context, though, McCaughey’s career in financial services actually started long before he decided to be a financial planner, and everything he did in that time laid a firm foundation for his current role.

The road to financial planning

In an interview with Personal Finance, McCaughey detailed his journey thus far. Growing up in the Eastern Cape, he matriculated from St Andrews College in 2003. The following year, he took a gap year,

during which time he became a dive master in the Cayman Islands in the Caribbean. “Luckily, a hurricane hit us, or I might still be there,” he quips.

In 2005 he went to the University of Stellenbosch, where obtained a BCom degree and then a BCom honours degree in financial analysis. Entering the job market in 2010, his passion for investments led him into positions as equity analyst and private-client portfolio manager in the asset management industry, but after about seven years the need to interact with people

At a glittering gala dinner towards the end of last year, the Financial Planning Institute crowned its Financial Planner of the Year for 2020/21, Ryan McCaughey, head of the Cape Town branch of Hewett Wealth. Martin Hesse chatted to him.

Financial Planner of the Year

Ryan McCaughey enjoys the outdoors with his wife Ashleigh and twins Noah and Saige.

prompted the switch to financial planning.

“In the investment industry, especially on the unit trust side, you lack personal interaction. You’re sitting doing your research, presenting to portfolio managers, and that is where it stops. Managing private-client portfolios was the next level, but you also got to sit with advisers, and eventually the advisers were taking you to meet clients, and that sparked a huge interest for me.

"I started looking into it, because it combined my investment background – my strength – with my interest in people and building relationships, and I haven’t looked back,” McCaughey says.

He obtained the Postgraduate Diploma in Financial Planning at the University of the Free State in 2017 which led to his accreditation as a Certified Financial Planner (CFP) professional through the FPI. In the same year he opened the Cape Town branch of Hewett Wealth, an independent advisory firm started by Peter Hewett, whom he had known when working for the Efficient Group, and who had won the Financial Planner of the Year award in 2014.

In business

At Hewett Wealth, McCaughey and Hewett decided on a number of fundamentals on which to run the business: there would be no upfront fees (investment advisory fees are charged on a sliding scale with an associated annual review structure), and the aim was to establish long-term relationships with clients and be aligned with their longterm interests.

“In establishing the business, we spent a lot of time building our processes. We looked at what commitments we’d give clients and how we’d ensure we could follow through with them. That took the first one-and-a-half to two years, and since then we have been very lucky in growing our business, which has just been through referrals – we’ve done no marketing. And I think that ties back to us delivering for our fee, making clients feel comfortable and having regular reviews with them,” McCaughey says.

Deciding what financial products to offer clients can be a challenge for any independent advisory firm because of the vast array of products, and unit trusts in particular, on the retail market.

McCaughey explains: “We have an internal investment committee which ensures full due diligence on all the different products. We’re also aligned with a few discretionary fund managers, which also have their own investment committees. So everything we offer our clients is approved on multiple levels. On top of that, we sit quarterly to interrogate and construct our house view of the investment markets, and based on that view, we’ll build a dummy client portfolio, based on a specific set of requirements.”

This means that asset allocations in clients’ portfolios can be rebalanced if necessary to align with market conditions.

Then came Covid-19…

So how has the pandemic changed the way planners like McCaughey do business?

“We were actually very lucky in that leading into the pandemic we had established our online system – it was perfect timing in that sense. On our system we could see any file or document pertaining to a client, all their proposals, all their reviews – everything was in our standardised filing structure. We could see the values of the client’s investments, and obviously the clients had access to that as well. There was a meeting function, so we could meet up for an online chat. So it was seamless for us to leave the office and work from home.

“We have grown a lot during the pandemic, and that has all been on the back of referrals, with clients chatting to their friends. So it really helped our business indirectly.”

McCaughey says the thoroughness of their processes – of taking the long-term view and regularly reviewing clients’ investment portfolios – ensured that clients didn’t panic when the equity markets plummeted at the start of the pandemic.

A large part of a financial planner’s job, he says, is to cut through all the “noise”

A large part of a financial planner’s job, is to cut through the “noise”.

around economies and financial markets, and to ensure clients see the bigger picture and trust their long-term financial structure.

“As long as the portfolio is wellstructured and the plan is understood from the client’s perspective, there’s no need for rash decisions … unless there were to be a World War 3 type event, then it would be a different story,” he says. “We also put a lot of effort into educating clients, such

Family man

On a personal note, McCaughey recently became a father – of twins. “I’m 36, and was young when I started as a planner four years ago. People want their advisers to have experience, understanding… and a bit of grey hair, I think. As soon as I got married, I felt I gained a lot more respect and trust from clients. And then when I had kids, it was almost as if they opened up to me completely.”

a German Shorthaired Pointer called Chai. He keeps active by partaking in sports such as surf ski paddling , kite surfing, mountain biking, trail running and hiking. He has taken part in events such as Ironman, the Cape Point surf ski challenge, trail running events, numerous mountain biking and road cycling events, marathons and stage races.

His competitive and adventurous spirit will, no doubt, bring him many more rewards as familiarising them with the underlying investments of the products they hold.”

McCaughey lives in Hout Bay with his wife Ashleigh, twins Noah and Saige, and

and accolades in both his professional and personal life in the years to come.

FINANCIAL PLANNING PROCESS

The Financial Planner of the Year competition requires contestants to submit a client case study, among other things. McCaughey’s presentation outlining the process he goes through with clients epitomises what a financial planner should be able to do for you. There are six steps, in line with the steps advocated by the FPI and the international body to which it is affiliated, the Financial Planning Standards Board.

1. Client engagement. In this first step, the planner meets with you, and puts forward a proposal, explaining what the company can offer and what you can reasonably expect, and laying out costs. If you agree to continue, a service level agreement is drawn up.

2. Collection of client information. The planner finds out more about your needs, objectives, priorities and relevant personal circumstances, your current financial position, current investments and financial products, and gathers all necessary documentation. You are assessed for your appropriate level of investment risk.

3. Analysis. The planner analyses your financial position, identifying strengths and weaknesses.

4. Development of a financial plan. The planner draws up a long-term financial plan based on the information gleaned and the analysis, which he or she then presents to you.

5. Implementation of the plan. If you agree to the plan, it moves to the implementation stage, at which point the planner then recommends certain products and services consistent with the plan.

6. Review. The planner holds a regular annual, bi-annual or even quarterly review session with you, taking into account changes in the investment markets as well as any significant changes in your life. Adjustments can then be made to ensure the plan is still on track.

Ryan McCaughey receives the Financial Planner of the Year award from Lelané Bezuidenhout, chief executive of the Financial Planning Institute, at the institute’s gala dinner in Sandton in October 2021.

UNDERSTAND THE NEW RULES ON CITIZENSHIP, EXCHANGE CONTROL AND TAX RESIDENCY

Carla Rossouw and Jaya Leibowitz discuss how the phasing out of emigration from SARB to SARS has created even more confusion around these concepts and how the changes affect individuals and their investments

The concept of “emigration”, as recognised by the Financial Surveillance Department of the South African Reserve Bank (SARB), was phased out with e ect 1 March 2021. National Treasury indicated that the reason for this regulatory change was “to encourage South Africans to keep their ties with the country”.

The phasing out of emigration has created even more confusion around citizenship, exchange-control residency and tax residency and how the changes will a ect di erent individuals and access to funds. Let’s take a closer look at the di erences between these three concepts and explain how each may a ect your investments.

1. CITIZENSHIP

A citizen is a legally recognised national of a state or commonwealth. In South Africa, you can be a orded citizenship in three ways: by birth, through descent, or via naturalisation. Citizenship status gives individuals certain rights and obligations, such as the right to vote, access to social services, and the right to live and work in the country without the need for a permit or visa.

In South Africa, citizenship is a concept that exists independently of tax and exchange-control residency. For example, if your family emigrated to another country when you were a child, you could have retained your South African citizenship, but you will not be a South African tax or exchange-control resident.

As a South African citizen, you do not need to live in the Republic to retain your citizenship status. South Africa also allows its citizens to hold dual citizenship, which means that you can be a South African citizen and a citizen of another country simultaneously.

Can you lose your South African citizenship?

A South African citizen who fails to adhere to certain legal obligations may lose their citizenship. For example, you must apply to the Department of Home A airs for permission to retain your South African citizenship prior to applying for citizenship

of an additional country. Failure to do this may result in you losing your South African citizenship. South African citizens under the age of 18 years are exempt and do not need to apply for dual citizenship, if they acquire the foreign citizenship before they turn 18.

2. EXCHANGE-CONTROL RESIDENCY

It is important to remember that the concept of residency for exchange-control purposes is distinct from tax residency, which is discussed in section 3. South Africa’s exchange-control regulations determine the ow of money in and out of the country. This means that these regulations govern the amount of money you may take out of the country and the circumstances under which you may take money abroad.

Prior to 1 March 2021

The regulations previously created distinctions between the following individuals:

• Resident: A person who has taken up permanent residence in South Africa.

• Resident temporarily abroad: A resident who has departed from South Africa to a country outside the Common Monetary Area (CMA) (South Africa, Namibia, Lesotho, Eswatini), with no intention of taking up permanent residence in another country. This excludes residents who are abroad on holiday or business travel and includes residents who are living and working abroad.

• Emigrant: A South African resident who is leaving or has left South Africa to take up permanent residence in a country outside the CMA.

• Non-resident: A person whose normal place of residence is outside the CMA. An individual or family unit intending to take up permanent residence outside of the CMA could apply to the SARB for nancial emigration (or "formal emigration"), which would entitle the individual to take a speci ed amount of money out of South Africa via an emigrant capital account (also referred to as a randblocked account). A resident who followed this process would become an emigrant

for exchange-control purposes and would eventually become a non-resident.

Post 1 March 2021

The concept of emigration for exchangecontrol purposes has now been phased out and the process of controlling an emigrant’s remaining assets via an emigrant capital account has fallen away.

If you leave South Africa to take up permanent residence in another country, you will have to inform the South African Revenue Service (SARS) that you have ceased to be a South African tax resident (see below for more information on tax residency). If you cease to be a South African tax resident, you will have to request a tax compliance status for “emigration” from SARS before being permitted to transfer any funds abroad.

However, the SARB and SARS have con rmed that if you submitted an emigration application to an authorised dealer before 1 March 2021, you will be able to follow the previous emigration process.

For more information on how much money you are allowed to transfer out of the country when you emigrate, please see “Taking money o shore” in section 3.

Declaring yourself a resident temporarily abroad

If you are living outside of South Africa on a temporary basis (in other words, that you intend to eventually return to South Africa), and did not formally emigrate prior to 1 March 2021, you should consider declaring yourself a “resident temporarily abroad”.

The SARB allows individuals who have declared themselves as residents temporarily abroad to receive pension and annuity payments directly into their foreign bank accounts, as well as monetary gifts and loans from other South African exchange-control residents. These payments are permitted in addition to the annual R1 million single discretionary allowance (SDA), which all South African residents (excluding those who have ceased to be South African tax residents) are entitled to, and the R10 million foreign capital allowance (FCA) described in section 3.

3. TAX RESIDENCY

Tax residency is important because it determines where you have to pay tax and how much tax you need to pay. However, the concept of tax residency is distinct from exchange-control residency and citizenship. You could be a South African tax resident without being a South African citizen or exchange-control resident.

Countries use di erent rules or tests to determine when a person is considered a tax resident. As a result, you may qualify as a tax resident in more than one country simultaneously and therefore be subject to tax in those countries. The Organisation for Economic Co-operation and Development (OECD) has a website where most countries have set out their own tests for tax residency relating to individuals and legal entities. Click on the country that you are living in to see the criteria for tax residency in that country.

How to determine if you are a South African tax resident

You are classi ed as a South African tax resident if you are “ordinarily resident” in South Africa. According to case law, you are ordinarily resident in South Africa if it is the country which you will, naturally and as a matter of course, return to after your wanderings. In other words, it is your real home. You could remain ordinarily resident for tax purposes in South Africa even if you leave the country for a substantial period if you intend to eventually return to South Africa after your travels.

Your intention is a subjective matter and if you claim to be ordinarily resident in a country, all your surrounding actions and circumstances must support this claim. Factors that will be evaluated include:

• Your place of business and personal interests;

• Your most xed and settled place of residence;

• Family and social relationships, schools, places of worship, social clubs;

• Your habitual abode – the place where you stay most often, measured over time

• SARS Interpretation Note 3 (Issue 2) sets out the list of factors that will be taken into account to determine whether an individual is ordinarily resident for tax purposes in South Africa.

If you are not ordinarily resident in South Africa, you will still be considered a South African tax resident during a particular tax year if you have been inside South Africa for more than 91 days in that tax year, and each of the ve preceding tax years, as well as for a total of more than 915 days in the preceding ve years. This is referred to as the “physical presence” test.

Tax residency in more than one country

While it is possible to be a tax resident in more than one country, you can only be ordinarily resident for tax purposes in one country at a time.

Most countries enter into double taxation agreements (DTAs), which are contracts entered into between two tax jurisdictions to avoid double taxation of the same amount earned by the same person. A DTA will help you determine the country in which you are ordinarily resident and will explain which country is allowed to tax particular income, and which country must provide tax relief for the tax already paid in the other country.

It is important to understand that South Africa has negotiated separate DTAs with each foreign jurisdiction, so the rules that

apply will vary from country to country. SARS maintains a list on their website of all the DTAs that they have concluded with other countries.

When do you cease to be a South African tax resident?

You cease to be a South African tax resident when you are no longer ordinarily resident in South Africa and are no longer a resident based on the physical presence test. If you intend to become ordinarily resident in another country, you can con rm this intention with SARS. You will also have to remain physically outside of the country for a continuous period of at least 330 full days to ensure that you are no longer a resident based on the physical presence test.

Since the 2018 tax year, the SARS personal income tax return has included a question that speci cally asks whether you have “ceased to be a resident of South Africa during this year of assessment”. The date on which you ceased to be a tax resident will need to be provided when completing this information. Alternatively, you can also inform SARS by submitting the “Declaration: Cease to be a Tax Resident” form, available via the SARS website, along with the relevant documents which SARS may require to support your declaration.

It is important to be aware of the potential tax implications of ceasing to be a South African tax resident. The Income Tax Act treats you as having disposed of all your assets (excluding South African xed property and shares in South African companies that are property rich), which may result in a capital gains tax liability. This is often referred to as an “exit charge”.

However, it is very important to note that when your South African tax residency ends, it does not necessarily mean that you no longer have South African tax obligations. You are still required to complete a SARS tax return for any South African source income that you receive and may be subject to South African tax on that income, depending on the rules set out in the applicable DTA.

THE NEW REGIME Taking money

o shore

If you have followed the process to cease to be a South African tax resident, as described in section 2, new rules will apply regarding the assets that you can take out of the country.

Once you have obtained the tax compliance status PIN and SARS has con rmed that you are tax compliant, you will be able to transfer up to R10 million of your assets o shore per year. You will not be entitled to use the annual SDA that is available to residents. However, in the year that you cease to be a tax resident, you will be allowed to transfer up to R1 million as a travel allowance without obtaining a tax compliance status. In addition, household and personal e ects up to an amount of R1 million per family unit may be taken out of the country under a SARS “Customs Declaration”, provided these assets have been declared on the relevant forms.

If you wish to transfer more than R10 million o shore, you will be subject to a more stringent veri cation process by SARS and will have to apply for approval from the Financial Surveillance Department (FSD). Before approving these transfers, SARS and the FSD will verify your tax status and the source of funds and you

will be assessed in terms of the anti-money laundering and countering terror nancing requirements.

Accessing RA and preservation funds

Before 1 March 2021, SARS allowed individuals who formally emigrated from

South Africa to access their retirement annuity and preservation fund savings prior to reaching retirement. These savings would be paid into the emigrant’s capital account and could then be taken o shore. This process will still apply if you submitted an emigration

application before 28 February 2021, and your application is approved by the SARB on or before 28 February 2022.

From 1 March 2021, under the new process, if you have not formally emigrated, you will only be able to access your retirement annuity or preservation fund bene ts if you have not been a South African tax resident for an uninterrupted period of three years on or after 1 March 2021. Note that if you have not accessed your pre-retirement withdrawal bene t from your preservation fund, you will have immediate access to your bene t, as has always been the case.

If you leave South Africa when your work or visit visa expires, you will still be able to access your bene ts in the same way as before 1 March 2021.

The new cessation of South African residency test

The new “three-year” test provides for the payment of lump sum bene ts when a) a member ceases to be a South African tax resident (as de ned in the Income Tax Act), and b) remains/has remained a nontax resident for three consecutive years

or longer on or after 1 March 2021. The three-year period can start before 1 March 2021, meaning that if on 1 March 2021 you already met the requirements and were not a South African tax resident for a period, you do not need to start counting the three years again from 1 March 2021.

Why the emphasis on a three-year period?

The three-year requirement was the subject of much debate and consultation between industry and National Treasury. The SARB’s rationale for phasing out emigration was to make it easier to take money out of the country and to discourage people from cutting ties with South Africa. The three-year requirement adds a degree of permanency to a relocation abroad (in other words, it discourages those leaving South Africa for a short amount of time from withdrawing their retirement savings).

Ceasing to be a South African tax resident has a much lower compliance burden than the previous requirement to nancially emigrate, which involved a lot of administration and time.

National Treasury’s intention is to make it less burdensome for South Africans to access their retirement bene ts on leaving the country.

How will the new test work in practice?

The industry has been working with SARS to formulate a suggested list of documentary evidence to substantiate that an individual has ceased to be a South African tax resident and has remained a non-tax resident for three consecutive years or longer.

Seek advice

Determining your residency for tax or exchange-control purposes can become quite complicated and depends on your unique circumstances. We recommend that you seek advice from a South African tax or exchange control specialist if you are leaving or have left South Africa to live abroad, whether on a temporary or permanent basis.

Carla Rossouw is tax lead and Jaya Leibowitz is senior legal adviser at Allan Gray.

Gareth Stokes assesses the extent to which South Africa’s insurance sector was scarred by last July’s riots and looting in KwaZulu-Natal and Gauteng

South Africa’s special risks insurer Sasria barely survived the July 2021 civil commotion that disrupted areas of Gauteng and KwaZulu-Natal, having to turn to its only shareholder (aka the country’s taxpaying citizens) to help foot a R32 billion insured losses bill. The total cost of material damage to property and interruptions to corporate revenue ows from the widespread looting was expected to exceed R50 billion, with at least R18 billion coming from the pockets of uninsured businesses and individuals. Readers who watched footage of the carnage will not be surprised by the extent of the damage and the ensuing deluge of insurance claims. Between August and September last year, Sasria received no fewer than 14 051 claims for amounts ranging from a few thousand rands all the way to its cover (plus extended cover) limit of R1.5 billion. In a November 2021 update the insurer con rmed that 80% of the claims received were for R1 million or less, leaving a staggering 2 000 claims that exceeded that amount. There were also dozens of claims for amounts of more than R60 million.

The state-owned insurer elded a fair amount of criticism in the latter parts of 2021 for their slow progress in settling valid claims. However, their operational performance should be assessed through the lens of a one-in-100 year loss event, with the number of claims received in 2021 exceeding by multiples the record number received in any of its prior years of operation, and all crammed into a few weeks.

Steps taken to expedite the claims pay-out process included increasing the mandates of selected agent companies, increasing the Sasria sta complement, and turning to South Africa’s insurance broker network to assist clients with claims. A number of agent companies –traditional insurers – were engaged and mandated to facilitate claims of up to R1 million, and had by 16 November paid out more than R1.8 billion of a R2.6 billion oat advanced by Sasria. The insurer promised to settle 80% of all claims by December, and 80% of claims of up to R60 million by the end of March 2022. Some of the larger and more complex claims could take up to 18 months to

nalise; but it will take even longer for all claimants to rebuild or replace their assets. To ensure that its claims pay-outs feed back into the a ected areas of the economy, the special-risks insurer has taken the unusual step to make progress pay-outs as a business’s rebuild process advances rather than making once-o , up-front cash pay-outs. The actual mix of cash and progress payments will obviously vary from one policyholder to the next.

Economic setback

Actions have consequences – the phrase holds true for the debacle that unfolded over a couple of weeks in July 2021. In this case, the actions of a few thousand hooligans knocked an estimated 0.7-0.9% from South Africa’s 2021 GDP, according to National Treasury’s August 2021 estimate. Aside from the R50 billion in total damages, this catastrophe will, over the years, contribute to incalculable indirect and missed-opportunity costs due to dented business con dence and other negative spin-o s. The rioters’ actions also mean that millions of insured businesses and individuals will pay more for riot and

strike insurance cover on material goods. On top of this there is the loss of life, the resultant dip in investor con dence, the risk to upwards of 150 000 jobs, and the fact that many small businesses may be forced to shut their doors for good.

“There are a lot of smaller businesses in a ected malls that will never open again, which means there will be a vacuum in an important sector of the economy that employs far more labour than larger businesses,” says Seamus Casserly, CEO at insurance brokerage Lockton SA. This is terrible news in a country where the o cial unemployment rate is above 35% and rising.

Hefty rate increases

Sasria’s rate increases, which took e ect from 1 February 2022, will impact commercial insurance policyholders, and is probably the easiest of the

aforementioned consequences to put a rand value to. The cost of insuring a heavy commercial vehicle (HCV) against loss or damage due to civil commotion, riots, strikes and terrorism will soar by 1 736%, while the cost for insuring a light commercial vehicle will be around 15.5 times higher. A small business that owns a HCV truck valued at R2 million will have to fork out R6 901 a year compared with R376 previously!

The premium for special-risks cover is added to your policy over-and-above the commercial premium you pay to your main insurer. In practice, your insurer will charge its premium to cover you against loss or damage to your truck due to an accident, re, hi-jacking and theft before including the Sasria riot and strike premium as an additional line on your policy. Sasria, and not the main insurer, is wholly responsible for this line of cover. You can take out

ordinary insurance cover without adding the Sasria line, but it is not recommended. Commercial building owners face steep hikes too. The Sasria rate for Fire Commercial will increase from 0.0174% per R1 on cover per year, to 0.02906%, an increase of 67%. There is limited respite for certain types of buildings thanks to the introduction of a new category called Fire Commercial O ce, speci cally aimed at commercial o ce buildings. This concession will not apply where the occupancy is more hazardous than o ces – for example, where there is a restaurant or canteen in the block. Comparing two commercial buildings valued at R10 million each, with one being in an industrial block and the other in a corporate o ce park, this cover will cost R2 906 and R2 088 per year respectively.

There is some good news for individuals. First, domestic property cover will not

increase at all. And second, although the Sasria rate for private motor vehicles is signi cantly higher, the average motorist will hardly notice the increase. “Personal lines clients have not been a ected, except for motor vehicles; but this cover was not particularly expensive in the past,” says Casserly.

Why such significant price action?

“The rate increase was necessary to ensure the sustainability of Sasria’s insurance model that provides essential cover that is not otherwise available, and to allow them to retain their good standing as a licenced insurer,” says Barry Taylor, chairman of non-life Insurance at the Financial Intermediaries Association of Southern Africa. Simply put, the R32 billion claims burden has put Sasria on unsteady nancial footing and it needs to rebuild its balance sheet. When the disaster took place, the insurer held around R8 billion in reserves, R2 billion in annual premiums received, and about R6 billion in reinsurance cover, leaving it no choice but to turn to its only shareholder, the SA government, for assistance.

Government did its part by chipping in R3.9 billion shortly after the disaster, and allocating another R11 billion in the November 2021 Medium Term Budget Policy Statement. In fact, one of the few positives to emerge from this event is that the government ful lled its role as insurer of last resort e ectively and e ciently. In addition to the challenge of rebuilding its balance sheet, Sasria faces steep increases in its own reinsurance premiums, which it has no choice but to pass down the line. Local rms face other insurance price pressures too. Casserly says that large businesses usually purchase additional insurance cover called riot wrap cover in the event their insurable interests exceed Sasria’s cover limits. The terms o ered by Sasria for an extra R500 million or R1 billion have not changed materially, up by around 30% year-on-year; but larger limit riot wrap covers out of the London market are up by 500% or more, assuming you can get them. “These covers o er protection for loss to

a rm’s net pro t and inter alia the impact of riot or strike disruptions to that rm’s supply chain,” Casserly says.

The burden falls on the consumer

Why should you care as an individual?

After all, your motor vehicle insurance is only going to go up by a few rands per month; even your monthly fuel price hike is more dramatic! The short answer is that national retailers and businesses operating in the logistics and transport sectors will inevitably pass their escalating commercial insurance costs on to you, the endconsumer. And that means all consumers will be paying more for goods and services in the coming years.

So, is there any way for businesses to mitigate these soaring costs? They might choose to forfeit or reduce their riot and strike cover; but that would be nancial suicide in a country with South Africa’s track record. Municipal IQ, which tracks riots triggered by poor government services, joblessness and poverty, recorded 1 641 such events in the 10 years to 2019. The last two years saw subdued protest action thanks to the nationwide lockdowns to tackle the Covid-19 pandemic, but an uptick is expected in 2022 and beyond. It is also commonplace for trucks to be looted and torched on sections of the busy N3 route between Durban and Johannesburg.

Could firms not shop around for better rates?

“There is legislation in place that makes Sasria the sole provider of political risk cover; even if you go o shore to increase your limits, you have to get their approval rst,” says Casserly. Local insurance brokers also explored ways to renew their commercial clients’ riot cover before the 1 February deadline, to no avail. One thought was to quickly renew the client’s Sasria cover and lock in a better annual rate. But that would have meant cancelling the client’s main policy too.

“Sasria cover, other than for motor vehicle insurance, goes along with and follows the underlying insurance policies; it is thus unlikely (if not impossible) for a policyholder to separate or segment

the Sasria coupon renewal from their main insurance policy renewal,” says Taylor. Although technically possible, a rushed reinstatement makes little sense for commercial policies, especially given the relatively small size of the Sasria premium compared with the main insurance premium. It seems, therefore, that businesses will have to take these rate hikes on the chin.

Business lessons learnt

The events that played out in July last year, and Sasria’s response to the losses, teach two somewhat contradictory lessons. First is that the insurance industry plays an essential role in providing the capital needed to rebuild businesses and prevent the total economic collapse of a district or region. Second is that as much as insurers strive to return policyholders to a preloss position, there are always gaps that business owners and individuals will have to fund from their own account.

“Insurers excel at the material damages side of things, but consequential losses are usually open to interpretation,” says Casserly. He says that even insured businesses may su er losses in excess of their cover due to an inability to supply goods or services for a period of time, the impact of lengthy closures on customer bases, or the inability to collect rent on their premises, among other reasons. Part of the problem is that indemnity and rebuild periods on policies are often too short.

One thing is certain: insuring commercial assets against civil commotion, riots, strikes and terrorism will be far costlier in 2022 than previously. The e ect will vary from one business to the next, with large commercial property owners and logistics and transport rms su ering heavily. Imagine you are a small business with a eet of 10 large pantechnikons plying the route between Cape Town and Johannesburg. Your operating costs could soar by R65 000 in 2022, just to cover your eet from a single special risk!

Gareth Stokes is a freelance nancial journalist who specialises in insurance.

144 Good reasons to consider

Counterpoint…

Counterpoint Asset Management is honoured to be recognised for the exceptional investment outcomes it has delivered to clients.

2021 Raging Bull Award

- Best South African General Equity Fund (over three years)

2021 Raging Bull Award

- Best South African General Equity Fund on a risk-adjusted basis (over five years) CounterpointBoutiquePty(Ltd)isanAuthorisedFinancialServiceProvider(FSP44508).

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COUNTERPOINT DELIVERS EXCELLENT OUTCOMES ACROSS SELECTED INVESTMENT STRATEGIES

Counterpoint Asset Management, founded in 2012, is a multistrategy asset management company situated in Cape Town.

Over the years, the company has developed into a multistrategy investment business which places the highest priority on the stewardship of clients’ assets. Paul Stewart, Chief Executive of Counterpoint says, “we have carefully selected the areas of investment expertise where we believe we have a competitive advantage. The company has developed the necessary scale to be able to deliver excellent outcomes for its clients across these investment strategies and mandates”.

Counterpoint’s controlling shareholder is Merchant West Holdings (Pty) Ltd, one of the largest and most successful independent financial services businesses in South Africa. Counterpoint is well-diversified, stable and has enjoyed pleasing growth emanating from its growing domestic and global client base.

Over the years Counterpoint has acquired and consolidated other investment businesses into its operations in order to add depth and scope to the investment team. The company now boasts excellent investment skills across the value, quality, dividend income, listed property and fixed income specialties.

One of the most successful strategies at Counterpoint has been its value franchise, managed by the highly experienced investor Piet Viljoen.

According to Viljoen, “The Counterpoint SCI Value Fund employs a strict value philosophy. Our interpretation of value means only buying shares that are trading below their intrinsic value, with a comfortable margin of safety. This strategy often requires investors to be patient and unmoved by shortterm news flow and sentiment, but has historically delivered exceptional outcomes for investors who are able to stay committed to their investment strategies.”

In managing the Fund, the fund manager employs a sensible risk management process which focusses on assessing business risk, market risk and applying sound diversification principles. The Fund invests in listed equities as well as assets with equity-like returns, but they must be listed in South Africa. The manager believes investors can and should make their own decisions as to what proportion of their assets should be invested in SA, and can then allocate across a pure South African and pure global value strategy based on their requirements.

The Counterpoint SCI Value Fund has recently celebrated its 10th anniversary. Since inception in January 2012, the Fund has (net of all costs) outperformed its benchmark, the FTSE JSE All Share Index by 0.6% per annum, and the ASISA SA Equity General peer group fund average by 3.97% per annum over that period. The Fund delivered exceptional returns of

Paul Stewart CEO

43.61% in 2021. This excellent performance can be attributed to a couple of reasons including sensible risk management, and the ability to invest across the size spectrum of companies listed on the JSE.

Smaller companies have been – and continue to be – very attractively valued and will therefore likely deliver better returns than larger and more widely held companies that are more fully priced. The Fund has had an overweight position in smaller companies since the pandemic-related sell-off in March 2020.

Viljoen noted that, “MTN has been a big recent winner for the Fund as well as Glencore. Both stocks were neglected by the market due to bouts of bad news. Looking forward there is much to consider including the possible effects of rising inflation and higher interest rates.”

In relation to the value strategy managed by Counterpoint, Stewart says, “we believe that equities are reasonably good hedges against inflation, particular equities that have a short duration, i.e. their cash flows lie immediately ahead of them, and are not reliant on many years of speculative growth ahead of them as is the case in high growth stocks. This is good for “value” stocks as they generally don’t discount a lot of growth far out into the future, meaning the present value of their projected cash flows are not subject to being diminished by rising interest rates – as opposed to “growth” stocks that do discount growth far out into the future. We therefore think that the next few years, where central banks may well hike rates in response to rising inflation, will in all probability offer nice tailwinds to the value strategy.”

Piet Viljoen Portfolio Manager

CLARITY FROM SARS ON PENSION PRODUCTS

The South African Revenue Service’s Binding General Ruling 58 (BGR 58), which sets out the approvals needed from SARS on any annuity you buy at retirement, was made nal last year. It follows the withdrawal of SARS’s Guidance Note 18 (GN 18), which provides that any annuity on retirement must be compulsory, non-commutable, payable for and based on the lifetime of the retiring member or the value of the member’s bene t, if applicable. It may not be transferred, assigned, reduced, hypothecated or attached by creditors, according to sections 37A and 37B of the Pension Funds Act. Any combination of annuity methods is permitted.

The provisos in the de nitions of the di erent types of retirement funds in the Income Tax Act permit the SARS Commissioner to prescribe additional limitations and conditions for the approval of rules of retirement funds. This discretion may be exercised whenever the Commissioner deems it necessary. This BGR 58 con rms the exercise of the Commissioner’s discretionary power in relation to annuities purchased on retirement.

In essence, BGR 58 deals with three main issues regarding annuities at retirement which is in the discretion of the

Commissioner to approve, namely:

1. The permitted methods of purchasing an annuity;

2. The non-commutability of annuities and their payment for the lifetime of the member; and

3. The creditor protection applicable.

1. PERMITTED METHODS

OF BUYING AN ANNUITY

GN 18 and GN 18A, which were withdrawn in February 2021, laid down SARS’s requirements when an annuity is purchased from an approved retirement fund;

• In the name of the retiring member; or

• In the name of the retirement fund; or

• Paid directly by such retirement fund

Unlike GN 18, BGR 58 now con rms that, since the withdrawal of GN 18, any combination of the aforementioned methods may be provided, and multiple annuities of each type may be provided for in the rules of a retirement fund. There is no longer a restriction on using multiple annuity methods to provide retirement income.

Regulation 39 of the Pension Funds Act requires trustees to have an annuity strategy for members. The de nitions of each type of retirement fund state that up to one-third of the member’s total

retirement interest may be commuted for a single payment and the remainder must be paid in the form of an annuity (including a living annuity). However, the provisions in the Act do not prescribe whether the annuity must be provided by the retirement fund or purchased from an insurer, nor do they prescribe the nature or characteristics of such an annuity.

In addition to BGR 58, the Taxation Laws Amendment Bill of 2021 proposes to include this right in the ITA too. There is a proposed proviso in the ITA however (which is not in BGR 58), which will limit the capital value of each annuity purchased to not less than R165 000. This is to avoid a multiplicity of small annuities in order to avoid the annuity requirements, which would allow the small annuities to be commuted for a lump sum. The implementation date is expected to be 1 March 2022.

2. NON-COMMUTABILITY AND PAYMENT

BGR 58 notes that an annuity must be compulsory, non-commutable, payable for and based on the lifetime of the retiring member “or the value of the member’s retirement interest”, if applicable.

Comment: As we know, a living annuity is commutable when the capital assets of

Jenny Gordon explains how the taxman treats annuity products you buy for an income in retirement

the living annuity reach the level of R125 000 or less.

The wording in BGR 58 has the wording “…or the value of the member’s retirement interest, if applicable.” A “member’s interest” is the value of the retirement bene t from the retirement fund and is not the capital of each living annuity. Although the terminology used should have been di erent, it seems that the intention is to recognise that if the capital of a living annuity is su ciently small to cause the capital to fall below the de minimis amount of R125 000, then the annuity is commutable and won’t be payable for the lifetime of the annuitant.

There is no legislation which provides for a guaranteed annuity to be commutable. GN 16, which provided for it under certain conditions, has been withdrawn. So, a guaranteed annuity is no longer commutable during the lifetime of the member.

3. CREDITOR PROTECTION BGR 58 contains the acknowledgement that an annuity may not be transferred, assigned, reduced, hypothecated or attached by creditors as contemplated by the provisions of sections 37A and 37B of the Pension Funds Act. Section 37A states that “ save to the extent permitted by this Act, the

Income Tax Act or the Maintenance Act, no bene t provided for in the rules of a registered fund ( including an annuity purchased or to be purchased by the said fund from an insurer)” …will be subject to the creditor protection provisions of the section. The Commissioner interprets section 37A being applicable to all the annuities which can be purchased at retirement. This BGR applies from 26 February 2021, until it is withdrawn, amended or the relevant legislation is amended.

Jenny Gordon is Head: Technical Advice, Alexander Forbes Investments, Product and Enablement.

GLOBAL INFLATION IS AT 30-YEAR HIGHS VIEWS FROM AN INVESTOR, NOT AN ECONOMIST

Morningstar investment experts Dan Kemp and Marta Norton consider the trajectory inflation has suddenly taken, in the US especially, and the implications for investors

It is no secret: in ation is upon us. It is now considered the biggest tail risk among investors, with a barrage of predictions making their way into your inbox. We look at in ation as investors, not economists. This has four big di erences:

1. We use probabilities instead of predictions;

2. We care more about the long term than the short term;

3. We value in ation-hedging assets relative to the investment universe; and

4. We focus on robustness over relationships.

We approach this not with fear, but with well-protected portfolios. Understanding the full array of potential in ation pathways is key. When assessing risk, the range of potential outcomes is arguably wider than usual, so portfolio robustness is

the tool of choice.

Why inflation is worthy of discussion

In ation can strike fear into the heart of the average household. Rising prices at the gas pump or in the grocery store are disconcerting, particularly when wages don't seem to be keeping pace. With the most recent headlines trumpeting a level

of in ation not seen for the past three decades, it's no surprise this concern is especially high now.

As investors, the concern is magni ed, especially if it feels like the ability to reach important nancial goals could be in jeopardy. We nd client conversations usually stem from three layered questions:

• Why does in ation even matter? In nancial circles this is sometimes assumed, but it is always worth revisiting. For example, higher in ation tends to lead to higher interest rates, which hurt corporate pro ts and cause losses for bond holders. It also means higher input costs and a loss of purchasing power, hurting companies that rely on future pro t growth unless they can pass on those higher costs.

• How can I tell what in ation is going to do? This is a danger zone, as even the most seasoned professionals have a terrible track record. We try to steer people toward assigning probabilities instead of making predictions. Putting all your chips on one outcome is a high-risk strategy, and it goes against the principles of good investing.

• What can I do to protect against in ation?

During in ationary spikes, people tend to gravitate toward in ation-protected assets. However, that increased demand often means the cost of such "insurance" is high. That leaves investors facing one of two risks, depending upon what happens to

in ation and how portfolios are positioned.

The rst risk is that investors fail to prepare for high in ation and nd that their wealth falls in real terms. The second is that investors mistakenly prepare for higher in ation only to nd in ation stays low and they su er unusually large losses because they overpaid for the protection.

Inflation views as investors, not economists

The real victim of high in ation tends to be investors, who see a loss of purchasing power and must generate a higher return simply to maintain the value of their capital. It is therefore unsurprising that in ation periodically becomes the dominant topic of conversation.

It is worth reminding ourselves of the key features of in ation that are often missed when investors discuss the topic. The most important point to remember is that in ation does not measure a change in prices, but rather the rate of change of prices, typically over a 12-month period. Consequently, the impact of in ation to an investor is less intuitive than other price measures. Consider a basket of goods and services that doubles in price over the next month and then maintains those prices for the next 12 months. At the end of that 13-month period, the in ation of that basket would be recorded as zero, even though we would be considerably poorer than we were at the start of the period. In ation therefore requires momentum to maintain its current rate.

Also, persistent in ation has a compounding e ect that can signi cantly erode the value of your capital, even when the headline number appears to be low. The persistence of in ation is therefore even more important than the current rate. So it is unsurprising that economic commentators are more focused on the in ation trend than they are on its current level, and it explains why forecasting in ation appears to be an important activity for investors.

High inflation is probable, but not a prediction

At Morningstar, we avoid forecasting the rate of in ation and instead consider the

impact of a range of in ation scenarios on our portfolios. While this may appear to be a subtle distinction, it has a signi cant impact on the way we think about portfolios.

For example, as economies continue to recover from the pandemic, there is a decent probability we'll see higher in ation over the next year or so. A part of this will be due to the fact that we’re coming o from a low base last year. But that doesn't mean we carry a 100% con dence rate. Another pathway is that central banks feel compelled to react quickly, sti ing consumer demand and causing in ation to fall.

Adding to the uncertainty, central banks have tweaked their mandates to be more tolerant of in ation overshooting targets and have kept in place extreme levels of stimulus, even in the face of surging in ation pressures and economic rebounds. The ingredients are present for a policy mistake, with high levels of debt incentivizing governments to keep interest rates as low as possible for as long as possible in order to prevent a blow-out in interest payments.

You'll nd economists that sit on all sides of the debate, but we don't see much value in their expert views. The temptation to forecast lies in the fact that in hindsight, the path of history appears deterministic and predictable. Investors therefore fall into the trap of believing that prediction is a worthwhile exercise. In reality, the future is uncertain and, consequently, should be viewed as a range of possible outcomes rather than a single event. As some of these outcomes are more likely than others, a useful forecast will always have a probability attached to it.

Long-term inflation is less known (and potentially unknowable)

Most of the in ation chatter is currently about short-term challenges. This includes supply-chain issues, the "Great Resignation" (employee demand) and pent-up savings from the pandemic. These are all important parts of in ation, but they are all quite short-term in nature.

What matters more is the long-term dynamic. High in ation outbreaks are

uncommon, and your chances of correctly forecasting such big structural shifts are not good. What makes it challenging is the complexity of our highly integrated, multi-polar global economy and the slowmoving nature of structural changes. There is scant evidence of forecasters getting these big calls right and far more evidence of them getting it wrong.

There are also some big questions around the conventional understanding of the relationship between in ation and monetary policy. So we approach the topic very humbly. For example, the impact of unprecedented stimulus from governments and central banks needs to be balanced against the falling velocity of money from people and businesses limiting their spending.

We'd simply say that the range of potential outcomes is wide. As part of this assessment, we can’t disregard the threat of higher long-term in ation hurting both equity and bond investors — which needs to be protected against.

The value of inflation-hedging assets

The role of the investor is to estimate the impact of various scenarios, considering which of those scenarios are worth ‘insuring’ against and which are not. The price of the ‘insurance’ will usually re ect

the consensus view of the most likely outcome but occasionally will re ect the most ‘vivid’ outcome instead. This latter situation tends to occur during periods of high emotion among investors. When the dominant emotion is greed, it is likely that investors will underprice negative outcomes, and the reverse is true when the dominant emotion is fear. Investors able to think independently and adopt a longterm perspective can use these periods to purchase insurance that is unusually attractively priced or avoid insurance that is overpriced but popular among other investors.

We used this approach to the bene t of clients in the second quarter of 2020, when investors became unusually complacent about future in ation in the face of the pandemic. It seemed clear to us that this was leading to the underpricing of assets that provide protection against in ation (such as in ation-linked government bonds). We therefore added these holdings to our portfolios and witnessed the price rise sharply (compared to conventional government bonds) over the subsequent six months.

Positioning for portfolio robustness

Instead of trying to guess what in ation will do next, investors are better served by

building portfolios composed of the most attractively valued investments they can nd and the least expensive diversi ers. In this sense, our investment expertise lies in our understanding of potential in ation pathways and how it may impact our portfolios. So instead of basing an investment strategy on an in ation view, we'd highlight two strategies that can tilt the odds in your favor:

• The rst is that we are biasing portfolios to better value opportunities that have a bigger margin of safety priced in. These investments are more likely to provide higher returns and o set any higher in ation. Energy equities, UK equities, and emerging-markets bonds stand out in our research, and they are featured in our Morningstar managed portfolios and funds.

• The second is to test portfolios for a wide range of di erent economic and market scenarios, not just high in ation. This can reveal which scenarios are best and worst for performance as well as less obvious sources of diversi cation. From this type of analysis, we can still see a role for highquality government bonds in speci c de ationary surprises. Foreign currency can also be e ective as a diversi er against speci c in ation risks and is an underrated part of portfolio construction.

Final thoughts

In ation is simple conceptually but complex as an investor. The challenge is that most investors are naturally drawn to the most vivid outcome and consequently nd it challenging to adopt a contrarian position when it makes the most sense to do so. It is for this reason that describing the future probabilistically is not only essential for investment decision making but also for communication. Encouraging clients to consider alternative outcomes from the dominant narrative while also placing a probability on those outcomes can help them stay on track through any environment.

Dan Kemp is Global Chief Investment O cer of Morningstar Investments and Marta Norton, Chief Investment O cer of Morningstar Investments Americas.

THE OLD MUTUAL GLOBAL EQUITY FUND RANKED

Consistent outperformance over the long term coupled with the recent market performance contributed to the Old Mutual Global Equity Fund taking top position among its peers. *Morningstar has ranked the fund amongst the top 10 global equity active funds in South Africa for delivering the highest return over 10 years to December 2021, generating a return of 21.9% per annum.

Launched in May 1995, the Old Mutual Global Equity Fund is a rand denominated fund holding a well-diversified portfolio with an average of 450 shares out of a universe of more than 5 000 shares in developed markets globally, diversified across sectors, assets and geographies.

It is also the number one ranked fund in the sector with annualised performances of 13.8% over 15 years and 11.0% over 20 years, with a portfolio size of R26bn at 31 December 2021.

Unit trusts are an affordable way to diversify and invest in quality companies across the world. Invest offshore with the Old Mutual Global Equity Fund and let your money go globe-trotting from as little as R500 a month, offering you a wide choice of asset classes and flexibility, without worrying about getting a tax clearance certificate from SARS!

Disclaimer Old Mutual Unit Trust Managers (RF) (Pty) Ltd is a registered manager in terms of the Collective

Investment Schemes Control Act 45 of 2002. The fund fees and costs that we charge for managing your investment are set out in the relevant fund’s Minimum Disclosure Document (MDD) or table of fees and charges, both available on our public website, or from our contact centre. The Net Asset Value to Net Asset Value figures are used for the performance calculations. The performance quoted is for a lump sum investment and in respect of the Old Mutual Global Equity Fund. The performance includes income distributions prior to the deduction of taxes and distributions are reinvested on the ex-dividend date. Actual performance may differ as a result of actual initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. Past performance is not a guide to future performance. Annualised returns are the weighted average compound growth rate over the performance period measured. The actual highest, average and lowest 12-month return figures since inception to 31 December 2021 are 77.0% (highest), 15.4% (average) and -40.3% (lowest). The fund was launched on 17/05/1995. Morningstar and/or Old Mutual Investment Group calculated the performance of the fund as at 31 December 2021. Old Mutual is a member of the Association for Savings & Investment South Africa (ASISA).

HOW TO DO LONG TERM

Morgan Housel explains why investing for the long term is easier said than done – and what to do about it

“Nothing will ever separate us. We will probably be married another 10 years.” –Elizabeth Taylor, ve days before ling for divorce.

Long-term thinking is easier to believe in than accomplish. Most people know it’s the right strategy in investing, careers, relationships – anything that compounds. But saying “I’m in it for the long run” is a bit like standing at the base of Mount Everest, pointing to the top and saying “that’s where I’m heading”. Well, that’s nice.

Now comes the test.

Long term is

which is why it’s more lucrative than many people assume. Everything worthwhile has a price, and the prices aren’t always obvious. The real price of long term – the skills required, the mentality needed – is easy to minimise, often summarised with simple phrases like “be more patient”, as if that explains why so many people can’t.

To do long term e ectively, you have to come to terms with a few points.

• The long run is just a collection of short runs you have to put up with. Saying you have a 10-year time horizon doesn’t exempt

next 10 years. Everyone has to experience the recessions, the bear markets, the meltdowns, the surprises and the memes at the same time.

So rather than assuming long-term thinkers don’t have to deal with nonsense, the question becomes: how can you endure a never-ending parade of nonsense?

Long-term thinking can be a deceptive safety blanket that people assume lets them bypass the painful and unpredictable short run. But it never does. It might be the opposite: the longer your time horizon, the more calamities and disasters you’ll experience. Baseball player Dan Quisenberry once said: “The future is much like the present, only longer.”

Dealing with that reality requires a kind of alignment that’s easy to overlook.

• Your belief in the long run isn’t enough – your investors, co-workers, spouses and friends have to sign up for the ride. An investment manager who loses 40% can tell its investors “it’s okay, we’re in this for the long run”, and believe it. But the investors may not believe it. They might bail. The rm might not survive. Then, even if the manager turns out to be right, it doesn’t matter – no one’s around to bene t.

The same thing happens when you have the guts to stick it out, but your spouse doesn’t.

Or when you have a great idea that will take time to prove, but your boss and co-workers aren’t as patient.

These are not rarities. They’re some of the most common outcomes in investing.

A lot of it comes from the gap between what you believe and what you can convince other people of – intelligence versus storytelling.

People mock how much short-term thinking there is in the nancial industry, and they should. But I also get it: the reason so many nancial professionals stray towards short-termism is because it’s the only way to run a viable business when clients ee at the rst sign of trouble. But the reason clients ee is often because investment managers have done such a poor job communicating how investing works, what their strategy is, what clients should expect as investors, and how to deal with inevitable volatility and cyclicality.

Eventually being right is one thing. But can you eventually be right and convincing to those whose support you rely on? That’s completely di erent, and easy to overlook.

• Patience is often stubbornness in disguise. Things happen almost daily now that would have been inconceivable just a decade ago (budget de cits, interest rates, meme stock valuations, retail investor

participation, etc.). The world changes, which makes changing your mind not just helpful but crucial.

But changing your mind is hard, because fooling yourself into believing a falsehood is so much easier than admitting a mistake.

Long-term thinking can become a crutch for those who are wrong but don’t want to change their minds. They say “I’m just early” or “everyone else is crazy” when they can’t let go of something that used to be true, but the world moved on from.

Doing long-term thinking well requires identifying when you’re being patient or just stubborn. Not an easy thing to do. The only solution is knowing the very few things in your industry that will never change and putting everything else in a bucket that’s in constant need of updating and adapting. The few (very few) things that never change are candidates for longterm thinking. Everything else has a shelf life.

It’s hard to know how you’ll react to decline. If I say, “how would you feel if stocks fell 30%?”, you’ll probably picture a world where everything is the same as it is today except stock prices are 30% lower. And in that world, it’s easy to say, “that would be ne, I’d even see it as an opportunity”.

But the reason stocks fall 30% is because there’s a terrorist attack, or the banking system is about to collapse, or there’s a pandemic that might kill your whole family.

In that context, you might feel

di erently. You might switch from an opportunistic mindset to a survival mindset. You might not have the endurance you once imagined.

• Long term is less about time horizon and more about exibility. If it’s 2010 and you say, “I have a 10-year time horizon”, your target date is 2020. Which is when the world fell to pieces. If you were a business or an investor, it was a terrible time to assume the world was ready to hand you the reward you had been patiently awaiting.

A long time horizon with a rm end date can be as reliant on chance as a short time horizon.

Far superior is just exibility.

Time is compounding’s magic whose importance can’t be minimised. But the odds of success fall deepest in your favour when you mix a long time horizon with a exible end date – or an inde nite horizon.

Ben Graham said: “The purpose of the margin of safety is to render the forecast unnecessary.” The more exibility you have, the less you need to know what happens next.

And never forget Keynes: “In the long run we are all dead.”

Morgan Housel was a presenter at the virtual Allan Gray Investment Summit in November 2021. He is a partner at Collaborative Fund in the US and an expert in behavioural nance and investing history.

WHEN A HOBBY BECOMES A BUSINESS

Kerry King warns of overcommitting yourself financially, and avoid dipping into your retirement savings

The pandemic continues to have farreaching negative consequences on the economy and on the livelihood of millions of South Africans. Some very successful business owners and professionals too have experienced unforeseen setbacks in the face of the economic slowdown and growing household debt.

The South African Reserve Bank (SARB) states South Africans are spending 75% of

their take-home pay on debt, but what are South Africans borrowing money for?

While many loans are being sought merely to make ends meet, studies and recent polls also indicate that large numbers of South Africans are nding alternative solutions to supplement their income – namely, resorting to new ventures to build new dreams.

Many South Africans have seen opportunity within the current economic

landscape and hope to take their hobbies to the next level, but they should keep their nancial fundamentals in place as they go through career transition and diversi cation.

OPPORTUNITIES FOR NEW REVENUE STREAMS

The restrictions imposed by the pandemic have greatly accelerated online activity, and there has been a paradigm shift in

the workplace, with huge percentages of people now working from home. With much more time spent in front of computers, many have tried their hand at online trading. Others have dedicated more time to developing new skills and revenue streams.

A Quarterly Labour Force Survey (QLFS) reported that between April 2020 and April 2021, the informal sector increased by 18% and now makes up 18% of the total

employed workforce in South Africa, and some studies indicate that as many as 40% of middle-class South Africans have started some form of side business to o er services and products online.

The rise of social media, particularly the role of Instagram, has greatly facilitated the process of getting products to market and all over the country, there has been a notable rise in the number of markets which provide an outlet for small businesses to showcase and sell their products.

AVOID OVERCOMMITTING FINANCIALLY

One of the biggest temptations when starting a new venture could be to raise a loan or use personal nances to fund such a business, when that should be dedicated to covering essential living expenses. Unless you have absolute certainty of the sustainability and growth potential of your new side venture into a formal business, this would be an unwise decision.

With the failure rate of start-ups notoriously high, it’s highly inadvisable to use retirement funds to start a business. According to recent statistics, only about 10% of start-up businesses succeeded in 2019. Research concludes that 21.5% of start-ups fail in the rst year, 30% in the second year, 50% in the fth year and 70% in their tenth year.

If you intend to leave your formal employment and cash out of your retirement fund, consider the risk you are taking. When cashing out, you are also forfeiting the opportunity to grow those funds through compound interest. Even if the business is successful in the future and you decide to start a new retirement fund, you will likely be starting from scratch.

Despite this, the enterprising individual should not be deterred from starting small and self-funding the

business as and when it grows. Loans are di cult to obtain and, generally, loans for a new business are extremely costly. It is always advisable to consult a trusted nancial adviser if you are considering giving up your full-time job to develop a new business, and that adviser will likely encourage you to keep your retirement funds separate from the business.

CAN YOU ALWAYS SELL?

In some cases, people have developed successful small businesses and now seek buyers. In such cases, it is important for the business to be able to function completely independently of the owner, which will go a long way in maximising the valuation of the business.

We often see small businesses where the owner holds all the client relationships or is the expert in one particular aspect of the business, such as the production line. This does not make it an attractive buying proposition, unless the owner is prepared to stay in the business for an extended period.

BE REALISTIC

Founding, managing and growing any business takes a great deal of hard work, discipline and dedication.

Do your research thoroughly before you make decisions. Take an honest and realistic look at yourself, your resources, your capabilities and your market. Make a clear distinction between your retirement savings and capital available to start and grow your business.

While our country would signi cantly bene t from more successful entrepreneurs, it’s important that those individuals minimise start-up risks for themselves as much as possible, so that they are not left stranded should things not work out.

Kerry King is an advisory partner and wealth management specialist at Citadel.

WHEN IT COMES TO ADMINISTERING A TRUST, SARS IS YOUR FRIEND

For once we are not talking about South African Revenue Services. For the purposes of this article, SARS refers to a foolproof trust administration process which will ensure you don’t fall foul of the law or the taxman. Ricardo Teixeira explains further

In this article I will seek to debunk a very important myth by explaining why trust accounting is not trust administration.

If you think that administering a trust is all about maintaining accurate accounting records, then this is for you.

Don’t get me wrong. Annual nancial statements are great accounting reports that show the nancial position and results of a trust. But they do not meet the benchmark or regulatory requirement for trust administration. In fact, nancial statements are not even a requirement

in terms of the Trust Property Control Act and certainly do not, on their own, serve as evidence that a trust has complied with the requirements of the Act.

A trust is not a company

Before we go any further, it is vital to understand that a trust is completely di erent to a company. This is the rst mistake many people make when administering a trust, so perhaps we should take a look at some of the key di erences.

• A company is a legal entity de ned by the Companies Act and regulated by the Companies and Intellectual Commission (CIPC). All companies have to submit detailed nancial statements, among many other requirements. A company is owned by its shareholders, but it stands independent of them and can be sued in its own right. A company applies clearly de ned levels of authority in decision making. Decisions are typically made by majority vote.

• A trust only comes into existence through its trust deed, a contractual arrangement giving instructions to trustees. Every trust is di erent. The high-level requirements and duciary obligations of trustees are de ned in the Trust Property Control Act, but all decisions and actions taken by the trustees must be made with reference to the trust deed and not the Act.

A trust is not a legal entity in its own right, but rather an accumulation of assets that is jointly owned by the trustees (which

can be individuals or legal entities).

A trust cannot sue or be sued. There are no delegated levels of authority in trusts, so there can be no “main trustee”. All decisions must be made jointly by all trustees, and trusts are said to be “run by resolution”.

Administering a trust is, therefore, not in any way similar to operating a company. Trustees have a duciary responsibility under the Trust Property Control Act to administer the trust for the bene t of the identi able bene ciaries.

Now it’s time to reveal how we can use “SARS” as our blueprint for trust administration..

S is for Set up

E ective trust administration starts with understanding the trust deed. Each trust is unique, so you need to set up your administration in accordance with the trust deed. This will cover what trustees can, can’t and must do; how often meetings must be held; and who the bene ciaries are.

A trust must have a bank account and the founding donation stipulated in the trust deed (even if it’s R100) must be deposited into this bank account. It’s vital to make sure you have a Letter of Authority issued by the Master of the High Court, which con rms the trustees. You also need to make sure you keep an asset register which clearly identi es all trust assets and how they were acquired by the trust.

A is for Act

Trustees need to take action. Once you’ve established the administrative basis for the trust, you need to make sure that you follow the instructions set out in the trust deed. Right at the top of this list is ensuring that all trustees collectively and actively manage the trust assets in the best interests of bene ciaries. It’s especially important to avoid having “puppet” or “dominant” trustees. Each trustee needs to be actively involved in managing the trust assets for the bene t of the bene ciaries.

This means meeting as often as the trust deed stipulates (annual meetings are a minimum requirement) and making sure that decisions are made according to the Joint Action Rule. Internally, trustees can debate and disagree over decisions, but to the world at large your resolutions represent the trustees’ single view and decision. And remember, only individuals listed in the Letter of Authority lodged with the Master have authority to act on behalf of the trust. A change of trustees is only e ective once registered with the Master.

R is for Record

Document, document and document all your actions as trustees. You need to have a paper trail that provides documentary evidence of the actions, decisions and transactions made by the trustees. The following documents need be kept for at least ve years after the trust has been deregistered:

• Resolutions

• Minutes

• Asset register

• Summary of transacting entities

• Disclosure of connected persons Trusts are run by resolutions, which

must be signed by all trustees and cannot be backdated! All this record-keeping is demanding, but technology has made it much easier. A cloud-based platform gives all trustees a single view of the trust le from anywhere in the world. Having a single view of the trust records is an imperative building block for e ective administration.

S is for Statements

Reporting and preparing statements ends the cycle of administration. Trustees are accountable to each other, the Master of the High Court, the bene ciaries of the trust and the taxman. Unlike in a company, a trust’s annual nancial statements should separate each trust asset into its own silo with its own schedule of income and expenditure. Not all traditional accounting packages have this capability and this is an area that often trips up trustees.

Annual nancial statements are a re ection of the actions taken by trustees in relation to the trust assets. Be careful not to fall into the trap of reverse engineering resolutions to support the nancial position of a trust. Trust administration starts with resolutions and ends with statements.

The bottom line

Trusts don’t administer themselves. The best way to ensure that you don’t have any hassles with the taxman, a soon-to-be-exspouse or the law is to make SARS (Set up, Act, Record, Statements) your friend. Used wisely, trusts can be an extremely e ective way of managing wealth. But a neglected trust, or one hijacked by a trustee, can be a recipe for disaster, as many court cases attest.

If you are struggling with any aspect of trust administration or if you still rely on accountants to be your administrators, it’s a good idea to hire a professional trust administrator to ensure that the trust remains valid and is not attacked as your alter ego.

Ricardo Teixeira, a Certi ed Financial Planner, is Chief Operating O cer at BDO Wealth Advisers.

INTELLECTUAL PROPERTY IS AN ASSET IN A DECEASED ESTATE

By Dina Biagio and Jan-Gerhard Oosthuysen.

The legacy that famous author of the Harry Potter series, JK Rowling, leaves behind will endure long after her death, but what of the copyright that has formed the foundation for the more than £800 million she is estimated to be worth?

Copyright subsists automatically (without the need for registration) in a work resulting from the skill and labour of the author. The copyright in Rowling’s literary works will expire 50 years after her death – a comparatively long period for intellectual property rights. So how do copyright and other forms of intellectual property devolve for the benefit of the heirs of a deceased estate?

Immovable tangible assets are usually first on the agenda when drafting a last will and testament, but intangible property, and specifically intellectual property, is often overlooked. This is interesting, because immovable property and intellectual property have more in common than you may think. For example, they both have the ability to generate an income stream (immovable property through rental and intellectual property through licensing). If managed correctly, some forms of intellectual property, such as trademarks, are also able to appreciate in value over their lifespan, much like immovable property.

While the intellectual property of the average Joe will pale in significance when compared with a famous author, its actual market value and the mechanisms by which it transfers to an heir are not usually considered in any detail.

Registered rights

An owner’s rights in a patent, design registration or a trademark registration, which entitles him to the exclusive use of an invention, design or trademark, are recorded in registers at the Companies and Intellectual Property Commission. The respective statutes governing these forms of intellectual property provide for them to devolve to heirs by operation of law. A letters patent, design or trademark registration certificate are in this way, analogous to a title deed for an item of immovable property. Much like with immovable property, the heir must be recorded as the new proprietor in the relevant intellectual property register. The rights will not be enforceable by the new proprietor until this step has been taken.

Copyright

Devolution of copyright, although unregistered, is also specified by our copyright legislation to be assignable by testamentary disposition. Furthermore, it may be “sliced and diced” so as to apply to only some of the acts that the owner of the copyright has the exclusive right to control, or to a part only of the term of the copyright, or to a specific country or other geographical area. In this sense, copyright can be thought of as a bundle of discrete and separable rights to prevent different things, in different areas for different periods of time.

It would therefore be possible, for example, to dispose in a will of some rights of copyright in a particular work (such as an artistic, literary or musical work or a

computer program) to one heir for a first territory and to another heir for a second territory. It would also be possible to dispose of the right to licence others to perform a work (such as a musical work) to one heir, but the right to reproduce and distribute copies of the work to another heir. Similarly, one heir could inherit the right to use and adapt a work (such as a computer program) but not to license others to do so (which may be the exclusive right of another heir).

Know-how and trade secrets

The devolution of common law rights in know-how (such as trade secrets) are at best, uncertain.

The nature and transferability of rights in know-how (in other words, information that is not generally known or readily ascertainable) are not regulated by statute. While an action for unlawful competition would certainly be possible under common law, the requirements, circumstances or conditions that bestow such a right on a plaintiff are not as clear. Would the plaintiff have a protectable interest in know-how only if he or she created the know-how? What if the plaintiff had arranged for and paid someone else to create it?

When adjudicating on unlawful competition, our courts have relied heavily on public perception and the mores of the community on what constitutes fair and just. A dilemma that might present itself is if a plaintiff, purporting to have acquired knowledge of and rights in know-how, in the form of a bequest, institutes legal proceedings for misappropriation of this

Tangible assets are relatively easy to deal with in a deceased estate. Intangible assets such as intellectual property rights are more tricky and are often overlooked in estate planning.

k now - how Is an heir entitle d to ins titute such pro cee dings even though it is common cause that it was the de cease d ’s k now - how on which the claim would b e base d?

In the Schult z v But t case of 198 6, the cour t s t ate d the following when considering the unlaw f ulness of the defendant ’s ac tions: “ In South Af rica the le gislature has not limite d the prote c tion of the law in cases of copying to those who enjoy right s of intelle c tual prop er t y under s t atutes . T he f ac t that in a par ticular case there is no prote c tion by way of patent, copy right, or re gis tere d design, do es not license a trader to carr y on his business in unf air comp etition with his rivals In my view there is not in the present case any displace one's initial resp onse to Schult z's metho ds of comp etition. ”

It would app ear that, even if there are no re gis tere d right s prote c ting the k now - how and no le gislation governing the devolution of these right s to an heir, a

re gard generally, for the public interes t may s till prevent unf air use of the k nowhow by another p er son, in comp etition with the heir

U nr egistere d trademarks

It is g e n e r all y acce pte d in co mm o n law that tr ad e mar k s that are us e d b ut n ot re gis te re d f o r m p ar t of th e g o o dw ill of a b usin ess an d are o nl y tr ans fe r ab l e as p ar t of th e b usin ess that us e d th e tr ad e mar k an d es t ab lish e d th e re p ut ati o n sur ro un din g it .

G e n e r all y, th e ow n e r of co mm o n - law r ight s in th e tr ad e mar k is e ntitl e d to

have an es t ab lish e d re p ut ati o n an d th e us e by an oth e r p e r s o n of th e s am e o r a similar mar k mus t b e a c aus e of co nf usi o n in th e mar ke t (in oth e r wo rds , th e p ro du c t s o r s e r v ices of a co mp e tito r are b e in g ass o ciate d w ith th e tr ad e mar k by co nsum e r s)

I f yo u o p e r ate a s o l e p ro p ri e to r ship

usin g an unre gis te re d tr ad e mar k an d an h e ir t akes ove r yo ur b usin ess o n yo ur d eath, yo ur h e ir may n ot imm e diate l y b e

agains t an imp os te r. It is un cl ear whe th e r th e g o o dw ill of a s o l e p rop ri e to r ship (in clu din g co mm o n - law r ight s in an unre gis te re d tr ad e mar k ) tr ans fe r s to an h e ir by tes t am e nt ar y disp ositi o n T his is o n e m o re g o o d reas o n to re gis te r yo ur tr a d e mar k s!

Co nclusion

In summar y, yo u may n ot have co py r ight

b ut it may s till b e wo r th co nsi d er in g h ow yo ur inte ll e c tual p ro p e r t y r ight s sh o ul d d evo l ve to yo ur h e ir s . Tak in g s te ps n ow, su ch as re gis ter in g unre gis te re d r ight s o r ce din g unre gis te re d r ight s e x p ressl y w hil e ali ve, w ill e nsure that this tr ans fe r is as simp l e an d ce r t ain as p ossib l e

Dina Biagio is a par tner and Jan- Gerhard

Oosthuysen an associate at Spoor & Fisher

HOW CHANGES TO VAT AFFECT COMPLIANCE AMONG SMALL FIRMS

Anculien Schoeman explains how increases in the VAT rate appear to increase levels of avoidance among small business owners

Taxes “are the dues that we pay for the privileges of membership in an organised society”.

As the quote from US president Franklin D Roosevelt in 1936 suggests, governments across the world need to collect tax revenue to be able to provide public goods and services to their citizens. There are a number of forms of taxes. The most common taxes are personal income tax, corporate income tax, and valueadded tax (VAT).

South Africa’s current VAT system is based on New Zealand’s VAT system. It was introduced in South Africa in 1991 at a rate of 10%, replacing the general sales tax, which was levied at 12%.

Since VAT is more broad-based than the general sales tax, the effect on tax revenue collected was deemed to be neutral in terms of tax revenue collection.

The South African VAT system is found to be mildly regressive, where a larger percentage of income is taken from the poor in comparison to the rich. But it is a good source of government revenue in comparison with other tax types, as individuals in the informal sector also contribute to the revenue stream.

Overall, the South African tax system is viewed as being progressive in nature, as the rich pay tax at a higher rate than the poor. Which is why VAT shouldn’t be considered in isolation.

In an attempt to increase tax revenue collection, the VAT rate in South Africa was increased from 14% to 15% on 1 April 2018 after it had remained unchanged for 15 years (since 1993).

The increase in the VAT rate resulted in an increase in VAT payments of 4.2% in 2018/19 and 5.8% in 2019/2020.

All entities that make sales in South Africa in excess of R1 million in a 12-month period need to register as a VAT vendor. These vendors need to levy output tax on all sales made and are seen as agents of the revenue authority.

The entities can also claim input tax on all purchases made on which VAT was levied, if it is used for business

purposes. The net amount remaining after subtracting the input tax from the output tax must be paid to the South African Revenue Service (SARS).

Increasing the tax rate is a seemingly easy way to raise tax revenue. However, there are dangers. We explored one of these in our research – the effect of changes in the VAT rate on tax compliance behaviour by small businesses in South Africa.

Why small businesses?

SARS has indicated that small businesses are a high-risk sector as tax registration is particularly low in this sector. They have also indicated that an increased audit focus will be placed on small, medium and micro enterprises.

Our field experiment involved an online questionnaire that was completed by participants in managerial positions of small businesses. The participants were assigned to one of four possible treatment groups: where the participants experience either an increase or decrease of one percentage point in the VAT rate, or where the participants experience either an increase or decrease of five percentage points in the VAT rate.

Our aim was to determine whether an increase in the VAT rate might lead to larger tax evasion. The research also considered whether tax compliance behaviour would increase with a decrease in the VAT rate, since the benefit of evading taxes might seem less appealing. Some countries, such as Kenya, Greece, Belgium, Germany, Austria, Czech Republic, Bulgaria, Cyprus, Portugal and Moldova, reduced their VAT rates in the wake of Covid-19 to provide some relief.

The issues are important because businesses might opt for non-compliance if the rate is raised. This defeats the objective of tax increases as less revenue is collected.

We found that tax compliance levels among small businesses did indeed drop when the VAT rate was increased, especially if the increase was a five percentage-point increase.

Compliance

Tax compliance is the term used to describe whether taxpayers meet their legal tax obligations. This includes registering as and when required, submitting all relevant tax returns on time, reflecting the right amount of tax liability and paying that liability on time.

Better tax compliance obviously leads to higher tax revenue being collected for a government.

The study found that small business entities are inclined to reduce the VAT liability when there is an increase in the VAT rate. This may possibly be because the entity perceives it to be financially more beneficial to evade taxes when there is an increase in the VAT rate, even if considering the penalties charged if caught cheating (expected utility theory). They do so by overstating purchases rather than underdeclaring sales. This leads to an increase in non-compliance and a decrease in tax revenue collection.

The greater the magnitude of the VAT rate increase, the greater the level of noncompliance.

No significant relationships were identified between a decrease in the VAT rate and tax compliance.

Insights

The results could be valuable to policymakers in countries considering a change in the VAT rate to increase tax revenue.

Our research suggests that a small increase (one percentage point) in the VAT rate could limit the extent of noncompliance compared to a large increase (five percentage points).

A graduated and carefully calibrated approach, where rate increases are in prospect may, therefore, be preferable to large scale, once-off increases.

Anculien Schoeman is senior lecturer in taxation at the University of Pretoria. This article was first published by The Conversation (https://theconversation.com/ africa).

Just over 10 years ago I nished school, and since then, through trial, observation, failures and the occasional well-earned success I’ve pieced together a principle for tackling my personal nances. Let’s face it: we don’t learn in the classroom to budget, save and do our taxes. So what do I do? I start to view and treat myself like a business.

“What does that even look like?” you ask. I’ve found that treating my bank account, mental and tangible assets, debts, network etc like the working parts of a business has helped me a lot in times when I would’ve been easily swayed by the emotions I attach to money and what it can buy. It doesn’t mean tossing away any last thread of your humanity to get it right, but rather trying on the CFO hat for size – the CFO of your life. When you get it right, you’ll nd some of the hardest nancial sacri ces or decisions easier to swallow knowing there is a bigger game at play: that of your personal nance success story.

First, I try to keep my overheads low. While yes, “you do need to spend money to make money”, this is not an excuse to pick the clothes, phones, cars and properties as close to your a ordability as possible. Any CFO knows that the more they spend on the costs of running a business, either the smaller the pro t margin will be (take-home income), or the more they will have to charge their customers (for individuals, this means making extra income).

Here’s what it comes down to:

• If your phone can make and receive calls and texts, you probably don’t need to sign another 24-month contract for the latest release.

• If you can a ord all of a property’s bells and whistles, you don’t necessarily need them.

• If you’re test-driving cars, worry more about how the fuel economy will help you save, and less about the heads you’ll turn. Cars depreciate. They all have their last day. Don’t get too romantic about them.

• Every business needs investment, and yours should be health. I never get over the irony of expenses people love to complain about. Take healthcare appointments: you may frame it as a grudge spend, but that R1 000+ you swipe for a dermatologist, dentist, gynaecologist or psychologist is an investment in your longevity. To be around to reap the fruits of your hard-earned labour, you need to invest in the very equipment that will get you there: your body!

MILLENNIAL VIEW ARE YOU IN BUSINESS?

• Every successful business owner knows overnight success is not real. As surely as markets can skyrocket and nosedive, so can your personal nances, which is why a positive bank balance shouldn’t trigger that spending mentality. Look at how some start-ups have notoriously achieved unprecedented overnight success, scaled too quickly, and then had to liquidate and lay o employees just to recover investors’ capital. Slow and steady wins the race. The takeaway: stay humble, lay a solid foundation (your needs), set achievable, sustainable goals (growth) and stay in your lane (don’t feed the comparison gremlin, whose agenda is to steal your joy!).

• Finally, enjoy the graft. The long hours. The late nights. Those early winter mornings. Sacri cing sundowners for evening classes. The lessons disguised as mortifying mistakes. The mentorships that’ll challenge you. The setbacks (and they will come). Hopefully, with this you can re ect on your 40-odd years ‘in business’ with few regrets and a legacy you’re proud to pass on.

OMBUD CASE FILE

FAIS Ombud settles in favour of two grateful consumers

The following two cases are recorded in the 2020/21 Annual Report of the FAIS Ombud. The complaints were settled between the ombud and the financial services provider before they reached determination stage. Hence, the providers remain unnamed.

Mrs M’s funeral policy

Mrs M applied for a funeral policy with a funeral services company, a registered financial services provider. Mrs M claimed that the first premium was debited on 14 December 2019, and that her mother, a life assured on the policy, died on 8 June 2020.

The claim that was submitted was rejected by the funeral company, which claimed that Mrs M’s mother had died within the waiting period, which it said was effective until 14 June 2020.

Mrs M was not satisfied with the rejection and the reasons advanced by the company, arguing that the policy terms and conditions provided that the inception date of her policy was, in fact, 1 December 2019, which meant that the six-month waiting period had expired prior to her mother’s passing.

Unable to resolve the matter with the funeral company, Mrs M approached the office of the Ombud for Financial Services Providers, better known as the FAIS Ombud. On investigation, the ombud’s team examined the policy schedule and noted the following: “Insurance cover in terms of the policy commences on the inception date. This inception date is determined by the date a first premium is received. Should a premium be received between the 1st and the 15th of that month, the inception date will be the 1st of that particular month, and should the premium be received between the 16th and the last day of that particular month, the inception date will be the 1st of the following month.”

Appreciating the fact that the first premium was collected on 14 December 2019, the inception date noted on the contract, as 14 December 2019, was contradictory to the policy’s terms and conditions. The inception date of the policy should have been recorded as 1 December 2019, which would have provided for a successful claim.

The matter was referred to the funeral company, which reviewed the claim

and took a decision to honour it for the full benefit of R50 000. In addition, the company provided the following: “We are internally rectifying any administration challenges that affect both us and our clients to avoid such future incidents from happening. We would like to thank the ombudsman for allowing us the time to investigate and improve where necessary.”

In concluding note, the ombud's office says: This matter highlights a very important role that the office plays in not only investigating complaints in accordance with its mandate in a fair, economical, expeditious and equitable manner, but also as a mechanism to effect positive change within the financial services industry by facilitating changes towards fairness within the processes and procedures of financial services providers. Such changes do not only streamline the processes of the provider but also benefit future consumers to be serviced by the financial services provider.

Mrs

B’s R1-million investment

Mrs B claimed that she and her husband shopped around with various banking

institutions to find the best option to invest an amount of R1 million, which represented their life savings to generate an income.

Mrs B said their instruction was that they wanted the capital protected and that any income to be paid only from interest earned. She said that they needed the investment to be safe, since they had lost the bulk of their life savings in the “failed Pickvest Investment Scheme”. She was 80 years old at the time the financial service was rendered.

The financial services provider (Company A) had recommended a fiveyear termed investment in which the funds would be split, with one portion going towards providing a monthly annuity and the remainder invested to generate a return during the five-year term.

At maturity, Mrs B and her husband were stunned to learn that they would receive an amount of R737 251, which was R262 749 less than what was originally invested.

In response to Mrs B, Company A claimed that she had never specifically

requested that the capital be guaranteed, and that when one considers the level of income received during the term of the policy and maturity value of R737 251, then the product provided had, in effect, provided an effective return in excess of the original R1m invested.

The FAIS Ombud, Adv Nonku Tshombe, said her office could not accept this response as, when one considered Mrs B’s age and the previous losses that had left the couple with this sole R1m with which to provide an income, then Company A’s representative would appear to have contravened Section 8 of the General Code of Conduct of the Financial Advisory and Intermediary Services Act, in that the recommended product was not appropriate.

Subsequent to a meeting held with the ombud’s office, Company A then provided a response with a calculation of the income that Mrs B would have earned from a guaranteed version of the product provided. In comparing the difference in maturity values, Company A claimed that any offer in excess of this would constitute enrichment.

The office responded that a settlement that placed the couple in the position they would have been had the advice been appropriate could never be considered as enrichment, as the reality for Mrs B was that she now had a reduced lump sum with which to provide an income to sustain her standard of living, meaning that she may need to either significantly reduce her standard of living or assume greater risk in the portfolios she was now invested in, placing her in an even more precarious situation.

When one then adds the effects of inflation since the commencement of the investment and going forward, and the additional pressure this would place on whatever income she could now hope to generate, then one cannot possibly conclude that she would be enriched by being placed in the position she would have been in had she been able to make an informed decision.

Subsequent to this response, Company A amended its offer to pay the difference between the original capital and maturity value in the amount of R252 999.

KAGISO ISLAMIC EQUITY FUND

Of the handful of Islamic equity funds o ered by South African managers, the Kagiso Islamic Equity Fund has consistently outperformed its peers, not to mention outperforming the majority of straight general equity funds. At the end of 2021, it was 6th highest in the South African general equity category in terms of performance over ve years – an annualised 12.64%, earning it ve PlexCrowns. Last year was a particularly good year – it returned 37.87%, according to Pro leData, well above the 29.23% returned by the FTSE/JSE All Share Total Return Index.

The fund is primarily aimed at “Muslim investors seeking a Shariah-compliant portfolio of South African equities, who are in their wealth accumulation phase”

according to the fact sheet. Investors must “be able to withstand short-term market uctuations in pursuit of maximum capital growth over the long term”.

Launched in July 2009, it has R1.5 billion in assets and is managed by Abdul Davids. As at the end of December 2021, 65.6% of the fund was in domestic equities and 22.5% in foreign equities. Its ve top holdings were: Omnia (4.8%), Northam Platinum (4.5%), Datatec (3.9%), MTN (3.5%) and Anglo Platinum (3.5%).

Personal Finance put the following questions to Davids:

Can you brie y outline the Shariah approach to investing?

AD: Shariah-compliant investing has a

strong focus on socially responsible or ethical investment as it requires shariahcompliant funds to adhere to qualitative and quantitative lters that avoid or severely restrict investment into companies that cause harm to society or the environment. As such, investments in weapon manufacturers, gambling and alcohol companies are prohibited. In addition, investments in banks and similar lending institutions and companies with too much debt are also prohibited.

Shariah-compliant companies comprise a sub-category of listed companies on the JSE, which is shrinking as it is, so your choice of shares must be fairly limited. How do you pick shares for the

Abdul Davids

portfolio while trying to minimise concentration risk?

AD: It is our view that there is su cient breadth of opportunity on the JSE for shariah-compliant funds, notwithstanding the screening or ltering out of noncompliant companies. Furthermore, our equity unit trusts are able to invest up to 30% of the fund in global equity markets, which increases our universe substantially and minimises the risk of concentration.

To what do you attribute the fund's excellent performance to the end of 2021, and which shares have stood out for you?

AD: The fund has a substantial investment in the platinum group metals (PGM) sector

that has delivered very strong performance over the last three years. Investments in Northam Platinum, Anglo Platinum and African Rainbow Minerals have been standout contributors to performance on the back of a robust recovery in PGM prices.

Omnia has also been a signi cant contributor to the fund’s performance over the last year, together with MTN and Telkom in the telecommunications sector both outperforming.

What challenges and opportunities to you see for the JSE in the year ahead, and how are you positioning you fund accordingly?

AD: The key challenge for the JSE and global equity markets is the impact of rising

interest rates or the current tightening cycle on equity share prices, both locally and in the United States. We see the withdrawal of scal stimulus measures by the US Federal Reserve and other central banks as a test of the sustainability of the current robust global economic growth environment.

Our bottom-up, valuation-focused research process is ideally suited for this period in global equity markets and we continue to see opportunities in smaller and mid-size companies on the JSE and in developed equity markets. We believe our investments in companies with healthy cash ows and low debt levels will provide our investors with the best opportunities of outperformance.

It’s quite sobering to realise we are about to enter the third year of the Covid-19 pandemic. As we do so, it’s worth re ecting on some of the lessons we have learned.

Know the importance of good housekeeping

In the early days of the pandemic, decluttering our living spaces became quite the rage, and it may have inspired some changes in how we organise our homes. But good housekeeping is important in our investment portfolios too. There is a di erence between investing for the long-term, and letting a buy-and-hold strategy run amok with the risks in your portfolio. Remember that market movements will skew the allocation of assets in your portfolio, and you need to actively review these from time to time to ensure you have not inadvertently taken on excessive, or insu cient, risk in your portfolio.

Manage your risks

Washing your hands, wearing a mask, sanitising, social distancing, opting for outdoor seating, and vaccinating. Over the course of the past two years, we have all become experts in managing our personal risks. For investors, understanding the risks in markets have always been important, but even more so during pandemic times, when bifurcated markets have meant that some parts of the markets are very expensive while others are very cheap. We have always argued the price you pay for an asset is a key determinant of the long-term outcomes you can expect to achieve, and in the current environment, it is important to ensure you are not over exposed to some of the very popular assets investors have been chasing, and whose performance may disappoint in the future due to their in ated valuations.

Expect the unexpected

While life has always been uncertain, the pandemic

has highlighted how rapidly our plans can go awry. From shifting holidays to revised travel plans, we have certainly learned to roll with the punches over the past two years. Having contingency plans in place has become second nature. Similarly, investors should be aware of the dangers of betting on a single strategy or outcome. Diversi cation remains the best line of defence to ensure you remain on track to achieve your long-term investment goals.

Manage emotions for better outcomes

Having your plans change at the last minute can be upsetting, but often, it is our response to situations that ultimately determine the outcome. During the pandemic many of us had to make the most of local travel, and were surprised by the gems our own country has to o er (at great prices too!). Market volatility will come and go, but it is how we manage our responses to them that will ultimately determine the long-term investment outcomes we realise. Those who sold out during the market lows of March 2020 turned paper losses into real ones, and missed out on the spectacular rallies we have seen subsequently.

Technology is great, but sometimes we need the human touch

ON THE CONTRARY INVESTMENT LESSONS FROM THE PANDEMIC

We all became adept at Zoom, Skype and all forms of online collaboration. However, the great technological leap forward has also highlighted that there are some things that will always be better in person. These days, investors are better informed than ever and can manage their investments seamlessly. Yet there is no replacing the human touch of an adviser – helping us to manage our emotions and take a longer-term view at the most di cult times. By helping us keep a cool head, we are able to make better decisions in the long run.

ANET AHERN

Anet Ahern is the CEO of PSG Asset Management.

DATABANK

WHERE TO GET HELP

With BANKING problems:

The Ombudsman for Banking Services is Reana Steyn.

ShareCall: 0860 800 900 or Telephone: 011 712 1800

Fax: 011 483 3212

Post: PO Box 87056, Houghton, 2041

Email: info@obssa.co.za

Website: www.obssa.co.za

With COMMUNITY-SCHEME-RELATED problems: The Community Schemes Ombud Service is a statutory dispute-resolution service for owners and residents of community schemes, including sectional-title schemes share-block companies, homeowners’ associations and schemes for retired persons. The Acting Chief Ombud is Advocate Ndivhuo Rabuli.

Telephone: 010 593 0533

Fax: 010 590 6154

Post: 63 Wierda Road East, Wierda Valley, Sandton, 2196

Email: info@csos.org.za

Website: www.csos.org.za

With CONSUMER-RELATED problems: The Acting National Consumer Commissioner is Ebrahim Mohamed.

Toll-free: 0860 003 600

Telephone: (complaints) 012 428 7000 or (switchboard) 012 428 7726

Fax: 086 758 4990

Post: PO Box 36628, Menlo Park, 0102

Email: complaints@thencc.org.za

Website: www.thencc.gov.za

The Consumer Goods and Services Ombud is Magauta Mphahlele. This is a voluntary dispute-resolution scheme that only has jurisdiction over retailers, wholesalers and manufacturers that subscribe to the Consumer Goods and Services Industry Code of Conduct.

ShareCall: 0860 000 272

Fax: 086 206 1999

Post: PO Box 3815, Randburg, 2125

Email: info@cgso.org.za

Website: www.cgso.org.za

With CREDIT TRANSACTION problems:

The Acting Credit Ombud is Howard Gabriels.

MaxiCall: 0861 662 837

Telephone: 011 781 6431

Fax: 086 674 7414

Post: PO Box 805, Pinegowrie, 2123

Email: ombud@creditombud.org.za

Website: www.creditombud.org.za

With DEBT COUNSELLING problems: The National Credit Regulator also deals with disputes that are not resolved by the Credit Ombud. The Chief Executive Officer is Nomsa Motshegare.

ShareCall: 0860 627 627

Telephone: 011 554 2600

Fax: 011 554 2871

Post: PO Box 209, Halfway House, 1685

Email: complaints@ncr.org.za or (debt counselling complaints) dccomplaints@ncr.org.za

Website: www.ncr.org.za

With FIDUCIARY problems: The Fiduciary Institute of Southern Africa (FISA) is a selfregulating body in fiduciary matters such as wills, trusts and estate planning.

Telephone: 082 449 2569

Post: PO Box 67027, Bryanston, 2021

Email: secretariat@fisa.net.za

Website: www.fisa.net.za

With FINANCIAL ADVICE problems:

The Ombud for Financial Services Providers is Nonku Tshombe.

Telephone: 012 470 9080 or 012 762 5000

Fax: 086 764 1422, 012 348 3447 or 012 470 9097

Post: PO Box 74571, Lynnwood Ridge, 0040

Email: info@faisombud.co.za

Website: www.faisombud.co.za

With INVESTMENT problems:

The Financial Sector Conduct Authority, which is headed by Dube Tshidi, regulates the financial services industry.

ShareCall: 0800 110 443 or 0800 202 087

Telephone: 012 428 8000

Fax: 012 346 6941

Post: PO Box 35655, Menlo Park, 0102

Email: info@fsb.co.za

Website: www.fsb.co.za

With LIFE ASSURANCE problems:

The Ombudsman for Long-term Insurance is Judge Ron McLaren.

ShareCall: 0860 103 236 or Telephone: 021 657 5000

Fax: 021 674 0951

Post: Private Bag X45, Claremont, 7735

Email: info@ombud.co.za

Website: www.ombud.co.za

With MEDICAL SCHEME problems:

The Council for Medical Schemes is a statutory body that supervises medical schemes. The Acting Registrar of Medical Schemes is Dr Sipho Kabane.

MaxiCall: 0861 123 267

Fax: (enquiries) 012 430 7644 or (complaints) 086 673 2466

Post: Private Bag X34, Hatfield, 0028

Email: complaints@medicalschemes.com or information@medicalschemes.com

Website: www.medicalschemes.com

With MOTOR VEHICLE problems:

The Motor Industry Ombudsman of South Africa is an independent institution that resolves disputes between the motor and related industries and their customers. The Ombudsman is Johan van Vreden.

MaxiCall: 0861 164 672

Fax: 086 630 6141

Post: Suite 156, Private Bag X025, Lynnwood Ridge, 0040

Email: info@miosa.co.za

Website: www.miosa.co.za

With RETIREMENT FUND problems:

The Pension Funds Adjudicator is Muvhango Lukhaimane.

ShareCall: 0860 662 837

Telephone: 012 748 4000 or 012 346 1738

Fax: 086 693 7472

Post: PO Box 580. Menlyn, 0063

Email: enquiries@pfa.org.za

Website: www.pfa.org.za

With SHORT-TERM INSURANCE problems: The Ombudsman for Short-term Insurance is Judge Ron McLaren.

ShareCall: 0860 726 890 or Telephone: 011 726 8900

Fax: 011 726 5501

Post: PO Box 32334, Braamfontein, 2017

Email: info@osti.co.za

Website: www.osti.co.za

With TAX problems: The Tax Ombud is Judge Bernard Ngoepe.

ShareCall: 0800 662 837 or Telephone: 012 431 9105

Fax: 012 452 5013

Post: PO Box 12314, Hatfield, 0028

Email: complaints@taxombud.gov.za

Website: www.taxombud.gov.za

NOT SURE WHERE TO TAKE YOUR COMPLAINT? Call0860OMBUDS(662837)andyouwillbedirectedtothecorrectombudoradjudicator.

DOMESTIC MANAGEMENT COMPANY RATINGS

AS AT 31 DECEMBER, 2021

Management company

PlexCrowns

NinetyOne4.243

Mi-Plan3.590

YEAR

SouthAfricanEquityMidandSmallCap40.28%

THREE YEARS

WorldwideEquityUnclassied45.64%

FIVE YEARS

WorldwideEquityUnclassied25.09%

BEST SUB-CATEGORIES RETURN FOURTH QUARTER USAEquityGeneral13.77% ONE YEAR EuropeEquityGeneral113.33%

THREE

OFFSHORE

COMPANY RATINGS

AS AT 31 DECEMBER, 2021

BEST FUNDS RETURN

FOURTH QUARTER

OldMutualGoldFund(R)32.83%

WORST SUB-CATEGORIES RETURN

FOURTH QUARTER

RegionalInterestBearingVariableTerm-0.44%

ONE YEAR

GlobalInterestBearingVariableTerm1.77%

THREE YEARS

RegionalInterestBearingShortTerm-4.48%

FIVE YEARS

SouthAfricanRealEstateGeneral-3.91%

WORST SUB-CATEGORIES RETURN FOURTH QUARTER

USAEquityVariedSpecialist-3.56% ONE YEAR

USAEquityVariedSpecialist-10.36%

THREE YEARS

EuropeFixedInterestMoneyMarket2.06% FIVE YEARS

EuropeFixedInterestMoneyMarket3.71%

WORST FUNDS RETURN

FOURTH QUARTER

Management company

PlexCrowns MelvilleDouglas4.000

PineBridge3.750

Ashburton3.667

TRowePrice3.589

InvestecWorldAxisPCC3.500

Marriott3.500

NedgroupInvestmentsInternational3.375

Stanlib3.367

AlexanderForbesInvestments(Jersey)3.250

VAMGlobalManagementCompany3.208

Oasis3.167

Sarasin3.125

Sanlam3.103

Schroder3.000

Coronation2.917

NinetyOneGlobalStrategyFunds2.900

Momentum2.875

Foord2.750

Prescient2.333

ONE YEAR

BlueQuadrantWWFlexiblePrescientFund(A)129.02%

THREE YEARS

1nvestS&P500InfoTechIndexFeederETF46.60% FIVE YEARS

SIMResourcesFund(A)29.77%

BEST FUNDS RETURN FOURTH QUARTER

ReitwayEnhancedGlobalPropertyFundUSD26.52%

ONE YEAR

ReitwayEnhancedGlobalPropertyFundUSD58.88%

THREE YEARS

BaillieGiordWorldwideLongTermGlobalGrowth45.42% FIVE YEARS FranklinTechnologyFund35.47%

BCISandsCapitalEmergingMarketsFeeder(A)-5.88% ONE YEAR

SatrixMSCIChinaFeederETF-15.44%

THREE YEARS

CloudAtlasAMIBig50ex-SAETF-16.87% FIVE YEARS

NedgroupInvestmentsPropertyFund(A)-7.95%

WORST FUNDS RETURN FOURTH QUARTER

BaillieGiordWorldwideDiscoveryFund-4.59%

ONE YEAR

TempletonChinaFund-15.67%

THREE YEARS

AberdeenGlobal-LatinAmericanEquityFund-2.05% FIVE YEARS

FranklinNaturalResourcesFund-0.06%

InformationintheabovetableswasprovidedbyPlexCrownFundRatingsandProfileData

WHAT DO THE PLEXCROWN FUND RATINGS TELL YOU?

Thelastcolumninthecollectiveinvestmentscheme performancetableson pages 58 to 69 showsthe PlexCrownratingofafundifitqualiesforarating. ThePlexCrownFundRatingssystemencompassesthedierent quantitativemeasuresusedincalculatinginvestment performancesinonenumberandmakesiteasyforinvestors toevaluatefundmanagersonthebasisoftheirlong-term risk-adjustedreturns.

ThePlexCrownFundRatingsenableinvestorstoknow ataglancehowaunittrustfundhasfaredovertimeona risk-adjustedreturnbasis,comparedwiththeotherfundsin itsAssociationforSavings&InvestmentSAsubcategory. Therefore,theratingsassistinvestorsindeterminingwhether ornotafundmanagerisaddingvaluetotheirunittrust investments,giventhemanager’smandateandtheamount ofriskheorsheistaking.

ThePlexCrownFundRatingsareunbiasedandobjective becausetheyarebasedonquantitativemeasures;no

subjectivityisbroughtintotheresearchmethodology.

Incalculatingrisk-adjustedreturns,themethodology acceptsthatvariousquantitativeformulaeeachhavetheir uniquedrawbacks.Inordertoovercomethis,uptove dierentriskmeasuresareused:

•Totalrisk(SharpeRatio);

•Downsiderisk(SortinoRatioandOmegaRisk/Reward Measure);and

•Manager’sskill(Jensen’sAlphaandTreynor).

Theresearchmethodensuresthattheunittrustfunds underevaluationareexposedtosimilarrisks;therefore,the subcategoriesforunclassiedfundsandmoneymarket fundsareexcluded.

ThePlexCrownratingsystemisameasureofconsistency becauseratingsaredoneoverthreeandveyearsandare timeweighted,withtheemphasisonthelongerperiodof measurement.Fundswithinaunittrustsubcategoryareranked onlyifthereareatleastvefundsinthatsubcategorywitha

trackrecordofatleastveyears.Toqualifyforarating, afundmusthaveanocialtrackrecordofatleastveyears.

Eachqualifyingunittrustfundisawardedacertain numberofPlexCrownsrangingfromonetove,withthe top-performingfundsallocatedthehighestratingofve.

ThePlexCrownratingsdistinguishbetweenpoor performersandexcellentperformers,butarebasedon historicaldataandshouldbeusedonlyasarststepin theconstructionofaunittrustportfolio.Itremainsthe responsibilityofinvestorstogetherwiththeirnancial advisers,tomakesurethatthefundstheychoosesuit theirriskprolesandthattheirinvestmentplansinclude anappropriatelevelofdiversication.

Visit www.plexcrown.com for a full description of the PlexCrown Fund Ratings system.

PERFORMANCE OF DOMESTIC SUB-CATEGORIES TO 31 DECEMBER 2021

PERFORMANCE OF OFFSHORE SUB-CATEGORIES TO 31 DECEMBER 2021

PERFORMANCE OF DOMESTIC FUNDS TO 31 DECEMBER 2021

PERFORMANCE OF OFFSHORE FUNDS TO TO 31 DECEMBER 2021

MANAGEMENT

PLEXCROWN RANKING OF MANAGEMENT COMPANIES

COLLECTIVE INVESTMENT SCHEME PERFORMANCE TO DECEMBER 31, 2021

ABOUT THE LISTINGS

CounterpointSCIValue(A1)7,1713243,61623,87114,7215

36OneBCIEquity(A)7,3712830,484722,62214,0525

NinetyOneValue(R)18,24345,97521,8938,8244

MethodicalBCIEquity(B1)6,0214825,2310120,84410,55245

36OneBCISAEquity(C1)9,158333,852819,54511,5215

FairtreeEquityPrescient(A1)11,194119,3114719,51614,0034

InvestecW&IBCIDynamicEquity(A)18,08460,20119,02710,95184

KagisoEquityAlpha(A)10,675431,024318,61812,9545

SIMTopChoiceEquity(A1)6,8513728,096718,56911,66134

TrueSCIGeneralEquity(A)6,0814626,198718,401012,1495

RezcoEquity(A)2,6016121,7213318,281112,08105

CoronationEquity(A)7,2113122,1313017,791210,82195

NinetyOneEquity(R)9,437828,865717,531311,1917

SIMGeneralEquity(R)7,9111731,483917,471410,5524

KagisoIslamicEquity(A)9,657337,871717,081512,6465

1nvestSectorNeutralMomentumInd.Tr.(A)21,31231,014416,9316

M&GEquity(A)8,549736,471816,681711,22164

CoronationSAEquity(A)8,0311029,515216,57189,08414

AylettEquityPrescient(A1)14,581547,64416,511911,89124

FairtreeSelectEquityPrescient(A1)11,972920,5014216,4720

APSCiEquity(A1)11,483522,7712216,322110,04324

M1CapitalEquityPrescient(A1)15,99727,017816,18226,77783

CoronationTop20(A)7,1313324,1010916,152310,19304

AbsaTop40Index(A)16,10528,037016,0424

DiscoveryEquity(A)13,072227,167616,04249,44374

AbsaPrimeEquity(A)7,7112327,047715,892510,53254

M&GDividendMaximiser(A)9,726935,342415,682610,42284

ElementIslamicEquitySCI(A)8,0311031,344115,632711,54145

PersonalTrustEquity(A)11,643332,853015,55289,10404

KrugerCiEquity(A)10,036424,5510515,5129

CoreSharesTop50ETF13,991930,274815,383012,0211

ObsidianSCIEquity(B3)4,9615327,527415,31318,93424

MomentumTrendingEquity(A)12,122823,8211115,2832

NinetyOneSAEquity(E)8,589528,636015,24339,55354

TrésorSCIEquity(B1)15,001229,685115,0534

SatrixAlsiIndex(A3)15,001228,596115,053410,7022

PPSEquity(A2)8,4710124,9810215,03359,2839

PortfolioMetrixBCISAEquity(B2)7,1213426,318614,83369,97344

VisioBCIShariahEquity(C)12,662432,583514,7337

DynastyCiWealthAccumulator(A2)12,522620,6513914,533810,58234

SasnBCIEquity(A)15,90821,6513414,44397,74613

StonehageFlemingSCIEquity(A1)11,443719,2514814,34407,21723

AFInvestmentsEquityFoF(A)9,896628,106614,31418,21563

StanlibM-MDiversiedEquityFoF(B1)8,509928,226514,29429,47364

ExcelsiaEquity27four(A1)6,2514239,501413,9443

FGSCIMercuryEquityFoF(A)7,9311626,168813,91448,79454

GryphonAllShareTracker(A)13,022325,3110013,874510,4926

FoundationBCIEquity(A)10,815022,0813113,7846

SanlamPrivateWealthEquity(A1)9,367930,514613,76479,32383

OldMutualRa40Index(A)11,144240,411113,744810,4527

27fourShariahActiveEquity(A1)11,024431,803813,74488,74464

IFMTechnical(A)10,944715,9415513,66494,221033

SatrixRa40Index(A1)11,124340,341213,605010,3829

SatrixDiviETF(A)14,991335,692113,595112,735

BlueAlphaBCIEquity(A)12,122828,735813,585210,73214

AbsaDividendPlusIndex(A)14,731435,382313,5753

SygniaDiviIndex(A)15,37935,572213,515412,527

PSGWealthCreatorFoF(A)7,7612227,827213,50558,3654

1nvestSectorNeutralValueInd.Tr.(A)22,99157,13213,4556

SatrixRa40ETF(A)10,715239,831313,375710,1831

•Resultsarebasedontheperformanceofa lump-sum investment overfourperiods thatendedon DECEMBER 31, 2021.Ineachoftheperiods,thereisapercentage (totwodecimalplaces)bywhichaninvestmentwouldhavegrownorshrunk,and thefund’spositionorrankrelativetootherfunds.

•Returnsforthe three- and five-year periods are annualised (thatis,the percentagerepresentstheaverageperformanceinayear).Asunittrustfundsare medium-tolong-terminvestments,themostimportantperformanceperiodsare thoseofthreeyearsorlonger.

• INITIAL COSTS havenotbeentakenintoaccountandcanhaveaneectonreturns.

• ANNUAL MANAGEMENT FEES areincludedinthereturns.

• DIVIDENDS havebeenreinvestedontheex-dividenddate(thedayaftertheyare declared)atthepriceatwhichtheunitsaresoldtoyou.

• INDICES normallysuppliedasbenchmarksreectpercentagechangesandtakeinto accountdividendsandinterest.Inthecaseofnewindices,ahistoryisnotyetavailable.

•The PLEXCROWN RATING indicateshowafundhasfaredovertimecomparedwiththe otherfundsinitssubcategoryonarisk-adjustedreturnbasis.Turnto page 57 formore informationabouttheratings.

WHAT DOES THE * INDICATE?

Theasterisk(*)beforeafund’snameindicatesthatthefundcomplieswiththeinvestment requirementsofRegulation28ofthePensionFundsAct.Fundssuitableforretirement savingsmustcomplywithRegulation28,whichlaysdownguidelinesaboutInv.indierent categoriesofassets.Toreducetheriskandvolatilityofafund,theActrestrictsexposureto equitiestoamaximumof75percentofthefundanditsexposuretopropertyto25percent.

HOW FUNDS ARE CLASSIFIED

TheAssociationforSavings&InvestmentSA’sclassicationsystemcategorisesunittrust fundsaccordingtotheirinvestmentuniverse:wheretheyinvest,whattheyinvestin andtheirmaininvestmentfocus.

ThersttieroftheclassicationsystemcategorisesfundsasSouthAfrican,global, worldwideorregional.

South African funds mustinvestatleast70percentoftheirassetsinSouthAfrican investmentmarketsatalltimes.Theymayinvestamaximumof25percentinforeign marketsandamaximumofvepercentinAfrican(excludingSouthAfrican)markets.

Global funds mustinvestaminimumof80percentoftheirassetsoutsideSA.

Worldwide funds donothaveanyrestrictionsonwheretheymayinvestbutthey typicallyallocatebetweenSouthAfricanandforeignmarketsinlinewiththemanager’s outlookforlocalversusforeignassets.

Regional funds mustinvestatleast80percentoftheirassetsinaspecic geographicregion,suchasAsiaorAfrica,excludingSouthAfrica,oracountrysuch astheUnitedStates.Regionalfundsmayinvestamaximumof20percentoftheir assetsinSouthAfrica.

Thesecondtieroftheclassicationsystemcategorisesfundsaccordingtotheasset classinwhichtheypredominantlyinvest.Atthislevel,fundsarecategorisedasequity funds,interest-bearingfunds,realestatefundsormulti-assetfunds.

Equity funds mustinvestatleast80percentofthenetassetvalueofafund.

Interest-bearing funds investinbonds,xedinterestandmoney-market instruments.

Real estate funds mustinvestatleast80percentoftheirassetsinsharesinthe realestatesectoroftheJSEorasimilarsectorofaninternationalstockexchange.Afund mayinvestamaximumof10percentinpropertysharesthatarenotclassiedinthe realestatesector.

Multi-asset funds saveyouthetroubleofdecidinghowtoallocateyourassets betweenshares,bonds,propertyorcash.Themanagersofmulti-assetfundsdecide, foryou,whichassetclassestheybelievewillproducethebestreturnsandthen,within thoseclasses,whichsecuritieswillperformthebest.Somefundshaveaxed allocationtothedierentassetclasseswhereasotherschangethemixofasset classesinlinewiththeirviewsofhowthedierentclassesorsecuritieswillperform.

MONEY MARKET YIELDS

SelectManagerBCIEquity(C)11,334029,175512,92668,6149

OldMutualAlbarakaEquity(A)14,141832,623412,82677,33693

AfricanAllianceEquityPrescient(A1)10,824920,5114112,67688,69483

DenkerSCIEquity(A)7,3712830,754512,66696,22853

AbsaSelectEquity(A)9,258125,389912,64707,62663

AllWeatherBCIEquity(B2)9,238232,703312,6171

PrimeSouthAfricanEquity(A)12,622528,076912,5572

MomentumValueEquity(A)9,288036,401912,4673

OasisCrescentEquity(D)10,994527,227512,45747,65643

MomentumCoreEquity(A)8,888926,168812,3975

HollardPrimeEquity(B)10,595526,857912,27767,68633

SentioSCIHikmaShariahGeneralEquity(B1)10,585631,434012,15776,98753

BCIEquity(A)5,7715026,658412,12786,57803

OptimumBCIEquity(A)11,373826,648512,08798,86433

MomentumEquity(A)10,914831,434012,02808,08583

1nvestIndex(R)8,569626,148911,94818,2955

StanlibEquity(R)7,9711217,4115311,87828,17573

AutusPrimeEquity(A)11,024415,8815611,87828,39533

SatrixMomentumETF(A)10,465824,3410611,6483

DenkerSCISAEquity(B1)8,509932,803211,6184

SygniaEquity(A)8,3710422,7812111,58856,80773

Thethirdtieroftheclassicationsystemcategorisesfundsaccordingtotheirmain investmentfocus.

WHAT DOES THE ‘R’ OR ‘A’ MEAN?

Theseindicatetheannualmanagementfeesaunittrustcompanycanchargeanddepend partlyontheclassofunitsyoubuy.

BeforeJune1998,thefeeschargedonfundswereregulatedwithamaximumannual managementfeeofonepercentayearplusVAT.Fundslaunchedbeforethisdatehavethe letter“R”behindthefundnameandcanonlychangetheirfeesafteraballotofallunittrust holders.Manyunittrustcompanieshaveclosedtheir“R”classfundstonewinvestments andlaunchednewfundclasses.

FundsandfundclasseslaunchedafterJune1998canchargeanyfees.Typically,fees rangefrom0.25percentto2percent,excludingVAT.Fundswithunregulatedfeescanbe “A”,“B”,“C”or“D”classfunds.

Typically,“A”classfundsareoeredtoretailinvestorswhilecheaper“B”classfunds areforinstitutionalinvestorswhoinvestinbulk.Onlytheinstitutionalfundsavailable toyouthroughalinked-investmentservicesprovider(Lisp)arepublishedhere.

Thedierentclassesofasinglefundaremanagedcollectivelyandthedierence inperformancebetweenthemispurelyaresultofthedierenceinmanagementfees.

Mostrecentlywhatareknownasall-in-feeclasses(“C”or“D”classes)havebeen introduced.Thesefundschargeasinglefeecoveringthemanagementfee,thebroker feeandtheadministration(orLisp)fee.

Performance figures supplied by ProfileData

Telephone:0117285510

Email:unittrust@prole.co.za

Website:www.fundsdata.co.za

Disclaimer:Althoughallreasonableeortshavebeenmadetopublishthecorrect data,neitherProleDatanor Personal Finance canguaranteetheaccuracyofthe informationontheunittrustfundperformancepages.

SteynCapitalEquityPrescient(A1)12,332749,15311,04913,971062

CommunityGrowthEquity(A)9,128525,919210,98928,08583 MatrixSCISAEquity(A2)2,9616024,6510310,98928,47513

ClucasGrayEquityPrescient(A1)8,759141,85810,82938,61493

InvestecW&IBCIEquity(A)7,8112023,5311710,75946,43822

PrescientCoreEquity(A2)8,4110320,8213810,57957,62663

VisioBCISAEquity(B8)10,485734,562510,4896

BateleurEquityPrescient(B4)8,679328,536210,26976,56812

SygniaSwixIndex(A)7,9011820,3614310,19987,1674

M&GSAEquity(F)8,1410934,252610,16997,64653

OldMutualManagedAlphaEquity(A)8,0111125,919210,141005,16952

NedgroupInv.SAEquity(A2)7,6312724,2810710,091017,89603

AeonSmartMulti-FactorEquityPrescient(A1)8,2910520,1714410,061027,70623

MomentumCappedSwixIndex(A)7,9511425,729610,03103

SygniaItrixSwix40ETF7,7112316,7515410,01104

OldMutualEquity(A)6,5213929,81509,98105

AllanGrayEquity(A)5,8514925,69979,941066,87762

SatrixCappedSwixALSI(A1)8,4110326,01909,86107

IntegrityEquityPrescient(A1)13,112143,2579,761084,94972

VisioBCIGeneralEquity(A)9,876727,76739,751095,83872

OldMutualCappedSwixIndex(A)8,4910025,77959,63110

AnchorBCIEquity(A)7,7812123,701129,581115,70892

SentioSCIGeneralEquity(B2)8,0111127,04779,42112

AluwaniBCITop25Equity(A)8,1410917,681529,361137,30712

1nvestSectorNeutralGrwth&QlityInd.Tr.(A)10,246014,271579,33114

PrescientEquity(A2)8,859023,941109,291156,6279

FoordEquity(A)3,7315724,981029,231163,53109

AbsaSmartAlphaEquity(A)7,8311917,711519,221175,79882

DotportBCIEquity(B)8,4410223,661139,15118

OasisGeneralEquity(D)9,687131,29429,021195,63912

ElementEarthEquitySCI(A)9,088738,87158,861207,17732

HarvardHouseBCIEquity(A)7,3212922,371288,691211,271121

AllanGraySAEquity(A)6,8713628,70598,631226,02862

OldMutualInvestors(R)6,1614532,51368,541235,1396

BenguelaEquity27four(A1)5,7215128,28638,47124

MaziAssetManagementPrimeEquity(A)11,653234,19278,331255,30932

PerpetuaSCIEquity(A)9,597533,18298,191263,701082

MergenceEquityPrime(A1)6,2914126,83808,181274,341022

NedgroupInv.PrivateWealthEquity(A)4,3015622,471268,101282,761111

H4FocusedWealth(A1)8,0311022,571248,051295,38922

SatrixMidCapIndex(A1)3,6715827,94717,76130

PSGEquity(A)6,3214038,77167,561314,7798

NewFundsValueEquityETF6,8913540,54106,95132

AshburtonEquity(B1)7,9611318,301506,721334,431012

CounterpointSCIDividendEquity(A1)7,6912425,95916,201345,38922

IPHighConvictionEquity(A)9,158321,201376,201343,981052

NedgroupInv.Rainmaker(A)11,343923,641145,821353,801071

FNBMomentumGrowth(A)9,667219,791465,751363,291101

NorthstarSCIEquity(A)6,6513823,661135,36137

AmpersandSCIEquity(B)14,471626,74825,111384,111041

MarriottDividendGrowth(R)4,4115519,791465,111384,481001

CadizBCIEquity(A)8,1410920,551404,941395,20942

FirstAvenueSCIEquity(B1)4,7015418,511494,771401,251131

SatrixQualitySouthAfricaETF11,86319,791623,30141

SatrixQualityIndex(A1)11,91309,311632,841426,3083

FirstAvenueSCIFocusedQualityEquity(A)2,2916210,201612,32143-0,641141

NewFundsLowVolatilityEquityETF3,0215913,011592,12144

CoreSharesSADividendAristocratsETF14,58158,97164-1,66145-1,66115

CorionPrimeConcentratedEquity(A)10,964641,579

MianzoEquity27four(A1)8,2610730,1849

WealthAssociatesBCIEquity(A)10,186229,2954

DierentialNeuralEquityPrescient(A1)9,118628,8756

SatrixSmartcoreIndex(A1)8,569628,0967

PrescientCoreAllShareEquity(A2)15,191028,0868

OysterCatcherRealFinEquity(A)7,9411527,1676

PrescientCoreCappedEquity(A2)8,689226,7283

X-ChequerBCIEquity(B)6,2114326,3186

AmplifySCIEquity(A1)8,549725,8893

OldMutualESGEquity(A)9,497725,8094

VunaniBCIEquity(A)6,0314723,44118

StanlibCoreMultiStyleEquity(A)9,766823,01120

NgwediEquitySNN(R1)9,148422,63123

AeonActiveEquityPrescient(A1)10,206122,49125

CoreSharesScienticBetaMultiFactorETF5,5915222,40127

SelectBCIBlendedEquityStrategy(A)10,126322,28129

AmityBCIEquityIncome(A)1,2816421,40135

LimaMbeuSCIEquity(A1)7,6512621,20137

BacciSNNEquity(A1)7,3113019,85145

Global&LocalSNNEquity(A)8,1810813,20158

Global&LocalSNNLowVolatilityEquity(A)6,0214812,54160

SelectBCIEnhancedCoreEquity(A)16,026

SatrixGlobalInfrastructureFeederETF14,4617

SelectBCIEquity(A)10,7951

SelectBCIESGEquity(C)9,6672

*FNBMultiManagerEquity(A2)9,6074

AnchorBCISAEquity(A)9,5876

EdgeBCIEquity(A)8,2876

MomentumQualityEquity(A)6,17106

SatrixInclusionandDiversityETF1,93163

FTSE/JSEAllShareindex(J203)15,1329,2315,7111,38 INDUSTRIAL FUNDS

FTSE/JSEIndustrialindex(J257)16,0926,4515,549,27 LARGE-CAP FUNDS KagisoTop40Tracker(R)15,791027,79617,26112,341 AshburtonTop40ETF16,08528,10416,45212,192 Satrix40ETF(A)16,09428,14316,37312,133

NewFundsShari’ahTop40IndexETF17,15130,26216,30411,1710 1nvestALSI40(A)16,15327,48916,13511,864

SygniaItrixTop40ETF15,81927,67716,106

PrescientCoreTop40Equity(A1)16,47227,201216,02711,845 1nvestTop40ETF(A)16,03727,95515,85811,816

OldMutualTop40Index(A)16,06627,52815,77911,508

SatrixTop40Index(A1)16,00827,281115,701011,557

SygniaTop40Index(A)15,551127,441015,621111,449

SatrixEquallyWeightedTop40Index(A1)8,331430,86113,21127,3614

NewFundsEquityMomentumETF2,141918,281412,68138,5411 CitadelSA20/20EquityH4(B1)14,631225,531312,2114

SatrixSwixTOP40ETF(A)7,751616,65179,94157,5113

1nvestSwix40ETF(A)7,891516,98169,81167,5512

SatrixSwixTop40Index(A1)7,741716,48189,80177,3515

NewFundsS&PGIVISATop50ETF12,461317,50156,97182,6617 SaronSCILargeCap(A)3,861812,51191,94193,48161 FTSE/JSEALSI40index(J200)16,2528,4016,6512,36 MID- AND SMALL-CAP FUNDS

CoronationSmallerCompanies(R)2,16741,52316,2718,9815 SIMSmallCap(R)12,31355,53115,6224,733 NinetyOneEmergingCompanies(R)7,27548,66211,0632,676 MomentumSmallMid-Cap(A)12,90235,47510,1545,4923 OldMutualMid&Small-Cap(R)8,84441,09410,0452,517 AshburtonMidCapETF3,66627,9577,6663,584 NedgroupInv.Entrepreneur(R)13,44134,0166,2073,195 FTSE/JSEMidCapindex(J201)3,8328,888,454,33 RESOURCES FUNDS

SIMResources(A)21,63365,11143,36129,7715 NinetyOneCommodity(R)18,04633,81439,57226,613 CoronationResources(P)26,75153,08239,27329,7424 NedgroupInv.Mining&Resource(R)23,02242,84334,14425,174 SatrixResiETF(A)21,34432,18525,36521,605 MomentumResources(A)20,85528,02620,95616,6461 FTSE/JSEResi10index(J210)22,1932,3626,1822,54

FINANCIAL FUNDS

NedgroupInv.Financials(R)6,37133,4225,0815,311 MomentumFinancials(A)4,24234,4311,9524,282 SIMFinancial(A)1,88526,0041,2132,084 SatrixFiniETF(A)2,08426,7330,4943,753 CoronationFinancial(A)2,11325,4650,2351,755 FTSE/JSEFinancialindex(J580)2,5029,591,562,88 UNCLASSIFIED FUNDS

KrugerrandCustodialCerticatesETF9,2723,59215,85112,351 *CounterpointSCIPreferenceShare(A1)16,01143,97114,99211,532 SOUTH AFRICAN MULTI-ASSET

FLEXIBLE FUNDS

CentaurBCIFlexible(A)4,274128,311317,42111,6615 BateleurFlexiblePrescient(A1)7,981526,221616,98211,5225 36OneBCIFlexibleOpportunity(A)5,273720,342815,6339,6864 TrueSCIFlexible(A)3,604316,523715,22410,6144 BCIFlexibleManaged(A)5,253826,601515,2058,65114 RCIBCIFlexible(A)11,44430,95914,7466,95193 SalvoPrimeDynamicFlexible(A1)6,432826,211714,487 BlueAlphaBCIAllSeasons(A)10,51717,213514,40810,5654 *AdviceworxOldMutualIn.+5-7%FoF(B1)7,471924,202113,8499,1974 AmplifySCIFlexibleEquity(B4)11,77333,56713,81108,01143 CohesiveCapitalFlexiblePrescient(A1)7,491841,38413,58118,9093 H4Managed(B1)10,89624,102213,5811 CorionPrimeFlexible(A)7,491821,122713,33128,69104

OldMutualFlexible(R)5,773228,951113,17139,686

LauriumFlexiblePrescient(A1)7,002123,262312,85149,1883

VisioBCIActinio(A)8,641131,27812,80158,36133

BaobabSCIFlexible(B1)2,004837,60512,5916

CSBCIFlexibleFoF(B)5,163914,873912,53177,96153

DestinyBCIMultiAssetFoF(A)6,992223,002412,45187,21173

GryphonFlexible(B)3,79427,694812,361910,8435

AutusPrimeOpportunity(A)9,431013,034212,09207,46163

CelerityCiGrowth(B)8,311322,332511,8921

MaitlandBCIFlexibleFoF(A)6,992218,543211,60228,59124

JBLSCIFlexibleFoF(B1)6,502617,303411,5923

CinnabarSCIFlexibleFoF(A)9,81822,132611,17247,13183

GlacierAIFlexibleFoF(B)5,543412,424310,8025

FlagshipIPFlexibleValue(A1)11,12554,98110,73266,17242

4DBCIFlexible(A)6,962316,74369,25276,24232

PSGFlexible(A)5,543436,2868,76286,2822

MethodicalBCIEquityPreserver(B1)5,313611,74458,2129

ClucasGrayFutureTitansPrescient(A1)9,48943,7138,15303,74292

DotportBCIFlexibleFoF(A)7,831620,10298,12316,04252

*IPFlexibleFoF(A)6,882414,43407,43324,70281

NoblePPBCIAllWeatherFoF(A)5,933112,17447,35335,31262

CitadelSAManagedVolatilityEquityH4(B1)6,253014,32417,02346,91212

*OasisCrescentIncome(A)2,08466,60496,89356,94202

*NoblePPBCIFlexible(A)2,05475,92506,47367,21173

KornerBCIFlexible(A)4,384019,71305,2937

PrescientOptimisedIncome(B1)0,77503,09524,64385,29271

MarriottPropertyEquity(R)7,511728,36121,41392,63301

PlexusWealthBCIFlexiblePropertyIncome(A)14,02150,852-1,3940

GranateSCIFlexible(A)8,451230,5710

TRGFlexiblePrescientFoF(A1)8,021426,9814

NewFundsVol.MngdHighGrowthEquityETF6,322925,5818

*InvestecW&IBCIProgressiveYield(A)6,512524,8419

AGCapitalValueFlexibleSNN8,311324,3020

InvestecSIBCIProtectedEquity(A)11,95218,7331

MarriottEssentialIncome(C)2,384517,4833

NewFundsVol.MngdModerateEquityETF5,653314,9338

Global&LocalSNNBalancedFoF(A)6,462711,4246

NewFundsVol.MngdDefensiveEquityETF3,19449,5147

WestbrookPrimeOpportunitiesFlexible(E)1,36494,9651

AboutirPrimeWorldwideFlexible(R)7,4120

*FNBDefensiveFoF(A)5,4735

HIGH-EQUITY FUNDS

EmperorIPBalanced(A)7,259815,6217018,661

*HighStreetHighEquityPrescient(A1)9,342719,7411918,342

*LongBeachManagedPrescient(A1)4,8415915,9716518,34214,3115

FairtreeBalancedPrescient(A1)8,723616,2916218,013

*SouthernCharterBCIGrowthFoF(A)10,82628,70817,12410,8445

AylettBalancedPrescient(A1)10,93540,66116,83512,4525

*CentaurBCIBalanced(A)4,9515624,762515,51610,28115

PPSManaged(A2)5,7714521,317915,397

*SIMManagedAggressiveFoF(A1)7,508525,302115,25810,31104

DiscoveryAgg.DynmcAssetOptimiserFoF(A)10,461124,063315,1399,80185

*NedgroupInv.Managed(R)4,3316522,874715,13910,2112

KagisoIslamicBalanced(A)7,508527,071414,841010,7365

*AccornBCIBalancedFoF(C)7,289525,821714,53119,00374

AFInvestmentsAggressivePassive(A1)11,46223,574114,491210,7955

*ADBBCIFlexiblePrudentialFoF(A)7,359222,056514,47139,42274

*PrescientWealthBalancedFoF(A1)10,151623,124514,43149,65215

*SIMManagedModerateAggressiveFoF(A1)7,379123,953414,401510,07135

*NedgroupInv.Balanced(A)3,6316916,1316314,40159,51234

*CoronationBalancedPlus(A)7,309421,487714,25169,49244

*SanlamM-MAggressiveFoF(A1)8,624322,645414,18179,86174

*KagisoBalanced(A)7,279622,136313,911810,5884

ObsidianSCIBalanced(B1)4,2016722,385713,88199,01364

*NinetyOneOpportunity(R)8,703718,1214813,79209,6521

*FlagshipIPBalanced(A)5,5414817,0515813,77219,00374

*BCIPrudentialFoF(3B1)6,9810523,733813,74228,46563

CoreSharesOUTmoderateIndex(O)11,46228,421013,6923

KrugerCiBalanced(A)7,816820,1610913,5624

*BlueAlphaBCIBalanced(C)11,01429,63713,5125

*OldMutualM-MAggressiveBalancedFoF(A)7,538224,382913,47268,89414

*H4Diversied(B1)10,74822,515513,422710,3995

*StanlibM-MShar'iahBalancedFoF(B1)8,733525,621813,41289,4626

*PrescientBalanced(A2)8,634221,148213,412810,6074

*SygniaSkeletonBalanced70(A)6,8211018,6213513,39299,78195

CordatusBalancedPrescient(A1)7,329326,601513,33309,2532

*4DBCIModerateFoF(A)7,906422,335913,33308,65494

*AdviceworxOldMutualIn.+4-5%FoF(B1)7,0910322,266013,27318,99384

*SygniaCPI+6%(D)7,269720,0311313,26329,06344

*MultiAssetIPBalancedPlus(B1)7,597819,7911713,24339,54224

*StanlibM-MBalanced(B1)6,7811222,735213,23349,38294

*SBROBCIManagedFoF(A)6,6211620,3910413,18358,68483

*ChromeCiGrowth(A)9,262920,5410013,1336

*RowanCapitalBCIBalancedFoF(A)6,3312919,0413013,12379,47254

*OldMutualM-MBalancedFoF(A)7,189922,755013,08388,69473

SatrixBalancedIndex(A1)8,355225,052313,033910,0713

SanlamM-MBalancedFoF(A2)4,9715520,639613,03398,55553

DenkerSCIBalanced(A)7,419025,571912,9940

*WarwickBCIBalanced(B)6,3512817,7015112,99408,27614

NedgroupInv.CoreDiversied(B)7,627623,684012,98419,33304

*PPSBalancedFoF(A2)7,816824,283112,96429,2233

*NedgroupInv.CoreAccelerated(B)8,703727,171312,9343

FNBGrowthFoF(B1)9,771822,954612,88448,12673

*RoxburghCiBalancedPlusFoF(A)8,035820,828812,88448,76463

*CeltisBCIManagedFoF(A)6,2313518,2414612,87458,78454

*PersonalTrustManaged(A)9,352622,505612,86468,86424

*FGSCINeptuneGrowthFoF(A)6,2813219,5212212,82479,30314

*CSBCIAggressivePrudentialFoF(B)5,1415314,9017412,77488,03693

AutusPrimeDiversied(A)9,572119,7811812,7449

*WealthAssociatesBCIBalancedFoF(A)7,538221,587312,73509,87164

*NinetyOneManaged(R)2,2917215,0617212,71519,9115

*AbsaM-MPassiveGrowth(B)9,721921,836712,6352

*SanlamM-MModerateAggressiveFoF(A1)6,6311520,679312,63528,60533

*BovestBCIManagedFoF(A)7,1710019,5612012,62538,40583

*APSCiManagedGrowth(A1)10,421220,569812,61547,59813

*FALBCIBalanced(A)11,03327,921112,60557,30933

*RSABCIBalanced(A)9,153119,0013112,5956

*ImaliBCIPassiveBalanced(A)9,482320,559912,5857

*HollardPrimeStrategicAssertiveFoF(B)9,442422,824912,57588,94394

*NFBCiManaged(A)8,205420,2110712,41599,93144

*AutusPrimeBalanced(A)10,75713,5518212,33607,36903

*Point3BCIBalancedFoF(A)10,501018,3714312,25618,64503

*AssetMixCiBalanced(A)7,518420,1810812,23628,15663

*GravitonSCIBalanced(A1)7,906420,799012,22638,30603

*StanlibM-MMedium-HighEquityFoF(B1)6,7911122,096412,21648,82443

*GryphonPrudential(B)3,891687,9318712,196510,9335

*StanlibBalanced(R)6,5412015,8316812,16668,2364

NFBCiManagedGrowthFoF(A)7,846719,5312112,1367

*PersonalTrustPrudentFoF(A)7,647523,823712,09688,61523

AFInvestmentsPerformerManaged(A)6,3213020,669412,07698,63513

*MethodicalBCIBalanced(A)7,289518,2914512,05708,06683

*IPActiveBeta(A)8,434916,3216112,04718,89414

PPSBalancedIndexTracker(A2)8,425023,823712,02728,4457

*DiscoveryBalanced(A)7,896521,028512,00738,78453

*PBiBCIBalancedFoF(A)6,8510921,437811,95748,44573

*TrésorSCIBalanced(B1)9,891721,278011,94757,91733

*OldMutualBalanced(R)6,5312123,843611,84768,9240

*ClucasGrayEquilibriumPrescient(A1)6,9310728,60911,79779,70204

*IDCapitalBCIBalancedFoF(A)7,926314,5817811,7878

*M&GBalanced(A)7,478725,472011,76798,57543

*OldMutualCoreBalanced(A)8,265323,484211,68808,32593

*CelerityCiBalanced(B)7,1710020,659511,5881

*FoordBalanced(A)4,7116115,3317111,58817,39883

SageSCILongTermSolutionFoF(A2)5,9614318,0114911,56828,25633

*SimplisitiBCIManagedProtectorFoF(A)7,1110217,3315511,54837,78763

*ASForumBCIAggressiveFoF(A)7,607718,7913311,51847,64793

27fourAssetSelectFoF(A1)8,683820,639611,44857,76773

AbsaM-MCoreGrowth(C)7,478719,4312311,4386

*SasnBCIPrudential(A1)9,362515,9216611,34878,84434

*DetonPrimeManagedFoF(A)10,361420,988611,32888,26623

*RedOakBCIBalanced(A)5,4614916,0716411,31897,92723

*SanlamM-MModerateFoF(A1)6,0614217,4715311,30908,19653

*StelburgBCIBalancedFoF(A)9,093222,515511,2891

*MatrixSCIBalanced(B1)4,6816222,745111,2692

GraySwanSCIAggressiveFoF(A)9,282824,802411,2293

*PrivateClientBCIHighEquity(B)7,1610120,1511011,20947,9870

OasisCrescentBalancedHighEquityFoF(D)8,743421,806911,17957,42853

*LynxPrimeBalancedFoF(A1)6,4912322,844811,13967,4087

MomentumTarget7FoF(A)7,428922,375811,1197

*IPPrudentialEquity(A)7,518415,8716711,10987,82753

*1nvestHighEquityPassiveBalancedFoF(A)8,375124,303011,08997,13992

*SelectBCIBalanced(A)8,355215,8716711,08997,29942

*MooreCiGrowthFoF(A)8,105719,2412711,071007,25953

*OptimumBCIManagedGrowth(C)7,687420,4010311,06101

*AnchorBCIManaged(A)6,1713918,6013611,051027,061032

SentioSCIHikmaShariahBalanced(B1)7,468821,976611,011037,46843

*AbsaM-MGrowthFoF(A)8,494519,3312510,991046,961052

*PFPSCiBalancedFoF(A)9,692019,9111410,961057,97713

*InvesthouseCiBalanced(A)7,587918,3814210,94106

*CitadelBalancedH4(B1)10,60919,8711510,921077,90743

*PSGWealthModerateFoF(A)6,5312121,687110,851087,3491

*SequoiaBCIManagedGrowthFoF(A)8,654021,088410,82109

*AbsaPrudentialFoF(A)6,5911818,4913810,781107,48833

*ElementIslamicBalancedSCI(A)6,4012520,689210,761119,04354

*NorthstarSCIManaged(A1)6,0914118,3814210,751127,31923

*FALBCIBalancedFoF(A)5,2515213,8518110,741137,101002

*CSBCIPrudentialFoF(B)3,4817012,5718510,721147,63803

MomentumTarget6FoF(A)7,1110220,799010,67115

*CinnabarSCIBalancedPlusFoF(A)8,663920,0911210,671157,25952

*QuattroCiGrowthFoF(A)7,0410420,4610110,591166,721112

*AmityBCIManagedSelectFoF(A)7,498621,507510,581177,46842

*MedianBCIBalancedFoF(A)6,3912620,818910,581176,971042

*RebalanceBCIBalancedFoF(A)6,2913118,5313710,571186,871062

*27fourShariahBalancedFoF(A1)7,747119,4212410,561197,38893

*MomentumFocus7FoF(A)8,375122,715310,511206,841072

*FinancialFitnessIPBalancedFoF(A)6,1913713,3818310,501219,04354

*WealthworksPrimeManagedFoF(A)6,5711920,1511010,491227,50823

*AnalyticsCiBalancedFoF(A)9,442419,1212810,471237,13992

SentioSCIBalanced(B2)6,8710820,569810,45124

AnchorBCIDiversiedGrowth(A)7,528321,757010,431257,69783

*MomentumFocus6FoF(A)7,796921,248110,39126

*SignatureBCIBalancedFoF(A)6,1014020,4110210,331277,41863

PerspectiveBalancedPrescient(A1)4,4316433,55310,30128

*OasisBalancedUnitTrust(D)8,175522,176210,251296,791082

*PWSBCIModerateFoF(A)6,1813818,2114710,18130

*PSGBalanced(A)7,717335,32210,161317,2296

*PrescientAbsoluteBalanced(A2)7,876618,9713210,161317,82753

*CorionPrimeGrowth(A)8,454823,693910,111327,091012

*SeedBalancedPrescient(A1)8,474718,7013410,081337,18982

PerpetuaSCIBalanced(A)6,6111723,434310,011346,331162

SanlamPrivateWealthBalancedFund7,777018,3814210,011347,38892

OctagonSCIGrowthFoF(B1)5,6014717,7815010,001356,701122

*WellsFaberSCIBalancedFoF(A)6,5012214,591779,99136

*AssetbaseCPI+6%PrescientFoF(A1)9,203021,09839,981377,19972

*AllanGrayBalanced(A)5,0715420,251069,941387,40872

*SelectManagerBCIBalancedFoF(A)8,025920,141119,931396,841072

*JBLSCIManagedFoF(B1)6,2713316,741599,87140

*SIMBalanced(R)6,5012218,431409,731416,76110

*BCIBestBlendBalanced(C)6,7911120,55999,661426,451152

*AllanGrayTax-FreeBalanced(A)4,9015819,001319,631437,36902

*CapitaBCIBalanced(A)6,3612720,61979,571446,131171

*SAAssetManagementBCIManaged(A)8,644115,791699,571444,451291

*AureusNobilisBCIManaged(A)6,2013617,781509,351456,061182

PrimeShirazPrudentialAggressiveFoF(A)7,329323,94359,291465,851192

*AbsaManaged(A)4,8116024,56289,251476,681132

NewFundsMappsGrowthETF6,4012514,611769,131487,08102

*SkyblueBCICumulusModerateFoF(A)6,2513418,391419,091495,731221

*AshburtonBalanced(A)8,614417,161569,041506,611141

*ElementBalancedSCI(A)6,9410623,18448,701519,39283

AFInvestmentsRealReturnFocus(A)5,2815119,061298,551527,061032

*AfFinityCiGrowth(A)7,946216,071648,191536,781092

*CaleoBCIBalancedFoF(A)6,2013617,151577,751545,111261

*CustodianIMBCIBalanced(A)7,966116,661607,581555,251251

*CounterpointSCIBalancedPlus(A1)7,518415,021737,541566,331162

*BrenthurstBCIBalancedFoF(A)5,8014417,421547,53157

*CadizBCIBalanced(A)6,5312118,481397,411585,481231

*DotportBCIPrudentialFoF(A)6,8710817,491527,411585,811201

*RezcoValueTrend(A)0,21174-1,981906,841595,071271

*RezcoManagedPlus(A)-0,05175-2,741916,821604,931281

*NoblePPBCIWealthCreatorFoF(A)4,241669,241866,771615,281242

*MarriottBalancedFoF(A)4,9415712,631846,731625,751212

NMRQLSCIBalanced(A)4,5316314,741756,05163

*KanaanBCIBalancedFoF(A)2,891717,781885,881644,251301

*AmpersandSCICPIPlus6FoF(A)10,231519,801164,061653,131311

*PlexusWealthBCIBalanced(A)6,1713921,82683,791662,811321

*CounterpointSCIManagedP&G(A)5,3415033,5342,841671,841331

*VisioBCISABalanced(A)7,796933,415

PSGM-MGrowthFoF(D)4,9515629,666

*GranateSCIBalanced(B)7,548127,7512

*PMKManagedPrescientFoF(A3)7,906426,1616

*SelectBCIEnhancedCoreBalanced(A)10,391325,2822

CoreSharesWealthAccumulation(A)9,572124,7326

*10XHighEquityIndex(A)9,552224,6927

*InvestecW&IBCIDiversiedGrowthFoF(A)8,145624,0732

*VisioBCIBalanced(A)8,484623,6840

*WeaverBCIBalancedFoF(A)8,783322,1961

*PortfolioMetrixBCIBalancedFoF(A)7,0410421,6772

*AmplifySCIBalanced(A1)6,7811221,5274

*OysterCatcherRealFinBalanced(A)6,6411421,4976

*TRGBalancedPrescientFoF(A1)6,4312420,8887

SynergyCiGrowthFoF(A)8,634220,7191

*FairtreeInvestStrategicFactorPrescient(A1)9,352620,26105

*FisherDugmoreCiBalanced(A)7,976019,28126

*NewRoadBCIManagedFoF(A)7,269718,34144

NgwediGlobalBalancedSNN(R1)6,2813214,23179

TSBBalanced27four(A1)6,0614213,89180

*StarPrimeBalanced(C)2,271737,38189

*CelerityCiDiversied(A)13,021

*AluwaniBCIBalanced(A)7,7372

FNBCoreBalanced(A)7,5780

GradidgeMahuraCiGrowth(A)6,72113

*FNBMultiManagerBalanced(A2)5,62146

INCOME FUNDS

CoreSharesPreftraxETF17,32143,74113,66110,941

SaronSCIActiveBond(A)2,62119,02119,7129,2145

*SasnBCIFlexibleIncome(A)2,33248,68129,56310,3325

*VisioBCIUnconstrainedFixedInterest(B)2,521210,2659,3748,58105

*Mi-PlanIPEnhancedIncome(A1)2,08317,97209,2259,6135

*ThymeWealthIPMultiAssetIncome(A)1,72538,18188,896

AbsaTacticalIncome(A)2,43187,77228,847

GranateSCIMultiIncome(B)2,14277,51258,7488,8965

*AmplifySCIStrategicIncome(A1)1,91408,59138,5898,6884

*AshburtonDiversiedIncome(B)3,4849,7768,5110

*PSGDiversiedIncome(A)2,43189,6978,23117,9712

*StanlibFlexibleIncome(B1)2,45167,09338,10127,25304

*SaronSCIOpportunityIncome(A)1,34797,02357,98138,9455

BCIIncomePlus(C)1,81457,23327,97148,8574

*NorthstarSCIIncome(A1)2,41206,13647,91157,64204

MarriottCoreIncome(A)1,53674,06937,69167,97124

AbsaFlexibleIncome(A1)1,58635,58787,64177,88144

MarriottHighIncomeFoF(A)1,52683,88947,63187,83154

FairtreeFlexibleIncomePlusPrescient(A1)1,55656,93367,59198,6294

AmpersandSCIIncome(A)1,63606,84397,5620

*NedgroupInv.FlexibleIncome(A)2,24258,24157,54217,7717

TrésorSCIIncome(B1)2,63107,53247,54217,61224

*SelectManagerBCIIncomeFoF(C)1,79476,55477,32227,58233

*FNBIncomeFoF(B1)2,40217,92217,26237,15363

CustodianIMBCIIncomePlus(A)1,50705,48817,24248,12114

*SimplisitiBCIIncomePlusFoF(A)1,75506,93367,21257,44263

HarvardHouseBCIFlexibleIncome(A)2,7089,02117,20266,13493

MomentumIncomePlus(A)1,37775,76747,15277,94134

*NovareCapitalPreserverFoF(A1)1,80466,71447,14287,38283

*OptimumBCIIncome(A)1,51696,16637,1329

*BCIBestBlendFlexibleIncome(C)1,67566,53497,12307,67184

*CadizBCIAbsoluteYield(A)1,94376,78427,01317,77173

*StanlibM-MAbsoluteIncome(B1)2,21267,49266,98327,66193

*GravitonSCIFlexibleIncome(A1)2,12296,86386,92337,33293

*PrescientIncomeProvider(A2)2,36237,07346,91347,62213

*AnchorBCIFlexibleIncome(A)1,54665,53806,91347,04393

SalvoPrimeDynamicIncome(A1)1,61616,39586,8935

*CounterpointSCIEnhancedIncome(A1)2,47157,31306,84367,79163

*AutusPrimeIncomePlus(A)1,90415,03886,84367,22333

PrimeFlexibleIncome(A)1,74516,48516,8337

*MomentumDiversiedIncome(B1)1,92396,20626,80387,41273

OctagonSCIFlexibleIncomeFoF(B1)1,91406,79416,7839

*PersonalTrustIncome(A)1,77495,85726,77407,13372

*MethodicalBCIIncome(B1)1,96366,44556,7341

SelectBCIFixedIncome(A)1,56645,29826,73416,48443

*PortfolioMetrixBCIIncome(A)1,65586,82406,71427,54243

*27fourShariahIncome(A1)1,86425,27836,7142

MarriottIncome(R)1,34794,09926,71427,23322

*PrescientSAIncomeProvider(A2)2,38228,23166,63437,53253

*HollardPrimeDynamicIncome(B)1,85436,43566,61447,24313

*RowanCapitalBCIIncomeFoF(A)1,78486,45546,59457,13372

AFInvestmentsEnhancedIncome(A)0,89864,84906,59457,44263

PPSFlexibleIncome(A2)2,10306,75436,57467,2530

*CadizBCIEnhancedIncome(C)1,49715,61776,56477,17352

*NinetyOneDiversiedIncome(A)1,58636,16636,53487,3329

*CoronationStrategicIncome(A)1,91406,67456,52497,21343

*CaleoBCIActiveIncome(A)3,3857,76236,45507,21343

*CinnabarSCIIncomeFoF(A)1,60625,94696,45506,76422

*OldMutualM-MEnhancedIncomeFoF(A)1,22835,19856,34516,91412

AFInvestmentsInationLinkedBond(A)5,16315,1826,33524,23552

*FGSCIJupiterIncomeFoF(A)0,60905,68756,33526,95402

*InvestecW&IBCIActiveIncomeFoF(A)1,67565,83736,3253

*DotportBCIIncome(A)1,05844,22916,3253

*DiscoveryDiversiedIncome(A)1,53676,00676,29547,05382

AbsaM-MIncome(C)1,32815,03886,1755

MomentumInationLinkedBond(A)5,17215,0736,12564,03572

*M&GEnhancedIncome(A)2,03336,36596,06576,20482

*SIMSAActiveIncome(A1)1,36785,20846,05586,75432

*SeedIncome(A1)1,83446,54485,91596,29462

*PSGWealthIncomeFoF(A)1,69545,86715,90606,2847

IFMIncome(E)1,64596,29615,3761

*CapitaBCIRealIncome(A)1,40745,55795,35626,39452

SasnBCIOptimalIncome(A)1,43734,91895,27635,55501

InvestecSIBCIEnhancedIncome(A)0,82872,99965,0464

MomentumOptimalYield(A)1,39755,06865,02656,28471

SanlamDiversiedIncomeFoF(A3)0,99853,48954,67665,2951

SouthchesterIPOptimumIncome(A)0,72882,64984,45675,17531

*ElementSpecialistIncomeSCI(A)2,05327,37294,39685,21521

*NinetyOneAbsoluteBalanced(A)1,33805,04874,02694,0856

SanlamAlternativeIncome(A1)0,66892,68973,96704,5554

*KagisoIslamicHighYield(A)2,491310,314

*OldMutualAlbarakaIncome(A)2,48149,688

*IntellivestBCIIncome(B)2,6799,459

*PortfoliometrixBCIDynamicIncome(A)2,42199,4310

*ArgonBCIFlexibleIncome(A)3,0068,5114

*10XDefensiveIndex(A)2,7978,2316

PSGM-MMulti-AssetIncomeFoF(D)1,85438,2017

CorionPrimeIncome(A)2,13288,0519

*FinancialFitnessDiversiedIncomeIPFoF(A)1,85437,4427

*NgwediActiveIncomeSNN(R1)1,72537,4228

PrescientIncomePlus(A2)2,12297,2831

*SygniaEnhancedIncome(A)1,66576,9037

*NewRoadBCIIncomeFoF(A)1,93386,6246

LauriumIncomePrescient(A1)1,98356,5050

*RebalanceBCIRealIncome(A)1,68556,4851

*QuantumBCIIncome(C)1,68556,4752

MomentumFlexibleIncome(A)1,92396,4653

*TRGIncomePrescientFoF(A1)1,99346,4257

OakhavenSNNCoreIncome(A2)2,10306,3060

*SequoiaBCIFlexibleIncome(A)1,58636,1265

*PWSBCIFlexibleIncome(A)1,64596,0766

*PMKIncomePrescientFoF(B4)1,73525,9668

*FisherDugmoreCiDiversiedIncome(A)1,47725,9469

*Delta4BCIIncome(A)1,38765,8770

DalebrookBCIIncome(A1)1,47725,6875

*TantalumBCIStrategicIncome(A)1,68555,6376

*WealthAssociatesBCIIncome(A)1,31825,4881

*FNBMultiManagerIncome(B1)2,4417

*AluwaniBCIFlexibleIncome(A)1,9140

LOW-EQUITY FUNDS

*AbsaSmartAlphaDefensive(A)6,731217,481312,791

*SouthernCharterBCIDefensiveFoF(A)7,40419,281012,0028,41204

*AmplifySCIWealthProtector(B5)2,5212412,928812,0029,7325

*SelectBCICautious(A)5,345511,8110911,85310,0915

*StanlibBalancedCautious(B1)5,116413,038611,5947,99304

*MontroseBCICautiousFoF(A)6,302315,563911,5258,76124

*DiscoveryCons.DynmcAssetOptmsrFoF(A)6,401915,963111,4969,0395

*MultiAssetIPBalancedDefensive(B1)6,102914,825211,4379,0685

*SIMManagedCautiousFoF(A1)5,963317,971211,3088,66144

*SygniaSkeletonBalanced40(A)4,897213,357611,1599,2375

KrugerCiPrudential(A)5,604616,142711,1010

*PersonalTrustConservativeManaged(A)6,95917,341410,96118,36214

*H4Stable(B1)7,55216,092910,96119,4265

*AmplifySCIDefensiveBalanced(A1)4,459116,332210,81129,4455

*AdviceworxOldMutualIn.+2-3%FoF(B1)5,196015,464210,80138,31224

*FinancialFitnessIPStableFoF(A)5,684212,489710,73149,6035

*NedgroupInv.CoreGuarded(B)5,305716,502110,72158,67135

FNBStableFoF(B1)6,162615,124810,72158,14294

*NedgroupInv.Stable(A)3,931078,7613610,68168,2923

PPSConservativeFoF(A2)5,983215,514110,62178,8511

*StanlibM-MLowEquityFoF(B1)4,758015,534010,54188,49184

CoreSharesOUTcautiousIndex(O)7,06718,431110,5219

*NinetyOneCautiousManaged(A)5,335611,9610610,51208,5716

*OldMutualCoreConservative(A)5,534815,983010,4721

*SatrixLowEquityBalancedIndex(A1)6,003116,731810,46228,1727

*RoxburghCiConservativeFoF(A)5,873714,345910,46228,19254

AFInvestmentsConservativePassive(A1)7,40415,873210,42238,41204

*SasnBCIStable(A)6,312219,72810,38249,5245

*AutusPrimeStable(A)5,81388,6313710,31257,33513

*BCIStableFoFClass3B16,162617,251510,25267,94314

*FALBCIStableFoF(A)4,917112,838910,20277,86344

*SanlamM-MCautiousFoF(A1)4,0110613,337710,18288,31224

*27fourStableFoF(A1)6,821114,825210,17298,29234

PPSDefensive(A2)6,98819,89510,1530

*TrésorSCIStable(B1)5,923413,95699,99317,10593

*KagisoStable(A)6,132723,1329,98328,93104

*HollardPrimeStrategicDefensiveFoF(B)6,282416,13289,92338,21244

*OldMutualM-MCautiousFoF(A)4,459113,49749,92337,62413

*StanlibM-MDefensiveBalanced(B1)4,956915,29469,90347,65393

*OptimumBCIStable(C)5,395214,07669,8835

*4DBCICautiousFoF(A)5,355413,08849,88357,66383

*OasisBalancedStableFoF(D)8,56122,9239,81366,64743

*APSCiCautious(A1)7,35514,94519,78377,22553

*CeltisBCIConservativeFoF(A)3,6611411,411189,77387,72374

*LynxPrimeCautiousFoF(A1)4,857516,17259,76397,8733

*CorionPrimeStable(A)5,674315,78349,75408,18264

*FGSCIVenusCautiousFoF(A)4,518912,73929,71417,75364

*DinamikaBCIConservativeFoF(A)4,996716,59209,69426,80683

*DiscoveryCautiousBalanced(A)5,484913,16819,64438,51174

*NFBCiStable(A)5,205913,47759,61448,59154

PrescientDefensive(A2)6,431817,48139,6045

*CoronationBalancedDefensive(A)4,688312,69949,50467,61423

*SBROBCIDefensiveFoF(A)3,7811110,651279,49477,65394

*StelburgBCICautiousFoF(A)6,073015,32459,4648

*SanlamM-MDefensiveFoF(A2)3,0012011,451169,46487,64403

*GravitonSCILowEquity(A1)4,578612,46989,44497,55443

GraySwanSCICautiousFoF(A)6,132716,85179,4250

*BCIBestBlendCautious(C)4,927014,39589,36517,17563

*WealthworksPrimeCautiousFoF(A)4,797815,23479,31527,42473

OctagonSCICautiousFoF(B1)4,189912,77919,31527,29543

*BCIIncomeProvider(A)3,5211612,92889,25536,99613

*PFPSCiCautiousFoF(A)6,921014,19649,21547,75363

*WealthAssociatesBCICautiousFoF(A)4,409413,25789,19558,48194

*BovestBCIConservativeFoF(A)4,0110611,961069,14566,57763

PrimeCabernetStableFoF(A)5,534815,05509,13577,12583

*AnchorBCIDiversiedStable(A)4,867414,25619,13577,82353

*PrivateClientBCILowEquity(B)5,205913,19809,12587,5145

*SIMIn.+(A)4,668412,92889,08597,60433

*SequoiaBCIStableFoF(A)6,322115,76359,0760

*OldMutualStableGrowth(A)3,8610816,88169,01617,90323

*OasisCrescentBalancedStableFoF(D)6,521616,18249,01616,57763

*CelerityCiConservative(B)5,644412,92889,0062

*ASForumBCICautiousFoF(A)5,584714,29608,98637,17563

*SygniaCPI+2%(D)4,0410511,851088,98637,35503

*NFBCiDefensiveFoF(A)5,783913,91708,9764

*AssetMixCiConservative(A)5,764113,47758,97646,97623

*AmityBCISteadyGrowth(A)4,1010212,091048,96656,99613

*AureusNobilisBCICautious(A)4,449213,00878,94666,87653

AutusPrimeCautious(A)7,55212,211038,9167

AbsaM-MPassivePreserver(A)5,614512,271018,7868

MomentumTarget3FoF(A)4,966814,67548,7769

*PBiBCIConservativeFoF(A)4,339612,55968,76707,37493

*InvesthouseCiCautious(A)5,883613,78738,6971

*MomentumFocus3FoF(A)5,873715,72368,65726,33812

SageSCIProtectionSolutionFoF(A2)5,126314,21638,63736,73702

*CinnabarSCIStableFoF(A)5,385312,78908,63737,31533

*MooreCiStableFoF(A)5,385313,15828,62746,82672

*AssetbaseCPI+2%PrescientFoF(A1)5,076511,491158,60758,15284

*PlatinumBCIIncomeProviderFoF(A)3,8011010,721268,56767,08603

*WellsFaberSCIStableFoF(A)5,295814,19648,5577

*QuattroCiCautiousFoF(A)4,558810,961238,53786,65732

*AnalyticsCiCautiousFoF(A)6,561513,82718,47796,85662

*AbsaM-MPreserverFoF(A)4,887311,751118,44806,38802

*Mi-PlanIPIn.+3(B5)4,738110,611298,39817,31533

*MethodicalBCIStable(A)4,738111,441178,38826,93642

*Point3BCIConservativeFoF(A)6,003111,671128,33837,40483

*SelectManagerBCICautiousFoF(A)5,405114,22628,32846,48792

*M&GIn.+(A)6,401920,1848,27855,86922

DenkerSCISAStable(A)4,738111,991058,2785

*AllanGrayStable(A)3,7711215,08498,24867,40483

*RebalanceBCICautiousFoF(A)3,7311311,631138,23876,38802

LauriumStablePrescient(A1)-2,341329,741338,2387

*DynastyCiWealthPreserver(A2)7,20613,06858,20887,32523

*ABAXSAAbsolutePrescient(A1)4,349512,331008,1989

Ginsburg&SelbySCIStableFoF(A1)3,211199,051358,1590

NewFundsMappsProtectETF5,176113,22798,14916,2983

*SIMManagedConservativeFoF(A1)3,8510910,891248,13927,14573

ConstellationProtectedGrowthPrescient(A1)4,0510410,321318,0993

*1nvestLowEquityPassiveBalancedFoF(A)5,774016,15268,07944,851001

*IPDiversiedIncomeFoF(A)4,51899,871328,07946,70713

*PSGWealthPreserverFoF(A)4,817714,50578,01956,2884

*PWSBCICautiousFoF(A)3,6611411,071228,0096

*QuantumBCICapitalPlusFoF(A)4,259812,42997,96976,32822

*AfFinityCiCautious(A)5,305711,951077,96976,70712

*SignatureBCIStableFoF(A)4,1110113,11837,88986,67722

*CadizBCIStable(A)4,0810311,781107,88986,77692

*CapitaBCICautious(A)4,479014,62557,86996,23872

AbsaM-MCorePreserver(C)4,1610010,961237,8699

*AFInvestmentsStableFoF(A)4,429310,871257,831006,56772

*SanlamM-MConservativeFoF(A1)2,831228,621387,801017,45463

*EdgeBCICautiousFoF(A)4,917114,01687,791026,14892

AbsaInationBeater(A)2,001286,461447,651037,99304

*BrenthurstBCICautiousFoF(A)4,777910,631287,591046,27852

*ArgonBCIAbsoluteReturn(A)5,355412,65957,491056,17882

*PSGStable(A)4,1610019,7877,391066,5478

*SeedStablePrescient(A1)6,102913,80727,381075,17971

*SAAssetManagementBCICautious(A)5,584710,371307,301085,61942

*ElementRealIncomeSCI(A)4,708215,08497,181096,94632

*CounterpointSCICautious(A1)5,475011,631137,101106,25862

*OldMutualCapitalBuilder(A)3,541158,101396,631115,94912

*AbsaAbsolute(A)2,6012311,581146,581125,58952

*AshburtonTargetedReturn(B4)6,591415,36436,371135,05981

*OldMutualRealIncome(A)2,471268,021406,181146,60752

*DotportBCICautiousFoF(A)4,658511,341196,161155,64931

*NoblePPBCIStrategicIncomeFoF(A)2,901217,551415,921166,07902

*RezcoStable(A)-0,82131-2,721475,851175,47961

*SkyblueBCIKimberliteCautiousFoF(A)3,8610811,281205,611184,131011

*StewartBCIAbsoluteReturnBlendFoF(A)2,501256,291455,371195,01991

MFSSCICautiousFoF(B1)6,112813,22795,34120

*AmpersandSCICPIPlus2FoF(A)6,332014,16653,871213,831021

*CounterpointSCIStableP&G(A)5,684228,3313,691223,001031

*PlexusWealthBCIConservative(A)5,006615,34443,151232,991041

AllanGrayOptimal(A)-0,691306,691431,581242,811051

*OysterCatcherRealFinStable(A)5,345519,886

PSGM-MCautiousFoF(D)3,2411819,319

*SelectBCIEnhancedCoreCautious(A)6,661316,7219

*PMKStablePrescientFoF(A3)5,166216,3123

*InstitBCIManaged(A)5,205915,8633

SynergyCiConservativeFoF(A)6,481715,6537

CoreSharesStableIncome(A)7,49315,6138

*10XLowEquityIndex(A)5,534814,7753

*WeaverBCIStableFoF(A)5,913514,6156

*PortfolioMetrixBCICautiousFoF(A)4,568714,0667

MianzoCPI+3%27four(A1)4,1110113,0087

*NewRoadBCIStableFoF(A)4,837612,7093

*RSABCICautious(C)6,192512,22102

*TRGStablePrescientFoF(A1)3,5011711,25121

NgwediAbsoluteReturnSNN(R1)2,011279,30134

*StarPrimeStable(C)1,901297,18142

*SteerSNNStableClass14,28975,12146

*GradidgeMahuraCiCautious(A)4,8376

MEDIUM-EQUITY FUNDS

*SouthernCharterBCIBalancedFoF(A)8,89823,29315,63110,3715

*DiscoveryMod.DynmcAssetOptmsrFoF(A)8,691021,32814,1129,9545

*NedgroupInv.Opportunity(A)11,44131,18114,0338,25224

*MontroseBCIModerateFoF(A)8,211519,881813,4149,16105

*ADBBCIBalancedFoF(A)7,133220,771013,2158,90114

*SIMManagedModerateFoF(A1)6,814321,62713,0069,4574

*AeonBalancedPrescient(A1)6,644720,181512,9379,9835

*StanlibM-MRealReturn(B1)6,834220,251412,8489,3985

*SygniaSkeletonBalanced60(A)6,295716,846112,5799,7155

*ChromeCiModerate(A)8,141619,852012,4110

KagisoProtector(A)5,357620,621112,241110,0724

*MultiAssetIPBalanced(B1)6,844117,924312,23129,3295

CoreSharesOUTstableIndex(O)9,48323,05412,1913

FNBModerateFoF(B1)8,351319,871912,13148,34194

*SasnBCIBalanced(A)7,832316,046812,10159,4965

*RoxburghCiBalancedFoF(A)7,263018,123712,08168,71144

*SygniaCPI+4%(D)6,305617,275512,05178,60164

*StanlibM-MMediumEquityFoF(B1)5,896619,732211,99188,61154

*AdviceworxOldMutualIn.+3-4%FoF(B1)5,946517,964211,90198,49174

*FGSCISaturnModerateFundsofFunds(A)5,537417,694611,82208,15243

*HollardPrimeStrategicBalancedFoF(B)8,111720,031711,77218,88124

*FosterBCIModerateFoF(A)6,086118,153611,73228,15244

*OldMutualM-MDefensiveFoF(A)5,826817,994111,72238,28214

*APSCiModerate(A1)9,10518,513311,59247,59343

*GravitonSCIMediumEquity(A1)7,292917,595011,57257,97283

PPSModerateFoF(A2)5,946517,125811,57258,7713

*DetonPrimeBalancedFoFClassZ9,43419,442411,4926

*MelvilleDouglasStanlibMediumEqtyFoF(A)6,016317,814411,38278,40183

*PlatinumBCIBalancedFoF(A)5,647015,287711,37288,09254

*WealthAssociatesBCIModerateFoF(A)6,305618,004011,32299,4964

*AmplifySCIAbsolute(A1)4,448118,583211,2530

*MethodicalBCIAbsolute(A)6,873915,996911,2031

*CelerityCiModerate(B)7,322818,043911,1932

*PrivateClientBCIMediumEquity(B)5,986417,714511,12338,3020

*OldMutualCoreModerate(A)6,854019,462311,0534

*FoordConservative(A)3,668411,179010,95358,21233

*OasisCrescentBalancedProgressiveFoF(D)8,621122,27610,88367,2041

*DiscoveryModerateBalanced(A)6,584917,684710,86378,60163

*AbsaM-MPassiveAccumulation(B)8,041917,664810,8637

*27fourBalancedFoF(A1)8,221418,772910,85387,90293

*AssetMixCiModerate(A)6,913618,972710,77397,85303

*OldMutualAlbarakaBalanced(A)9,02621,32810,73357,51353

*CapstoneBCIBalanced(A)5,537420,061610,69416,89462

*NovareBalanced(A1)6,903717,145710,6742

*CoronationCapitalPlus(A)5,866715,977010,60437,09433

*QuattroCiModerateFoF(A)6,026214,538110,60437,28383

*ASForumBCIModerateFoF(A)6,505317,025910,55447,26393

*MooreCiBalancedFoF(A)7,412616,616410,52457,34373

*AbsaBalanced(R)5,796923,02510,50467,7233

*SBROBCIBalancedFoF(A)4,827913,678710,44477,07443

*OptimumBCIBalanced(C)7,073316,856010,3748

*SageSCIModerateSolutionFoF(A2)7,233118,353410,33497,09433

*AssetbaseCPI+4%PrescientFoF(A1)7,782418,043910,26507,99263

PPSStableGrowth(A2)5,587217,125810,1351

*PFPSCiModerateFoF(A)8,72918,06389,95527,72333

*ChromeCiDefensive(A)6,525214,81809,9453

*AnchorBCIDiversiedModerate(A)6,245818,16359,87547,73323

GraySwanSCIModerateFoF(A)7,532520,56129,8455

SIMMediumEquity(A1)5,647015,65759,8156

*CinnabarSCIBalancedFoF(A)6,903716,39669,79577,37363

*AbsaM-MAccumulationFoF(A)6,893815,94719,78586,72492

*AmityBCIPrudentFoF(A)7,063418,97279,71596,41512

*DestinyBCIPrudentialFoF(A)5,647018,64319,65607,25402

AbsaM-MCoreAccumulation(C)6,136015,41769,6560

*MergenceCPI+4%Prime(A1)4,028310,97919,65607,37363

*AnalyticsCiModerateFoF(A)8,92717,40539,58617,13422

*OldMutualModerateBalanced(A)4,368219,42259,55627,98273

IFMBalancedValueFoF(A)7,932110,97919,52633,42592

*OldMutualDynamicFloor(A)6,425518,58329,44646,83472

MomentumTarget4FoF(A)5,647017,51519,4265

MomentumTarget5FoF(A)6,016318,94289,3966

*QuantumBCIBalancedFoF(A)5,637115,85729,20676,61502

*BaroqueBCIModeratoFoF(A)5,547315,06799,16685,19572

*PrescientPositiveReturnQuantPlus(A2)9,77215,76739,07695,62551

*MomentumFocus4FoF(A)6,555117,36549,0070

*SelectManagerBCIModerateFoF(A)6,684616,46658,91716,36522

*Mi-PlanIPIn.+5(B5)6,205912,61888,75726,94452

*SAAssetManagementBCIModerate(A)7,332713,79858,71735,03581

*Mi-PlanIPIn.+7(B5)6,714513,92848,67747,81313

*MomentumFocus5FoF(A)5,527517,63498,66755,90541

*IPPrudentialFoF(A)6,724414,17838,31765,91531

*AfFinityCiModerate(A)6,604814,38828,29776,77482

*FairtreeFlexibleBalancedPrescient(A1)7,942013,78868,15786,94452

*CounterpointSCIModerate(A1)6,295711,91897,83796,41511

*MFSSCIModerateFoF(B1)8,381216,80626,5480

*NoblePPBCIBalancedFoF(A)4,46808,28926,21815,52561

*EngelbergBCIBalanced(A)5,09777,35934,3782

*AmpersandSCICPIPlus4FoF(A)8,351317,45523,57833,11601

*PMKBalancedPrescientFoF(A3)6,684624,462

*BCIMultikorModerateFoF(A)8,211521,019

*10XMediumEquityIndex(A)7,912220,5413

*WeaverBCIModerateFoF(A)8,091819,8321

*PortfolioMetrixBCIModerateFoF(A)5,946519,1226

SynergyCiModerateFoF(A)7,832318,7630

*EdgeBCIBalancedFoF(A)5,946517,1956

*FisherDugmoreCiModerate(A)6,943516,7663

*TRGModeratePrescientFoF(A1)4,987816,2567

*NewRoadBCIModerateFoF(A)6,086115,7374

*CaleoBCIModerateFoF(A)6,485415,1178

*SasnBCIHorizonM-MAccumulation(A)6,8143

FNBIslamicBalanced(B1)6,5750

*GradidgeMahuraCiModerate(A)5,9465

TARGET DATE FUNDS

DiscoveryTargetRetirement2055(A)7,90322,19110,511

*DiscoveryTargetRetirement2050(A)7,93222,18210,4527,365

*DiscoveryTargetRetirement2040(A)7,65521,45410,3737,266

DiscoveryTargetRetirement2060(A)8,09122,19110,324

*DiscoveryTargetRetirement2045(A)7,81421,47310,1957,138

*DiscoveryTargetRetirement2025(A)6,45817,69710,0467,593

*DiscoveryTargetRetirement2020(A)6,10916,3589,9977,772

*DiscoveryTargetRetirement2035(A)7,36620,2859,9687,227

*DiscoveryTargetRetirement2030(A)7,02719,1469,8497,454

*DiscoveryTargetRetirement2015(A)5,681015,0999,73107,851 ArithmeticAverage7,2019,6010,107,38

SOUTH AFRICAN INTEREST-BEARING

SHORT-TERM FUNDS

TrueSCIIncomePlus(A)1,8127,4628,0919,6915

PSGIncome(A)1,24124,88117,4827,862

*MatrixSCIStableIncome(B1)1,00314,59227,393

TerebinthSCIEnhancedIncome(B1)1,24125,8547,324

*AbsaIncomeEnhancer(R)1,4844,99107,0957,6474

CentralFundisa(B8)1,26104,80156,8867,843

NedgroupInv.Fundisa(A)1,23134,76166,8777,814

*SIMEnhancedYield(A1)1,25115,1476,8187,7855

AbsaCoreIncome(A)1,16194,29296,7797,6664

StanlibM-MEnhancedYield(B1)1,24125,0296,63107,36113

OldMutualIncome(R)1,06273,52366,57117,4894

StanlibIncome(R)1,2894,46246,53127,5283

PPSEnhancedYield(A2)1,20164,87126,48137,3512

*AshburtonStableIncome(A)1,21155,1386,40147,29134

*MomentumEnhancedYield(A)1,3084,45256,39157,20153

NinetyOneHighIncome(R)1,13214,81146,35167,3910

PrescientYieldQuantPlus(A2)1,22144,73176,33177,11193

PrimeIncomePlus(A)1,10234,63216,31187,14163

*HollardPrimeYield-Plus(B)1,3574,64206,30197,13173

StandardBankFundisa(A)1,11224,18316,26207,2214

*InstitBCIEnhancedYield(A)1,15204,33276,2521

*AFInvestmentsSuperiorYield(A)1,19174,64206,24227,04212

CitadelSAIncomeH4(B1)1,18184,72186,21237,10202

*M&GIncome(A)1,09244,68196,15247,11193

*AshburtonSAIncome(B1)1,3084,34266,05257,12183

CoronationJibarPlus(A)1,07264,33275,95266,88232

*NedgroupInv.CoreIncome(B)1,07264,32285,93276,78242

StanlibEnhancedYield(B1)1,07264,23305,9327

*StanlibExtraIncome(R)1,05284,55235,92286,89223

AbsaFundisa(A)0,85343,82345,83296,7824

*NinetyOneSTeFIPlus(A)1,08254,18315,82306,6825

*IPInterestPlus(A)1,03304,14325,66316,66261

PSGWealthEnhancedInterestFoF(A)0,97323,95335,61326,4228

OldMutualInterestPlus(A)0,90333,74355,58336,52272

GryphonDividendIncome(A)0,77353,04374,68345,47291

SasnBCIHighYield(A)1,8718,131

NgwediSNNInterestIncome(R1)1,6035,903

*VunaniBCIShortTermInterest(A)1,3865,305

AbaxSAIncomePrescient(A1)1,4055,216

AnchorBCICoreIncome(A)1,19174,8513

PSGEnhancedInterest(D)1,04292,2538

FirstGlobal1BCIEnhancedYield(A)1,0825

VARIABLE-TERM FUNDS

*AbsaBond(A)3,02197,673510,29110,0115

NedgroupInv.CoreBond(A)2,98218,71189,3729,274

CitadelSABondH4(B1)2,54377,24379,2039,342

*FairtreeAlbiPlusPrescient(A1)3,16138,49219,124

PortfoliometrixBCISABond(A)2,76278,68209,0359,2054

AnchorBCIBond(A)2,74287,95309,0069,1064

*StanlibBond(A)3,08168,39228,9379,0274

AbsaBondIndex(A)2,85248,19268,878

*AFInvestmentsPureFixedInterest(A)3,09159,73118,6998,7393

PrescientFlexibleBond(A2)4,81614,4468,68108,32203

SIMBondPlus(A)2,95228,92158,68108,67103

MomentumBond(A)2,98218,86168,65118,8083

SygniaAllBondIndex(A)2,80258,21248,61128,4914

*AllanGrayBond(A)3,09157,98298,57139,3334

NewFundsGoviETF2,70317,88318,57138,4516

*OasisBond(D)3,00208,69198,51148,7393

1nvestAlbi(Non-Tr)Ind.Tr.(A)2,73297,81328,49158,4815

*AshburtonBond(A)3,04188,75178,44168,61122

SatrixBondIndex(A1)2,72307,73348,43178,4417

AbsaM-MBond(A)2,982110,3178,35188,40183

OldMutualBond(R)2,67348,34238,19198,35192

CoronationBond(R)3,40119,95108,06208,62112

*M&GHighYieldBond(A)3,11149,43138,00218,09222

*MelvilleDouglasStanlibBond(A)2,68337,52367,93228,07231

AbsaInationLinkedIncome(A)1,54416,06397,81238,04243

PrescientFlexibleFixedInterest(A2)2,03406,84387,77248,50134

*CommunityGrowthGilt(A)2,69327,99287,66258,12212

SatrixIlbiETF(A)5,19215,1936,7826

NewFundsIlbiETF5,03315,2026,67274,3225

AshburtonInationETF4,98515,0846,66284,3126

1nvestInationLinkedBondInd.Tr.(A)5,01414,9156,42294,1727

ColoureldBCIIncome2(A)7,52119,3615,20302,16281

1nvestSABondETF2,762710,148

ArgonBCIBond(A)3,93710,029

*VunaniBCIBond(A)3,35129,7012

*OakhavenSNNBond(A2)3,8589,2514

*SygniaEnhancedAllBond(A)2,89238,3922

TerebinthSCIActiveBond(B1)2,61358,2025

SatrixSABondPortfolioETF(A)2,79268,0427

DiscoveryStrategicBond(A)2,59367,8033

*VisioBCIBond(A)3,689

*FNBMultiManagerBond(A1)3,5610

FairtreeBondPrescient(A1)3,0517

*NgwediSNNBondClassT42,7627

AmpersandSCIBond(A)2,3538

MethodicalBCIBond(B1)2,1339

SOUTH AFRICAN REAL ESTATE

GENERAL FUNDS

HarvardHouseBCIProperty(A)8,851242,4235,3412,4025

CatalystSCIFlexibleProperty(A)9,70440,6283,7823,1415

PortfolioMetrixBCISAProperty(A)7,912538,61110,723-0,9934

AbsaPropertyEquity(A)7,363638,37120,294-2,3695

CadizBCIProperty(B)7,563234,45340,045-3,13103

OldMutualSAQuotedProperty(A)9,69538,9610-0,176-1,6864 SeskileBCIProperty(A1)8,251937,9414-0,187-1,1444

PlexusWealthBCIProperty(A)12,82146,132-0,548-3,61124

HollardPrimeProperty(B)8,681337,3518-0,659-1,4853

AbsaSmartAlphaProperty(A)7,962437,4017-1,1810-4,62173 MetopePropertyPrescient(A)7,603133,4337-1,6811-3,56114 OasisPropertyEquity(D)9,92235,8725-2,2512-4,37161

MSMProperty27four(A1)8,521436,2020-2,3613

AnchorBCIProperty(A)8,202133,3938-2,4914-2,2982

DiscoveryFlexibleProperty(A)9,53841,114-2,6115-3,76133 AbsaPropertyIndex(A)8,481736,3719-3,1716 SatrixPropertyIndex(A1)8,212036,2020-3,3217-4,8120

AFInvestmentsPropertyEquity(A)7,902635,0232-3,4818-4,26143

PrescientPropertyEquity(A2)8,042235,8924-3,5019-4,82213

SygniaListedPropertyIndex(A)7,772835,9823-3,5320-4,8923 NinetyOnePropertyEquity(A)8,511540,896-3,7021-4,6718

MarriottPropertyIncome(A)9,55736,1021-3,7622-1,8173

1nvestSAPropertyETF7,972335,8126-3,7622-4,9724

MomentumRealGrowthPropertyIndex(A)7,533434,6533-3,8123

M&GEnhancedSAPropertyTracker(A)8,471837,6415-3,8324-5,35272

CatalystSCISAPropertyEquity(A)7,343738,0913-3,8425-4,3115

MomentumRealGrowthProperty(A)7,244035,6629-4,1626-4,86223

StanlibPropertyIncome(B1)7,234132,2340-4,3127-6,46291

PrimeProperty(A)7,333834,4035-4,3328-4,68192

CitadelSAPropertyH4(B1)7,832737,5316-4,5329-5,29262

AshburtonProperty(A)7,723032,8039-4,7430

SIMProperty(A)7,273936,0622-4,7831-5,8128

MomentumSARealGrowthProperty(A)7,513535,8027-4,7831

CoronationPropertyEquity(A)7,553335,4530-5,7532-5,24252 NedgroupInv.Property(A)9,89349,041-6,5433-7,94311

1nvestCappedPropertyInd.Tr.(B3)7,732935,4131-6,8034-7,6230 SatrixPropertyETF(A)8,491639,619-7,5635

CoreSharesSAPropertyIncomeETF9,61641,075

MetopePropertyIncomePrescient(A)9,70440,677

InvestecW&IBCIProperty(A)9,211035,7728

M&GProperty(A)9,46933,8836

*FNBMultiManagerProperty(A2)8,9711

FTSE/JSESAListedPropertyIndex(J253)8,3536,94-2,94-4,35

WORLDWIDE EQUITY

GENERAL FUNDS

H4WorldwideEquity(B1)12,77228,57218,44113,011

NestEggBCIWorldwideEquity(A)10,71413,381016,172

CoreSharesOUTaggressiveIndex(O)12,62332,72115,793

StewartBCIMacroEquityFoF(A)10,31720,21714,7548,412

BCIValue(B)10,34616,34814,0858,023

CorionPrimeWorldwideEquity(A1)9,20922,43611,956

PrimeWorldwideEquity(A)4,041122,4553,437

CitadelWorldwideEquityH4(B1)14,79127,273

AshburtonGlobalLeadersZAREquityFdr(A)10,38523,284

IDCapitalBCIWorldwideEquity(A)9,82816,259

ImalivestSCIWWEquity(A2)9,0510

UNCLASSIFIED FUNDS

OldMutualGold(R)32,8314,52230,30117,011

VisioBCIProperty(C)12,17239,721

WORLDWIDE MULTI-ASSET

FLEXIBLE FUNDS

NavigaBCIWorldwideFlexible(A)10,681928,42742,311

BlueQuadrantWorldwideFlexiblePrescient(A)16,351129,03133,92215,7623

RCIBCIWorldwideFlexibleGrowthClassL2,98994,709325,16314,9444

CordatusWorldwideFlexiblePrescient(A2)13,13530,10421,84415,6235

PrescientChinaBalancedFeeder(A2)9,163511,158721,73513,2773

SelectBCIWorldwideFlexible(A)12,31624,902021,71617,5415

RootstockSCIWorldwideFlexible(A)10,831725,381521,24714,2865

SimplisitiBCIFlexibleFoF(A)8,844218,106420,09811,07294

RCIBCIWorldwideFlexible(A)3,849616,327319,35912,70114

OldMutualM-MMaximumReturnFoF(A)8,534625,221819,311012,40154

NestEggBCIWorldwideFlexible(A)11,96721,673319,2611

ProvidenceBCIWorldwideDiversied(B)10,592023,922319,001212,71104

MontroseBCIFlexibleFoF(A)9,702725,921418,931312,9484

NedgroupInv.BravataWorldwideFlexible(A)13,34337,58218,711411,93194

NFBCiWorldwideFlexible(A)9,063833,46318,6215

IDCapitalBCIWorldwideFlexible(A)10,721821,083918,5016

InstitBCIWWModerateAggressiveFlexible(A)10,522119,025618,4717

PrimeWorldwideFlexible(B)6,118420,514418,361812,51134

QuattroCiWorldwideFlexibleFoF(A)9,722618,796017,811912,8994

InstitBCIWorldwideEquity(A)7,676122,223117,732011,58223

LunarBCIWorldwideFlexible(A)3,389819,375317,522111,35245

LongBeachWorldwideFlexiblePrescient(A1)1,941008,049117,302214,8153

ChromeCiMaximumReturn(A)11,141524,152217,2823

BCIWorldwideFlexibleFoFClass3B17,815819,664917,122410,52333

CohesiveCapitalWWFlexiblePrescient(A2)6,667826,311316,932512,05185

SygniaSkeletonWorldwideFlexible(A)4,049522,822716,662612,22173

CoronationGlblOptimumGrowth(ZAR)Fdr(A)5,81882,869516,662612,28163

SignatureBCIWorldwideFlexibleFoF(A)7,845719,655016,622711,49234

AFInvestmentsFlexibleFoF(A)8,494819,615116,602811,20274

BCIFlexible(A)8,325129,50516,582912,66125

ConsiliumBCIWorldwideFlexible(A)7,486316,447216,443012,47145

CeltisBCIFlexibleFoF(A)7,326520,924016,403110,80314

PPSWorldwideFlexibleFoF(A2)6,567917,536816,353211,6221

BrenthurstBCIWorldwideFlexibleFoF(A)8,954017,956616,0033

SouthernCharterBCIWWFlexibleFoF(A)11,381321,093815,713410,16353

CSBCIWorldwideFlexibleFoF(B)7,915416,087415,673511,18283

RedOakBCIWorldwideFlexibleFoF(A)7,016915,677815,3836

OldMutualMaximumReturn(A)6,548026,921115,373710,88303

AureusNobilisBCIWorldwideFlexibleFoF(A)8,614518,815915,203810,68323

BovestBCIWorldwideFlexibleFoF(A)7,875620,844115,163910,29343

PlatinumBCIWorldwideFlexible(A)9,123719,555214,944011,71204

JBLSCIWorldwideFlexibleFoF(B1)7,716015,757714,8741

CitadelWorldwideFlexibleH4(B3)13,61223,772414,8042

H4Growth(B1)11,581124,522114,714311,35243

CoronationMarketPlus(A)7,486322,083214,63449,14412

CorionPrimeWorldwideFlexible(A)7,885520,074714,634410,05363

DinamikaBCIWorldwideFlexible(A)9,143624,991914,55458,55493

FlagshipIPWorldwideFlexibleFoF(A)7,356417,026914,504611,23263

MethodicalBCIWorldwideGrowthFoF(A)8,524721,513414,46479,63383

AnchorBCIWorldwideFlexible(A)4,299410,078914,38488,94432

CinnabarSCIWorldwideFlexibleFoF(A)7,626216,477114,26498,73463

PWSBCIWorldwideFlexibleFoF(A)6,907120,074714,0450

Point3BCIModerateWWFlexibleFoF(A)11,73820,194513,74519,11423

FinancialFitnessIPFlexibleFoF(A)8,724316,777013,715211,30254

Ginsburg&SelbySCIWorldwideFlexible(A1)5,718915,837513,6353

FlagshipIPWorldwideFlexible(A)3,57974,779213,62548,74452

FNBGrowthPlusFoF(B1)11,621027,38913,61558,45502

ImalivestSCIWWFlexible(A)11,67922,692912,96568,76442

PrivateClientBCIWorldwideFlexible(B)7,995320,714312,96569,5339

FoordFlexibleFoF(A)4,479310,338812,94578,58483

CordatusWorldwideFlexiblePrescientFoF(A2)9,273422,772812,93587,96542

MarriottWorldwideFoF(A)10,092218,216312,86599,35403

AutusPrimeWorldwideFlexible(A)10,032312,068512,84608,74453

RebalanceBCIWorldwideFlexibleFoF(A)6,787619,764812,73618,55492

4DBCIAggressiveFlexibleFoF(A)9,283317,886712,67627,79562

TrésorSCIFlexible(B1)11,281421,383512,38638,39512

AnalyticsCiWorldwideFlexibleFoF(A)9,862418,975712,216410,00373

SelectManagerBCIWorldwideFlexibleFoF(A)9,812519,345412,06658,60472

BCIBestBlendWorldwideFlexible(A)7,716015,427911,80668,27522

OctagonSCIWorldwideFoF(B1)7,755915,128111,80667,75572

NinetyOneWorldwideFlexible(E)8,854119,655011,78677,0560

FairtreeWWMulti-StrategyFlex.Prescient(A1)7,306613,408411,3268

PBIBCIWorldwideFlexibleFoF(A)6,807521,123611,22697,56591

InstitBCIWorldwideFlexible(A)9,023927,231010,8970

ProsperityIPWorldwideFlexibleFoF(A)6,927015,298010,80718,17533

StonewoodBCIWorldwideFlexible(B)9,413123,30269,92726,02621

IPWorldwideFlexibleFoF(B2)9,323218,68629,81736,21611

MedianBCIWorldwideFlexibleFoF(A)6,817417,53689,78745,47631

OptimumBCIWorldwideFlexibleFoF(A)6,827311,64869,48757,93552

NovareWorldwideFlexibleFoF(A1)6,138220,82429,47767,68582

RockCapitalIPWorldwideFlexible(A)5,00918,80904,58772,57641

CounterpointSCIWorldwideFlexible(A)6,128318,96582,93782,11651

ThymeWealthIPGlobal(A)6,0685-0,73962,8279

CratosBCIWorldwideFlexible(A)11,461229,156

FussellCiWorldwideFlexible(A)9,632827,598

PMKWorldwideGrowthPrescientFoF(A3)8,005226,3312

SynergyCiGlobalFlexibleGrowthFeeder(B)13,25425,2616

PortfolioMetrixBCIUncons.AssertiveFoF(A)8,494825,2417

PortfolioMetrixBCIUncons.BalancedFoF(A)7,236723,3525

OdysseyBCIWorldwideFlexible(A)8,335022,5430

RoxburghCiWorldwideFlexibleFoF(A)8,404921,1137

FisherDugmoreCiWorldwideFlexible(A)10,911620,1746

BIPBCIModerateWorldwideFlexible(C)9,443019,1455

PortfolioMetrixBCIUncons.ModerateFoF(A)5,998618,7361

IPWorldwideActiveBeta(A)9,612917,9765

NavigaBCIWorldwideFlexibleGrowth(A)5,918717,9566

BCIWorldwideFlexibleStyle(C)7,066815,8076

RexsolomWWFlexiblePrescient(A1)8,634413,7982

HarvardHouseBCIWorldwideFlexible(A)8,335013,7683

IndependentSecuritiesBCIWWFlexible(D)5,71894,2094

PyxisBCIWorldwideFlexible(C)6,8572

InstitBCIWorldwideFlexibleFoF(A)6,7377

SanlamPrivateWealthWorldwideFlexible(A1)6,3281

AnchorBCIWorldwideOpportunities(C)5,0190

SaltLightSNNWorldwideFlexible(A2)4,8592

GLOBAL EQUITY

GENERAL FUNDS

SygniaFAANGPlusEquity(A)7,007519,896038,641

EmperorIPGlobalEquity(A)-4,1199-6,608937,11225,3514

AnchorBCIGlobalEquityFeeder(A)2,54933,378535,86322,5425

SygniaItrix4thIndustrialRev.GlobalEqtyETF3,189011,657535,434

Sygnia4thIndustrialRev.GlobalEqty(A)2,63929,897732,20522,4234

SatrixS&P500FeederETF17,66139,34229,946

CoreSharesS&P500ETF16,87240,07129,84721,134

StonehageFlemingSCIGlblBIEqtyFdr(A1)13,381630,912029,848

M1CapitalGlobalEquityPrescient(A1)13,202113,201627,70917,8010

PSGWealthGlobalCreatorFeeder(A)9,834927,443426,781018,866

BlueAlphaBCIGlobalEquity(A)13,212030,862326,601120,6355

OldMutualMSCIWorldESGIndexFeeder(A)14,011034,42525,8812

SatrixMSCIWorldEquityFeederETF14,25832,331025,8513

1nvestMSCIWorldIndexFeederETF13,212032,121325,7114

FairtreeGlobalEquityPrescient(A1)13,381631,771525,6515

1nvestMSCIWorldIndexFeeder(A)13,391532,291125,6116

SygniaItrixMSCIWorldIndexETF14,15931,871425,601718,438

AutusPrimeGlobalEquityFeeder(A)12,243020,495825,601718,0794

AshburtonGlobal1200EquityFoFETF14,33730,882124,9818

AbsaGlobalCoreEquityFeeder(A)13,221935,21424,801916,64165

SatrixMSCIWorldEquityIndexFeeder(A1)13,231831,371724,742017,3712

NinetyOneGlobalStrategicEquityFeeder(R)11,993231,181824,472116,5717

NinetyOneGlobalFranchiseFeeder(A)13,401428,922924,082218,617

StanlibM-MGlobalEquityFeeder(B1)8,576327,383524,082217,11134

ABAXGlobalEquityPrescientFeeder(A1)10,834221,625323,752317,59114

OldMutualGlobalEquity(R)12,362932,35923,592416,9414

DiscoveryGlobalEquityFeeder(A)12,892328,033223,582515,93213

CoreSharesMSCIACWIFoF(A)11,483527,743323,3426

AFInvestmentsGlobalEquityFeeder(A)9,825025,773923,112715,69233

Mi-PlanIPGlobalAIOpportunity(B2)12,392823,344522,7928

GryphonGlobalEquity(B)12,412730,872222,692915,66243

SygniaSkeletonInternationalEquityFoF(A)9,015823,854222,323016,39184

M&GGlobalEquityFeeder(A)8,106832,54822,223115,20263

PrescientGlobalEquityFeeder(A2)13,561230,592422,193213,48313

NedgroupInv.GlobalEquityFeeder(A)8,906023,764322,063316,80153

CoronationGlobalEquitySelect[ZAR]Fdr(A)6,817614,297321,673413,31322

StyloGlobalEquityPrescientFoF(A1)11,343724,594121,613516,21194

Mi-PlanIPSarasinEquisarFeeder(B5)9,635222,245121,453616,13203

CitadelGlobalEquityH4FoF(B1)12,532626,713721,243715,62253

CoronationGlobalOpp.Equity[ZAR]Feeder(A)5,918018,766521,153814,91273

PortfolioMetrixBCIGlobalEquityFoF(B2)9,884826,573820,603915,89223

DenkerSCIGlobalEquityFeeder(A)10,774330,342520,524013,20333

FoordGlobalEquityFeeder(A)8,126710,257620,454113,9529

27fourGlobalEquityFeeder(A1)10,104723,304620,204214,10283

SelectManagerBCIGlobalEquityFoF(A)7,717221,035520,0343

CoreSharesS&PGlobalDiv.AristocratsETF14,81428,563119,3444

AllanGray-OrbisGlobalEquityFeeder(A)6,077918,006619,074512,39342

GlacierGlobalStockFeeder(B)8,646128,583018,9846

BCIBestBlendGlobalEquity(A)7,837119,236218,604711,98363

SasnBCIGlobalEquityFeeder(A)10,764422,105218,4548

OldMutualFTSERaAllWorldIndexFdr(A)9,655130,142618,304912,3735

MomentumInternationalEquityFeeder(A)9,175622,525018,225013,61302

OasisCrescentInternationalFeeder(D)11,114023,854217,835111,22392

MarriottFirstWorldEquityFeeder(A)11,273920,625716,805211,80372

SanlamGlobalEquity(R)8,386516,397116,475310,3241

ElementIslamicGlobalEquitySCI(A)11,403622,854916,29549,79422

SanlamPWGlobalHighQualityFdr(A1)8,356617,986715,7455

SatrixMSCIEmergingMarketsFeederETF4,27857,547914,6456

AbsaGlobalValueFeeder(R)7,257429,452814,635710,4440

ElementGlobalEquitySCI(B)9,215515,527214,635711,40382

SanlamGlobalEmergingMarketsFeeder(A1)-0,45976,608114,28588,35461

PSGGlobalEquityFeeder(A)7,487332,67713,59599,3943

CounterpointSCIGlobalEquityFeeder(B)13,391535,72313,26609,21441

OldMutualMSCIEMsESGIndexFeeder(A)1,96953,478413,1061

DiscoveryGlobalValueEquityFeeder(A)4,288423,204812,90629,13451

SatrixMSCIWorldESGEnhancedFeederETF14,46532,946

PrescientCoreGlobalEquity(A2)13,431332,1312

BCIFundsmithEquityFeeder(A)12,922231,0719

InvestecW&IBCIGlobalLeadersEquity(A)10,114630,3425

SygniaHealthInnovationGlobalEquity(B)11,753429,9627

PPSGlobalEquityFeeder(A2)12,542527,0336

DynastyCiGlobalAccumulatorFeeder(A)13,251725,6840

BCIGuernseyGlobalGrowthFeeder(A)8,616223,3844

BenguelaGlobalEquity27fourFeeder(A1)8,066923,2247

BCICredoGlobalEquityFeeder(A)9,505421,4954

36OneBCIGlobalEquityFeeder(A)6,727721,0056

MaziAssetMngPrimeGlobalEquity(A)11,903320,4159

NedgroupInv.GlobalDiversiedEqtyFdr(A)10,254519,6161

Global&LocalSNNOshoreEquity(A)12,153119,0963

KagisoIslamicGlobalEquityFeeder(A)8,935919,0764

PrescientSigmaSelectGlblLeadersFdr(A2)6,087817,4768

LauriumGlobalEquityPrescient(A1)8,556417,1069

KagisoGlobalEquityFeeder(A)3,938616,4570

InstitBCIGlobalEquity(A)9,035713,9274

BCILindsellTrainGlobalEquityFeeder(A)3,80878,0678

AnchorBCIGlobalTechnology(A)2,05946,6980

FlagshipIPGlobalIconFeeder(A)3,26895,5782

SatrixMSCIEMESGETF3,35885,0783

AnBroBCIUnicornGlobalGrowth(A)-0,25963,1786

FairtreeGlblEmergingMarketsPrescient(A1)5,44813,1387

NedgroupInv.GlobalEMEquityFeeder(A)2,87911,3088

SatrixMSCIChinaFeederETF-0,5098-15,4490

SygniaItrixS&PGlobal1200ESGETF15,713

SygniaItrixSolactiveHealthcare150ETF14,456

10XMSCIWorldIndexFeeder(A)13,6411

CoreSharesTotalWorldStockFeederETF12,5724

BCIRootstockGlobalEquityFeeder(A)11,2938

SelectBCIEnhancedCoreGlblEqtyFoF(A)11,0741

BrenthurstBCIGlobalEquityFeeder(A)9,5853

PeregrineCapitalGlobalEqtyPrescientFdr(A)7,8570

SygniaItrixMSCIEmergingMarkets50ETF4,9982

BCISandsCapitalGlobalGrowthFeeder(A)4,8883

BCISandsCapitalEmergingMarketsFdr(A)-5,88100

InvesthouseCiGlobalFeeder(A)11,231121,191820,104 SkyblueBCISolarFlexibleFoF(A)9,972021,301619,99513,237

PSGWealthGlobalFlexibleFeeder(D)7,534117,833319,25614,435 Point3BCIGlobalFlexibleFoF(A)12,93429,14119,147 MethodicalBCIGlobalFlexibleFoF(A)9,242719,932119,108 NorthstarSCIGlobalFlexibleFeeder(A)7,064318,483018,619 NorthstarSCIGlobalFlexible(A)7,194218,532918,601015,463

MarriottInternationalGrowthFeeder(A)13,15324,24718,491112,659 NedgroupInv.GlobalFlexibleFeeder(R)6,614622,841217,901211,5510 3 SygniaInternationalFlexibleFoF(A)6,874516,533717,861313,986 4 AssetbaseGlobalFlexiblePrescientFoF(A1)9,852219,572317,691413,198 4 AmityBCIGlobalDiversiedFoF(A)9,642425,13417,341511,1112 3 CounterpointSCIGlobalManagedGrowth(A)14,27127,30315,681610,9114 3 CoronationGlobalEMsFlexible[ZAR](A)-0,1753-7,504515,631711,0613

BCIUbamMultiFundsFlex.AllocationFdr(A)6,244718,013115,5518

LynxPrimeGlobalDiversiedFoF(A1)10,051823,10915,39199,9518

WarwickBCIInternationalFoF(C)10,101720,631915,212011,4511

PSGWealthGlobalModerateFeeder(A)7,853616,583614,782110,0916

PSGGlobalFlexibleFeeder(A)6,954427,87214,12229,4719 FGSCIInternationalFlexibleFoF(A)7,963517,943213,852310,0817

KrugerCiInternationalFlexibleFeeder(A)8,493215,893813,832410,6815

APSCiGlobalFlexibleFeeder(B)9,981917,623413,82259,4221

IPForeignFlexibleFeeder(A1)10,921320,272013,65269,1622

SelectManagerBCIGlobalModerateFoF(A)8,223415,503913,31279,4520

FoordInternationalFeeder(A)7,713811,274112,37288,9523

RezcoGlobalFlexibleFeeder(A)1,0552-2,61448,3829

EngelbergBCIGlobalFeeder(A)5,034811,51407,42303,5124 1

ChromeCiGlobalMaximumReturnFeeder(A)11,30924,355

CelerityCiInternationalGrowth(B)9,842324,266

FisherDugmoreCiGlobalGrowth(A)10,771523,438

CadizBCIGlobalFlexibleFoF(A)11,051222,9711

SanlamAIGlobalManagedRiskFeeder(A)9,472521,7814

NewRoadBCIGlobalFlexibleFoF(A)9,912121,6815

VunaniBCIGlobalMacro(A)10,651621,2017

MethodicalBCIGlobalFlexible(B1)13,42219,7222

ClucasGrayGlobalFlexiblePrescient(A1)7,624019,5324

SalvoGlobalManagedPrimeFeeder(B)9,052918,8326

PMKGlobalFlexiblePrescientFoF(A3)7,643918,6327

QuantumBCIWorldwideFlexibleFoF(A)9,402618,5428

WealthAssociatesBCIFlexibleGrowthFoF(A)8,353317,1335

RozendalGlobalPrescientFeeder(A)1,93509,3542

FlagshipIPGlobalFlexibleEquity(B)1,82516,5843

FussellCiWorldwideGrowthFeeder(A)11,618

AfFinityCiInternationalFlex.GrowthFdr(A)11,2410

NoblePPBCIWorldwideFlexibleFoF(A)10,8014

TRGGlobalFlexiblePrescientFoF(A1)9,1628

TriathlonIPGlobalFeeder(D)8,7130

PrimeGlobalBalancedFlexibleFeeder(B)8,6831

PersonalTrustPTIGlobalSMOpp.Fdr(A)7,8337

CinnabarSCIGlobalBalancedFeeder(A)4,1449

HIGH-EQUITY

GLOBAL INTEREST-BEARING

SHORT-TERM FUNDS

MarriottGlobalIncome(A)3,9025,8214,0613,653

MomentumInternationalIncome(A)5,2014,8823,7223,702

OldMutualGlobalCurrencyFeeder(A)3,8833,3033,3534,511

VARIABLE-TERM FUNDS

M&GGlobalBondFeeder(A)4,0372,4147,4015,941

StyloGlobalBondPrescientFoF(A1)5,8014,1916,6525,382

1nvestGlobalGovernmentBondIndexFdrETF4,3760,6355,853

AshburtonWorldGovernmentBondETF4,6340,2875,704

1nvestGlobalGovtBondIndexFdr(A)4,4050,5265,515

PortfolioMetrixBCIGlobalBondFoF(A)5,1722,682

SatrixGlobalAggregateBondFeederETF4,7632,643

GLOBAL REAL ESTATE

GENERAL FUNDS

ReitwayBCIGlobalPropertyFeeder(A)19,48241,01925,25115,921

SeskileBCIGlobalProperty(A1)16,991240,861020,79213,234

1nvestS&P500InfoTechIndexFeeder(A)22,00144,60245,552 SatrixNasdaq100ETF17,88337,78642,293

SygniaItrixMSCIUSIndexETF16,46536,70729,84421,331

1nvestS&P500IndexFeederETF16,27639,82329,815

SygniaItrixS&P500ETF17,60439,33529,806

1nvestS&P500IndexFeeder(A)16,22739,65429,297

SanlamIndiaOpportunitiesFeeder(A)3,771535,71820,73817,642 SygniaItrixEurostoxx50ETF10,541124,131018,76912,863

SanlamPanEurope(A)10,281221,341316,611010,985 SygniaItrixMSCIJapanETF1,66169,851615,111111,154 SanlamAsiaPacicFoF(A)6,051416,181414,411210,466

SygniaItrixFTSE100ETF11,28926,06912,10138,948

MaziAssetManagementPrimeAfricaEqty(A)11,021021,81129,6414

AbsaAfricaEquityFeeder(A)14,49822,35119,071510,117

RudiariusBCIAfricaEquity(C)7,491315,91155,79165,779

CloudAtlasAMIBig50ex-SAETF-2,4118-2,9918-16,8717

AshburtonIndiaEquityOpportunitiesFdr(A)-1,57170,6417

REGIONAL MULTI-ASSET

FLEXIBLE FUNDS

AnchorBCIAfricaFlexibleIncome(A)0,3222,8928,9317,531

LauriumAfricaUSDBondPrescientFdr(A1)2,8917,941

REGIONAL INTEREST-BEARING

SHORT-TERM FUNDS

StanlibUSDollarCurrencyFoF(B1)4,9717,4714,1113,681

VARIABLE-TERM FUNDS

CloudAtlasS&PAfricaSovereignBondETFĀ-2,401

TAXES AND DEDUCTIONS FOR THE 2021/22 TAX YEAR

INCOME TAX RATES FOR INDIVIDUALS AND SPECIAL TRUSTS* TAXABLEINCOMERATEOFTAX

R1-R20590018%oftaxableincome

R205901-R321600R37062+26%oftaxableincomeaboveR205900

R321601-R445100R67144+31%oftaxableincomeaboveR321600

R445101-R584200R105429+36%oftaxableincomeaboveR445100

R584201-R744800R155505+39%oftaxableincomeaboveR584200

R744801-R1577300R218139+41%oftaxableincomeaboveR744800

R1577301andaboveR559464+45%oftaxableincomeaboveR1577300

* Trusts established for the benefit of disabled people and testamentary trusts established for the benefit of minor children. All other trusts pay income tax at a flat rate of 45%.

REBATESTAXTHRESHOLDS

Primary(appliestoalltaxpayers)R14958

Secondary(persons65andolder)R8199

Tertiary(persons75andolder)R2736

EXEMPTIONSONLOCALINTEREST

Belowage65R83100

Age65tobelowage75R128650

Age75andoverR143850

Individualsunder65R23800ayearIndividuals65andoverR34500ayear

DEDUCTIONS FOR RETIREMENT FUND CONTRIBUTIONS

Amountscontributedtopension,providentandretirementannuity(RA)fundsaredeductiblebyfundmembers.Amountscontributed byemployersandtaxedasfringebenefitsaretreatedascontributionsbytheindividualemployee.Thedeductionislimitedto27.5%of thegreaterofremunerationforPAYEpurposesortaxableincome(bothexcludingretirementfundlumpsumsandseverancebenefits). ThedeductionisfurtherlimitedtothelowerofR350000or27.5%oftaxableincomebeforetheinclusionofataxablecapitalgain.Any contributionsthatexceedthelimitsarecarriedforwardtothenexttaxyearanddeemedtobecontributedinthatyear.Theamounts carriedforwardarereducedbycontributionssetoffwhendeterminingtaxableretirementfundlumpsumsorRAs.

DEDUCTIONS FOR MEDICAL AND DISABILITY EXPENSES

All taxpayers: Ifyoucontributetoamedicalscheme,youareentitledtoataxrebate(referredtoasamedicalschemecontributionstax credit)ofuptoR319eachfortheindividualwhopaidthecontributionsandthefirstdependantonthemedicalschemeanduptoR215 amonthforeachadditionaldependant.

Additional tax credit for taxpayers under 65 years: Youareentitledtoataxcreditof25%ofanamountequaltoyourqualifying medicalexpensesplusanamountbywhichyourmedicalschemecontributionsexceedfourtimesthemedicalschemecontributiontax creditforthetaxyear,limitedtotheamountthatexceeds7.5%oftaxableincome(excludingseveranceorretirementfundlumpsums).

Additional tax credit for taxpayers with a disability and/or with a disabled family member or taxpayers over 65 years: Youareentitledtoataxcreditof33.3%ofyourqualifyingmedicalexpensesplus33.3%oftheamountbywhichyourmedicalscheme contributionsexceedthreetimesthemedicalschemecontributiontaxcreditforthetaxyear.

TAX ON LOCAL AND FOREIGN DIVIDENDS

DividendsreceivedbyindividualsfromSouthAfricancompaniesaregenerallyexemptfromincometax,butdividendstaxatarateof20% iswithheldbytheentitiespayingthedividendstoindividuals.Dividendsreceivedbyresidentindividualsfromrealestateinvestment trusts(Reits)aresubjecttoincometax.Non-residentsinreceiptofthosedividendsaresubjectonlytodividendstax.Mostforeigndividends receivedbyindividualsfromforeigncompanies(ashareholdingoflessthan10%intheforeigncompany)aretaxableatamaximum effectiverateof20%.

CALCULATE REAL AFTER-TAX RETURNS ON INTEREST-BEARING INVESTMENTS

CPI INFLATION RATE: 5.9% IN DECEMBER 2021

MARGINALTAXBRACKETMARGINALTAXRATEBREAKTHROUGHPOINT

R0toR20590018%7.2

R205901toR32160026%8.0

R321601toR44510031%8.6

R445101toR58420036%9.2

R584201toR74480039%9.7

R744801toR157730041%10.0

R1577301andabove45%10.7

Therealrateofreturnonmoneyyouinvestisaffectednotonlybyinflation,butalsobytherateatwhichyouaretaxed.Thelowerthe inflationrate,thebetteryourrealrateofinterestislikelytobe.Tocalculateyourrealreturn,firstworkoutwhatyourafter-taxreturn willbeandthensubtracttheinflationrate.Thetableprovidesthemarginaltaxbracketsandtheinterestratesatwhichyouwillstart toreceiveareal(after-tax)rateofreturnonyourmoneyifitistaxedatthatrate.Thecalculationsignorethefactthatinthe2020/21 taxyear,thefirstR23800(R34500ifyouareover65yearsofage)youearnininterestistax-free.Anyinterestyoureceiveabove theexemptamountistaxedatyourmarginaltaxrate.

PROVISIONAL TAX

Aprovisionaltaxpayerisanypersonwhoearnsincome bywayofremunerationfromanunregisteredemployer incomethatisnotremunerationoranallowanceoran advancepayablebyhisorheremployer.Youareexempt fromthepaymentofprovisionaltaxifyoudonotcarryon anybusinessandyourtaxableincome:

•Willnotexceedthetaxthresholdforthetaxyear;or

•Frominterest,dividends,foreigndividendsandtherental offixedpropertyandremunerationfromanunregistered employerwillbeR30000orlessfor thetaxyear.

Deceasedestatesarenotprovisionaltaxpayers.

CAPITAL GAINS TAX

INCLUSION RATES

• Individuals special trusts and individual policyholder funds: 40%• Other taxpayers: 80%

MAXIMUM EFFECTIVE RATES

• Individuals and special trusts: 18%

• Other trusts: 36%• Companies: 22.4%

SOME OF THE EXCLUSIONS

•R2milliongain/lossondisposalofprimaryresidence

•AnnualexclusionofR40000toindividualsandspecial trusts

•R300000intheyearofdeath(insteadoftheannual exclusion)

•Retirementbenefits

•Mostpersonaluseassets

•Paymentsinrespectoforiginallong-terminsurance policies

•R1.8millionforindividuals(atleast55yearsofage)when asmallbusinesswithamarketvaluethatdoesnotexceed R10millionisdisposedof.

ESTATE DUTY

Rate: 20%onthefirstR30m;25%onestatesabove R30m.AmountsinanestateuptoR3.5marenottaxed. Forthesecond-dyingspouse,amountsuptoR7mlessthe exemptionusedbythefirst-dyingspousearenottaxed.

TAX-FREE SAVINGS ACCOUNTS

Noincometaxoninterest,dividendswithholdingtaxor capitalgainstax.ContributionsarelimitedtoR33000a year,uptoR500000overyourlifetime.Contributionsthat exceedthelimitswillbetaxedat40%.

DONATIONS TAX

•Donationstaxpayablebythedonorisleviedatarateof 20%onpropertydonatedwithavalueuptoR30million. Therateonpropertywithavalueof morethanR30millionis25%.

•ThefirstR100000ofpropertydonatedineachyear toanaturalpersonisexemptfromdonationstax.

•Donationsbetweenspousesareexemptfrom donationstax.

•Taxdeductionsondonationstoapprovedpublicbenefit organisationsarelimitedto10%oftaxableincomebefore deductingmedicalexpenses(excludingretirementfund lumpsumsandseverancebenefits).

RETIREMENT FUND LUMP-SUM WITHDRAWAL BENEFITS

LUMPSUMRATEOFTAX

R0toR250000%oftaxableincome R25001toR66000018%oftaxableincomeaboveR25000 R660001toR990000R114300plus27%oftaxableincomeaboveR660000 R990001andaboveR203400plus36%oftaxableincomeaboveR990000

Retirementfundlump-sumwithdrawalbenefitsconsistoflumpsumsfromapension,pension preservationprovident,providentpreservationorretirementannuityfundonwithdrawal(including assignmentintermsofadivorceorder).

Thetaxonaretirementfundlump-sumwithdrawalbenefit(X)isequalto:

•ThetaxdeterminedbyapplyingthetaxtabletotheaggregateoflumpsumXplusallother retirementfundlump-sumwithdrawalbenefitsaccruingfromMarch2009,allretirementfund lump-sumbenefitsaccruingfromOctober2007andallseverancebenefitsaccruingfromMarch 2011;less

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateofallretirementfundlump-sum withdrawalbenefitsaccruingbeforelump-sumXfromMarch2009,allretirementfundlump-sum benefitsaccruingfromOctober2007andallseverancebenefitsaccruingfromMarch2011.

LUMPSUMRATEOFTAX

R0toR5000000%oftaxableincome

R500001toR70000018%oftaxableincomeaboveR500000

R700001toR1050000R36000plus27%oftaxableincomeaboveR700000 R1050001plusR130500plus36%oftaxableincomeaboveR1050000

Retirement fund lump-sum benefits consistoflumpsumsfromapension,pension preservation,provident,providentpreservationorretirementannuityfundondeathretirement orterminationofemploymentduetoattainingtheageof55sicknessaccidentinjuryincapacity redundancyorterminationoftheemployer’strade.

Severance benefits consistoflumpsumsfromorbyarrangementwithanemployerdue torelinquishment,termination,loss,repudiation,cancellationorvariationofaperson’soffice oremployment.

Taxonaretirementfundlump-sumbenefitoraseverancebenefit(Y)isequalto:

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateoflump-sumorseverance benefitYplusallotherretirementfundlump-sumbenefitsaccruingfromOctober2007 andallretirementfundlump-sumwithdrawalbenefitsaccruingfromMarch2009and allotherseverancebenefitsaccruingfromMarch2011;less

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateofallretirementfundlumpsumbenefitsaccruingbeforelump-sumYfromOctober2007andallretirementfundlump-sum withdrawalbenefitsaccruingfromMarch2009andallseverancebenefitsaccruingbeforeseverance benefitYfromMarch2011.

TRANSFER DUTY RATES

VALUEOFPROPERTYRATE

R1-R10000000%

R1000001-R13750003%ofthevalueaboveR1000000

R1375001-R1925000R11250+6%ofthevalueaboveR1375000

R1925001-R2475000R44250+8%ofthevalueaboveR1925000

R2475001-R11000000R88250+11%ofthevalueaboveR2475000

R11000001andaboveR1026000+13%ofthevalueaboveR11000000

TransferdutyispayableontransactionsthatarenotsubjecttoVAT.

SARS INTEREST RATES

RATESOFINTERESTFROM1FEBRUARY2020:

Fringe benefits - interest-free or low-interest loan (official rate): 7.25%ayear

RATESOFINTERESTFROM1NOVEMBER2019:

Late or underpayment of tax: 10%ayear

Refund of overpayment of provisional tax: 6%ayear

Refund of tax on successful appeal or where the appeal was conceded by the South African Revenue Service: 10%ayear

Refund of VAT or late payment of VAT: 10%

WHO DOES NOT HAVE TO SUBMIT A TAX RETURN?

Youdonothavetosubmitareturnif:yourtotalpre-taxearningsfromoneemployerwerelessthan R500000forthetaxyear,youhavenoothersourcesofincome(forexamplerentalorinterest)and therearenodeductionsthatyouwanttoclaim.

TheinformationonthesepagesisfromtheSouthAfricanRevenueService’s(SARS)2020BudgetTaxGuide.

TRAVELLING ALLOWANCES

Ratesperkilometre,whichmaybeusedindeterminingtheallowabledeductionforbusinesstravel againstanallowanceoradvancewhereactualcostsarenotclaimed,aredeterminedbyusingthe followingtable:

VALUEOFTHEVEHICLEFIXEDCOSTFUELCOSTMAINTENANCE (INCLUDINGVAT)PERYEARPERKMCOSTPERKM UptoR95000R31332105.8c37.4c R95001toR190000R55894118.1c46.8c R190001toR285000R80539128.3c51.6c R285001toR380000R102211138.0c56.4c R380001toR475000R123955147.7c66.2c R475001toR570000R146753169.4c77.8c R570001toR665000R169552175.1c96.6c ExceedingR665000R169552175.1c96.6c

Note:

•80%ofthetravellingallowancemustbeincludedintheemployee’sremunerationforthepurposes ofcalculatingPAYE.Thepercentageisreducedto20%iftheemployerissatisfied thatatleast80%oftheuseofthemotorvehicleforthetaxyearwillbeforbusinesspurposes. •Nofuelcostmaybeclaimediftheemployeehasnotbornethefullcostoffuelusedinthe vehicleandnomaintenancecostmaybeclaimediftheemployeehasnotbornethefull costofmaintainingthevehicle(forexamplethevehicleiscoveredbyamaintenanceplan). •Thefixedcostmustbereducedonapro-ratabasisifthevehicleisusedforbusinesspurposes forlessthanafullyear.

•Theactualdistancetravelledduringataxyearandthedistancetravelledforbusinesspurposes substantiatedbyalogbookareusedtodeterminethecoststhatmaybeclaimedagainsta travellingallowance.

Alternative simplified method: Whereanallowanceoradvanceisbasedontheactualdistancetravelledbytheemployeefor businesspurposesnotaxispayableonanallowancebyanemployertoanemployeeuptothe rateof398centsperkilometreregardlessofthevalueofthevehicle.However,thisalternativeisnot availableifothercompensationintheformofanallowanceorreimbursement(otherthan forparkingortollfees)isreceivedfromtheemployerinrespectofthevehicle.

FRINGE BENEFITS: EMPLOYER-OWNED VEHICLES

•Thetaxablevalueis3.5%ofthedeterminedvalue(thecashvalueincludingVAT)amonthofeach vehicle.Wherethevehicleis:

–Thesubjectofamaintenanceplanwhentheemployeracquiredthevehicle,thetaxablevalueis 3.25%ofthedeterminedvalue;or

–Acquiredbytheemployerunderanoperatinglease,thetaxablevalueisthecostincurredbythe employerundertheoperatingleaseplusthecostoffuel.

•80%ofthefringebenefitmustbeincludedintheemployee’sremunerationforthepurposeof calculatingPAYE.Thepercentageisreducedto20%iftheemployerissatisfiedthatatleast80%of theuseofthevehicleforthetaxyearisforbusinesspurposes.

•Onassessmentthefringebenefitforthetaxyearisreducedbytheratioofthedistancetravelledfor businesspurposes(substantiatedbyalogbook)dividedbytheactualdistancetravelledduring thetaxyear.

•Onassessmentfurtherreliefisavailableforthecostofthelicence,insurance,maintenanceand fuelforprivatetraveliftheemployeehasbornethefullcostthereofandifthedistancetravelledfor privatepurposesissubstantiatedbyalogbook.

SUBSISTENCE ALLOWANCES AND ADVANCES

Ifyouareobligedtospendatleastonenightawayfromyourusualplaceofresidenceonbusiness andyoureceiveanallowanceoradvanceforaccommodationinSouthAfrica,whichistopayfor:

• Meals and incidental costs: R452adayisdeemedtohavebeenspent;or

• Incidental costs only: R139foreachdayisdeemedtohavebeenspent. WheretheallowanceoradvanceisforaccommodationoutsideSouthAfrica,aspecificamountper countryisdeemedtohavebeenspent.Refertowww.sars.gov.za>Legalcounsel>Secondary legislation>Incometaxnotices>2018.

TURNOVER TAX FOR MICRO BUSINESSES

FinancialyearsthatendonanydatebetweenMarch12019andFebruary282020.

TAXABLETURNOVERRATEOFTAX

R750001andaboveR6650plus3%oftaxableturnoveraboveR750000

RETIREMENT FUND LUMP-SUM BENEFITS OR SEVERANCE BENEFITS

ANNUITY RATES

RatesvalidforFebruary2022.Informationsuppliedbytherelevantlifeassurancecompanies.

COMPULSORY ANNUITIES

LibertyR4583.89R4993.30R5494.39R6318.56

MetropolitanR5213.40R5558.88R5986.08R6517.59

MomentumR4978.49R5458.57R6096.20R6889.62

OldMutualR5216.11R5581.18R6055.64R6632.48

SanlamR4693.35R5272.15R5903.93R6602.68

FEMALE

LibertyR4158.25R4532.85R4947.14R5671.65

MetropolitanR4544.14R4874.82R5312.48R5957.02

MomentumR4639.72R5032.78R5561.11R6260.04

OldMutualR4742.52R5076.42R5509.84R6052.16

SanlamR4150.54R4686.35R5296.14R6000.89

VOLUNTARY ANNUITIES

LibertyR4583.89R4993.30R5494.39R6318.56

MetropolitanR5213.40R5558.88R5986.08R6517.59

MomentumR4893.47R5353.84R5955.01R6721.25

OldMutualR5216.11R5581.18R6055.64R6632.48

SanlamR4693.35R5272.15R5903.93R6602.68

FEMALE

LibertyR4158.25R4532.85R4947.14R5671.65

MetropolitanR4544.14R4874.82R5312.48R5957.02

MomentumR4577.76R4947.73R5440.85R6108.10

OldMutualR4742.52R5076.42R5509.84R6052.16

SanlamR4150.54R4686.35R5296.14R6000.89

COMPULSORY JOINT LIFE AND SURVIVORSHIP ANNUITIES

LibertyR3875.32R4203.92R4551.90R5192.25

MetropolitanR4200.74R4464.69R4813.64R5302.59

MomentumR4349.99R4656.98R5087.18R5695.91

OldMutualR4371.82R4652.91R5030.23R5528.66

SanlamR3749.68R4233.51R4782.32R5419.10

VOLUNTARY JOINT LIFE AND SURVIVORSHIP ANNUITIES

LibertyR3875.32R4203.92R4551.90R5192.25

MetropolitanR4200.74R4464.69R4813.64R5302.59

MomentumR4296.43R4583.76R4991.27R5560.48

OldMutualR4371.82R4652.91R5030.23R5528.66

SanlamR3749.68R4233.51R4782.32R5419.10

OFFSHORE ALLOWANCES

Offshore investment allowance: R10millioneachyear

Discretionary allowance for adults: R1millioneachyear

Travel allowance for children under 18: R200000eachyear

ThetaxoninternationalairtravelisR190perpassengerorR100forightstoSouthernAfricanCustomsUnioncountries.

ABOUT THE TABLES

Thesetablesshowinitialmonthlypensionsguaranteedfor10yearsand thenforlifeif,attheageslisted,youbuyalifeannuity(seedenition below)withR1million.Inthesetables.theamountescalatesatarate of6percentayear.

WHAT IS AN ANNUITY?

Anannuityisapaymentyoureceiveannually.Thelifeassurance industryhasadaptedthewordtomeananyamountyoureceive regularly(normallymonthly)fromaninvestment,usuallyinthe formofapension,whenyouretire.

COMPULSORY PURCHASE ANNUITY

Thismustbeboughtwithatleasttwo-thirdsofthebenetsyou receivefromyourpensionfundorretirementannuitywhenyou retire(providentfundsareexcludedfromthisrequirement).Ifyou areamemberofadened-benetpensionfund,theannuityis normallyprovidedtoyouwithoutanychoice.

VOLUNTARY ANNUITY

Thisisaninvestmentyouchoosetomakewithalumpsumfromany source.Withvoluntaryannuities,youcaninvestforaxedperiod. Forexample,for10years–orforlife.Notethatcompulsoryand voluntaryannuitiesaretaxeddierently,bothontheinvestment itselfandonyourincomefromit.Thisisbecauseyoubuyacompulsory annuitywithpre-taxsavingswhereasyoubuyavoluntaryannuity withafter-taxsavings.

TRADITIONAL (LIFE) ANNUITY

Youbuythistypeofannuityfromalifeassurancecompany.Youare guaranteedaxedincomeforlife,whichmayormaynotescalate annuallyatacertainrate,dependingonwhetheryouhavealevelor escalatingannuity.Intheinitialyears,youwillreceivelessfroman escalatingannuitythanfromalevelannuitybutthelevelannuity willbeerodedovertheyearsbyination.Becausethelifeassurance companytakesonyourlongevityrisk,yourinvestmentnormallydies withyou.Youcan,however,buyanannuity“guaranteedforXyears andthenforlife”,whichmeansyournominatedheirwillreceivethe incomeifyoudiebeforetheXyearsareup.AfterXyears,theannuity dieswithyou.Jointlifeannuitiesarebasedonapensionbeingpaid tothesurvivingspouseafterthedeathofhisorherpartner.

LIVING (INVESTMENT-LINKED) ANNUITY

Youbuythistypeofannuityfromanassetmanagerandcanchoose theunderlyingInv.Youmustdecideeachyearhowmuchofyour investmentyouwanttodrawdownasapensionwithaminimum of2.5percentandamaximumof17.5percent.Whenyoudie,what isleftofyourinvestmentispassedontoyourheirs.However,you taketheriskofoutlivingyourcapital.

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We care for our clients’ assets like our own because we never forget who they really belong to. If you’re an individual, family, charity, trust or corporate looking for a global investment manager with diversified investment solutions, choose the one that is personally committed to your future. The one who does things the right way. The Melville Douglas way.

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