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FALLOUT TALES
THE FUTURE
IS FEMALE T R A C K
INSURANCE Y O U R
F O R T U N E
FUND MANAGERS’
METRICS OF CHOICE W I T H
O U R
D A T A B A N K
Seeing the bigger picture tells the full story. We never stop pursuing your future success. Wealth Asset Management Insure Affiliates of the PSG Konsult Group are authorised financial services providers.
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survival – lessons COVER STORY Lockdown for small businesses Stories of courage, generosity, imagination … and sometimes deep sadness. 9
FEATURES 6
5 reasons why the future is female Financial advisers ‘must pay more attention to women’s needs’. 16 Personal insurance and the pandemic To what extent will adaptations translate into permanent change? 20 Is your domestic worker registered with the UIF? The Covid-19 crisis has exposed employers’ failures. 24 Numbers of choice for stock pickers We asked fund managers what company metrics they find useful. 28 The promise of bonds Why government bonds should form part of your portfolio. 30 How have smoothed bonus portfolios weathered the crisis? An actuary examines the recent performance of these investments. 34 Family portfolio Your investment strategy should consider wider family issues.
36 A multi-pronged approach to longevity and sequence risks How these two significant retirement risks can be mitigated. 39 Pandemic alert: are your affairs in order? Covid-19 has reminded us of our mortality. 41 Ending a trust: a window of opportunity? Why this may be a good time to end a trust and distribute its assets. 42 A Covid-19 health check for the Wills Act The lockdown has made it almost impossible to sign a will. 44 Protection of personal information laws kick in Companies have a year to comply with the newlyimplemented Act. 47 Why e-commerce is different for Muslims Drop shipping poses problems for businesses guided by Islamic law. 48 Tax reasons to stay at home Why it may be to your advantage not to go back to the office.
REGULARS 2
Upfront Brave new world.
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Your letters Readers’ queries answered by experts.
50 Millennial view The mentality of financial planning. 52 Fund focus The Old Mutual ESG Equity Fund. 54 On the contrary There are always opportunities for patient investors.
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.
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BRAVE NEW WORLD MARTIN HESSE
No-one will deny that the Covid-19 pandemic and its accompanying state interventions – including, here in South Africa, one of the most draconian lockdowns in the world – are having devastating economic consequences. But not everyone has been affected to the same degree – at least not yet. For example, corporate salaried workers who have been able to work from home may have hardly felt any adverse financial effects. In fact, they may be rather enjoying not having to contend with rush-hour traffic and may even be saving money on monthly expenses such as fuel. However, for small businesses in the tourism and restaurant industries the situation is dire. These establishments employ millions across the country – one small family-run restaurant may alone provide a living for 15 people and their families. It's these folk who are bearing the full brunt of the pandemic. Alan Duggan’s cover story brings you tales of courage and innovation, but also of heartbreak. One can take inspiration from them, but one can also not help feeling desperately sorry for these people whose lives have, literally overnight, been turned upside down. Elsewhere, in another information-packed issue, we cover UIF registration for domestic workers, how the insurance industry has adapted under the pandemic and whether changes will be permanent, estate planning and drawing up a will in these difficult times, and how smoothed bonus funds performed under crisis conditions. For some relief from the seemingly never-ending bad news around Covid-19, we look at how women are growing their wealth and increasingly need the services of financial planners, what company metrics fund managers pay attention to when choosing where to invest, and the benefits for consumers of the newly implemented Protection of Personal Information Act. Enjoy the read.
VOLUME 84 3rd QUARTER 2020 An Independent Media (Pty) Ltd publication
Editor Martin Hesse martin.hesse@inl.co.za ANA Publishing CEO Vasantha Angamuthu ANA Publishing CFO Valentine Dzvova Head of Production Mugamad Jacobs Head of Design Matthew Naudé Designers Rowan Abrahams Thabang Boshielo ADVERTISING Kyle Villett kyle.Villet@africannewsagency.com Daniel Kgaladi daniel.kgaladi@inl.co.za OFFICE MANAGER Caryn Wessels caryn.wessels@inl.co.za IMAGERY Shutterstock, Freepik.com INDEPENDENT MEDIA BOARD OF DIRECTORS Dr. Mohammed Iqbal Survé, Takudzwa T. Hove, Aziza B. Amod, Ismet Amod, Yuexing Wang, Jinghua Dong EDITORIAL ENQUIRIES Tel: 021 488 4187 Physical address: Fourth floor, Newspaper House, 122 St George’s Mall, Cape Town, 8001 Postal address: PO Box 56, Cape Town, 8000
Personal Finance magazine (ISSN 1562-3750) is published by the proprietors, Independent Media (Pty) Ltd, Star Building, 47 Sauer Street, Johannesburg, 2001 All products appearing in Personal Finance are available and all prices are correct at time of print, subject to change.
BENEFITS OF RAND COST AVERAGING
YOUR LETTERS
I’m lucky to still be earning despite lockdown but my retirement savings have depleted significantly. Is the money I had invested gone forever? I feel depressed to keep contributing, and a little scared. – Name withheld
Pierre Puren, a financial adviser from PSG Jeffrey’s Bay responds: It is understandable to feel this way during times of uncertainty but focusing on your investment goals will lessen the probability of making an emotionally driven decision. Keep in mind that your monthly contributions are effectively buying more fund units or shares during times of suppressed markets (rand cost averaging). To illustrate, imagine a farmer goes to purchase 100 avocado trees but the price has fallen 50 percent in the last month. He purchases double the trees for the same amount of money (your monthly contribution) and proceeds to plant them. During the following harvest, he yields double the produce from these trees and so this cycle continues. Much like the farmer, so too will your future retirement savings bear more fruit (interest and dividends) from the additional units or shares your monthly contributions purchased when markets were down. You could consider temporarily pausing your current monthly contributions (ensuring this will not incur any penalties), but still make these contributions towards a voluntary or discretionary investment, ensuring access to capital if needed. Before the next financial year end (February 2021), you could always use these accumulated savings to make a lump sum contribution to boost your retirement capital, while (still) enjoying the tax benefit. Chat to your financial adviser if you aren’t sure what is best for you.
ACCESS TO AN RA
Can you access the funds in your retirement annuity before the age of 55 if you're diagnosed with a terminal disease? – Name withheld
Jan van der Merwe, Head of Actuarial and Product at PSG Wealth responds: You can access a retirement annuity due to disability through infirmity of mind or body. Accordingly, it’s not a given that you’ll be able to access these funds due to being diagnosed with a terminal disease. However, the illness may result in disability. Fund rules will be considered, and the trustees of the fund may also apply judgement and their discretion in these cases. The treatment of funds that you access 4
as a result of disability will be subject to the normal tax rules and requirements that apply at normal retirement, i.e. you have the option to take up to a third as a lump sum, with the rest having to be used to buy an annuity. For the portion of the retirement fund that needs to be used to purchase an annuity, note that there may be some insurers that provide you with an “ill health enhanced annuity”, so it’s worth checking in with your financial adviser as to your best options.
HOSPITAL PLANS VS MEDICAL SCHEMES
My income has been hit hard during the lockdown. To save money I am considering cancelling my medical aid cover and taking out a hospital cash plan. What is the difference between the two, and what do you advise? – Name withheld
John Cranke, Principal at PSG Wealth Employee Benefits Midlands responds: Hospital cash plans are quite different from medical aid schemes. The latter are non-profit organisations regulated by the Medical Schemes Act (MSA), while hospital cash plans fall under the Long-term or Short-term Insurance Acts and are sold commercially for profit. Medical scheme premiums only differ based on income and family size, while in the health insurance environment, premiums will be based on the insurer’s assessment of the risk and may differ from person to person. The MSA makes it obligatory for all options on all medical schemes to cover the costs for prescribed minimum benefits (PMBs, which include specific hospital treatments and chronic illnesses with no benefit limit) at full cost. Hospital cash plans will only pay the specified benefits. Medical schemes reimburse healthcare services (provided they are covered by the specific plan) based on cost, while the health insurance products pay according to the benefit schedule applicable. Hospital cash plans are generally cheaper because they do not have to comply with the provisions of the MSA or cover PMBs. Across all medical schemes the cost of covering the PMBs is in excess of R900 per beneficiary, but this gives medical scheme members complete peace of mind that they are covered in full for any serious (life-changing) condition or event. Hospital cash plans will only pay benefits covered per the benefit schedule, which could lead to potentially catastrophic financial shortfalls if treatment is needed for serious injuries or disease. I would recommend medical scheme membership before a hospital cash plan for overall affordability in the long run.
WEALTH•INVESTMENT•PROSPERITY
5 REASONS
WHY THE FUTURE IS FEMALE To mark Women’s Month, Dale Irvine makes the case for the financial advice industry to pay far more attention to women as they increase their share of the world’s wealth.
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omen are making more financial decisions than ever before. Understanding the implications of this will be crucial for firms in the personal finance and fiduciary industries if they are to remain relevant. As of this year, according to a study by the Boston Consulting Group, women are expected to hold 32 percent of global wealth – roughly US$72 trillion – and most of the private wealth that changes hands in the coming decades is likely to go to women.
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More than ever before, it is crucial for the personal financial and fiduciary industries to understand how and where women will choose to invest their wealth. The knowledge gained will change the way that financial advisers, tax practitioners and estate planners do business. Family offices will also be impacted, because women will no doubt teach their children differently to men about legacy and philanthropy. Here are five ways in which women’s thinking differs from men’s, and how each case might affect your practice.
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Women are patient Goal-based investing, sometimes called lifestyle financial planning, is a relatively modern concept that has only been around for the past 20 years or so. We have a woman to thank for pointing us in the right direction – Lori Van Dusen, who is widely credited for kick-starting this investment approach. As a young financial adviser in the late 1990s and early 2000s, Van Dusen recognised that women think differently about wealth to men and she came up with a model that offered something more holistic and emotionally tangible than yet another presentation of graphs and spreadsheets. She decided to structure her clients’ investments according to their goals – a bucket for essentials, a bucket for aspirations, and a bucket for legacy. The client’s various goals would then determine the risk tolerance of the investments. It seems so obvious now, but back then Van Dusen was an anomaly. Yet her approach was incredibly successful – her firm, LVW Advisors, currently manages about US$2 billion for families and nonprofit institutions. Financial advisers need to realise that women tend to value the client-adviser relationship more greatly than returns and industry benchmarks. Women are patient enough to ride out market fluctuations and they’re not afraid to trust the algorithm of an index fund to match their risk appetite. The technology is there and they’re going to use it. If your firm is not on board with these trends, you are potentially alienating female clients.
Women are more effective leaders Women are hard-wired to build meaningful interpersonal relationships. Research has shown that they have superior memory and social cognition skills to men, which makes them better at multi-tasking and at finding solutions that work best for a group. Because of this, women are increasingly proving themselves to be better leaders than men. A 2019 study by the Harvard Business Review in the US surveyed more than 3 000 men and 4 000 women and demonstrated that women are perceived by their managers — particularly their male managers — to be more effective than men at every hierarchical level and in virtually every functional area including the traditional male bastions of IT, operations, and legal. What’s holding women back is not a lack of capability but a lack of opportunity. When given the same opportunities as men, women are just as likely to succeed in higher-level positions. What does this mean for a financial planning practice or a family office? It means that men actually have to listen! And firms should employ more women. Female employees need to be given the encouragement and the freedom to leverage their superior relationship and networking skills, and to build up their business confidence. Doing so will only strengthen your organisation and the industry as a whole.
Women are better investors Many studies back this up, including one conducted by Hargreaves Lansdown – the UK’s biggest consumer investment platform, which found that women returned an average of 0.8 percent more than men over a three-year period. The study points out that if this were to carry on for 30 years, the average woman would end up with a portfolio worth 25 percent more than the average man. What made the women fare better? Mainly, because they made less risky financial decisions than the men. They were more likely to invest in funds with a consistent record and they didn’t hold onto lossmaking investments in the hope that they would come good, as their male counterparts did. The study also showed that women tend to trade less frequently. Women traded shares 49 percent less than men and traded funds a whopping 67 percent less. If you distil the data, it seems that the average time a woman will hold a fund is nearly 11 years, whereas a man will only hold a fund for eight years. George Soros famously said that good investing is boring. He’s right: the investor who constantly analyses, fiddles and tweaks will generally do less well than the investor who adopts a cheaper, less complex approach. It seems that women understand this better than men.
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Women care More so than men, women have a greater tendency to deploy their wealth in accordance with their value system. They’re unwilling to accept a trade-off between returns and social impact – they want to beat the market and do it sustainably. There is data to prove this too, especially when it comes to women being more prone to giving than men. A report from 2018 called the US Trust Study of High Net Worth Philanthropy revealed that 93 percent of high-net-worth women give to charity, as opposed to 87 percent of high-networth men. Women are also more likely to volunteer their time: 56 percent did so, compared to 41 percent of men. One of the most high-profile examples in recent times is MacKenzie Bezos, ex-wife of Amazon founder Jeff Bezos. With an estimated wealth of US$36.6 billion, Bezos is the third-richest women in the world and one of the richest people in general. Unlike her husband, who is famously stingy with his vast fortune, she pledged to give away at least half her wealth over her lifetime or in her will. The time for being greedy is over – and it’s bad PR. Obviously not everyone has billions to spare, but women are recognising that even if you’re modestly well-off, you can invest smartly and give generously while still living a happy and meaningful life. Philanthropy remains one of the most important factors that influences the successful transfer of family wealth across generations. With this in mind, service providers need to be creative and find investments that dovetail with the philanthropic objectives of a family. That’s how you’ll get women on board, and it’s how you’ll retain the family’s business into the future.
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Women are fed up International movements like #MeToo are slowly turning the tide against genderbased violence and abuse. Men in power are no longer getting away with it and the average man is thinking twice about the way he treats women. Casual sexism is no longer funny or okay. This has led a worldwide boost in confidence for women: they no longer want to earn less than their male colleagues at the same level in business and they’ll no longer step aside when it comes to managing the family finances. They’re not going to accept the male tendency to treat maternity leave as some sort of temporary disability, and they’re going to push back if you try and suggest that an eight-to-five office day is mandatory, especially in the wake of the Covid-19 pandemic and what it has taught us about being flexible and working remotely. Outside the workplace, change is also coming fast. The majority of young people at universities are women, and women prime ministers like Jacinda Ardern in
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New Zealand and Sanna Marin in Finland have offered models of compassionate yet emphatic leadership – and a glimpse of what politics might look like in a better world. To sum up, women are more patient than men, with a stronger appetite for goal-based investing. They’re masterful at relationships and often make more effective leaders. Women care more than men – they will start divesting from companies and brands that fail to champion women, or human and environmental rights in general. Women also give more, opening the door to creative charity opportunities. None of this is bad news. In fact, it’s great news! But it does mean that the predominantly male finance industry needs to change. More work needs to go into understanding how and why women invest, and many more women need to be empowered in advisory positions to drive the change. Dale Irvine is director of Sentinel International, a fiduciary services company.
WEALTH•INVESTMENT•PROSPERITY
LOCKDOWN SURVIVAL – LESSONS FOR SMALL BUSINESSES When the government issued orders for a nationwide lockdown at short notice, companies across the country were catapulted into survival mode. Alan Duggan investigated the fallout on small businesses, encountering stories of courage, generosity, imagination – and sometimes, deep sadness.
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nevitably, the spread of Covid-19 and its concomitant safety protocols, ranging from lockdown and social distancing to the banning of alcohol and cigarettes, has affected almost everyone on the planet. And predictably, it has become personal: a much-loved uncle died from coronavirus, and recently I learned that a relative in her mid-20s had tested positive. Multinational corporations have filed for bankruptcy, centuries-old firms have gone to the wall and countless family-run shops have been shuttered for good. Against that, and often in defiance of the odds, some small businesses have managed to survive. Their stories reveal a mixture of prescience, bravery, lateral thinking and old-fashioned
luck – both good and bad. A case in point: a woman in my neighbourhood and her husband own a catering company, which transformed itself under lockdown from a highly successful commercial operation into a registered nonprofit that delivered nourishing vegetable soup to thousands of vulnerable people. From a point where they were catering for anything from a 10-person celebration to a mega-event for over 2 500, they are now, however, teetering on the edge of bankruptcy, having exhausted all their funds. To say this is unfair would be putting it mildly: after months of backbreaking work with volunteer chefs and other staff,
countless calls to generous farmers and other donors, and having served over 284 000 cups of soup to hungry people as far away as Kleinzee in the Northern Cape, it looks like the end. When I last checked, they were still making soup. That’s an example of bad luck and good hearts. On the other hand, some firms found themselves in a position to weather the lockdown regulations because their services or products were appropriate for the situation and ready to go, albeit not without some quick and clever footwork and a thorough knowledge of market trends. For example, a family friend who started brewing beer in his garage a few years
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ago came up with a product – the first of many iterations – that quickly won a following in the highly competitive craft beer fraternity. By the time the lockdown started, his brewery had grown into a hugely successful, multi-million rand operation with overseas investors and ambitious expansion plans. It would be reasonable to assume that the alcohol ban under lockdown brought all of that to an abrupt stop. Not so, because by that time his company had invested heavily in zeroalcohol beer that actually tasted good (as distinct from the variety that reminded one of stale dishwater). Production was ramped up, beer-drinkers came to the party, and sales went through the roof. In fact, the company moved more zero-alcohol beer during lockdown than regular beer sales in the same period of the previous year. Then there are the really small businesses – the ones that run on a shoestring and often rely on customer loyalty, social media and word-of-mouth advertising to keep the customers coming. In many cases, they rent their premises and regard their employees as members of the family, or at least trusted collaborators. Heart-wrenchingly sad, defiantly optimistic, fiercely determined or downright unlucky, their lockdown stories are echoed a thousandfold across South Africa.
my most popular destination, and the tour was very different from anything else on offer because I worked with local site guides to make it authentic. I took people off the beaten track to my friends’ little bars and restaurants. I also did food tours in Johannesburg, and I was about to branch out and tackle countrywide tours for foreign guests when Covid-19 struck.” Gilda believes the tourism industry probably identified the existential threat long before other businesses. “We hosted clients from Italy who arrived with gloves and sanitizers, and thought it quite comical at the time. We had no idea what was coming but very soon realised that we had been exposed, and actually went into isolation two weeks before the official lockdown. “I remember saying no to my last clients because the risk was too big; they were coming from highly infected countries. Not only did I have cancellations, but I had to refund an entire year’s bookings, so the financial impact was severe. I had spent such a lot of time and energy building my business over the years, and to lose it overnight came as such a shock. That sense of loss quickly developed into severe anxiety. For the first six weeks, I could not think of a way out.” Then came the epiphany, which Gilda prefers to call a “reality check”. She says: “I don’t know what sparked it, but I suddenly
CASE STUDY #1: BLONDE ON FIRE Gilda Swanepoel was devastated when the lockdown arrived. As owner and hands-on operator of Eenblond Tours (OneBlonde Tours), a small and successful business operating in and around Johannesburg, she was used to ferrying local and overseas visitors to a variety of destinations ranging from Soweto bars and restaurants to swanky game parks, invariably earning plaudits from clients for her cheerful demeanour and can-do attitude. Then, almost overnight, everything came to a grinding halt. “I specialised in immersive travel experiences, meaning that I tried to connect communities with each other, getting away from bus tourism, or ‘zoo tourism’, as I call it. My focus was Soweto, 10
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remembered that I had always bought my firewood from various sources in North West Province. Winter had arrived, I owned a reliable Hilux bakkie (the vehicle had become mildly famous, thanks to Gilda’s blog, 'Eenblond and a Hilux'), and people would always need firewood. Almost overnight, I became a firewood merchant!” She’s a traveller by inclination, says Gilda, which helped. “I know all the sneaky places, and I’m also keen on a bargain, so I did a bit of research, spending a few weekends in North-West with my suppliers, trying every kind of available wood, testing the market.” Gilda went into lockdown with a friend from Soweto, Gabriel Chauke. “We’re kindred spirits. When I came up with the firewood idea, I knew it would be super-hard to do alone, so we started this together, and Gabriel is now my partner, which is lovely. But I couldn’t have done it without the Eenblond brand, because probably about 50 of our first orders came from people who follow me on social media or people who’ve been on our tours. Friends also spread the word.” What does the future hold for her new enterprise? “We’ll see what the demand is like in summer, but I think we’ll continue with this even when our touring business comes back, which will probably only happen next year.” Gilda’s blog, which recounts her
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adventures and pays homage to her bakkie’s sterling service, has since acquired a new name: Eenblond on Fire. It fits. CASE STUDY #2: OF LOVE AND PIZZAS If you visited a Cape Town pizzeria called Ferdinando’s, owned and run by Kimon Bisogno and Diego Milesi, you would usually find it packed to the rafters, mostly with repeat customers. That came to an abrupt stop in late March with the nationwide lockdown – but it wasn’t the end. The couple attribute their survival to a love story that started in 2008 on the Balearic “party island” of Ibiza. Kimon was hanging out with a bunch of other young people in an idyllic beach camp when she noticed “a beautiful boy with his speargun”. It was Diego, and he was similarly smitten. On discovering that Kimon held an Italian passport, Diego used an ItalianEnglish dictionary to frame a request that she reconsider her plans to return home to South Africa. It emerged as “I propose you come to Italy”, which Kimon naturally interpreted as a proposal of marriage. (It wasn’t, although it soon became clear that Diego wanted more than a holiday romance.) Two years later, having settled in Cape Town, they welcomed a dog named Ferdinando into their lives (their restaurant was later named in his honour). Diego suggested they start a pizza business, reasoning that people would always be ravenous for the Italian treat (which, according to some sources, traces its origins to at least AD 997). He chatted to veteran pizza makers in Italy, learned their secrets, and the couple were soon successful restaurateurs. Early this year, things were still looking good. They were talking about the possibility of a second restaurant, perhaps an ice-cream shop (Kimon’s dream) and even a dedicated bakery. They even had a new baby, Stella-Luna. Kimon has vivid memories of the pre-lockdown frenzy. “We scrambled to get the shop clean and close the kitchen for the predicted three weeks, which
obviously went on for much longer. It cost us R40 000 just to stock the pizzeria for one week, so there was a huge loss in terms of wasted fresh produce with no profit. Actually, it wasn’t wasted … we were happy to give it away to our staff.” She remembers many sleepless nights, high stress levels and even a feeling of shame, “partly because I realised we were in a privileged position, with savings, whereas our staff didn’t have this backup”. They did what they had to do, says Kimon. Diego took over delivery duties and other staff were reassigned to new roles. They even sold a few DIY pizza kits. “Our chefs lived in faraway townships, and because there was a high risk of infection if they used public transport, we installed two of them in an apartment above the restaurant. They work on rotation together with three other staff members and a manager.” Another blow under lockdown was the closure of the restaurant’s regular Wednesday sit-down pasta meal in a local church hall, which fed the area’s
homeless and other needy people, but they overcame that by linking up with a community action network that held the requisite permit. “We are still feeding two meals daily to 190 homeless and vulnerable people and providing water and food parcels to others. We’ve turned Ferdinando’s into a central kitchen where volunteers can make the meal packs and plan to bring back our regular Wednesday project when we reopen.” She has no doubt that Ferdinando’s will survive, says Kimon. “I think we’re lucky to have loyal customers in our neighbourhood. But right now, we miss the celebration aspect of eating pizza and toasting life.” CASE STUDY #3: LAUGHING IN THE FACE OF ADVERSITY Comedian and one-man business Nik Rabinowitz reckons there is no way he could have prepared for the lockdown that dropped the curtain on his live performances. “I remember saying to my wife that she was now the official
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grow their own food. We managed to raise about R80 000 to split between those two organisations. To me, that was the most fulfilling part of the whole effort.”
Nik Rabinowitz breadwinner and I wouldn’t be doing comedy for many, many months. “I normally travel a lot, so this is probably the longest unbroken period I’ve spent at home in the past 15 years, and the longest time my wife and I have been in the same space with each other. There’s no child support, so we’ve been home-schooling our kids, and my wife – who’s a doctor – has been practising telemedicine from this office while I’ve been trying to produce content. It’s been quite stressful at times but it certainly hasn’t been boring.” As a high-energy person, has he found it difficult to turn it down somewhat? Has he (gulp!) become more serene? Nik laughs. “That’s my stage persona. I’m not that person off-stage … it’s just me with the volume turned up. I can remember a number of days when I would be almost pulling my hair out and experiencing a range of different emotions from deep sadness to frustration to being depressed … a whole rollercoaster ride with not too many highs. Normal human stuff, with nowhere to go.” Nik noticed that other comedians, in particular stand-up comic Schalk 12
Bezuidenhout, had started to work online, so he asked Bezuidenhout how it all worked. He duly made contact with the right people, and in May he staged his first online show. People tuned in from all over the world and Nik estimates they sold nearly 3 000 tickets for the first show, each of which allowed a person or family to view the show on one computer. It was a stressful exercise, he recalls, partly because of his tech-related fears (would his Internet connection crash and upset thousands of viewers?) but also because he had been up until 3am the previous night after his mother had an armed robbery at her house. In the event, it all came together and the show was a success. “It opened a whole new realm of possibilities for me.” Was the money useful? “Oh yes!” replies Nik with a grin. He’s especially pleased about the show’s contribution to two charities: “I saw that (musician) Jeremy Loops had set up a feeding drive whereby he was sourcing food from local farmers and creating this giant soup kitchen, and I also support an organisation called Soil for Life, which teaches people how to
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CASE STUDY #4: FOR THE LOVE OF LIVE MUSIC In 2004, the Tait family bought a typical “corner café” in Cape Town’s southern suburbs and added a coffee shop, selling the usual café fare as well as home-made dishes and baked products. Four years later, music came to the Alma Café. It wasn’t exactly a big league concert, as Richard recalls. “A band called Blacksmith was looking for an outlet and approached us, so we hosted a ‘show and supper’ for friends, charging a nominal fee to cover expenses. The concept was a hit, and the band returned to play every two months on Sunday nights. “We decided to extend the opportunity to other musicians, word spread fast, and within weeks we were hosting shows every Sunday. Demand increased rapidly, and by 2009 we had introduced regular shows on Fridays and Saturdays. The nature of the business changed to that of supper/ theatre.” Over the years, the little Alma Café built up a fiercely loyal body of patrons who enjoyed the intimate atmosphere, good food and excellent music. It attracted some big names on the music scene, including British folk singer Reg Meuross, Dave Cousins (from the rock band Strawbs), guitarist Steve Newman, Wendy Oldfield, Dan Patlansky, PJ Powers, Robin Auld, Koos Kombuis and many others. What happened when the lockdown came? Was there a Plan B? In short, no. “We started with food deliveries on 25 May in an attempt to generate financial support without having to ask for aid or crowdfund to sustain the venue. However, this currently provides only about 20% of the required income.” The anxiety and sense of hopelessness were almost palpable, says Richard. “We don’t qualify for government aid because we are not regarded as an essential service. Because we’re a soleproprietor partnership and not a registered company, and because we’re owners and
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Richard and Retha Tait Picture: Alan Duggan
hands-on workers, we are not eligible for UIF or other grants, either. Several patrons suggested that we pre-sell future shows to tide us over, but the risk seemed too great.” What does the future hold for the Alma Café? “With the arrival of the Covid-19 pandemic, live-streamed music has been brought into sharp focus, but it’s a costly investment in terms of the equipment needed. Ultimately, the future for the Alma Café lies in a daytime haven for non-office workers and students to spend time with the world at their fingertips. Evenings will be dedicated to the promotion of live music, when musicians and patrons alike can share the experience with music
lovers across the globe by means of live streaming, a space where they can lose themselves in the moment.” CASE STUDY #5: COVID-19 vs HUMAN DYNAMO Natalie Stewart is the founder and owner of Afrodizzy Acts Entertainment, a multi-faceted company that offers a vast repertoire of entertainers – they range from fire eaters to choirs, from ballerinas to burlesque dancers and everything else in between – for corporate and other events. In addition, she runs a casting agency, a costume hire facility and a company that provides inflatable décor. Oh, and she’s a single parent with an 11-month-old baby.
She is also a human dynamo, and quick on her feet. “Life was going well. I had just bought a new car and booked a holiday when Covid19 hit. We obviously knew something was coming, so on the Monday before the start of the lockdown, I called a meeting with my staff and told them they needed to do something – and that something was to make masks. “I rushed off and bought three sewing machines before the shops closed. Luckily, I already had seamstresses working for me, so I basically just diverted everybody into different roles. I registered a new company and opened a bank account while the staff created a Facebook page, website and e-commerce store, and got things going. “Part of my business involves collecting all kinds of performers in different genres, so I started doing exactly the same thing with our face masks. I found suppliers for adult and kiddie visors, visor hats, visor beanies, sanitizers, signage … absolutely everything you could think of. I followed my existing business model and created a one-stop agency. “We made a lot of fabric masks and did really well in the first month, enabling me to cover most of my costs, which were quite high. The second month wasn’t nearly as good, so I’ve now moved to printing our own masks, with fun, cool designs that are different from all the others. “For instance, there’s my Corona Fighter range, with images such as a golf club hitting a coronavirus instead of a ball, or karate-shopping the virus, and a T-rex breathing on the virus. We also have a range of mouth masks featuring missing teeth and dangling cigarettes … I can basically produce anything. “We’ve managed to get quite a few shops to sell them on consignment and turned the front of our office into a shop. We also print children’s drawings on masks and are working on a colouring-in opportunity that allows children to work on a template and turn their art into masks. There’s even a range for the psychedelic/ trance scene, and I’m trying to persuade companies to buy into the opportunity to brand masks. “One of my colleagues had a great idea
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hopeless and turned to drink and drugs. “The elders told us that before 1994, no one was going hungry, the land was good and strong, and they all had vegetables and fruit all year round, with lots of microbusinesses.” However, with the coming of democratic rule, the villagers were given so much maize that they abandoned their old agricultural practices and focused exclusively on maize. Since then, the land had degenerated, rivers had been neglected and old skills lost. Says Rachel: “Now, most people are not eating well, and will buy food rather than grow their own. Farming is seen as a poor man’s skill and is definitely not regarded as ‘cool’ among the youth. My job is to make farming cool again.” In the meantime, the Natalie Stewart couple have been forced to draw on their own financial resources to survive the lockdown challenges. Against that, they’re encouraged to know that their concept works. “David returned to the Eastern Cape a few times in December and January, when he planted two big permaculture gardens. These were harvested during lockdown and are still being harvested now, so we’ve been able to feed the elders in two villages. “Our main mission was to hunt down, gather and enrol youth leaders who had an interest in farming. We’ve found some amazing young people, kept in touch, and now we’re looking at starting our next gardens, with plans to grow another hectare of food and have 1 000 permaculture gardens in the Eastern Cape continue, so I was made redundant.” for “Baby on Board” masks for pregnant within the next five years. Rather than play victim, Rachel turned women, and I’ve just managed to get those “David is an expert at getting crops to her attention to a permaculture garden into a baby shop. The options are pink, market, so the initiative is not just about project that she and her partner, David, blue or half-and-half for those who don’t growing food for an entire village, but had launched and nurtured in the rural know what’s coming.” also about selling the excess product. Our Eastern Cape with the aim of uplifting future plans call for cold rooms at all the and empowering entire villages. “During CASE STUDY #6: EMBRACING lockdown, I put my head down and worked central hubs in the villages and also lots of THE OLD, PURSUING THE NEW microbusinesses such as bee keeping and Non-profit organisations across the country really hard to brand, name and frame a non-profit movement that we’ve called The the production of herbs and oils.” also took a beating when the coronavirus Their initiative will be led and driven by Movement in Africa.” struck. As budgets were slashed and Their goal, says Rachel, is to teach young young people, says Rachel, while she and donations slowed to a trickle, many had people to plant food crops in the way their David fill the role of “accelerators”. As she to mothball projects and shed staff in puts it: “We want to … draw the youth order to survive. Among the casualties was grandparents had done. “We were invited back from the city into the gardens to plant Rachel Smith, who worked for a non-profit to villages where we would sit in a circle and listen rather than go in with a solution, food, get healthy again, play music in the academy in Langa, Cape Town, called fields, and feed Africa. In effect, it’s about Bridges For Music. “Sadly, we realised at the as so often happens. We heard there was a massive issue around the youth, who felt moving forward by going backwards!” beginning of lockdown that we couldn’t 14
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INSURANCE
AND THE PANDEMIC Covid-19 and the accompanying lockdown have shaken up the short-term insurance industry, but to what extent will adaptations translate into permanent change, asks Gareth Stokes.
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t is not yet clear to what extent businesses will adopt the digital innovations introduced during lockdown, but there are early signs that South Africa’s shortterm insurers are willing to abandon triedand-tested business processes in favour of something new. Insurers offering protection for personal assets such as buildings, household contents, and motor vehicles were faced with three challenges as the country entered lockdown on 27 March. The first of these challenges was how to continue operating under level five of the country’s coronavirus alert. Financial services providers were fortunate in that they were immediately placed on the “essential services” list, enabling them to continue business subject to complying with lockdown regulations. The second challenge emerged as the extent and likely duration of the lockdown became clearer. Short-term insurers were among the first businesses to realise the financial impact of lockdown on their policyholders, many of whom would
struggle to pay monthly premiums owing to reduced working hours and other salary sacrifices. Third, the insurers had to reflect on how their personal lines business model would change during the lockdown and immediately following it. This article reflects on the impact of pandemic and national lockdown on personal lines insurance, with a focus on how this class of insurance is likely to change as the country gradually emerges from lockdown. Life under lockdown Most short-term insurers were able to seamlessly convert to work-from-home or online businesses thanks to the bulk of their policy administration functions already being digital. After making the necessary tweaks to their operating processes, and ensuring that staff had the tools to work remotely, it was left to insurers to address bottlenecks in areas such as claims assessment and fulfilment. Although insurers were open for business,
it was not possible to carry out repairs on most categories of assets. Motor vehicle repairs that were assessed and approved pre-lockdown, for example, had to be placed on hold until the automotive repair sector returned to work under level three. “The claims and emergency services on our app, as well as our emergency lines, were available throughout the lockdown,” says Ernest North, co-founder at Naked Insurance. But although the insurer could assist with emergency plumbing and towing, there were difficulties with the speedy resolution of motor vehicle and household repairs due to panel beaters and other repair services being on lockdown. The only plus for personal lines insurers was that they experienced significant reductions in motor claims through lockdown level five, level four, and even level three. The country’s largest insurer, Santam Limited, says that their motor claims were down in line with the small number of vehicles on the country’s roads in April 2020. “Claims have picked up slightly as the economy opened
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up again through May and June; but our experience is still far from the levels seen pre-lockdown,” says Fanus Coetzee, head of claims adjustment services at Santam. “From a risk perspective we anticipate ‘working from home’ as a significant part of the new normal, which will likely result in less traffic congestion and thus a lower vehicle collision frequency.” Santam’s motor claims experience was mirrored by other traditional insurers. Discovery Insure confirmed a significant decrease in accidental damage claims as the lockdown progressed. This allowed them to refund clients a portion of their premium for the month of April, and subsequently extend this offer into May and June. “There were other claim events that impacted our motor result, such as the increase in hail damage claims over the period compared to the prior year,” says Anton Ossip, chief executive at Discovery Insure. “Even though clients are driving less during the lockdown, their vehicles are still exposed to other risks such as weather damage and theft.” Old Mutual Insure reports a similar motor claims trend. They saw a dramatic reduction in motor accident claims in April and a gradual uptick with each “softer” level of lockdown. “In June we are almost back where we were before the lockdown,” says Soul Abraham, chief executive for retail at Old Mutual Insure. The insurer saw claims relating to motor vehicle theft and hijacking following a similar pattern. Most of South Africa’s large short-term insurers assisted clients with premium refunds during the toughest months of lockdown. Naked Insure went one better, by using an innovation that was available to its customers pre-lockdown to reduce their lockdown premiums. 16
The insurer’s CoverPause feature allows policyholders to pause accident cover when vehicles are not in use. “We lowered our CoverPause premium rate for the first three months of lockdown,” says North. The offer, subsequently extended to endSeptember 2020, resulted in policyholders saving as much as 90 percent of their usual premium over the period during which they had “paused’” their vehicle accident insurance cover. Buildings and content Those expecting ‘stay at home’ to lead to an improved claims experience for buildings and household content claims might be surprised to learn that the opposite is true. According to Discovery Insure, they experienced a sharp rise in the number of claims submitted for hail damage to property (eight times more), damage to household contents due to power surges (up by 50 percent), and damage due to burst geysers and pipes (up by nine percent). “The above statistics highlight that while our claims experience has shifted over recent months, there is still a need for insurance to protect clients against many other costly and unexpected events besides vehicle accidents,” says Ossip. Old Mutual Insure had a slightly different buildings and household contents claims experience, observing that building claims were seasonal, and typically impacted by environmental factors such as rain and floods. “Our buildings claims have not had much of a change. However, as we go into winter, we are seeing a spike in both the frequency and severity of burst geyser claims due to people spending more time at home,” says Abraham. Santam, meanwhile, was non-plussed
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by the impact of lockdown on its buildings and household contents claims, noting that there were no major deviations from their historical claims experiences for these categories of cover. Post-lockdown scenario What do personal lines insurers have in store for customers post-lockdown? We asked insurers to reflect on any improvements made to their business processes during lockdown and to indicate whether such changes would remain in force? We also requested that they consider any product innovations that were likely to emerge by combining new processes with technology. Claims processing is where the rubber hits the road for personal lines insurers. Customers want confidence that their claims will be speedily assessed and paid out, in line with their financial expectations, and as quickly as possible. Naked Insure, being a digital insurer from day one, believes that its motor vehicle claims process was already efficient when entering lockdown. For other personal assets it has started settling more claims by way of cash or vouchers, rather than repairing or sourcing a replacement item. “Many repairers were unable to operate and people were more comfortable accepting a voucher from an e-commerce retailer to replace, for example, their phone or tablet,” says North. Old Mutual Insure says that 70 percent of its motor accidents result in minor to medium damage. “To make things easier for our customers, we introduced a motor fasttrack claim mechanism where we send out a link to the policyholder and they submit the images of the accident damage to us,”
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says Abraham. “We use these photos to get a quote from the panel beater, eliminating the need for the customer to take their car in for assessment”. A similar process makes it possible for claims assessors to approve buildings or household contents claims using a desktop-based assessment method. The insurer is also making more frequent cash-based settlement offers based on acceptable quotations, allowing policyholders to carry out repairs at a more convenient time. “Discovery Insurer's claims process has been totally paperless since the inception of our business,” says Ossip. “There are no claims forms required to be filled in and clients or advisers are able to log claims on our website or mobile app, and in many cases have these claims processed instantaneously using an artificial intelligence engine.” The insurer is also aggressively focused on delivering exemplary services to its intermediaries and staff, to ensure the best possible product distribution experience for clients. “The way we service our clients and brokers is of utmost importance to us and we wanted to ensure the same quality of service that they have come to expect from Discovery Insure during lockdown,” says Ossip. This process started with implementing a ‘work from home’ policy to ensure the safety of the insurer’s staff. Staff who were required to be at the office, but did not have personal motor vehicles, were given rental cars to prevent them having to use public transport and to assist them with social distancing. Despite the various initiatives, Discovery Insure noticed an impact on new business written during the lockdown period, as certain financial advisers and insurance broker call centres were unable to open; but they say that the outlook has already improved under level three. “We are now starting to see brokers’ new business pick up as client interactions move from face-to-face to online, which is fast becoming the new norm,” says Ossip. He notes that Discovery Insure has been built from day one to allow clients and advisers to
interact with the insurer in a digital world. Other traditional insurers have placed a similar focus on seamless distribution processes, despite external crisis. “Old Mutual Insure implemented a ‘work from home’ policy, by increasing our investment in technology to allow our full staff complement to work from home,” notes Abraham. “We are also doing virtual engagements with our customers and distribution channels, and are just as productive, if not more so, utilising virtual engagement tools in engaging our customers and business partners.” The insurer reallocated resources into its customer service hubs to focus on customer engagements and retention, with these employees assisting clients in financial difficulty to find solutions to keep cover intact whilst keeping premiums to a minimum. “These proactive measures have had a noticeable impact in retaining customers during these hard and uncertain times,” says Abraham. “The ongoing engagements with our employees using digital platforms such as blogs and Microsoft Teams interactive sessions help us to keep our employees engaged and motivated.” Consumer-driven change? Is the change in consumer behaviour during lockdown resulting in pressure being applied on insurers to introduce major product innovations? We wondered whether motor vehicle policyholders were demanding ‘pay as you drive’ and other usage-based asset covers. Discovery Insure entered lockdown as a global leader in usage-based insurance through its Vitality Drive programme, which uses the latest vehicle telematics technology to collect information about clients’ driving behaviours. The insurer cites a recent South African survey, which shows that 79 percent of consumers believe working from home will become the new normal, as the reason for converting its motor premium relief benefit into a dynamic distance cash-back offer. “Our Vitality Drive clients can get up to 25 percent motor premium cash back
based on their mileage driven, where we will assess mileage using our state-of-theart telematics technology,” says Ossip. “This benefit is extended to the end of lockdown or 31 December 2020, whichever comes last.” Old Mutual Insure, meanwhile, is considering multiple options that will give customers the choice to select the insurance cover that suits their own unique circumstances, risks, and budgets. “We are likely to see an increase in exposure at residential dwellings as people run their businesses from home due to the seamless nature of digital technology. As an industry, we have to be ahead of these changes,” says Abraham. Much of the technology relied upon during lockdown was already in play in the months leading up to the crisis. “During the lockdown, we have seen a shift to digital channels as was expected – we have also seen intermediaries transition to telephone, conferencing, and digital technologies to sustain their businesses,” says Coetzee at Santam. “We have seen ongoing sales activity from both intermediary and direct channels.” Santam’s diverse distribution channels, incorporating traditional intermediated distribution and direct or online insurance has helped during the lockdown, although overall sales activity levels have reduced. The insurer noticed an extensive uptick in the use of its digital servicing tools through lockdown. Digital innovations such as intermediary portals and mobile apps have now outstripped many of the insurer’s other channels. “Our strategic investments over the last five to 10 years in modern policy, claims, and underwriting management systems, digital portals, mobile tools, workflow technologies and the like are proving beneficial to us during this period,” says Coetzee. Naked Insurance was digital-ready since its inception. “We did not need to change much before or during lockdown because our business is fully digital and built on two core principles,” says North. The first of these principles revolves
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around automated processes and client self-service via applications and the website. This means that sales, billing, policy changes, claims, and all related services can be performed seamlessly. The second principle centres on extremely high levels of customer word-of-mouth and low-cost digital distribution. “Some members of our team worked from home some of the time before Covid-19, and we were already well set up for remote work in terms of our tools and processes,” says North. “We did not need to change much on that side to accommodate the need for remote collaboration during the lockdown.” Discovery Insure has always been a digitally-enabled insurer, too. It makes use of an online financial platform known as its Financial Adviser Zone to allow brokers to digitally interact with their clients. “From generating quotes, servicing clients all the way through to submitting clients' claims, brokers can do everything online,” says Ossip. “Clients are also able to deal with us directly and submit claims through online channels such as through the website on the Discovery app”. Old Mutual Insure, meanwhile, claims that it has been optimising its online platform, MyOMInsure, to drive self-service and straight-through processing. A mobile application offering similar functionality will be rolled out in due course. South Africa’s short-term personal lines insurers will continue to assess risks and will be agile in responding to the risk landscape and clients’ needs. “Our technology allows the flexibility to change and lower rates post the Covid19 pandemic, especially if we encounter significant changes in people’s behaviour,” says North. “Beyond the obvious benefits of technology, such as convenience, efficiency, and cost savings in real-time, there are more innovations we can offer in the months to come.” Old Mutual Insure is also busy assessing emerging customer needs related to working from home to understand the additional cover they may require. Consumers can look forward to new personal asset cover solutions soon. 18
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C I T S E M O D R U R O E Y K IS WOR D WITH E R E T S ? I F G I RE THE U A large majority of domestic workers who should be registered with the Unemployment Insurance Fund are not registered, and this has hampered emergency payouts during the Covid-19 crisis. Anna Rich explains what you need to do to comply with your legal obligation.
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n his Monday morning email, “From The Desk of the President”, in mid-June, President Cyril Ramaphosa wrote that the pandemic has been a reminder of the deep inequalities that exist. But he also said it presents an opportunity for a “reset”. And we can start at home: if you employ a domestic worker, make sure you comply with the applicable labour laws.
workers “After lockdown measures were instituted, workers who didn’t have food,” says Amy Tekié, co-founder of Izwi Domestic Workers Alliance. In April, Izwi surveyed 602 domestic workers and found that 26.5 percent were not going to work, nor being paid. A further 27 percent who were on leave had been paid in March, but were not sure whether they would be paid after that. “A couple of factors left some domestic workers without pay,” Tekié says. “For a start, the government endorsed the idea of ‘no work, no pay’. When the survey was published, I came across comments like, ‘Why should I pay the domestic worker if she isn’t working?’ But it’s a moral duty, because domestic workers are paid so little that they don't have savings to support themselves.” However, many employers are feeling
paid). And when the pandemic struck, employers whose employees were the UIF’s Covid-19 Temporary Employer/ Employee Relief Scheme (TERS). Fault lines exposed Most employers of domestic workers had not registered with, or paid into, the UIF. The Izwi survey found that only 10 percent of domestic workers were registered, 79 percent were not registered, and 11 percent did not know whether are in line with research from Women in Employment: Globalizing and Organizing and the Social Law Project at the University of Western Cape, which found that only 20 percent of domestic workers are registered. “Some employers were telling domestic workers that the government was responsible, while the Department of Labour was saying ‘Your employers didn't register you with the UIF,’” says Pinky Mashiane, president of the United Domestic Workers of South Africa
where we are, as domestic workers. “Employers are at fault for not registering domestic workers and the Department of Employment and Labour is at fault as well for not ensuring that employers are complying,” Mashiane says.
Khunou contends that we need to reevaluate our perception of certain types of work. “As a result of the pandemic, we’re seeing that those who work at grocery stores, health workers, and domestic workers are essential workers. If there was no one to work in our households, or to care for our children, many of us wouldn’t be able to do the work we do.” The legal obligations of employers (including employers of domestic workers) are laid out in the Unemployment Insurance Contributions Act. Here are the main points: • Register as an employer. See “How to register (and pay)” below. This applies to part-time employees too, unless they work for fewer than 24 hours a month. • Every employer and employee has to contribute to the UIF (with some exceptions, such as learnerships). The employee contribution is one percent of their monthly remuneration, and the employer contribution is one percent. The employer has to deduct one percent of the employee’s remuneration monthly, and pay both that and their own one percent to the UIF by the seventh of the following month. (The employer could cover both.) If the employer has failed to make the deductions, they may not deduct arrears from the employee after • The employer has to submit a statement
are through the roof, says Tekié. “In these a domestic worker is legitimate.” Enter the UIF The Unemployment Insurance Fund (UIF) provides previous contributors with temporary relief from the economic are obliged to register employees with the UIF, and to ensure that the monthly contributions are paid. This applies to employers of domestic workers too. The become unemployed or have their hours reduced, are ill, are on maternity leave, need to care for an adoptive child, or if they die (in which case their spouse/ life partner or dependent children are 20
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Government steps up On 25 May, the Minister of Employment and Labour extended TERS so that lost income due to the Covid-19 pandemic would include domestic workers who were not registered for, or contributing to, UIF through the negligence of their employers. Time for employers to comply “My hope is that this UIF debacle will be a turning point in terms of the formalisation of the sector,” says Tekié. “This is an opportune moment for employers to register and keep up with their contributions,” adds Kelebogile Khunou, a researcher at the Socio-Economic Rights Institute.
What happens if you don’t comply? In theory, if you fail to pay any amount due, or to disclose information required by the
months, or both. Clearly enforcement has been lax, to date. “If you owe the UIF money, they are rigid, like SARS,” says Estelle Carstens, who started her business, Domestic Support, to help employers of domestic workers with UIF compliance. ”After the employer has paid arrear UIF contributions plus interest, I request a statement from the debtors department, to make sure everything is in order.”
says Carstens. “The call centre has been down since lockdown started. Only the TERS hotline is open.” Other issues UIF registration is just one facet of labour law compliance. Other requirements are: • A contract: This is the starting point of any employment relationship, says Carstens: “If it’s not writing, it’s up for dispute.” • Pay (at least) the minimum wage: The National Minimum Wage (NMW) for domestic workers is Rl5.57 per hour. Calculate the monthly minimum by multiplying the weekly wage by 4.3. For minimum is R2 678.04. However, the Pietermaritzburg Economic Justice and Dignity Group says that in May, transport, electricity, and food (for four) amounted to R4 383.50, which means the NMW would have had to increase by 75.9 percent (R11.82) per hour to R27.39 just to cover these basics. For the latest details,
Is there a chance of an amnesty? Along with the SA Domestic Services and Allied Workers Union and The Social Law Project, Udwosa submitted a letter to the Department of Labour, advocating an amnesty period for employers of domestic workers. They are calling on the department not to penalise those who did not register their domestic workers. “Instead of registering their domestic workers with the UIF, some employers are letting them go, as they do not wish to make back payments,” Mashiane says. “Our objective is to promote compliance response has been forthcoming from the department, as yet. How to register (and pay) You can do this in person, at a Labour Centre; by phoning (012) 337 1680; by emailing domestics@uif.gov.za; or online, co.za/uif/. At this point, uFiling is probably the best option. On the home page, click on
the “Manuals” tab, then “User Guide”. This provides screen shots of each step, from signing up as a user, to registering yourself and your employee, and submitting declarations and making payments. You will need your domestic worker’s identity number. When you enter working hours and salary, if you have reviewed this annually (as required), you will have to enter the Since you are newly registered, and have not made monthly payments, you will have to do multiple return submissions and payments. For outstanding penalties and interest, contact the UIF. “Though the uFiling site looks good, people struggle to navigate it,” says pay a registered labour practitioner to do it for you. In fact, the uFiling FAQ document on the site suggests that the employer (user) delegates to a practitioner who has been appointed to provide UIF services. If you need uFiling support, you are unlikely to receive a response at this point,
Index” and the current month. Consider the Living Wage Calculator for domestic workers, based on this index. • Provide payslips: “At Izwi, domestic workers have told us that when they requested a payslip, their employer asked, ‘Why do you need it?’” says Tekié. “You shouldn’t have to explain why you need a payslip. That’s your right. Not having one impacts your ability to rent, and to get banking services. The payslip gives the worker a sense of how their wages and overtime are calculated.” RESOURCES • Google “Domestic Workers – Labour what you should know. From page 18, samples of an employment contract, job description, and payslip are provided. Also see SERI’s rights of domestic workers. Note: in both resources, minimum wages are out of date. For the latest information, see Government Gazette, 17 February 2020.
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WHY DOMESTIC EMPLOYERS HAVE NEGLECTED TO REGISTER WITH UIF One of the issues is ignorance,” says Amy Tekié, co-founder of Izwi Domestic Workers Alliance. “There are employers who genuinely don’t know that they need to register domestic workers with the UIF, and contribute to it. It doesn’t cross their minds, and they don’t really think about labour laws.” For Kelebogile Khunou, a researcher at the Socio-Economic Rights Institute (SERI), ignorance is becoming an old excuse. “If this was the early 2000s, sure. But now, in 2020, there’s growing public understanding that domestic workers have rights and are no longer 'servants' as they were referred to during the apartheid era.” However, she adds that there’s some sort of disconnect in the minds of employers: “A lot of people who employ domestic workers don’t see themselves as an employer, and by extension, they don’t think the legal obligations that you have as an employer apply to them. Whereas in business, the Human Resources department knows that there are laws that they need to follow, and that the Department of Labour guides their actions. But this has not been adequately communicated to employers of domestic workers. For the most part, the relationship is seen as a very informal arrangement: this person will clean my house, and in return I will pay them – I do you a favour, you do me a favour. But actually it’s an employment relationship.” The perception of this sector as “informal” is exacerbated by the culture that surrounds it: that of servanthood, and of “women’s work”, professionalised, Tekié adds. Of course, attending to UIF contributions is yet another item on lengthy to-do lists. “Initially, when domestic workers who did not get paid approached Izwi for advice, some of them told us, ‘I’ve been asking my employer to register me for years, and she kept saying she’d get around to it, 22
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but she didn’t.’ It’s an admin hassle and because it doesn’t impact employers, they don’t do it.” That said, when some employers are motivated to try to do the right thing, it’s not easily accessible, says Khunou. "The Department of Labour needs to make sure it’s simple for employers to take the steps they need to take. But employers their obligations.” Finally, there is a lack of enforcement. Khunou points out that the sheer number of employers – almost as many as there are workers – means that compliance is only register of domestic workers is the UIF, and that is a fraction of the number of employers, so there’s no way for the government to hold non-compliant employers accountable unless the worker goes to the Commission for Conciliation, Mediation and Arbitration (CCMA). Reporting an employer to the CCMA
go to the CCMA, that’s it, you’ve ruined the relationship – even if it is for a small Khunou. “The rest of us deal with the HR department at work and it is less likely to
Inspectors from the Department of Labour check on corporates, says Estelle Carstens, founder of Domestic Support, a business that assists employers of domestic workers with UIF compliance and other contractual issues. But since she started the business, she has only come across a single instance of inspections of employees of domestic workers in one area. “People were issued with a warning document, saying that they needed to get contracts and registration in place – and the inspectors actually followed up on this. I know this because one of the employers they checked on became a client.”
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NUMBERS OF CHOICE FOR STOCK PICKERS They say numbers don’t lie, and the numbers on a company’s financial statements can reveal whether or not it really is a worthwhile investment. Mark Bechard asked asset managers which numbers they use most when assessing a share.
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f you follow the financial media or the commentaries disseminated by asset management companies, you’ll have encountered analysts or fund managers making the case for or against a particular investment by referring to a company’s financial health, according to its financial statements, or to a financial ratio – for example, “the share is trading at a P/E of …” Before we invest in a company’s share, we want to know how healthy that company really is, how it has performed over time, and whether it can sustain its good performance – or make a comeback if it hasn’t been doing as well as it once did. We also want to know whether the share is correctly priced: would we be underpaying or overpaying if we bought it today. Investors and analysts use financial ratios to evaluate the financial health of companies by scrutinising their past and current financial statements. Comparative data can demonstrate how a company is performing
over time and can be used to predict future performance. In virtually every case, the numbers required to calculate one of the financial ratios can be found on the company’s financial statements. FINANCIAL STATEMENTS A company’s set of financial statements usually includes a balance sheet (or statement of financial position), an income statement, a statement of owners’ equity and a statement of cash flows. Each statement provides information on a specific aspect of a company: • The balance sheet provides an overview of a company’s assets, liabilities and shareholders’ equity (the amount of money that would be returned to shareholders if all of the company’s assets were liquidated and all of its debt was paid off) at a specific point in time. • The income statement provides an overview of
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revenues, expenses, net income and earnings per share over a period, such as a year. • The cash flow statement indicates how well a company is at generating cash to pay its debt obligations, fund its operating expenses and fund its investments. • The statement of shareholders’ equity summarises all owner investments and withdrawals from the company during a period. No one financial statement tells the complete story about a company’s financial position, and they are all related. For example, the changes in assets and liabilities on the balance sheet are also reflected in the revenues and expenses on the income statement, which result in the company’s gains or losses. Cash flows provide more information about cash assets listed on a balance sheet and are related, but not equivalent, to net income shown on the income statement. But which financial statement is the most important for investors? Personal Finance asked a number of well-known asset management companies which statement they would choose if, hypothetically speaking, they had to assess the merits of investing in a company’s share using only one of the four statements. The overwhelming majority of the managers said they believe the cash flow statement provides the clearest picture of a company’s economic – as opposed to its accounting – reality. Tim Acker, an investment analyst at Allan Gray, put it this way: “There’s a saying that revenue is vanity, profit is sanity, cash is reality. Accounting rules affect businesses in different ways, but, ultimately, a business needs to generate cash that can be paid to shareholders or reinvested in the business.” Seeiso Matlanyane, an analyst and portfolio manager at Prescient Investment Management, says: “Certain firms are more aggressive in their accounting than others, introducing a degree of subjectivity on the reported financial information – for instance, they may depreciate their assets
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PERSONAL FINANCE | 3 RD QUARTER 2020
relatively earlier on or recognise relatively higher provisions for bad debts than other companies. Their subjective choice of accounting treatment will have an impact on all the financial statements, least of which being the statement of cash flow. Cash flows are the most difficult to manipulate and hence provide the most objective financial information about a firm.” BlueAlpha says the cash flow statement is largely unaffected by accounting rules that can distort both the balance sheet and the income statement. For example, by writing down assets in periods of low returns, companies can make their accounting earnings appear artificially higher – without affecting the operations of the business. In this way, the income statement reflects lower depreciation and therefore higher earnings, with return metrics, such as return on equity, also appearing artificially higher. Likewise, the balance sheet can be distorted when companies spend a large amount of resources on human capital or brands. Unlike building new plant, these values are not generally capitalised on the balance sheet, despite being assets to the business – albeit in a less tangible way. Therefore, the balance sheet may appear “asset light”, whereas these costs have gone through the income statement, in turn lowering accounting earnings. A minority of the asset managers surveyed said the balance sheet was the best way to ascertain whether or not a company was a good investment. Werner Burger, portfolio manager: equity and multi-asset funds at Momentum Investment, says the balance sheet section contains a summary of the entire business, because it enables you to see the following: • The value of assets owned by the business. • How the assets are financed (amount of debt versus equity). • How productive the assets are in generating returns to service both debt and equity investors. • Cash flow generation and management (changes in working capital, liquidity of the business, and so on). Abdul Davids, a portfolio manager at Kagiso Asset Management, says the balance
sheet provides information on the book value or net worth of a company. It also provides information on the assets and liabilities of a company. “When investing in a company, it is imperative to know what you are buying and what liabilities you, as an investor, are taking on.” Franco Pretorius, the head of equity research at PSG Wealth, says asset managers need to guard against the risk of capital loss, and knowing the strength or weakness of a company’s balance sheet is essential when assessing this level of risk.
almost always better than lower ratios. A company’s ROE by itself is rather meaningless; it should be compared to the ratios of similar companies or to the companies in the same market sector. Investors can compare a company’s ROE with the return they could have earned by investing a bond or fixed-term bank savings.
Return on capital Like ROE, return on capital (ROC), or return on invested capital, is metric that measures the profitability of a business. The difference between the two ratios is that ROC takes into account shareholders’ equity and FINANCIAL RATIOS the total value of the debts owed by the Personal Finance then asked the asset company. managers which four financial ratios they Sanlam Private Wealth analyst Christiaan believed were the most useful for investors Bothma says: “There are a variety of when assessing whether to invest in a company. Clearly, as Allan Gray’s Acker says, definitions for this measure, but the one I prefer is the net operating profit after tax no single ratio, or set of ratios, will always divided by invested capital (equity plus be able to tell you whether you should debt, after subtracting cash on hand), since invest in a company. It is useful to look at many different ratios and indicators, as each it takes into account the return to all sources provides information about different aspects of capital (debt and equity). This measure should be compared to your weighted of the business. There are also important intangible qualities that cannot be captured average cost of capital (cost of equity and cost of debt weighted by contribution in ratios, such as the quality of a company’s to capital). The higher the gap between leadership. them, the faster the company can grow its earnings into the future, and the more you Return on equity want to own the business, all else being The most frequently mentioned ratio was equal.” return on equity (ROE), which measures the ability of a company to generate Price-to-earnings profits from its shareholders’ investments The well-known price-to-earnings (P/E) in the company. The higher the ROE, the ratio was one of the top ratios. To obtain a more efficient company’s management is company’s P/E ratio, divide its current share at generating income and growth from its price by its earnings (profits) per share. In equity financing. The formula for ROE is net income (or net simple terms, the P/E ratio indicates the rand amount an investor can expect to invest earnings) divided by shareholders’ equity, in a company in order to receive R1 of that expressed as a percentage. Net income is company’s earnings. This is why the P/E is sales less the cost of goods sold, selling, sometimes referred to as the price multiple: general and administrative expenses, it shows how much investors are willing to operating expenses, depreciation, interest, pay per rand of earnings. For example, if a taxes, and other expenses. Shareholders’ company is trading at a P/E multiple of 20, equity is assets minus liabilities on the an investor is willing to pay R20 for R1 of balance sheet. ROE calculates how much money is made current earnings. The P/E ratio helps investors to based on the investors’ investment in the determine the market value of a stock company, not the company’s investment in compared to the company’s earnings. assets or something else. Higher ratios are
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The P/E ratio shows what the market is willing to pay today for a stock based on its past or future earnings. A high P/E could mean that a stock’s price is high relative to earnings and possibly overvalued. Conversely, a low P/E might indicate that the current stock price is low relative to earnings. “Even though earnings can be a distorted measure at times, a P/E ratio remains the simplest and most widely used measure to consider what a company should be worth. This measure can be compared to a company’s history or to its peer group,” says Bothma. “I generally prefer using a forward PE (using a forecasted earnings measure), as the future is what matters most.”
company has paid all its expenses and capital expenditures (funds reinvested into the company). To obtain the free cash flow, go to the cash flow statement, find the item cash flow from operations (or “operating cash” or “net cash from operating activities”) and subtract the capital expenditure. The free cash flow yield compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by dividing the company’s free cash flow by its market capitalisation. “This ratio essentially shows how much a company could return to shareholders through a dividend or a share buy-back. This yield can be compared to the coupon yield offered on a government bond or the interest rate offered to you by the bank,” Bothma says. A high free cash flow yield means a company is generating enough cash to easily satisfy its debt and other obligations, including dividend payouts. If the free cash flow yield is low, it means investors aren't receiving a very good return on the money they’re investing in the company.
and debt to finance their operations, and knowing the amount of debt held by a company is useful in evaluating whether it can pay off its debts as they come due. “No investment decision can be made without considering the debt levels of a company – that is, whether the business is sustainable,” says Bothma.
Leverage ratios Two commonly used leverage ratios are: 1. The net debt-to-Ebitda (earnings before interest depreciation and amortisation) ratio, which measures how many years it would take for a company to pay back its debt using cash from operations. The formula is to divide the company’s longterm and short-term term by its earnings before interest, taxes, depreciation, and P/E to growth amortisation – these figures can be found A related metric is the price/earnings to in the financial statements. growth (PEG) ratio, which enhances the P/E Bothma says that the more stable a ratio by taking into account a company’s company’s cash flows, the higher the ratio expected earnings growth. The PEG ratio is can be, while, for a very cyclical business, favoured by investors who follow a growth you want this number to be low, he. It is investment style: they look for companies also important to consider the cost of debt, whose earnings are expected to increase at as the lower this cost, the higher the ratio an above-average rate compared to their can be. industry sector or the overall market. 2. The total debt to total assets ratio, which Cash conversion ratio The formula for calculating the PEG indicates the percentage of assets that are The cash conversion ratio indicates a ratio is the P/E divided by the earnings company’s ability to convert its profits into being financed with debt. The higher the growth rate. For example, Company A has hard cash, which is what pays its dividends. ratio, the greater the degree of leverage a P/E of 16, while Company B has a P/E of and financial risk. The formula is short-term This ratio is calculated by dividing the 20, so it seems that Company A is a more and long-term debt divided by current free cash flow by the operating profit attractive investment. However, Company and non-current assets on the company’s A is projected to growth its earnings by 8% of a company. “A high cash conversion balance sheet. a year for the next five years (PEG of 2), but ratio is a good indicator of a company’s A ratio equal to one means that the Company B’s earnings are expected to grow business quality and would attract a higher by 12% a year over the same period (PEG of valuation. A low cash conversion ratio could company owns the same amount of indicate a company’s investment in working liabilities as its assets. It indicates that the 1.6). Therefore, Company B is the cheaper company is highly leveraged. A ratio greater share once its earnings growth is taken into capital required to generate its profits, than one means the company owns more which places strain on the company’s account. balance sheet, resulting in a lower valuation liabilities than it does assets. It indicates that the company is extremely leveraged for the company,” Davids says. Free cash flow yield and highly risky to invest in or lend to. A Some of the asset managers surveyed The next two-most popular ratios are ratio of less than one means the company mentioned ratios that are difficult for derived from a company’s free cash flow, owns more assets than liabilities and can ordinary investors to calculate as the which is a subset of its cash flow. The cash meet its obligations by selling its assets if information is not readily available on flow is a measure of the amount of cash needed. The lower the debt to asset ratio, the financial statements, and so aren’t and cash equivalents (short-term the less risky the company. As with any discussed here. That said, some of the securities that can be converted into other ratio, it should be evaluated over time managers mentioned the importance of cash quickly) flowing into and out of a considering what are called leverage ratios. to access whether a company’s financial risk company’s bank accounts. Free cash flow is improving or deteriorating. Companies rely on a mixture of equity is the amount of cash left over after the
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WEALTH•INVESTMENT•PROSPERITY
THE PROMISE OF BONDS Nicholas Riemer and Chantal Marx explain why, especially during these turbulent times, government bonds should form part of your portfolio.
E
quity market instability and low cash interest rates have left savers and investors, both locally and abroad, taking another look at government bonds as a potential area of investment. Government bonds are a popular fixed income instrument; they are generally less volatile than equities and offer higher yields (interest rates) than cash. We look at how government bonds work and how to gain access to this asset class What is a government bond? A government bond is a debt instrument issued by a government to support state spending and obligations. Essentially an investor is lending money to the government and in return receiving interest on that loan. Government bonds are often considered low-risk investments since they are backed by national government. How do bonds work? When you buy a government bond, you lend the government a certain amount
of money for an agreed period. In return, you receive a set level of interest at regular periods, known as coupon payments. When the bond expires, you receive the original capital amount you lent to the government. Government bonds offer different yields based on the term of the investment. Typically, the longer the term of the bond, the higher the interest rate offered to investors. This type of bond is known as a “vanilla bond”. Governments also issue inflation-linked bonds, whereby the state pays interest linked to the inflation rate during the investment period instead of interest at a fixed, predetermined rate. Why invest in government bonds? Investors buy government bonds because they provide a predictable income stream in the form of regular payments. For investors with a lower risk appetite, bonds can act as an effective instrument to beat the cost of inflation and provide stable, measurable returns. When held to maturity, investors receive their capital back and
thus preserve capital over a fixed period. In times of market uncertainty bonds can also shelter investors from losses and market pullbacks, as they behave differently to the equity market (providing the benefit of diversification). Investing in bonds means understanding key bond terms: • Coupon: This is the interest payment to the bond holder. As bonds are fixed income instruments, the coupon will not change after acquiring the bond. • Maturity date: The day of bond expiration, and when the investor receives his or her capital back from government. • Face value: This is the amount the bond is worth when issued, also known as "par" value, and the amount you will receive when the bond expires. • Yield: This is a measure of interest that considers the bond's fluctuating changes in value. There are different ways to measure yield, but the simplest is the annual coupon of the bond divided by the current price. • Price: This is the amount the bond would
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WEALTH•INVESTMENT•PROSPERITY
currently cost on the secondary market. Several factors play into a bond's current price, including the perceived risk of lending money to government and yields on other instruments. The secondary market is where bonds are bought and sold prior to maturity. How can investors buy government bonds? SA government bonds are issued by the National Treasury. Usually, a large investment is required to buy bonds directly from Treasury (in what is referred to as a primary issuance), but there are various ways to buy bonds in the secondary market. You also have the option of buying retail savings bonds. Your options are: • Buying bonds directly through a stockbroker: SA government bonds trade on the JSE bond exchange and can be bought and sold between maturity dates through a stockbroker. Sometimes investors are able to buy bonds at prices lower than face value and then receive a higher yield than they would have received if they had bought the bonds directly from Treasury. • Bond exchange-traded funds (ETFs): Bond ETFs track a basket of South African government bonds with varying maturities and yields. Instead of receiving an income, however, the interest payments made by the government are reinvested in the index.
You can buy either a vanilla bond ETF like the Satrix SA Bond ETF or an inflationlinked bond ETF like the Ashburton ILBI ETF. You can even buy bonds issued by other governments through global bond ETFs. Bond ETFs are listed on the JSE and can be bought and sold easily through a stockbroker. • Bond unit trusts: Unit trust funds that invest in the bond market hold a wide range of South African government and even corporate bonds selected by professional investors. Unit trusts are another liquid investment vehicle, which means that you can enter and exit the fund easily. Bond unit trusts can be purchased through an investment platform or directly from an asset manager. • RSA Retail Savings Bonds: This is another direct way in which you can invest in SA government bonds. The minimum investment amount is R1 000. RSA Retail Bonds offer yields linked to SA government bonds, and are available with two-, threeor five-year fixed terms. You have a choice between vanilla bonds and inflationlinked retail bonds. Interest is payable semi-annually on set payment dates until maturity of the bond. These bonds can be acquired at the South African Post Office or online through https://secure.rsaretailbonds. gov.za. A major drawback of these bonds is that they cannot be sold in the secondary
market, so you are tied into the investment until maturity. How have bonds performed in the past? Over the last five years, bonds have performed better than equities but over the very long term they usually deliver weaker returns than the traditional growth asset classes of equities and listed property. It is also important to realise that we have seen strong recovery in bonds more recently and the price at which you buy or sell in the secondary market has an important impact on your returns experience. South African government bonds still offer a higher yield than other countries’ bonds – particularly in the developed world. Conversely, the government has been issuing more debt, and recent fiscal interventions to lessen the impact of Covid-19 will result in its debt burden increasing, thereby placing downward pressure on government bond prices as investors demand higher yields to invest. Regardless of current performance, bonds hold a diversification benefit and should form an important part of any investment portfolio. Nicholas Riemer is Head of Investment Education and Chantal Marx is Head of Research Insights at First National Bank.
TOTAL RETURNS OF THE FOUR MAIN ASSET CLASSES TO JUNE 8, 2020 YTD
1 Year
5 Years (pa)
10 Years (pa)
15 Years (pa)
SA Listed Property
-32.0%
-31.3%
-6.3%
5.9%
10.5%
JSE All Share Index
-3.5%
-2.3%
4.4%
10.9%
12.9%
All Bond Index
1.0%
6.6%
7.8%
8.4%
8.1%
Cash (STEFI)
2.9%
7.0%
7.2%
6.5%
7.3%
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HOW HAVE SMOOTHED BONUS PORTFOLIOS WEATHERED THE CRISIS? Smoothed bonus portfolios are designed to smooth out market volatility and provide capital protection. Solly Tsie looks at how they have fared over the past few months.
S
moothed bonus portfolios are
by life insurers that provide a guarantee on the money invested into the portfolio and the returns passed on to investors in the form of bonuses declared by the insurer. Sometimes these portfolios only provide a partial (less than 100 percent) guarantee. Generally, people who invest in smoothed bonus portfolios are conservative investors who expect to be shielded from negative returns, especially in times of market stress like we have experienced recently. The unexpected negative bonus declarations in April 2020 by Old Mutual and concerns around a number of
smoothed bonus portfolio funding levels dropping to as low as 80 percent and 85 percent in March 2020, raised questions as to whether these portfolios could continue to deliver on their expectations. This also begs the question, should future contributions from investors be directed elsewhere, while the funding levels are well below 100 percent? What can we expect from smoothed bonus portfolios in the next year or so? Graph 1 shows that there is a strong correlation between the funding level of a typical fully vesting smoothed bonus portfolio and the subsequent 12-month returns. When the funding level dropped below
100 percent, investment performance over the next 12 months was disappointing, even when compared to cash. This is because a smoothed bonus portfolio declares smaller bonuses when the funding level falls below 100 percent, in order to build up reserves and improve the funding level. The reduced funding levels as of late are expected to result in lower bonuses (even lower than cash returns) in smoothed bonus portfolios, at least for the next 12 months, even if investment markets recover. If I have invested in smoothed bonus portfolios, what should I do? The expected low future bonuses
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WEALTH•INVESTMENT•PROSPERITY
may cause some investors to consider switching out of smoothed bonus portfolios. However, investors need to be aware that insurers will impose a market value adjustment penalty on investors who switch out of smoothed bonus portfolios when the funding level is lower than 100 percent, unless this switch is
Graph 1
For example, if a smoothed bonus portfolio is 90 percent funded, an investor who switches out of the portfolio may be subject to a 10 percent market value adjustment. The penalty protects the investors who stay invested in the portfolio. If a large group of investors is allowed to withdraw from the smoothed bonus portfolio without the market value adjustment, this would result in a further deterioration of the funding level. for the market value adjustment to be waived includes a withdrawal from a retirement fund because of a termination of service or retirement, and monthly income withdrawals for pensioners with living annuities. There may also be special individual member switching conditions that allow for a very limited number of investment switches at full value out of a
Source: Retirement Fund Monitor.
Graph 2 ing
It is clear that most investors should therefore remain invested. However, there may be merit in portfolio for ongoing contributions until the funding levels recover. The decision on future contributions should be considered size of the contributions, the number of contributions) and the funding level of the relevant smoothed bonus portfolio. There may also be other constraints such as member administration processes that
30
Source: Retirement Fund Monitor. The smoothed bonus portfolio is represented by one of the major insurers' fully vesting smoothed bonus portfolio, which provides a 100% capital guarantee. The typical investment portfolio is represented by the average of the Wealth Creation portfolios as per the Retirement Fund Monitor. A Wealth Creation portfolio is a portfolio consisting mainly of growth assets such as shares and property, which may be appropriate for a young retirement fund member.
adopted for ongoing contributions in a retirement fund.
growth investment portfolio that has no smoothing of returns. The graph shows investment returns over rolling 12-month periods. The returns of the growth
Return profile of smoothed bonus portfolios Graph 2 shows the investment performance of a typical smoothed bonus portfolio compared with a
than those of a typical smoothed bonus portfolio. Additionally, the smoothed bonus portfolio would have protected capital in times of negative market performance.
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Note the investment returns in the smoothed bonus portfolio have not been negative over the period considered. bonus portfolio that makes it attractive to conservative investors. Recent performance of smoothed bonus portfolios The following table shows the investment
Level of Capital Guarantee 100%
Category: Guaranteed and Smoothed Bonus Portfolios
3 Months
1 Year
3 Years
5 Years
10 Years
Alexander Forbes FullVest
1.6%
5.9%
6.5%
7.3%
9.4%
Old Mutual CoreGrowth 100%
2.3%
7.4%
8.2%
8.4%
9.9%
Sanlam Monthly Bonus Portfolio
1.6%
6.8%
7.0%
7.9%
10.2%
SMM Vesting Fund
1.4%
6.1%
6.0%
7.2%
9.1%
Metropolitan MM Smooth Growth (G)
1.5%
3.9%
5.0%
7.1%
10.3%
Metropolitan MM Smooth Growth (L)
0.5%
1.4%
5.1%
11.5%
14.0%
Metropolitan Smooth Growth (G1)
1.5%
4.8%
5.2%
7.5%
10.7%
90%
Old Mutual CoreGrowth 90%
2.6%
8.5%
9.3%
9.5%
11.0%
80%
OMIGSA Absolute Stable Growth
1.4%
5.5%
6.5%
7.8%
10.8%
Sanlam Stable Bonus Portfolio
1.8%
7.5%
7.6%
8.4%
11.2%
50%
Sanlam Progressive Smooth Bonus Portfolio
1.8%
7.9%
-
-
-
OMIGSA Absolute Smooth Growth
1.5%
6.0%
7.0%
8.3%
11.3%
Average of Funds
1.6%
6.0%
6.7%
8.3%
10.7%
Median
1.5%
6.1%
6.5%
7.9%
10.7%
1.5%
4.6%
4.2%
5.2%
5.1%
Performance of multi-asset portfolios Average Wealth Creation
-13.7%
-9.3%
0.9%
2.8%
8.9%
Average Capital Preservation
-7.8%
-3.3%
3.6%
4.6%
8.0%
Source: Retirement Fund Monitor.
performance of a number of smoothed bonus portfolios in the market compared with the average return of aggressive multi-asset portfolios (wealth creation) and conservative multi-asset portfolios (capital preservation) in the Retirement Fund Monitor. The investment performance applies over various periods to 31 March 2020. smoothed bonus portfolios are doing their job well to protect investors’ capital in times of market stress. All the smoothed bonus portfolios included above have outperformed the average aggressive (wealth creation) and conservative (capital preservation) portfolios over all periods presented. growth and capital protection ability of these portfolios. Having said this, we need to consider the lag in the time it takes for the the poor performance in the market and the underlying assets they hold. Often bonuses are declared a month in advance. So the returns above do not
consider the drop in market values in March 2020. Recent developments in smoothed bonus portfolios In an unprecedented move, Old Mutual for April 2020 in their 50 percent and 80 percent capital guarantee portfolios in the Absolute Growth Portfolio (AGP) series. Although we would argue this move was unexpected, this practice is permitted in the terms and conditions of these partial capital guarantee. It is important to crisis that seems to be worse than the Global Financial Crisis of 2009. A negative bonus was declared to improve the funding level in the portfolio. Based on information Simeka received from Old Mutual, the funding level of the AGP series at the time of writing was around 95 percent. The stronger funding level was aided by the strong performance in investment markets in bonus declaration.
Examples of the additional measures • Opening new pools for new investor contributions to start at 100 percent funding levels and be able to declare better bonuses compared to older pools with lower funding levels. • Temporarily closing the portfolios to new investors until a later stage when insurers will assess the environment for further action. • Closely monitoring the smoothed bonus portfolios and taking prudent measures such as declaring lower bonuses. Conclusion Smoothed bonus portfolios have been around for a long time. We believe these portfolios remain appropriate to some investors, particularly those who are close to retirement, in retirement, or conservative in nature. bonus portfolios, as they provide capital growth to investors via their underlying market-linked exposure as well as explicit capital protection through the smoothing of returns. These portfolios meet an investor’s need for growth asset exposure at a lower level of risk, although this comes at a price (capital premium). It is important that investors choose a portfolio that meets their needs, and that they understand the fees and charges levied. For example, a smoothed bonus portfolio that provides a partial guarantee will have a lower capital charge, but there is a risk that the portfolio may experience a negative return in times of market stress. These portfolios have pitfalls that should be understood by investors. At the end of the day, the insurer manages a portfolio of assets for investors and smooths the performance over the long term by holding back on returns in good times and passing these returns on to investors in troubled investment times. Some may argue this practice is unfair, especially those who exit after periods of good market performance, as they do not the insurer holds back on returns to build reserves.
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WEALTH•INVESTMENT•PROSPERITY
In times of deep stress in investment markets, as we experienced in the Global Financial Crisis of 2008/9 and the Covid19 pandemic crisis in 2020, the value of the underlying assets managed by the insurer can suddenly drop, resulting in a situation where the smoothed bonus portfolios are underfunded. Investors can expect that returns will be lower than cash in the short term (notwithstanding the reduction in interest rates), as insurers work hard to build up reserves in these portfolios. Solly Tsie is Head of Research: Investment Consulting at Simeka Consultants and Actuaries.
• Smoothed bonus portfolios hold back returns in times of strong performance and allocate these returns in times of poor performance. This practice is known as smoothing of investment returns. Definition • They provide explicit protection, whereas absolute return portfolios that are often considered as an alternative only provide implicit protection.
Level of capital guarantee
• 100% capital guarantee means that 100% of the money invested and bonuses declared by the insurer are guaranteed. • When the guarantee level is less than 100%, say 80%, the insurer has the right to declare a negative bonus • The capital charge is a fee paid by investors for enjoying a level of capital guarantee.
Capital charge • The capital charges on fully vesting portfolios are generally higher than on partially vesting portfolios.
Fully vs partially vesting
• Fully vesting portfolios mean that if the investor disinvests from a smoothed bonus portfolio, they are eligible to receive all of the capital invested and bonuses declared. • Partially vesting portfolios mean that when insurers declare bonuses they will state how much of the declared bonus is vested and how much is non-vested. The non-vested portion is not guaranteed and the
Book value vs market value
• The book value is the sum of initial capital invested, ongoing contributions and declared bonuses. • The market value is the value of the underlying investments in a smoothed bonus portfolio.
Funding level
• Funding level is the ratio of market value to book value. • If the market value is greater than the book value, a smoothed bonus portfolio is said to be fully funded or overfunded. • If the market value is lower than the book value a smoothed bonus portfolio is said to be underfunded – the value of the assets is less than the book value guaranteed. • Investors who involuntarily have to disinvest from the portfolios – e.g. due to the need to receive retirement
Disinvesting
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receive the book value. • Investors who disinvest from a smoothed bonus portfolio due to a voluntary action (such as switching from one portfolio to another) generally receive the lower of book value and market value. • If smoothed bonus portfolios are underfunded, voluntary disinvestments will lead to proceeds lower than book value.
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FAMILY PORTFOLIO T
he management of your family’s investment portfolio should incorporate many factors –
collective objectives. If preserving the long-term health of your family’s legacy is your aim, it makes no sense doing it any other way.
An investment strategy with no consideration of wider family issues makes no sense; a broad approach is required to preserve your legacy over the long term, writes Eva Sheppard
are the less tangible risks. Indeed, according to Stonehage Fleming’s 2018 research report Four Pillars
potential consequences. Failure to engage or train the next generation
the greatest threats to long-term family wealth
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WEALTH•INVESTMENT•PROSPERITY
the same paper, with lack of leadership fourth, and family disputes beating lack of planning to the top spot. The fact that these risks loom large for wealthy families comes as no surprise to those having regular discussions with clients. However, with the support of their investment managers, families can adopt a more structured, detailed approach to setting wider-ranging long-term objectives, both The broader wealth of a family can usually be broken down into four elements, what we at Stonehage Fleming intellectual, cultural, and social capital. What has become clear is that a failure to consider fully the other three risks securing It is inadvisable therefore to develop
changes in the business with regard to policy, geographic exposure or even market sentiment. Where a family business is going through major changes, such as an acquisition, investment or exposure
addressing the wider family issues, in particular agreeing on a purpose for the wealth, but also establishing a framework
manager needs to respond strategically. The investment manager should avoid replicating any risks taken in the business
risk.
the investment portfolio.
them manage their lives and their wealth “in the round”. They know their plans, aspirations, their hopes and fears. Because of this, their relationship managers have
Family values In articulating a purpose for their wealth,
and possess the skills to fully understand a family context and deliver a tailored investment approach. Performance optimisation and mainstream investment strategies are
Purpose Wealthy families have come to realise wealth. It helps them make decisions included. Recently, many corporates have also moved away from serving shareholder interests alone towards honouring their obligations to a wider group of stakeholders such as their local communities. Where wealth is concentrated in a
34
of their identity. Indeed, they may see a business or heritage asset with their associated responsibilities as a means of education for the next generation – more instructive perhaps than handing down liquid assets with no purpose attached. Purpose needs careful ongoing consideration within the context of the construction of an investment portfolio. In the case of a business, it means
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family leaders has a direct bearing on investment management. Some, who have created their own wealth in and experience to pass to their family and to the wider community, using their “intellectual capital” to support family objectives. Those with specialist knowledge might put it to good use through active involvement in the management of certain elements of their investment portfolio, usually limited to a proportion of the portfolio, agreed with their investment manager, with performance and returns calculated separately. Risk management A traditional investment manager’s approach to risk is often diametrically opposed to that of entrepreneurs, who tend to manage risk by concentrating investment in sectors they understand well. In contrast, investment managers mitigate risk by diversifying across a wide range of sectors, of which they have limited direct knowledge. Ideally, an investment manager will
values, or "cultural capital". By acquainting themselves with these, an investment manager can start to understand and accommodate a family’s appetite for sustainable investment.
of the entrepreneur, the next generation of the family and the conventional investment management approach. This will often involve the gradual realisation of directly held business interests, managed alongside reinvestment into a
environmental, social and governance (ESG) investment solutions. Others may want to use their wealth for impact investing, where positive, social or environmental impacts are measurable
investment management of substantial family wealth. It requires a willingness to embrace the active involvement of several family members and that the manager
Equally, investment managers may be able to source direct investment opportunities for their clients who want a more direct route to investing in a cause that matches their own values, or recommend investing into likeminded sectors, handpicked with the family. They may decide that a combination of all three is desirable.
standard “model” portfolio. Strong relationships too are essential to operating on a partnership or “co-pilot” basis. Joint decisions need to happen based on the frank exchange of views and the combination of both business and investment knowledge, which is something not all wealth managers can provide.
Leadership Selecting and developing competent
Eva Sheppard is a partner at global family office Stonehage Fleming.
WEALTH•INVESTMENT•PROSPERITY
A MULTI-PRONGED APPROACH TO LONGEVITY AND SEQUENCE RISKS Paul Wilson and Lizelle Steyn say the two most significant risks to your retirement income can be mitigated to a large extent through a managed, triple-faceted investment strategy.
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ccording to the most recent Sanlam Benchmark Symposium survey, 51 percent of pensioners can’t make ends meet. About a third don’t have enough funds to cover their medical expenses. Also, about a third entered retirement in debt, and more than half still have to support adult dependants. As a result of these financial pressures, 61 percent simply can’t afford to save for an emergency fund, leaving them unprepared for unexpected expenses. These statistics show that for many South Africans, retirement is a constant battle for survival.
Longevity Longevity is only a blessing when it’s well planned for. Retirees have a choice between purchasing a living annuity and a guaranteed annuity upon retirement. In this article we assume the choice made by the retiree is to take control of their own retirement capital by purchasing a living annuity. When doing so it’s pivotal that the capital lasts at least as long as their remaining lifespan. How long that time-frame would need to be is the million-dollar question and this is what is known as longevity risk. Most people look
towards their parents’ and grandparents’ lifespan when estimating how long their money needs to last. But unprecedented advances in the medical sciences over the past decades and improved remedial care have resulted in significantly improved life expectancy. According to Sanlam’s actuarial team, a man born in 1967 can expect to live to age 91. A woman will live even longer. In the light of increased longevity, how then do we make retirement savings last long enough? One approach is to manage your living annuity in such a way that you only draw the
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Sequence risk Sequence risk is the risk of timing your retirement badly. Above we refer to investment returns needing to average 6.5 percent after adjusting for inflation. In reality, returns can range from exuberantly positive to dismally negative from one year to another. In the decades leading up to your retirement you can ‘absorb’ the blow of years of negative or stagnant return years and wait for years with good returns to make up investment losses. In retirement, however, every year of poor investment performance is felt immediately. Investment performance in the year in which you start your retirement journey can make a significant difference to your income
income portion and keep the capital intact. Bear in mind, though, that the remaining capital base after drawdowns would need to grow by inflation each year, for your income to sustain your lifestyle in the face of inflation eroding your purchasing power over the years. If, according to Asisa, the average living annuitant draws 6.5 percent of their investment value every year, this means that their investment returns would need to average a rate equal to inflation plus 6.5 percent per year after fees. Realistically, your standard South African balanced fund would not be up to this challenge. 36
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over your whole retirement. Two retirees earning the same average return can see their capital behave very differently when they enter retirement at different phases of the market cycle. This phenomenon is known as sequence risk. We illustrate with an example below. Sequence risk case study Let’s assume eight investors each have R1 000 of retirement capital and each withdraws five percent per year, growing by inflation. For all the investors, the average annual return is six percent. How much would their remaining capital be worth after 10 years, taking into account the different return experiences tabled below?
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Dean, who had a stellar first few years in retirement but negative and sub-inflation returns later in the 10-year period, ended up with more than his initial capital amount after 10 years. In comparison, Shawn, who had pedestrian and slightly negative returns in his early retirement and excellent returns later in the 10-year period, saw a substantial chunk of his capital being eroded over 10 years. In fact, despite both averaging six percent per year, Shawn’s sequence of returns left him with only three-quarters of Dean’s remaining capital amount, and hence only three-quarters of Dean’s retirement income after 10 years. The negative impact of sequence risk can be substantial. Investors retiring at the start of 2015, 2016 and 2018 would have had a real-world experience of Shawn’s scenario, meaning they would have needed much higher than average future returns after those years to take their capital balance back to the initial amount and sustain their required retirement income level.
retiree’s portfolio by cutting off the negative returns within the return distribution. 2. Smoothed bonus funds A smoothed bonus fund is another tool that can reduce volatility and sequence risk in a living annuity portfolio. By holding back excess returns in good years, and releasing them back to investors in years when markets perform poorly, the investor has a more stable return experience in the form of smooth bonus declarations on a year-byyear basis. This is an excellent tool in trying to achieve asymmetry in returns. (See “How have smoothed bonus funds weathered the crisis?”, page 30)
3. Alternative assets Even when smoothed, though, it’s a challenge to achieve the after-inflation return that retirees require to enable them to use as little as possible of their capital. A living annuity portfolio therefore needs a third step – return boosters. Fortunately, there is an arsenal of alternative assets that can do this job: hedge funds, private equity, Tools to combat longevity and mezzanine debt, unlisted credit and unlisted sequence risk property, to name a few. These are expected As mentioned, the standard balanced to generate higher returns as a result fund – in which most living annuitants are of harvesting of the illiquidity premium invested – does not have what it takes to (the premium yield that less liquid assets deliver large enough after-inflation returns typically fetch). Alternative strategies are on a consistent year-after-year basis for used extensively in the institutional space, the drawn-down levels that South African retirees need. Fortunately, there are portfolio but due to accessibility issues have not yet been made available to retail investors as an construction tools available that, to an option to utilise. This is something we are extent, can mitigate against longevity and aiming to change, as these investments can sequence risk in retirement by trying to definitely form a crucial part of a solution achieve an asymmetrical distribution of in order to assist investors in reducing returns using the following strategies: 1) absolute return funds, 2) smoothed bonus sequencing and longevity risks. funds and 3) alternative assets. To conclude, new thinking is required to solve the investment-linked living annuity 1. Absolute return funds problem for retirees. It’s time to use the full The first step to narrow the wide range of range of appropriate portfolio construction possible returns in an investment-linked tools available to reduce investors’ longevity living annuity is to choose a fund with an and sequence risks, and provide the golden absolute return focus. The asymmetric retirement solution: a sufficient and stable nature of these funds mean they capture less of market downturns than conventional retirement income for life. balanced funds, while aiming to still capture Paul Wilson is the chief investment officer of a decent amount of bull market runs. When an absolute return fund does what it says on Sanlam Multi Manager and Lizelle Steyn is an investor communication specialist. the label, it reduces the sequence risk of a
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PANDEMIC ALERT:
ARE YOUR AFFAIRS T Deon Beachen reminds us of our estate planning obligations to our loved ones, after the pandemic has reminded us of our mortality. he Covid-19 pandemic, which has disrupted lives and continues to wreak havoc on the global economy, has seen a sudden and dramatic shift in the way we live. Previously uncommon concepts and practices such as social distancing, lockdown, quarantine and self-isolation have now rapidly become part of our daily parlance. Unsurprisingly, in view of the swift rise of death rates associated with the pandemic, many people are being reminded of their own mortality. Intensified by the fact that prominent people such as Prince Charles and Boris Johnson have contracted the virus, it is clear that nobody is exempt from the risks posed by the pandemic. The primary risk, undoubtedly, is a matter of health. Parallel, however, there are financial risks, many of which can be severe and extremely difficult to manage. Consequently, it is understandable that many fiduciary practitioners around the world have observed an increase in the demand for wills, as well as estate planning. In view of this increase in the demand for the services of fiduciary practitioners, what follows is a brief explanation of the significance of proper estate planning and the execution of a valid and well-drafted will and how they can be employed to benefit those that you care for the most. Also included below are a few questions and comments that are aimed at assisting readers to gauge their specific needs.
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Estate planning involves the arrangement and implementation of legal and administrative processes to ensure that your interests and those you care for are protected during your lifetime and after your death. Various factors are taken into account by a fiduciary practitioner when considering an individual’s needs and requirements. Of primary importance: a well-constructed will Arguably, the most fundamental component of an estate plan is the preparation and execution of a well-considered will. A good will must be drafted to cater for the specific objectives and requirements of the relevant individual and, accordingly, the use of templates should be avoided or, at a minimum, used with extreme caution. It is also vital that a will accurately records the intention of the relevant individual and that it has legal certainty. An experienced fiduciary practitioner will be able to highlight any areas of concern and guide the individual through the process of preparing a good and legally defensible will. Fiduciary practitioners of the sort mentioned above are frequently highly qualified lawyers and their field of practice is commonly known as private client law. Many are members of the Fiduciary Institute of Southern Africa (FISA) which sets a high bar for professional fiduciary standards and whose members are bound by a code of ethics. Private client lawyers have specialised knowledge in succession laws and a good working knowledge of the
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IN ORDER? law across other disciplines. They are able to assess the feasibility and limitations of structures and mechanisms that can be used to tailor and implement an estate plan that will work well for the particular individual. Although an unexpected and truly unpleasant event is the impetus behind this article, it is hoped that the points conveyed may help individuals to avoid the negative consequences of poor estate planning. In that regard, below are various questions and considerations that should help readers to structure their thinking on the topic. • Do you have an up-to-date will? If not, have you considered the repercussions of dying without one? In a few cases, experience has shown that it might have been more efficient, administratively, for the individual to have died without a will that was badly drafted. Although quite simple and straightforward, the requirements for the valid execution of a will should not be overlooked as it is not uncommon for a will being declared invalid for failing to adhere to the relevant legal requirements. • Is your will tailored to your specific asset base? For example, should you have a separate will covering your offshore assets? • Do the provisions of your will align with the provisions of your residual heir, for example, in the case of a trust that is to inherit your estate? Some trusts provide that the trustees should terminate the trust a few months after the death of the founder which may have an effect contrary to the one that you desire. • Consider any declarations and revocations
with a view to ensuring that multiple wills do not inadvertently revoke one another. • Do the executors and trustees that you have appointed have appropriate experience and knowledge to carry out your directions and act in your best interests? • Are there any vague, imprecise or ambiguous provisions in your will? Does the document, where applicable, seek to create a usus (a right to use the property of another for one’s own needs but not for profit), a habitatio (a right to live in the property of another but the holder may lease the property), a full fideicommissum (the provision for the asset to be passed successively but where the asset may not be alienated), or a fideicommissum residui (where up to three-quarters of the asset may be disposed of by the heir but onequarter must pass to the ultimate heir)? As expressed, the rights of the parties associated with the different mechanisms can differ considerably. • Where conditions are imposed in a will, consider the legal validity of those conditions and the repercussions of the condition being invalid. If the condition was invalid, the beneficiary could inherit the subject matter of the bequest free of the condition. • Even conditions that are legally valid, can, at times, be notoriously difficult to execute practically. Consider the practical implications of conditions attached to bequests. • What will be the costs and timeframe in winding-up your estate? Are sound financial
provisioning and other mechanisms in place to alleviate the administrative and potential financial burden on those you care for? Failing to ensure sufficient liquidity in an estate to settle debts, meet tax obligations and address financial obligations can lead to forced sales and auctions of your assets. • Does your inheritance plan clearly include your chosen beneficiaries, while excluding any undesirable but potential beneficiaries? It should be noted that the financial and emotional costs involved in inheritancerelated litigation can be particularly high. In the same vein that social distancing and heightened hygiene are steps that you can take to avoid Covid-19, there are steps that you can take to mitigate the harsh realities of poor estate planning and an inappropriate will. Depending on your answers to the considerations above, it may be in the best interests of those that you care for to revisit the actions that you have taken so far and, to the extent that you have not yet taken any action, the old adage of “there is no time like the present” surely applies in the light of the current pandemic. Deon Beachen is Director: Private Clients at ENSAfrica and a member of the Fiduciary Institute of Southern Africa.
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ENDING A TRUST:
A WINDOW OF OPPORTUNITY? The distribution of assets on the termination of a trust triggers capital gains tax, writes Nico Botha.
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hen a trust no longer serves its purpose or its assets have been distributed to the beneficiaries, there are several important aspects to consider. The distribution will trigger a capital gains tax (CGT) event. The question is what the difference is between the market value of certain assets and their base cost. Any positive difference will be subject to CGT. The next question is in whose hands the capital gain will vest as there is a material difference between the tax inclusion rate for the trust and that for individuals. The result of this difference is that a trust pays CGT at a flat rate of 36 percent of the taxable gain, while the rate for individuals varies from 7.2 percent to 18 percent of the taxable gain, depending on the individual’s marginal tax rate. From a tax point of view, it would make sense therefore to extract your family home or other fixed property by way of a distribution to a trust beneficiary. No transfer duty will have to be paid on such a distribution. What to do The first step is to make sure that the trust deed provides the necessary powers for early termination and whether any capital gain can be vested. You need to start with the constitution of the trust, namely with the trust deed.
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The next step is to calculate the position as regards potential CGT. Here Covid-19 may have provided you with an unintended benefit. The value of equities has declined materially especially if the effective date of the distribution was around the end of March 2020. CGT may be negligible. The net asset value of any holding you may have in a private company as determined by your auditor may also be such that any capital gain may now be little or nil. Covid-19 has also had a negative impact on the property market. There seems to be an oversupply of properties with some children having to move in with their parents as they have lost their jobs. Many founders of trusts have been affected by Section 7C of the Income Tax Act which specifically deals with interest free- or low-interest loans to trusts. The aim of Section 7C is to prevent the estate duty avoidance that could result when a person transfers a growth asset to a trust, in return for a fixed loan that does not grow in value, because no interest is charged on the loan. If Section 7C is a problem for you, now may be the time to reconsider the merits of having a trust, as the window of opportunity will not be too long as markets show signs of recovering, albeit slowly. De-registration of the trust Note that once a trust has been distributed
it is not the end of the process. In order to de-register the trust with the SA Revenue Service you need to first de-register it with the Master of the High Court. The Master has its own requirements for this. Until you attend to this de-registration with the Master you will have to continue submitting returns to SARS, although they may be nil returns. Furthermore, you will continue to have to pay your tax practitioner until no more returns are required. Bear in mind that terminating a trust requires the same attention as when you started it. It must be done with the necessary skill and not in isolation of your estate planning – for example, how does it affect your will? A fiduciary expert can assist you with terminating a trust properly and does not have to be one of the existing trustees. Just a final word on this – before you decide to terminate your trust, the most important question ito weigh up is whether you should keep your trust for the principal reasons for which it was probably set up, which is the safeguarding of assets from one generation to the next and the protection of beneficiaries. Nico Botha is Director ST&T Executors and Trustees. He is a member of the Fiduciary Institute of Southern Africa and a certified Fiduciary Practitioner of South Africa.
HEALTH CHECK FOR THE WILLS ACT The lockdown restrictions have made it almost impossible to sign a will.
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by the Covid-19 crisis, and estate planning is no exception – especially the execution of wills. While the exact rules for the execution of wills vary from jurisdiction to jurisdiction, the pandemic confronted all with the same problem: complying with rules of formality while adhering to lockdown restrictions.
the execution of the wills, colloquially referred to as the ‘signing’ of the will, has presented a greater obstacle.” This, Jacobs notes, is because the minimum legal requirements for validity include that the will must be signed by the testator in the presence of two witnesses. “Here lies the nub of the
Dekker Hofmeyr’s trusts and estates practice, notes that while some countries were quick and decisive in dealing with the issue – promulgating interim legislation and granting concessions to relax the requirements in respect of signing – no such steps were taken in South Africa. “Despite the precautions and restrictions of movement placed on individuals, most practitioners have – with
of individuals outside the circle of their immediate family during the lockdown. To complicate matters, family members may not be suitable witnesses, because section 4A of the Wills Act determines that a
to give and take instructions, and even prepare and produce wills. However,
Physical solutions These options consist of variations of a
from a will if they signed it as a witness.” A number of solutions have been proposed to this problem, which Jacobs says can be divided into three approaches:
plan where participants are spaced far enough apart to comply with health concerns and regulations, but close enough to be able to see each other and sign the document. Further precautions between the parties, thereby further limiting physical presence while not compromising visual sight, and staggering the signing events into three This solution, however, requires all parties to be present at each of the three signings, making it rather arduous. Virtual solutions Such solutions suggest that the testator and thereafter each of the witnesses sign the document in their own home with the aid of technology, such as Skype, Facetime or Zoom. Because the same document must be signed, this process must also be staggered, with the added logistical requirement of getting the
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same document to the three venues after the lapse of a certain time. However, the fact that the actual physical document would not simultaneously be in all the parties’ presence may dilute the evidentiary purpose of execution. In this instance then, the virtual world may not prove to be the solution it has in other spheres. Post-event condonation In certain circumstances, the testator may have had no option but to knowingly leave a document that does not – even on the face of it – satisfy the mandatory requirements for validity. This would typically arise where there were no witnesses or only one witness available, or where only members of the same household (who are also named witnesses. testator, in anticipation of a challenge, 42
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circumstances of the execution, explaining why the formalities were not complied with, while unequivocally reiterating his intention that, despite these inadequacies, he intends the document to be his will. Our law does not allow for informal validation, nor can the Master of the High Court pardon an irregular will, and therefore such a question would have to be brought before a High Court to adjudicate. This solution is thus premised on the relief provision set out in section 2(3) of the Wills Act – a condonation provision introduced into our law by the Testamentary Amendment Act of 1992. A call for legislative reform While there are still some testators in self-enforced isolation and hesitant to have outside exposure who continue to grapple with this problem, Jacobs notes that the recent relaxation of the lockdown
restrictions alleviates many of the obstacles for the vast majority of citizens. Nevertheless, he believes that the testamentary issues presented by Covid-19 should hopefully act as a catalyst for the legislature to reconsider the formalities set out in parts of the Wills Act. “Although this reprieve is very welcome, it will not save would-be experiencing these same conundrums in the future. Having slowly regained some normalcy in our lives, none of us wants to consider the possibility of a resurgence of the virus, future viruses or other catastrophes, but such events would re-expose the issues and limitations that Covid-19 revealed in our legislation. "Our legislature should therefore take the opportunity to reconsider the Wills Act in the quiet after the storm and not in the urgency of the next one,” Jacobs says. Supplied by Cliffe Dekker Hofmeyr.
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PROTECTION OF PERSONAL INFORMATION LAWS KICK IN Legislation years in the making, with which businesses must comply by July 2021, will severely restrict what they can do with such basic personal details as your email address. While to the benefit of consumers, the obligations on companies are onerous and may be costly to implement, writes Martin Hesse.
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he Protection of Personal Information Act (POPI), which was signed into law seven years ago in 2013, came fully into effect (with the exception of two sections) on 1 July, after President Cyril Ramaphosa gave the go-ahead for its implementation. Companies and other organisations handling your personal information have a year to comply with the Act. Lize de la Harpe, legal adviser at Glacier by Sanlam, says that, in essence, POPI gives effect to section 14 of the Constitution, which says that everyone has the right to privacy. “POPI regulates, in harmony with international standards, the processing of personal information by public and private bodies in a manner that gives effect to the right to privacy, subject to justifiable limitations that are aimed at protecting
other rights and important interests,” De la Harpe says. “Personal information” refers to information relating to an identifiable, living natural person (and where applicable, a juristic person), including your gender, marital status, age, ID number, email address, telephone number and physical address. The Act also makes provision for “special personal information”, which is information of a more sensitive nature, such as that concerning children, your religious affiliation, race or ethnic background, trade union membership, political affiliation, medical and genetic information and criminal record. A higher degree of protection is given to this special information. The “processing” of personal information
basically refers to anything the organisation can do with it, from receiving, storing, updating and disseminating it, through to erasing or destroying it. De la Harpe says the Act also provides for the establishment of a regulator, known as the Information Regulator, who will monitor and enforce compliance and deal with complaints from the public. Conditions for processing your personal information include the following (with certain exceptions): • The information must be collected from you, with your consent; • It must be done for a specific purpose, must be fit for purpose (in other words, the demands cannot be excessive) and must be kept only for as long as it serves that purpose; • You have the right to know of anything the
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organisation does with your information and the identity of third parties who have access to it; • You may request the organisation to correct or delete information that is inaccurate, irrelevant, excessive, out of date, incomplete, misleading or obtained unlawfully; and •The information must be kept as secure as possible, with the organisation obliged to take precautions against foreseen internal and external risks. Both you and the Information Regulator must be informed of any data breaches that compromise your privacy. Companies must not only comply with POPI with regard to their clients; they must also comply with regard to their employees. In other words, it is not only companies you deal with as a customer that must protect your personal information; it is your employer too. In a recent article on the subject, Ahmore Burger-Smidt, Jacques van Wyk and Bradley Workman-Davies at Werksmans Attorneys point out that employers need to ensure that they comply with POPI regarding the processing of their employees’, customers’ and service providers’ information. “It is also important that their employees are equally aware of, and comply with, these obligations when processing any such information on behalf of the employer,” they say. Burger-Smidt, Van Wyk, and WorkmanDavies say it is important that adequate provisions be inserted into employment contracts and that workplace policies and procedures are implemented to ensure compliance. These should include: • The designation of an information officer; • Implementing procedures that ensure information is processed lawfully, in accordance with the conditions provided for in the legislation; • Obtaining consent from employees for the processing of their personal information; • Providing training and information to
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human resources practitioners as well as employees in order to ensure that information is processed lawfully and that employees, as “data subjects” , are aware of their rights; • Putting in place measures to ensure the processing of "special personal information" is lawful; • Dealing with any cross-border processing of information; and • Implementing procedures to address and deal with any complaints from, among others, employees regarding the processing of their personal information.
profiles; 3. Employment agreements; and 4. Service level agreements. Fatima Ameer-Mia, a director in Cliffe Dekker Hofmeyr’s technology, media and telecommunications practice, says a company should have a tailor-made POPI policy. “This is essentially a privacy policy which describes how an organisation collects, uses, stores, processes, and shares personal information of its data subjects." An organisation’s POPI policy may be embedded on its website (where applicable) or included in contractual arrangements with suppliers and customers. The role of a company’s information officer – who is responsible for the lawful processing of personal information – has also expanded. Kendall Keanly, a director in the law firm’s corporate and commercial practice, says: “The information officer’s role within an organisation is now not only governed by the provisions of the Promotion of Access to Information Act of 2000 (PAIA), but also POPI, which requires the drafting of a Where to start for businesses? From the collecting and storing of customer compliance framework, attending to any data and employee data, to direct marketing personal information impact assessment, and e-commerce, POPI will have far-reaching and providing internal POPI awareness sessions.” implications for businesses. Keanly says companies are, however, Justine Krige, a director in the corporate entitled to appoint as many deputy and commercial practice at law firm Cliffe information officers as may be necessary to Dekker Hofmeyr, notes that it is almost perform these duties. impossible to do business these days He says companies face stiff penalties for without collecting the personal information non-compliance come 1 July 2021. of customers, suppliers and employees. “For business owners, contravention “The wide definition of personal information includes any data or information of POPI could result in far-reaching sanctions, including the imposition of fines, that can be used to identify a person; from imprisonment for a period of 12 months to physical descriptors and contact details, to personal history, opinions and preferences,” 10 years and/or a damages claim by the data subject.” Krige says. This information is collected in many ways, she says, but there are generally four key areas for businesses to be aware of: This article first appeared in an edited version in the Personal Finance weekend newspaper 1. Market research via direct marketing; supplement on 4 July 2020. 2. Online contact forms, browsing and
“For compliance, it is critical to ensure that the requisite approvals are in place from data subjects in all of these areas,” Krige says.
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REINING IN BIG DATA
will not misuse or unlawfully disseminate your personal information under the new legislation, it will not prevent the The digital age has seen an explosion of consumer data in cyberspace – much of it misuse of your data by hackers and cybercriminals. anonymous but a great deal that has your Wayne Mann, director of group risk at name on it – which is used for marketing, The Unlimited, a company that markets a among other things. While it may be variety of short-term insurance products unrealistic to expect POPI to counter this via electronic marketing, believes that global phenomenon, it does give you while POPI addresses the responsible and the right to ask a marketing company, for example, which sends promotional content secure processing of data, it will negatively to your email address, where the company impact smaller businesses. “While larger corporates will, in all obtained your contact details. likelihood, be able to absorb the cost Christopher O’Flaherty, an IT analyst at of compliance and have the resources BDO Financial Services, writes in a blog: necessary to implement POPI’s “Companies use and abuse data, stealing requirements, the additional cost burden and sharing your data as they please. is likely to cripple many smaller businesses. Cambridge Analytica used people’s data Their only option will be to pass the cost to conduct trend analysis and determine how people would vote in the 2016 Trump of compliance onto their customers, which presidential campaign in the United States may compromise the affordability of their and in the Brexit referendum in the United products or services and ultimately, the sustainability of their businesses." Kingdom.” But it’s not just the cost implications O’Flaherty points out that while it may that are sounding the alarm bells for small be expected that law-abiding companies
businesses, Mann says. “POPI will also impact their ability to market cost-effectively – particularly those businesses that depend on electronic marketing. “Imagine a small company that relies on emailing monthly specials to its 10 000-strong database, which, in turn, generates sufficient revenue to sustain the business. POPI will outlaw this form of electronic marketing unless the people on their database have ‘opted in’, or given their consent to be marketed to in this fashion. Not only does obtaining consent come at a cost; these businesses can also expect their target markets to contract.” Mann says that currently, under the Consumer Protection Act, all electronic marketing in South Africa is “opt out” – consumers can pre-emptively block marketing or demand that a company discontinues marketing to them. “The obvious question is why the change from opt out under the CPA to opt in under POPI?” he says.
BANKS AND SARS
• The bank being required by law to report tax-related information it holds to SARS; and • SARS being required to obtain your personal information to perform its legal obligations. “To ensure that information is transferred securely, a data-sharing agreement may be entered into between SARS and the banks regarding the transfer of all clients' data for the execution of auto-assessments,” she says.
With the South African Revenue Service (SARS) moving to auto-assessments, it will need to source taxpayers’ personal information from banks. How will this work in such a way that there is POPI compliance? Monique Jefferson, director of law firm DLA Piper South Africa, says the Act does not seek to create barriers for the sharing of personal information; rather the
objective is to ensure protection against unauthorised access. “Responsible parties may process personal information as long as there is an appropriate justification in law,” Jefferson says. Jefferson says the sharing of your personal information in this instance can be justified by: • Your consent to your bank sharing your personal information with SARS or any other specified third party;
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As m wor ore and king from more So ut hom e, Jo h Afric ans on adva ntag Chong adjust to e fro e m a xplains the new tax p w ersp hy it m normal ecti ve. ay be to of your
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working hours are spent away
calculation of the square metres of the
you have less than 50 percent of remuneration as variable payments, you can still claim
with the same ratio applied to expenses such as rates and interest, will also need to be submitted.
spend more than 50 percent of working hours working from home. Lockdown and beyond The lockdown has demonstrated to employees and their employers that remote working arrangements can work for you to continue working for two or
T
here are very limited circumstances when salaried employees are able to claim deductions for expenses incurred in providing services to an employer. Travel expenses from home to the employer's Expenses incurred in maintaining a home
the lockdown has eased. With the easing of lockdown, employers are requiring their employees to return to work for a limited number of days in a week on a shift or teams basis to minimise potential Covid-19 exposure in the workplace. This means that salaried employees could spend more than 50 percent of aggregate working hours in the 2021 year of assessment (12 months ending 28 February 2021) working in their home
more time with their families, an earlier productive start to the day and, as a expenses as tax deductions.
Income Tax Act. An individual who runs a business from home as a sole-proprietor or independent consultant is usually expenses proportionate to the area used for business. You can claim rent, rates, interest on a bond, cleaning, repairs and wear and tear allowances on business equipment. However, if you earn remuneration from an employer, you can only claim these • regularly and exclusively used by you to work for your employer for which you earn remuneration; and • At least 50 percent of your remuneration is variable (such as commissions or bonuses) and at least 50 percent of
expenses in your TR12 tax return for the 2021 year of assessment, you should retain invoices and statements of these expenses, and prepare a running spreadsheet of the number of days worked at home for the tax year. Any communication from your employer to work from home during lockdown, or on shift days after the easing of lockdown, would also be useful to justify the number of days worked in this spreadsheet. be allowed in full. Repairs to the building in general, however, cannot be included in the total costs. These documents will need to be to SARS should your return be selected
Capital gains implication expenses as deductions is that on selling your home, you have to exclude any of the house from the primary residence capital gains exclusion. This exclusion provides for capital gains of up to R2 million on the disposal of a taxpayer's primary residence or all capital gains if the selling price is less than R2 million, to be disregarded. An easier option? In the short term, it may be easier for employees who have to work from home during the lockdown to claim home on a reimbursive basis with supporting invoices. Costs which can be claimed stationery, and computer equipment, if these have been incurred mainly in the employer's business. These amounts would not be part of remuneration and no PAYE would be withheld from the reimbursed payments. However, this method requires more involvement from the employer due to the need to check and approve the expenses. If you are acquiring any asset on behalf of your employer for use in your home mainly for your employer's business, the employer can claim input VAT on the reimbursements. It is preferable for invoices to be in the employer's name if possible. However, if you are acquiring the asset as principal, then the employer would not be able to claim VAT on the reimbursed amounts. For further information on claiming Comprehensive Guide to the income tax return for individuals, Interpretation note 28 (issue 2), or consult your tax adviser. Joon Chong is a partner in the tax practice at Webber Wentzel.
PERSONAL FINANCE | 3 RD QUARTER 2020
47
WEALTH•INVESTMENT•PROSPERITY
DIFFERENT FOR MUSLIMS points out that certain online commercial activity is contrary to Islamic law.
T
he coronavirus outbreak has resulted in a spike in e-commerce activity. According to Statista, retail platforms
increase between January and March 2020. Overall, retail websites generated 14.34 billion visits in March 2020, up from 12.81 billion global visits in January 2020. The relevance of any retail enterprise is online presence. In addition, e-commerce bears great potential to replenish the shattered livelihoods of individuals the world over. For Muslims, however, online retailing or
drop shipping. This is largely attributed to Islamic commercial law’s focus on clarifying ambiguity and enhancing contractual certainty, which minimise the prospect of commercial disputes arising between parties to a contract. Through regulating commercial contracts in this way, consumer protection remains paramount and the overall fabric of society is maintained. Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customer's orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. Drop shipping as we know it violates at least three Islamic contractual requirements, namely ownership, possession and separation of contracts. Ownership is violated when the retailer does not own the merchandise that is 48
PERSONAL FINANCE | 3 RD QUARTER 2020
supplied to the customer, consequently bringing into question the legitimacy of commercial gains made by the retailer. Possession is violated when the retailer neither physically nor constructively possesses the merchandise before supplying it to the customer. Separation of contract is violated when a subsequent contract remains contingent on an earlier one. With drop shipping, there appears to be one contract – between retailer and customer – while in actual fact there are at least three throughout the transaction. When goods are sold prior to being owned and possessed, this, in the eyes of Islamic commercial law, is a recipe for
commercial systems the world over comprise a number of contract types to
as a rise in price without underlying fundamentals. Asset bubbles gave rise to the subprime crisis of 2008, a crisis that the world had not yet fully recovered from before the Covid-19 outbreak. They result
simultaneously, possession of merchandise before deriving gains from sales made. Similarly, with an overlap of contracts between retailer and customer, retailer and supplier, retailer and delivery agent, supplier and delivery agent, lines of liability are crossed in the event of unforeseen circumstances. This calls for adjustments to suit the needs of Muslims retailers who may be keen
members in society. Simply demonstrated, if A sells to B and B sells to C, who in turn sells to D, all the while before the asset is owned by A in the end of the deal if it turns out that the asset is no longer in existence or impossible to deliver due to a break in the supply chain. It is not only A and D who bear the consequences of a deal gone sour, but all those in the chain. Now imagine this example on a global scale of trade and commerce, where entire economies are destroyed due to the creation of asset bubbles. As far as contractual separation or mutual exclusiveness is concerned, it should be borne in mind that
bears its own unique characteristics, thereby facilitating ease of determining in the Islamic law of commerce. A sale contract bears characteristics that a gratuitous contract does not. Thus, while liability is inherent to the nature of a contract of sale, it is only borne in a contract agency where negligence on the part of the agent is proved. Fast forward to drop shipping e-commerce. Retailers using drop
method. Similarly, it calls for non-Muslims who may interact with Muslim retailers to rules surrounding drop shipping is primarily in the interest of protecting the consumer rather than the retailer. Muhammad Haffejee is an economics and fInance consultant at Jamiatul Ulama SA (Council of Muslim Theologians). For recommended Islamic structures for drop shipping e-commerce, readers may contact the author on mhaffejee@jamiatsa.org
MILLENNIAL VIEW
WEALTH•INVESTMENT•PROSPERITY
GIVEN MAJOLA Given Majola is a financial journalist at Independent Media who contributes to Business Report in the group’s daily newspapers.
THE MENTALITY OF FINANCIAL PLANNING
A
person’s death generally prompts those that remain behind to look back on that person’s approach to life. They would tend to reflect on the late person’s ability to use their wisdom, strength and time to overcome the challenges they faced and on how they lived. However, it has become a common feature of today’s society for one’s death to inflict financial suffering even before one’s burial. While the democratic dispensation has allowed many South Africans, including the previously disadvantaged, to do what they can to earn a proper livelihood, history is filled with people who ascended to the peak of financial enterprise but fell to rock bottom again before drawing their last breath. This includes sportspeople, artists and businesspeople, as well as professionals who may have earned a decent salary for many years. A common problem with many of these people is that they were not attuned to saving, nor to investing. It seems many of us only earn to spend, and this is the financial predicament. While people normally plan for their future, many do not have a financial plan to go along with their life plan. It is for this reason that many are thrown into seeking emergency funding or borrowing, which, in turn, has consequences in the form of interest and, in the case of defaults, repossessions or blacklistings. Financial planning is a skill that we must all learn. Yes, I say we must all learn, because I believe it is learnable. Many marvel at family members or friends who have this special ability to stretch every rand they have. My late mother, a Grade 8 dropout who worked for about two decades as a domestic worker in the plots and town of Mogale City in the West Rand, was good at stretching money. When I was born almost 30 years ago, I received many gifts in the form of toys, clothes and even sweets. But my
mother did something which my emotions have struggled with for a long time. She did not let me use all of those things. Some were packed in boxes and shipped away from where we stayed for safekeeping. My own bad financial decisions have since proved my mother’s method right. Here was a woman who understood that if you have a lot, you must not use everything, because you do not know what the future holds. When I was nine, my brother was born. By then, my mother did not work; however, she fell back on most of the unused stuff that belonged to me. It was still as good as new. We should not always spend only on what we need now. If you know what you want to achieve in the next five years, then you should start saving towards that goal. We need to divide the money we have now between our current needs and those of the future, so that when the future arrives, we are not forced into an aimless runaround. In the current tough economic environment, we have to adopt a financial planning mentality. While we may have pressing needs currently, we need to understand that our future needs may be even more severe if we do not prepare for them. From that which we have, we should learn to keep something for the future. We should accept that times really are changing. Post-Covid-19, the world will look fundamentally different. We must ask ourselves now what the future will demand of us and adjust our spending accordingly. If we want a better future, let us invest in it. Let us gather now what we will need to survive. From what we have, we should check what will be relevant in the future and keep it. Over and above that, we should put aside money for the future. It will most definitely come in handy, even if our circumstances were to change fundamentally.
F U N D
F O C U S
OLD MUTUAL ESG EQUITY FUND T
hese pages are normally devoted to a unit trust fund that has a history of superior performance. This feature, however, highlights a new fund in an already crowded market, but which marks a breakthrough for the South African investment industry. Old Mutual has
Mutual’s suite of tax-free investments. Its total annual investment charge, of 1.18 percent for retail investors, is relatively low for an actively managed equity fund. The minimum you can invest is R500 a month or R10 000 as a lump sum. The fund’s benchmark is the FTSE/JSE Capped Shareholder Weighted All Share Index (Capped Swix). to invest in JSE-listed companies that The portfolio currently consists of about score highly on environmental, social and 85 companies, of which the top 10 holdings governance (ESG) factors. are: Naspers, Prosus, FirstRand, Standard The actively managed Old Mutual ESG Bank, Richemont, Old Mutual, MTN, Clicks, Equity Fund complements the company’s Kumba Iron Ore and Anglo Gold. two passive global ESG funds, the Old Mutual MSCI World ESG Index Feeder Fund Fakier spelt out the fund’s investment and the Old Mutual MSCI Emerging Markets philosophy and the methodology behind ESG Index Feeder Fund. its portfolio construction in a recent The fund, which launched on 1 June, is webinar co-presented by the head of managed by Fawaz Fakier and is aimed at responsible investments at Old Mutual investors with an investment horizon of Investment Group, Jon Duncan: “Driving innovation through ESG solutions”.
50
PERSONAL FINANCE | 3 RD QUARTER 2020
Fawaz Fakier
What is your investment philosophy? The fund invests in good-quality South African-based companies that have the highest ESG ratings and a low carbon footprint (measured by carbon intensity), with the aim of providing superior longterm performance, wrapped in a riskcognisant, well-constructed portfolio. We believe in sustainable companies. We believe the only way companies will gain a competitive edge in the long term is if they are conscious of ESG issues, which over time. We believe that companies that generate stable earnings in a responsible, sustainable manner will outperform the market over the long term. We like companies that have good return on equity, good return on assets, are well
F U N D
F O C U S
Source: Old Mutual Investment Group, Customised Solutions Gross backtested returns (October 2012 – March 2020) Backtested returns: Tested between October 2012 and March 2020, the Old Mutual ESG Equity Fund shows consistent outperformance at a lower the backtested fund outperformed the benchmark by about 2.5% – this is consistent with research on how ESG funds have done globally.
and then we try to buy these companies at an attractive price. We conduct our own inhouse ESG research by talking to data providers and sourcing good quality data from them. goes on alongside the ESG research, as well as the active stewardship component that Jon is very involved in – engaging with companies directly on issues that are close to our hearts and are directed at sustainable goals. How are stocks selected? There is a screening process, which can be reduced into two parts: 1. Qualitative test. This is simply us asking: what is the nature of the business? We such as tobacco, alcohol, gaming, arms
manufacturing and pornography. Only if the company’s primary business does not fall within those industries will it pass the qualitative test. 2. Quantitative test. We have controversy scores for every stock in the Capped Swix. We don’t want to hold stocks that are involved in controversial activities. Take a mining company, for instance, that is having labour issues, with workers going on strike. That is a potential controversial activity, which
and 20 counters, so we are left with an investment universe of about 140 stocks. Once we have our investable opportunity set, we base our exposure on a high ESG rating and a low carbon footprint, targeting at least a 40 percent lower carbon intensity and an overall 20 percent higher ESG score than the capped Swix. This is all by our inhouse research score, which we believe is a very good and well-tested indicator of the
wouldn’t invest in the company at that point, due to the potentially adverse impact it could have on the stock price as a result. Once a company has gone through the screening process, it becomes eligible for investment. The Swix contains about 160 stocks,
Why invest in this fund? We have dedicated inhouse ESG research and engagement teams, and deep expertise in risk management and portfolio construction. And we actually believe that companies that are sustainable have a competitive advantage, and this should all culminate in good performance.
PERSONAL FINANCE | 3 RD QUARTER 2020
51
ON THE CONTRARY
WEALTH•INVESTMENT•PROSPERITY
ANET AHERN Anet Ahern is the CEO of PSG Asset Management.
THERE ARE ALWAYS OPPORTUNITIES FOR PATIENT INVESTORS
C
an you build wealth at times like these? The Covid-19 pandemic has undoubtedly derailed markets and economies across the board. It is raising questions about the viability of many industries and businesses which have been part of our everyday lives until now. There have been precious few places for investors to hide, and the impact on investor portfolios has been severe. Despite how uncomfortable the market mayhem makes us feel, it also provides the opportunity to build great future portfolios – provided we can distinguish noise from material information and overcome emotion, to act rationally and take a longer-term view.
The dangers of a ‘smoother’ ride It is conceivable that the biggest investment risk facing the individual investor right now is capitulation. Investors seeking a smoother ride by switching to cash or buying popular stocks at any cost may find that this “safe” approach will in fact prove to be more risky over the longer term. Governments across the globe have slashed interest rates to counteract the impact of the Covid-19 pandemic on their economies. The result is that “safe” assets have become even less likely to outperform inflation for the foreseeable future. In addition, higher volatility means portfolio hedging has also become more expensive. Equities remain the place to build your long-term wealth, despite the discomfort investing in them can cause us from time to time. We typically find the best opportunities for our investors are in areas where valuations are lower due to fear and uncertainty, and which present the potential for mispricing. In the long run, the price you pay for an asset relative to its worth remains the greatest predictor of long-term returns. When prices fall across the board, quality securities become available cheaply, along with the rest. Those who can look past the turmoil and information overload can build robust portfolios for the future at bargain prices. There are always opportunities for patient investors – even if the market takes time to realise mispriced value. Remove emotion by focusing on your process When it comes to sifting through these
opportunities, taking emotion out of the equation is crucial. Following a trusted process and focusing on the fundamentals are key. Covid-19 has had, and will continue to have, profound impacts on many businesses and industries. Each market crisis accelerates the change that an industry already on a weak footing needs to make. We saw this with the demise of CDs in the early 2000s – an industry already under pressure had to reinvent itself, or die. Current examples are home delivery, content streaming and services relating to working from home. However, share prices spike quickly to reflect this and good businesses that are under temporary pressure, but able to survive and adapt in the long run, are being discarded by panicked investors. This creates severe mispricing. Some sectors will be more affected than others, and some company management teams will fare better than others. It is impossible to predict when and how the market will reward specific shares or sectors. But we know that in the long run, well-managed companies will continue to do business and grow over time, rewarding their shareholders, whatever the short-run challenges. So how do you accurately evaluate the management team of a company? One solution is to focus on finding the “footprints” of past decisions – what management have done historically, rather than what they say they will do in the future. For example, consistently conservative accounting policies and comprehensive disclosure provide footprints that say something about the character of the senior executives. Other valuable evidence can come from evaluating company balance sheets, and how shareholder capital is applied. One of the most challenging, yet most important, aspects of assessing an investment is to assess the quality of management teams, and it is imperative that an investment process should cater for this. More than ever, a long-term outlook matters We firmly believe there are good opportunities to be found despite the current economic and market turmoil. The current environment provides fertile ground for the mispricing of investments, and thus for building great future portfolios – but only for those who are able to separate process from emotion, and are patient enough to wait.
D A T A B A N K
DATABANK PERSONAL FINANCE | 3 r d QUARTER 2020
53
D A T A B A N K
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 FINANCIAL ADVICE problems: The Ombud for Financial Services Providers is Naresh Tulsie. 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 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 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 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 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? Call 0860 OMBUDS (662837) and you will be directed to the correct ombud or adjudicator. 54
PERSONAL FINANCE | 3 r d QUARTER 2020
D A T A B A N K PLEXCROWN RANKING OF MANAGEMENT COMPANIES DOMESTIC MANAGEMENT COMPANY RATINGS AS AT 30 JUNE, 2020
Management company Ninety One Fund Managers Mi-Plan Allan Gray H4 Collective Investments Prescient Alexander Forbes Discovery Boutique Coronation Nedgroup Investments Oasis Stanlib Absa Momentum Marriott Prudential IP Management Company Ashburton Old Mutual PSG
PlexCrowns 4.407 4.012 3.774 3.673 3.515 3.408 3.404 3.289 3.201 3.091 3.071 3.042 3.015 2.854 2.734 2.572 2.538 2.535 2.411 2.174
OFFSHORE MANAGEMENT COMPANY RATINGS AS AT 30 JUNE, 2020
Management company T Rowe Price Foord VAM Global Management Company SA Schroder Marriott Nedgroup Investments International Coronation Momentum Ninety One Global Strategy Fund Stanlib Sarasin Alexander Forbes Investments (Jersey) Investec World Axis PCC Ashburton Dodge and Cox PineBridge Sanlam Oasis Standard Bank Orbis Lloyds PSG Franklin Templeton Prescient
T
PlexCrowns 4.450 4.000 3.833 3.778 3.625 3.500 3.250 3.250 3.225 3.167 3.083 3.000 3.000 2.750 2.750 2.750 2.531 2.500 2.375 2.250 2.167 2.125 2.059 1.667
PERFORMANCE OF DOMESTIC SUB-CATEGORIES TO 30 JUNE 2020 BEST SUB-CATEGORIES
RETURN
SECOND QUARTER
Worldwide Equity Unclassified
58.06%
ONE YEAR
Worldwide Equity Unclassified
94.15%
THREE YEARS
Worldwide Equity Unclassified
42.48%
FIVE YEARS
Worldwide Equity Unclassified
24.82%
WORST SUB-CATEGORIES SECOND QUARTER
Regional Real Estate General
ONE YEAR
South African Real Estate General THREE YEARS
South African Real Estate General FIVE YEARS
South African Real Estate General
RETURN
-11.43% -37.38% -17.75% -8.87%
PERFORMANCE OF OFFSHORE SUB-CATEGORIES TO 30 JUNE 2020 BEST SUB-CATEGORIES
RETURN
SECOND QUARTER
WORST SU-BCATEGORIES SECOND QUARTER
US Equity Varied Specialist
25.06% US Fixed Interest Bond
ONE YEAR
ONE YEAR
US Equity Varied Specialist
49.52% UK Equity General
THREE YEARS
THREE YEARS
US Equity Varied Specialist
19.51% UK Equity General
FIVE YEARS
FIVE YEARS
US Equity General
14.33% UK Equity General
RETURN
-3.36% -1.02% 1.69% 0.85%
PERFORMANCE OF DOMESTIC FUNDS TO 30 JUNE 2020 BEST FUNDS
RETURN
SECOND QUARTER
WORST FUNDS SECOND QUARTER
Old Mutual Gold Fund (R)
58.06% Cloud Atlas AMI Real Estate ex-SA ETF
ONE YEAR
ONE YEAR
Old Mutual Gold Fund (R)
94.15% Select BCI Property Fund (A)
THREE YEARS
THREE YEARS
Old Mutual Gold Fund (R)
42.48% Nedgroup Investments Property Fund (A)
FIVE YEARS
FIVE YEARS
Old Mutual Gold Fund (R)
24.82% Nedgroup Investments Property Fund (A)
RETURN
-11.43% -46.58% -24.67% -13.72%
PERFORMANCE OF OFFSHORE FUNDS TO TO 30 JUNE 2020 BEST FUNDS
RETURN
SECOND QUARTER
Ninety One GSF Global Gold Fund Acc (A) ONE YEAR
55.87% Franklin US Government Fund
Baillie Gifford Worldwide LT Global Growth Fund THREE YEARS
Franklin Technology Fund FIVE YEARS
Franklin Technology Fund
WORST FUNDS SECOND QUARTER ONE YEAR
92.14% Contrarius Global Equity Fund THREE YEARS
38.48% Contrarius Global Equity Fund FIVE YEARS
30.64% Franklin Natural Resources Fund
RETURN
-3.36% -30.53% -10.36% -6.04%
Information in the above tables was provided by PlexCrown Fund Ratings and ProfileData
WHAT DO THE PLEXCROWN FUND RATINGS TELL YOU?
he last column in the collective investment scheme performance tables on pages 58 to 69 shows the PlexCrown rating of a fund if it qualifies for a rating. The PlexCrown Fund Ratings system encompasses the different quantitative measures used in calculating investment performances in one number and makes it easy for investors to evaluate fund managers on the basis of their long-term risk-adjusted returns. The PlexCrown Fund Ratings enable investors to know at a glance how a unit trust fund has fared over time on a risk-adjusted return basis, compared with the other funds in its Association for Savings & Investment SA subcategory. Therefore, the ratings assist investors in determining whether or not a fund manager is adding value to their unit trust investments, given the manager’s mandate and the amount of risk he or she is taking. The PlexCrown Fund Ratings are unbiased and objective because they are based on quantitative measures; no
subjectivity is brought into the research methodology. In calculating risk-adjusted returns, the methodology accepts that various quantitative formulae each have their unique drawbacks. In order to overcome this, up to five different risk measures are used: • Total risk (Sharpe Ratio); • Downside risk (Sortino Ratio and Omega Risk/Reward Measure); and • Manager’s skill (Jensen’s Alpha and Treynor). The research method ensures that the unit trust funds under evaluation are exposed to similar risks; therefore, the subcategories for unclassified funds and money market funds are excluded. The PlexCrown rating system is a measure of consistency because ratings are done over three and five years and are time weighted, with the emphasis on the longer period of measurement. Funds within a unit trust subcategory are ranked only if there are at least five funds in that subcategory with a
track record of at least five years. To qualify for a rating, a fund must have an official track record of at least five years. Each qualifying unit trust fund is awarded a certain number of PlexCrowns ranging from one to five, with the top-performing funds allocated the highest rating of five. The PlexCrown ratings distinguish between poor performers and excellent performers, but are based on historical data and should be used only as a first step in the construction of a unit trust portfolio. It remains the responsibility of investors together with their financial advisers, to make sure that the funds they choose suit their risk profiles and that their investment plans include an appropriate level of diversification. Visit www.plexcrown.com for a full description of the PlexCrown Fund Ratings system.
PERSONAL FINANCE | 3 r d QUARTER 2020
55
D A T A B A N K
NAME
SOUTH AFRICAN EQUITY GENERAL FUNDS
6 MONTHS % RANK
1 YEAR % RANK
3 YEARS % RANK
5 YEARS % RANK
PLEX CROWNS
COLLECTIVE INVESTMENT SCHEME PERFORMANCE TO JUNE 30, 2020 ABOUT THE LISTINGS
African Alliance Equity Prescient (A1)
5,71
4
4,68
11
5,92
11
0,94
57
3
Element Islamic Equity SCI (A)
-2,55
33
2,54
22
5,81
12
5,49
4
5
1nvest Sector Neutral Mom. Index Trkr (A)
0,19
17
5,41
9
5,78
13
Truffle SCI General Equity (A)
-3,38
40
3,43
17
5,50
14
3,53
19
5
APS Ci Equity (A1)
1,13
14
5,54
8
5,47
15
2,72
27
4
Sanlam IM Top Choice Equity (A1)
-4,36
49
2,56
21
5,41
16
4,44
9
5
• Results are based on the performance of a lump-sum investment over four periods that ended on JUNE 30, 2020. In each of the periods, there is a percentage (to two decimal places) by which an investment would have grown or shrunk, and the fund’s position or rank relative to other funds. • Returns for the three- and five-year periods are annualised (that is, the percentage represents the average performance in a year). As unit trust funds are medium- to long-term investments, the most important performance periods are those of three years or longer. • INITIAL COSTS have not been taken into account and can have an effect on returns. • ANNUAL MANAGEMENT FEES are included in the returns. • DIVIDENDS have been reinvested on the ex-dividend date (the day after they are declared) at the price at which the units are sold to you. • INDICES normally supplied as benchmarks reflect percentage changes and take into account dividends and interest. In the case of new indices, a history is not yet available. • The PLEXCROWN RATING indicates how a fund has fared over time compared with the other funds in its subcategory on a risk-adjusted return basis. Turn to page 57 for more information about the ratings.
CoreShares Top 50 ETF
-4,53
53
-5,36
60
5,35
17
4,40
10
Oasis Crescent Equity (D)
2,73
6
6,22
7
5,26
18
3,74
13
4
WHAT DOES THE * INDICATE?
Autus Prime Equity (A)
1,50
12
0,84
27
5,17
19
3,68
15
4
Citadel SA Multi Factor Eqt H4 (B1)
-4,64
54
-7,80
88
5,04
20
1,47
50
4
Gryphon All Share Tracker (A)
-0,27
22
-2,69
41
4,86
21
3,88
12
Ninety One Equity (A)
-2,71
36
0,36
29
4,69
22
3,30
22
Sygnia Divi Index (A)
-14,57
148
-17,66
157
4,53
23
2,00
38
Stanlib Equity (A)
-0,63
24
-0,41
33
4,26
24
2,49
29
4
36One BCI SA Equity (C)
-3,11
38
3,15
20
4,25
25
3,06
26
4
Satrix Alsi Index (A1)
-3,53
41
-4,01
51
4,21
26
3,28
23
Satrix Dividend + Index (A1)
-14,81
153
-18,01
159
4,16
27
1,75
44
Satrix DIVI ETF
-15,76
162
-18,74
162
4,16
28
1,94
40
Aluwani Top 25 (A)
-1,41
26
-2,80
42
4,04
29
2,12
35
4
Absa Prime Equity (A)
-8,98
95
-4,03
52
3,90
30
3,57
18
4
Coronation Equity (A)
-1,94
29
4,38
14
3,85
31
3,63
17
4
Colourfield BCI Equity (B)
-7,24
80
-7,15
87
3,59
32
Momentum Trending Equity (A)
-2,60
34
0,28
31
10,05
1
Sygnia Active Equity (A)
-0,39
23
8,02
5
9,91
2
5,48
5
5
36One BCI Equity (A)
9,31
2
19,56
2
9,79
3
6,34
2
5
Methodical Equity Prescient (A1)
7,27
3
13,57
3
9,48
4
Fairtree Equity Prescient (A1)
-3,65
44
4,68
12
8,90
5
6,16
3
5
Dynasty Ci Wealth Accumulator (A2)
2,32
8
5,33
10
7,57
6
4,12
11
5 5
Kruger Ci Equity (A)
1,48
13
4,49
13
6,93
7
Rezco Equity (A)
0,31
15
7,92
6
6,85
8
4,69
6
BlueAlpha BCI Select Equity (A)
0,10
18
1,22
26
6,63
9
4,50
8
4
Counterpoint SCI Value (A1)
1,66
11
4,30
15
6,18
10
3,28
24
4
Momentum Core Equity (A)
-9,02
96
-8,20
91
3,46
33
Discovery Equity
-0,11
20
3,17
19
3,34
34
3,67
16
4
Kagiso Islamic Equity (A)
-9,82
106
-6,42
77
3,33
35
4,69
7
4
Sanlam Select Optimised Equity (B4)
-5,72
61
-5,81
67
3,30
36
1,86
42
4
IFM Technical (A)
9,65
1
19,80
1
3,29
37
0,58
62
3
Coronation Top 20 (A)
-4,68
55
0,58
28
3,26
38
3,12
25
4
PortfolioMetrix BCI Equity FoF (A)
-8,95
94
-3,92
49
3,15
39
1,50
49
4
Satrix Quality Index (A1)
-14,71
151
-13,99
135
2,94
40
Warwick BCI Equity (B)
0,01
19
1,36
25
2,87
41
-0,96
85
3
Matrix NCIS Equity (C)
-7,26
81
-6,45
78
2,82
42
Optimum BCI Equity (A)
-4,77
57
-7,13
86
2,78
43
Community Growth Equity (A)
-6,54
70
-7,88
89
2,75
44
1,25
54
4
Kagiso Equity Alpha (A)
-15,62
161
-5,77
66
2,69
45
3,48
21
4
Sanlam IM General Equity (A)
-7,04
77
-2,48
40
2,62
46
1,84
43
4
Fairtree Smart Beta Prescient (A1)
-13,21
140
-15,81
148
2,58
47
Stonehage Fleming Sanlam CI Equity (A1)
2,68
7
3,68
16
2,48
48
Ninety One SA Equity (E)
-7,30
83
-4,76
56
2,40
49
Sanlam Private Wealth Equity (A1)
-4,43
50
-5,72
65
2,32
50
2,31
34
3
Prudential Dividend Maximiser (A)
-6,02
64
-3,97
50
2,30
51
2,43
30
4
Momentum Value Equity (A)
-16,25
164
-19,44
165
2,25
52 4
Prudential Equity (A)
-4,45
51
-6,38
75
2,22
53
2,38
31
Satrix Rafi 40 ETF (A)
-13,05
138
-15,66
147
2,21
54
2,54
28
Satrix Rafi 40 Index (A1)
-12,81
133
-15,42
145
2,17
55
2,06
36
Aeon Smart Multi-Factor Equity Prescient (A1)
-5,62
60
-6,07
70
2,16
56
1,72
45
4
Select Manager BCI Equity (A)
-6,85
75
-5,69
64
2,16
57
1,11
56
3
56
PERSONAL FINANCE | 3 r d QUARTER 2020
The asterisk (*) before a fund’s name indicates that the fund complies with the investment requirements of Regulation 28 of the Pension Funds Act. Funds suitable for retirement savings must comply with Regulation 28, which lays down guidelines about Inv. in different categories of assets. To reduce the risk and volatility of a fund, the Act restricts exposure to equities to a maximum of 75 percent of the fund and its exposure to property to 25 percent.
HOW FUNDS ARE CLASSIFIED The Association for Savings & Investment SA’s classification system categorises unit trust funds according to their investment universe: where they invest, what they invest in and their main investment focus. The first tier of the classification system categorises funds as South African, global, worldwide or regional. South African funds must invest at least 70 percent of their assets in South African investment markets at all times. They may invest a maximum of 25 percent in foreign markets and a maximum of five percent in African (excluding South African) markets. Global funds must invest a minimum of 80 percent of their assets outside SA. Worldwide funds do not have any restrictions on where they may invest but they typically allocate between South African and foreign markets in line with the manager’s outlook for local versus foreign assets. Regional funds must invest at least 80 percent of their assets in a specific geographic region, such as Asia or Africa, excluding South Africa, or a country such as the United States. Regional funds may invest a maximum of 20 percent of their assets in South Africa. The second tier of the classification system categorises funds according to the asset class in which they predominantly invest. At this level, funds are categorised as equity funds, interest-bearing funds, real estate funds or multi-asset funds. Equity funds must invest at least 80 percent of the net asset value of a fund. Interest-bearing funds invest in bonds, fixed interest and money-market instruments. Real estate funds must invest at least 80 percent of their assets in shares in the real estate sector of the JSE or a similar sector of an international stock exchange. A fund may invest a maximum of 10 percent in property shares that are not classified in the real estate sector. Multi-asset funds save you the trouble of deciding how to allocate your assets between shares, bonds, property or cash. The managers of multi-asset funds decide, for you, which asset classes they believe will produce the best returns and then, within those classes, which securities will perform the best. Some funds have a fixed allocation to the different asset classes whereas others change the mix of asset classes in line with their views of how the different classes or securities will perform.
MONEY MARKET YIELDS FUND NAME Absa Money Market Fund ACI Money Market Fund Afena Money Market Prescient Fund Allan Gray Money Market Fund Ashburton Money Market Fund BCI Money Market Fund Cadiz Money Market Fund Cannon Money Market H4 Fund Cartesian BCI Money Market Fund Citadel SA Money Market H4 Fund Coronation Money Market Fund Discovery Money Market Fund Fairtree Money Market Prescient Fund Glacier Money Market Fund Granate SCI Money Market Fund Gryphon Money Market Fund Hollard Prime Money Market Fund Ninety One Money Market Fund Marriott Money Market Fund Momentum Money Market Fund Nedgroup Investments Money Market Fund Ngwedi Money Market Fund Oasis Money Market Fund Old Mutual Money Market Fund Old Mutual Multi-Managers Money Market Fund Prescient Money Market Fund Prime Money Market Fund Prudential Money Market Fund PSG Money Market Fund RECM Money Market Fund Satrix Money Market Fund SIM Money Market Fund SNN Money Market Fund Stanlib Money Market Fund
ANNUALISED YIELD TO 30 JUNE 2020
CLASS
6,19 7,20 6,22 7,26 6,98 7,03 7,62 6,88 8,80 6,86 6,83 6,68 6,22 6,89 7,17 7,96 6,95 6,89 6,43 7,17 6,48 4,06 9,39 6,83 6,81 7,08 6,39 6,95 8,43 6,69 7,51 7,22 3,78 7,04
A A1 A1 A B1 A A A A B1 A A A1 A B A B R A A R I1 A A A A A A A A A1 R A1 R
The third tier of the classification system categorises funds according to their main investment focus.
WHAT DOES THE ‘R’ OR ‘A’ MEAN? These indicate the annual management fees a unit trust company can charge and depend partly on the class of units you buy. Before June 1998, the fees charged on funds were regulated with a maximum annual management fee of one percent a year plus VAT. Funds launched before this date have the letter “R” behind the fund name and can only change their fees after a ballot of all unit trust holders. Many unit trust companies have closed their “R” class funds to new investments and launched new fund classes. Funds and fund classes launched after June 1998 can charge any fees. Typically, fees range from 0.25 percent to 2 percent, excluding VAT. Funds with unregulated fees can be “A”, “B”, “C” or “D” class funds. Typically, “A” class funds are offered to retail investors while cheaper “B” class funds are for institutional investors who invest in bulk. Only the institutional funds available to you through a linked-investment services provider (Lisp) are published here. The different classes of a single fund are managed collectively and the difference in performance between them is purely a result of the difference in management fees. Most recently what are known as all-in-fee classes (“C” or “D” classes) have been introduced. These funds charge a single fee covering the management fee, the broker fee and the administration (or Lisp) fee. Performance figures supplied by ProfileData
Telephone: 011 728 5510 Email: unittrust@profile.co.za Website: www.fundsdata.co.za
Disclaimer: Although all reasonable efforts have been made to publish the correct data, neither ProfileData nor Personal Finance can guarantee the accuracy of the information on the unit trust fund performance pages.
NAME
6 MONTHS
RANK
PLEX.
D A T A B A N K Sasfin BCI Equity (A)
1,88
9
1,91
24
2,14
58
1,57
47
3
Old Mutual Rafi 40 Index (A)
-12,98
136
-15,44
146
2,14
59
2,01
37
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
RANK
Mi-Plan IP Beta Equity (B2)
-6,78
74
-5,66
63
2,05
60
1,65
46
Satrix Momentum Index (A1)
-13,94
145
-11,22
116
2,00
61
1,89
41
3
27four Shariah Active Equity Prescient (A1)
-1,56
27
-1,57
37
1,99
62
2,38
32
3
FG IP Mercury Equity FoF (A)
-3,82
46
-2,00
38
1,91
63
1,30
52
3
Absa Select Equity (A)
-8,46
90
-5,39
61
1,80
64
0,47
65
3
Prescient Core Equity (A2)
-6,39
66
-6,11
71
1,79
65
1nvest Index (R)
-6,53
69
-6,40
76
1,73
66
1,28
53
Analytics Ci Managed Equity (A)
-6,52
68
-4,91
59
1,68
67
0,84
58
3
AF Investments Equity FoF (A)
-7,61
88
-2,28
39
1,67
68
3,74
14
4
Cratos BCI Equity (A)
4,51
5
10,20
4
1,63
69
-0,22
77
3
Aylett Equity Prescient (A1)
-13,43
142
-11,86
125
1,63
70
3,49
20
4
Obsidian SCI Equity (B3)
-9,03
97
-6,33
74
1,63
71
Absa Smart Alpha Equity (A)
-4,36
48
-5,90
68
1,49
72
-0,30
78
3
Stanlib M-M Diversified Equity FoF (A)
-5,89
62
-3,14
43
1,36
73
1,99
39
3
Sygnia Swix Index (A)
-6,64
72
-6,61
80
1,34
74
1,38
51 74
Trésor Sanlam CI Equity (B1)
-2,51
32
-4,58
55
1,31
75
PPS Equity (A)
-7,58
87
-4,90
58
0,77
76
0,12
Ninety One Value (A)
-16,36
165
2,03
23
0,76
77
7,06
1
Laurium Equity Prescient (A1)
-9,88
107
-10,58
104
0,74
78
-0,08
75
Lynx Prime CI Opportunities FoF (A1)
-2,72
37
-4,12
53
0,66
79
1,22
55
Sygnia Equity (A)
-6,68
73
-5,60
62
0,64
80
0,30
69
3
Hollard Prime Equity (B)
-6,45
67
-6,31
73
0,57
81
0,65
59
3
Ashburton M-M Equity (A1) 1nvest Sector Neutral Growth & Qual Index Tracker (A) Sentio SCI Hikma Shariah General Equity (B1)
-7,10
78
-3,33
45
0,57
82
-1,61
28
-4,56
54
0,47
83
-8,00
89
-9,66
97
0,39
84
Momentum Equity (A)
-9,59
102
-10,12
100
0,33
85
0,57
63
3
Coronation SA Equity (A)
-5,96
63
-0,98
35
0,21
86
3
PSG Wealth Creator FoF (A)
-8,48
92
-6,82
83
0,18
87
0,49
64
BCI Best Blend Specialist Equity (C)
-10,23
113
-8,76
93
0,15
88
0,16
72
3
H4 Focused Wealth (A1)
-14,69
150
-13,74
133
-0,03
89
-0,41
79
3
Select BCI Equity (A)
-4,47
52
-5,95
69
-0,09
90
-0,59
81
2
Personal Trust SA Equity (A)
-8,46
91
-6,79
82
-0,14
91
0,30
70
3
M1 Capital Equity Prescient (A1)
-3,17
39
-0,03
32
-0,20
92
0,17
71
3
Melville Douglas Stanlib High Alpha (A)
-9,69
104
-11,11
113
-0,32
93
0,15
73
3
Absa SA Core Equity (A)
-10,72
119
-8,87
94
-0,37
94
Dalebrook Equity Prescient (A2)
-4,75
56
-13,25
130
-0,44
95
-1,43
90
2
Oasis General Equity (D)
-9,93
110
-10,13
101
-0,51
96
0,32
68
2
Allan Gray Equity (A)
-9,70
105
-7,03
85
-0,54
97
2,32
33
3
Cadiz Equity (A)
-13,25
141
-11,19
115
-0,55
98
1,55
48
3
N-e-FG BCI Equity (A)
-7,50
86
-4,80
57
-0,62
99
-0,71
84
3
Dotport BCI Equity (B)
-10,83
120
-11,33
117
-0,78
100
Counterpoint SCI Dividend Equity (A1)
-16,50
166
-14,73
141
-0,97
101
0,61
61
2
Ashburton Equity (A1)
-6,62
71
-8,64
92
-1,01
102
Denker SCI Equity (A)
-9,24
99
-10,98
111
-1,12
103
-2,08
95
2
Old Mutual Albaraka Equity (A)
-11,11
125
-10,90
109
-1,18
104
0,64
60
3
Caleo BCI Equity (A)
1,82
10
-3,16
44
-1,29
105
Visio BCI General Equity (A)
-6,25
65
-6,48
79
-1,45
106
-1,08
88
3
Marriott Dividend Growth (R)
-11,57
129
-11,45
120
-1,64
107
-0,15
76
2
Anchor BCI Equity (A)
-9,68
103
-10,81
107
-1,65
108
-0,44
80
3
Bateleur Equity Prescient (B4)
-7,12
79
-11,37
118
-1,69
109
-0,61
82
2
Element Earth Equity SCI (A)
-17,25
167
-16,48
151
-1,71
110
0,41
66
3
Prudential SA Equity (F)
-13,67
143
-16,78
153
-1,75
111
Old Mutual MM Equity FoF (A)
-10,06
112
-10,86
108
-1,94
112
-1,03
87
3
Old Mutual Capped Swix Index (A)
-11,35
127
-12,03
128
-1,98
113
Huysamer Equity Prescient (A)
-7,37
84
-9,16
95
-2,23
114
-2,50
97
2
FNB Growth (A)
-8,91
93
-10,63
105
-2,41
115
-1,20
89
2
Sygnia Growth Equity (A)
-7,46
85
-11,92
127
-2,43
116
ClucasGray Equity Prescient (A1)
-20,92
174
-20,24
168
-2,58
117
-1,01
86
3
PERSONAL FINANCE | 3 r d QUARTER 2020
57
6 MONTHS %
RANK
1 YEAR
Afena Equity Prescient (A1)
-15,26
156
%
-19,40
RANK
164
3 YEARS
5 YEARS
%
%
-2,65
RANK
118
RANK
-2,06
94
NAME
6 MONTHS
2
Ngwedi Equity SNN (R3)
-3,60
43
Ngewdi Active Equity SNN - I1
-3,87
47
Integral BCI Equity (A)
-3,57
42
-3,67
48
-2,66
119
Sanlam Multi Managed Equity FoF (A2)
-9,06
98
-10,02
99
-2,67
120
-2,25
96
2
GLOBAL & LOCAL SNN EQUITY (A)
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
RANK
RANK
Maestro Equity Prescient (A)
-0,12
21
-3,43
47
-2,78
121
-3,03
101
1
Mianzo Equity ACI (A1)
-12,88
134
RECM Equity (B)
-15,41
159
-11,88
126
-2,88
122
-0,66
83
2
Global & Local SNN Low Volatility Equity (A)
-14,74
152
IP High Conv Eqt (A)
-11,96
131
-11,18
114
-2,88
123
-2,73
100
2
CoreShares Scientific Beta Multi Factor ETF
-15,17
155
Stanlib SA Equity (A)
-10,58
115
-14,45
139
-3,05
124
-3,48
108
2
FTSE/JSE All Share TRI (J203)
-3,16
Nedgroup Inv. Rainmaker (A)
-10,53
114
-12,18
129
-3,06
125
-1,53
91
2
INDUSTRIAL FUNDS
Allan Gray SA Equity (A)
-15,62
160
-14,36
138
-3,14
126
0,35
67
3
Sanlam IM Industrial (A)
20,03
1
21,18
1
4,75
1
4,25
1
Denker SCI SA Equity (B1)
-13,10
139
-15,92
150
-3,15
127
Satrix Capped Indi (A)
6,51
2
3,09
4
2,06
2
3,08
2
Visio BCI SA Equity (B8)
-11,39
128
-11,60
123
-3,22
128
Coronation Industrial (P)
4,29
4
4,88
2
-0,80
3
1,63
3
Excelsia Equity ACI (A1)
-12,10
132
-11,54
122
-3,50
129
Momentum Industrial (A)
6,31
3
3,21
3
-1,97
4
0,14
4
Old Mutual Managed Alpha Equity (A)
-9,90
108
-10,80
106
-3,81
130
-1,74
92
2
FTSE/JSE Industrial index (J257)
6,75
Mergence Equity Prime (A1)
-11,01
123
-15,26
143
-4,13
131
-1,93
93
2
LARGE CAP FUNDS
Ampersand SCI Equity (B)
-15,40
158
-19,14
163
-4,18
132
-2,66
99
2
Kagiso Top 40 Tracker (R)
3,41
1
1,86
1
6,94
1
4,54
3
Old Mutual Investors (A)
-18,13
170
-18,69
161
-4,86
133
-3,09
102
2
Ashburton Top40 ETF
0,18
4
-0,73
3
6,52
2
4,61
1
Mazi Asset Management Prime Equity (A)
-14,63
149
-17,85
158
-4,91
134
-2,64
98
2
1nvest Top 40 (A)
0,16
5
-0,79
4
6,44
3
4,61
2
Foord Equity (A)
-10,61
117
-10,38
102
-5,40
135
-3,33
107
Prescient Equity Top 40 (A1)
0,32
3
-0,72
2
6,37
4
4,35
4
Perpetua SCI Equity (A)
-17,39
169
-13,78
134
-5,75
136
-3,21
104
2
NewFunds Shari’ah Top40 Index
-7,05
16
-5,02
15
6,33
5
0,61
14
-3,30
5,11
4,04
PLEX.
NAME
PLEX.
D A T A B A N K
4,16
2,52
3,34
5
1nvest Sector Neutral Value Index Tracker (A)
-20,68
173
-25,66
174
-5,85
137
1nvest Alsi 40 (A)
0,56
2
-0,94
5
6,21
6
4,28
6
Nedgroup Inv. Private Wealth Equity (A)
-13,00
137
-16,56
152
-5,97
138
-3,33
106
2
Satrix 40 (A)
-0,77
11
-2,61
11
6,14
7
4,33
5
First Avenue Sanlam CI Equity (B1)
-10,90
121
-14,64
140
-6,12
139
-4,10
111
1
Satrix Top 40 Index (A1)
-0,11
7
-1,38
7
5,94
8
4,05
8
Integrity Equity Prescient (A1)
-21,51
176
-17,27
155
-6,27
140
Momentum Top 40 Index (A)
-0,24
9
-1,53
8
5,90
9
3,95
9
Nedgroup Inv. Value (A)
-17,25
168
-17,24
154
-6,31
141
-3,09
103
NewFunds Equity Momentum
-8,14
17
-6,24
16
5,83
10
4,08
7
CoreShares SA Dividend Aristocrats
-20,25
172
-19,92
167
-6,48
142
-3,31
105
Old Mutual Top 40 Index (A)
-0,24
8
-1,54
9
5,75
11
3,85
11
Harvard House BCI General Equity (A)
-4,95
59
-6,78
81
-7,04
143
-3,58
110
1
Sygnia Top 40 Index (A)
-0,68
10
-2,01
10
5,55
12
3,91
10
First Ave SCI Focused Qual Equity (A)
-9,31
100
-13,62
131
-7,06
144
-4,32
112
1
1nvest Swix 40 (A)
-2,51
12
-3,23
12
3,12
13
2,42
12
PSG Equity (A)
-19,53
171
-22,18
170
-8,27
145
-3,50
109
Satrix Swix Top 40 Index (A1)
-2,53
13
-3,46
13
2,70
14
Bridge Equity Income Growth (A)
-24,79
182
-26,59
175
-9,19
146
-5,32
113
1
Satrix Swix TOP 40 (A)
-3,24
14
-4,01
14
2,65
15
1,89
13
Nedgroup Inv. Growth (A)
-27,70
184
-30,82
177
-9,30
147
-6,17
114
1
Citadel SA 20/20 Equity H4 (B1)
-3,27
15
-6,85
17
2,54
16
Cannon Equity H4 (A)
-20,96
175
-22,89
171
-9,98
148
-6,89
115
1
Satrix Equally Weighted Top 40 Index (A1)
-9,06
18
-7,37
18
-1,43
17
-1,49
15
Steyn Capital Equity Prescient (A1)
-21,59
177
-21,59
169
-10,83
149
Prescient Equity (A1)
-11,24
20
-13,14
20
-1,89
18
-1,98
16
PSG SA Equity (D)
-23,20
180
-27,77
176
-12,04
150
Saffron SCI Large Cap (A)
-16,80
22
-18,96
21
-2,59
19
-2,67
19
3
Fairtree Select Equity Prescient (A1)
-1,02
25
3,24
18
Integre Large Cap (A1)
-14,35
21
-20,18
22
-2,89
20
-2,66
18
2
Select BCI Enhanced Equity (A)
-3,72
45
0,34
30
NewFunds S&P GIVI SA Top 50
-9,86
19
-10,01
19
-4,05
21
-2,48
17
6
-1,01
6
-6,99
116
1
1
Absa Top 40 Index (A)
0,21
16
-0,80
34
Sygnia Itrix Top 40 ETF
0,04
BCI Shariah Equity (C)
-2,02
30
-1,10
36
FTSE/JSE Alsi 40 index (J200)
0,37
Sygnia Itrix Swix 40 ETF
-2,63
35
-3,42
46
MID AND SMALL CAP FUNDS
Foundation BCI Equity (A)
-10,59
116
-6,11
72
Ashburton MidCap ETF
-25,91
8
-18,18
6
-4,14
1
-1,24
1
Aeon Active Equity Prescient (A1)
-4,79
58
-6,85
84
Coronation Smaller Companies (R)
-19,59
4
-15,05
1
-5,77
2
-1,92
2
5
Prime South African Equity (A)
-7,30
82
-8,03
90
Nedgroup Inv. Entrepreneur (A)
-13,53
1
-15,37
2
-6,93
3
-2,96
3
3
All Weather BCI Equity (B2)
-6,94
76
-9,54
96
Momentum Small Mid-Cap (A)
-19,49
3
-20,41
8
-9,00
4
-4,25
4
4
X-Chequer BCI Equity (B)
-9,39
101
-9,68
98
Ninety One Emerging Companies (A)
-27,55
9
-21,38
9
-9,19
5
-9,01
8
-0,55
6,68
4,82
Benguela Equity ACI (A1)
-9,92
109
-10,38
103
Sanlam IM Small Cap (A)
-20,44
5
-18,09
5
-10,55
6
-7,09
6
2
Prescient Core Capped Equity (A2)
-10,97
122
-10,96
110
Old Mutual Mid & Small Cap (A)
-22,62
6
-16,76
4
-11,61
7
-6,99
5
3
Satrix Momentum ETF
-13,86
144
-11,02
112
Alpha Prime Small & Mid Cap (A)
-15,29
2
-15,58
3
-14,88
8
-7,63
7
1
Momentum Capped Swix Index (A)
-11,05
124
-11,40
119
Momentum Mid and Small Cap Index (A)
-22,84
7
-20,10
7
Satrix Smartcore Index (A1)
-10,02
111
-11,45
121
FTSE/JSE Mid Cap index (J201)
-25,67
-17,60
Satrix Capped Swix Alsi (A1)
-11,24
126
-11,63
124
UNCLASSIFIED FUNDS
-3,50
-0,62 4,41
Old Mutual Equity (A)
-14,34
146
-13,65
132
*Bridge Diversified Preference Share (A)
-18,76
-14,46
1,88
Sentio Sanlam CI General Equity (B2)
-11,72
130
-14,20
136
Krugerrand Custodial Certificates ETF
44,37
54,37
22,77
Lima Mbeu Sanlam CI Equity (A1)
-12,94
135
-14,21
137
RESOURCE FUNDS
Satrix Quality South Africa ETF
-16,07
163
-15,10
142
Ninety One Commodity (A)
13,75
1
38,94
1
32,01
1
20,44
1
CoreShares Sci Beta MF Index (A)
-15,28
157
-15,34
144
Sanlam IM Resources (A)
-4,63
5
17,82
2
22,44
2
12,57
4
Northstar SCI Equity (A)
-14,98
154
-15,85
149
Satrix Resi (A)
4,04
3
10,23
6
22,22
3
8,55
6
4
Absa Dividend Plus Index (A)
-14,34
147
-17,48
156
Nedgroup Inv. Mining & Resource (A)
-4,15
4
14,71
4
21,52
4
12,73
3
2
Satrix Mid Cap Index (A1)
-25,86
183
-18,02
160
Coronation Resources (P)
-6,26
6
13,02
5
19,73
5
15,36
2
3
NewFunds Low Volatility Equity ETF
-22,39
179
-19,61
166
Momentum Resources (A)
11,33
2
14,94
3
15,93
6
10,04
5
1
Amity BCI Equity Income (A)
-23,77
181
-24,45
172
FTSE/JSE Financial index (J580)
-31,68
*NewFunds Value Equity ETF
-22,31
178
-25,03
173
FINANCIAL FUNDS
Prescient Core All Share Equity (A2)
-2,51
31
58
PERSONAL FINANCE | 3 r d QUARTER 2020
Nedgroup Inv. Financials (A)
-26,20
-34,5 1
-29,54
-8,55 1
-5,63
-5,26 1
-2,75
1
D A T A B A N K Satrix Fini (A)
-33,68
5
-37,31
5
-7,03
2
-5,26
Momentum Financials (A)
-32,41
4
-35,71
4
-7,09
3
Sanlam IM Financial (A)
-28,27
2
-31,77
2
-7,74
4
Coronation Financial (A)
-29,15
3
-33,15
3
-8,88
5
FTSE/JSE Financial index (J580)
-31,68
%
1 YEAR
RANK
%
RANK
-34,50
3 YEARS
5 YEARS
%
%
RANK
-8,55
NAME
6 MONTHS
3
Westbrook Prime Opportunities Flexible (E)
3,09
9
-4,55
2
Global & Local SNN Balanced FoF (A)
-5,33
31
-6,03
4
Celerity Ci Growth (A)
-7,42
34
-6,56
5
HIGH EQUITY FUNDS
RANK
-5,26
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
RANK
RANK
PLEX.
6 MONTHS
PLEX.
NAME
*Gryphon Prudential (B)
16,82
2
23,26
1
14,17
1
10,87
1
5
SOUTH AFRICAN MULTI-ASSET
*Long Beach Managed Prescient (A1)
12,04
3
13,54
6
10,27
2
10,55
2
5
FLEXIBLE FUNDS
Fairtree Balanced Prescient (A1)
4,09
16
11,32
9
9,39
3 5
Gryphon Flexible (B)
17,20
2
23,51
1
13,99
1
10,87
2
5
*Fin. Fitness Bal IP FoF (A)
1,46
37
4,95
32
8,36
4
Long Beach Flexible Prescient (A1)
17,44
1
16,80
2
12,28
2
13,23
1
5
*Rezco Managed Plus (A)
8,02
7
16,63
3
8,36
5
5,73
9
BlueAlpha BCI All Seasons (A)
12,22
3
14,19
3
10,67
3
6,07
4
5
*Ninety One Managed (A)
3,80
17
9,15
13
8,10
6
7,65
3
Bateleur Flexible Prescient (A1)
10,92
4
11,99
4
7,36
4
6,02
5
5
*Rezco Value Trend (A)
7,52
8
16,02
5
7,82
7
5,66
10
Truffle SCI Flexible (A)
1,68
13
11,10
6
7,27
5
5,85
7
4
*Ninety One Opportunity (A)
7,33
9
10,43
10
7,70
8
7,62
4
Noble PP Stanlib Flexible (A)
1,20
15
5,23
11
7,25
6
7,12
3
4
*H4 Diversified (B1)
1,07
45
3,29
50
7,56
9
6,23
7
5
36One BCI Flexible Opportunity (A)
5,17
6
11,95
5
6,63
7
5,14
9
4
AF Investments Aggressive Passive (A1)
3,25
21
3,68
45
7,04
10
4
Prescient Optimised Income (B1)
2,77
11
6,01
10
6,16
8
Sygnia Skeleton Balanced 70 (A)
1,43
39
4,38
36
6,77
11
5,55
12
5
Autus Prime Opportunity (A)
5,92
5
8,86
7
5,75
9
1,99
18
3
*NFB Ci Managed (A)
1,43
38
3,93
40
6,66
12
6,55
6
5
CS BCI Flexible FoF (B)
2,28
12
6,22
9
5,20
10
4,11
12
4
*Deton Prime Managed FoF (A)
5,56
12
7,88
16
6,55
13
5,23
16
5
Maitland BCI Flexible FoF (A)
0,85
16
3,86
12
5,19
11
5,38
8
4
*Nedgroup Inv. Balanced (A)
1,73
32
10,18
11
6,53
14
5,41
13
4
Centaur BCI Flexible (A)
-3,48
27
1,80
16
4,95
12
6,01
6
4
*Instit BCI Managed FoF (A)
0,95
47
5,06
28
6,47
15
4D BCI Flexible (A)
-5,18
29
-5,60
32
4,94
13
1,51
24
3
*IP Active Beta (A)
3,66
19
5,32
24
6,25
16
4,56
33
4
Truffle SCI Flexible Income (A)
-9,05
40
-4,63
30
4,51
14
*Counterpoint SCI Balanced Plus (A1)
-0,63
73
1,11
92
6,10
17
4,66
31
4
Corion Prime Flexible (A1)
2,88
10
6,92
8
4,43
15
Oasis Crescent Balanced High Equity FoF (D)
3,76
18
7,65
17
6,04
18
4,75
30
3
Laurium Flexible Prescient (A1)
-1,48
21
-1,35
26
4,15
16
*Rowan Capital BCI Balanced FoF (A)
0,52
51
4,72
34
6,00
19
4,26
11
4
JBL Sanlam CI Flexible FoF (B1)
-1,72
22
1,81
15
3,85
17
*Sasfin BCI Prudential (A1)
-0,44
69
3,08
54
5,99
20
4,84
26
4
*Adviceworx Old Mutual Infl. + 5-7% FoF (B1)
-1,04
18
0,82
21
3,70
18
3,28
14
3
*Prescient Balanced (A2)
-1,18
87
1,60
81
5,97
21
5,38
14
5
Noble PP Stanlib All Weather FoF (A)
-2,87
26
0,68
22
3,43
19
2,71
16
3
*Element Islamic Balanced SCI (A)
-0,76
76
3,71
44
5,96
22
7,01
5
4
Citadel SA Protected Equity H4 (B1)
-13,39
46
-9,50
39
3,15
20
4,58
10
4
*Multi Asset IP Balanced Plus (B1)
1,10
44
5,04
29
5,86
23
4,78
29
4
Triathlon IP (D)
-8,64
37
-8,18
36
2,92
21
0,96
28
2
*Warwick BCI Balanced (B)
3,32
20
6,38
18
5,80
24
3,23
79
3
Visio BCI Actinio (A)
-6,04
33
0,53
23
2,16
22
1,54
22
3
*Flagship IP Balanced (A)
6,04
10
12,02
7
5,73
25
2,16
106
3
Destiny BCI Multi Asset FoF (A)
1,48
14
2,62
13
2,14
23
2,48
17
3
*Autus Prime Balanced (A)
8,65
5
9,97
12
5,71
26
3,43
78
3
N-e-FG BCI Flexible (A)
-5,20
30
0,03
24
2,02
24
1,45
25
3
*Sanlam IM Mngd Mod. Agg. FoF (A1)
-1,11
84
3,56
47
5,70
27
5,34
15
5
True North IP Flexible Equity (A)
-4,38
28
0,88
20
1,67
25
0,55
29
2
*Wealth Associates BCI Balanced FoF
-3,29
135
0,31
107
5,64
28
GCI SCI Flexible FoF (A)
-2,56
25
-1,51
27
1,64
26
2,98
15
3
*Prescient Living Planet (A1)
1,38
40
3,15
52
5,59
29
5,06
21
4
*IP Flex. FoF (A1)
-2,25
24
-1,15
25
1,42
27
1,10
27
2
*Sygnia CPI + 6% (A)
0,12
57
3,56
48
5,57
30
4,43
35
Old Mutual Flexible (A)
-9,51
41
-7,01
33
1,23
28
1,91
19
3
*Sanlam Multi Managed Moderate FoF (A1)
0,81
48
3,79
42
5,56
31
5,07
20
4
Element Flexible SCI (A)
-10,26
43
-8,08
34
0,70
29
3,83
13
3
Melville Douglas Stanlib Balanced (A)
-0,36
64
0,08
110
5,52
32
3,88
57
3
Dotport BCI Flexible FoF (A)
-8,26
36
-8,25
37
0,55
30
1,70
21
2
Discovery Agg. Dyn. Asset Optimiser FoF (A)
1,22
41
4,91
33
5,46
33 5
Ashburton Growth (A)
-7,55
35
-4,12
29
0,46
31
1,33
26
3
*Sanlam IM Global Managed Agg. FoF (A1)
-2,18
111
2,83
60
5,41
34
4,89
24
Sanlam Select Flexible Equity (B4)
-13,62
47
-8,09
35
0,09
32
-0,04
30
3
*FG IP Neptune Growth FoF (A)
-1,39
90
2,45
69
5,38
35
4,96
23
4
Ashburton Defensive (A)
-11,52
45
-10,68
44
-1,00
33
1,52
23
2
*Celtis BCI Managed FoF (A)
2,36
26
5,97
19
5,36
36
4,12
45
3
Cohesive Capital Flexible Prescient (A1)
-10,61
44
-9,82
42
-2,23
34
1,90
20
3
*CS BCI Prudential FoF (B)
0,30
55
4,23
37
5,35
37
4,40
36
4
*Huysamer Opportunity Prescient (A1)
-5,88
32
-5,54
31
-3,34
35
-2,51
35
1
*Olympiad BCI Managed FoF (A)
1,16
42
5,11
27
5,23
38
4,85
25
2
RCI BCI Flexible (A)
-8,90
39
-9,19
38
-3,52
36
-2,36
34
2
Satrix Balanced Index (A1)
-3,32
137
-2,32
149
5,20
39
4,59
32
PSG Flexible (A)
-18,56
51
-19,14
48
-5,45
37
-0,58
31
*Megafin SCI Balanced FoF (B1)
1,74
31
4,16
39
5,01
40
3,77
60
3
Marriott Property Equity (R)
-25,62
54
-25,97
51
-6,17
38
-1,76
32
2
*Sage SCI Long Term Solution FoF (A1)
-1,01
81
2,64
64
4,99
41
4,11
46
4
Stanlib M-M Flexible Property (A)
-15,77
50
-15,67
46
-6,49
39
-1,77
33
1
*Personal Trust Managed (A)
4,29
15
5,03
30
4,95
42
5,18
17
4
ClucasGray Future Titans Prescient (A1)
-23,33
53
-21,07
49
-8,13
40
-7,29
37
1
*Foord Balanced (A)
4,32
14
8,48
15
4,88
43
4,21
41
*Prescient Wealth Balanced FoF (A1)
1,70
33
4,96
31
4,84
44
4,99
22
4
-4,82
36
1
*4D BCI Moderate FoF (A)
0,08
58
4,54
35
4,82
45
3,57
70
3
*Point3 BCI Balanced FoF (A)
-0,33
62
2,82
61
4,81
46
Mosaic Flexible Prescient (A1)
-8,85
38
-10,55
43
-10,64
41
Flagship IP Flexible Value (A1)
-31,03
56
-30,24
52
-13,75
42
Plexus Wealth BCI Flexible Property Income (A)
-35,01
57
-39,50
53
-19,51
43
Methodical Equity Preserver Prescient (B1)
3,45
7
1,94
14
*S-BRO BCI Managed FoF
-0,39
66
2,55
65
4,81
47
Salvo Prime Dynamic Flexible (A1)
-1,34
19
1,67
17
*Stanlib Balanced (A)
1,53
36
2,89
59
4,69
48
3,53
72
3
H4 CPI + 6% (B1)
-0,46
17
1,33
18
*ADB BCI Flexible Prudential FoF (A)
-0,49
71
3,23
51
4,65
49
3,62
69
4
TRG Flexible Prescient FoF (A1)
-2,08
23
1,15
19
*CS BCI Aggressive Prudential FoF (A)
2,15
29
5,83
20
4,64
50
3,54
71
3
NewFunds Volatility Mngd Def. Equity ETF
-1,42
20
-3,73
28
*Southern Charter BCI Growth FoF (A)
0,34
53
3,82
41
4,62
51
3,81
59
4
NewFunds Volatility Mngd Mod. Equity ETF
-14,78
49
-9,75
40
Nedgroup Inv. Core Diversified (B)
-0,81
78
0,83
97
4,56
52
4,38
38
4
Korner BCI Flexible (A)
-9,77
42
-9,77
41
Denker SCI Balanced (A)
-1,23
88
-1,16
135
4,54
53
Baobab SCI Flexible (B1)
-14,59
48
-15,45
45
*Sanlam Private Wealth Balanced
0,49
52
1,68
79
4,47
54
4,31
39
3
NewFunds Volatility Mngd High Grwth Eqty ETF
-26,05
55
-17,07
47
*Nedgroup Inv. Managed (A)
-4,18
150
3,65
46
4,43
55
Marriott Essential Income (C)
-20,04
52
-21,13
50
Kagiso Islamic Balanced (A)
-3,93
148
0,02
113
4,42
56
4,84
27
4
Investec SI BCI Protected Equity (A)
3,17
8
*IP Prudential Equity (A)
0,60
50
3,11
53
4,40
57
PERSONAL FINANCE | 3 r d QUARTER 2020
59
D A T A B A N K *Warwick BCI Balanced FoF (C)
3,10
Sanlam Multi Managed Balanced FoF (A2) *Citadel Balanced H4 (B1)
1 YEAR
3 YEARS
5 YEARS
%
%
6 MONTHS %
RANK
%
1 YEAR
-2,62
126
1,38
86
3 YEARS
5 YEARS
%
%
NAME
22
5,69
22
4,37
58
2,62
96
2
*FAL BCI Balanced (A)
-1,34
89
2,54
66
4,30
59
4,27
40
4
*Wealthworks Prime Managed FoF (A)
-0,43
68
-0,21
116
2,79
119
-1,82
106
0,65
99
4,29
60
3,72
61
3
*Allan Gray Balanced (A)
-2,71
129
0,97
95
2,77
120
*Oasis Balanced (D)
-0,62
72
2,11
73
4,23
61
3,16
81
2
*Stanlib M-M Medium-High Equity FoF (A)
-3,61
143
-1,15
133
2,77
121
*Centaur BCI Balanced (A)
-1,57
96
2,48
68
4,22
62
5,07
19
4
*JBL Sanlam CI Managed FoF (B1)
-4,53
154
-0,79
126
2,73
122
*Old Mutual MM Aggressive Bal FoF (A)
-2,53
124
-0,54
120
2,68
123
4,39
37
3
*Amplify Sanlam CI Balanced (A1)
-4,26
151
-4,08
171
2,66
124
%
RANK
%
RANK
RANK
RANK
RANK
2,81
RANK
RANK
PLEX.
6 MONTHS
PLEX.
NAME
5,16
18
4
2,90
89
2
2,83
92
2
118
*Investhouse Ci Balanced (A)
3,00
23
5,17
25
4,19
63
*Hollard Prime Strategic Assertive FoF (B)
-1,74
101
0,58
103
4,15
64
*Sanlam Multi Managed Mod. Agg. FoF (A1)
-2,53
125
1,27
89
4,14
65
4,18
43
4
*Old Mutual Balanced (A)
-5,25
170
-3,17
161
2,53
125
*Bovest BCI Managed FoF (A)
0,07
59
3,32
49
4,14
66
3,46
77
3
Anchor BCI Diversified Growth (A)
-4,60
156
-2,78
156
2,52
126
*Adviceworx Old Mutual Infl. + 4-5% FoF (B1)
-0,13
60
1,95
74
4,14
67
4,00
51
3
*Assetbase CPI + 6% Prescient FoF (A1)
-5,05
168
-2,55
153
2,50
127
*Northstar SCI Managed (A1)
0,31
54
2,42
70
4,09
68
4,10
47
3
*PWS BCI Moderate FoF (A)
-2,46
122
-0,95
130
2,48
128
*Roxburgh Ci Balanced Plus FoF (A)
-0,40
67
2,71
63
4,04
69
*BCI Prudential FoF (3B1)
-2,73
130
1,07
93
2,45
129
2,89
90
3
AF Investments Performer Managed (A)
-0,77
77
1,33
88
4,02
70
4,53
34
4
*Rebalance BCI Infl. Plus 5 (A)
-2,41
119
-0,56
121
2,42
130
1,87
108
2
*PFPS Ci Balanced FoF (A)
-1,02
82
0,51
105
4,00
71
3,82
58
3
*Absa MM Growth FoF (A)
-1,98
108
-0,10
115
2,42
131
3,71
62
3
*Optimum BCI Managed Growth (A)
-2,64
127
-0,92
129
3,92
72
3,12
84
3
*Seed Balanced (A1)
-4,95
164
-1,04
132
2,40
132
3,08
85
3
*Red Oak BCI Balanced (A)
-1,79
103
2,74
62
3,90
73
PPS Balanced Index Tracker (A)
-4,81
162
-3,29
162
2,34
133
*Noble PP Stanlib Wealth Creator FoF (A)
-0,92
80
2,33
71
3,90
74
AF Investments Real Return Focus (A)
-6,10
175
-5,12
180
2,29
134
2,83
91
2
*AssetMix Ci Balanced (A)
-1,40
91
1,92
76
3,87
75
*Brenthurst BCI Balanced FoF (A)
-4,76
159
-2,54
152
2,29
135
*Discovery Balanced (A)
-3,31
136
-0,89
127
3,85
76
3,90
56
3
*Kanaan BCI Balanced FoF (A)
-1,15
85
-1,64
142
2,26
136
0,54
117
1
*Stanlib M-M Balanced (A)
-2,16
110
0,60
102
3,85
77
4,00
52
4
*Anchor BCI Managed (A)
-1,46
94
-1,16
134
2,24
137
2,79
93
3
Graviton Sanlam CI Balanced (A1)
-2,46
123
0,61
100
3,84
78
3,68
65
3
*Prescient Absolute Balanced (A1)
-8,28
192
-6,36
188
2,24
138
1,03
114
2
Sentio SCI HIKMA Shariah Balanced (B1)
-1,75
102
-1,96
145
3,75
79
*Nedgroup Inv. Core Accelerated (B)
-4,80
161
-3,44
164
2,23
139 3,17
80
3 2
3,96
54
2
*PBi BCI Balanced FoF
-2,37
118
0,90
96
3,73
80
*Sanlam IM Balanced (A)
-5,93
174
-3,07
160
2,20
140
Momentum Target 6 FoF (A)
-5,43
171
-3,58
165
3,71
81
Octagon Sanlam CI Growth FoF (B1)
-4,42
153
-1,87
144
2,07
141
27four Asset Select Prescient FoF (A1)
-1,08
83
0,75
98
3,71
82
4,03
49
3
*Stanlib M-M High Equity FoF (A)
-3,17
134
-0,90
128
1,97
142
2,35
102
*Simplisiti BCI Managed Protector FoF (A)
-1,42
92
1,34
87
3,66
83
3,15
83
3
*PSG Wealth Moderate FoF (A)
-3,88
147
-2,24
148
1,90
143
2,72
94
2,55
98
2
CoreShares OUTmoderate Index (O)
-2,76
131
-2,54
151
3,65
84
*Quattro Ci Growth FoF (A)
-2,37
117
1,03
94
1,83
144
Aylett Balanced Prescient (A1)
-8,29
193
-4,66
176
3,63
85
5,85
8
4
*Select Manager BCI Balanced FoF (A)
-4,58
155
-2,98
158
1,83
145
*Coronation Balanced Plus (A)
-2,78
132
1,74
78
3,61
86
3,68
66
3
*1nvest High Equity Passive Balanced FoF (A)
-4,77
160
-3,81
168
1,70
146
*Kagiso Balanced (A)
-10,59
199
-2,96
157
3,58
87
4,81
28
4
*Median BCI Balanced FoF (A)
-4,61
157
-2,62
155
1,62
147
Obsidian Sanlam CI Balanced (B1)
-5,55
172
-2,59
154
3,57
88
4,06
48
3
Momentum Focus 6 FoF (A)
-6,72
183
-4,74
177
1,47
148
*AS Forum BCI Aggressive FoF (A)
-0,68
75
1,87
77
3,57
89
2,30
104
3
*Element Balanced SCI (A)
-6,38
177
-4,47
174
1,32
149
5,66
11
3
*Absa Prudential FoF (A)
-2,09
109
1,41
85
3,54
90
4,02
50
3
*API BCI Managed FoF (A)
-6,82
185
-5,43
183
1,27
150
1,68
111
2
*Analytics Ci Bal FoF (A)
-0,44
70
1,56
83
3,50
91
3,51
73
3
*Aureus Nobilis BCI Managed (A)
-5,88
173
-3,04
159
1,22
151
*Cadiz Balanced (A)
-6,77
184
-4,95
179
1,21
152
2,45
99
2
2
*Corion Prime Growth (A)
-4,95
165
-4,21
172
1,20
153
2,61
97
2
*Dotport BCI Prudential FoF (A)
-7,26
187
-6,88
190
1,15
154
2,19
105
1
*Amity BCI Managed Select (A)
-9,45
196
-8,58
193
0,93
155
Cordatus Balanced Prescient (A1)
2,43
25
1,13
91
3,48
92
*27four Shariah Balanced Pres. FoF (A1)
-1,42
93
0,16
109
3,47
93
3,70
63
*PPS Balanced FoF (A)
-4,67
158
-1,54
139
3,46
94
3,15
82
*Trésor Sanlam CI Balanced (B1)
-0,67
74
0,60
101
3,39
95
2,44
100
2
*PrivateClient BCI High Equity (B)
-2,31
113
-0,38
119
3,35
96
*RECM Balanced (A)
-5,22
169
-4,50
175
0,88
156
0,39
119
1
*Personal Trust Prudent FoF (A)
-3,37
138
-0,72
125
3,31
97
4,19
42
3
*Absa Managed (A)
-6,45
179
-5,90
187
0,79
157
1,73
109
2
Sage SCI Long Term Growth Solution 7 FoF (A2)
-2,32
114
0,07
112
3,31
98
3,05
88
3
*Skyblue BCI Cumulus Moderate FoF (A)
-2,36
116
-3,30
163
0,76
158
2,33
103
2
*Affinity Ci Growth (A)
-3,75
146
-3,89
169
3,23
99
*Sharenet BCI Balanced (A)
-5,04
167
-5,40
181
0,76
159
2,11
107
2
*Old Mutual Core Balanced (A)
-3,69
144
-2,18
147
3,20
100
3,70
64
3
*Momentum Focus 7 FoF(A)
-7,34
188
-5,41
182
0,74
160
1,72
110
2
*ClucasGray Equilibrium Prescient (A1)
-9,20
194
-6,74
189
3,19
101
4,16
44
3
*BCI Best Blend Balanced (C)
-7,92
190
-5,72
185
0,65
161
1,06
113
2
*NewFunds MAPPS™ Growth
-1,53
95
-2,15
146
3,18
102
2,63
95
Perpetua SCI Balanced (A)
-7,05
186
-2,49
150
0,64
162
0,93
115
1
*Moore Ci Growth FoF (A)
-0,32
61
2,19
72
3,17
103
3,49
75
3
*SA Asset Man BCI Managed (A)
-1,69
99
0,19
108
0,44
163
1,37
112
1
*Marriott Balanced FoF (A)
-2,42
120
-0,72
124
3,16
104
3,91
55
2
*Edge BCI Managed Aggressive
-6,47
180
-5,46
184
-0,11
164 0,93
116
2
*Allan Gray Tax-Free Balanced (A)
-1,91
107
1,57
82
3,14
105
*Capita BCI Balanced (A)
-9,28
195
-8,03
192
-0,34
165
FNB Growth FoF (B1)
-1,58
98
1,20
90
3,14
106
*Caleo BCI Balanced FoF (A)
-8,02
191
-7,18
191
-0,48
166
*Ashburton Balanced (A)
-1,82
105
-1,19
136
3,14
107
3,48
76
2
Prime Shiraz Prudential Aggressive FoF (A)
-10,97
200
-8,76
194
-1,53
167
0,44
118
1
*Select BCI Balanced (A)
-6,47
181
-3,66
166
3,13
108
2,40
101
2
*Ampersand SCI CPI Plus 6 FoF (A)
-9,78
198
-12,78
196
-2,32
168
-0,21
121
1
*AF Investments Balanced FoF (A)
-1,70
100
1,93
75
3,13
109
4,00
53
3
*Imalivest SCI Balanced (A)
-17,41
204
-14,08
197
-2,34
169 1
*Ashburton M-M Prudential Flexible (A1)
-4,35
152
0,07
111
3,11
110
Consilium BCI Flexible (A)
1,01
46
-0,67
123
-3,59
170
-1,57
123
*Old Mutual MM Balanced FoF (A)
-1,80
104
0,54
104
3,05
111
3,49
74
3
*PSG Balanced (A)
-13,30
201
-14,12
198
-3,68
171
0,03
120
*Stanlib M-M Shari'ah Balanced FoF (A)
-3,72
145
-1,34
137
3,04
112
3,66
67
2
*Plexus Wealth BCI Balanced (A)
-15,91
202
-15,29
199
-4,19
172
-0,64
122
1
*Signature BCI Balanced FoF (A)
-1,57
97
-0,01
114
3,04
113
*Bridge Balanced (A)
-16,68
203
-17,95
200
-5,95
173
-3,05
124
1
Momentum Target 7 FoF (A)
-6,30
176
-4,39
173
3,01
114
*Bridge Managed Growth (A)
-22,87
205
-26,08
201
-9,90
174
-5,19
125
1
*GCI SCI Balanced Plus FoF (A)
-1,17
86
0,46
106
2,97
115
3,05
87
2
*High Street High Equity Prescient (A1)
17,07
1
22,59
2
*APS Ci Managed Growth (A)
-0,91
79
2,52
67
2,85
116
3,07
86
3
IP Balanced (A)
10,51
4
16,58
4
*Prudential Balanced (A)
-4,94
163
-4,05
170
2,85
117
3,63
68
3
PPS Managed (A2)
4,55
13
11,33
8
60
PERSONAL FINANCE | 3 r d QUARTER 2020
6 MONTHS
*Innovation BCI Balanced FoF (A)
5,87
%
1 YEAR
RANK
11
%
9,12
RANK
3 YEARS
5 YEARS
%
%
RANK
RANK
14
NAME
6 MONTHS
*Visio BCI Unconstrained Fixed Interest (A)
3,02
17
5,79
%
1 YEAR
RANK
%
RANK
47
3 YEARS
5 YEARS
%
%
RANK
7,40
32
RANK
PLEX.
NAME
PLEX.
D A T A B A N K
Kruger Ci Balanced (A)
2,64
24
5,72
21
*Novare Capital Preserver FoF (A1)
2,04
45
6,03
31
7,38
33
7,15
36
3
Star Prime Balanced (C)
2,17
28
5,65
23
*Prescient Income Provider (A1)
1,61
58
5,48
52
7,37
34
7,97
13
3
NFB Ci Managed Growth FoF (A)
2,24
27
5,13
26
*Personal Trust Income (A)
2,49
27
6,23
26
7,36
35
7,48
31
3
Synergy Ci Growth FoF (A)
1,69
34
4,22
38
Anchor BCI Flexible Income (A)
2,10
40
5,84
43
7,26
36
7,70
21
4
*Chrome Ci Growth (A)
1,61
35
3,75
43
Graviton Sanlam CI Flexible Income (A1)
2,05
44
5,85
42
7,26
37
7,74
20
3
*Imali BCI Passive Balanced (A)
1,92
30
3,01
55
*Hollard Prime Dynamic Income (B)
1,45
64
5,27
59
7,18
38
7,67
23
3 3
Autus Prime Diversified (A)
0,75
49
2,96
56
*FG IP Jupiter Income FoF (A)
1,87
51
5,46
53
7,17
39
7,56
27
*TRG Balanced Prescient FoF (A1)
-0,36
63
2,91
57
Trésor Sanlam CI Income (B1)
1,64
57
4,84
71
7,15
40
7,04
40
2
*WellsFaber Balanced RECM FoF (A)
-3,40
139
2,90
58
*Coronation Strategic Income (A)
1,11
72
4,50
76
7,10
41
7,74
19
3
*RSA BCI Balanced (A)
1,11
43
1,67
80
Ashburton Stable (A)
1,47
62
4,89
70
7,08
42
7,25
35
3
*Matrix NCIS Balanced (A2)
-0,36
65
1,44
84
*Rowan Capital BCI Income FoF (A)
1,18
69
4,79
72
7,06
43
*10X High Equity Index (A)
-2,19
112
-0,22
117
*Caleo BCI Active Income (A)
0,78
80
4,55
75
7,05
44
Absa Multi Managed Core Growth (C)
-3,15
133
-0,30
118
*Engelberg IP Income (A)
1,90
48
5,87
40
7,01
45
*BlueAlpha BCI Balanced (C)
-3,46
140
-0,64
122
*FNB Income FoF (B1)
1,47
63
5,07
64
7,01
46
*PMK Managed Prescient FoF (A3)
-4,95
166
-0,97
131
*Simplisiti BCI Income Plus FoF (A)
0,69
82
5,06
67
6,99
47
7,14
37
3
CoreShares Wealth Accumulation (A)
-2,35
115
-1,41
138
*Sanlam IM Active Income (A1)
1,83
52
5,32
57
6,98
48
7,39
32
3
*Sequoia BCI Managed Growth FoF (A)
-4,07
149
-1,60
140
*Prescient SA Income Provider (A1)
-0,54
87
3,14
86
6,97
49
7,50
29
3
NMRQL Sanlam CI Balanced (A)
0,19
56
-1,61
141
*Old Mutual MM Enhanced Income FoF (A)
1,18
70
4,76
73
6,91
50
7,09
38
2
*Absa Multi Managed Passive Growth (A)
-2,46
121
-1,75
143
*PSG Diversified Income (A)
2,13
39
4,96
69
6,71
51
7,27
34
Sentio Sanlam CI Balanced (B2)
-3,56
142
-3,69
167
Select BCI Fixed Income (A)
2,27
33
6,03
33
6,68
52
6,96
42
*Stelburg BCI Balanced FoF (A)
-7,40
189
-4,83
178
PPS Flexible Income (A)
0,92
78
4,31
78
6,67
53
7,06
39
GraySwan SCI Aggressive FoF (A)
-6,59
182
-5,72
186
*Ashburton M-M Income (A1)
1,04
74
4,39
77
6,62
54
Perspective Balanced Prescient (A1)
-9,76
197
-9,32
195
*27four Shariah Income Prescient (A1)
4,55
6
7,79
10
6,21
55
2
*Visio BCI Balanced (A)
8,06
6
*Capita BCI Real Income (A)
-1,04
89
2,10
88
6,14
56
6,65
45
2
*Celerity Ci Balanced (A)
-2,69
128
Southchester IP Optimum Income (A)
2,77
20
5,94
36
6,12
57
6,03
50
2
Ngwedi Global Balanced SNN (I1)
-3,52
141
*Seed Income (A1)
-0,74
88
3,54
82
5,98
58
6,71
44
2
PSG Multi-Management Growth FoF (D)
-6,43
178
*PSG Wealth Income FoF (A)
0,92
79
3,93
81
5,93
59
6,51
46 41
Sasfin BCI Flexible Income (A)
0,95
77
5,77
48
9,71
1
*Mi-Plan IP Enhanced Income (A1)
2,47
28
7,68
12
9,64
2
9,42
3
5
Marriott Core Income (A)
5,88
4
10,06
2
9,41
3
8,64
6
4
Sasfin BCI Optimal Income (A)
2,23
36
5,36
54
5,44
63
Marriott High Income FoF (A)
6,03
3
10,17
1
9,31
4
8,37
8
4
*Prudential Enhanced Income (A)
-0,40
86
2,63
87
5,33
64
BCI Income Plus (C)
0,96
76
6,03
30
8,87
5
9,23
4
5
Sanlam Alternative Income (A1)
2,31
31
5,00
68
5,24
65
Momentum SA Flexible Fixed Interest (A)
-5,17
95
-4,09
92
4,40
66
5
Harvard House BCI Flexible Income (A)
-1,81
91
0,92
89
3,99
67
5,34
52
*Ninety One Absolute Balanced (A)
2,27
32
3,31
85
3,89
68
4,90
54
INCOME FUNDS
*GCI SCI Income FoF (A)
1,42
65
5,07
65
5,90
60
6,98
Sanlam Diversified Income FoF (A2)
2,19
37
5,21
61
5,82
61
5,98
51
1
*Stanlib Flexible Income (A)
0,98
75
5,20
62
5,72
62
6,82
43
2
6,14
48
2
5,30
53
Granate SCI Multi Income (B)
3,83
12
8,19
9
8,85
6
Fairtree Flexible Income Plus Prescient (A1)
1,40
66
5,74
49
8,77
7
9,82
1
*Saffron SCI Opportunity Income (A)
2,08
41
6,71
18
8,64
8
9,46
2
*Sanlam Select Strategic Income (A1)
4,14
10
8,85
5
8,57
9
8,15
10
4
Bridge High Income (A)
-1,16
90
-0,55
90
2,78
69
4,46
56
1
Sharenet BCI Income Plus (A)
2,65
22
6,81
16
8,54
10
8,43
7
5
*Element Specialist Income SCI (A)
-4,66
94
-2,02
91
2,47
70
6,09
49
2
*Momentum Income Plus (A)
2,16
38
6,63
20
8,45
11
8,80
5
5
CoreShares Preftrax ETF
-19,54
96
-14,78
95
1,79
71
4,73
55
Marriott Income (R)
4,20
9
8,32
7
8,30
12
7,94
16
4
AF Investments Infl. Linked Bond (A)
-3,32
92
-4,47
93
0,13
72
1,38
58
1
AF Investments Enhanced Income (A)
2,59
25
6,46
24
8,28
13
7,95
15
4
Momentum Infl. Linked Bond (A)
-4,08
93
-5,21
94
-0,30
73
1,60
57
1
Saffron SCI Active Bond (A)
1,87
50
6,56
21
8,27
14
7,81
17
*Matrix NCIS Stable Income (A1)
4,47
7
8,78
6
Absa Tactical Income (A)
4,11
11
8,99
4
8,20
15
Momentum Flexible Income (A)
6,56
1
8,25
8
Absa Flexible Income (A1)
2,87
19
7,37
13
8,19
16
*Dotport BCI Income (A)
3,52
13
7,69
11
*Oasis Crescent Income (A)
6,09
2
9,81
3
8,11
17
7,55
28
*Optimum BCI Income (A)
2,56
26
6,50
22
*Ninety One Diversified Income (A)
3,19
15
6,78
17
8,01
18
8,00
11
Prime Flexible Income (A)
2,43
29
6,12
27
3
*Cadiz Absolute Yield (A)
2,02
46
5,07
66
7,95
19
7,79
18
4
*TRG Income Prescient FoF (A1)
2,39
30
6,09
28
*Autus Prime Income Plus (A)
3,40
14
7,28
14
7,81
20
8,25
9
4
*PMK Income Prescient FoF (B4)
2,24
34
6,06
29 32
*Counterpoint SCI Enhanced Income (A1)
1,07
73
5,23
60
7,69
21
7,97
12
4
*Quantum BCI Income (C)
2,07
43
6,03
*Discovery Diversified Income (A)
3,17
16
6,66
19
7,66
22
7,67
24
4
*Investec W&I BCI Active Income FoF (A)
2,24
35
6,03
34
BCI Best Blend Flexible Income (C)
1,54
60
5,34
56
7,62
23
7,70
22
3
*Thyme Wealth IP Income Multi Asset (A)
0,17
84
6,02
35
7,96
14
3
Megafin Sanlam CI Income FoF
2,07
42
5,93
37
Sygnia Enhanced Income (A)
1,51
61
5,92
39 41
*Nedgroup Inv. Flexible Income (A)
1,77
55
5,81
46
7,58
24
*Select Manager BCI Income FoF (C)
2,69
21
6,49
23
7,57
25
*Northstar SCI Income (A1)
4,21
8
7,27
15
7,56
26
7,33
33
3
Absa Multi Managed Income (C)
2,88
18
5,85
*Cadiz BCI Enhanced Income (C)
1,90
49
6,24
25
7,53
27
7,57
25
4
Investec SI BCI Enhanced Income (A)
2,59
24
5,83
45
Momentum Optimal Yield (A)
2,64
23
5,92
38
7,52
28
6,44
47
3
Ampersand SCI Income (A)
1,61
59
5,68
50
*Stanlib M-M Absolute Income (A)
1,78
54
5,30
58
7,47
29
7,57
26
3
*PortfolioMetrix BCI Income FoF (A)
0,72
81
4,66
74
7,47
30
*Momentum Diversified Income (B1)
1,79
53
5,84
44
7,42
31
7,50
30
3
Octagon SCI Flexible Income FoF (B1)
1,90
47
5,58
51
*Intellivest BCI Income (A)
1,76
56
5,35
55
Salvo Prime Dynamic Income (A1)
1,15
71
5,15
63
PERSONAL FINANCE | 3 r d QUARTER 2020
61
2
6 MONTHS
Laurium Income Prescient (A1)
-0,07
%
1 YEAR
RANK
%
85
RANK
4,31
79
3 YEARS
5 YEARS
%
%
RANK
RANK
NAME
6 MONTHS
*Old Mutual Core Conservative (A)
1,39
%
1 YEAR
RANK
61
%
3,62
RANK
73
3 YEARS
5 YEARS
%
%
5,53
RANK
RANK
PLEX.
NAME
PLEX.
D A T A B A N K 56
*Kagiso Islamic High Yield (A)
1,20
68
4,09
80
*PrivateClient BCI Low Equity (B)
0,73
83
3,26
81
5,50
57
*10X Defensive Index (A)
1,34
67
3,53
83
Octagon Sanlam CI Cautious FoF (B1)
1,29
64
4,20
60
5,50
58
Ashburton Diversified Income (A)
0,27
83
3,43
84
PSG M-M Multi-Asset Income FoF (D)
4,82
5
*Rezco Stable (A)
10,14
1
17,09
1
9,68
1
*Fin. Fitness Stable IP FoF (A)
3,56
19
7,69
11
9,42
Sanlam Select Wealth Protector (B5)
4,16
12
10,83
4
*H4 Stable (B1)
3,34
20
6,20
Absa Infl. Beater (A)
1,68
54
*Nedgroup Inv. Stable (A)
8,06
3
*Sygnia Skeleton Balanced 40 (A)
3,16
22
*Select BCI Cautious (A)
-0,77
*Ninety One Cautious Managed (A)
*Stanlib Balanced Cautious (A)
4,15
13
6,29
23
5,49
59
5,17
54
3
*Adviceworx Old Mutual Infl. + 2-3% FoF (B1)
0,80
78
3,83
67
5,49
60
5,61
42
3
*AssetMix Ci Conservative (A)
2,97
24
5,66
34
5,41
61
*Noble PP Stanlib Strat Inc FoF (A)
0,55
87
3,52
75
5,39
62
5,30
50
2
2
*Old Mutual Real Income (A)
-0,50
106
1,95
106
5,38
63
5,83
29
3
8,76
3
*1st Fusion Ci Temperate (A)
1,80
50
5,43
37
5,36
64
4,18
76
3
25
8,57
4
6,68
11
5
*Satrix Low Equity Balanced Index (A1)
0,74
82
2,66
101
5,34
65
5,27
51
6,05
27
8,49
5
7,01
9
5
13,35
2
8,44
6
7,23
6
6,60
17
7,99
7
7,28
4
111
4,08
62
7,98
8
6,59
14
5,99
6
9,57
7
7,97
9
7,50
2
*Sanlam Select Defensive Balanced (A1)
3,91
15
6,54
20
7,84
10
7,58
1
*Instit BCI Stable FoF (A)
2,93
25
7,43
12
7,59
11
*Absa Smart Alpha Defensive (A)
6,28
5
10,53
5
7,48
12
*Multi Asset IP Balanced Defensive (B1)
4,41
10
8,38
9
7,46
13
6,66
13
*Platinum BCI Income Provider FoF (A)
4,46
8
8,62
8
7,44
14
6,76
10
*Assetbase CPI + 2% Prescient FoF (A1)
1,91
46
5,76
33
7,17
15
*Discovery Cons Dyn Asset Optimiser FoF (A)
3,24
21
6,98
15
7,16
16
LOW EQUITY FUNDS 7,05
7
5
*Old Mutual Capital Builder (A)
4,30
11
4,86
48
5,33
66
4,56
69
2
*GCI SCI Stable FoF (A)
1,19
65
3,97
63
5,31
67
4,88
62
2
5
*Analytics Ci Cautious FoF (A)
1,84
48
4,28
59
5,26
68
5,70
36
3
5
*Hollard Prime Strategic Defensive FoF (B)
-0,21
99
2,84
95
5,26
69
5,84
28
3
*Brenthurst BCI Cautious FoF (A)
1,87
47
4,82
51
5,21
70
*Cadiz Stable (A)
0,74
81
3,07
89
5,20
71
5,48
44
3
*AF Investments Stable FoF (A)
0,95
71
3,93
64
5,19
72
5,08
58
3
*Coronation Balanced Defensive (A)
-0,21
98
2,80
96
5,19
73
5,40
48
3
4
*Quattro Ci Cautious FoF (A)
1,63
55
4,54
56
5,14
74
4
*Moore Ci Stable FoF (A)
2,18
37
4,58
55
5,11
75
4,99
60
3
*Allan Gray Stable (A)
-0,41
103
3,10
88
5,10
76
7,03
8
4
*Stanlib M-M Low Equity FoF (A)
0,21
93
3,13
86
4,94
77
5,12
56
3
5,27
52
3
4,58
68
2
5
*Sanlam Multi Managed Cautious FoF (A1)
2,76
28
6,46
21
7,05
17
6,52
15
4
*Affinity Ci Cautious (A)
0,45
89
1,72
112
4,92
78
*NFB Ci Stable (A)
2,19
36
5,15
43
7,03
18
7,34
3
5
*Old Mutual MM Cautious FoF (A)
0,03
96
3,22
83
4,88
79
*Autus Prime Stable (A)
6,30
4
9,95
6
7,02
19
5,52
43
4
*Investhouse Ci Cautious (A)
3,76
16
5,85
31
4,88
80
*1st Fusion Ci Guarded (A)
8,10
2
11,36
3
6,99
20
5,61
40
3
*Southern Charter BCI Defensive FoF (A)
2,37
34
4,65
54
4,86
81
*Sanlam Multi Managed Conservative FoF (A1)
2,04
41
5,66
35
6,98
21
7,24
5
5
*Wealthworks Prime Cautious FoF (A)
0,24
92
2,89
94
4,85
82
*Sanlam Multi Managed Defensive FoF (A2)
3,65
17
7,37
13
6,82
22
6,13
20
4
*Stanlib M-M Defensive Balanced (B1)
0,90
72
2,94
92
4,81
83
5,13
55
3
*Dynasty Ci Wealth Preserver (A2)
1,48
59
4,10
61
6,77
23
5,75
33
4
*BCI Stable FoF (3B1)
-2,08
135
1,62
114
4,68
84
5,42
47
3
*Wealth Associates BCI Cautious FoF
-0,52
107
3,20
84
6,75
24
*Trésor Sanlam CI Stable (B1)
0,81
77
3,37
80
4,62
85
4,17
77
3
Denker SCI SA Stable (A)
2,70
29
5,21
42
6,75
25
*AS Forum BCI Cautious FoF (A)
0,81
76
3,25
82
4,59
86
4,37
71
3
*Counterpoint SCI Cautious (A1)
0,97
70
3,69
71
6,49
26
5,95
25
4
*APS Ci Cautious (A)
0,85
73
3,77
70
4,50
87
5,19
53
3
6,67
12
4
*N-e-FG BCI Income Provider FoF (A)
-0,29
101
3,44
78
4,47
88
4,60
67
3
*PWS BCI Cautious FoF (A)
1,34
63
2,66
99
4,38
89
Sanlam IM Infl. Plus (A)
1,81
49
5,41
38
6,45
27
FNB Stable FoF (B1)
1,45
60
4,83
50
6,39
28
*Optimum BCI Stable (A)
2,07
39
4,78
52
6,39
29
6,09
22
4
Sage SCI Protection FoF (A2)
0,82
75
3,16
85
4,37
90
4,83
64
2
*Personal Trust Conservative Managed (A)
5,63
7
6,55
19
6,39
30
5,97
24
4
Prime Cabernet Stable FoF (A)
-1,88
131
1,16
116
4,35
91
4,92
61
3
*Discovery Cautious Balanced (A)
0,36
91
3,00
91
6,32
31
5,91
26
4
*Bovest BCI Conservative FoF (A)
1,62
56
4,92
47
4,35
92
4,24
74
2
AF Investments Conservative Passive (A1)
2,51
33
3,59
74
6,30
32
*Absa Multi Managed Preserver FoF (A)
0,04
95
2,75
97
4,28
93
4,85
63
2
4,71
65
2
4,13
78
2
*Mi-Plan IP Infl + 3 (B5)
0,77
80
3,90
65
6,29
33
5,68
37
4
*Old Mutual Stable Growth (A)
-2,15
136
-0,44
132
4,22
94
*Nedgroup Investments Core Guarded (B)
2,10
38
4,46
57
6,27
34
6,19
19
4
*Signature BCI Stable FoF (A)
-0,65
109
1,83
108
4,22
95
5,03
59
3
*Oasis Crescent Balanced Stable FoF (D)
4,08
14
8,11
10
6,23
35
*Roxburgh Ci Conservative FoF (A)
2,83
27
5,88
30
6,22
36
*Amity BCI Stable Select (A)
-0,24
100
1,34
115
4,21
96
Absa Multi Managed Core Preserver (C)
-1,59
127
1,68
113
4,21
97
*IP Diversified Inc. FoF (A1)
4,46
9
7,04
14
6,18
37
5,71
34
3
*Quantum BCI Capital Plus FoF (A)
-0,80
112
2,71
98
4,18
98
Graviton Sanlam CI Low Equity (A1)
1,91
45
5,03
44
6,15
38
5,81
30
3
*Argon BCI Absolute Return (A)
-1,76
129
0,23
121
4,15
99
*Celtis BCI Conservative FoF (A)
2,68
30
6,57
18
6,15
39
5,61
41
3
*SA Asset Man BCI Cautious (A)
0,70
84
3,63
72
4,06
100
4,47
70
2
*S-BRO BCI Defensive FoF (A)
2,56
31
6,33
22
6,12
40
5,70
35
3
*BCI Best Blend Cautious (C)
-1,04
117
1,84
107
4,03
101
4,22
75
3
*4D BCI Cautious FoF (A)
2,36
35
6,24
24
6,10
41
5,43
46
3
*Stewart BCI Absolute Return Blend FoF (A)
-1,39
120
1,98
105
3,95
102
5,09
57
2
*Point3 BCI Conservative FoF (A)
1,74
51
5,32
39
6,05
42
*Dinamika BCI Conservative FoF (A)
-0,47
105
2,93
93
3,95
103
3,57
84
2
*Sanlam IM Managed Conservative FoF (A1)
1,54
57
4,99
46
6,04
43
*Aureus Nobilis BCI Cautious (A)
-1,73
128
1,76
111
3,93
104
6,52
16
4
*Sygnia CPI + 2% (A)
1,15
66
3,78
68
6,04
44
5,76
32
*Rebalance BCI Balanced FoF (A)
-0,66
110
1,83
109
3,85
105
3,87
83
2
*27four Stable Prescient FoF (A1)
0,77
79
3,38
79
6,04
45
6,21
18
4
*Absa Absolute (A)
-1,91
132
-0,33
131
3,80
106
3,48
86
1
*FG IP Venus Cautious FoF (A)
2,05
40
5,98
29
6,02
46
6,32
17
4
CoreShares OUTcautious Index (O)
-0,53
108
0,22
122
3,77
107
PPS Conservative FoF (A)
0,99
69
3,77
69
5,93
47
5,65
38
Momentum Target 3 FoF (A)
-1,58
126
0,16
123
3,75
108
*Montrose BCI Cautious FoF (A)
1,74
52
4,83
49
5,84
48
5,76
31
3
*Dotport BCI Cautious FoF (A)
-2,69
140
-1,08
136
3,55
109
3,93
81
2
*Sasfin BCI Stable (A)
-1,54
123
0,92
118
5,71
49
5,45
45
3
*Select Manager BCI Cautious FoF (A)
-1,37
119
0,13
125
3,41
110
4,24
73
2
*Sanlam IM Managed Cautious FoF (A1)
0,03
97
3,89
66
5,70
50
5,90
27
4
*PSG Wealth Preserver FoF (A)
-1,14
118
0,10
126
3,28
111
4,03
80
*PFPS Ci Cautious FoF (A)
1,15
67
3,52
76
5,67
51
6,10
21
4
*API BCI Stable FoF (A)
-1,49
122
-0,23
129
3,22
112
3,93
82
*Corion Prime Stable (A)
1,01
68
3,48
77
5,65
52
6,05
23
4
*Edge BCI Cautious (A)
-2,17
137
-0,79
135
3,06
113
2
*Anchor BCI Diversified Stable (A)
0,37
90
3,12
87
5,64
53
*NewFunds MAPPS™ Protect
-0,91
116
-1,17
138
3,06
114
3,07
88
*PBi BCI Conservative FoF (A)
1,38
62
4,43
58
5,63
54
*Oasis Balanced Stable FoF (D)
-3,09
142
0,04
127
2,98
115
2,97
90
2
*Megafin SCI Stable FoF (B1)
1,99
44
4,71
53
5,57
55
*Momentum Focus 3 Fof (A)
-1,97
133
-0,56
133
2,86
116
3,51
85
1
62
PERSONAL FINANCE | 3 r d QUARTER 2020
5,39
49
3
6 MONTHS
3 YEARS
5 YEARS
%
RANK
%
1 YEAR RANK
%
RANK
%
*Kagiso Stable (A)
-12,87
157
-7,37
149
2,81
117
BCI Real Return (A)
-10,06
155
-10,25
151
2,79
*Element Real Income SCI (A)
-5,03
147
-2,38
142
*Capita BCI Cautious (A)
-3,81
145
-2,15
141
*Seed Stable (A1)
-3,04
141
0,57
Momentum SA Defensive Growth (A)
-5,04
148
*1nvest Low Equity Passive Balanced FoF (A)
-1,55
Allan Gray Optimal (A) *Ashburton Targeted Return (B4)
NAME
6 MONTHS
1 YEAR
3 YEARS
5 YEARS
%
%
2
*Optimum BCI Balanced (A)
-0,05
38
2,01
51
5,20
19
*Quattro Ci Moderate FoF (A)
3,40
7
6,21
7
5,19
20
RANK
PLEX.
NAME
PLEX.
D A T A B A N K 4,26
29
3
22
4,46
27
4
5,01
23
5,30
8
4
45
4,97
24
4,51
24
3
2,00
52
4,91
25
30
3,08
34
4,90
26
4,91
10
3
69
0,90
61
4,88
27
4,84
15
4
2,08
47
4,78
28
60
2,02
50
4,77
29
4,62
20
23
4,35
19
4,75
30
4,65
18
4
-3,56
84
-2,29
83
4,69
31
3,59
41
3
FNB Moderate FoF (B1)
-0,30
48
2,22
46
4,60
32
*Melville Douglas Stanlib Med. Equity FoF (A)
-2,23
75
0,88
62
4,58
33
3,80
39
4
*FG IP Saturn Flexible FoF (A)
-0,16
41
4,11
23
4,56
34
4,91
12
4
26
*ADB BCI Balanced FoF (A)
-0,63
55
2,80
37
4,53
35
3,92
36
3
28
*AssetMix Ci Moderate (A)
0,41
33
2,65
39
4,52
36
RANK
%
RANK
%
RANK
RANK
4,68
66
118
1,70
95
2,73
119
5,62
39
3
*Roxburgh Ci Balanced FoF (A)
1,16
24
4,40
18
5,18
21
2,66
120
3,43
87
2
*Graviton Sanlam CI Capital Growth (A1)
0,75
27
3,76
28
5,16
119
2,33
121
4,03
79
2
*Hollard Prime Strategic Balanced FoF (B)
-0,28
47
2,36
43
-3,96
145
2,11
122
*Mi-Plan IP Inf + 5 (B5)
-0,17
42
2,22
124
-0,27
130
1,84
123
*Assetbase CPI + 4% Prescient FoF (A1)
-0,80
58
-5,45
149
-1,91
140
1,71
124
4,36
72
1
*Adviceworx Old Mutual Infl. + 3-4% FoF (B1)
0,56
-6,56
152
-6,02
147
1,21
125
2,68
92
1
*Discovery Moderate Balanced (A)
-1,60
*Skyblue BCI Kimberlite Cautious FoF (A)
0,17
94
-1,44
139
1,11
126
2,73
91
1
*PrivateClient BCI Medium Equity (B)
-0,53
53
*Prudential Inflation Plus (A)
-5,94
150
-5,41
146
0,88
127
2,50
93
1
PPS Moderate FoF (A)
-0,92
*PSG Stable (A)
-7,56
154
-7,07
148
0,79
128
3,05
89
*Montrose BCI Moderate FoF (A)
1,44
*Ampersand SCI CPI Plus 2 FoF (A)
-6,54
151
-8,31
150
0,01
129
2,31
94
1
*Fairtree Flexible Balanced Prescient (A1)
*Plexus Wealth BCI Conservative (A)
-12,36
156
-11,58
152
-2,42
130
1,23
96
1
*Bridge Stable Growth (A)
-16,55
158
-19,00
153
-6,27
131
-2,06
97
1
Kruger Ci Prudential (A)
3,60
18
6,72
16
Laurium Stable Prescient (A1)
2,92
26
6,12
Ginsburg & Selby SCI Stable FoF (A1)
2,02
42
6,03
Autus Prime Cautious (A)
2,54
32
5,84
32
*Noble PP Stanlib Balanced FoF (A)
0,40
34
3,26
31
4,49
37
4,48
25
2
Synergy Ci Conservative FoF (A)
2,99
23
5,65
36
*S-BRO BCI Balanced FoF (A)
1,48
22
4,62
17
4,46
38
3,85
38
3
Constellation Protected Growth Prescient (A1)
2,01
43
5,25
40
*Prescient Positive Return QuantPlus (A1)
-4,83
89
-2,93
86
4,42
39
4,09
32
2
Star Prime Stable (C)
1,69
53
5,24
41
*Foster BCI Moderate FoF (A)
-0,86
59
2,43
42
4,39
40
3,39
45
3
*TRG Stable Prescient FoF (A1)
1,48
58
5,02
45
1st Fusion Diversified Growth (A)
-0,53
52
0,72
65
4,34
41
*RSA BCI Cautious (C)
0,84
74
3,02
90
*PFPS Ci Moderate FoF (A)
-0,77
57
0,95
59
4,29
42
4,61
21
3
*NFB Ci Defensive FoF (A)
0,57
86
2,66
100
*Analytics Ci Mod FoF (A)
0,17
36
2,46
41
4,26
43
4,47
26
3
*WellsFaber Stable RECM FoF (A)
-0,43
104
2,48
102
*27four Balanced Prescient FoF (A1)
-1,14
62
0,82
63
4,22
44
4,75
17
4
Absa Multi Managed Passive Preserver (A)
-0,86
114
2,32
103
*Old Mutual MM Defensive FoF (A)
-0,26
46
2,68
38
4,22
45
4,57
22
3
*10X Low Equity Index (A)
0,52
88
2,28
104
*GCI SCI Balanced FoF (A)
-0,25
45
1,97
53
4,17
46
3,90
37
2
*Abax SA Absolute Prescient (A1)
-1,42
121
1,76
110
*IP Prud. FoF (A1)
2,37
14
4,18
21
4,07
47
3,46
43
1
4,05
33
3
2,98
51
2
*Sequoia BCI Stable FoF (A)
-1,57
125
1,15
117
*Moore Ci Balanced FoF (A)
0,89
25
3,41
29
3,98
48
PPS Defensive (A)
-1,87
130
0,32
120
CoreShares OUTstable Index (O)
-1,34
64
-0,53
72
3,96
49
*Stelburg BCI Cautious FoF (A)
-2,36
139
0,13
124
*Anchor BCI Diversified Moderate (A)
-2,20
73
0,02
71
3,95
50
GraySwan SCI Cautious FoF (A)
-2,33
138
0,01
128
*AS Forum BCI Moderate FoF (A)
0,37
35
2,90
36
3,77
51
Momentum Defensive Growth (A)
-3,10
143
-0,72
134
*Affinity Ci Moderate (A)
-1,69
71
-1,21
75
3,75
52
CoreShares Stable Income (A)
-3,11
144
-1,14
137
*Quantum BCI Balanced FoF (A)
-1,57
67
1,58
57
3,73
53
3,04
50
3
MFS SCI Cautious FoF (B1)
-4,89
146
-3,13
143
*APS Ci Moderate (A)
-0,39
50
2,92
35
3,59
54
3,94
35
3
Prescient Absolute Defensive (A2)
-7,40
153
-3,77
144
*Destiny BCI Prudential FoF (A)
-1,30
63
0,56
67
3,52
55
2,91
52
2
*Celerity Ci Conservative (A)
0,60
85
Momentum Target 4 FoF (A)
-3,66
85
-2,31
84
3,51
56
*Instit BCI Managed (A)
-0,33
102
*Stanlib M-M Medium Equity FoF (A)
-1,03
61
1,59
56
3,40
57
3,57
42
3
PSG Multi-Management Cautious FoF
-0,84
113
*Stanlib Absolute Plus (A)
-0,09
39
2,02
49
3,36
58
4,42
28
2
Ngwedi Absolute Return SNN (I1)
-0,89
115
Kagiso Protector (A)
-9,43
96
-3,28
88
3,32
59
4,84
14
4
Mianzo CPI + 3% ACI (A1)
-2,06
134
*Old Mutual Albaraka Balanced (A)
-3,08
81
-1,66
79
3,30
60
4,03
34
3
Absa Multi Managed Core Accumulation (C)
-2,30
76
0,68
66
3,29
61 4,12
31
3
MEDIUM EQUITY FUNDS *Counterpoint SCI Moderate (A1)
3,72
4
6,08
8
7,55
1
5,62
6
5
*Absa MM Accumulation FoF (A)
-0,74
56
0,94
60
3,21
62
*Platinum BCI Balanced FoF (A)
5,32
1
10,00
3
7,51
2
6,03
4
5
Momentum Target 5 FoF (A)
-6,21
93
-4,90
94
3,17
63
*Foord Conservative (A)
5,30
2
11,41
1
7,48
3
6,28
3
5
*Old Mutual Mod Balanced (A)
-4,94
90
-3,30
89
3,12
64
3,63
40
3
*Sygnia Skeleton Balanced 60 (A)
2,10
15
5,21
12
7,40
4
6,30
2
5
*Absa Balanced (A)
-2,32
77
-1,25
76
3,10
65
3,10
48
3
*Aeon Balanced Prescient (A1)
4,07
3
7,05
4
6,77
5
6,42
1
5
*Coronation Capital Plus (A)
-1,76
72
0,44
69
2,97
66
3,35
46
2
*Sasfin BCI Balanced (A)
0,77
26
4,74
15
6,77
6
5,85
5
5
*Capstone BCI Balanced (A)
-2,22
74
-0,75
73
2,33
67
*Discovery Mod Dyn Asset Optimiser FoF (A)
2,08
16
6,02
9
6,48
7
*Old Mutual Dynamic Floor (A)
-3,35
82
-1,59
78
2,30
68
3,10
49
1
*Wealth Associates BCI Moderate FoF
-1,56
66
2,06
48
6,41
8
IFM Balanced Value FoF (A)
3,64
6
10,28
2
2,27
69
0,49
61
2
*Multi Asset IP Balanced (B1)
1,88
18
5,73
11
6,29
9
5,39
7
4
Momentum Focus 4 FoF (A)
-2,99
79
-1,77
80
2,21
70
*Mi-Plan IP Infl. + 7 (B5)
-0,21
44
1,92
55
6,10
10
4,55
23
4
*Select Manager BCI Moderate FoF (A)
-3,01
80
-1,92
82
2,18
71
2,87
53
2
*Southern Charter BCI Balanced FoF (A)
2,53
13
6,54
6
6,04
11
4,91
11
4
*Sage SCI Moderate Solution FoF (A2)
-3,84
86
-1,91
81
2,14
72
2,75
54
2
*Absa Wealth Preserver Plus (A)
3,72
5
4,18
22
5,98
12
3,46
44
2
*SA Asset Man BCI Moderate (A)
-1,67
70
0,48
68
1,79
73
2,46
56
1
*Sanlam Select Absolute (A1)
1,98
17
3,91
25
5,93
13
3,10
47
3
*Edge BCI Balanced (A)
-4,40
88
-3,07
87
1,42
74
*Sygnia CPI + 4% (A)
0,64
28
4,10
24
5,88
14
4,88
13
*Baroque BCI Moderato FoF (A)
-0,18
43
3,26
32
1,16
75
2,16
58
1
*Sanlam IM Managed Moderate FoF (A1)
-1,55
65
2,58
40
5,48
15
5,24
9
4
*Momentum Focus 5 FoF (A)
-6,42
94
-4,81
92
1,14
76
2,17
57
2
*Stanlib M-M Real Return (A)
0,61
29
3,23
33
5,44
16
4,64
19
4
*Amity BCI Prudent FoF (A)
-5,67
92
-4,04
91
0,74
77
1,42
59
1
*Oasis Crescent Balanced Progressive FoF (D)
2,65
12
6,60
5
5,41
17
4,24
30
3
*Nedgroup Inv. Opportunity (A)
-9,67
97
-4,82
93
0,56
78
2,73
55
2
*Mergence CPI + 4% Prime (A1)
1,68
19
4,25
20
5,31
18
4,82
16
3
*Ampersand SCI CPI Plus 4 FoF (A)
-9,25
95
-11,86
95
-1,75
79
0,59
60
1
PERSONAL FINANCE | 3 r d QUARTER 2020
63
6 MONTHS
Megafin Sanlam CI Absolute FoF
3,10
%
1 YEAR
RANK
%
9
5,74
RANK
3 YEARS
5 YEARS
%
%
RANK
RANK
10
NAME
6 MONTHS
*Prudential Income (A)
0,77
34
4,87
%
1 YEAR
RANK
%
RANK
34
3 YEARS
5 YEARS
%
%
RANK
7,49
30
RANK
PLEX.
NAME
PLEX.
D A T A B A N K
*Chrome Ci Moderate (A)
2,69
10
4,94
13
PSG Wealth Enhanced Interest (A)
3,25
19
7,07
24
7,43
31
7,44
28
Synergy Ci Moderate FoF (A)
1,58
20
4,87
14
Gryphon Dividend Income (A)
2,81
28
6,10
31
6,46
32
6,39
29
1
*Chrome Ci Defensive (A)
3,31
8
4,68
16
*Instit BCI Enhanced Yield (A)
3,57
6
7,79
6
5
*TRG Moderate Prescient FoF (A1)
0,54
31
3,91
26
Terebinth SCI Enhanced Income (B1)
2,96
24
7,35
15
Sanlam IM Medium Equity (A1)
0,54
32
3,84
27
IFM Income (E)
2,39
32
3,96
35
PPS Stable Growth (A2)
-0,15
40
3,36
30
Sasfin BCI High Yield (A)
0,07
36
*Novare Balanced (A1)
1,49
21
2,23
44
VARIABLE TERM FUNDS
*Caleo BCI Moderate FoF (A)
2,67
11
1,96
54
*Absa Bond (A)
2,66
2
6,20
3
9,40
1
8,94
1
*Old Mutual Core Moderate (A)
-0,41
51
1,15
58
Citadel SA Bond H4 (B)
2,44
3
5,44
5
9,10
2
8,19
3
*Engelberg IP Balanced (A)
0,16
37
0,75
64
*Allan Gray Bond (A)
0,34
15
4,14
8
8,92
3
8,54
2
5
*PMK Balanced Prescient FoF (A3)
-3,43
83
0,30
70
*Nedgroup Inv. Core Bond (A)
2,35
4
5,50
4
8,78
4
8,05
4
4
*Absa Multi Managed Passive Acc. (A)
-1,59
68
-0,95
74
Prescient Flexible Fixed Interest (A2)
2,28
5
6,82
2
8,61
5
*10X Medium Equity Index (A)
-2,79
78
-1,51
77
Anchor BCI Bond (A)
0,86
9
4,09
9
8,46
6
*MFS SCI Moderate FoF (B1)
-4,17
87
-2,38
85
Absa Infl. Linked Income (A)
1,87
6
6,87
1
8,21
7
GraySwan SCI Moderate FoF (A)
-5,01
91
-3,45
90
*Stanlib Bond (A)
1,24
7
4,24
7
8,11
8
7,89
5
4
*Celerity Ci Moderate (A)
-0,33
49
PortfolioMetrix BCI Bond FoF (A)
1,20
8
3,99
11
8,09
9
*BCI Multikor Moderate FoF (A)
-0,56
54
*Sanlam Select Bond Plus (B3)
-0,29
21
2,75
14
7,87
10
7,18
8
4
*Oasis Bond (D)
0,61
11
3,35
12
7,68
11
7,52
7
4
TARGET DATE FUNDS *Discovery 2010 (A)
-0,05
2
2,62
1
5,43
1
4,68
1
Sygnia All Bond Index (A)
0,49
12
3,01
13
7,67
12
6,94
12
*Discovery 2015 (A)
0,17
1
2,38
2
5,18
2
4,59
2
*Momentum Bond (A)
-0,79
26
1,62
24
7,61
13
6,88
16
3
*Discovery 2020 (A)
-0,81
3
1,77
3
4,77
3
4,34
3
Sanlam IM Bond Plus (A)
-0,66
23
2,24
21
7,54
14
7,01
11
3
*Discovery 2025 (A)
-1,17
4
0,99
4
4,10
4
4,01
4
1nvest Albi (Non-Tr) Index Tracker (A)
0,13
17
2,29
20
7,53
15
6,77
18
*Discovery 2030 (A)
-3,06
5
-0,91
5
3,43
5
3,52
5
*Fairtree Albi Plus Prescient (A1)
-0,65
22
2,33
19
7,52
16
*Discovery 2035 (A)
-4,67
6
-2,34
6
2,62
6
2,91
6
Satrix Bond Index (A1)
-0,10
20
2,17
23
7,50
17
6,88
15
*Discovery Target Retirement 2050 (A)
-5,07
7
-2,78
7
2,58
7
2,51
8
*NewFunds Govi
0,08
19
2,20
22
7,34
18
7,02
10
*Discovery 2040 (A)
-5,41
9
-2,88
8
2,22
8
2,65
7
*Ashburton Bond (A)
-1,57
30
0,89
28
7,29
19
*Discovery 2045 (A)
-5,99
10
-3,23
10
2,07
9
2,45
9
*Melville Douglas Stanlib Bond (A)
0,28
16
2,67
15
7,26
20
6,86
17
3
Discovery Target Retirement 2055 (A)
-5,27
8
-3,00
9
*Community Growth Gilt (A)
-0,76
25
1,38
25
7,23
21
6,94
13
3
Discovery Target Retirement 2060 (A)
-6,12
11
-3,77
11
Ashburton Govi Tracker (A)
0,46
13
2,50
17
7,14
22
SOUTH AFRICAN INTEREST BEARING
*Ashburton M-M Bond (A1)
-0,97
28
0,98
27
7,13
23
SHORT TERM FUNDS
*AF Investments Pure Fixed Interest (A)
-0,85
27
1,12
26
7,10
24
6,91
14
3
Coronation Bond (R)
-1,36
29
0,79
29
6,94
25
7,63
6
3
Truffle SCI Income Plus (A)
0,38
35
5,43
33
9,50
1
PSG Income (A)
5,53
1
9,57
1
8,75
2
8,47
4
Absa M-M Bond (A)
0,46
14
2,54
16
6,73
26
7,09
9
3
Central Fundisa (B8)
3,46
7
7,86
4
8,61
3
8,76
1
*Prudential High Yield Bond (A)
-3,08
37
-1,01
31
6,33
27
6,19
20
2
Nedgroup Inv. Fundisa (A)
3,42
10
7,81
5
8,58
4
8,73
2
Prescient Bond QuantPlus (A1)
-2,56
33
-1,42
32
5,83
28
6,22
19
2
Absa Core Income (A)
3,88
2
8,41
2
8,52
5
Colourfield BCI Income 1 (A)
3,21
1
4,42
6
4,59
29
4,71
21
1
*Sanlam IM Enhanced Yield (A1)
2,90
25
7,12
22
8,45
6
Satrix Ilbi ETF (A)
-2,42
32
-3,30
33
0,87
30
8,66
3
3
Ninety One High Income (A)
2,63
30
7,05
26
8,19
7
8,18
8
*NewFunds Ilbi
-2,68
34
-3,70
34
0,35
31
1,67
22
*AF Investments Income (A)
3,67
4
7,31
17
8,18
8
8,21
7
2
Ashburton Infl. ETF
-2,71
35
-3,80
35
0,28
32
1,60
23
Stanlib Income (R)
2,61
31
6,89
28
8,16
9
8,44
5
4
1nvest Infl. Linked Bond Index Tracker (A)
-2,94
36
-3,95
36
0,12
33
*Momentum Enhanced Yield (A)
3,73
3
7,90
3
8,14
10
8,24
6
4
Colourfield BCI Income 2 (A)
-7,62
38
-10,88
37
-3,98
34
-1,49
24
1
Ashburton Stable Income (A)
2,71
29
6,96
27
8,08
11
8,11
10
3
Argon BCI Bond (A)
-0,71
24
4,05
10
1,29
1
5
Citadel SA Income H4 (B1)
3,33
14
7,46
10
8,07
12
8,05
12
4
Absa Bond Index (A)
0,09
18
2,49
18
*Hollard Prime Yield-Plus (B)
3,31
16
7,46
11
8,04
13
7,90
19
2
1nvest SA Bond ETF
-1,83
31
-0,41
30
Stanlib M-M Enhanced Yield (B1)
3,19
20
7,29
18
7,99
14
8,01
14
4
Sygnia Enhanced All Bond (A)
0,65
10
SOUTH AFRICAN REAL ESTATE
Standard Bank Fundisa (A)
3,15
21
7,23
20
7,99
15
8,13
9
Prescient Yield QuantPlus (A1)
3,57
5
7,64
7
7,98
16
7,95
16
5
GENERAL FUNDS
Stanlib Enhanced Yield (A)
3,42
12
7,40
13
7,95
17
8,09
11
3
*True North IP Enhanced Prop (A)
-8,73
1
-3,13
1
2,34
1
Prime Income Plus (A)
3,42
11
7,59
8
7,94
18
8,04
13
3
Catalyst Flexible Property Prescient (A)
-30,11
7
-29,43
3
-10,00
2
*AF Investments Superior Yield (A)
3,44
9
7,53
9
7,92
19
7,99
15
3
Harvard House BCI Property (A)
-29,13
5
-29,87
4
-11,06
3
Coronation Jibar Plus (A)
3,45
8
7,41
12
7,91
20
7,86
22
4
PortfolioMetrix BCI SA Property (A)
-28,75
4
-30,07
5
-13,43
4
1
Sesfikile BCI Property (A1)
-31,50
9
-32,62
9
-13,67
5
-5,18
3
4
Marriott Property Income (A)
-36,93
23
-39,07
24
-13,68
6
-6,83
5
3
-5,74
4
4
*Absa Income Enhancer (R)
2,86
26
7,20
21
7,90
21
7,92
17
PPS Enhanced Yield (A)
3,33
13
7,38
14
7,89
22
7,81
23
*Nedgroup Inv. Core Income (B)
3,32
15
7,33
16
7,78
23
7,81
24
3
Hollard Prime Property (B)
-32,98
14
-34,01
12
-14,21
7
*Ashburton SA Income (B1)
1,42
33
5,44
32
7,69
24
7,91
18
2
Anchor BCI Property (A)
-31,44
8
-34,50
14
-14,75
8
Absa Property Equity (A)
-26,74
2
-27,97
2
-15,27
9
-4,38
2
5
Warwick BCI Property (B)
-28,16
3
-30,43
6
-15,32
10
-7,93
7
3
Old Mutual SA Quoted Property (A)
-35,49
20
-36,02
16
-16,20
11
-8,22
8
3
*Ninety One Stefi Plus (A)
3,28
18
7,24
19
7,66
25
7,70
26
*Stanlib Extra Income (R)
2,82
27
6,76
30
7,55
26
7,90
20
Absa Fundisa (A)
3,06
23
6,83
29
7,55
27
7,77
25
Old Mutual Interest Plus (A)
3,28
17
7,11
23
7,55
28
7,67
27
3
Autus Prime Property (A)
-32,85
12
-32,01
8
-16,75
12
-8,45
10
1
*IP Interest Plus (A)
3,12
22
7,07
25
7,50
29
7,87
21
2
Metope Property Prescient (A)
-31,86
11
-33,80
11
-17,00
13
-7,82
6
5
64
PERSONAL FINANCE | 3 r d QUARTER 2020
2
D A T A B A N K Oasis Property Equity (D)
-33,69
Absa Smart Alpha Property (A) Ashburton M-M Property (A1)
1 YEAR
3 YEARS
5 YEARS
%
%
6 MONTHS
7,42
1 YEAR
3 YEARS
5 YEARS
%
%
NAME
10
-17,11
14
-10,81
27
1
JBL Sanlam CI Worldwide Flexible FoF (B1)
-31,19
7
-17,35
15
-9,29
18
4
-36,13
17
-17,39
16
22
-38,97
23
-17,61
17
-8,30
9
4
Instit BCI Worldwide Equity Fund
12,50
23
17,96
22
10,20
19
25
-37,34
18
-17,91
18
-9,08
14
3
CS BCI Worldwide Flexible FoF (A)
10,62
31
16,41
27
10,18
20
-34,59
19
-37,96
19
-18,24
19
-9,78
21
2
Flagship IP Worldwide Flexible (A)
17,06
16
21,20
16
9,96
21
-32,87
13
-35,53
15
-18,27
20
Montrose BCI Flexible FoF (A)
7,40
46
13,21
38
9,81
22
Ampersand SCI Flexible Property Income (A)
-34,22
17
-38,46
20
-18,31
21
-9,28
17
Analytics Ci WW Flex FoF (A)
9,57
35
13,59
35
9,69
23
Sygnia Listed Property Index (A)
-36,98
24
-39,61
25
-18,48
22
-9,13
15
Brenthurst BCI Worldwide Flexible FoF (A)
9,98
34
15,11
30
9,56
24
Momentum Real Growth Property (A)
-37,83
31
-40,56
31
-18,66
23
-9,15
16
Simplisiti BCI Flexible FoF (A)
15,31
19
21,93
15
9,52
25
1nvest SA Property ETF
-37,68
30
-40,22
30
-18,66
24
-8,82
12
AF Investments Flexible FoF (A)
6,31
50
13,15
39
8,95
26
Satrix Property Index (A1)
-37,37
29
-39,98
29
-18,67
25
-9,33
19
Momentum Real Growth Property Index (A)
-37,33
28
-39,91
28
-18,93
26
Catalyst SA Property Equity Prescient (A)
-39,23
36
-40,95
34
-19,01
27
-9,05
13
Coronation Property Equity (A)
-40,74
40
-42,75
38
-19,27
28
-10,10
Plexus Wealth BCI Property (A)
-34,19
16
-34,15
13
-19,49
29
%
RANK
%
15
-32,78
-29,38
6
-34,54
18
AF Investments Property Equity (A)
-36,57
Discovery Flexible Property
-37,22
Mazi Asset Management Prime Property (A) MSM Property ACI (A1)
RANK
RANK
RANK
2 3
%
RANK
45
%
14,04
RANK
34
11,14
RANK
RANK
PLEX.
6 MONTHS
PLEX.
NAME
5,80
20
4
7,74
12
4
8,56
9
4
6,49
17
3
16
Lunar BCI Worldwide Flexible (A)
10,22
32
18,11
20
11,13
17
Signature BCI Worldwide Flexible FoF (A)
12,45
24
17,03
25
10,40
18
Prosperity IP Worldwide Flexible FoF (A)
1,70
70
7,79
57
8,87
27
8,56
10
3
H4 Growth (B1)
2,20
66
4,98
67
8,73
28
5,59
24
3
4
Foord Flexible FoF (A)
12,60
22
20,44
17
8,73
29
7,73
13
4
22
2
Anchor BCI Worldwide Flexible (A)
4,19
56
10,44
46
8,54
30
9,17
6
4
-8,67
11
3
Cohesive Capital WW Flexible Prescient (A2)
11,70
27
16,33
28
8,42
31
-10,14
24
Momentum SA Real Growth Property (A)
-39,18
35
-41,85
37
-19,59
30
Ninety One Property Equity (A)
-39,33
37
-39,77
26
-19,61
31
Prudential Enhanced SA Property Tracker (A)
-38,47
32
-40,71
32
-19,86
32
-9,71
20
Citadel SA Property H4 (B1)
-38,68
33
-41,51
35
-19,97
33
-10,14
23
Sanlam IM Property (A)
-38,90
34
-41,62
36
-20,25
34
-10,49
26
Stanlib Property Income (A)
-37,29
27
-38,90
21
-20,41
35
-10,44
25
Select BCI Property (A)
-44,52
43
-46,58
41
-21,45
36
-11,08
28
1nvest Capped Property Index Tracker (B3)
-40,60
39
-43,15
39
-22,20
37
-12,90
29
Satrix Property ETF (A)
-43,61
42
-46,08
40
-23,59
38
Nedgroup Inv. Property (A)
-31,75
10
-40,80
33
-24,67
39
Ashburton Property (A)
-36,48
21
-38,95
Absa Property Index (A)
-37,25
26
-39,83
Metope Property Income Prescient (A)
-39,48
CoreShares SA Property Income
-42,26
FTSE/JSE SA Listed Property Index (J253)
-37,56
Old Mutual MM Max Return FoF (A)
6,42
49
12,30
41
8,12
32
Corion Prime Worldwide Flexible (A1)
7,50
44
12,35
40
8,12
33
3
GCI MET Worldwide Flexible (A)
12,70
20
16,59
26
7,98
34
6,38
19
3
2
BCI Worldwide Flexible FoF (3B1)
7,60
43
14,17
33
7,94
35
6,47
18
3
Aureus Nobilis BCI Worldwide Flexible FoF (A)
8,05
40
14,47
31
7,86
36
2
Marriott Worldwide FoF (A)
7,76
41
11,77
43
7,85
37
8,04
11
4
3
PPS Worldwide Flexible FoF (A)
4,15
57
9,02
51
7,73
38
5,60
23
5,71
22
3
Celtis BCI Flexible FoF (A)
10,95
29
14,37
32
7,70
39
Southern Charter BCI Worldwide Flex. FoF (A)
8,05
39
13,30
37
7,66
40
Sygnia Skeleton Worldwide Flexible (A)
0,14
78
4,43
71
7,42
41
22
Imalivest SCI Worldwide Flexible (A)
-2,52
84
2,30
77
7,41
42
6,81
14
3
27
Bovest BCI Worldwide Flexible FoF (A)
8,48
38
12,04
42
6,98
43
5,78
21
3
38
Autus Prime Worldwide Flexible (A)
7,61
42
9,60
49
6,74
44
3,98
31
3
41
PrivateClient BCI Worldwide Flexible (A)
2,63
65
6,19
60
6,63
45
-39,98
-18,33
-13,72
30
1
PWS BCI Worldwide Flexible FoF (A)
6,04
51
9,64
48
6,61
46
WORLDWIDE EQUITY
-9,06
BCI Flexible (A)
0,02
79
0,79
79
6,50
47
4,61
28
3
GENERAL FUNDS
Megafin SCI Growth FoF (B1)
4,93
52
7,86
55
6,33
48
6,50
16
3
Millenium BCI Worldwide Flexible FoF (B)
2,82
64
7,81
56
6,05
49
Nest Egg BCI Worldwide Equity (A)
13,94
3
20,98
3
9,72
1
H4 Worldwide Equity (B1)
5,39
5
8,89
5
9,58
2
7,04
1
4D BCI Aggressive Flexible FoF (A)
3,59
60
8,05
53
6,03
50
Stewart BCI Macro Equity FoF (A)
3,17
6
8,09
6
5,09
3
3,07
2
Dinamika BCI Worldwide Flexible (A)
4,03
58
7,96
54
5,93
51
4,08
30
3
BCI Value Fund
11,16
4
15,16
4
5,04
4
API BCI WW Opportunities FoF (A)
1,97
68
5,35
66
5,83
52
4,99
25
3
CoreShares OUTaggressive Index (O)
-3,19
7
-2,43
7
4,31
5
Select Manager BCI Worldwide Flex. FoF (A)
0,79
77
3,27
75
5,76
53 4,58
29
3
Corion Prime Worldwide Equity (A1)
-3,64
8
-3,39
8
2,63
6
Trésor Sanlam CI Flexible (B1)
3,17
63
6,12
61
5,48
54
Prime Worldwide Equity (A)
-10,75
9
-14,04
9
-9,07
7
Point3 BCI Moderate Worldwide Flex. FoF (A)
1,29
71
6,09
62
5,40
55
Innovation BCI Worldwide Equity (A)
19,85
1
28,79
1
Rebalance BCI Worldwide Flexible FoF (A)
4,36
55
6,95
59
5,27
56
3,79
34
2
Ashburton Global Leaders ZAR Eqty Fdr (A)
18,44
2
26,08
2
Discovery Worldwide Best Ideas (A)
3,93
59
4,86
69
5,14
57
2,74
37
2
Nedgroup Inv. Bravata Worldwide Flex. (A)
-2,18
82
3,71
73
5,03
58
6,61
15
3
Olympiad BCI Worldwide Flexible FoF (A)
1,07
74
4,90
68
5,02
59
4,61
27
2
4,76
26
2
3,86
32
2
3,30
36
2
UNCLASSIFIED FUNDS Old Mutual Gold (A)
54,19
93,02
41,67
24,14
WORLDWIDE MULTI ASSET
BCI Best Blend WW Flexible (A)
1,13
73
5,68
65
4,67
60
FLEXIBLE FUNDS
Wealth Associates BCI Flexible Growth FoF
-5,30
92
-1,45
84
4,49
61
Old Mutual Maximum Return FoF (A)
-1,36
81
2,94
76
4,46
62
Octagon Sanlam CI Worldwide FoF (B1)
-0,38
80
4,36
72
4,34
63
Select BCI Worldwide Flexible (A)
21,16
9
27,78
8
20,28
1
RCI BCI Flexible Growth (L)
29,73
2
36,23
2
16,31
2
15,12
Coronation Optimum Growth (A)
18,66
14
26,75
9
15,59
3
RCI BCI Worldwide Flexible (A)
22,62
3
31,05
3
15,38
4
Rootstock SCI Worldwide Flexible (A)
19,83
12
28,77
5
15,26
5
9,54
5
Cordatus Worldwide Flexible Prescient (A2)
20,99
11
26,05
11
14,88
6
11,11
4
Quattro Ci Worldwide Flexible FoF (A)
19,45
13
28,19
7
14,69
7
Platinum BCI Worldwide Flexible (A)
12,08
26
19,35
19
13,47
8
11,26
3
4
Consilium BCI Worldwide Flexible (A)
21,17
8
25,85
12
12,95
9
8,94
8
4
Instit BCI Worldwide Flexible FoF (B)
11,46
28
18,07
21
12,74
10
Flagship IP Worldwide Flexible FoF (A)
21,75
6
24,88
13
12,52
11
Optimum BCI Worldwide Flexible FoF (A)
21,52
7
24,44
14
12,49
12
13,33
9,04
1 2
7
5
Engelberg IP Global Fdr (A)
17,65
15
17,14
24
4,17
64
Novare Worldwide Flexible FoF (A1)
-2,41
83
-2,14
86
3,89
65
5
Ninety One Worldwide Flex (E)
4,72
53
6,08
63
3,82
66
5
IP Worldwide Flexible FoF (B2)
4,40
54
5,86
64
3,50
67
PBI BCI Worldwide Flexible FoF (A)
-4,37
90
-1,96
85
2,59
68
Cordatus Worldwide Flexible Pres. FoF (A2)
2,03
67
3,38
74
2,53
69
3,67
35
1
Coronation Market Plus (A)
-3,51
88
0,71
80
2,41
70
3,81
33
2
FNB Growth Plus FoF (B1)
-4,26
89
-1,06
82
2,37
71
Stonewood BCI WW Flex (B)
0,80
76
-0,13
81
2,28
72
1,61
38
2
Median BCI Worldwide Flexible FoF (A)
-3,09
87
-1,16
83
0,65
73
5
4
Prime Worldwide Flexible (B)
12,30
25
19,42
18
11,62
13
Cadiz Worldwide Flexible (A)
-12,77
95
-11,01
90
-0,69
74
0,30
40
1
Fin. Fitness Flex IP FoF (A)
6,44
48
10,80
45
11,38
14
Rock Capital IP Top 20 Global (A)
-10,55
94
-7,40
88
-0,94
75
-0,10
41
1
Providence BCI Worldwide Diversified (B)
10,89
30
17,72
23
11,25
15
RECM Global Flexible (A)
-7,98
93
-8,21
89
-1,15
76
0,34
39
1
PERSONAL FINANCE | 3 r d QUARTER 2020
65
PLEX.
NAME
6 MONTHS
RANK
PLEX.
D A T A B A N K NAME
6 MONTHS
Blue Quadrant MET Worldwide Flexible (A)
-25,03
96
-24,84
91
2
Momentum Intl Equity Fdr (A)
7,89
64
14,67
63
10,51
40
9,61
Naviga BCI Worldwide Flexible Fund
53,33
1
67,39
24
3
1
Denker SCI Global Equity Fdr (A)
7,37
66
13,73
66
10,25
41
8,63
29
Investhouse Ci Growth (A)
21,01
10
2
29,62
4
Allan Gray-Orbis Global Equity Fdr (A)
13,65
44
26,55
22
10,02
42
12,36
13
Nest Egg BCI Worldwide Flexible (A)
21,99
3
4
28,56
6
BCI BB Glb Equity (A)
13,49
45
19,40
54
9,14
43
7,01
32
Instit BCI Worldwide Moderate Agg. Flex. (A)
2
21,78
5
26,74
10
Element Islamic Global Equity SCI (A)
8,10
63
16,96
62
8,21
44
6,94
33
2
Synergy Ci Worldwide Flexible FoF (A)
10,13
33
16,24
29
Old Mutual FTSE Rafi All World Index Fdr (A)
2,43
72
9,48
70
8,16
45
8,47
30
Chrome Ci Maximum Return (A)
8,96
36
13,31
36
Glacier Global Stock Fdr (B3)
2,27
73
11,69
69
8,12
46
Rexsolom WW Flexible Prescient (A1)
8,71
37
11,52
44
Sanlam Global Emerging Markets Fdr (A1)
9,85
61
22,74
42
6,95
47 5,69
35
1
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
-9,33
RANK
77
-4,06
RANK
42
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
RANK
NFB Ci Worldwide Flex (A)
3,32
61
9,76
47
Stonewood BCI Global Equity Fdr (A)
2,60
71
7,28
71
5,94
48
Citadel Worldwide Flexible H4 -B3
7,15
47
9,45
50
Denker SCI Global Dividend Fdr (A1)
-2,13
75
2,20
72
4,72
49
Red Oak BCI WW Flexible FoF (A)
3,18
62
8,82
52
Counterpoint SCI Global Eqt Fdr (B)
-5,13
76
-3,35
73
3,10
50
Ginsburg & Selby SCI Worldwide Flex. (A1)
1,95
69
7,32
58
Absa Global Value Fdr (A)
-10,39
78
-4,48
74
1,34
51
6,65
34
2
Fairtree WW Multi-Strategy Flex. Pres. (A1)
1,03
75
4,83
70
Discovery Gbl Value Equity Fdr (A)
-17,34
79
-10,90
76
0,51
52
4,81
36
1
PMK Worldwide Growth Prescient FoF (A3)
-2,78
86
2,01
78
PSG Global Equity Fdr (A)
-7,53
77
-6,49
75
-0,41
53
2,38
37
Instit BCI Worldwide Flexible (A)
-5,17
91
-4,82
87
Sygnia FAANG Plus Equity (A)
38,60
4
61,82
3
BIP BCI Worldwide Flexible (E)
16,00
17
Anchor BCI Global Technology (A)
40,09
3
49,78
4
BCI Worldwide Flexible Style (C)
15,37
18
Sygnia Itrix 4th Industrial Rev. Global Eqty ETF
28,14
6
38,36
6
Harvard House BCI Worldwide Flexible (A)
12,66
21
Stonehage Fleming SCI Glbl Bst Ideas Eqty Fdr
26,57
7
35,43
9
BIP BCI Moderate Worldwide Flexible (C)
1,13
72
Instit BCI Global Equity (A)
25,95
10
35,21
10
Fussell Ci Worldwide Flexible (A)
-2,78
85
Mi-Plan IP Global AI Opportunity (B2)
25,39
11
31,20
13
GLOBAL EQUITY
Satrix S&P 500 ETF
19,59
18
31,16
15
GENERAL FUNDS
BCI Fundsmith Equity Fdr (A)
24,69
12
30,74
16
IP Global Momentum Equity (A)
64,91
1
78,48
1
36,33
1
Nedgroup Inv. Glbl Diversified Eqty Fdr (A)
19,66
17
29,34
19
Anchor BCI Gbl Equity Fdr (A)
55,80
2
67,09
2
24,97
2
Old Mutual MSCI World ESG Index Fdr (A)
15,87
31
26,41
23
BlueAlpha BCI Global Equity (A)
26,19
8
34,01
11
22,79
3
17,30
1
5
Prescient Core Global Equity (A2)
16,73
26
26,32
25
Autus Prime Global Equity Fdr (A)
28,76
5
39,89
5
21,16
4
15,89
3
5
Satrix MSCI World Equity Fdr ETF
16,80
25
26,15
27
Sygnia 4th Industrial Rev. Global Equity (A)
26,02
9
37,14
7
20,85
5
1nvest MSCI World Index Fdr ETF
16,49
28
25,95
30
CoreShares S&P 500
18,83
20
29,58
18
20,15
6
1nvest MSCI World Index Fdr (A)
16,55
27
25,87
31
Stanlib Global Equity Fdr (A)
20,28
16
30,55
17
19,35
7
15,47
4
CoreShares MSCI ACWI FoF (A)
15,91
30
24,55
33
Ninety One Global Francise Fdr (A)
24,16
13
33,50
12
19,27
8
17,04
2
Ashburton Global 1200 Equity ETF
15,54
32
24,01
35
Melville Douglas Stanlib Global Eqty Fdr (A)
17,29
23
25,03
32
18,48
9
Nedgroup Inv. Glb Emerging Mkt Eqty Fdr (A)
13,71
42
22,69
43
PSG Wealth Global Creator Fdr (A)
17,69
22
29,22
20
17,54
10
14,62
6
Old Mutual MSCI Emrg Mkts ESG Index Fdr (A)
13,71
43
22,27
47
Sygnia Itrix MSCI World Index ETF
16,91
24
26,38
24
17,05
11
14,67
5
Sanlam PW Global High Quality Fdr (A1)
14,30
38
21,38
49
ABAX Global Equity Prescient Fdr (A1)
21,49
15
31,18
14
16,42
12
Sasfin BCI Global Equity Fdr (A)
12,13
56
19,31
55
Sygnia Skeleton International Equity FoF (A)
15,53
33
23,47
39
15,82
13
Satrix MSCI Emerging Markets ETF
11,22
59
17,56
61
Nedgroup Inv. Global Equity Fdr (A)
15,42
34
25,97
29
15,67
14
14,61
7
Kagiso Islamic Global Equity Fdr (A)
6,45
69
13,75
65
Satrix MSCI World Equity Index Fdr (A1)
15,31
35
24,38
34
15,54
15
13,48
8
CoreShares S&P Glbl Dividend Aristocrats ETF
7,58
65
11,90
68
Foord Global Equity Fdr (A)
23,48
14
36,55
8
15,33
16
12,76
10
Prescient Sigma Select Global Leaders Fdr (A1)
13,40
47
4
4
Stylo Global Equity Prescient FoF (A1)
15,94
29
23,50
37
15,02
17
Global & Local SNN Equity (A)
6,97
67
Fairtree Global Smart Beta Prescient (A1)
19,52
19
28,03
21
14,77
18
Kagiso Global Equity Fdr (A)
-1,35
74
M1 Capital Global Equity Prescient (A1)
18,64
21
26,03
28
14,47
19
MSCI World index
15,75
24,57
15,30
12,54
Mi-Plan IP Sarasin Equisar Fdr (B5)
9,67
62
20,27
52
14,42
20
-16,89
-13,28
-0,85
4,24
11,79
17
4
GLOBAL EQUITY UNCLASSIFIED FUNDS
Absa Global Core Equity Fdr (A)
14,10
39
23,23
40
14,41
21
Gryphon Global Equity (B)
13,12
50
20,99
51
13,99
22
11,97
15
4
Denker SCI Global Financial Fdr (A1)
Citadel Global Equity H4 FoF (B)
13,94
41
23,10
41
13,90
23
12,54
11
4
Global Multi Asset
Discovery Global Equity Fdr (A)
15,11
36
22,27
46
13,64
24
10,43
23
3
Flexible Funds
PortfolioMetrix BCI Global Equity FoF (A)
12,33
53
17,59
60
13,55
25
12,21
14
4
Mi-Plan IP Global Macro (B5)
21,67
7
29,18
5
19,48
1
16,04
1
5
Old Mutual Global Equity (A)
13,43
46
20,03
53
13,16
26
12,48
12
3
Global IP Opportunity (B5)
19,93
10
27,79
7
18,60
2
15,12
2
5
Stanlib M-M Global Equity Fdr (A)
11,74
58
21,19
50
13,15
27
11,85
16
3
Northstar SCI Global Flexible (A)
20,62
9
26,73
9
17,30
3
27four Global Equity Prescient Fdr (A1)
12,21
55
21,67
48
13,06
28
10,86
21
3
PSG Wealth Global Flexible Fdr (A)
22,29
3
30,08
3
16,30
4
11,92
6
AF Investments Global Equity Fdr (A)
13,18
49
22,46
45
13,03
29
13,05
9
4
Deton Prime Global Flexible FoF (A)
23,56
2
33,34
1
15,00
5
11,77
7
4
Coronation Global Eqty Select [ZAR] Fdr (A)
11,97
57
26,28
26
12,84
30
11,17
18
3
Sygnia International Flexible FoF (A)
17,11
14
23,36
14
14,99
6
12,05
4
4
Select Manager BCI Global Equity FoF (A)
14,49
37
23,49
38
12,74
31
Assetbase Glb Flex Prescient FoF (A1)
18,03
11
24,53
11
14,31
7
Oasis Crescent International Fdr (D)
13,96
40
23,74
36
12,35
32
9,30
26
3
Coronation Global Emrg Mkts Flex. (ZAR) (A)
14,03
22
21,42
19
13,42
8
11,39
8
3
Prudential Global Equity Fdr (A)
10,82
60
18,77
57
11,48
33
11,06
19
3
Foord International Fdr (A)
21,88
6
32,82
2
13,25
9
10,60
10
Element Global Equity SCI (B)
6,46
68
13,70
67
11,03
34
9,05
27
2
Skyblue BCI Solar Flexible FoF (A)
25,18
1
27,55
8
13,19
10
12,17
3
4
Marriott First World Equity Fdr (A)
13,32
48
19,05
56
11,03
35
10,72
22
3
Warwick BCI International FoF (C)
16,69
16
20,59
21
12,95
11
Ninety One Global Strategic Equity Fdr (A)
12,28
54
17,95
59
11,02
36
8,96
28
Kruger Ci Intl Flexible Fdr (A)
17,73
12
22,00
17
12,79
12
10,03
11
3
Prescient Global Equity Fdr (A1)
12,87
52
18,68
58
10,93
37
10,89
20
3
BCI Ubam MultiFunds Flex. Allocation FoF (A)
17,65
13
24,13
12
12,63
13
Coronation Global Opp. Equity [ZAR] Fdr (A)
4,65
70
14,48
64
10,92
38
9,56
25
2
Marriott International Growth Fdr (A)
13,36
24
20,98
20
11,89
14
11,95
5
Sanlam Global Equity (A)
12,91
51
22,67
44
10,88
39
7,85
31
2
PSG Wealth Global Moderate Fdr (A)
16,91
15
22,50
15
11,51
15
8,42
15
66
PERSONAL FINANCE | 3 r d QUARTER 2020
D A T A B A N K Nedgroup Inv. Global Flexible Fdr (A)
11,72
28
17,98
24
11,36
16
APS Ci Global Flexible Fdr (B)
15,47
20
21,50
18
10,90
Bridge Global Managed Growth Fdr (A)
8,46
31
18,25
23
FG IP International Flexible FoF (A)
11,95
27
17,09
26
%
1 YEAR
RANK
%
RANK
3 YEARS
5 YEARS
%
%
NAME
6 MONTHS
Prudential Global Bond Fdr (A)
24,57
6
26,88
6
12,23
3
10,02
1
17
Stanlib Global Bond Fdr (A)
22,79
7
23,79
7
10,73
4
8,83
3
10,66
18
1nvest Global Gvt Bond Index Fdr ETF
29,49
1
29,26
1
10,37
19
3
1nvest Global Government Bond Index Fdr (A)
28,94
2
29,15
2
28,07
3
27,41
5
Reitway BCI Global Property (A)
21,39
1
28,11
1
13,76
1
12,77
1
5
Absa Global Property Fdr (A)
9,33
2
18,27
2
12,80
2
10,47
2
4
7,15
4
3
7,63
3
4
RANK
10,86
9,29
RANK
9
12
%
Select Manager BCI Global Moderate FoF (A)
16,10
18
23,79
13
10,24
20
9,07
13
2
Ashburton World Government Bond ETF
Lynx Prime CI Global Diversified FoF (A1)
11,30
29
17,79
25
9,85
21
7,77
16
2
GLOBAL REAL ESTATE
IP Foreign Flexible Fdr (A1)
16,23
17
19,72
22
9,35
22
8,47
14
2
GENERAL FUNDS
Amity BCI Global Diversified FoF (A)
11,25
30
15,28
27
7,54
23
Prescient RECM Global Fdr (A)
0,44
34
4,77
30
5,95
24
4,71
17
PSG Global Flexible Fdr (A)
0,41
35
1,34
31
2,21
25
4,18
18
%
RANK
3 YEARS
5 YEARS
%
%
RANK
Sesfikile BCI Global Property (A1)
6,85
4
16,41
3
11,77
3
Nedgroup Inv. Global Property Fdr (A)
8,23
3
14,15
4
11,65
4
RANK
Rezco Global Flexible Fdr
22,06
5
29,21
Megafin Sanlam CI Global Flexible
22,12
4
28,04
6
Portfoliometrix BCI Global Property FoF (A)
6,42
5
13,95
5
11,57
5
Northstar SCI Global Flexible Fdr (A)
20,66
8
26,35
10
Catalyst Global RE Prescient Fdr (B)
4,64
6
10,34
6
11,13
6
PMK Global Flexible Prescient FoF (A3)
15,86
19
22,42
16
Fairtree Global Real Estate Prescient (A1)
-0,97
13
4,69
13
8,59
7
Point3 BCI Global Flexible FoF (A)
7,69
32
13,49
28
Stylo Global Real Estate Prescient FoF (A1)
0,98
10
6,12
9
8,35
8
29
Marriott International Real Estate Fdr (A)
-3,86
17
1,66
17
7,90
9
CoreShares S&P Global Property
3,20
9
5,59
10
7,32
10
BCI Best Blend Global Property (A)
-1,95
14
2,10
16
7,05
11
Discovery Global Real Estate Securities Fdr (A)
-2,22
16
3,49
14
7,04
12
Mi-Plan IP Global Property Fdr (B5)
4,09
7
7,86
7
6,93
13
7,12
5
3
Stanlib Global Property Fdr (A)
0,58
11
3,11
15
6,88
14
6,89
6
2
Thyme Wealth IP Global (A)
2,82
33
Chrome Ci Global Maximum Return Fdr (A)
14,72
21
Rozendal Global Prescient Fdr (A)
13,70
23
Celerity Ci International Growth FoF (A)
12,87
25
Quantum BCI Worldwide Flexible FoF (A)
12,23
26
Counterpoint SCI Glbl Owner Mngd Flex. Fdr
0,36
36
5,75
4
1 YEAR
RANK
PLEX.
6 MONTHS
PLEX.
NAME
HIGH EQUITY FUNDS Stanlib Global Balanced Fdr (A)
19,90
2
26,41
1
16,08
1
Nedgroup Inv. Core Global Fdr (A)
16,56
6
23,87
5
14,13
2
12,72
1
5
AF Inv. Strategic Gbl Balanced Fdr (A)
15,27
8
21,46
7
13,19
3
11,21
2
Ninety One Global Strategic Mngd Fdr (A)
18,85
3
24,07
4
12,68
4
10,64
3
Sanlam Global Balanced FoF (A)
16,97
5
22,74
6
12,55
5
10,39
4
3
Discovery Global Balanced FoF (A)
19,93
1
24,41
3
12,24
6
9,94
6
3
PPS Global Balanced FoF (A)
12,13
12
19,00
11
12,03
7
Momentum International Balanced Fdr (A)
15,25
9
20,49
8
11,69
8
9,70
7
3
Coronation Global Managed (ZAR) Fdr (A)
15,91
7
25,56
2
11,67
9
10,36
5
3
Sharenet BCI Global Balanced FoF (C)
12,00
14
17,74
14
10,77
10
Ashburton Global Flexible (A)
14,43
10
19,49
9
10,71
11
8,32
9
2
Prime Renaissance Global Best Ideas Fdr (A)
14,33
11
18,64
12
10,19
12
8,02
10
1
Allan Gray-Orbis Global FoF (A)
12,07
13
19,23
10
6,60
13
9,63
8
2
Prudential Global Balanced Fdr (A)
10,60
15
18,17
13
Seed Global Prescient Fdr (A1)
18,83
4
4
INCOME FUNDS Coronation Glb Strat. USD Inc. [ZAR] Fdr (A)
22,86
2
24,47
2
11,53
1
8,94
2
Prescient Glb Inc Provider Fdr (A1)
23,82
1
25,62
1
10,52
2
9,61
1
BCI Fairtree Global Income Plus Fdr (A)
12,26
3
12,84
3
Stanlib Global Balanced Cautious Fdr (A)
22,45
1
25,48
1
13,89
1
Absa Global Multi Asset Fdr (A)
16,54
8
21,23
8
12,58
2
Sanlam Global Cautious FoF (A)
21,56
3
24,06
3
12,35
3
Ninety One Gbl Multi-Asset Inc Fdr (A)
21,93
2
23,85
4
12,32
4
Coronation Global Capital Plus (ZAR) Fdr (A)
18,76
7
24,95
2
11,94
5
9,98
2
Prudential Global Infl. Plus Fdr (A)
16,16
9
21,41
7
11,21
6
9,41
Momentum Intl Conservative Fdr (A)
20,40
4
22,76
5
10,65
7
8,87
Nedgroup Inv. Global Cautious Fdr (A)
19,67
5
21,16
9
9,91
8
8,45
Oasis Crescent Intl Bal. Low Eqty Fdr (D)
14,93
10
20,57
10
8,91
9
Allan Gray-Orbis Global Optimal FoF (A)
11,64
11
10,77
11
1,69
10
PSG Wealth Global Preserver Fdr (D)
19,28
6
22,30
6
LOW EQUITY FUNDS 10,34 9,80
4,71
1 3
5 3
Oasis Crescent Intl Property Equity Fdr (D)
-2,01
15
4,84
12
2,11
15
3,74
7
1
Bridge Gobal Property Income Fdr (A)
-14,18
20
-9,29
20
0,33
16
2,70
8
2
Sygnia Itrix Global Property ETF
4,04
8
6,34
8
Meago Enhanced Global Prop. Prescient (A1)
-0,14
12
5,30
11
1nvest Global REIT Index Fdr ETF
-4,58
18
0,53
18
1nvest Global REIT Index Fdr ETF
-4,69
19
-0,03
19
REGIONAL EQUITY GENERAL FUNDS 1nvest S&P 500 Index Fdr ETF
19,12
30,86
1nvest S&P500 Index Fdr (A)
18,62
30,15
1nvest S&P 500 Info Tech Index Fdr ETF
41,49
65,23
1nvest S&P500 Info Tech Index Fdr (A)
40,36
63,29
Absa Africa Equity Fdr (A)
7,57
8,41
8,96
Ashburton India Equity Opportunities Fdr (A)
-2,87 -0,37
Cloud Atlas AMI Big50 ex-SA ETF
2,76
-9,96
Mazi Asset Management Prime Africa Equity (A)
-2,71
0,68
3,34
Rudiarius BCI Africa Equity (C)
0,73
3,38
2,54
Sanlam Asia Pacific FoF (A)
6,54
13,96
6,46
1,10 6,62
Sanlam India Opportunities Fdr (A)
0,68
3,07
6,31
7,69
Sanlam Pan Europe (A)
8,37
14,43
7,92
5,24
Satrix Nasdaq 100 ETF
44,25
63,12
Stanlib European Equity Fdr (A)
12,34
19,04
10,22
8,17
Sygnia Itrix Eurostoxx50 ETF
8,46
15,23
9,38
8,91
Sygnia Itrix FTSE100 ETF
-3,96
2,36
5,38
4,43
Sygnia Itrix MSCI Japan ETF
15,28
26,40
12,33
10,24
Sygnia Itrix MSCI US Index ETF
20,92
32,28
20,79
17,86
4
Sygnia Itrix S&P 500 ETF
20,10
31,68
4
3
REGIONAL MULTI ASSET
5
3
FLEXIBLE FUNDS
6
2
Anchor BCI Africa Flexible Income (A)
5,24
9,42
10,02
Laurium Africa USD Bond Prescient (A1)
19,11
Prescient China Balanced Fdr (A1)
24,03
27,53
12,72
7,27
7
1
REGIONAL INTEREST BEARING
GLOBAL INTEREST BEARING
SHORT TERM FUNDS
SHORT TERM FUNDS
AF Investments US Dollar Fdr (A)
24,54
24,30
11,35
8,30
Marriott Global Income (A)
21,86
2
22,11
1
10,56
1
8,58
1
Stanlib USD Currency FoF (A)
23,44
23,25
10,74
6,65
Old Mutual Global Currency Fdr (A)
22,36
1
21,39
2
9,53
2
8,08
2
VARIABLE TERM FUNDS
Momentum Intl Income (A)
20,98
3
21,16
3
8,71
3
5,13
3
Newfunds S&P Namibia Bond ETF
VARIABLE TERM FUNDS
5,37
REGIONAL REAL ESTATE
Stylo Global Bond Prescient FoF (A1)
27,45
5
27,52
4
12,70
1
AF Investments Global Fixed Income (A)
28,04
4
27,60
3
12,33
2
GENERAL FUNDS 9,73
2
*Cloud Atlas AMI Real Estate ex-SA ETF
-15,27
-31,51
PERSONAL FINANCE | 3 r d QUARTER 2020
67
D A T A B A N K
TAXES AND DEDUCTIONS FOR THE 2020/21 TAX YEAR PROVISIONAL TAX
INCOME TAX RATES FOR INDIVIDUALS AND SPECIAL TRUSTS* TAXABLE INCOME R1 - R205 900 R205 901 - R321 600 R321 601 - R445 100 R445 101 - R584 200 R584 201 - R744 800 R744 801 - R1 577 300 R1 577 301 and above
RATE OF TAX 18% of taxable income R37 062 + 26% of taxable income above R205 900 R67 144 + 31% of taxable income above R321 600 R105 429 + 36% of taxable income above R445 100 R155 505 + 39% of taxable income above R584 200 R218 139 + 41% of taxable income above R744 800 R559 464 + 45% of taxable income above R1 577 300
* 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%.
REBATES
TAX THRESHOLDS
Primary (applies to all taxpayers) Secondary (persons 65 and older) Tertiary (persons 75 and older)
R14 958 R8 199 R2 736
Below age 65 Age 65 to below age 75 Age 75 and over
R83 100 R128 650 R143 850
R23 800 a year
Individuals 65 and over
R34 500 a year
CAPITAL GAINS TAX
EXEMPTIONS ON LOCAL INTEREST
Individuals under 65
A provisional taxpayer is any person who earns income by way of remuneration from an unregistered employer income that is not remuneration or an allowance or an advance payable by his or her employer. You are exempt from the payment of provisional tax if you do not carry on any business and your taxable income: • Will not exceed the tax threshold for the tax year; or • From interest, dividends, foreign dividends and the rental of fixed property and remuneration from an unregistered employer will be R30 000 or less for the tax year. Deceased estates are not provisional taxpayers.
DEDUCTIONS FOR RETIREMENT FUND CONTRIBUTIONS Amounts contributed to pension, provident and retirement annuity (RA) funds are deductible by fund members. Amounts contributed by employers and taxed as fringe benefits are treated as contributions by the individual employee. The deduction is limited to 27.5% of the greater of remuneration for PAYE purposes or taxable income (both excluding retirement fund lump sums and severance benefits). The deduction is further limited to the lower of R350 000 or 27.5% of taxable income before the inclusion of a taxable capital gain. Any contributions that exceed the limits are carried forward to the next tax year and deemed to be contributed in that year. The amounts carried forward are reduced by contributions set off when determining taxable retirement fund lump sums or RAs.
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
All taxpayers: If you contribute to a medical scheme, you are entitled to a tax rebate (referred to as a medical scheme contributions tax credit) of up to R319 each for the individual who paid the contributions and the first dependant on the medical scheme and up to R215 a month for each additional dependant. Additional tax credit for taxpayers under 65 years: You are entitled to a tax credit of 25% of an amount equal to your qualifying medical expenses plus an amount by which your medical scheme contributions exceed four times the medical scheme contribution tax credit for the tax year, limited to the amount that exceeds 7.5% of taxable income (excluding severance or retirement fund lump sums). Additional tax credit for taxpayers with a disability and/or with a disabled family member or taxpayers over 65 years: You are entitled to a tax credit of 33.3% of your qualifying medical expenses plus 33.3% of the amount by which your medical scheme contributions exceed three times the medical scheme contribution tax credit for the tax year.
• R2 million gain/loss on disposal of primary residence • Annual exclusion of R40 000 to individuals and special trusts • R300 000 in the year of death (instead of the annual exclusion) • Retirement benefits • Most personal use assets • Payments in respect of original long-term insurance policies • R1.8 million for individuals (at least 55 years of age) when a small business with a market value that does not exceed R10 million is disposed of.
TAX ON LOCAL AND FOREIGN DIVIDENDS
ESTATE DUTY
DEDUCTIONS FOR MEDICAL AND DISABILITY EXPENSES
Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to individuals. Dividends received by resident individuals from real estate investment trusts (Reits) are subject to income tax. Non-residents in receipt of those dividends are subject only to dividends tax. Most foreign dividends received by individuals from foreign companies (a shareholding of less than 10% in the foreign company) are taxable at a maximum effective rate of 20%.
Rate: 20% on the first R30m; 25% on estates above R30m. Amounts in an estate up to R3.5m are not taxed. For the second-dying spouse, amounts up to R7m less the exemption used by the first-dying spouse are not taxed.
TAX-FREE SAVINGS ACCOUNTS
CALCULATE REAL AFTER-TAX RETURNS ON INTEREST-BEARING INVESTMENTS CPI INFLATION RATE: 2.1% IN MAY 2020
MARGINAL TAX BRACKET
MARGINAL TAX RATE
BREAKTHROUGH POINT
R0 to R205 900 R205 901 to R321 600 R321 601 to R445 100 R445 101 to R584 200 R584 201 to R744 800 R744 801 to R1 577 300 R1 577 301 and above
18% 26% 31% 36% 39% 41% 45%
2.6 2.8 3.0 3.3 3.4 3.6 3.8
The real rate of return on money you invest is affected not only by inflation, but also by the rate at which you are taxed. The lower the inflation rate, the better your real rate of interest is likely to be. To calculate your real return, first work out what your after-tax return will be and then subtract the inflation rate. The table provides the marginal tax brackets and the interest rates at which you will start to receive a real (after-tax) rate of return on your money if it is taxed at that rate. The calculations ignore the fact that in the 2020/21 tax year, the first R23 800 (R34 500 if you are over 65 years of age) you earn in interest is tax-free. Any interest you receive above the exempt amount is taxed at your marginal tax rate. 68
PERSONAL FINANCE | 3 r d QUARTER 2020
No income tax on interest, dividends withholding tax or capital gains tax. Contributions are limited to R33 000 a year, up to R500 000 over your lifetime. Contributions that exceed the limits will be taxed at 40%.
DONATIONS TAX • Donations tax payable by the donor is levied at a rate of 20% on property donated with a value up to R30 million. The rate on property with a value of more than R30 million is 25%. • The first R100 000 of property donated in each year to a natural person is exempt from donations tax. • Donations between spouses are exempt from donations tax. • Tax deductions on donations to approved public benefit organisations are limited to 10% of taxable income before deducting medical expenses (excluding retirement fund lump sums and severance benefits).
D A T A B A N K
RETIREMENT FUND LUMP-SUM WITHDRAWAL BENEFITS LUMP SUM R0 to R25 000 R25 001 to R660 000 R660 001 to R990 000 R990 001 and above
RATE OF TAX 0% of taxable income 18% of taxable income above R25 000 R114 300 plus 27% of taxable income above R660 000 R203 400 plus 36% of taxable income above R990 000
Retirement fund lump-sum withdrawal benefits consist of lump sums from a pension, pension preservation provident, provident preservation or retirement annuity fund on withdrawal (including assignment in terms of a divorce order). The tax on a retirement fund lump-sum withdrawal benefit (X) is equal to: • The tax determined by applying the tax table to the aggregate of lump sum X plus all other retirement fund lump-sum withdrawal benefits accruing from March 2009, all retirement fund lump-sum benefits accruing from October 2007 and all severance benefits accruing from March 2011; less • The tax determined by applying the tax table to the aggregate of all retirement fund lump-sum withdrawal benefits accruing before lump-sum X from March 2009, all retirement fund lump-sum benefits accruing from October 2007 and all severance benefits accruing from March 2011.
RETIREMENT FUND LUMP-SUM BENEFITS OR SEVERANCE BENEFITS LUMP SUM R0 to R500 000 R500 001 to R700 000 R700 001 to R1 050 000 R1 050 001 plus
RATE OF TAX 0% of taxable income 18% of taxable income above R500 000 R36 000 plus 27% of taxable income above R700 000 R130 500 plus 36% of taxable income above R1 050 000
Retirement fund lump-sum benefits consist of lump sums from a pension, pension preservation, provident, provident preservation or retirement annuity fund on death retirement or termination of employment due to attaining the age of 55 sickness accident injury incapacity redundancy or termination of the employer’s trade. Severance benefits consist of lump sums from or by arrangement with an employer due to relinquishment, termination, loss, repudiation, cancellation or variation of a person’s office or employment. Tax on a retirement fund lump-sum benefit or a severance benefit (Y) is equal to: • The tax determined by applying the tax table to the aggregate of lump-sum or severance benefit Y plus all other retirement fund lump-sum benefits accruing from October 2007 and all retirement fund lump-sum withdrawal benefits accruing from March 2009 and all other severance benefits accruing from March 2011; less • The tax determined by applying the tax table to the aggregate of all retirement fund lumpsum benefits accruing before lump-sum Y from October 2007 and all retirement fund lump-sum withdrawal benefits accruing from March 2009 and all severance benefits accruing before severance benefit Y from March 2011.
TRANSFER DUTY RATES
VALUE OF PROPERTY RATE R1 - R1 000 000 0% R1 000 001 - R1 375 000 3% of the value above R1 000 000 R1 375 001 - R1 925 000 R11 250 + 6% of the value above R 1 375 000 R1 925 001 - R2 475 000 R44 250 + 8% of the value above R 1 925 000 R2 475 001 - R11 000 000 R88 250 +11% of the value above R2 475 000 R11 000 001 and above R1 026 000 + 13% of the value above R11 000 000 Transfer duty is payable on transactions that are not subject to VAT.
SARS INTEREST RATES
RATES OF INTEREST FROM 1 FEBRUARY 2020: Fringe benefits - interest-free or low-interest loan (official rate): 7.25% a year RATES OF INTEREST FROM 1 NOVEMBER 2019: Late or underpayment of tax: 10% a year Refund of overpayment of provisional tax: 6% a year Refund of tax on successful appeal or where the appeal was conceded by the South African Revenue Service: 10% a year Refund of VAT or late payment of VAT: 10%
WHO DOES NOT HAVE TO SUBMIT A TAX RETURN?
You do not have to submit a return if: your total pre-tax earnings from one employer were less than R500 000 for the tax year, you have no other sources of income (for example rental or interest) and there are no deductions that you want to claim.
Information The information on pages on these 70 and pages 71istaken fromfrom the South the South African African Revenue Revenue Service’ Service’ s (SARS) s Tax2020 Guide.Budget Tax Guide.
TRAVELLING ALLOWANCES
Rates per kilometre, which may be used in determining the allowable deduction for business travel against an allowance or advance where actual costs are not claimed, are determined by using the following table:
VALUE OF THE VEHICLE (INCLUDING VAT) Up to R95 000 R95 001 to R190 000 R190 001 to R285 000 R285 001 to R380 000 R380 001 to R475 000 R475 001 to R570 000 R570 001 to R665 000 Exceeding R665 000
FIXED COST PER YEAR R31 332 R55 894 R80 539 R102 211 R123 955 R146 753 R169 552 R169 552
FUEL COST PER KM 105.8c 118.1c 128.3c 138.0c 147.7c 169.4c 175.1c 175.1c
MAINTENANCE COST PER KM 37.4c 46.8c 51.6c 56.4c 66.2c 77.8c 96.6c 96.6c
Note: • 80% of the travelling allowance must be included in the employee’s remuneration for the purposes of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes. • No fuel cost may be claimed if the employee has not borne the full cost of fuel used in the vehicle and no maintenance cost may be claimed if the employee has not borne the full cost of maintaining the vehicle (for example the vehicle is covered by a maintenance plan). • The fixed cost must be reduced on a pro-rata basis if the vehicle is used for business purposes for less than a full year. • The actual distance travelled during a tax year and the distance travelled for business purposes substantiated by a logbook are used to determine the costs that may be claimed against a travelling allowance. Alternative simplified method: Where an allowance or advance is based on the actual distance travelled by the employee for business purposes no tax is payable on an allowance by an employer to an employee up to the rate of 398 cents per kilometre regardless of the value of the vehicle. However, this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.
FRINGE BENEFITS: EMPLOYER-OWNED VEHICLES • The taxable value is 3.5% of the determined value (the cash value including VAT) a month of each vehicle. Where the vehicle is: – The subject of a maintenance plan when the employer acquired the vehicle, the taxable value is 3.25% of the determined value; or – Acquired by the employer under an operating lease, the taxable value is the cost incurred by the employer under the operating lease plus the cost of fuel. • 80% of the fringe benefit must be included in the employee’s remuneration for the purpose of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the vehicle for the tax year is for business purposes. • On assessment the fringe benefit for the tax year is reduced by the ratio of the distance travelled for business purposes (substantiated by a logbook) divided by the actual distance travelled during the tax year. • On assessment further relief is available for the cost of the licence, insurance, maintenance and fuel for private travel if the employee has borne the full cost thereof and if the distance travelled for private purposes is substantiated by a logbook.
SUBSISTENCE ALLOWANCES AND ADVANCES If you are obliged to spend at least one night away from your usual place of residence on business and you receive an allowance or advance for accommodation in South Africa, which is to pay for: • Meals and incidental costs: R452 a day is deemed to have been spent; or • Incidental costs only: R139for each day is deemed to have been spent. Where the allowance or advance is for accommodation outside South Africa, a specific amount per country is deemed to have been spent. Refer to www.sars.gov.za > Legal counsel > Secondary legislation > Income tax notices > 2018.
TURNOVER TAX FOR MICRO BUSINESSES
Financial years that end on any date between March 1 2019 and February 28 2020.
TAXABLE TURNOVER
RATE OF TAX
Up to R335 000 R335 001 to R500 000 R500 001 to R750 000 R750 001 and above
0% of turnover 1% of taxable turnover above R335 000 R1 650 plus 2% of taxable turnover above R500 000 R6 650 plus 3% of taxable turnover above R750 000
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D A T A B A N K
ANNUITY RATES
ABOUT THE TABLES These tables show initial monthly pensions guaranteed for 10 years and
Rates valid for July 1, 2020. Information supplied by the relevant life assurance companies.
COMPULSORY ANNUITIES COMPANY
MONTHLY ANNUITY RATE Age 55
Age 60
Age 65
Age 70
Liberty
R 5 362.52
R 5 637.21
R 6 052.61
R 6 625.37
Metropolitan
R 5 840.34
R 6 120.73
R 6 494.68
R 6 926.61
Momentum
R 5 321.66
R 5 884.63
R 6 588.10
R 7 342.98
Old Mutual
R 6 276.20
R 6 487.38
R 6 781.04
R 7 152.03
Sanlam
R 5 799.96
R 6 219.82
R 6 654.66
R 7 132.50
Liberty
R 5 020.87
R 5 278.77
R 5 632.73
R 6 135.31
Metropolitan
R 5 151.54
R 5 423.03
R 5 814.74
R 6 251.10
Momentum
R 4 909.66
R 5 390.13
R 5 997.61
R 6 767.02
Old Mutual
R 5 970.52
R 6 156.56
R 6 412.65
R 6 752.23
Sanlam
R 5 258.15
R 5 660.01
R 6 083.86
R 6 553.70
MALE
FEMALE
VOLUNTARY ANNUITIES COMPANY
MONTHLY ANNUITY RATE Age 55
Age 60
Age 65
Age 70
Liberty
R 5 362.52
R 5 637.21
R 6 052.61
R 6 625.37
Metropolitan
R 5 840.34
R 6 120.73
R 6 494.68
R 6 926.61
Momentum
R 5 221.61
R 5 758.53
R 6 431.77
R 7 254.27
Old Mutual
R 6 276.20
R 6 487.38
R 6 781.04
R 7 152.03
Sanlam
R 5 799.96
R 6 219.82
R 6 654.66
R 7 132.50
MALE
FEMALE Liberty
R 5 020.87
R 5 278.77
R 5 632.73
R 6 135.31
Metropolitan
R 5 15.54
R 5 423,03
R 5 814,74
R 6 251,10
Momentum
R 4 827.22
R 5 283.97
R 5 861.20
R 6 599.04
Old Mutual
R 5 970.52
R 6 156.56
R 6 412.65
R 6 752.23
Sanlam
R 5 258.15
R 5 660.01
R 6 083.86
R 6 553.70
COMPULSORY JOINT LIFE AND SURVIVORSHIP ANNUITIES COMPANY
MONTHLY ANNUITY RATE
Age 55
Age 60
Age 65
Age 70
Liberty
R 4 785.03
R 5 009.11
R 5 307.35
R 5 757.54
Metropolitan
R 4 878.63
R 5 066.59
R 5 359.86
R 5 799.58
Momentum
R 4 538.97
R 4 941.77
R 5 461.87
R 6 158.62
Old Mutual
R 5 698.76
R 5 837.21
R 6 042.22
R 6 337.61
Sanlam
R 4 950.26
R 5 332.13
R 5 723.99
R 6 148.84
MALE & FEMALE
VOLUNTARY JOINT LIFE AND SURVIVORSHIP ANNUITIES COMPANY
MONTHLY ANNUITY RATE
Age 55
Age 60
Age 65
Age 70
Liberty
R 4 785.03
R 5 009.11
R 5 307.35
R 5 757.54
Metropolitan
R 4 878.63
R 5 066.59
R 5 359.86
R 5 799.58
Momentum
R 4 471.19
R 4 853.44
R 5 344.15
R 6 004.88
Old Mutual
R 5 698.76
R 5 837.21
R 6 042.22
R 6 337.61
Sanlam
R 4 950.26
R 5 332.13
R 5 723.99
R 6 148.84
MALE & FEMALE
OFFSHORE ALLOWANCES HOW MUCH YOU CAN TAKE OUT OF SOUTH AFRICA Offshore investment allowance: R10 million each year Discretionary allowance for adults: R1 million each year Travel allowance for children under 18: R200 000 each year The tax on international air travel is R190 per passenger or R100 for flights to Southern African Customs Union countries.
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then for life if, at the ages listed, you buy a life annuity (see definition below) with R1 million. In these tables. the amount escalates at a rate of 6 percent a year.
WHAT IS AN ANNUITY?
An annuity is a payment you receive annually. The life assurance industry has adapted the word to mean any amount you receive regularly (normally monthly) from an investment, usually in the form of a pension, when you retire.
COMPULSORY PURCHASE ANNUITY
This must be bought with at least two-thirds of the benefits you receive from your pension fund or retirement annuity when you retire (provident funds are excluded from this requirement). If you are a member of a defined-benefit pension fund, the annuity is normally provided to you without any choice.
VOLUNTARY ANNUITY
This is an investment you choose to make with a lump sum from any source. With voluntary annuities, you can invest for a fixed period. For example, for 10 years – or for life. Note that compulsory and voluntary annuities are taxed differently, both on the investment itself and on your income from it. This is because you buy a compulsory annuity with pre-tax savings whereas you buy a voluntary annuity with after-tax savings.
TRADITIONAL (LIFE) ANNUITY
You buy this type of annuity from a life assurance company. You are guaranteed a fixed income for life, which may or may not escalate annually at a certain rate, depending on whether you have a level or escalating annuity. In the initial years, you will receive less from an escalating annuity than from a level annuity but the level annuity will be eroded over the years by inflation. Because the life assurance company takes on your longevity risk, your investment normally dies with you. You can, however, buy an annuity “guaranteed for X years and then for life”, which means your nominated heir will receive the income if you die before the X years are up. After X years, the annuity dies with you. Joint life annuities are based on a pension being paid to the surviving spouse after the death of his or her partner.
LIVING (INVESTMENT-LINKED) ANNUITY
You buy this type of annuity from an asset manager and can choose the underlying Inv. You must decide each year how much of your investment you want to draw down as a pension with a minimum of 2.5 percent and a maximum of 17.5 percent. When you die, what is left of your investment is passed on to your heirs. However, you take the risk of outliving your capital.