IOL Personal Finance - ​4th Quarter 2020

FOR ALL

THE BUSINESS INTERRUPTION SAGA

COVID-19 AND THE PROPERTY MARKET INVESTING IN COMMODITIES

COVER STORY

Free education? It’s here!

The internet is providing boundless learning opportunities for anyone with a smartphone 9

REGULARS

14 A n end to innocence: the business interruption saga Insurers caught off guard by pandemic and ensuing lockdowns.

19 Real estate gets real – how the pandemic is changing the property market

“New normal” dawns for residential and commercial property.

24

ow Covid-19

The journey from ostrich shells to Bitcoin. 30

33 Taxpayers ‘shouldn’t be bullied’ Recourse when SARS oversteps the mark.

36 T he future of fi nancial advice

New-generation advisers thrive under lockdown

38 A p assion for resolving disputes

The CEO of the Ombudsman for ShortTerm Insurance.

40 Beneficiary funds explained The Fidentia scandal’s positive legacy.

44 S etting up a business in the UK

Get your paperwork in order.

48 W hen dog-bite cases go to court

Owners rarely get sympathy from judges.

50 L ooping the loop

Relaxing regulation of loop structures.

4 Upfront Lockdown

8

DATABANK

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

MARTIN HESSE

COVID AS CATALYST

While I wouldn’t wish another 2020 on my worst enemy, there have been some positive aspects to the pandemic. Commentators in various fields refer to how the lockdowns acted as a catalyst in accelerating trends, largely driven by technology, that had begun well before Covid-19. Two in particular come to mind: the shift to e-commerce and the work-from-home phenomenon.

These shifts precipitated fundamental change in the commercial and residential property markets, although other factors, such as the lowering of interest rates, also played a role. The commercial property sector – particularly office and retail space – suffered a huge knock and is now searching for ways to reinvent itself. On the other hand, residential property in soughtafter areas boomed once the restrictions on estate agents were eased. Alan Duggan explores these trends in his thoroughlyresearched article on page 17.

A huge but massively under-reported and under-appreciated trend in the past decade or so has been the growth of online learning. Here too the pandemic has provided a welcome boost. For thousands of people with access to the internet, completing a course online was a productive way of spending time during lockdown. Anna Rich’s story on page 7 emphasises how easy and affordable it is to better yourself, no matter how humble your background and no matter how old you are.

So much for the positives. One of the darkest stories to come out of the pandemic is the collective legal battle hundreds of small businesses in many different countries are having with their insurers on claims for business interruption cover. In a sea of inflamed passions, specialist insurance writer Gareth Stokes takes a cool, objective and balanced view of the saga – on page 12. Also in this issue: learn about commodities, crypto, beneficiary funds and the financial implications of dog bites. Oh, and there’s the amazing performance of the Old Mutual Gold Fund.

Enjoy the read.

VOLUME 85

4th QUARTER 2020

An Independent Media (Pty) Ltd publication

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EMERGENCY ADVICE IN A TIME OF CRISIS

Secure Your Retirement – How to Beat the Effects of Corruption, Ratings Downgrades and a Global Pandemic

Authors: Bruce Cameron and Wouter Fourie

Publisher: Zebra Press (Penguin Random House)

Price: R190

This book came out in a hurry, with good reason. Apart from the devastating health crisis, South Africans are facing an economic crisis of unprecedented proportions – unprecedented at least in the post-1994 era. Most people are extremely worried about their financial security, which is inextricably linked with the future of the country. While young people starting out in their careers are flexible and adaptable, and have fewer commitments that may tie them to a specific job or place, older people who are coming to the end of their careers or already in retirement have far fewer options, with little choice but to face the storm.

And it has been a perfect storm. Unlike in 2008 when, with a relatively robust economy, we were able to withstand the shocks of the global financial crisis, the pandemic hit us this year like a kick to the stomach of someone already down, our economy and institutions pummeled by a decade of state plunder.

The book is based on a series of columns Bruce Cameron wrote for The Daily Maverick. It follows on from his and Wouter Fourie’s best-selling. The Ultimate Guide to Retirement in South Africa (also Zebra Press).

“I decided to write the columns when I saw how pensioners were panicking in the wake of the Covid-19 pandemic and nine years of the Zuma regime,” Cameron

writes in the upfront acknowledgements section. “I was so concerned about the situation in South Africa that I offered to write the columns for free. I thought at the time there would be about three of them. In the end, the project grew into 20 columns.”

Secure Your Retirement unpacks the challenges facing older South African investors, which are not likely to dissipate any time soon. As Cameron points out: “Normally one would say to most investors, including pensioners, ‘Wait it out’. Unfortunately, you cannot wait for the crisis to pass this time around. The future is going to be different, but we still don’t know how different it will be…”

The book provides guidance on selecting pension products (you have a choice of a living annuity, a life, or guaranteed, annuity and a hybrid product) for those who haven’t done so, or who are still able to change. It looks at drawdown strategies for living annuity pensioners in order to avoid or delay for as long as possible that financial point of no return when you reach the maximum annual drawdown of 17.5 percent. It gives advice for women, who are particularly at risk, and it deals with the rising costs of health care and the increasing threat of dementia.

Cameron, founder of Personal Finance and founding editor of this magazine, is now semi-retired. Fourie heads up the financial planning practice Ascor Independent Wealth Managers in Pretoria and was the Financial Planning Institute’s Financial Planner of the Year for 2015/16. Their work is based on research by the country’s largest pension fund administrator, Alexander Forbes, as well as life companies Just SA and Sanlam – Martin Hesse

YOUR LETTERS

WORKERS’ RETIREMENT FUND CONTRIBUTIONS

I run a small business and many of my employees are asking if they can opt out of contributing to our company’s group retirement annuity (RA) fund in favour of more money in their pockets. I can continue the company contributions, but how do I emphasise why it’s important to keep their contributions in place too?

Name withheld

Jac de Wet, a financial adviser from PSG Wealth Somerset West Mall, responds: This is understandable given the tough economy, but it is best to encourage continued contributions. Most insurers or investment platforms offering group RAs do not have the same rules as pension funds, for example. It will also depend on the wording in your employment contracts, but generally RA contributions are voluntary, and it is ultimately your decision to contribute on your employees’ behalf.

While the rules of most funds allow an employer to terminate or pause its participation in the fund, and thus the payment of contributions to it, on written notice to the fund, please first get clarification from the fund administrators if you are allowed to make any changes.

Your employees also need to understand that they currently enjoy a tax deduction because of their retirement contributions and if they opt to receive these as a salary increase instead, this may result in them falling into a higher tax bracket, which would mean that they would effectively be paying more tax.

The long-term benefits of regularly contributing as much as possible to retirement funds cannot be emphasised enough. Not only do employees compromise the compounded return they could get if they cease contributions, but they also forgo the opportunity to put themselves in the best possible position to be financially free later in life. I’d encourage you to present what a change would look like, compared with staying invested. Consulting a financial adviser to assist for an accurate comparison would also help.

CASH PORTION OF RETIREMENT PAYOUT

I’m retiring from my company’s pension fund soon and would like to reinvest the cash portion I will be paid out. Is it a better idea to include it

with the rest of my retirement savings to buy into a living or life annuity, or should I look at something else? Ideally, I’d like to access the money (and hopefully good profits) in 5-10 years, and I am relatively healthy.

Name withheld

Pierre Puren, a financial adviser from PSG

Jeffrey’s Bay, responds:

Given your needs, as provided, it would be wise to opt for a withdrawal equal to the portion needed to address your liquidity needs postretirement. Keep in mind that you are granted the opportunity to access up to one third in cash of your pension fund, but that any amount over R500 000 will be subject to a once-off tax deduction as per the retirement tax tables.

Once an annuity has been purchased (life- or living) no further lump sum withdrawals are permitted. In the case of a living annuity, you will have the opportunity to amend your chosen income annually to an amount no less than 2.5 percent or more than 17.5 percent of your c apital value, by means of monthly, quarterly, bi-annual or annual payment.

Working closely with a financial adviser will help to ensure all considerations are included in your decision.

COVER WHEN WORKING FROM HOME

I am an administration worker in a large company and have been able to work from home during the Covid-19 lockdown, using my own desktop computer.

Once the lockdown is over, my company will let me work from home three days a week on a permanent basis. How will this affect my household contents and building cover?

Name withheld

Luzanne Wait, an insurance adviser from PSG Jeffrey’s Bay, responds:

The computer would still be covered under household contents. This will not influence your household goods and building insurance. Please note that the personal liability section of your policy excludes any work-related incidents, if, for instance, a client visits you at home.

It is, however, best to check with your own insurer, as not all policies are the same and the cover may differ. Also be aware that there might be a higher risk of cyber-crime at home, so make sure your device security is up to date.

FREE EDUCATION? IT’S HERE!

While quality varies, the number of courses you can access online has risen exponentially in recent years, providing boundless learning opportunities for anyone with a smartphone. Anna Rich explored the free-education phenomenon.

The doors to learning have been opened, thanks to the internet.

Thousands of online courses are at your fingertips, and it would be wise to start using them.

Let’s take a quick temperature check of the global job market back in January 2018. A World Economic Forum (WEF) report, “Towards a Reskilling Revolution: A Future of Jobs for All”, pointed out some

intensifying trends:

• Our skill sets don’t match those we need to do our jobs, said one in four survey participants in OECD (Organisation for Economic Co-operation and Development) countries.

• Even if we have a good job, technological changes threaten to make our skills outdated at best, and irrelevant at worst.

The Covid-19 pandemic has turned up the heat, causing massive job losses, and accelerating our reliance on technology. But even before Covid-19 set in here, Stats SA’s labour force survey for the first quarter of 2020 showed that unemployment numbers increased to 7.1 million, and almost two-thirds of this group are aged 15 to 34.

The antidote? Though graduate

people’s prospects in the labour market, commented Stats SA.

But we shouldn’t stop once we’ve graduated. “Individual workers will have to engage in life-long learning if they are to remain not just employable but are to achieve fulfilling and rewarding careers,” WEF founder Klaus Schwab wrote in the jobs report.

Enter the Moocs phenomenon

It’s barely 30 years since the early days of the internet. But as the web widened, so too did the realisation that it offered the possibility of making educational resources open to all. Or at least to all who have internet access and a suitable device.

An online course can be “massive” or, in other words, conducted at a scale far in excess of courses in physical venues. And it can be “open”, in that it has no barriers to entry, such as competencies, location, or cost. The concept is neatly summed up in the acronym Mooc: massive open online course.

The first course to be labelled “Mooc” was presented in 2008, by Canadian academics. Aptly, it was an interactive course on connective knowledge, and in addition to a small in-person group, a couple of thousand people participated online.

and Udacity. And in 2012, along with Harvard, MIT launched their non-profit Mooc, edX. In the same year, FutureLearn was set up in the UK, by Open University. Some Moocs started outside universities. In 2008, Salman Khan tutored his cousins on the internet, then posted maths lessons on YouTube, which morphed into Khan Academy. And it’s no wonder Eren Bali was inspired to start Udemy, with co-founders, in 2010. He grew up in a poorly resourced Turkish village, but after his family bought a computer, he was able to tap into online communities that helped him succeed at the International Maths Olympiad.

Zooming in on edX

Many different universities provide courses on Moocs platforms, and they work in a fairly similar way. We’ll take edX as our first example. To help you decide whether a course is suitable, they outline:

• What you’ll learn

• Who the instructors are

• Which academic institution offers it

• Whether any prior knowledge is necessary

• The duration of the course

• The hours per week you need to spend on it

• Testimonials from previous learners

The price for a verified certificate. Typically, courses are delivered in a series of videos, often under 10 minutes long, with transcripts. They’re mostly pre-recorded, so you can access them at a time that fits your schedule. After every few videos, there is a discussion forum. While they give a sense of connection with your fellow learners, the value of their input is questionable. Readings are also supplied, and there are practice tasks – often multiple-choice questions on the video

At the start of your studies, you are prompted to choose whether to pursue the “audit” or the “verified” track. “Auditing” the course means doing it free of charge. EdX encourages learners to pursue verification. This gives you unlimited access to the course materials, while with the audit, you lose all access and progress at the end date. Also, it gives you access to the graded exercises. If you pass these, you will receive a certificate. EdX statistics show that when learners pay for verification, it incentivises them to complete the course. The price of a verified certificate varies, but many are USD49. It doesn’t sound like much, but at current exchange rates, this is over R800.

In partnership with universities all over the world – including Wits University – edX now offers over 3 000 courses. They have had more than 34 million learners to date.

The most popular courses – judging by enrolment figures – are Harvard’s “Introduction to Computer Science (CS50)” with almost 2.5 million enrolled, and MIT’s “Introduction to Computer Science and Programming Using Python”.

If computer programming isn’t for you, perhaps a creative approach to chemistry might pique your interest. In “Science & Cooking: From Haute Cuisine to Soft Matter Science”, Harvard researchers work with chefs like Ferran Adrià, formerly of world renowned El Bulli restaurant, to show how chemical reactions affect taste and flavour.

Or there’s “The Science of Happiness”, which explores research based practices

to Needs”.

And if you think a subject like illustration is beyond the ambit of online, two University of Newcastle professors prove that it can be done, in their course titled, “Drawing Nature, Science and Culture: Natural History Illustration 101”. They won an edX prize for “excellent, innovative course design and delivery”.

A word on Coursera

While this (even larger) platform also offers “audit” or “certificate” options, most of the courses are not free. You can do a free

receive. Besides Andrew Ng’s free machine learning course that sparked the launch of Coursera, another free standout is “Financial Markets”, delivered by Nobel Prize winner and Yale economics professor Robert Shiller.

However, they’ve made some popular courses completely free – with a certificate on completion – until 31 December.

Udemy: a very different option

On university-affiliated Moocs, course presenters tend to be lecturers. In contrast, anyone can teach on Udemy: click the

the quality and relevance of the courses. “I’ve always wanted to help to make a difference in education, and particularly in maths,” she says. “During lockdown, I was searching for ways to make my content available when I found Udemy. And since there is so much English content available, I decided to concentrate on maths in Afrikaans.” Bisschoff explains that Udemy has pricing tiers for tutors. There’s a business option too: Udemy markets your course in exchange for half of your profits. “But I haven’t seen results,” she says.

Udemy reached over 35 million students

in January 2020, just under 10 years since its inception. Courses are delivered in over 65 languages. Prices start at R180, and they offer a 30-day money back guarantee and a gift option. Over 8 000 courses are free.

The types of courses offered include some that have no chance of featuring in a university line-up. Consider “Radiate Confidence: How to Create a 1000 Watt Presence”, or “Tarot Card Success – The Complete Tarot Reading Course”.

Their most purchased business course, with 380 000 students (and counting), is “An Entire MBA in 1 Course: Award

course. I'm just grateful there is the 2X function so the wasted time was limited.”

Will completing a Mooc help me land a job?

“To be honest, I’d never heard of Moocs,” says Glenda Pillay, a recruitment consultant at Affirmative Portfolios in Umhlanga, KwaZulu-Natal. However, she is familiar with online courses in general, and says “these do carry weight for junior roles”.

Client specifications for vacancies are either a diploma, a bachelors, honours or masters degree, or a board certificate,

experience is rather different. “We are seeing a massive increase in the number of short courses completed by applicants,” he says. “Moocs and short courses are seen as an add-on to an existing qualification.” They are of value when the job applicant actively uses what they learned from them in their daily work, he adds. “A course does not equate to a skill unless proficiency is demonstrable.”

Durandt’s agency specialises in IT and digital, engineering, executive and office recruitment, and he highlights programming as an area in which Moocs

This local loves Moocs

Shireen Fisher, a freelance journalist, was introduced to Moocs while studying in-person at university, ironically.

“We did Moocs for each module at varsity because our lecturer set them as assignments.” The one that stood out for her was “Data Journalism Fundamentals”, through the University of Hong Kong.

“I have actually used those data journalism skills,” says Fisher.

“I learned to dig through information and extract facts to build a story from that. When you speak to a source, they

might not be telling you everything.”

Fisher didn’t stop her Moocs experience at that. Last year, she signed up for “Visual Journalism: Looking at the other in the age of the selfie” from the Knight Center for Journalism, which addressed new ways of reaching audiences, using both social media and traditional platforms. “I just did it for fun, and I really enjoyed it,” says Fisher. “Everyone has a phone, so everyone is a photographer now. But this course required you to put thought into how you capture images.”

In May, she completed “Journalism in a pandemic: covering Covid-19 now and

in the future”, led by an award-winning journalist. “This course came out when we were all wondering what on earth was happening. I did it because I wanted to know more than you would find in news articles.

I learned interesting facts about previous pandemics, like the Spanish flu, and found some parallels in the way the current pandemic was portrayed by the media and certain political figures.”

Fisher has included these Moocs courses on her CV, and hopes that they will contribute to her career progress. “I am continuing to upskill with Moocs, as I search for stability, job-wise.”

too. South Africa is usually a bit behind the curve.”

But are their clients receptive to Moocs? Would they consider a candidate who had completed only the audit track, without certification, but could show that they had acquired relevant skills?

There is no definitive answer, says O’Brien. Although it is tempting to complete the courses on the free audit track, she feels that it is probably worthwhile to pay for certification. “However, in IT in particular, they want the person who can do the job. If the candidate can program in a certain language or perform a certain function, and the assessment shows that they are at the appropriate skills level, our clients often don’t care about certification.”

For some of the traditional corporates, even certified completion of Moocs is not enough. “They are still stuck on formal qualifications,” says O’Brien. “But I’m sure clients of the future are going to look at Moocs.”

EdX and similar platforms are a very exciting option for South Africans who have to overcome cost and location barriers to access tertiary education, she adds. O’Brien flags another advantage to studying Moocs. “If I interview someone who says they’ve been unemployed for a year, I’ll ask, ‘How do you spend your time?’ to find out if they’re trying to bring in an income, or to upskill themselves. Is this someone who says, ’I started tutoring

my neighbour’s kids, and walking dogs,’ or someone who says, ‘Well, I sleep late and watch TV.’

“If they have been unemployed, I want to see that they have had a productive outlet for their time, such as studying. They’ve asked, ‘How can I upskill myself?’ This shows that they’re proactive, which gives them a sense of hope, and it shows a prospective employer that they are ambitious, self-motivated, and not afraid of new challenges. And when they do land a job interview, it gives them confidence,” she adds. “There is just no harm in doing Moocs; they can only benefit you.”

An upside of the post-Covid world is that location will no longer be an issue, says O’Brien. “As a South African, you will able to apply for a job in New York, London, or wherever else.”

She advises job seekers to look at global job postings to identify patterns in the skill sets required.

Analysing the types of courses offered on Moocs platforms provides valuable insights into global trends – and into industries that are not dying. “Moocs enable you to acquire skills that often aren’t yet available here, which allows you

to stay a little ahead of the curve.”

“With shrinking employment prospects post-Covid-19, job seekers have to do whatever they can to set themselves apart from all the other candidates,” O’Brien says. “Studying through Moocs is one way of doing so. And it demonstrates that they are committed to their career.”

AN END TO INNOCENCE THE BUSINESS INTERRUPTION SAGA

The worldwide legal dilemma on whether or not businesses were covered for anything as drastic as governments locking down economies in response to the Covid-19 pandemic will force insurers to rethink their risk mitigation strategies, writes Gareth Stokes.

Thousands of non-life commercial insurance policyholders will be forced to rethink their comprehensive risk mitigation and risk transfer strategies as the world comes to terms with the patchiness of the business interruption (BI) cover extensions offered before the pandemic. Many insurers entered 2020 with an incomplete understanding of the risk events their insurance policies covered against; but the extent of business losses suffered due to pandemic and subsequent national lockdowns has forced them to wise up, fast.

The fallout between business owners and non-life insurers following the Covid19 outbreak is already well-documented. Initial misunderstandings about the type of risk events covered under different sections of an insurance policy have since morphed into disputes about whether the BI-specific sections of a policy were intended to perform for perils such as lockdown and pandemic at all.

Wikipedia describes BI insurance as “cover for the loss of income that a business suffers following a disaster, due to the disaster-related closing of a

business facility or due to the rebuilding process after a disaster”.

This definition fails to mention that a standard BI cover only performs for a predefined set of loss events, and only if that event causes material or physical damage to an asset that is insured on the policy.

For example, a restaurant that is forced to close down for three weeks following a serious fire in its kitchen can recover the cost of the resulting physical damage against the fire section of its commercial insurance policy. A payout on this section will allow it to rebuild and refurbish the kitchen and other affected parts of the premises. If its policy contained a standard BI section, it would also be able to claim for the loss of profits suffered by the restaurant due to its closure as a consequence of the fire event.

Standard BI cover is not automatically included on a commercial insurance policy but is added by the insured or insurance broker as a separate section alongside asset sections for buildings or fire.

There are many risk events that might cause business interruption without any

accompanying physical damage. Common examples include data breaches, bookings or event cancellations, or infectious disease outbreaks. These perils can be insured against under a subcategory of BI insurance referred to as non-physical damage BI, which is typically included on commercial insurance policies as extensions to standard BI cover. A business that is comprehensively insured might have a commercial insurance policy with an assets section, a standard BI section, and a BI extension.

Returning to our example, assume that the restaurant was closed by health authorities as a result of some of its patrons testing positive for a notifiable infectious disease. In this case there is no physical damage and the restaurant would only be able to claim for loss of profits if it had a contagious or infectious disease outbreak extension under the BI section of its policy, with all other terms and conditions met.

A year like no other

As we entered 2020 the South African insured environment consisted of firms

that had no insurance cover on the one hand, and firms that had commercial insurance policies without BI cover, with standard BI cover only, or with standard BI cover and various BI cover extensions, on the other.

On studying their policy wordings, the vast majority of South Africa’s small, medium and micro enterprise (SMMEs) discovered that they had no cover for BI losses. These businesses fell away at the earliest stage of the “insured or not” debate; but those with standard BI sections went the same way. The absence of physical damage meant that a business with standard BI cover could not be indemnified against its pandemic losses. And that leaves a relatively small sub-set of policyholders with BI extensions to weigh up their interpretations of policy

wordings against that of their insurers and reinsurers.

Caroline da Silva, deputy executive officer for regulatory policy at the Financial Sector Conduct Authority (FSCA), estimated that only three percent of BI policies in force locally had a contagious diseases extension. “These policies did not respond in the way that customers expected them to,” she said, during a media briefing on the fair treatment of financial services customers during the Covid-19 outbreak. The ensuing debates, fuelled by a pro-consumer media, have seen large insurers go head to head with policyholders and state market regulators to seek legal certainty.

The UK Financial Conduct Authority (FCA) brought a test case against eight insurers in an attempt to bring legal

certainty to policyholders, insurers and reinsurers as to how their non-physical damage BI extensions should perform. This action was intended to provide a steer for 370 000 policyholders, on cover under 700 policy wordings, issued by 60 different insurers in that market.

On 15 September 2020 the UK High Court handed down its ruling on the interpretation of 21 clauses commonly included in policy wordings.

“We brought the test case in order to resolve the lack of clarity and certainty that existed for many policyholders making BI claims,” explained Christopher Woolard, interim chief executive of the FCA. He said that the court had found “substantially in [the regulator’s – and policyholders’] favour”. The court ruling may have influenced some UK insurers to

pay more of their outstanding claims; but it has also given them a steer on which claims need not be considered. It was likely, at the time of going to press, that one or more of the affected insurers would challenge the ruling all the way to the UK Supreme Court.

South Africa’s FSCA was in constant communication with local insurers between March and September this year. In their initial communications they intimated that lockdown “could not reasonably be interpreted to be a trigger for a valid BI insurance claim”; but their position softened as the causation debate worked its way through local and offshore courts (see below). The main thrust of the FSCA’s BI insurance position was published as Communication 34 of 2020, dated 18 June. It informed insurers, insurance brokers and policyholders of how six broad categories of BI extension policy wordings should be interpreted.

The FSCA is on record that the contractual agreement between an insurer and insured, as set out in the

policy wording, takes precedent. “We have agreed with South Africa’s nonlife insurers that we need to gain legal certainty,” said Da Silva. “We were going to take the matter to court, with the regulator acting on behalf of policyholders, but we struggled with the local court system because of our locus standi.” Local non-life insurers have since indicated, through the FSCA, that substantial legal certainty will follow from the test case brought by the FCA in the UK and the cases currently before the South African courts. There are two court challenges to consider.

Restaurants versus insurers

In Café Chameleon v Guardrisk Insurance, handed down by the Western Cape High Court on 26 June 2020, the judge held the insurer liable to indemnify its policyholder for losses suffered since 27 March 2020 as a result of the Covid-19 outbreak in South Africa. Law firm Cliffe Dekker Hofmeyr (CDH) referred to the decision as “groundbreaking”. It is worth considering some of

the facts.

Café Chameleon had an insurance policy with Guardrisk that included a policy extension for BI occasioned by “human infectious or human contagious disease, an outbreak of which the competent local authority has stipulated shall be notified to them within a 50 kilometre radius of the insured’s property”. Café Chameleon was forced to close during level five of lockdown, from 26 March until 16 April 2020, and was unable to trade or receive customers under lockdown level four either. It duly claimed under its BI policy extension.

The ensuing uncertainty around insurer liability moved Café Chameleon to petition the High Court for a “declaratory order with regard to Guardrisk’s antecedent liability under the policy”. There were three important outcomes:

1. Covid-19 is a notifiable disease.

“The court held that in interpreting the business policy contract, the interpretation must be sensible and not have an un-business-like result and

that these factors should be considered holistically,” wrote CDH, in an article following the judgement.

2. Covid-19 caused or materially contributed to the lockdown regulations.

3. Lockdown was sufficient for legal liability to arise for the harm suffered by the insured. “It was accepted by the court that there is a clear nexus between the Covid-19 outbreak, and the regulatory regime that interrupted Café Chameleon’s business,” wrote CDH.

Guardrisk has taken the ruling on appeal and a decision is expected in the final quarter of 2020.

Few would argue that the pandemic and lockdown situation that played out through the second and third quarters of 2020 could have been anticipated. “The extent of the lockdown was not something that insurers considered when they were completing their pricing and risk management exercises,” said Andrew Coutts, head of intermediated business at Santam. The insurer is processing and managing claims in accordance with the guidance offered by the FSCA and will seek legal certainty where this is deemed necessary. And that brings us to the second court case.

Proximate cause is at the heart of the High Court challenge Ma-Afrika Hotels & Stellenbosch Kitchen and Insurance Claims Africa v Santam. The respondent’s position is similar to that offered in the Guardrisk case. “The insurer is not liable unless the insured can show a link between Covid-19 and the reduction in business … the loss cannot be due to an intervening cause such as a general fear among the public or a national lockdown, because those are not events that are covered by the policy,” said Coutts.

The matter was heard early in September; but judgment has been reserved. Santam has already indicated that it is prepared to appeal an unfavourable ruling up to the Supreme Court of Appeal, “depending on the nature of the [High Court] decision”.

The case for legal certainty

Can an insurer not use its discretion to indemnify policyholders where there is

an overarching economic imperative? Insurers are in a difficult position when interpreting policy wordings because they risk being tried in the court of public opinion. “We believe our policy wordings are clear in what they cover and what they do not cover,” said Coutts. “If we were to pay claims outside of the mandate of what is covered by the policy, we would not be able to recover [our losses] from reinsurance”.

It is not surprising that insurers are concerned over their potential liability for BI claims under the pandemic setting. “The exposure that local insurers have to

incurred through lockdown, which we believe the insurer should not be held accountable for, and the insured losses,” said Coutts. This position frequently emerges in the natural catastrophe environment, where reinsurers report the total economic cost of a natural disaster under the headings "economic loss" and "insured loss".

Interim relief

Another major issue that has arisen is with the timing of claims pay-outs. In many cases businesses were under threat of liquidation while their insurer’s liability remained unclear. This explains why the FSCA called on local insurers to consider the economic impact of delaying claims settlements. Insurers were advised to communicate frequently and openly with their policyholders on the progress of their claims, and to provide interim relief pay-outs as swiftly as possible. “The process to gain legal certainty takes a long time, we did not want policyholders to be devastated by the delays in receiving payments, so we negotiated with all insurers to make interim payments to their policyholders,” said Da Silva.

contingent BI extensions varies widely depending on whether their reinsurers come to the party or not,” said Da Silva. Assuming all reinsurance treaties perform, the industry could face liabilities in the region of R12 billion; but without reinsurance the exposure is much higher.

Reinsurers will play an important part in the ongoing non-physical damage BI debate, with early thought leadership pieces on future pandemic cover leaning towards a pooled risk solution similar to that used by the global insurance industry for exposures to damages caused by nuclear accidents, terrorism and war.

A central component of the debate is that insurers never foresaw, nor intended to cover, the economic losses suffered by insureds due to national lockdown.

“We see a clear distinction between the economic losses that every business

Heeding this call, Santam had paid out almost R870 million in interim relief payments to a subset of its policyholders in the hospitality, leisure and nonessential retail services industries by the end of August 2020. “These relief payments are being made to some of the most vulnerable small and mediumsized policyholders who have been worst impacted by the lockdown,” said Lizé Lambrechts, Santam group chief executive. The insurer’s half-year results to June 2020 reflect a R1.29 billion provision as its best estimate of exposures to contingent BI claims.

At the end of September, South Africa’s non-life insurers fell loosely into one or more of the following camps: insurers that have settled non-physical damage BI claims in line with their policy wordings; those that have offered settlements to sub-sets of their policyholders; and those that are seeking further clarity from the courts. The media’s relentless focus on insurers’ failures to compensate

'The insurer is not liable unless the insured can show a link between Covid-19 and the reduction in business'

policyholders has deflected from the fact that many insurers have already indemnified policyholders with BI extensions. Most local insurers have also responded proactively by offering settlements to qualifying policyholders while the court process plays out. Santam explains: “The relief payments are the outcome of our proposal to the regulator to help policyholders who have claimed for losses during the Covid-19 period while awaiting the outcome of the legal processes.”

Policyholders should not be misled by the pro-consumer reporting following the UK High Court and Guardrisk rulings. An important concession made by the FCA following its apparent victory is that “the judgment did not say that the eight defendant insurers are liable across all of

the 21 different types of policy wordings in the representative sample … each policy needs to be considered against the detailed judgment to work out what it means for that policy”. And the same holds in a South African context.

We will have to wait for the court processes to play out before celebrating the outcomes.

An industry in the crosshairs

Suggestions by the media that the business interruption matter has shaken trust in the short-term insurance sector should be weighed against the intention with which each party entered into their respective insurance contracts.

Yes, there will be some who expected their policies to perform; but many who are vociferously backing today’s court

actions were aware of the potential limitations of their cover. The next public storm will unfold when policyholders, with full foreknowledge of the sums insured on their policies, will contest that the quantum of their claim settlements are insufficient to stave off bankruptcy.

“Where the insurer determines that cover is provided by a policy, in principle, the next stage will be adjusting the loss,” wrote Flaxmans, a group of UK-based insurance claims advocates, in an article for the Chartered Insurance Institute.

“It must be anticipated that losses will be less than expected by the insured and of course there are unlikely to be many cases where the full sum insured will be payable.”

Regardless of what happens in local or offshore courts, the Covid-19 pandemic has changed the face of insurance forever.

REAL ESTATE GETS REAL HOW THE PANDEMIC IS CHANGING THE PROPERTY MARKET

As the coronavirus continues to wreak havoc across every sector of society, evidence suggests that the property market will look and function very differently in the months and years to come. Alan Duggan investigates the causes and possible effects.

In a New York Times opinion piece a few months ago, American comedian Jerry Seinfeld delivered an impassioned rebuttal of “some putz on LinkedIn” who claimed New York was essentially dead because everyone was leaving and wouldn’t be back.

As Seinfeld told it, intangibles such as energy, attitude and personality could not be “remoted” through even the best fibre-optic lines, explaining: “That’s the whole reason many of us moved to New York in the first place.”

Millions of New Yorkers want to agree

with him, but the unpalatable truth is that the pandemic has delivered a gut punch to the world’s greatest city, with farreaching implications for both residential and commercial property owners – and it’s a sad fact that midtown Manhattan (not to mention the city’s downtown

financial hub) has seen only a small uptick in the reoccupation of office spaces.

South Africa’s business districts have witnessed a similarly disastrous exit, albeit slightly relieved by the loosening of restrictions on trade and office occupation.

It goes without saying that the workfrom-home trend – necessitated by lockdown rules of varying severity – is only one of several factors influencing the property market: among the others are historically low interest rates and pent-up demand. However, there’s no doubt that the pandemic has prompted home buyers and office workers to re-examine their lifestyle.

As a self-employed financial consultant puts it: “People are questioning whether their quality of life has been subverted by the daily commute to city or suburban office blocks, often in heavy traffic, and nine-to-five working days that sap their will to live.

“Whether the work-from-home trend is good or bad obviously depends on

where your money is invested, how your boss feels about it, whether you’re re-thinking your future employment, your home type and location, and other factors. Personally, I believe that remote working is the future, and I’m in.”

Some estate agents report that increasing numbers of families in apartments, presumably driven to distraction by months in close proximity to partners and children, are moving into houses with gardens. Other homeowners are moving away from the cities, reasoning – quite logically, in many cases – that they can continue to earn a living from just about anywhere armed with little more than a computer and a good fibre connection.

John Loos, a property sector strategist at FNB Commercial Property Finance, says although many corporate CEOs appear to be planning for greater levels of remote work, it’s too early to determine the pace and magnitude of the trend.

“While many companies may have

embraced remote work because they were forced to, the true extent of this enthusiasm for remote work from management teams and employees will only become clearer once the Covid-19 crisis has passed and office buildings are 100 percent open once more.”

Whereas various employee surveys appear to confirm the popularity of remote working among service sector employees, adds Loos, some concerns have been flagged, among them compromised working relationships.

“The lockdowns have also contributed to a very deep recession, putting significant financial pressure on many businesses across the world. Many CFOs will be eyeing cost-cutting opportunities – and reducing the amount of expensive office space owned or leased by their companies would surely be one such opportunity.”

Loos cites a recently released survey of 315 corporate CEOs (including 100 in the US) by accounting firm KPMG that points

to a widespread desire to scale back on office space, a formidable 68 percent of respondents indicating that they planned to downscale.

Interestingly, some 72 percent of the CEOs saw a benefit from remote working in terms of widening their talent pool. Loos believes this makes sense, saying: “Many of us have considered a job prospect based in part on where the job is located.”

Commuting time on South Africa’s increasingly congested roads is also an issue, he adds. “It’s realistic to expect that … a greater portion of the office worker population will find themselves working from home, either full-time or part-time.

“This has potentially major implications not only for office property landlords, already faced with significant vacancy rates, but also for the likes of residential developers and urban planners, as many households’ location and lifestyle decisions change.”

Forecasting is not an exact science

Dr Andrew Golding, chief executive of the Pam Golding Property group, concedes that the social and economic consequences of the initial lockdown and subsequent easing of restrictions make it very difficult to predict movements in the South African property market.

Market analysts were surprised by the level of activity in the housing market in the months since real estate agencies were allowed to reopen at the beginning of June, he says. “For example, FNB recently noted that not only has the volume of new mortgage applications rebounded beyond pre-lockdown levels across the price spectrum, (but) the level of buyer interest on property portals has also surpassed levels seen in early 2020, when Covid-19 was but a distant threat.”

Golding says one of the “obvious but significant” consequences of the pandemic has been the Reserve Bank’s bold decision to slash interest rates to an almost 50-year low of seven percent (to date). “For many homeowners, this unprecedented low, coupled with the price correction in the local residential

market in recent years to more realistic levels, has resulted in a clear message that this may well represent a ‘once in a lifetime’ opportunity for buyers.”

This is new and appealing territory for many buyers and especially firsttimers, says Golding, and they appear to be taking the message to heart. He cites a report by bond originator ooba, which notes a surge in first-time and 100-percent bond applications in recent months. “According to ooba, home loan

Virtual-reality marketing

Tony Clarke, managing director of the Rawson Property Group, believes technology has quickly become an important enabler in property transactions. He says: “Now more than ever, having the right technology is vital to maintaining operations, including being able to communicate with clients. Thanks to the pandemic, we have to accept that the world will never be the same again, and this also applies to our industry.

“Given these precarious times, we believe it is the sellers who will start insisting that agents use virtual tools to market their homes rather than

applications rebounded in June, and by July volumes were over 60 percent above year-earlier levels. In June, 68 percent of ooba’s home loan applications were for 100 percent bonds, with an approval rate of over 80 percent.”

First-time home buyers are taking advantage of cheaper finance to acquire more expensive properties, says Golding. According to ooba, these accounted for almost 53 percent of home loans during the second quarter of this year. “As we

open their homes to large volumes of people who might contaminate their space. We have to learn to adapt and thrive under these circumstances, and our group has invested heavily in a technology ecosystem that we are leveraging to its fullest.

“To deliver real estate services as seamlessly as possible, we have introduced six products: virtual valuations, 3-D virtual tours, virtual showhouses, electronically signed documentation, and online meetings. These will serve as important stopgaps during social distancing and ultimately form part of a much larger service strategy.”

Sometimes, it’s personal Marketing consultant Alwyn Fourie took the gap four months into lockdown, selling his luxury flat on Cape Town’s Atlantic seaboard and moving into a tree-lined suburb with a big garden, pocketing some useful change along the way.

Fourie explains his reasoning: “We get on very well as a family, but after being cooped up in a flat together for months, everyone decided that we needed space. Our new home has plenty of that, and we couldn’t be happier.

“We sometimes miss the sea view and spectacular sunsets, but against that, we have lots of braais – sometimes even when it’s pouring with rain – and have adopted a rescue dog. We were not allowed pets in our apartment, so the kids are over the moon. The coronavirus is a global tragedy, of course, but it has made us aware of the things that are most important.”

Much as they love it, their suburban doublestorey may not be their “forever” home, adds Fourie. “We’ve proved to ourselves that we can adapt to change, so maybe we will move to the country in a few years’ time, depending on the availability of good schools. My wife and I have jobs that allow remote working for at least 90 percent of the time, so employment won’t be an issue.”

James O’Connor* started working from home on the first day of South Africa’s lockdown and says he’s never looked back. “I know it’s not for everyone, and I’m lucky to have a study in which I can operate undisturbed, but I quickly found that remote working improved my productivity, reduced my stress levels and definitely boosted my quality of life.

“Best of all, I don’t have to attend pointless meetings and listen to people droning on with PowerPoint presentations that could be summarised in a single slide or email. The other things I don’t miss are the ‘teambuilding’ strategies that our managers loved, but which seemed designed to embarrass us. I can handle the occasional awkwardness of Zoom meetings because all participants are in the same boat.”

O’Connor mentions a journalist friend whose insecure boss used to become agitated whenever he saw an empty desk. “He came from a bean-counter background and didn’t seem to understand that journalists cannot rely entirely on the internet to write their stories. To do their job properly, they need to get out there to see what’s happening, and to interview people face-to-face. The pandemic and workfrom-home strategy cured him of that, and now everyone is much happier.”

*not his real name

have noted previously, South Africa’s young population, with nearly twothirds of citizens currently below the average age of a first-time buyer (34 years), provides the market with a solid underpinning.”

Encouraging as they are, the numbers should be kept in perspective, warns Golding: “To temper any expectations of an unrealistically buoyant property market, it’s important to note that there has not been any significant increase in new stock volumes coming on to the market.

“What we have seen is that the residential property market has come out of the gates very strongly after the restart of real estate activities at the beginning of June and during July 2020, with most of this activity driven by realistic pricing expectations and motivated sellers. Notably in the Western Cape and other sought-after locations in South Africa, well-priced properties are now attracting strong buyer interest.”

Good time to buy?

Citing the strong buyer’s market, coupled with a prime interest rate at an historic low (and expected to remain there for quite some time), Golding believes savvy home buyers seeking access to finance are well placed to make sound investment property acquisitions across all price ranges and property types – “perhaps particularly in the price band up to around R3 million”.

In the residential property market, his company is seeing the most interest and activity in the price bands up to R2.5 million and R3 million, followed by the middle-market price band between R3 million and R8 million, and upwards. He also notes a strong appetite among first-time buyers to enter the property market, “driven in part by former renters who prefer to put down roots and gain security of tenure by purchasing their own homes rather than pay rent”.

Adds Golding: “Many millennials

who used to remain mobile, maintaining flexibility to travel globally, seem to be looking at getting apartments and ‘settling down’ for now.

“Trends evident in the marketplace include relocation to smaller or coastal towns, downsizing due to financial pressures, or upsizing – to satisfy the need for work-from-home space and more outdoor space. In this regard, we are seeing a shift back to freestanding homes and an increasing demand for homes in secure lifestyle estates. There is even talk that the number of separations and divorces has increased after lockdown, which would create activity in the residential property market.”

Business as usual? Not quite Adrian Goslett, regional director and CEO of Re/Max of Southern Africa, says although the property market saw a boom following a period of inactivity during lockdown, it’s by no means business as usual – and he’s candid about the effect on his company.

“Despite record sales months of R2.4 billion and R3.3 billion in July and August respectively, our total sales figure year-to-date for August is still down by nine percent. When broken down by region, the Free State and Northern Cape regions seem to be hit the hardest, with a 17 percent drop in sales this year. Least affected are central Gauteng and KZN, both of which reflect a three percent drop.”

The company discovered that many buyers were searching for “a higher quality of life” and looking for homes with a study space plus a room or flatlet to accommodate multi-generational living. It wasn’t a universal trend, though: whereas some areas reported higher levels of downsizing as a result of affordability issues, others reported no such increases.

Property broker Maurice Lodewick, owner of Re/Max Lifestyle Estates in Nelspruit, says that since the start of lockdown, buyers in his area have been looking for larger stands, and

ideally, views of green belts or other open spaces. They also want outbuildings that can be converted into school rooms or granny flats.

“There has also been a notable increase in downsizing, with more than half of sellers in our area selling because of affordability issues – mostly in the higher-upper-market segment (above R5 million). Sellers in this price segment are looking to downscale to a home worth around R2.5 million.”

Chris van der Merwe, manager of Re/ Max Coastal, says his office has noted an influx of buyers in Knysna, Sedgefield and Wilderness from bigger metros such as Johannesburg and Cape Town. He says: “Many of these buyers are looking to work from home and commute between the city and coastal towns. We have experienced an increase in younger, professional couples and first-time buyers. They’re looking for properties with a study or home office space and fibre internet.”

Barbara Larney, owner of Re/Max Town and Country in Hermanus, says many of her buyers feel cooped up in their current

situation and want to explore what the country lifestyle has to offer. “Many are looking for a place where their children are free to play outdoors in safety.”

At the same time, she’s aware that some of her clients have been badly affected by the economic downturn and are being forced to sell. “I know of a number of people who are merging households because of the tough economic situation.

Because assisted living costs are very high, our older clients are choosing to move in with their children and grandchildren, combining the households by selling their homes and building their own private in-law suite on one plot. Some of the European ‘swallows’ are selling and moving back to Europe because nobody knows when South Africa will reopen its borders.”

How permanent is the trend?

Having examined the move towards remote working and its impact on the property market, the FNB’s Loos reckons there are some important questions that remain unanswered, among

them specifics about the timing and magnitude of the trend.

“Many corporates have rapidly scaled up their remote working capabilities, but for many, the offices and their costly infrastructure are still fully functional and ready for their inhabitants to return, albeit in smaller numbers in some cases due to social distancing measures within the buildings. At what speed does the amount of office space get scaled down? This may be influenced in part by lease expiry dates or, in some cases, whether a building can be repurposed.

“Also, we have yet to ascertain to what extent management is comfortable with staff working remotely. It’s one thing to take a positive view of something when you have no choice – for instance, when management has been forced to accept remote work for the time being – but it’s a different matter when you have a choice. When the Covid-19 crisis ends and offices are fully open again, we will see to what extent old management habits have changed – or not.”

Another question concerns those adversely impacted by remote working, adds Loos, among whom the most obvious victims are office landlords.

“With a likely drop in demand for office space, the landlords will be required to get creative with their buildings. Inner cities have perhaps shown us a way, with significant repurposing of unused office space into high-density – often affordable – residential property.

“In tandem with the question around office space, we would need to ask the same question regarding high-density residential property in close proximity to major office nodes. If there is far less daily commuting, with fewer people working in major office nodes, how will this impact on the demand for high-density residential living?”

If business travel and physical company events are also set to decline, asks Loos, how will this affect the demand for corporate-driven hotel and conference venues? “Finally, do companies further de-centralise their offices, with smaller cities and towns potentially picking up a greater chunk of whatever office ‘pie’ is left?”

HOW COVID-19 HAS BOOSTED ILLICIT TRADE

The pandemic has had the effect of increasing illicit trade in South Africa, among other countries, and it’s you, the consumer, who will ultimately suffer – and not only financially.

Amanda Visser reports

South African consumers are being exposed to substandard and unregulated products because of a drastic increase in the illicit trade in alcohol, tobacco, fuel and fake medicine. During the national lockdown the illicit markets in many of those products soared.

A World Health Organisation report shows Africa alone accounts for 42 percent of globally detected cases of substandard

and fake medical products. Many illicit drugs are associated with mental health disorders and can also lead to social, legal, financial and emotional problems.

The 2019 Transnational Alliance to Combat Illicit Trade (Tracit) report also referred to a Euromonitor global study on illicit alcohol trade.

According to that report, South Africa loses around $480 million annually to illicit alcohol. This is the largest fiscal loss out of the seven African countries measured in the 2018 global study.

Smuggling represents 28 percent of illicit alcohol activity. This activity is driven by a challenging economic environment, a large price variance (51 percent) between what consumers pay for legal alcohol and what they pay for illicit alcohol, weak enforcement of regulations and taxation strategies that drive up the prices of legal alcohol, the study found.

Tax revenues

In a normal year the South African Revenue Service (SARS) is able to collect around R30 billion in excise duties on alcohol, R14bn on tobacco products and R4bn in sugar taxes. However, 2020 has been everything but normal. The strict national lockdown to curb the Covid-19 pandemic saw a complete ban on the sale of cigarettes and alcohol. This will translate into significant revenue losses for the fiscus.

Telita Snyckers, former SARS executive, author and independent illicit trade consultant, said at this year’s virtual Tax Indaba that excisable products should be “easy money” for government.

“However, that is only true if there are proper production controls in place, which South Africa does not have. Even before the lockdown we saw that 15 percent of alcohol sales in South Africa was illicit and in some places in the country it was as much as 40 percent.”

Corné van Walbeek, director of the Research Unit on the Economics of Excisable Products (Reep) at the University of Cape Town, says that even before the lockdown about one third of all the cigarettes sold in South Africa were sold at such low prices that it was impossible that the full tax has been paid.

Shifts in behaviour

The research unit’s figures showed a significant shift in the number of brands sold in the market. The majority of the brands sold during the ban were from local manufacturers.

“Our theory is that local companies already had ‘pretty good’ links into the informal (illicit) market and they have simply expanded their presence in this market,” Van Walbeek says.

The research unit conducted a study during lockdown by interviewing 12 000 smokers in a first round and 23 000 in a second round.

“Although there are some caveats in the research, the important thing we found was that nine percent of smokers were able to quit, and 93 of those who were unable to quit were able to buy cigarettes during the ban.”

The research also showed a significant change in the market structure and distribution channels.

Before the lockdown about 70 percent of cigarettes were sold in “formal outlets”, specifically tobacco outlets, supermarkets and garage stores.

During lockdown, new distribution methods emerged – such as the use of WhatsApp groups, buying through acquaintances and street vendors.

Other “distributors” included drug dealers and black market operators. About two percent of the participants said they were buying their cigarettes from “very unsavoury characters”.

The cost of smoking

Van Walbeek says the excise tax on a packet of cigarettes is currently R17.40 whereas the production cost ranges between R2 and R2.50. “The point is that it is miniscule in comparison to the retail price most people are paying.”

During lockdown prices increased by up to 350 percent in the Western Cape and about 160 percent in Gauteng, Limpopo and Mpumalanga.

These profits are certainly not going to translate in more corporate income tax or VAT or excise duties.

People have shown their willingness to pay these exorbitant prices for their

addiction. Van Walbeek believes an increase in excise duties of anything between R20 and R50 on a packet of cigarettes is “conceivable”. “The important thing is then to have proper illicit trade controls,” he adds.

Snyckers says there are some “very simple policy choices” SARS can implement. These include:

• The introduction of production controls at manufacturing plants;

• Expanding audits to include the inputs that are used in manufacturing to match output volumes;

• Improved tracking of the importation and sale of cigarette filters. There are only three companies in the world that manufactures filters. By keeping track of import and sales figures, government will get a better sense of production volumes;

• The introduction of “Know Your Customer” obligations to ensure manufacturers only sell to traders who are controlling their own supply chain.

Lack of proper enforcement

Keith Engel, chief executive of the South African Institute of Tax Professionals and organiser of the annual Tax Indaba, says it is clear that having legislation in place is one thing, but enforcing it is something else.

“That is the real issue in South Africa. You can have as many laws as you want, but if there is a group of people who are flouting the law and nothing happens to them, it is like being an emperor without clothes.”

Tax evaders should be brought to book instead of more taxes being imposed on the honest to make up for losses due to criminal activity, he warns.

The Tracit report concludes that combating illicit trade is necessarily linked with the need for a stable economic, political and social environment that encourages investments and innovation in the local economy.

“Failure to address the structural problems that allow illicit trade to flourish will weaken growth prospects and hamper efforts to reduce unemployment and inequality.”

This is more true now than ever before.

INVESTING IN COMMODITIES

Chantal Marx and Nicholas Riemer unpack what commodities are, what affects their prices, and ways to invest in them.

During recent market volatility, investors showed interest in gold as an investment. Gold prices tend to go up during periods of uncertainty and then subside during periods of stability. Gold is also priced in dollars, which means that it provides protection against a depreciating rand exchange rate.

Oil also received quite a bit of attention as a potential investment after falling to near two-decade lows in the first quarter. Oil prices are linked to economic activity and are also a function of the supply of oil –the prospect of weak economic growth and continued high levels of supply resulted in unsustainably low oil prices at the time.

Gold and oil form part of a wider set

of investable commodities. Different commodities have different underlying drivers, and understanding these drivers will offer investors the clarity required to successfully invest in this space – be it directly or indirectly.

What are commodities?

A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are used as a key ingredient in the production of other goods and services or, in the case of gold, as a store of value. The quality of the commodity can differ slightly; however, it is essentially uniform across producers, resulting in a

standard value.

Commodities are broken down into two categories: hard and soft. Hard commodities require drilling activities, such as mining.

These include gold, copper, platinum group metals (PGMs) and oil to name a few. Soft commodities refer to raw materials that do not require drilling and are grown or farmed. Examples include wheat, maize and coffee beans.

What causes commodity price changes?

Supply and demand trends of the commodity causes prices to change. When there is an oversupply relative to demand, prices will

decrease. This is what was seen in the oil market recently. A shortage of a commodity or high demand will push the price up. This can happen on account of a drought reducing the supply of soft commodities and buyers increasing demand on fears of losing production inputs.

The basic concept when trying to understand commodity prices fundamentally is to evaluate global trends.

What products are in high demand or short supply and how is this expected to change?

The simple commodity formulae when evaluating trends are:

• Expected supply > expected demand = price decrease

• Expected demand > expected supply = price increase

Megatrends and commodity demand

Understanding global trends is key when looking to invest in commodities. Megatrends are powerful, transformative forces that can change the trajectory of the global economy by shifting the priorities of societies, driving innovation and redefining business models. Identifying the potential for structural change and investing in expected transformations early can be a key driver of successful commodity investing.

Megatrends are long-term structural forces that evolve over time. In 2016, the “emerging global wealth” megatrend primarily focused on China’s rise.

But since then, it has broadened to incorporate the emerging middle class in India, southeast Asia, and other developing economies. “Rapid urbanisation” has similarly incorporated the advent of smart cities and on-demand business models along with the infrastructure needed to support emerging megacities.

In the past decade there has been a huge increase in city developments in emerging economies requiring significant infrastructure. As cities develop, they require telecommunication networks. This requires twisted copper wire as copper is generally the most common mode of transmission used today.

Emerging cities account for a significant

percentage of a country’s population as jobs and opportunities attract citizens. Transportation needs to evolve, which means increased demand for cars, trains, and buses as well as fuel. Raw inputs into the production of cars include platinum, steel, rubber and aluminium. Higher fuel usage pushes up demand for oil while a shift to electric-powered vehicles means batteries that utilise lithium and cobalt in the production process will be in high demand.

When analysing megatrends, investors need to link the demand to raw products that are required in the manufacturing process. If there is an increased demand in electric vehicles, this might mean a decrease in demand for oil and PGMs (used in catalytic converters) and an increase in demand for cobalt and lithium.

Looking at long-term investment opportunities in the commodity market means fundamentally understanding the evolving megatrends within the global economy. It is also important to take note of short-term factors when considering an investment in commodities, such as supply disruptions or supply gluts, or sudden declines in demand.

Investing in commodities

There are several ways for long-term investors to gain exposure to commodities:

1. Investing directly in the commodity. Investors have the option of purchasing and storing the physical commodity itself. This requires identifying a seller of the commodity, storing and insuring the physical raw material as well as then locating a buyer.

Acquirers of the actual raw commodity are more often manufacturers looking to secure supply, as investors do not want the burden of buying, collecting, storing and selling the goods. Precious metals are bought and sold in their raw form such as Krugerrands; however, receiving and storing barrels of oil might not be as practical for an investor. Fortunately for long-term investors there are alternative ways of gaining exposure.

2. Commodity exchange-traded funds (ETFs): A commodity ETF allows investors to gain exposure to commodities through an exchange-traded fund

invested in physical commodities. JSElisted commodity ETFs include platinum, palladium and rhodium ETFs, which track the prices of these PGMs in rands. There is also a choice of gold ETFs (AfricaGold, NewGold and FirstRand Krugerrand Custodial Certificates).

3. Commodity exchange-traded notes (ETNs): A commodity ETN allows investors to gain exposure to commodity prices through a structure that invests in derivative contracts. It is quite complicated but, most of the time, these notes will track the underlying price of the commodity quite closely. In addition to some of the commodities tracked by ETFs, JSE-listed commodity ETNs include trackers of oil and silver along with soft commodity ETNs tracking corn or wheat.

4. Shares in commodity producers/ miners: This option allows you to gain exposure to the commodity market by purchasing shares in a company that produces the raw material (or in commodity-focused unit trust funds that invest primarily in these companies). Mining companies such as Anglo American Platinum or AngloGold Ashanti mine for precious metals while Anglo American and BHP mine a variety of commodities. Anglo American’s main commodities mined are copper, platinum, iron ore and diamonds. BHP has substantial exposure to iron ore, oil, copper and coal. A key consideration is that share performance will not be based solely on commodity price changes. There are internal performance measures that must be considered, such as the management team, producer country currency changes, and regulatory and political factors.

Of course, there are also many companies that are indirectly impacted by commodity price changes – for example retailers tend to do well when oil prices are low because lower fuel prices place more cash in consumers’ pockets. The reach is endless but as you move along the supply chain, the impact of major trend changes will be diluted.

Chantal Marx is head of research and Nicholas Riemer is head of investment education at FNB Wealth and Investments.

During the 17th and 18th centuries, a variety of monies were used alongside one another in southern Africa: ostrich shell beads, copper assegai tips, and the Rixdollar. The Rixdollar was the first banknote in Southern Africa; it was backed by silver. The Lombaard Bank was instituted in 1793 to manage the issuance and value of the Rixdollar, which circulated widely in the Cape.

In the 1800s, gold grew in prominence as a currency around the world, and its adoption also proliferated in southern Africa. By the mid-1800s, there were 32 private banks, two mining companies and one trading company all issuing private banknotes that were a claim on gold.

Each of these banknotes was like a certificate issued by a bank and bore the

THE EVOLUTION OF MONEY

issuing bank’s name. The Zuid Afrikaansche Republiek suffered a severe fiscal crisis in the late 1800s and the Rixdollar collapsed. Gold survived as money.

Monetary technologies

As society and its technologies change, so do its monies. In the 19th century when money was an element on the periodic table, anyone who could build a gold vault and write and issue a banknote certificate could get into the business of banking. There were virtually no licensing requirements to enter this market.

Similarly, a payments business was a courier company that moved banknotes or gold between banks and/or merchants and/or consumers.

American Express was the first major payments company in America. For many years, it had a virtual monopoly on the movement of express shipments of goods, securities, and currency on the East Coast.

When some American Express directors objected to a proposal that the company expand its operations to California, two directors started Wells Fargo & Co in 1852. Wells Fargo’s famous logo is the

stagecoach, because between 1852 to 1918 it was the largest stagecoach company in the world. The purpose of these stagecoaches? Shipment of goods, securities and currency.

In 2020, most money in circulation is electronic. Payments companies now courier electronic financial messages between banks, merchants and consumers. Visa, Mastercard, Swift and Bankserv are nothing other than electronic courier companies.

Similarly, the business of banking is still, at its core, safekeeping of client deposits and keeping track of debits and credits. Instead of issuing paper banknotes in exchange for gold deposits, banks now issue electronic credits in exchange for electronic or banknote deposits. Instead of managing large physical gold vaults, banks now manage and secure large data centres. The business of banking is still the business of protecting client funds, but these funds are now mostly electronic data.

Money is still an economic good that acts as a medium of exchange, store of value and unit of account. But instead of being a physical object it is now a digital ledger entry.

Chris Becker explores how money as a store of value has evolved from ostrich shell beads to Bitcoin.

Electronic money

In 1971 fiat currencies were finally cut off their gold backing. Note that this date coincides with the year in which Intel produced the first microprocessor. This was the real beginning of portable and mobile computing. This means that in the same year that the gold backing to banknotes was removed, the era of electronic money began. Now that the supply of money had no natural or economic limitation on new issuance, it could also be electronically created in spreadsheets!

For money to have value, it must be trusted and reliable in its future exchange value. To have value in the future, it must have a predictable supply. In other words, money must have a predictable mechanism to remain scarce and in limited supply.

Gold’s physical properties and limited supply on earth made it an excellent currency and allowed it to survive and retain value for 5 000 years. When money is not linked to gold, and a banknote is just an official certified piece of paper, how do we keep its supply scarce?

The solution is to impose laws and regulations giving the power to mint new coins and banknotes to a trusted institution like a central bank. The South African Reserve Bank (SARB) is tasked, in terms of the constitution, to maintain the value of the rand to maintain balanced economic growth. The SARB’s policy mandate is to target a price inflation rate of between three and six percent a year. Laws and regulations are imposed that prevent anyone other than this institution to create these banknotes. This is the only way to keep this economic good, the rand, scarce.

When money is an entry in an electronic database, it is simply an entry in an excel spreadsheet or another electronic ledger. How do you keep it scarce if more of it can be created at zero extra cost? The monetary technology itself doesn’t govern or self-regulate scarcity. Money becomes a legal and regulatory technology.

No matter what anyone’s view of the Bitcoin blockchain is, this is its

fundamental innovation. This technology system regulates scarcity of a fully electronic currency that has no real-world dependencies, and this regulation is incentivised by the economics created by the currency unit. The technology has its own native messaging system, where payment instructions are communicated from “wallets”.

For the first time in history, there exists a scarce currency, ledger and payments system in a single opensource technology system that anyone can connect to with existing internet protocols. This is not an endorsement of Bitcoin; it is simply a statement of fact. This technology is quite different to existing currencies, bank ledgers and payment systems. It introduces new technologies, new players, new companies, new jargon, new skills and new resources.

Managing change

The things we do remain the same, but the technologies we use are constantly changing. The names we call money might change, and the way we measure its value might change. But its fundamental function remains the same: the communication of value.

Blockchain may fundamentally disrupt the way that banking services are distributed to and consumed by people. The evolution from VHS videos to Netflix doesn’t make movies disappear.

The same with money and banking. The forms of money and banking may change, but their function will remain the same.

How can these technologies enhance banks’ value proposition to clients? While blockchains are secure distributed databases and open a range of potential uses, it means very little

when the interface to connect to the blockchain isn’t secure.

We’re facing the possibility that banking in 10 or 20 years’ time might be as different as Google Maps is to a paper map. At Investec we are applying our experience and expertise to be relevant if the form of banking were to change dramatically. The way we can most readily add value to our clients in this new technology ecosystem is to connect to these new technologies. In this endeavor, we have built digital asset custody capabilities, and will soon commence internal testing, in close collaboration with regulators.

We don’t know what the future of money looks like exactly. No one does. What we do know is that we have a role to play as a helpful partner to our clients and broader society to navigate change in the world of money and investments.

Chris Becker is blockchain technologies lead, Investec Private Bank

THE NEW WORLD OF CRYPTO

On 22 May 2010, Laszlo Hanyecz bought two pizzas in Jacksonville, Florida, for 10 000 Bitcoin. This was the first transaction made using Bitcoin, and the value of this transaction is over R2 billion today, making those the most expensive pizzas in the world. Cryptocurrency is now widely accepted in a variety of African countries such as Morocco, Nigeria, Namibia, Zimbabwe and South Africa. More increasingly, cryptocurrencies are also being accepted into the retail sectors.

In early 2018, digital currencies such as Bitcoin or other cryptocurrencies were banned in Canada and were considered not to be legal tender; only the Canadian dollar was considered official currency. Similarly, around the same time, countries like Pakistan sought to reduce perceived

levels of crime such as money laundering and terrorist financing by banning cryptocurrency trading. However, in 2020 these bans were lifted and a number of exchanges have popped up to allow for cryptocurrency trading across these jurisdictions. Since then, plans to introduce a licensing scheme to govern and regulate the transactions processed by the cryptocurrency exchanges are well underway.

What is it?

A cryptocurrency can be seen as a traditional currency, like the rand or US dollar. However, it can also be seen as a commodity. A commodity is defined as “a raw material or primary agricultural product that can be bought and sold, such as copper

or coffee”, whereas a currency is defined as “a system of money in general use in a particular country”.

The concept of cryptocurrency brings these two concepts together. A cryptocurrency’s value is affected by external forces, such as the gold price or a global pandemic. It is a borderless currency in that your location does not affect its value.

One needs to remember that cryptocurrencies other than Bitcoin exist –for example, Ethereum, Ripple XRP, Litecoin, and Neo.

Bitcoin has just gained popularity by virtue of being the first cryptocurrency, which introduced the underlying blockchain technology on which cryptocurrencies are built. Each cryptocurrency is run by

Global society is quickly moving towards the wider adoption of cryptocurrencies, but there are hurdles that must be overcome, writes Shehnaaz Suleman

a different set of rules and it is wise to have all the facts about the different cryptocurrencies before making a decision to invest in one.

Regulatory hurdles

Understandably, many countries are shying away from cryptocurrencies because they are not technologically equipped to manage and monitor their usage and movement, leaving them exposed to a number of cybersecurity threats. Another major part of countries’ reluctance is the establishment of digital identities (which come with the digital wallets in which cryptocurrencies are kept). A person born in South Africa is given an identification number. This number is used by banks and creditors to monitor monetary movements of their clients and potential clients. A similar system, which is as secure, would need to be developed in order to manage and track the finances of people using

cryptocurrencies. Platforms that enable people to create said identities exist, but outside of the banking sector entirely, making the banks quite nervous about their place in a digital world.

The Financial Action Task Force, a global money laundering and terrorist financing watchdog, is an inter-governmental body that sets out international standards aiming to prevent these illegal activities. They have provided direction on the treatment of crypto assets, which requires jurisdictions to regulate crypto assets and crypto-asset service providers in combating money laundering and the financing of terrorism. Further, jurisdictions are now required to ensure that service providers are licensed or registered, and subject to effective systems for monitoring and supervision. In South Africa, there are currently no dedicated laws or regulations that specifically govern the use of cryptocurrencies and therefore, no regulatory compliance requirements exist

for the local trading of cryptocurrencies. Legal protection or recourse for users, traders or intermediaries dealing in cryptocurrencies is therefore dependent on general common law principles.

Crypto-accounting

From an accounting perspective, intuitively, one would think that a cryptocurrency should be viewed as a financial instrument (which grants a contractual right to receive cash or another type of asset). This is based on the assumption that if we give someone a Bitcoin, the receiver has a contractual right to receive cash at some point in the future. However, “cash” has a very specific definition as defined by the International Financial Reporting Standards (IFRS): it is a commonly accepted medium of trade. The “commonly accepted” element of this definition is where this gets tricky. Currently, fiat currency is commonly accepted as a medium of exchange and is the medium

used by entities to present information in their annual financial statements. From a cryptocurrency perspective, we are just not quite there yet.

As cryptocurrency becomes more widely adopted, accounting professionals may begin to challenge whether cryptocurrencies are “commonly accepted”. Currently, cryptocurrencies are treated as intangible assets (assets that lack physical substance). Given the current shift to all things digital, and as cryptocurrencies become more widely accepted, they could potentially fall into the financial instruments standards, where they will be governed by the IFRS 9, aligning with the existing definition of cash.

In terms of the South African Reserve Bank's position, cryptocurrencies are not considered legal tender in South Africa and any merchant or beneficiary may refuse to accept them as a means of payment.

The definition of cash is quite broad, but it is important to note that there may be a new definition or separate regulation established to deal with cryptocurrencies. The two separate definitions could run concurrently and perhaps one will overtake the other as we step into the new world of digital money. This will be accelerated as a result of fintechs, open banking and digital innovations, which are exponentially changing the banking world. Covid-19 is a further accelerator, as a result of consumers needing an electronic way to transact.

The Bitcoin blockchain

Say you want to buy a Lamborghini (fun fact: Lamborghini officially accepts Bitcoin as payment). They would tell you that it will cost you, for example, 10 000 Bitcoin (based on whatever the spot rate is on the day). At that point, you would transfer the amount of Bitcoin required to settle the transaction.

The transaction then gets recorded on an open ledger (open, because anyone can view it and is not editable). Bitcoin therefore allows for a transfer of value from one party to another without having to go through a centralised trusted third party such as a bank. People around the world would then start to validate this transaction by decrypting it and solving for “hashes”.

A “hash” is basically a digital fingerprint

made up of a unique sequence of numbers and letters in a specific sequence. People who solve for hashes are called miners. Miners need computers that have heavy duty computing skills and power to go through every single possible sequence of characters until they get to the right combination. Miners get rewarded for contributing computing power to the network to solve these algorithms, and the first miner to correctly solve the algorithm gets rewarded in the form of cryptocurrency in a proof of stake consensus mechanism, which is what Bitcoin is.

To maximise the chances of being the first to get the golden ticket – in other words to validate the transaction and get the reward – miners need to have as much computing power as possible. Having this much power in one place results in a lot of heat being generated. For this reason, “crypto farms” were created where all this equipment is stored in one place, where the temperature can be regulated to keep the computers cool. For this reason, a lot of crypto farms are housed in colder areas like Russia and Iceland. There must also be cheap and stable electricity in the areas where crypto farms are set up, because the farms can’t afford power outages.

transactions are being made, which means that hashkeys are becoming longer and more complex to solve, a further deterrent for miners. Mining rewards have also decreased due to the Bitcoin halving. However, because the number of Bitcoin available in the world is limited to 41 million, this “currency” is not subject to inflation, resulting in its gaining value when benchmarked against fiat currencies due to its scarce nature.

What does this mean for you?

The world of cryptocurrency has and will continue to evolve, which in turn forces all industries and sectors to re-evaluate how they do business. Governments and industry leaders have begun consultations in an effort to better understand its implications and ensure that they will not lose control, as, by their nature, cryptocurrencies and distributed ledgers allow power and control to be transferred away from central third parties and decentralised to the masses.

Institutions and industries that can be disrupted as a result of blockchain and distributed ledgers are: governments, exchanges, banks and central banks, insurance companies and credit bureaus.

As cryptocurrencies become investment-

TAXPAYERS ‘SHOULDN’T BE BULLIED’

Taxpayers in South Africa have many rights in law, but enforcing them is the challenge

writes Amanda Visser

South Africans have been suffering the most blatant abuse of their taxpayer rights for many years, despite having a plethora of fiscal and constitutional laws that should protect these rights.

The Constitution, the Tax Administration Act, the Promotion of Administrative Justice Act and the Promotion of Access to Information Act offer the right to privacy, the right to information, the right to just administrative action and the right to access the courts.

The South African Revenue Service (SARS) is compelled to act impartially, fairly, equitably without bias and to provide taxpayers with timeous and accurate information.

Several investigations, notably the Nugent Commission of Inquiry into tax administration and governance by the South African Revenue Service (SARS), demonstrated the effect of a weak tax administration. The fact that state capture could extend to tax administration is concerning, says Thabo Legwaila, chief

executive of the Office of the Tax Ombud.

The Nugent Commission’s report and other subsequent research showed that taxpayers were left “unprotected and bully-able” by SARS when it was captured.

Tax system undermined

A fundamental obligation of government is to apply taxes to fund expenditure that is aimed at providing goods and services to its citizens, such as health, education and safety.

If the funds are mismanaged or, as

we have seen, stolen through corrupt activities on a grand scale, it undermines the tax system and the dignity of taxpayers, says Legwaila.

Taxpayers contribute to the fiscus with the expectation that their money will be used to build better hospitals, schools, to improve education and offer citizens safety and security.

“However, if this is not done, and a certain group of people becomes wealthier because they had their hands in jars where they did not belong, it is a travesty of justice,” says Legwaila.

Where people have been able to escape the tax net because of their political connectedness it talks to utter lawlessness, which should not be allowed.

“It sabotages economic activity, our social networks and our political strength when people are able to disobey the law with impunity. Corruption at almost every level in our society is really disheartening. It works against tax morality.”

Legwaila says if there was the political will to ensure that corruption is rooted out and that wasteful and fruitless expenditure is clawed back, SA would be able reduce the rates of the three major contributors to our tax revenue, namely corporate and personal income tax and value added tax (VAT).

Navigating the laws

Suzanne Smit, tax specialist at Nubis Tax and member of the tax administration work group of the South African Institute of Tax Professionals (SAIT), says before South Africa became a constitutional democracy, taxpayers could not legally challenge tax laws.

We now have the right to challenge any decision made by SARS – administrative or otherwise. “But to navigate the laws to uphold your rights as a taxpayer is where the challenge lies.”

Although taxpayers theoretically have access to the courts, few are able to exercise this right because of the debilitating costs associated with court action. Few are “fighting fit” to take on a battle with SARS, says Smit.

Even if people have a valid case against SARS, few are willing to go to court

because it is such an expensive and timeconsuming process.

Smit says there has been talk of a tax revolt, especially under former SARS commissioner Tom Moyane. Institutional knowledge disappeared and SARS’s ability to carry out its mandate was decimated.

However, in recent years’ things have taken a turn for the better, first under acting commissioner Mark Kingon and now under commissioner Edward Kieswetter.

The actions taken by him and his team have restored some trust in the tax collector. Although taxpayers are justifiably frustrated with the way their tax money is used, they should not fall foul of the law, says Smit.

Taxpayer watchdogs

It is important to remain compliant. “You do not want to put yourself in harm’s way when it comes to tax. I do understand the frustration, but exercising good citizenry and taking part in the tax conversation is important,” Smit says.

She says besides the courts, there are other channels that can be used. She refers to lobby groups, think tanks and industry bodies such as the South African Institute of Chartered Accountants and SAIT, which represent taxpayers in fighting for administrative justice on their behalf.

The Public Protector has been a port of call to bring organs of state to account,

but given the controversy surrounding the current incumbent it is less of an option at the moment.

Smit believes the Office of the Tax Ombud has been effective since its inception seven years ago. It approaches investigations into systemic problems at SARS scientifically and its reports are detailed.

If taxpayers have a complaint, they should first follow the SARS complaint procedure. They can approach the ombud if they are not satisfied with the outcome.

The ombud will review the taxpayer complaint, to determine if it falls within its mandate, how it will be managed, and preparing a preliminary assessment.

It then sends the complaint, with supporting documentation and the outcome of the preliminary investigation and recommendations to SARS.

Although the recommendations are not binding on a taxpayer or SARS, the taxpayer or SARS must, within 30 days of receiving the recommendations, provide reasons why the recommendations have not been accepted.

Smit says the investigations and the assistance taxpayers have been receiving from the ombud have been “invaluable”, but believes there should be more investigations by the ombud to “drill down to the root causes of systemic problems affecting all taxpayers”.

The Tax Ombud, Judge Bernard

Tax commissioner Edward Kieswetter Tax Ombud Judge Bernard Ngoepe

Ngoepe, said in a recent statement that the role his office has played in the country’s tax administration should not only be measured by its impact on taxpayers’ morale, but by its impact on the money saved to them. He said saving a taxpayer R500 is just as important as saving a business millions.

Many businesses could have been shut down, homes sold and families left destitute had it not been for the ombud’s intervention.

“The fact that, on average, over 80% of complaints received have been ruled in favour of taxpayers is a clear indication of the need for this office … Our commitment ensures that taxpayers do not pay a cent more or a cent less than what is due,” he said.

SARS has implemented about 90 percent of the ombud’s recommendations in the past three years.

The ombud’s mandate has been extended in the past few years, but there has also been calls for the office to have more “teeth” in order to make findings that are binding on both the taxpayer and SARS.

Legwaila says it is sad that taxpayers need to extend the ombud’s mandate. “Our tax administration should be efficient, fair and diligent enough to ensure that there is no need for taxpayers to seek a broader mandate of the ombud.”

Davis committee

About the same time as the establishment of the ombud, the Davis Tax Committee, appointed by the then Finance Minister, Pravin Gordhan, started its work on reviewing SA’s tax policy framework and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability.

The Davis committee’s final report on tax administration emphasised the need for a bill of rights that is "enforceable and with legal effect", to guarantee the rights of taxpayers and ensure that SARS takes responsibility for its dealings with taxpayers.

The Davis committee recommended that the Tax Ombud be given the powers to enforce this bill of rights. Ngoepe has been vocal about his disappointment that a bill of rights has not been published yet. The ombud has also provided SARS with a draft document setting out the rights and obligations of taxpayers, but together with the Davis report it seems to be gathering dust in government offices.

The Davis committee looked at various models and suggested the gradual implementation of the Mexican model.

The Mexican Tax Ombud is one of the most powerful in the world and when taxpayers are confronted by an abusive tax administration they tend to want that kind of power on their side, remarks Legwaila.

Taxpayer responsibility

Smit says taxpayers ultimately have to take responsibility for their own tax affairs. She advises South Africans to be informed about their tax matters.

“Visit your eFiling profile on a regular basis for communication from SARS in order to respond timeously to correspondence and to be dispute-ready should it become necessary.”

Individual taxpayers should also understand that SARS’s “auto-assessments” are really just an “auto-filled return” on which their information received from thirdparty data providers has been prepopulated.

“You are responsible to make sure that the information on the assessment is correct before it is accepted or submitted”. She also urges taxpayers to adhere to deadlines.

Smit says taxpayers should make use of “tax savvy applications” such as ReceiptBank to capture their receipts electronically. It is critical to have supporting documents when the taxman comes knocking.

THE FUTURE OF FINANCIAL ADVICE

In the last decade or so we have seen the demise of the old style of financial planning and the rise of an industry that is much more professional. But more changes are coming, and they’re coming fast!

Here are six ways that financial planning is gearing up for a post-Covid world:

Meet anywhere, any time

One of the few good things to come out of the pandemic has been the shift to remote working and online advice.

Even my older clients have embraced video-call tech like Zoom.

They love not having to sit in traffic to get to a meeting and they enjoy being

able to replay a recording of the session to help them better understand our conversation.

Even before the pandemic, many smaller financial planning practices were already operating from home offices, or at least partially from home with reduced rental requirements. Since March, bigger organisations have had to follow suit. This kind of arrangement is better for advisers and clients.

Nothing beats in-person for an initial consultation, but once the relationship has been established, remote meetings are preferable.

You can have shorter, more frequent interactions, which is far better than only touching base once a year.

2Niche service is key

Just as you wouldn’t consult with a general practitioner if you have a complicated shoulder injury, you can now seek out a financial planner who understands your specific financial needs and can offer specialised advice. For example, I’ve heard of a female adviser in the US who offers her services only to women – and only women in the tech industry. She comes from that industry herself so she can speak their language.

This is only possible because location is no longer an issue – clients can hire specialised advisers in other provinces or even other countries.

Financial planner Hardi Swart says the pandemic has accelerated change in his industry – to the benefit of you, the consumer.

Investment advice doesn’t suffice

Financial planners who only offer investment advice are a dying breed. Since most major asset managers generally deliver similar returns, it makes no sense to nit-pick between funds from the leading asset managers. Instead, your adviser should be looking at the bigger picture: whether your investments align with your life goals; if you’re suitably protected against market volatility; and whether your tax setup is as efficient as it can be.

That said, there has been an international move towards ethical investing, or at least investing in a way that does not support companies doing

damage to people and the environment. As an adviser, if you’re going to offer any investment advice, it would be in this space – helping your client align their portfolio with their personal moral code.

The financial adviser as life coach

Having someone to chat to about money decisions is invaluable. Indeed, the goal of financial planning has shifted from market analysis to the psychology of investing – what are you trying to accomplish with your money?

A relationship based around this kind of discussion will always be far more beneficial than one based purely on

Excel spreadsheets. Service, empathy, creativity… These are traits that will define the profession going forward.

Tech intervenes

“Robo-advice” is all the rage at the moment – algorithmdriven financial planning that doesn’t require an actual adviser. This is great for investors just starting out because it’s cheaper and gives more people access to planning tools, but as your portfolio grows and your life circumstances change, you’ll discover that nothing can replace oldfashioned human interaction.

I foresee a hybrid system developing, where algorithmic tools will streamline back-office operations to add even more value. Using this tech, advisers will be able to service more clients and provide existing clients with a deeper level of expertise.

No more hidden fees

Most financial planners take a fee percentage according to assets under management (the so-called AUM model). This works fairly well for the majority of clients, but it fails those who have little to invest and those who have loads of capital. Advisers who service high-net-worth individuals generally work for a flat fee. This model is catching on at the other end of the spectrum too, where younger advisers are taking on clients with limited funds for a set amount. It’s all part of a movement towards greater transparency. In Australia, for example, legislation has been passed whereby clients need to opt-in every second year if they’re in an AUM arrangement. In this way they can reassess whether the fees they are paying are worth the service they have received. We’re living in an uncertain world. Now more than ever, it’s paramount that you protect your savings and plan for the future. Contact a Certified Financial Planner and start a journey together towards peace of mind.

Hardi Swart is director of Autus Private Clients and Financial Planner of the Year 2019. This article first appeared in the Personal Finance Saturday supplement on October 10, 2020.

A PASSION FOR SETTLING DISPUTES

Ombudsmen in the financial services sector fulfil a vital role in ensuring that consumers can seek justice against large financial corporations without having to resort to costly court procedures. Personal Finance profiles Edite Teixeira-McKinon , chief executive of the office of the Ombudsman for Short-Term Insurance.

Edite Teixeira-McKinon is a role model for many young women and men looking to carve out a career in the insurance alternative dispute resolution sector. It’s a responsibility she takes seriously, but not one that has always come easily.

The daughter of Portuguese immigrants, Teixeira-McKinon grew up in a tight-knit family where self-sufficiency was the order of the day. Both men and women have left an indelible mark on her professional journey, but she never had a formal mentor.

“Only when I started working with a coach a few years ago did I come to learn that I could be a mentor to someone,” she says, reflecting on the importance of guiding young South Africans and the value she believes is inherent in the Ombudsman for Short-Term Insurance (Osti) internship programme. In 2020, the Osti has three second-year legal graduates and two first-years on an internship initiative which is now in its third year and is open to legal graduates wanting to pursue a career at the bar.

For these young interns, TeixeiraMcKinon’s own story underlines the importance of hard work and dedication. “I’ve always worked hard, done everything with excellence,” she says. “And this is what I tell the interns who come to me for advice.”

Carving out a niche

As a young legal graduate, and admitted attorney, Teixeira-McKinon soon realised a career in legal practice was not for her.

So she steered herself towards financial services, starting out at Mutual & Federal Insurance Company. Over 10 years she gained experience in the insurance sector, before joining the Osti as an assistant ombudsman.

After four and a half years, and needing a break from the sheer volume of work as well as more time with her family and young daughter, Teixeira-McKinon took an 18-month break from the ombud’s office, returning to the corporate world. It proved a seminal moment. “I realised that my values were aligned to the Osti’s. The process of adjudication, applying the law and fairness and finding the best possible resolution was my passion,” she recalls. Teixeira-McKinon returned to the Osti as general manager and later became deputy ombudsman. In 2020 she was appointed chief executive.

Covid rocks the boat

In many respects, 2020 has been a baptism of fire; necessitating an organisation-wide shift to remote work.

The latter was enabled by the Osti’s foresight in moving to a totally paperless environment over the course of 2019.

Teixeira-McKinon salutes her team for rising to the occasion with empathy, understanding and a willingness to assist both colleagues and those applying for adjudication. This, she believes, underlines the importance of the human touch in the process. While the Osti does have a fasttrack procedure for more easily resoluble

cases, these only account for around 30 percent of matters.

“All others need engagements and probing, and some are resolved months later. Adjudication is quite complex, and I don’t know if robotics can ever really apply equity and fairness to outcomes,” says Teixeira-McKinon.

This creates a clear space for graduates with a legal background who are capable of dealing with matters of complexity with empathy, curiosity and humanity. These are traits which are well suited to the young female interns, who, to date, outnumber the men who have been through the Osti internship programme. This also underscores the importance of empowering and educating women about the value of insurance and protecting their assets.

Teixeira-McKinon adds: “My daughter, who is in matric, does business studies, and they touch on insurance. We were never educated on this in the past. I came into the insurance environment knowing nothing about insurance, because my parents believed in self-insurance by saving. But things are so expensive that even if you save it’s unlikely you can ever replace an asset such as a motor vehicle or the entire contents of a home.”

Insurance remains a form of protection which spans gender, race and age and, she concludes, is a consideration that should be “very much part of financial planning”. – Supplied by the office of the Ombudsman for Short-Term Insurance.

BENEFICIARY FUNDS EXPLAINED

Most people have never heard of beneficiary funds. But they fulfil an important function, quietly operating in the background, providing much-needed financial support to orphaned children. If you have minor children, you may consider these funds in your estate planning. Martin Hesse found out how they work.

Beneficiary funds are unique to South Africa and have been around only since 2009. They were conceived in the aftermath of the Fidentia scandal in which the Living Hands umbrella trust, containing billions of rands belonging to thousands of widows and orphans, was mercilessly

plundered. The new, far more robust instrument put in place by the legislators is, in effect, a type of retirement fund, falling under the Pension Funds Act and subject to the controls and tax advantages the act provides.

Beneficiary funds have a single, well-

defined purpose: the safeguarding and administering of retirement fund benefits that have become due to a retirement fund member’s child under the age of 18 (a minor beneficiary) on the death of the member.

The fund uses the money to contribute towards the child’s living and education

expenses until the child turns 18, whereupon any remaining capital may, at the discretion of the fund’s trustees, be paid in a lump sum to the child or withheld to further fund the child’s education.

Distribution of death benefits

On the death of a member of a retirement fund, the trustees of the fund have the onerous task of deciding how the death benefit – typically consisting of accrued retirement savings plus a life insurance payout – should be distributed. As required by section 37C of the Pension Funds Act, which governs the distribution of death

benefits, they must take into account the dead member’s dependants and the nominated beneficiaries stipulated by the member on the fund nomination form.

In the case of distribution to a dependant under the age of 18, the trustees can decide to:

• Pay the funds to a remaining parent or legal guardian to manage on the child’s behalf, provided the person is financially competent and the trustees are confident that the money will be used in the interests of the child; or

• Pay the funds into a beneficiary fund, if the remaining parent or guardian is not deemed to be financially competent, or if both parents are deceased and the child is being cared for by a caregiver, such as a grandparent, who is not a legal guardian.

Beneficiary funds may also receive benefits due to children over 18 in cases where the trustees of the retirement fund conclude that it is appropriate for the child not to receive the benefit as a lump sum.

David Hurford, director of marketing and consulting at independent beneficiary fund administrator Fairheads Benefit Services, explains that beneficiary funds deal only with employment-related benefits. They do not handle assets from deceased estates, or non-employmentrelated benefits that bypass the estate, such as benefits from a privately held life insurance or endowment policy.

“Put another way,” Hurford says, “beneficiary funds can receive retirement and other employment benefits payable on the death of a retirement fund member. Practically these would be: retirement fund credits; payouts from group life policies, both approved (policies of the fund) and unapproved (policies of the employer); retail retirement benefits, such as retirement annuities (RAs), and other employment benefits that would have been payable to the deceased member, such as accrued leave pay.”

While anything within the estate falls outside the ambit of beneficiary funds, they can nonetheless be useful as an estate planning tool for bequeathing retirement fund assets to minor children (see “Estate planning”, below).

Beneficiary funds by definition must have strong governance and operate according to the same high fiduciary standards as retirement funds. They are registered with and regulated by the Financial Sector Conduct Authority. Beneficiaries and guardians have recourse to the Pension Funds Adjudicator if they have complaints.

Inflows and outflows

In a column for the Personal Finance weekend newspaper supplement last year, Giselle Gould, director of business development at Fairheads, explained how beneficiary funds worked:

• A death benefit payment is transferred into a beneficiary fund and a member account is set up.

• The money in the member account is invested and investment returns are added to the account.

• Various payments are made from the member account. These may consist of:

a) Regular monthly payments towards general living costs. The guardian or caregiver will be paid a regular stipend, determined by the needs of the minor and the value of the member account.

b) Ad hoc payments may be granted to the guardian or caregiver for specific costs such as school fees, uniforms, books and transport, subject to the scrutiny of the trustees. These capital payments are usually paid directly to the provider of the goods or service (for example, the school) to ensure the money is used appropriately.

• The member account is carefully monitored and managed so that it can last as long as necessary. For this reason, not all payment requests by the guardian or caregiver may be approved.

• Fees are charged to administer the member account.

• On the beneficiary’s 18th birthday, the balance is paid into his or her bank account or withheld for further safekeeping and administration at the discretion of the trustees or on the wishes of the beneficiary.

The investment of benefits

Investments are pooled, says Gould, providing for savings on fees. Also, as is the

case with pension funds, beneficiary funds are charged institutional rates by asset managers, which are substantially lower than retail rates.

Regarding the asset allocation and investment management of beneficiary funds, Gould says: “Members benefit from expertise gained over many years of managing minors’ money, which is quite different from the investment management of contributory retirement funds.”

There are significant tax advantages: beneficiary funds are wholly tax exempt, both in terms of income and capital distributed from the fund. “There are few better investment vehicles available in South Africa today from a tax perspective,” Gould says.

Estate planning

A beneficiary fund account can only be set up for a beneficiary by the trustees of a retirement fund. However, Gould says that you can guide the trustees in their decision by stating on your nomination form that you would like them to consider the use of a beneficiary fund. In particular where you have minor children, the option of a beneficiary fund is far more cost-effective and tax-efficient than a stand-alone testamentary trust, she says.

From an estate planning perspective, a large portion of your assets could be in retirement funds of one form or another. Apart from being a member of an occupational pension or provident fund, you could have savings in preservation

funds and/or RAs.

Monitoring care

The beneficiary fund has a fiduciary duty to ensure that the money is being used for the intended purpose and that the caregiver is continuing to care for the child.

In a recent webinar by Fairheads explaining beneficiary funds and their operation, Gould elaborated on this function: “In addition to an annual Home Affairs check we do, every guardian or caregiver must undertake an annual proof of existence process.

This is either completed in interview format with our staff, or by sworn statement. The process involves confirming that the guardian or caregiver

Example of a beneficiary fund model

Fairheads Benefit Services has developed a lifestage and asset allocation model, which provides guidelines on how to handle a certain sum of money due to a minor of a certain age.

As an example, a benefit of R150 000 is paid to a minor child aged 10. An account is set up to run until the child’s 18th birthday.

The monthly payments are set at R625 per month and increased every year by inflation (set at 6% per year), totalling about R70 000 over the eight years.

Capital requests (for the payment of school fees, for example) are set at R7 500 per year, paid in February each year, totalling R60 000.

Administration costs will be about R20 000 over the eight years.

Investment performance is assumed to be the benchmark for the fund, as follows:

• Money market fund = CPI

• Income fund = CPI + 3%

• Stable fund = CPI + 5%

• Balanced fund = CPI + 7%

A termination benefit of almost R80 000 is expected. The assets are allocated to the various portfolios and rebalanced annually to re-risk the member as they approach termination age. The principle is that the younger the member, the more they will be exposed to growth assets because of their longer investment horizon.

The Guardian's Fund

While each serves to administer relatively large sums of money left to minors, among others, there are important differences between beneficiary funds and the Guardian's Fund.

The Guardian’s Fund falls under the administration of the Master of the High Court (each high court in the country has its own fund).

It protects assets inherited by minors, people lacking legal competence or capacity (such as adults with mental disabilities), and absent

is alive, the beneficiary is alive, and that the beneficiary remains in the care of the guardian or caregiver. We also collect information to do with the child's progress through school as well as their general well-being.

“It is a fact that some guardians do abuse funds and this is a high-risk area. This is why we limit the amount of money paid out monthly as income to the guardian or caregiver.

The majority of assistance that the beneficiary fund provides is paid out as

or untraceable heirs. Typically these assets would flow to the Master from a deceased estate in which no provision had been made in a will for minor heirs or for heirs lacking legal capacity, or where the deceased had died intestate (without leaving a will).

As in the case of a beneficiary fund, an account is opened for each beneficiary, and an applicant in the form of a guardian, curator or caregiver can claim maintenance or an allowance from the fund.

The Master may pay from interest,

capital assistance. Every capital request is assessed by our staff.

The safeguards we have in place are that capital is restricted to an annual budget, supporting evidence is required for all payments, and payment is made directly to the service provider.

“Fairheads has a well-resourced fraud and forensics department, and where any signs of discrepancy are noted, the entire member file is referred to them for further investigation.”

Gould says Fairheads has found that

as well as up to R250 000 from the invested capital, for maintenance to cover school and university fees, clothes, medical fees, boarding and lodging and other needs.

Fairheads' David Hurford advises against using the Guardian’s Fund as a safe haven for assets of minor heirs or heirs that lack legal capacity. “In our view, the Guardian’s Fund is an extremely opaque vehicle and should be avoided if possible, by having a valid will and nominating a suitable trust instead.”

regular communication with the family is the most effective way to combat fraud. “We collect information from every interaction with guardians and members, including our field agent and guardian roadshows, and then constantly use that information to test for compliance and inconsistency.

“Ultimately, where our staff have any indication that money is being abused – and this includes their ‘gut feel’ – we take steps to investigate and rectify the situation.”

HOW TO SET UP A BUSINESS IN THE UK

Scott Brown says that if you have your paperwork in order, setting up a subsidiary company or opening a new company in the United Kingdom is not too difficult.

South Africans are increasingly setting up businesses in the UK, sometimes as a hedging strategy in the uncertain economic climate in South Africa, and often because they want to tap into the global trade opportunities for which the UK is well-positioned. Britain is known for its complex bureaucracy, but if you have your paperwork in order it is a very efficient process.

Setting up a company

Incorporating a company is relatively quick and easy. The set-up can be done in 48 hours. Most South African businesses wanting to expand to the UK take the subsidiary option, opposed to branch. When it comes to a branch, you would have to declare your parent company’s result at Companies House in the UK and most people don’t want to do that. Setting up an entirely new business in the UK is not impossible to do. I would recommend that if you are looking to incorporate a company, you should go for the simplest structure possible: this would be one person being the director and one person being the shareholder, which

can be the same person. Over time more people can be added.

The Companies Act of 2006 governs company law in England and Wales. A foreign company is required to register as an establishment with Companies House within one month of commencing business in the UK.

Tax number applications including PAYE and VAT can usually be applied for online, although there are a number of questions and, if completed incorrectly, will lead to queries from HM Revenue & Customs (HMRC). However, if completed correctly, you should receive the tax numbers within five to 10 working days.

Opening a bank account

Here, the red tape is not necessarily created by the government; it’s actually created by the banks.

Rampant money laundering and tax fraud has made the banks extremely cautious. Opening a bank account can take three to six months.

There are certain formalities to be met from a know-your-client (KYC) and antimoney laundering perspective.

The banks want to meet and interview a director in person. As a chartered accountancy firm, we are also obliged to adhere to these procedures and regulations. Usually, the proofs obtained when we gather information to act on your behalf will also be acceptable to a banking provider.

We anticipate that the process of opening an account should normally take between three to six months from start to finish. However, because we know there can be delays, especially on more complex structures, a company such as ours, which offers cross-border financial and immigration advice and solutions, can usually open a designated managed trust account for you to use in the meantime.

The bank allows us to set up a company trust account. This can be opened in your company’s name, your clients can make payments into that account and we can help facilitate payments out of the account. The benefit of the trust account is that it can generally be set up in one to two weeks, which means you can be up and running in a couple of weeks.

Issues arise with the banks when there are multiple shareholders or multiple directors, because every director and shareholder has to be KYC. The banks may also want proof that the business is legitimate and ask for anything from a business plan to what the business is doing, its operations in South Africa and whether it has a website. The bank must be sure the company is set up for legitimate purposes and will not be involved in crimes such as money laundering.

Other issues that can cause problems are when shares are held in trusts.

Banks may require full disclosure of the trust and require details of the settlor, trustees and beneficiaries.

The banks go down to the level of individual ownership. If you have a UK company owned by a South African company owned by a trust, then the account opening procedure will take longer than normal, as the banks want to know who the individuals in charge are. Proof of ID, ownership, who you are and your physical address is everything in the UK. You’re not going anywhere without that.

You do not have to be a UK resident in order to set up a UK company bank account, but you have to have at least one director (not necessarily a shareholder) residing in the UK.

To open a bank account as a non-resident, you will need proof of identity and your residential address to have been notarised. There are strict requirements involving who can, and how they can, do this.

Private limited companies are not obliged to appoint a company secretary unless the company’s articles contain a reference to this position. Existing private limited companies may retain a company secretary if they wish, and newly established companies can opt to appoint one. If you’re running a public limited company you must, by law, have a company secretary.

The company secretary usually acts as the chief administrative officer of the company, leaving the directors free to concentrate on running the business. The company secretary doesn't have to be a director but he or she does share some of the directors’ legal responsibilities. However, ultimate responsibility for ensuring the company is properly administered remains with the directors.

At Sable, one of our principals takes this role for the UK companies we act for. With our address as the registered office (legal, not trading), we combine the two roles and ensure that documents from HMRC and Companies House are dealt with timeously.

Why the UK is attractive for business

The UK offers a stable currency, stable political structure and, even in the wake of Covid-19, a stable economy.

Regardless of Brexit, the UK is an investor- and entrepreneur-friendly country, making start-up costs for businesses lower than in most other developed countries. It also has one of the lowest corporate tax rates in Europe.

As a small, densely-populated and wealthy country, it’s easy to find a large customer base.

UK markets are opening up more because of Brexit, but Britain is still very close to Europe. The UK is a very easy place to do trade from. For export businesses, the UK is a great place to be.

Scott Brown is managing director of Sable International UK.

VIEW LET WHAT YOU VALUE LEAD THE WAY

MILLENNIAL

It was my birthday when President Ramaphosa announced the national lockdown. It didn’t come as a surprise, but it definitely wasn’t on the gift list. Adopting two rescue dachshunds that same day also happened, which in hindsight, was the right thing to do, even with uncertainty in the air. Dog cuddles + two introverts = a manageable home under lockdown, for the most part.

Like for many, the moments before level-five lockdown began were a time of hustling to get ready for home life. I was able to dodge toilet paper wars and intense queues, but it felt like everyone, despite social-distancing suggestions, was ignoring that stores would remain open, including me.

A cashier said I wouldn’t believe what people were buying, confirming that my packed trolley wasn’t even in the running. Still, it seemed excessive for just my fiancé, dogs and I, but the security of being prepared felt priceless.

I know this wasn’t the same experience for so many others and I truly count my blessings. To remain employed and able to work from home was a luxury. We made some budget adjustments, but online shopping was the biggest change. It seemed insane not to order whatever you could, and this from a reformed mall rat who also got a kick from browsing grocery stores.

CATHERINE RILEY

Catherine Riley is senior PR account manager at CDCom

I was the person with the hand-written list who checked the expiry date on everything. Letting go of that and learning to plan (instead of quickly popping out to pick something up) was a good shift for me. I’m more conscious of what I choose, as the virtual trolley or basket demands it. Several clicks to acknowledge what you are about to spend is quite different to the fuss of removing swiped items at the till. Even though there are limitations or delivery costs, I would argue that online shopping has saved

me money.

My job forces me to think about finance constantly: the economy, where is it going? Working in financial services PR means the reminders to save are always there, along with the guilt if you are paying off short-term debt instead. I’m finally in a place where I have some reserves built up, which takes some pressure off, but it wasn’t always like this.

I’ve been through a financial emergency, without the savings to back me up. Fortunately, I had access to credit, but it was a slippery slope into several years of financial recovery, barely making it from salary to salary. My dog Lucy was hit by a car. She wasn’t insured due to having lupus, but she could be healed through two surgeries, months of physio, as well as hired help to care for her, while I was at work trying to fund it all and have a normal life at the same time. It was worth every penny and every sacrifice, even though the journey was tough. Sure, that money could’ve gone into my nest egg, but doing everything I could for Lucy was what I valued most. In hindsight, I might’ve asked for vet financing instead of swiping my credit card, but you live, and you learn.

The emotional and financial loss through all of that has really shaped me into who I am now. My only debt these days is my home loan.

When plans suddenly change (be they petrelated or because of a pandemic), it does make you reassess what you have and if you still need it, or you discover what you cannot live without. I value my family’s well-being and financial security. While it can be hard when you aren’t sure about tomorrow or when a bad day drops by, if you let what you value lead the way, it can really help you to stay focused.

WHEN DOG-BITE CASES GO TO COURT

The owner of a dog that attacks a person who neither provoked the attack nor by their negligence directly caused their own injury is liable, as owner, to make good the resultant damages.

Based on Roman law, for nearly 200 years the law in South Africa has accepted that owners of animals are strictly liable for harm done by domestic animals.

People are entitled to walk in the streets without having to fear being attacked by domestic animals such as dogs, and where such attacks occur,

they are, in most circumstances, able to look to the owner of the animal for recompense without having to prove negligence or deliberate wrongdoing on the owner’s part.

In 1927, the Appellate Division in O’Callaghan N O v Chaplin rejected the argument that the Roman-Dutch pauperien action (strict liability for harm caused by animals) should be abolished because it was not based on fault.

In 2020 the Supreme Court of Appeal in Van Meyeren v Cloete, has confirmed that

the law has not changed.

The pauperien action provides a remedy in cases where, otherwise, persons injured would be remediless. It is right that the owner, not the innocent sufferer, should bear the loss.

The O’Callaghan court identified two circumstances in which the owner would not be liable:

• The injured party was in a place where he or she was not entitled to be. For example, a housebreaker bitten by a watchdog, or where the animal was

can exonerate the owner of an animal from liability only if those actions directly caused the incident in which the victim was harmed in circumstances where the owner could not prevent that harm from occurring.

That is why provocation by the victim or the negligent failure of a third party to control an

animal in their custody or under their control exonerates an owner.

On the facts of the case any assumed intruders had no responsibility to the defendant in relation to his or her dogs. They did nothing in relation to the dogs. They allegedly interfered with the locks on the gate enabling the dogs to go into the street and attack the plaintiff. Responsibility for the dogs had not passed from the defendant to the intruder.

Apart from declining to develop the law to extend the defence, the court found that there was no proper basis to accept the defendant’s version of events. The onus of proof lay with the defendant. There is no obligation on a court to accept an improbable explanation of events merely because no other positive explanation is proffered, or the alternative seems to the court, even less probable. In this case there were two possibilities. The one was that

explanation that there must have been an intruder. The fact that the trial judge could not reject the defendant’s evidence does not mean that the judge was obliged to accept it. The issue was whether, on a balance of probabilities, the defendant’s version was the only explanation for the dogs escaping. Unless that conclusion could be reached, the defendant did not discharge the onus of proof, and that defence would have failed even if the law had been developed.

Donald Dinnie is a renowned litigation lawyer with a background in insurance law. He is a director at Norton Rose Fulbright SA. This article, which first appeared in the NRF Financial Institutions Legal Snapshot newsletter, is republished with kind permission.

LOOPING THE LOOP

The envisaged future relaxation on so-called loop structures will be accompanied by amended tax laws, but current proposals are likely to result in more tax on certain structures, say Nola Brown, Anne Bennett and Cor Kraamwinkel.

National Treasury has proposed a number of amendments to tax legislation as a result of the potential future relaxation of the SA Reserve Bank's current prohibition on so-called "loop structures". Unfortunately, these tax amendments do not appear to have been the result of a holistic approach to the issue and are somewhat one-sided in favour of the South African Revenue Service. Instead of levelling the playing fields to ensure that the fiscus is no worse off than it otherwise would have been in the absence of a loop structure, the proposed amendments will, in some instances, actually result in more tax being imposed than would be the case now.

In the context of shareholding structures, the prohibition on loop structures is aimed at situations in which one or more South African shareholders, either directly or indirectly, hold shares in a foreign entity which in turn holds shares in one or more companies in the Common Monetary Area (South Africa, Namibia, Lesotho and eSwatini). This prohibition is, however, subject to dispensations granted by the Reserve Bank, which have been expanded in recent years. Currently, a loop structure may be permitted provided that the South African resident shareholder in the foreign company (on its own or together with other South African resident shareholders) holds no more than 40 percent of the shares or voting rights (whichever is greater) in the non-resident company.

To promote investment, the Reserve Bank has indicated that, at some future point and subject to tax law changes that may be needed, approval will no longer be required where the 40 percent shareholding is exceeded.

With the relaxation of the restrictions, there will be more investment opportunities available to South African investors, which should benefit the local economy in the long term. The tax authorities are concerned

that the existence of a loop structure may result in loss of tax to South Africa, especially in the context of dividends paid by local companies to the foreign holding entity instead of directly to local shareholders, and capital gains made by the ultimate South African shareholders on the sale of their shares in the foreign entity, when previously they would have disposed of local shares.

National Treasury is fortunately not proposing to target all loop structures, but only those in which the South African shareholder interposes a controlled foreign company (generally a company held more than 50 percent from South Africa) between themselves and companies in South Africa.

The proposal has the effect that dividends paid by the South African company to the foreign company will suffer both local dividends tax (at 20 percent or a reduced tax-treaty r ate, if applicable) and also income tax under the controlled foreign company rules. Whether the ultimate South African shareholders are individuals or companies, more South African tax will be triggered than if they had received the dividend directly. There is no clear justification for this.

Dividends paid by a South African company to a South African individual are subject to 20 percent dividends tax but no income tax. Dividends paid between South African companies are, however, fully tax exempt.

Arguably, the proposed amendment should be changed to prevent any income tax from being triggered on the dividend paid to the foreign company where the shareholder in that foreign company is a South African tax resident company. In addition, where the South African shareholders in the controlled foreign company are individuals or trusts, the amount on which the South African income tax is payable should be adjusted

to ensure that the rate of South African income tax on the dividend is no greater than 20 percent, namely the tax rate that would have applied had they received the South African dividend directly.

Treasury has also proposed that the capital gains tax exemption which can apply on the disposal of shares in a foreign company should not apply to the disposal of shares in a controlled foreign company to the extent that the value of the controlled foreign company's assets are derived from South African assets. Practical difficulties may arise in performing this calculation.

This proposal will penalise South African tax residents for investing in a foreign company which may have held South African assets for many years prior to the South African tax resident's investment in the foreign company. Discouraging investment in this manner appears to be short-sighted and potentially detrimental to economic activity.

Another problem is that South Africa's tax neutral group reorganisation rules have not been expanded to cater for reorganisations where loop structures are involved, even though all parties to the relevant transaction are either directly (or indirectly through the controlled foreign company rules) within the scope of South African tax. It is important that, in addition to introducing measures to protect the tax base, Treasury should also amend the tax legislation to facilitate genuine business transactions which will in future be permitted in the loop structure environment.

Treasury has acknowledged the submissions made on the difficulties created by the proposed amendments, and we await with interest its response to our concerns.

Nola Brown is an associate director and Anne Bennett and Cor Kraamwinkel are partners at law firm Webber Wentzel

OLD MUTUAL GOLD FUND

The Old Mutual Gold Fund occupies a unique place among South African collective investment schemes. In the Association for Savings and Investment South Africa classification system, it sits alone as an unclassified fund in the Worldwide Equity category.

While its categorisation enables it to hold offshore and local equities in any proportions, it means that the fund does not fall within the Raging Bull Award categories, and is thus not eligible for these awards.

The fund has been going for 30 years. Last year, there was a move by Old Mutual to merge it with the Old Mutual Equity

Fund, but investors were having none of it, and the company was persuaded to keep it separate.

The fund has performed extraordinarily well over the last couple of years, and over the last six months in particular. Last year commodities did well overall, while this year gold as a safe-haven store of value has soared amid the market turmoil created by the Covid-19 pandemic.

According to ProfileData, to the end of September, the fund had a one-year return of 88.66 percent, a three-year annualised return of 42.86 percent and a five-year annualised return of 29.56 percent.

This performance has been rivalled in

recent months only by funds invested in global tech stocks.

The fund is not suited to risk-averse investors. Its fact sheet states: "This fund is suited to investors seeking capital growth over the long term, who have a particular view of gold and other precious metals and who can tolerate stock market and sector volatility."

The size of the fund is R1.5 billion, and its benchmark is the FTSE/JSE Gold Mining Index (70 percent) and the FTSE Gold Mines Index Series (30 percent). Its principal holdings are gold mining companies, although some holdings are diversified miners that also dig other

Meryl Pick

metals out of the ground.

Currently, the fund holds shares in roughly the same proportions as the benchmark: 68 percent in local miners, 31 percent in offshore operations, and about one percent in cash. Meryl Pick, the fund manager and head of equities research at Old Mutual Investment Group, says that although they may still be listed on the JSE, most of South Africa’s big mining companies have diversified offshore, the only purely South African miner being Harmony Gold.

Three companies account for over two thirds of the fund’s holdings (as at August 31): AngloGold Ashanti (30.7 percent),

Gold Fields (29.1 percent) and Harmony (8.2 percent). Other top holdings are Canadian miner Barrick Gold (7.2 percent) and US mining company Newmont Corporation (7.0 percent).

Pick said the fund can invest in gold shares or in the physical metal directly, but is currently invested entirely in shares.

In a recent Virtual Network seminar for financial intermediaries, “Understanding the role gold can play in an investment portfolio”, she said: “The fund is wholly invested in equities at this point, which means I am not prepared to bet against the gold price. If I were in a more bearish mindset I would be holding more cash or

more physical gold.

“Leverage shown by shares against the metal has been strong – at the helm of these companies, by and large, are management teams that have been through the lean years of gold and which are quite prudent in allocating capital, and a lot of cash flow is dropping to the balance sheets. The equities themselves could also surprise on the upside in terms of dividend yield.”

She said the fund has benefited this year from both a weakening of the rand and a rally in the gold price. “So a strengthening rand could potentially take some of the shine off the rand gold price, which is at record levels at this point.”

Pick would not be drawn into predicting the gold price. But she said that, even if you disregard the short-term effects of the Covid-19 crisis, longer-term drivers of uncertainty and headwinds to global economic growth will probably ensure that gold remains strong.

These include burgeoning government debt and the monetary policy “experiments” being undertaken by central banks; trade war tensions, signalling that globalisation may have reached a peak; ageing demographics; populism, which could translate into higher taxes and wage pressures in the absence of higher productivity; and technological disruption.

With gold equities outperforming the gold price at present, Pick said investors in gold miners are not pricing in a pessimistic outlook.

When Personal Finance asked her about stock selection and local versus offshore allocation, Pick said: “The gold universe is small, but when it comes to stock selection we focus on growth, sustainability of cash flows, and relative valuation.

“When looking at offshore versus global allocation, we need to consider that the fund benchmark is a composite comprising 70 percent JSE-listed and 30 percent global shares.Performance gets measured against this benchmark, so we use this as a guide and look at relative performance between the two markets.”

Source: Old Mutual Investment Group & Factset | All Returns are in Rands

Source: Morningstar and Old Mutual Investment Group

For many of us, 2020 has certainly left a mark on our finances. Maybe you have had to access your savings to make ends meet, or perhaps you’ve simply realised how precarious your financial position really is. For whatever reason, many of us are asking the same questions: how can we grow our savings and build wealth for the long term? How do we best position our portfolio to deliver on the most basic requirement, which is to outpace inflation, despite the severe economic upheaval?

The thing to remember first is not to panic and make rash, emotional decisions. Panic paves the way for mistakes, and making mistakes in this environment could be more devastating to your long-term wealth prospects than any losses incurred so far. Here are some mistakes that are best avoided, if your focus is on rebuilding your long-term wealth.

Thinking the future will look the same as the past

When times are tough, we think things will continue this way indefinitely, and people tend to make decisions based on fear.

Being aware of this tendency and recognising it in yourself if it arises, may help to keep you focused on your long-term plan.

ON THE CONTRARY REBUILDING WEALTH AFTER A CRISIS

One thing history tells us about the markets is that the good times don’t last forever – but neither do the bad ones. A key aspect we often overlook is that during tough times, good companies respond by becoming leaner and more efficient. Once demand returns to the market, the impact is really felt in the earnings recovery.

Investing is a long-term game, and evaluating returns from equity over a one- to three-year period, or even over five years, can give a skewed perspective.

This is especially the case since we have seen such an abnormal return environment over the past few years, where fixed income investments have outperformed equities.

Assessing your investment returns over periods of longer than five years will give a more balanced view, as will focusing on tried and tested investment principles.

Looking for silver bullets

Investors have flocked to fixed income and money market investments recently, not only because these have avoided much of the recent shortterm volatility, but also because they have tended to outperform equities over the past few years, uncharacteristically even over longer performance periods. Fixed income investments are by no means a silver bullet however, and investors need to be cognisant of the risks these investments pose over the long term as they cannot deliver the growth you need to keep pace with inflation. Over the long term, having a portion in equities is still the best way to build wealth.

And for those thinking “I’ll stick to the money market for now, and get back into equities later”, how are you going to time this move, and have you factored in any tax implications? Research shows that the average investor’s experience tends to be a lot worse than the market over all periods, precisely because it is impossible to time the market and we are often led astray by our emotions.

Not keeping emotions in check

Emotions drive financial behaviour, and our emotions are often based on the extent to which our expectations are met or exceeded. Nobody expected a global pandemic this year, and very few investors will feel that their expectations were met.

The best thing any of us can do now is to control the “controllables”. Unfortunately, market performance is not one of them. But your behaviour is. Remembering some of the fundamental rules of investing remains the best way to safeguard your savings and rebuild what you may have lost. These include:

• Stick to your plan, but remember that planning is a process and can change along the way. If you haven’t checked in with your financial adviser this year, set aside some time with them to review and look ahead.

• Diversify. This way there should always be something in your plan that is working out.

• Be conscious of the emotional obstacles that threaten to derail your efforts, and always take a long-term view.

Anet Ahern is the CEO of PSG Asset Management.

DATABANK

WHERE TO GET HELP

With BANKING problems:

The Ombudsman for Banking Services is Reana Steyn.

ShareCall: 0860 800 900 or Telephone: 011 712 1800

Fax: 011 483 3212

Post: PO Box 87056, Houghton, 2041

Email: info@obssa.co.za

Website: www.obssa.co.za

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

Telephone: 010 593 0533

Fax: 010 590 6154

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

Email: info@csos.org.za

Website: www.csos.org.za

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

Toll-free: 0860 003 600

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

Fax: 086 758 4990

Post: PO Box 36628, Menlo Park, 0102

Email: complaints@thencc.org.za

Website: www.thencc.gov.za

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

ShareCall: 0860 000 272

Fax: 086 206 1999

Post: PO Box 3815, Randburg, 2125

Email: info@cgso.org.za

Website: www.cgso.org.za

With CREDIT TRANSACTION problems:

The Acting Credit Ombud is Howard Gabriels.

MaxiCall: 0861 662 837

Telephone: 011 781 6431

Fax: 086 674 7414

Post: PO Box 805, Pinegowrie, 2123

Email: ombud@creditombud.org.za

Website: www.creditombud.org.za

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

ShareCall: 0860 627 627

Telephone: 011 554 2600

Fax: 011 554 2871

Post: PO Box 209, Halfway House, 1685

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

Website: www.ncr.org.za

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

Telephone: 082 449 2569

Post: PO Box 67027, Bryanston, 2021

Email: secretariat@fisa.net.za

Website: www.fisa.net.za

NOT SURE WHERE TO TAKE YOUR COMPLAINT?

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 INVESTMENT problems:

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

ShareCall: 0800 110 443 or 0800 202 087

Telephone: 012 428 8000

Fax: 012 346 6941

Post: PO Box 35655, Menlo Park, 0102

Email: info@fsb.co.za

Website: www.fsb.co.za

With LIFE ASSURANCE problems:

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

ShareCall: 0860 103 236 or Telephone: 021 657 5000

Fax: 021 674 0951

Post: Private Bag X45, Claremont, 7735

Email: info@ombud.co.za

Website: www.ombud.co.za

With MEDICAL SCHEME problems:

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

MaxiCall: 0861 123 267

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

Post: Private Bag X34, Hatfield, 0028

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

Website: www.medicalschemes.com

With MOTOR VEHICLE problems:

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

MaxiCall: 0861 164 672

Fax: 086 630 6141

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

Email: info@miosa.co.za

Website: www.miosa.co.za

With RETIREMENT FUND problems:

The Pension Funds Adjudicator is Muvhango Lukhaimane.

ShareCall: 0860 662 837

Telephone: 012 748 4000 or 012 346 1738

Fax: 086 693 7472

Post: PO Box 580. Menlyn, 0063

Email: enquiries@pfa.org.za

Website: www.pfa.org.za

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

ShareCall: 0860 726 890 or Telephone: 011 726 8900

Fax: 011 726 5501

Post: PO Box 32334, Braamfontein, 2017

Email: info@osti.co.za

Website: www.osti.co.za

With TAX problems:

The Tax Ombud is Judge Bernard Ngoepe.

ShareCall: 0800 662 837 or Telephone: 012 431 9105

Fax: 012 452 5013

Post: PO Box 12314, Hatfield, 0028

Email: complaints@taxombud.gov.za

Website: www.taxombud.gov.za

Call0860OMBUDS(662837)andyouwillbedirectedtothecorrectombudoradjudicator.

DOMESTIC

OFFSHORE

RATINGS

AS AT 30 SEPTEMBER 2020

Management company PlexCrowns

TRowePrice4.225

Marriott4.000

Foord3.500

Coronation3.417

Stanlib3.300

AlexanderForbesInvestments(Jersey)3.250

InvestecWorldAxisPCC3.250

Momentum3.250

NedgroupInvestmentsInternational3.250

Sarasin3.208

VAMGlobalManagementCompanySA3.167

NinetyOneGlobalStrategy3.125

Schroder3.111

AllanGray3.000

Ashburton2.750

PineBridge2.750

DodgeandCox2.625

Sanlam2.594

Oasis2.500

PSG2.375

StandardBank2.375

FranklinTempleton2.186

Lloyds2.167

Orbis1.833

Prescient1.667

PERFORMANCE OF OFFSHORE FUNDS TO TO 30 SEPTEMBER 2020

InformationintheabovetableswasprovidedbyPlexCrownFundRatingsandProfileData

WHAT DO THE PLEXCROWN FUND RATINGS TELL YOU?

Thelastcolumninthecollectiveinvestmentscheme performancetableson pages 56 to 67 showsthe PlexCrownratingofafundifitqualifiesforarating. ThePlexCrownFundRatingssystemencompassesthedifferent quantitativemeasuresusedincalculatinginvestment performancesinonenumberandmakesiteasyforinvestors toevaluatefundmanagersonthebasisoftheirlong-term risk-adjustedreturns.

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

ThePlexCrownFundRatingsareunbiasedandobjective becausetheyarebasedonquantitativemeasures;no

subjectivityisbroughtintotheresearchmethodology.

Incalculatingrisk-adjustedreturns,themethodology acceptsthatvariousquantitativeformulaeeachhavetheir uniquedrawbacks.Inordertoovercomethis,uptofive differentriskmeasuresareused:

•Totalrisk(SharpeRatio);

• •Downsiderisk(SortinoRatioandOmegaRisk/Reward Measure);and

•Manager’sskill(Jensen’sAlphaandTreynor).

Theresearchmethodensuresthattheunittrustfunds underevaluationareexposedtosimilarrisks;therefore,the subcategoriesforunclassifiedfundsandmoneymarket fundsareexcluded.

ThePlexCrownratingsystemisameasureofconsistency becauseratingsaredoneoverthreeandfiveyearsandare timeweighted,withtheemphasisonthelongerperiodof measurement.Fundswithinaunittrustsubcategoryareranked onlyifthereareatleastfivefundsinthatsubcategorywitha

trackrecordofatleastfiveyears.Toqualifyforarating, afundmusthaveanofficialtrackrecordofatleastfiveyears.

Eachqualifyingunittrustfundisawardedacertain numberofPlexCrownsrangingfromonetofive,withthe top-performingfundsallocatedthehighestratingoffive.

ThePlexCrownratingsdistinguishbetweenpoor performersandexcellentperformers,butarebasedon historicaldataandshouldbeusedonlyasafirststepin theconstructionofaunittrustportfolio.Itremainsthe responsibilityofinvestorstogetherwiththeirfinancial advisers,tomakesurethatthefundstheychoosesuit theirriskprofilesandthattheirinvestmentplansinclude anappropriatelevelofdiversification.

Visit www.plexcrown.com for a full description of the

system.

PERFORMANCE OF DOMESTIC SUB-CATEGORIES TO 30 SEPTEMBER 2020

PERFORMANCE OF OFFSHORE SUB-CATEGORIES TO 30 SEPTEMBER 2020

PERFORMANCE OF DOMESTIC FUNDS TO 30 SEPTEMBER 2020

PLEXCROWN RANKING OF MANAGEMENT COMPANIES

COLLECTIVE INVESTMENT SCHEME PERFORMANCE TO 30 SEPTEMBER, 2020

ABOUT THE LISTINGS

FairtreeEquityPrescient(A1)53.27118.2239.0619.7415

36OneBCIEquity(A)23.135619.5828.8027.2445

MethodicalBCIEquity(B1)26.402420.6517.883

RezcoEquity(A)26.732313.1157.3045.9675

MomentumTrendingEquity(A)27.23166.30176.585

CounterpointSCIValue(A1)18.5013010.6986.2064.69204

DynastyCiWealthAccumulator(A2)21.63798.05115.8475.5695

KrugerCiEquity(A)22.32697.50145.528

1nvestSectorNeutralMomentumIndexTrkr(A)34.04512.5364.169

TruffleSCIGeneralEquity(A)29.17117.20154.16103.97275

AutusPrimeEquity(A)18.801257.85134.14113.89284

APSCiEquity(A1)25.772810.4094.09124.35224

AfricanAllianceEquityPrescient(A1)21.97757.03163.80131.96604

BlueAlphaBCISelectEquity(A)10.861713.05373.79145.06184

ElementIslamicEquitySCI(A)12.051662.17433.55157.6735

SanlamIMTopChoiceEquity(A1)28.98124.45283.43165.17165

SygniaDiviIndex(A)31.537-8.511303.28175.578

NinetyOneEquity(A)23.78464.73263.14184.2624

SatrixDividend+Index(A1)31.0210-8.511313.00195.3513

CoreSharesTop50ETF24.91332.48412.92205.1117

StanlibEquity(A)19.801133.61332.70213.25354

SatrixDiviETF27.5315-10.601442.54225.2714

36OneBCISAEquity(C)25.33315.94202.49233.56324

GryphonAllShareTracker(A)22.24713.30342.44244.5321

KagisoEquityAlpha(A)26.2126-2.64802.43256.1765

OasisCrescentEquity(D)7.141744.82252.43264.04263

AbsaPrimeEquity(A)20.88911.27492.34274.34234

CoronationEquity(A)22.43657.93122.20285.55104

KagisoIslamicEquity(A)21.5681-1.87712.18297.0355

ColourfieldBCIEquity(B)26.93200.22562.1030

PortfolioMetrixBCISAEquity(B1)28.45141.50462.01312.9639

AylettEquityPrescient(A1)22.9159-4.48921.98325.43114

WarwickBCIEquity(B)18.061355.58231.78330.65813

CitadelSAMultiFactorEqtH4(B1)20.9887-1.10681.71342.27543

AmplifySCIEquity(B4)19.28120-2.52781.50352.91414

SelectManagerBCIEquity(A)20.88901.20521.48362.76434

SatrixAlsiIndex(A1)23.34511.12531.47373.8429

DiscoveryEquity20.42974.03301.45384.97194

StonehageFlemingSanlamCIEquity(A1)14.551576.00191.4139

FairtreeSmartBetaPrescient(A1)28.7213-6.941161.3740

SanlamIMGeneralEquity(A)26.94191.24501.11413.07374

MomentumCoreEquity(A)20.6993-3.01861.0842

IFMTechnical(A)5.7917613.1240.96430.12872

NinetyOneSAEquity(E)26.34251.43480.9044

SasfinBCIEquity(A)20.031064.63270.84451.99593

CoronationTop20(A)21.43823.89310.77465.20154

27fourShariahActiveEquityPrescient(A1)16.791414.26290.72472.26553

FGIPMercuryEquityFoF(A)25.16322.18420.71482.39493

AluwaniTop25(A)17.40138-0.16580.56492.13563

Mi-PlanIPBetaEquity(B2)20.3698-0.99670.55502.89423

PrudentialEquity(A)24.2341-0.71630.49513.50344

PrudentialDividendMaximiser(A)21.0886-1.76700.32523.16364

StanlibM-MDiversifiedEquityFoF(A)20.4296-0.38590.30533.03384

PPSEquity(A)32.8063.15360.25542.3950

AbsaSelectEquity(A)23.0457-0.72640.14551.65673

CommunityGrowthEquity(A)20.4495-4.31910.14561.86633

ObsidianSCIEquity(B3)19.19122-3.83900.1457

•Resultsarebasedontheperformanceofa lump-sum investment overfourperiods thatendedon SEPTEMBER 30, 2020.Ineachoftheperiods,thereisapercentage (totwodecimalplaces)bywhichaninvestmentwouldhavegrownorshrunk,and thefund’spositionorrankrelativetootherfunds.

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

• INITIAL COSTS havenotbeentakenintoaccountandcanhaveaneffectonreturns.

• ANNUAL MANAGEMENT FEES areincludedinthereturns.

• DIV IDENDS havebeenreinvestedontheex-dividenddate(thedayaftertheyare declared)atthepriceatwhichtheunitsaresoldtoyou.

• INDICES normallysuppliedasbenchmarksreflectpercentagechangesandtakeinto accountdividendsandinterest.Inthecaseofnewindices,ahistoryisnotyetavailable.

•The PLEXCROWN RATING indicateshowafundhasfaredovertimecomparedwiththe otherfundsinitssubcategoryonarisk-adjustedreturnbasis.Turnto page 55 formore informationabouttheratings.

WHAT DOES THE * INDICATE?

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

HOW FUNDS ARE CLASSIFIED

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

ThefirsttieroftheclassificationsystemcategorisesfundsasSouthAfrican,global, worldwideorregional.

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

Global funds mustinvestaminimumof80percentoftheirassetsoutsideSA.

Worldwide funds donothaveanyrestrictionsonwheretheymayinvestbutthey typicallyallocatebetweenSouthAfricanandforeignmarketsinlinewiththemanager’s outlookforlocalversusforeignassets.

Regional funds mustinvestatleast80percentoftheirassetsinaspecific geographicregion,suchasAsiaorAfrica,excludingSouthAfrica,oracountrysuch astheUnitedStates.Regionalfundsmayinvestamaximumof20percentoftheir assetsinSouthAfrica.

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

Equity funds mustinvestatleast80percentofthenetassetvalueofafund.

Interest-bearing funds investinbonds,fixedinterestandmoney-market instruments.

Real estate funds mustinvestatleast80percentoftheirassetsinsharesinthe realestatesectoroftheJSEorasimilarsectorofaninternationalstockexchange.Afund mayinvestamaximumof10percentinpropertysharesthatarenotclassifiedinthe realestatesector.

Multi-asset funds saveyouthetroubleofdecidinghowtoallocateyourassets betweenshares,bonds,propertyorcash.Themanagersofmulti-assetfundsdecide, foryou,whichassetclassestheybelievewillproducethebestreturnsandthen,within thoseclasses,whichsecuritieswillperformthebest.Somefundshaveafixed allocationtothedifferentassetclasseswhereasotherschangethemixofasset classesinlinewiththeirviewsofhowthedifferentclassesorsecuritieswillperform.

MONEY MARKET YIELDS

AbsaMoneyMarket4.80A

ACIMoneyMarket4.36A1

AfenaMoneyMarketPrescient3.69A1

AllanGrayMoneyMarket4.81A

AshburtonMoneyMarket4.25B1

BCIMoneyMarket5.29A

CadizMoneyMarket4.59A

CannonMoneyMarketH45.28A

CartesianBCIMoneyMarket0.00A

CitadelSAMoneyMarketH44.51B1

CoronationMoneyMarket4.09A

DiscoveryMoneyMarket4.12A

FairtreeMoneyMarketPrescient3.91A1

GlacierMoneyMarket4.12A

GranateSCIMoneyMarket4.33B

GryphonMoneyMarket4.37A

HollardPrimeMoneyMarket4.26B

NinetyOneMoneyMarket4.14R

MarriottMoneyMarket4.13A

MomentumMoneyMarket4.63A

NedgroupInvestmentsMoneyMarket4.06R

SelectBCIEquity(A)16.691422.8639-0.39671.30733

PrescientCoreEquity(A2)21.9276-2.0372-0.4368

MatrixNCISEquity(C)20.3599-5.80106-0.4769

SentioSCIHikmaShariahGeneralEquity(B1)17.26139-2.7482-0.4970

SatrixQualityIndex(A1)14.18159-10.11143-0.52711.5769

LynxPrimeCIOpportunitiesFoF(A1)19.901110.7154-0.59721.8662

MomentumValueEquity(A)20.33100-14.47159-0.6073

PSGWealthCreatorFoF(A)26.8122-0.4460-0.62742.4946

MomentumEquity(A)18.16134-4.8696-0.68751.68663

1nvestIndex(R)21.3183-2.6881-0.78761.7264

SatrixRafi40ETF(A)23.2553-8.59133-0.78774.1525

OldMutualRafi40Index(A)23.8942-8.07127-0.79783.8230

SatrixMomentumIndex(A1)19.02124-7.13119-0.84792.6944

SatrixQualitySouthAfricaETF11.40168-12.08153-0.8680

TrésorSanlamCIEquity(B1)25.81271.4547-0.8781

SatrixRafi40Index(A1)23.7047-8.42129-0.94823.7931

CoronationSAEquity(A)21.13852.0444-1.01831.61683

BCIBestBlendSpecialistEquity(C)20.7992-4.6494-1.02841.10753

SygniaSwixIndex(A)22.7560-2.7783-1.08852.0858

SygniaEquity(A)24.4437-0.9766-1.09860.95773

HollardPrimeEquity(B)16.66144-3.2387-1.36871.36713

H4FocusedWealth(A1)11.85167-7.55125-1.3788-0.20903

N-e-FGBCIEquity(A)23.44500.0957-1.42892.30533

DalebrookEquityPrescient(A2)12.94161-6.81114-1.4290-0.46912

Thethirdtieroftheclassificationsystemcategorisesfundsaccordingtotheirmain investmentfocus.

WHAT DOES THE ‘R’ OR ‘A’ MEAN?

Theseindicatetheannualmanagementfeesaunittrustcompanycanchargeanddepend partlyontheclassofunitsyoubuy.

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

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

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

Thedifferentclassesofasinglefundaremanagedcollectivelyandthedifference inperformancebetweenthemispurelyaresultofthedifferenceinmanagementfees.

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

Performance figures supplied by ProfileData

Telephone:0117285510

Email:unittrust@profile.co.za

Website:www.fundsdata.co.za

Disclaimer:Althoughallreasonableeffortshavebeenmadetopublishthecorrect data,neitherProfileDatanor Personal Finance canguaranteetheaccuracyofthe informationontheunittrustfundperformancepages.

PersonalTrustSAEquity(A)21.8877-2.9185-1.49911.32723

DenkerSCIEquity(A)15.66150-6.41111-1.5992-0.61922 IntegralBCIEquity(A)24.26405.6622-1.7593

LauriumEquityPrescient(A1)23.8743-7.11118-1.77940.25853

DotportBCIEquity(B)19.35118-5.0098-1.8395

AbsaSmartAlphaEquity(A)19.35119-2.0573-1.89960.28843

AllanGrayEquity(A)19.80112-5.59105-2.00972.93403

RECMEquity(B)16.21149-6.45112-2.10983.52333

OldMutualAlbarakaEquity(A)18.62127-6.31110-2.25991.72653

CaleoBCIEquity(A)27.12183.8132-2.30100

MarriottDividendGrowth(R)5.05177-9.12135-2.331010.62822

CounterpointSCIDividendEquity(A1)6.04175-16.01166-2.371020.70802

MelvilleDouglasStanlibHighAlpha(A)13.55160-8.57132-2.611030.73792

AbsaSACoreEquity(A)20.07104-6.49113-2.83104

OasisGeneralEquity(D)10.14172-7.34123-2.931050.76782

AnchorBCIEquity(A)23.5649-5.54104-3.06106-0.61933

CadizBCIEquity(A)12.30165-10.60145-3.091072.09573

AshburtonEquity(A1)19.25121-2.4877-3.091081.2974

MaestroEquityPrescient(A)20.221022.9438-3.14109-1.29992

DenkerSCISAEquity(B1)17.87136-9.58138-3.21110

OldMutualMMEquityFoF(A)23.0158-4.5193-3.271110.28833

OldMutualCappedSwixIndex(A)22.4266-6.03109-3.37112

VisioBCIGeneralEquity(A)21.6380-2.7884-3.42113-0.69953

BateleurEquityPrescient(B4)19.91110-5.3299-3.521140.17862

AllanGraySAEquity(A)24.4636-9.67139-3.801151.36703

BenguelaEquityACI(A1)17.07140-7.01117-4.14116

HuysamerEquityPrescient(A)16.31147-4.8595-4.14117-2.231052

PrudentialSAEquity(F)20.9688-10.96147-4.24118

SanlamM-MEquityFoF(A2)20.15103-5.45102-4.40119-1.11972

OldMutualManagedAlphaEquity(A)24.4338-3.4189-4.61120-0.82962

VisioBCISAEquity(B)823.1555-5.97107-4.61121

FNBGrowth(A)15.51151-9.03134-4.62122-1.13982

ClucasGrayEquityPrescient(A1)12.45164-16.73167-4.641230.04883

IPHighConvEquity(A)25.4530-2.6079-4.87124-1.511022

ElementEarthEquitySCI(A)8.34173-16.98169-4.961251.87613

AfenaEquityPrescient(A1)14.74155-14.57160-5.00126-0.61942

NedgroupInv.Rainmaker(A)20.07105-8.34128-5.22127-1.351002

StanlibSAEquity(A)18.60128-9.74140-5.39128-2.781102

MergenceEquityPrime(A1)18.28133-10.76146-5.48129-1.641031

OldMutualInvestors(A)19.62114-13.73158-5.62130-2.311072

PerpetuaSCIEquity(A)20.8989-12.32155-6.04131-1.401012

AmpersandSCIEquity(B)15.19152-13.31156-6.19132-1.801042

ExcelsiaEquityACI(A1)31.248-7.20122-6.22133

CoreSharesSciBetaMFIndex(A)19.99108-12.09154-6.48134

NorthstarSCIEquity(A)15.04153-13.36157-6.53135

FoordEquity(A)16.29148-6.82115-6.62136-2.55109

NedgroupInv.PrivateWealthEquity(A)16.63145-11.83152-6.68137-2.501081

1nvestSectorNeutralValueIndexTracker(A)23.6148-15.88165-6.74138

MaziAssetManagementPrimeEquity(A)18.48131-11.18148-7.12139-2.311062

FirstAvenueSanlamCIEquity(B1)14.24158-11.20149-7.81140-3.721141

HarvardHouseBCIGeneralEquity(A)16.67143-3.2788-7.83141-3.151131

NedgroupInv.Value(A)11.02169-14.69161-7.87142-3.021111

IntegrityEquityPrescient(A1)17.52137-15.40162-7.98143

PSGEquity(A)24.8834-15.47164-8.54144-0.1189

FirstAveSCIFocusedQualEquity(A)14.83154-9.41136-8.75145-4.061151

CoreSharesSADividendAristocrats2.84179-21.10174-8.99146-3.13112

CannonEquityH4(A)10.93170-16.73168-9.44147-5.221171

BridgeEquityIncomeGrowth(A)4.15178-22.50175-10.36148-4.701161

SteynCapitalEquityPrescient(A1)14.70156-18.40170-12.41149

NedgroupInv.Growth(A)-0.58181-31.04176-12.87150-6.511181

SelectBCIBlendedEquityStrategy(A)37.56311.367

FairtreeSelectEquityPrescient(A1)52.3229.1610

BCIShariahEquity(C)19.371176.2118

AbsaTop40Index(A)24.48355.2624

FoundationBCIEquity(A)35.7341.7445

SygniaItrixSwix40ETF22.26701.2051

AeonActiveEquityPrescient(A1)25.7129-0.4961

PrimeSouthAfricanEquity(A)21.2684-2.4375

X-ChequerBCIEquity(B)27.1517-2.4576

AllWeatherBCIEquity(B2)22.1473-4.8997

MomentumCappedSwixIndex(A)22.6962-5.33100

PrescientCoreCappedEquity(A2)22.6364-5.34101

SatrixSmartcoreIndex(A1)20.25101-5.52103

SatrixCappedSwixALSI(A1)22.3767-5.98108

Global&LocalSNNEquity(A)20.5894-7.13120

LimaMbeuSanlamCIEquity(A1)19.40116-7.20121

SatrixMomentumETF18.30132-7.46124

AbsaDividendPlusIndex(A)31.089-7.89126

SentioSanlamCIGeneralEquity(B2)20.01107-9.80141

OldMutualEquity(A)19.16123-10.00142

CoreSharesScientificBetaMultiFactorETF19.95109-11.69150

Global&LocalSNNLowVolatilityEquity(A)12.86162-11.77151

SatrixMidCapIndex(A1)16.42146-15.41163

AmityBCIEquityIncome(A)-0.08180-19.08171

*NewFundsValueEquityETF22.2472-19.59172

NewFundsLowVolatilityEquityETF12.57163-20.11173

MianzoEquityACI(A1)24.2639

PrescientCoreAllShareEquity(A2)23.8444

NgwediEquitySNN(R3)23.7945

NgewdiActiveEquitySNN(I1)22.6963

DifferentialNeuralEquityPrescient(A1)21.8678

FTSE/JSEAllShareindex(J203)24.012.012.394.75

INDUSTRIAL FUNDS

SanlamIMIndustrial(A)15.56114.4111.3512.991

MomentumTop40Index(A)24.5985.1572.9274.646

SatrixTop40Index(A1)24.43114.68102.8584.498

OldMutualTop40Index(A)24.41125.0492.8394.3910

Satrix40(A)22.75143.40122.78104.617

SygniaTop40Index(A)25.5954.54112.61114.429

NewFundsEquityMomentum21.5917-3.18182.41124.3311

1nvestSwix40(A)22.37161.37130.37133.2113

SatrixSwixTop40Index(A1)22.40151.2615-0.02142.6414

SatrixSwixTop40(A)20.5920-0.5217-0.43152.4215

CitadelSA20/20EquityH4(B1)21.48180.9316-0.4416

SatrixEquallyWeightedTop40Index(A1)29.2321.3414-2.4117-0.5216

PrescientEquity(A1)21.2419-6.5120-3.7918-1.0917

IntegreLargeCap(A1)17.7022-12.6422-4.1119-1.51182

NewFundsS&PGiviSATop5020.5521-6.3419-4.9120-3.0820

SaffronSCILargeCap(A)26.943-10.2521-4.9521-1.61193

SygniaItrixTop40ETF24.46105.068

FTSE/JSEALSI40index(J200)24.965.593.575.26

MID AND SMALL CAP FUNDS

CoronationSmallerCompanies(R)27.722-5.661-3.1611.4215

AshburtonMidCapETF16.337-15.627-4.9420.212 MomentumSmallMid-Cap(A)29.221-7.632-6.183-1.3634 NinetyOneEmergingCompanies(A)19.073-19.119-8.214-7.797

NedgroupInv.Entrepreneur(A)12.128-12.935-8.255-3.0343 OldMutualMid&SmallCap(A)17.544-13.116-9.506-5.9353 SanlamIMSmallCap(A)16.645-10.743-10.107-6.5762 AlphaPrimeSmall&MidCap(A)9.269-11.204-12.298-7.8981 MomentumMidandSmallCapIndex(A)16.576-18.338

FTSE/JSEMidCapindex(J201)16.92-14.96-4.280.87

RESOURCE FUNDS

NinetyOneCommodity(A)49.63439.22127.86124.772 SanlamIMResources(A)74.22138.32224.00220.9933 NedgroupInv.Mining&Resource(A)69.88333.56320.28320.0442 CoronationResources(P)70.15232.34419.94424.7714 SatrixResi(A)46.71525.89618.00514.616 MomentumResources(A)36.92628.22512.97615.1051 FTSE/JSEResi10index(J210)48.6627.4019.7614.90

FINANCIAL FUNDS

NedgroupInv.Financials(A)9.934-26.861-7.701-2.241 MomentumFinancials(A)13.522-31.784-8.512-3.842 SatrixFini(A)7.235-34.205-9.773-5.283 SanlamIMFinancial(A)11.153-28.543-9.784-5.334 CoronationFinancial(A)13.941-27.642-10.185-5.935

FTSE/JSEFinancialindex(J580)11.02-30.91-10.56-5.38

UNCLASSIFIED FUNDS

*BridgeDiversifiedPreferenceShare(A)14.27-18.550.803.68 KrugerrandCustodialCertificatesETF10.2039.8021.2114.67

SOUTH AFRICAN MULTI-ASSET

FLEXIBLE FUNDS

GryphonFlexible(B)9.344219.86211.65110.0125

LongBeachFlexiblePrescient(A1)33.20121.5919.79212.7815

BlueAlphaBCIAllSeasons(A)19.291318.9439.0737.7845

NoblePPStanlibFlexible(A)3.12515.02157.1148.0734

TruffleSCIFlexible(A)11.24367.60116.0355.3694

BateleurFlexiblePrescient(A1)19.381215.3446.0166.1265

PrescientOptimisedIncome(B1)1.93545.14145.837

36OneBCIFlexibleOpportunity(A)15.522513.1255.5885.7384

MaitlandBCIFlexibleFoF(A)12.66334.67164.4495.9874

CSBCIFlexibleFoF(B)19.39118.4294.21104.77114

AutusPrimeOpportunity(A)15.692411.2474.04112.96183

4DBCIFlexible(A)15.2626-1.77354.01121.63253

TruffleSCIFlexibleIncome(A)4.7947-7.16423.9313

CorionPrimeFlexible(A1)19.7189.1883.3414

CentaurBCIFlexible(A)18.55162.96223.29156.7054

JBLSanlamCIFlexibleFoF(B1)14.90282.65252.5516

CitadelSAProtectedEquityH4(B1)11.4035-8.31442.44174.82104

*AdviceworxOldMutualInfl.+5-7%FoF(B1)15.20272.85232.36184.06143

NoblePPStanlibAllWeatherFoF(A)4.96460.42302.21193.19172

TrueNorthIPFlexibleEquity(A)14.07294.07192.21202.52223

LauriumFlexiblePrescient(A1)18.6914-0.20312.10214.27133

VisioBCIActinio(A)17.09191.16282.09221.27263

TriathlonIP(D)4.1648-4.34392.04231.06292

DestinyBCIMultiAssetFoF(A)16.16224.26181.80242.94193

N-e-FGBCIFlexible(A)26.9524.30171.63253.82154

CinnabarSCIFlexibleFoF(A)17.23180.63290.73263.54163

OldMutualFlexible(A)20.136-3.84370.46272.92203

DotportBCIFlexibleFoF(A)13.3331-4.69400.13282.27232

*IPFlex.FoF(A1)12.76321.71270.10291.91242

AshburtonGrowth(A)26.4831.9426-0.26302.67213

ElementFlexibleSCI(A)6.9845-8.8546-1.05314.48123

AmplifySCIFlexibleEquity(B4)19.679-6.7741-1.78320.57313

AshburtonDefensive(A)7.1644-11.7349-2.70330.92302

RCIBCIFlexible(A)20.995-0.7134-3.8034-1.93322

*HuysamerOpportunityPrescient(A1)9.7539-4.1638-4.8135-2.29341

CohesiveCapitalFlexiblePrescient(A1)13.7230-12.6950-4.82361.23272

PSGFlexible(A)21.634-14.9551-5.61371.1728

MarriottPropertyEquity(R)-0.7159-31.0057-9.7538-4.18361

StanlibM-MFlexibleProperty(A)2.0853-22.2055-9.7639-3.88351

ClucasGrayFutureTitansPrescient(A1)0.1058-19.7454-9.9140-6.93371

MosaicFlexiblePrescient(A1)8.3743-8.7045-11.3041

FlagshipIPFlexibleValue(A1)15.6923-23.1456-12.0042-2.07332

PlexusWealthBCIFlexiblePropertyIncome(A)0.4357-44.1458-24.5043

GlacierAIFlexibleFoF(B)16.262112.406

WestbrookPrimeOpportunitiesFlexible(E)3.84497.9910

InvestecSpecialistInv.BCIProtectedEquity(A)12.42346.7912

MethodicalBCIEquityPreserver(B1)9.71406.2413

SalvoPrimeDynamicFlexible(A1)18.56153.5120

TRGFlexiblePrescientFoF(A1)20.1373.1121

H4CPI+6%(B1)16.92202.7424

NewFundsVol.ManagedDefensiveEquityETF1.0855-0.4132

CelerityCiGrowth(A)19.5910-0.5333

Global&LocalSNNBalancedFoF(A)9.5541-2.7836

KornerBCIFlexible(A)10.1338-7.9243

BaobabSCIFlexible(B1)10.1337-10.0547

NewFundsVol.ManagedModerateEquityETF0.6756-10.1348

NewFundsVol.ManagedHighGrowthEquityETF2.5352-17.1852

MarriottEssentialIncome(C)3.3050-18.2153

GranateSCIFlexible(A)17.9117

HIGH EQUITY FUNDS

*GryphonPrudential(B)9.0319019.34311.79110.0215

FairtreeBalancedPrescient(A1)31.73117.4649.752

*RezcoManagedPlus(A)9.1018915.4558.2735.71175

*LongBeachManagedPrescient(A1)28.58314.8588.0149.8125

*RezcoValueTrend(A)9.4918715.3177.9255.78155

*Fin.FitnessBalIPFoF(A)12.111697.64187.756

*NinetyOneOpportunity(A)11.011789.84126.7776.866

*NinetyOneManaged(A)4.512056.30305.9087.085

*H4Diversified(B1)14.691274.11595.7996.5085

*RowanCapitalBCIBalancedFoF(A)13.351556.79265.6110

*NedgroupInv.Balanced(A)11.161776.93245.35114.88304

*WarwickBCIBalanced(B)14.991156.32295.32123.66843

SygniaSkeletonBalanced70(A)17.58485.66345.30135.95135

*NFBCiManaged(A)14.191414.22565.28146.7675

*CounterpointSCIBalancedPlus(A1)10.911801.231165.19154.83344

*InstitBCIManagedFoF(A)17.84436.95235.1716

*SasfinBCIPrudential(A1)10.141844.15585.07174.94274

AylettBalancedPrescient(A1)21.3092.85795.05187.5845

*MultiAssetIPBalancedPlus(B1)17.18546.47284.93195.53194

*IPActiveBeta(A)14.031448.92144.88205.40214

AFInvestmentsAggressivePassive(A1)18.16385.91334.8521

*PrescientLivingPlanet(A1)17.81446.75274.76225.60185

*FlagshipIPBalanced(A)20.981015.4364.63233.73803

*MethodicalBCIBalanced(A)19.71187.28214.52244.59454

*CSBCIPrudentialFoF(B)15.491055.49394.50254.83334

*SygniaCPI+6%(A)18.00415.01434.40264.8831

*PrescientWealthBalancedFoF(A1)18.51337.80164.39276.02125

*WealthAssociatesBCIBalancedFoF18.70291.981024.3328

*SanlamIMManagedModerateAgg.FoF(A1)16.67703.39694.31295.52205

*AutusPrimeBalanced(A)16.597213.7794.29303.59893

*FGIPNeptuneGrowthFoF(A)18.79284.09604.25315.39224

*CeltisBCIManagedFoF(A)16.92639.54134.18325.22244

*PrescientBalanced(A2)16.39782.40914.10335.80144

*OlympiadBCIManagedFoF(A)0.702102.57874.05344.44492

*StanlibBalanced(A)16.52744.66474.03353.88723

*ElementIslamicBalancedSCI(A)7.171992.41904.00368.1134

*NorthstarSCIManaged(A1)12.221683.26733.99374.77404

*SanlamM-MModerateFoF(A1)12.411672.79833.95384.99254

*SanlamIMGlobalManagedAgg.FoF(A1)18.80273.30713.89395.32234

MelvilleDouglasStanlibBalanced(A)13.791492.001003.88404.81364

*Point3BCIBalancedFoF(A)18.47355.16413.8841

*WarwickBCIBalancedFoF(C)14.501327.53193.82423.60883

OasisCrescentBalancedHighEquityFoF(D)6.422025.96323.73434.89293

*SouthernCharterBCIGrowthFoF(A)20.35157.76173.65444.79384

*CSBCIAggressivePrudentialFoF(A)19.12237.95153.64454.21613

*4DBCIModerateFoF(A)12.881614.82453.59463.94693

*NedgroupInv.Managed(A)14.901213.57653.5447

DiscoveryAgg.Dyn.AssetOptimiserFoF(A)15.95863.68633.4748

*SBROBCIManagedFoF18.93264.75463.4449

*RoxburghCiBalancedPlusFoF(A)20.89115.10423.4150

*CitadelBalancedH4(B1)10.701821.981013.36514.67433

*SageSCILongTermSolutionFoF(A1)19.03253.27723.31524.80374

KagisoIslamicBalanced(A)15.91892.31933.31536.26114

*IPPrudentialEquity(A)14.531305.56363.2854

*RedOakBCIBalanced(A)14.311383.59643.2655

DenkerSCIBalanced(A)12.451660.651223.2156

SentioSCIHikmaShariahBalanced(B1)10.551832.05973.1957

NedgroupInvestmentsCoreDiversified(B)17.74462.68863.16584.79394

*BovestBCIManagedFoF(A)15.84926.11313.11594.54473

SatrixBalancedIndex(A1)15.68101-1.071563.07604.9328

*FoordBalanced(A)14.261396.91253.04614.3851

*ADBBCIFlexiblePrudentialFoF(A)19.21214.85443.03624.34524

*PersonalTrustManaged(A)14.591294.50512.90634.88323

*AssetMixCiBalanced(A)13.961463.19742.8664

*AdviceworxOldMutualInfl.+4-5%FoF(B1)14.011453.56662.85654.68423

*NoblePPStanlibWealthCreatorFoF(A)4.462062.56892.85664.29582

*PPSBalancedFoF(A)14.951170.841212.82673.9668

SageSCILongTermGrowthSolution7FoF(A2)22.1864.38542.82683.79783

*MarriottBalancedFoF(A)7.67197-0.211442.75694.09642

*ASForumBCIAggressiveFoF(A)20.18174.58492.74703.35973

*SanlamPrivateWealthBalanced11.331751.531102.74713.93703

*SimplisitiBCIManagedProtectorFoF(A)18.02392.93782.74724.09653

*InvesthouseCiBalanced(A)9.191885.32402.7373

SanlamM-MBalancedFoF(A2)17.63472.20962.73744.33553

*StanlibM-MBalanced(A)17.02601.651082.71754.33544

*KagisoBalanced(A)15.28108-2.651732.70766.3594

*CentaurBCIBalanced(A)21.6974.41532.67775.77164

*OptimumBCIManagedGrowth(A)17.52500.551252.65783.85753

AFInvestmentsPerformerManaged(A)16.43772.79822.61794.82354

*DiscoveryBalanced(A)15.86900.511272.61804.17633

*CoronationBalancedPlus(A)18.01403.72622.61814.55464

*PersonalTrustPrudentFoF(A)15.70991.231152.58824.73414

*SanlamM-MModerateAggressiveFoF(A1)16.36790.901202.51834.34534

*HollardPrimeStrategicAssertiveFoF(B)10.931790.471282.49844.62443

*OasisBalanced(D)7.082000.411322.47852.931062

CordatusBalancedPrescient(A1)14.941183.37702.4686

*PBiBCIBalancedFoF14.821241.531112.4387

*PFPSCiBalancedFoF(A)13.551531.441132.37884.05663

MomentumTarget6FoF(A)15.7097-1.421602.3589

*SeedBalanced(A1)23.7752.39922.25903.65853

*TrésorSanlamCIBalanced(B1)17.15563.15762.22912.761102

*27fourShariahBalancedPres.FoF(A1)11.481742.26952.21923.90712

*DetonPrimeManagedFoF(A)8.051952.78842.19933.81773

27fourAssetSelectPrescientFoF(A1)13.74150-0.041382.16943.71823

*MooreCiGrowthFoF(A)14.861233.16752.15953.64873

*CinnabarSCIBalancedPlusFoF(A)14.511311.971032.12963.64862

*PrivateClientBCIHighEquity(B)15.171121.851062.0897

GravitonSanlamCIBalanced(A1)15.551030.421302.07983.84763

*AbsaPrudentialFoF(A)12.041700.241352.04994.00672

*StanlibM-MShari'ahBalancedFoF(A)13.941481.171171.991004.54483

ObsidianSanlamCIBalanced(B1)17.5249-0.561481.971014.32563

*ClucasGrayEquilibriumPrescient(A1)13.71151-5.131931.951024.44503

*AshburtonM-MPrudentialFlexible(A1)13.30156-0.241451.841033.5691

*SignatureBCIBalancedFoF(A)14.391350.951191.81104

MomentumTarget7FoF(A)15.8393-2.281691.80105

*RebalanceBCIInflationPlus5(A)18.32373.40681.801063.131013

CoreSharesOUTmoderateIndex(O)16.9164-0.601491.77107

*JBLSanlamCIManagedFoF(B1)15.001140.241361.77108

*AFInvestmentsBalancedFoF(A)15.92882.26941.751094.32573

*OldMutualCoreBalanced(A)16.5873-0.451461.721104.29593

*SelectBCIBalanced(A)16.8166-1.481621.671113.40953

*AnalyticsCiBalFoF(A)12.601651.641091.661123.66832

*AllanGrayTax-FreeBalanced(A)14.361360.531261.66113

*PWSBCIModerateFoF(A)15.601022.75851.62114

FNBGrowthFoF(B1)16.27811.931051.60115

*AfFinityCiGrowth(A)11.76173-1.671661.55116

*AshburtonBalanced(A)14.251400.441291.471173.52942

*APSCiManagedGrowth(A)18.64302.84811.471183.39963

*OldMutualMMBalancedFoF(A)16.24841.371141.471194.18623

*KanaanBCIBalancedFoF(A)2.132090.341341.441201.381221

*BCIPrudentialFoF-3B118.60313.50671.431213.55923

*OldMutualBalanced(A)16.6571-1.141571.431223.57903

AFInvestmentsRealReturnFocus(A)13.00160-3.251791.411233.111022

*WealthworksPrimeManagedFoF(A)13.591521.711071.351243.76792

*AllanGrayBalanced(A)14.81125-0.041401.301254.96263

*BrenthurstBCIBalancedFoF(A)8.09194-1.651651.27126

*PrudentialBalanced(A)17.1655-2.241681.261273.87733

*StanlibM-MMedium-HighEquityFoF(A)15.18111-0.481471.231283.22992

AnchorBCIDiversifiedGrowth(A)16.7568-0.981541.22129

*AssetbaseCPI+6%PrescientFoF(A1)15.51104-1.541631.21130

*FALBCIBalanced(A)16.45760.621231.13131

*OldMutualMMAggressiveBalFoF(A)17.14571.061181.061323.86743

*AnchorBCIManaged(A)20.48142.02990.991332.921072

*NewFundsMAPPSGrowth18.47341.441120.941343.19100

*AbsaMMGrowthFoF(A)16.27800.601240.921354.24603

OctagonSanlamCIGrowthFoF(B1)15.07113-1.361580.81136

PPSBalancedIndexTracker(A)16.0085-1.561640.80137

*DotportBCIPrudentialFoF(A)12.00171-3.641810.751382.601122

*NedgroupInv.CoreAccelerated(B)19.0424-1.451610.74139

*PSGWealthModerateFoF(A)15.8491-0.741510.731403.2998

*AmplifySanlamCIBalanced(A1)21.508-3.141760.71141

*AmityBCIManagedSelect(A)20.2816-2.491700.69142

*SanlamIMBalanced(A)15.8394-3.171780.631433.53933

*SelectManagerBCIBalancedFoF(A)15.69100-0.941530.551442.961052

*SkyblueBCICumulusModerateFoF(A)17.25522.85800.471452.771092

*StanlibM-MHighEquityFoF(A)16.26820.381330.471462.851082

*MedianBCIBalancedFoF(A)15.9487-1.421590.42147

MomentumFocus6FoF(A)17.1358-2.871750.24148

*AureusNobilisBCIManaged(A)15.7098-2.781740.22149

GraySwanSCIAggressiveFoF(A)15.20110-2.551720.17150

*QuattroCiGrowthFoF(A)12.77162-0.151430.161512.741112

*PrescientAbsoluteBalanced(A1)14.47133-5.621940.131521.591181

*ElementBalancedSCI(A)8.04196-4.95192-0.081536.31103

*CorionPrimeGrowth(A)14.33137-1.95167-0.101542.991042

*SharenetBCIBalanced(A)14.90122-0.89152-0.301551.031241

*RECMBalanced(A)9.61186-3.55180-0.361563.71812

*CadizBCIBalanced(A)13.07159-3.70183-0.541573.011032

*MomentumFocus7FoF(A)17.4251-3.71184-0.581582.401132

PerpetuaSCIBalanced(A)14.19142-4.29189-0.591591.721161

*SAAssetManBCIManaged(A)12.621643.8061-0.601601.751151

*APIBCIManagedFoF(A)14.93120-4.00187-0.601612.251142

*1nvestHighEquityPassiveBalancedFoF(A)13.23157-4.40190-0.62162

*BCIBestBlendBalanced(C)18.0042-3.95186-0.831631.611172

*CapitaBCIBalanced(A)19.1222-4.74191-1.171641.471212

*AbsaManaged(A)14.05143-7.32197-1.381651.571191

*EdgeBCIManagedAggressiveFund15.8395-3.64182-1.71166

*CaleoBCIBalancedFoF(A)18.5932-3.88185-1.84167

PerspectiveBalancedPrescient(A1)11.20176-6.55196-1.98168

PrimeShirazPrudentialAggressiveFoF(A)15.41107-6.07195-2.051691.281231

ConsiliumBCIFlexible(A)14.621284.2157-3.56170-0.821261

*ImalivestSCIBalanced(A)7.52198-16.08200-4.10171-3.341291

*AmpersandSCICPIPlus6FoF(A)8.32193-11.04199-4.23172-0.391251

*PSGBalanced(A)19.6319-9.94198-4.351731.50120

*PlexusWealthBCIBalanced(A)5.37203-17.41202-6.38174-1.411271

*BridgeBalanced(A)3.47207-16.80201-7.52175-3.211281

*BridgeManagedGrowth(A)6.75201-21.81203-11.39176-4.951301

IPBalanced(A)31.00224.471

*HighStreetHighEquityPrescient(A1)24.36422.412

PPSManaged(A2)14.4513412.2110

*InnovationBCIBalancedFoF(A)8.3719210.6411

KrugerCiBalanced(A)16.90657.3420

AutusPrimeDiversified(A)10.751817.2322

*StarPrimeBalanced(C)5.362045.6635

*RSABCIBalanced(A)20.57135.5537

*ImaliBCIPassiveBalanced(A)16.92625.4938

*TRGBalancedPrescientFoF(A1)16.51754.6548

*ChromeCiGrowth(A)14.801264.5650

NFBCiManagedGrowthFoF(A)11.971724.4552

SynergyCiGrowthFoF(A)14.961164.2455

*BlueAlphaBCIBalanced(C)12.721633.0377

*10XHighEquityIndex(A)16.78672.5688

*WellsFaberBalancedRECMFoF(A)15.73962.0398

*CelerityCiBalanced(A)15.421061.94104

*AbsaM-MPassiveGrowth(A)16.26830.41131

*MatrixNCISBalanced(A2)13.941470.23137

*SequoiaBCIManagedGrowthFoF(A)14.93119-0.04139

CoreSharesWealthAccumulation(A)17.7945-0.09141

AbsaM-MCoreGrowth(C)16.7269-0.13142

*PMKManagedPrescientFoF(A3)18.4036-0.72150

NMRQLSanlamCIBalanced(A)10.10185-1.03155

SentioSanlamCIBalanced(B2)13.48154-2.55171

*StelburgBCIBalancedFoF(A)17.1259-3.17177

PSGM-MGrowthFoF(D)17.0161-4.24188

*FairtreeInvestStrategicFactorPrescient(A1)20.7012

*VisioBCIBalanced(A)19.5520

*GranateSCIBalanced(B)17.2053

*TantalumBCIBalanced(A)15.27109

*LynxPrimeBalancedFoF(A)13.13158

NgwediGlobalBalancedSNN(I1)8.93191

DalebrookMulti-AssetIncomePrescient(A1)3.35208

INCOME FUNDS

*Mi-PlanIPEnhancedIncome(A1)5.94257.9789.6819.7125

SasfinBCIFlexibleIncome(A)4.67556.20229.4129.7614

MarriottCoreIncome(A)9.1739.4939.2438.6274

MarriottHighIncomeFoF(A)8.8059.6219.1548.3794

GranateSCIMultiIncome(B)6.11188.3968.755

BCIIncomePlus(C)4.48605.44398.6768.9755

FairtreeFlexibleIncomePlusPrescient(A1)3.15855.60348.5779.5535

*SaffronSCIOpportunityIncome(A)4.46616.34208.5289.484

*MomentumIncomePlus(A)3.52836.79178.4498.7865

*NorthstarSCIIncome(A1)8.3078.3878.39107.69193

SharenetBCIIncomePlus(A)3.69786.82168.33118.5285

AbsaFlexibleIncome(A1)8.6067.32118.2412

MarriottIncome(R)4.96457.78108.18137.92155

*AmplifySCIStrategicIncome(A1)6.67137.14138.03148.03114

AbsaTacticalIncome(A)5.69308.6357.9015

SaffronSCIActiveBond(A)9.0747.03147.89167.7618

*CadizBCIEnhancedIncome(C)2.59925.87297.88177.65204

AFInvestmentsEnhancedIncome(A)4.85495.33447.83187.79164

*OasisCrescentIncome(A)2.74907.8397.73197.16373

*NedgroupInv.FlexibleIncome(A)5.95245.54377.60207.9813

*CounterpointSCIEnhancedIncome(A1)2.81894.67627.41217.93144

*AutusPrimeIncomePlus(A)3.88746.37197.41227.99124

*NinetyOneDiversifiedIncome(A)3.92735.55367.38237.6122

*CadizBCIAbsoluteYield(A)2.10953.98777.37247.78174

*SelectManagerBCIIncomeFoF(C)5.36356.09247.2925

BCIBestBlendFlexibleIncome(C)4.45624.94567.28267.65213

*PortfolioMetrixBCIIncome(A)4.94464.06767.19278.06104

*PersonalTrustIncome(A)4.60585.89287.10287.45283

*DiscoveryDiversifiedIncome(A)3.67795.43417.04297.28343

TrésorSanlamCIIncome(B1)7.30115.18487.01306.99412

*NovareCapitalPreserverFoF(A1)5.63325.45387.01317.10393

*StanlibM-MAbsoluteIncome(A)4.36654.56656.98327.37323

*MomentumDiversifiedIncome(B1)4.80525.39426.95337.43303

*SimplisitiBCIIncomePlusFoF(A)4.25674.54666.89347.05403

GravitonSanlamCIFlexibleIncome(A1)5.16404.92586.88357.55233

AnchorBCIFlexibleIncome(A)5.81275.36436.88367.54263

*PrescientIncomeProvider(A1)4.85484.29736.84377.54243

*RowanCapitalBCIIncomeFoF(A)3.95724.38716.8338

*FGIPJupiterIncomeFoF(A)5.55334.69616.80397.43313

AshburtonStable(A)4.42644.51676.79407.18363

*HollardPrimeDynamicIncome(B)4.76544.60636.77417.53273

MomentumOptimalYield(A)0.021004.14756.76426.23502

*OldMutualMMEnhancedIncomeFoF(A)4.91474.74606.73437.11383

*VisioBCIUnconstrainedFixedInterest(A)6.08204.39706.7244

*EngelbergIPIncome(A)6.02225.14516.7245

*SanlamIMActiveIncome(A1)5.03435.15506.69467.33333

SelectBCIFixedIncome(A)7.58105.74316.66476.89432

*PSGDiversifiedIncome(A)7.7485.92266.63487.4329

*CoronationStrategicIncome(A)5.81263.48806.61497.54253

*FNBIncomeFoF(B1)5.80284.32726.5950

*CaleoBCIActiveIncome(A)3.57813.29826.4251

*PrescientSAIncomeProvider(A1)4.03702.23866.36527.26352

*CinnabarSCIIncomeFoF(A)3.78754.75596.33536.8844

PPSFlexibleIncome(A)4.23683.82786.32546.8645

*AshburtonM-MIncome(A1)5.33373.34816.14556.8246

SouthchesterIPOptimumInc(A)2.18945.29465.93565.98522

*27fourShariahIncomePrescient(A1)3.54826.38185.7957

*PSGWealthIncomeFoF(A)4.59593.80795.61586.4548

SanlamDiversifiedIncomeFoF(A2)1.87984.48685.53595.88531

*StanlibFlexibleIncome(A)4.77535.44405.51606.95422

*CapitaBCIRealIncome(A)5.23391.99895.39616.59472

*SeedIncome(A1)4.44632.04885.38626.35492

SasfinBCIOptimalIncome(A)2.30934.98555.1363

SanlamAlternativeIncome(A1)1.84994.45695.05645.2255

*PrudentialEnhancedIncome(A)3.70772.74834.97656.17512

*NinetyOneAbsoluteBalanced(A)1.92972.37853.73664.5957

HarvardHouseBCIFlexibleIncome(A)6.10190.50913.33674.88562

*ElementSpecialistIncomeSCI(A)3.9671-1.96922.20685.73542

BridgeHighIncome(A)5.14410.67902.09694.37581

AFInvestmentsInflationLinkedBond(A)5.9723-3.42930.07701.43611

CoreSharesPreftraxETF11.342-21.29950.05713.6259

MomentumInflationLinkedBond(A)4.8051-3.8994-0.23721.64601

MomentumFlexibleIncome(A)12.8219.552

*MatrixNCISStableIncome(A1)6.47149.414

*DotportBCIIncome(A)3.37847.2412

PSGM-MMulti-AssetIncomeFoF(D)6.40156.8915

*OptimumBCIIncome(A)5.32386.2821

AbsaM-MIncome(C)3.13866.1323

*TRGIncomePrescientFoF(A1)5.73296.0825

AmpersandSCIIncome(A)4.36665.9027

*ThymeWealthIPIncomeMultiAsset(A)5.09425.8630

PrimeFlexibleIncome(A)4.63575.6932

*QuantumBCIIncome(C)4.85505.6833

*IntellivestBCIIncome(A)6.26165.5635

SygniaEnhancedIncome(A)2.70915.3145

*InvestecW&IBCIActiveIncomeFoF(A)4.18695.1947

SalvoPrimeDynamicIncome(A1)3.62805.1649

*MethodicalBCIIncome(B1)5.67315.1452

InvestecSpecialistInv.BCIEnhancedIncome(A)2.01965.1253

*PMKIncomePrescientFoF(B4)3.74764.9954

*KagisoIslamicHighYield(A)6.17174.9457

OctagonSCIFlexibleIncomeFoF(B1)5.34364.5664

LauriumIncomePrescient(A1)6.02214.2674

AshburtonDiversifiedIncome(A)7.6892.6784

*10XDefensiveIndex(A)3.05872.1887

*Delta4BCIIncome(A)6.9612

*TantalumBCIStrategicIncome(A)5.4934

*FinancialFitnessDiveIncIPFoF(A)5.0044

*OldMutualAlbarakaIncome(A)4.6656

PrescientIncomePlus(A2)3.0088

LOW EQUITY FUNDS

*FinancialFitnessStableIPFoF(A)11.13398.9858.981

*RezcoStable(A)4.9515011.3318.7226.51135

AbsaInflationBeater(A)4.101556.21218.1437.2935

*SelectBCICautious(A)20.9618.5968.0047.5715

AmplifySCIWealthProtector(B5)5.391486.51167.735

*H4Stable(B1)9.85725.23327.3266.79105

*NedgroupInv.Stable(A)12.142311.0527.3077.116

*NinetyOneCautiousManaged(A)7.921207.7987.1986.968

*SygniaSkeletonBalanced40(A)12.09246.48176.9197.1545

*PlatinumBCIIncomeProviderFoF(A)5.951416.19226.68106.41144

*MultiAssetIPBalancedDefensive(B1)11.00457.46106.58116.8395

*AbsaSmartAlphaDefensive(A)13.3379.8246.5512

*InstitBCIStableFoF(A)10.62537.01136.4513

*AmplifySCIDefensiveBalanced(A1)12.9994.88436.34147.3025

*AssetbaseCPI+2%PrescientFoF(A1)7.221244.73476.2915

*SanlamM-MConservativeFoF(A1)6.751324.42546.25167.0075

*DiscoveryConsDynAssetOptimiserFoF(A)8.651085.32316.2017

*AutusPrimeStable(A)11.852710.9636.18185.70364

*WealthAssociatesBCICautiousFoF9.64753.01836.0619

*NFBCiStable(A)9.34864.13635.91207.1155

FNBStableFoF(B1)11.31364.59505.8221

*SanlamM-MCautiousFoF(A1)9.15954.41555.80226.32154

*CounterpointSCICautious(A1)8.031192.79915.80235.64404

*IPDiversifiedInc.FoF(A1)5.781446.94145.71245.65393

*Mi-PlanIPInfl+3(B5)10.11614.36565.69255.71354

*SanlamM-MDefensiveFoF(A2)8.771044.99395.69265.69373

*StonewoodAMCiGuarded(A)6.671337.9875.64275.46483

*SanlamIMInflationPlus(A)9.68744.48525.61286.69114

DenkerSCISAStable(A)8.881006.07235.5829

*DynastyCiWealthPreserver(A2)9.83733.12805.54305.91254

*RoxburghCiConservativeFoF(A)13.2286.42195.5431

*SBROBCIDefensiveFoF(A)8.681067.28115.51326.16194

*DiscoveryCautiousBalanced(A)11.23383.04815.38335.98244

*OptimumBCIStable(A)11.40324.48515.34346.24164

*CeltisBCIConservativeFoF(A)9.43827.5995.32356.07214

*MontroseBCICautiousFoF(A)12.37196.46185.23366.02234

PPSConservativeFoF(A)8.721053.76665.21375.7332

*SanlamIMManagedConservativeFoF(A1)6.931313.56725.13386.15204

*NedgroupInvestmentsCoreGuarded(B)11.81284.18605.12396.07224

*OldMutualRealIncome(A)6.491372.64955.12405.80303

*Point3BCIConservativeFoF(A)7.001294.21595.1141

*SygniaCPI+2%(A)10.02653.56735.09425.7531

*4DBCICautiousFoF(A)11.05435.56295.07435.48463

*StanlibBalancedCautious(A)12.57136.67155.05445.07573

*NoblePPStanlibStratIncFoF(A)2.361573.73685.03455.46473

*MethodicalBCIStable(A)12.41185.44304.94465.58433

*FGIPVenusCautiousFoF(A)9.34874.68494.92476.56124

*27fourStablePrescientFoF(A1)10.82472.031094.86485.90264

AFInvestmentsConservativePassive(A1)11.02444.15624.8349

*AnchorBCIDiversifiedStable(A)10.70512.88884.8050

GravitonSanlamCILowEquity(A1)8.801023.02824.75515.54453

*CorionPrimeStable(A)9.47813.51744.73526.19184

*SasfinBCIStable(A)9.57791.531164.65535.34503

*PersonalTrustConservativeManaged(A)12.15225.57284.60545.55443

*AssetMixCiConservative(A)7.261234.84444.5955

*BrenthurstBCICautiousFoF(A)6.191404.95414.5956

*CinnabarSCIStableFoF(A)8.181174.16614.58574.95612

*PrivateClientBCILowEquity(B)10.05633.75674.5758

*PBiBCIConservativeFoF(A)10.24573.35774.5459

*SanlamIMManagedCautiousFoF(A1)11.36342.91864.54605.72344

*BCIStableFoF-3B110.68522.321044.48615.73333

*CoronationBalancedDefensive(A)12.31202.90874.44625.68383

*PFPSCiCautiousFoF(A)9.41832.73924.43635.85284

*OasisCrescentBalancedStableFoF(D)4.211545.12374.43644.74692

*AdviceworxOldMutualInfl.+2-3%FoF(B1)9.87713.63704.43655.86273

*OldMutualCoreConservative(A)11.48303.34784.4166

*MooreCiStableFoF(A)9.28884.76464.39675.09553

*OldMutualCapitalBuilder(A)5.511475.21334.38684.72702

*QuattroCiCautiousFoF(A)9.26904.03644.22695.07563

OctagonSanlamCICautiousFoF(B1)9.27892.66944.2170

*AFInvestmentsStableFoF(A)11.70293.37754.16715.04593

*N-e-FGBCIIncomeProviderFoF(A)12.62124.91424.12725.30513

GraySwanSCICautiousFoF(A)8.311151.451174.1073

*SatrixLowEquityBalancedIndex(A1)11.48312.53984.09745.1154

*HollardPrimeStrategicDefensiveFoF(B)7.661212.001104.07755.81293

*SouthernCharterBCIDefensiveFoF(A)11.12405.95244.05764.81663

*ASForumBCICautiousFoF(A)12.98104.46533.90774.76683

*StonewoodAMCiTemperate(A)11.08422.54973.90784.44763

*TrésorSanlamCIStable(B1)13.7364.29583.89794.01833

*PWSBCICautiousFoF(A)8.771034.73483.8080

*StanlibM-MLowEquityFoF(A)9.94692.69933.80814.92643

*StanlibM-MDefensiveBalanced(B1)10.00672.48993.79824.92633

*AnalyticsCiCautiousFoF(A)8.321142.62963.79835.26523

*WealthworksPrimeCautiousFoF(A)9.59782.331033.78844.89652

PrimeCabernetStableFoF(A)9.07960.261303.72854.53742

*AfFinityCiCautious(A)8.631091.321183.6886

*QuantumBCICapitalPlusFoF(A)9.38843.69693.65874.54732

*InvesthouseCiCautious(A)6.571355.15353.6488

AbsaM-MCorePreserver(C)8.291161.321193.6389

*OldMutualMMCautiousFoF(A)9.93702.391013.63905.45493

*StewartBCIAbsoluteReturnBlendFoF(A)3.961561.731143.61915.03602

*AllanGrayStable(A)9.94680.681283.61926.21174

*CadizBCIStable(A)9.05971.971123.61935.63413

*BovestBCIConservativeFoF(A)8.371125.74253.60944.66722

*SignatureBCIStableFoF(A)8.591112.061083.5095

MomentumTarget3FoF(A)10.03641.011253.4296

*AmityBCIStableSelect(A)14.1043.35763.3797

*APSCiCautious(A)10.73502.301053.34984.93623

*AureusNobilisBCICautious(A)12.08251.561153.3299

*AbsaM-MPreserverFoF(A)8.821012.91853.311005.15532

*RebalanceBCIBalancedFoF(A)9.63763.57713.291014.47752

*OldMutualStableGrowth(A)9.26910.051333.231024.77672

SageSCIProtectionFoF(A2)8.341132.351023.221034.70712

*DotportBCICautiousFoF(A)6.981300.081323.151044.06812

*SAAssetManBCICautious(A)7.121253.00843.151054.27782

*DinamikaBCIConservativeFoF(A)10.10622.86893.131063.76862

*ArgonBCIAbsoluteReturn(A)7.011280.761273.12107

CoreSharesOUTcautiousIndex(O)11.36331.041232.95108

*BCIBestBlendCautious(C)12.56142.061072.831094.32772

PrescientAbsoluteDefensive(A2)12.4417-4.241472.70110

*AbsaAbsolute(A)4.75151-1.041392.481113.09921

*SelectManagerBCICautiousFoF(A)12.54151.081212.371124.12802

*PSGWealthPreserverFoF(A)10.14600.481292.341134.1479

AllanGrayOptimal(A)-3.05159-7.121522.111144.01821

*MomentumFocus3Fof(A)10.2258-0.291352.091153.54892

*KagisoStable(A)1.35158-10.001541.931165.06583

*NewFundsMAPPSProtect12.91111.021241.721173.3790

*APIBCIStableFoF(A)12.3021-0.571361.711183.79852

*SeedStable(A1)12.4916-0.591371.661193.87842

*CapitaBCICautious(A)14.045-1.251401.631203.68872

*EdgeBCICautious(A)10.4755-0.611381.61121

*ElementRealIncomeSCI(A)5.60145-3.501461.511225.59423

*OasisBalancedStableFoF(D)7.02127-2.831441.161232.45941

BCIRealReturn(A)7.36122-5.951501.141243.0393

MomentumSADefensiveGrowth(A)9.4780-2.201421.10125

*SkyblueBCIKimberliteCautiousFoF(A)8.681073.14790.661263.15911

MFSSCICautiousFoF(B1)4.36153-3.251450.41127

*1nvestLowEquityPassiveBalancedFoF(A)6.45138-2.591430.35128

*PSGStable(A)11.3635-5.281490.111293.6588

*PrudentialInflationPlus(A)11.2937-5.14148-0.541302.29951

*AshburtonTargetedReturn(B4)10.0266-6.53151-0.721312.07961

*AmpersandSCICPIPlus2FoF(A)6.63134-7.89153-1.681321.53971

*PlexusWealthBCIConservative(A)5.53146-13.73155-4.421330.24981

*BridgeStableGrowth(A)5.92142-15.68156-7.69134-2.11991

AutusPrimeCautious(A)8.051187.1012

KrugerCiPrudential(A)10.61546.3720

ConstellationProtectedGrowthPrescient(A1)7.021265.7326

*TRGStablePrescientFoF(A1)9.24925.6227

Ginsburg&SelbySCIStableFoF(A1)9.00985.1834

*RSABCICautious(C)15.5725.1436

SynergyCiConservativeFoF(A)10.81485.0438

*StarPrimeStable(C)4.561524.9740

LauriumStablePrescient(A1)14.6334.7945

*InstitBCIManaged(A)10.85464.3257

*CelerityCiConservative(A)10.43563.8065

*AbaxSAAbsolutePrescient(A1)8.601102.8490

AbsaM-MPassivePreserver(A)9.23932.41100

*NFBCiDefensiveFoF(A)10.21592.13106

*WellsFaberStableRECMFoF(A)10.79491.97111

*10XLowEquityIndex(A)6.551361.91113

PSGM-MCautiousFoF11.11411.20120

*SequoiaBCIStableFoF(A)9.62771.07122

*StelburgBCICautiousFoF(A)11.94260.89126

PPSDefensive(A)6.231390.25131

MomentumDefensiveGrowth(A)9.1994-0.15134

CoreSharesStableIncome(A)9.3685-2.05141

*LynxPrimeCautiousFoF(A)8.9599

NgwediAbsoluteReturnSNN(I1)5.84143

MianzoCPI+3%ACI(A1)5.25149

MEDIUM EQUITY FUNDS

*CounterpointSCIModerate(A1)12.70546.6586.8415.7475

*PlatinumBCIBalancedFoF(A)9.49868.0726.4825.9065

*SasfinBCIBalanced(A)9.35875.96126.0835.9654

*SygniaSkeletonBalanced60(A)15.61136.02116.0146.5215

*FoordConservative(A)12.65557.5335.7556.1735

*WealthAssociatesBCIModerateFoF14.10262.85445.466

*MultiAssetIPBalanced(B1)13.96286.24105.4275.9745

*AeonBalancedPrescient(A1)16.3396.5795.2386.1825

*Mi-PlanIPInf+7(B5)12.44573.74325.0094.76224

*SouthernCharterBCIBalancedFoF(A)16.9769.3414.99105.6394

*SygniaCPI+4%(A)15.39154.93164.73115.2115

*DiscoveryMod.Dyn.AssetOptimiserFoF(A)13.00504.26264.6912

*AmplifySCIAbsolute(A1)14.19232.57494.59133

*RoxburghCiBalancedFoF(A)18.1325.74134.5114

*MergenceCPI+4%Prime(A1)10.58794.67184.50155.38123

*StanlibM-MRealReturn(A)13.64384.06284.33164.92214

*Mi-PlanIPInf+5(B5)10.83783.79314.29174.57283

*MontroseBCIModerateFoF(A)16.03107.1354.13185.24144

*QuattroCiModerateFoF(A)11.48745.60144.12194.99203

PPSModerateFoF(A)14.16253.67344.12205.1616

*FairtreeFlexibleBalancedPrescient(A1)13.20441.82624.07214.72254

*AbsaWealthPreserverPlus(A)2.36972.56504.06223.24551

*SanlamIMManagedModerateFoF(A1)14.91182.11574.05235.27134

*OptimumBCIBalanced(A)13.70322.45523.88244.73243

*FGIPSaturnFlexibleFoF(A)13.81304.35253.87255.03174

*AssetbaseCPI+4%PrescientFoF(A1)11.51722.43533.8226

*MelvilleDouglasStanlibMediumEquityFoF(A)18.0633.39373.77274.47294

*AdviceworxOldMutualInfl.+3-4%FoF(B1)11.50733.67333.74285.43104

*NoblePPStanlibBalancedFoF(A)2.72963.50353.74294.75232

*SBROBCIBalancedFoF(A)12.80536.6973.73304.71263

*DiscoveryModerateBalanced(A)14.09271.84613.71315.02194

*PrescientPositiveReturnQuantPlus(A1)6.4892-1.01853.71324.26362

*PrivateClientBCIMediumEquity(B)14.77203.80303.7033

*AssetMixCiModerate(A)11.80683.23413.5634

*HollardPrimeStrategicBalancedFoF(B)9.58851.97583.54355.39113

FNBModerateFoF(B1)14.24222.49513.5336

*GravitonSanlamCICapitalGrowth(A1)11.68702.80453.48374.33333

*FosterBCIModerateFoF(A)14.35212.69473.37383.65493

*CinnabarSCIBalancedFoF(A)11.86652.76463.34394.07402

*OasisCrescentBalancedProgressiveFoF(D)6.00934.18273.17404.23373

*IPPrud.FoF(A1)7.13914.41233.12413.67481

*ASForumBCIModerateFoF(A)16.01114.70173.05423.77473

*MooreCiBalancedFoF(A)12.39583.30393.04434.19383

*DestinyBCIPrudentialFoF(A)13.38411.22673.00443.63502

*ADBBCIBalancedFoF(A)17.1053.48363.00454.32354

*AnchorBCIDiversifiedModerate(A)13.85290.94732.9546

*QuantumBCIBalancedFoF(A)13.34423.84292.91473.93443

*27fourBalancedPrescientFoF(A1)12.93510.11782.85484.43313

KagisoProtector(A)11.7769-4.12962.82495.6784

*PFPSCiModerateFoF(A)11.90640.97722.80504.63273

*OldMutualMMDefensiveFoF(A)13.39402.40552.76515.03183

MomentumTarget4FoF(A)12.1859-0.76832.7652

AbsaM-MCoreAccumulation(C)13.17470.77742.6753

CoreSharesOUTstableIndex(O)13.69330.29752.6754

*AnalyticsCiModFoF(A)10.49801.56642.57554.37323

*StanlibAbsolutePlus(A)8.83881.46652.43564.17392

*APSCiModerate(A)15.33162.33562.34574.00433

*OldMutualAlbarakaBalanced(A)11.0377-0.05792.28584.33342

StonewoodAMCiDiversifiedGrowth(A)13.4039-1.23872.25593.84453

*AfFinityCiModerate(A)10.4481-0.91842.2460

*StanlibM-MMediumEquityFoF(A)13.18462.42542.19613.80462

*CoronationCapitalPlus(A)13.64371.09692.16624.02412

*OldMutualModBalanced(A)12.1461-1.97901.97634.01423

*AbsaMMAccumulationFoF(A)12.44561.28661.95644.47303

MomentumTarget5FoF(A)13.7831-2.62921.9565

GraySwanSCIModerateFoF(A)11.0776-1.32881.8366

*SageSCIModerateSolutionFoF(A2)16.5181.05701.73673.30532

*NovareBalanced(A1)12.00631.63631.7168

*OldMutualDynamicFloor(A)7.3989-0.21801.63693.32521

MomentumFocus4FoF(A)13.6635-1.06861.2270

*EngelbergIPBalanced(A)11.82670.97711.1671

*CapstoneBCIBalanced(A)19.7311.88601.09722.98563

*SelectManagerBCIModerateFoF(A)14.18240.20771.01733.28542

*AbsaBalanced(A)12.1560-3.68950.91742.95572

*SAAssetManBCIModerate(A)11.40753.16420.85752.70591

*NedgroupInv.Opportunity(A)16.957-3.36940.48763.34513

*BaroqueBCIModeratoFoF(A)10,06824,50210,28772,84581

*AmityBCIPrudentFoF(A)17.864-0.71820.22782.21612

IFMBalancedValueFoF(A)4.64956.9760.03790.41622

*MFSSCIModerateFoF(B1)4.7794-2.4291-0.0780

*MomentumFocus5Fof(A)15.3017-3.1893-0.09812.51602

*EdgeBCIBalanced(A)13.6734-1.9589-0.1882

*AmpersandSCICPIPlus4FoF(A)7.2990-10.1597-3.81830.04631

*MethodicalBCIAbsolute(A)14.77197.284

*TRGModeratePrescientFoF(A1)12.81525.0215

*CaleoBCIModerateFoF(A)15.44144.6619

*ChromeCiDefensive(A)9.82834.5320

*ChromeCiModerate(A)11.84664.4322

SynergyCiModerateFoF(A)13.66364.4024

PPSStableGrowth(A2)13.01493.3138

SanlamIMMediumEquity(A1)9.80843.2940

*CelerityCiModerate(A)13.30433.1143

*BCIMultikorModerateFoF(A)12.07622.5948

*AbsaM-MPassiveAccumulation(A)13.14481.8859

*OldMutualCoreModerate(A)13.19451.1468

*PMKBalancedPrescientFoF(A3)15.67120.2776

*10XMediumEquityIndex(A)11.6771-0.3581

TARGET DATE FUNDS

*Discovery2015(A)10.36101.1113.6414.561

*Discovery2020(A)10.8380.7023.2524.362

*Discovery2025(A)10.719-0.3832.4033.933

*Discovery2030(A)11.067-1.5641.7843.514

*Discovery2035(A)12.626-2.6950.8652.925

*Discovery2040(A)13.244-3.1660.4462.696

*Discovery2050(A)13.452-4.1590.2372.228

*Discovery2045(A)13.931-3.6570.1782.497

Discovery2055(A)12.885-3.898

Discovery2060(A)13.363-4.5810

SOUTH AFRICAN INTEREST-BEARING

SHORT TERM FUNDS

TruffleSCIIncomePlus(A)1.68375.39339.501

PSGIncome(A)5.5239.4218.5728.495

CentralFundisa(B8)3.9987.5238.4138.761

NedgroupInv.Fundisa(A)4.1167.5148.3848.742

AbsaCoreIncome(A)4.0078.0228.355

*SanlamIMEnhancedYield(A1)5.4647.1388.3168.7133

StanlibIncome(R)2.94186.65178.0178.5044

*AFInvestmentsIncome(A)5.2757.4157.9788.1672

*MomentumEnhancedYield(A)3.40127.3377.9598.1864

NinetyOneHighIncome(A)2.72276.43267.94108.168

*AbsaIncomeEnhancer(R)5.6927.4067.91118.07102

AshburtonStableIncome(A)2.66296.25287.83128.01113

StanlibM-MEnhancedYield(B1)3.29136.87137.79137.97144

StandardBankFundisa(A)3.67106.89127.79148.139

*HollardPrimeYield-Plus(B)3.23146.57207.78157.81202

CitadelSAIncomeH4(B1)2.78246.66167.77167.97154

PrimeIncomePlus(A)3.09167.0997.77178.00123

*PrudentialIncome(A)2.71285.99327.7518

PrescientYieldQuantPlus(A1)2.92206.91117.71197.84195

*AFInvestmentsSuperiorYield(A)2.84226.75157.65207.91163

StanlibEnhancedYield(A)2.58326.46257.64217.99133

CoronationJibarPlus(A)2.74256.56227.60227.74234

PPSEnhancedYield(A)2.62316.56217.54237.7224

*NedgroupInv.CoreIncome(B)2.64306.50247.47247.70253

*AshburtonSAIncome(B1)3.01174.96357.43257.88171

*NinetyOneStefiPlus(A)2.73266.56237.42267.6326

OldMutualInterestPlus(A)2.86216.59197.34277.61273

AbsaFundisa(A)3.61116.61187.34287.7721

*StanlibExtraIncome(R)2.46346.16307.33297.86182

*IPInterestPlus(A)2.44356.20297.22307.75222

PSGWealthEnhancedInterest(A)2.55336.30277.16317.3428

GryphonDividendIncome(A)2.13365.34346.18326.30291

TerebinthSCIEnhancedIncome(B1)3.8797.0910

*InstitBCIEnhancedYield(A)2.94196.8614

SasfinBCIHighYield(A)1.13386.0431

IFMIncome(E)3.15151.3436

OldMutualIncome(A)6.561

AbaxSAIncomePrescient(A1)2.8323

SteFI3.026.667.107.18

VARIABLE TERM FUNDS

*AbsaBond(A)16.4827.3719.0419.2915

CitadelSABondH4(B)9.55275.5958.4528.284

PrescientFlexibleFixedInterest(A2)3.97375.7048.283

AbsaInflationLinkedIncome(A)3.10386.8438.084

*AllanGrayBond(A)9.62253.12138.0358.3734

*NedgroupInv.CoreBond(A)11.19144.8167.7967.9654

PortfolioMetrixBCIBondFoF(A)10.72194.0477.2978.4625

AnchorBCIBond(A)11.6753.14127.218

*StanlibBond(A)11.43104.0486.9897.8164

1nvestAlbi(Non-Tr)IndexTracker(A)11.21133.02156.80106.8818

SatrixBondIndex(A1)11.16162.83186.73116.9613

*FairtreeAlbiPlusPrescient(A1)10.95181.75236.7212

*OasisBond(D)8.77282.94166.71137.3784

*MomentumBond(A)10.67201.94226.67146.93143

SygniaAllBondIndex(A)11.6372.87176.66156.9017

*AshburtonBond(A)9.84241.21286.6116

*NewFundsGovi11.35123.07146.57177.0810

*SanlamSelectBondPlus(B3)11.5981.40276.54186.97123

SanlamIMBondPlus(A)11.9341.75246.50196.98113

AshburtonGoviTracker(A)11.03173.19116.3620

*AFInvestmentsPureFixedInterest(A)10.06231.48266.30216.93153

*AshburtonM-MBond(A1)8.57291.49256.24226.9216

*MelvilleDouglasStanlibBond(A)11.17152.38216.21236.79192

*CommunityGrowthGilt(A)9.57260.77296.05246.73202

AbsaM-MBond(A)7.66312.55195.95257.1193

CoronationBond(R)10.22220.43305.90267.5573

*PrudentialHighYieldBond(A)7.9430-0.97315.33276.15212

PrescientBondQuantPlus(A1)4.5836-2.34324.58285.88221

SatrixILBIETF(A)5.6534-2.54330.5529

*NewFundsILBI5.8132-2.60340.33301.7223

AshburtonInflationETF5.7133-2.70350.25311.6624

1nvestInflationLinkedBondIndexTracker(A)5.4835-3.17360.1132

ColourfieldBCIIncome2(A)11.656-9.7537-3.9733-1.57251

1nvestSABondETF18.7517.212

SygniaEnhancedAllBond(A)11.4893.519

AbsaBondIndex(A)11.37113.2410

ArgonBCIBond(A)12.4732.5120

OldMutualBond(A)10.3621

SOUTH AFRICAN REAL ESTATE

GENERAL FUNDS

*TrueNorthIPEnhancedProp(A)5.473-12.451-2.461-1.4215 CatalystFlexiblePropertyPrescient(A)-0.1230-38.185-15.142-5.2425

HarvardHouseBCIProperty(A)7.001-37.634-16.283-7.3235 MarriottPropertyIncome(A)-3.6137-45.0120-18.554-10.4983

HollardPrimeProperty(B)1.4924-41.0111-19.755-9.4564

OasisPropertyEquity(D)-5.6441-37.262-19.806-13.78221

SesfikileBCIProperty(A1)2.0820-40.8910-19.867-9.3554

AnchorBCIProperty(A)2.2318-39.968-19.898

PortfolioMetrixBCISAProperty(A)3.329-39.176-20.299-9.0744

CadizBCIProperty(B)3.628-37.613-20.7110-11.1393

OldMutualSAQuotedProperty(A)-0.0829-43.3516-21.6811-12.18133

AshburtonM-MProperty(A1)2.9014-41.8013-22.1712-11.7510

AFInvestmentsPropertyEquity(A)1.8821-44.9019-22.8213-11.81114

AmpersandSCIFlexiblePropertyIncome(A)3.2610-41.1512-22.9014-11.87121

MaziAssetManagementPrimeProperty(A)4.115-43.5917-23.7315-13.47202

AbsaPropertyEquity(A)1.242640.439-23.8416-10.1674

MomentumRealGrowthProperty(A)2.3017-45.9124-23.9517-12.89163

1nvestSAPropertyETF2.6116-46.2627-24.0818-12.8615

SatrixPropertyIndex(A1)3.0112-46.0625-24.1119-13.1017

MomentumRealGrowthPropertyIndex(A)4.036-46.2226-24.2920

MetopePropertyPrescient(A)3.697-43.2515-24.4921-12.28144

AshburtonProperty(A)2.6315-44.5918-24.5022

MomentumSARealGrowthProperty(A)0.8928-46.8430-24.5223

AbsaSmartAlphaProperty(A)2.2219-42.2814-24.5624-14.03243

SygniaListedPropertyIndex(A)3.0013-47.0331-24.5725-13.3118

DiscoveryFlexibleProperty-2.7534-47.8032-24.7026-13.78233

MSMPropertyACI(A1)6.992-45.5022-24.7127

PrudentialEnhancedSAPropertyTracker(A)1.7922-46.6729-25.0528-13.36193

CatalystSAPropertyEquityPrescient(A)-3.0636-49.2634-25.2529-13.58213

CoronationPropertyEquity(A)-4.5439-50.6638-25.3530-14.31282

CitadelSAPropertyH4(B1)-1.6333-47.9333-25.5631-14.07252

StanlibPropertyIncome(A)1.5423-46.5128-25.8132-14.12262

SanlamIMProperty(A)-1.1931-49.2735-26.2933-14.7229

NinetyOnePropertyEquity(A)-3.7538-49.5036-26.4134-14.8830

SelectBCIProperty(A)1.0927-52.2939-26.4335-14.89313

PlexusWealthBCIProperty(A)-3.0535-45.4421-26.7736-14.16272

1nvestCappedPropertyIndexTracker(B3)-1.5432-49.7037-27.4237-17.2633

NedgroupInv.Property(A)4.184-39.887-28.3738-16.09321

SatrixPropertyETF(A)-7.5243-53.5240-28.5139

AbsaPropertyIndex(A)3.1011-45.8023

MetopePropertyIncomePrescient(A)1.4125

InvestecWealth&InvestmentBCIProperty(A)-5.6440

CoreSharesSAPropertyIncome-7.1342

FTSE/JSESAListedPropertyIndex(J253)3.41-46.07-23.80-12.85

WORLDWIDE EQUITY

GENERAL FUNDS

NestEggBCIWorldwideEquity(A)16.42520.55210.571

H4WorldwideEquity(B1)20.2129.9867.7427.361

BCIValueFund15.71717.2744.853

StewartBCIMacroEquityFoF(A)22.23111.8954.2644.722

CoreSharesOUTaggressiveIndex(O)19.173-0.0572.425

CorionPrimeWorldwideEquity(A1)16.096-0.6281.356

PrimeWorldwideEquity(A)13.898-11.859-10.677

InnovationBCIWorldwideEquity(A)18.29431.571

AshburtonGlobalLeadersZAREquityFeeder(A)11.27918.383

CitadelWorldwideEquityH4(B)8.2410

UNCLASSIFIED FUNDS

OldMutualGold(A)70.3287.5842.0528.86

WORLDWIDE MULTI-ASSET

FLEXIBLE FUNDS

NavigaBCIWorldwideFlexible60.63190.11128.021

RCIBCIFlexibleGrowth(L)34.43353.04218.742

SelectBCIWorldwideFlexible(A)16.604529.52517.35316.2215

RCIBCIWorldwideFlexible(A)14.986129.70415.994

InvesthouseCiGrowth(A)12.078122.291114.565

CoronationOptimumGrowth(A)17.044024.61813.03615.4425

RootstockSCIWorldwideFlexible(A)17.173822.491013.0179.3584

ConsiliumBCIWorldwideFlexible(A)18.851926.60612.7489.1794

QuattroCiWorldwideFlexibleFoF(A)10.848417.781912.66911.2434

CordatusWorldwideFlexiblePrescient(A2)13.867118.591812.531010.7144

FlagshipIPWorldwideFlexibleFoF(A)16.594622.55912.48119.3674

PlatinumBCIWorldwideFlexible(A)7.638813.463012.231210.5655

InstitBCIWorldwideFlexibleFoF(B)18.941821.021311.8013

Fin.FitnessFlexIPFoF(A)15.765713.103310.9314

ProvidenceBCIWorldwideDiversified(B)17.343716.252110.6115

LunarBCIWorldwideFlexible(A)14.776519.981410.2216

FlagshipIPWorldwideFlexible(A)22.59519.66159.95176.78223

PrimeWorldwideFlexible(B)16.994115.14239.95189.5264

OptimumBCIWorldwideFlexibleFoF(A)1.799513.48299.8019

JBLSanlamCIWorldwideFlexibleFoF(B1)12.817810.36489.7420

InstitBCIWorldwideEquity19.031619.15179.4221

CSBCIWorldwideFlexibleFoF(A)16.384916.54209.1822 AnchorBCIWorldwideFlexible(A)20.701010.41479.14238.68104

SignatureBCIWorldwideFlexibleFoF(A)15.695815.90228.9224

SimplisitiBCIFlexibleFoF(A)20.151121.70128.78258.02134 ProsperityIPWorldwideFlexibleFoF(A)4.20924.93718.77268.29115

MontroseBCIFlexibleFoF(A)18.472312.54388.54278.25123

AnalyticsCiWWFlexFoF(A)6.81907.74617.73327.95144

CorionPrimeWorldwideFlexible(A1)17.732912.34407.4833

CohesiveCapitalWWFlexiblePrescient(A2)17.613012.97347.4634

CeltisBCIFlexibleFoF(A)18.032619.19167.1235

CinnabarSCIWorldwideFlexible(A)14.816413.52286.81366.66243

H4Growth(B1)16.98425.66706.73376.28253

SygniaSkeletonWorldwideFlexible(A)21.1386.12666.6338

FoordFlexibleFoF(A)14.926215.11246.60397.85153

AureusNobilisBCIWorldwideFlexibleFoF(A)16.484811.80436.5340

BCIWorldwideFlexibleFoF-3B117.463212.96356.47417.55163

Ginsburg&SelbySCIWorldwideFlexible(A1)19.91139.15536.4542

PWSBCIWorldwideFlexibleFoF(A)17.443413.40316.3243

OldMutualMMMaxReturnFoF(A)18.961711.06456.31447.46183

SouthernCharterBCIWorldwideFlexibleFoF(A)14.696612.93366.22456.10273

BovestBCIWorldwideFlexibleFoF(A)17.463314.45276.08467.00213

NedgroupInv.BravataWorldwideFlexible(A)16.07534.33745.84476.74233

AutusPrimeWorldwideFlexible(A)17.133912.40395.62484.27353

BCIFlexible(A)12.88767.17645.59495.32303

PrivateClientBCIWorldwideFlexible(A)13.68735.90695.4150

MilleniumBCIWorldwideFlexibleFoF(B)20.04129.21515.3051

ImalivestSCIWorldwideFlexible(A)8.0287-1.95875.21526.13263

MethodicalBCIWorldwideGrowthFoF(A)18.15249.18525.20537.04203

DinamikaBCIWorldwideFlexible(A)16.62439.72504.99544.71342

Point3BCIModerateWorldwideFlexibleFoF(A)18.78216.83654.7655

RebalanceBCIWorldwideFlexibleFoF(A)18.832010.63464.73565.27313

4DBCIAggressiveFlexibleFoF(A)15.16608.22594.6357

APIBCIWWOpportunitiesFoF(A)14.86634.03764.24585.75282

TrésorSanlamCIFlexible(B1)21.7378.32564.14595.04322

OctagonSanlamCIWorldwideFoF(B1)17.50314.42733.1660

OldMutualMaximumReturnFoF(A)16.13523.81773.12615.41292

SelectManagerBCIWorldwideFlexibleFoF(A)16.61444.59723.0962

OlympiadBCIWorldwideFlexibleFoF(A)-0.10961.64803.06634.10382

BCIBestBlendWWFlexible(A)16.57474.20752.9764

EngelbergIPGlobalFeeder(A)6.12918.37552.4865

IPWorldwideFlexibleFoF(B2)13.03758.23581.84664.11372

CordatusWorldwideFlexiblePrescientFoF(A2)15.84556.02671.67674.22362

NinetyOneWorldwideFlex(E)12.53797.88601.5668

CoronationMarketPlus(A)20.7192.83781.47694.96332

PBIBCIWorldwideFlexibleFoF(A)18.51220.40821.3270

NovareWorldwideFlexibleFoF(A1)12.2480-2.91881.28713.54392

FNBGrowthPlusFoF(B1)17.8128-0.58840.6672

StonewoodBCIWWFlex(B)14.5267-0.7486-0.02732.02411

MedianBCIWorldwideFlexibleFoF(A)15.43590.9981-1.0274

RockCapitalIPTop20Global(A)10.3185-5.4889-1.9775-0.13431

CadizBCIWorldwideFlexible(A)11.4883-10.3391-2.98760.11421

RECMGlobalFlexible(A)3.2993-9.4190-3.32773.05401

BlueQuadrantMETWorldwideFlexible(A)50.102-19.5692-10.3778-1.95442

InstitBCIWorldwideModerateAgg.Flexible(A)19.881429.743

NestEggBCIWorldwideFlexible(A)15.845625.487

BCIWorldwideFlexibleStyle(C)14.386914.9625

SynergyCiWorldwideFlexibleFoF(A)17.353614.9326

HarvardHouseBCIWorldwideFlexible(A)6.958912.2541

ChromeCiMaximumReturn(A)14.386811.5944

RedOakBCIWWFlexibleFoF(A)22.1969.0754

CitadelWorldwideFlexibleH4(B3)12.84778.2457

NFBCiWorldwideFlex(A)14.36707.5562

FairtreeWWMulti-StrategyFlexPrescient(A1)17.36357.5363

RexsolomWWFlexiblePrescient(A1)2.33946.0168

PMKWorldwideGrowthPrescientFoF(A3)17.92271.6779

FussellCiWorldwideFlexible(A)13.7672-0.1783

InstitBCIWorldwideFlexible(A)18.0525-0.6485

BIPBCIModerateWorldwideFlexible(C)19.5615

IPWorldwideActiveBeta(A)16.2750

FisherDugmoreCiWorldwideFlexible(A)16.0654

BIPBCIWorldwideFlexible(E)11.6882

GLOBAL EQUITY

GENERAL FUNDS

IPGlobalMomentumEquity(A)56.45294.00139.691

AnchorBCIGlobalEquityFeeder(A)58.47181.25228.252

AutusPrimeGlobalEquityFeeder(A)23.631536.95720.65315.8035

Sygnia4thIndustrialRevolutionGlobalEquity(A)37.49542.69620.354

BlueAlphaBCIGlobalEquity(A)19.353636.53819.95517.5615

SatrixS&P500ETF20.322726.631719.836

CoreSharesS&P50020.142925.742119.827

StanlibGlobalEquityFeeder(A)19.693129.381318.67816.2425

PSGWealthGlobalCreatorFeeder(A)23.001626.461818.21915.494

NinetyOneGlobalFranciseFeeder(A)11.406924.852417.991015.285

MelvilleDouglasStanlibGlobalEquityFeeder(A)18.714125.162317.9511

SygniaItrixMSCIWorldIndexETF20.192821.163215.491214.566

SatrixMSCIWorldEquityFeederETF18.834021.633015.3313

NedgroupInv.GlobalEquityFeeder(A)13.176620.293815.161414.3174

M1CapitalGlobalEquityPrescient(A1)28.63727.061615.1415

SatrixMSCIWorldEquityIndexFeeder(A1)17.615019.714014.461613.959

AllanGray-OrbisGlobalEquityFeeder(A)21.212320.47377.824713.15133

DenkerSCIGlobalEquityFeeder(A)9.03767.51677.25488.34322

OldMutualFTSERafiAllWorldIndexFeeder(A)12.21683.26705.73498.9327

GlacierGlobalStockFeeder(B3)14.11613.93695.2450

StonewoodBCIGlobalEquityFeeder(A)11.21701.19713.63514.19371

DenkerSCIGlobalDividendFeeder(A1)4.9780-4.27722.30524.54361

SanlamGlobalEmergingMarketsFeeder(A1)25.501016.46532.2553

CounterpointSCIGlobalEquityFeeder(B)0.0881-9.59750.7954

AbsaGlobalValueFeeder(A)8.7477-8.6273-0.35555.72342

PSGGlobalEquityFeeder(A)20.3726-8.7574-2.08564.8435

DiscoveryGlobalValueEquityFeeder(A)10.7672-18.7376-5.01573.40381

SygniaFaangPlusEquity(A)41.02474.063

AnchorBCIGlobalTechnology(A)34.64656.804

SygniaItrix4thIndustrialRev.GlobalEquityETF41.21342.885

StonehageFlemingSCIGblBestIdeasEqty Fdr(A1)22.111732.829

Mi-PlanIPGlobalAIOpportunity(B2)19.853032.6110

InstitBCIGlobalEquity(A)14.466032.2411

BCIFundsmithEquityFeeder(A)19.443528.9814

NedgroupInv.GlobalDiversifiedEquityFdr(A)24.091228.4615

OldMutualMSCIEmergingMktESGInd.Fdr(A)25.90826.4419

NedgroupInv.GlblEmergingMktEqtyFdr(A)24.321125.3522

1nvestMSCIWorldIndexFeeder(A)19.543322.2726

PrescientCoreGlobalEquity(A2)19.603222.2127

1nvestMSCIWorldIndexFeederETF19.463422.1528

CoreSharesMSCIACWIFoF(A)19.113721.3231

OldMutualMSCIWorldESGIndexFeeder(A)16.825320.5236

PrescientSigmaSelectGlobalLeadersFeeder(A1)23.631419.2342

SasfinBCIGlobalEquityFeeder(A)9.867515.5557

KagisoIslamicGlobalEquityFeeder(A)14.64599.5165

CoreSharesS&PGlobalDividendAristocratsETF13.96629.1066

FairtreeGlobalEmergingMarketsPrescient(A1)19.0339

KagisoGlobalEquityFeeder(A)16.8752

BCICredoGlobalEquityFeeder(A)16.5356

BenguelaGlobalEquityACIFeeder(A1)12.9267

Global&LocalSNNEquity(A)5.2979

MSCIWorldindex19.6119.8213.5812.61

UNCLASSIFIED FUNDS

DenkerSCIGlobalFinancialFeeder(A1)9.48-18.00-4.394.58

GLOBAL MULTI-ASSET

FLEXIBLE FUNDS

Mi-PlanIPGlobalMacro(B5)16.74927.33319.29115.9025

AFInvestmentsGlobalEquityFeeder(A)21.112419.174312.382713.65114

StanlibM-MGlobalEquityFeeder(A)18.424417.774712.332812.51154

SanlamPrivateWealthGlblHighQualityFdr(A1)11.007115.265812.2329

27fourGlobalEquityPrescientFeeder(A1)13.766313.896211.933010.94213

SelectManagerBCIGlobalEquityFoF(A)17.634919.983911.8831

PortfolioMetrixBCIGlobalEquityFoF(A)17.944714.696111.833212.53143

MarriottFirstWorldEquityFeeder(A)10.257315.765511.49339.90263

OldMutualGlobalEquity(A)19.093817.294911.243412.50163

CoronationGlobalEquitySelect[ZAR]Feeder(A)15.965719.084410.913513.9884

PrescientGlobalEquityFeeder(A1)16.555515.695610.263610.66233

CoronationGlobalOpp.Equity[ZAR]Feeder(A)25.60914.866010.123710.68223

NinetyOneGlobalStrategicEquityFeeder(A)21.501916.625210.073810.0825

OasisCrescentInternationalFeeder(D)8.447815.795410.03398.68292

PrudentialGlobalEquityFeeder(A)18.664314.90599.974011.27203

MomentumInternationalEquityFeeder(A)18.064610.81649.424110.37243

SatrixMSCIEmergingMarketsETF21.492021.82299.1042

ElementGlobalEquitySCI(B)9.94746.63688.58438.73282

SanlamGlobalEquity(A)13.726417.23508.54448.52312

BCIBBGlbEquity(A)21.472120.96348.49458.52302

ElementIslamicGlobalEquitySCI(A)13.596513.34637.92467.00332

GlobalIPOpportunity(B5)17.44827.31419.13215.3735

NorthstarSCIGlobalFlexible(A)8.702920.631016.543

NorthstarSCIGlobalFlexibleFeeder(A)8.732821.27815.984

PSGWealthGlobalFlexibleFeeder(A)16.491025.87515.53512.655

DetonPrimeGlobalFlexibleFoF(A)20.20232.22114.61612.2264 SygniaInternationalFlexibleFoF(A)17.70721.99713.61712.6944 SkyblueBCISolarFlexibleFoF(A)19.32528.42213.17811.3084

AssetbaseGlbFlexPrescientFoF(A1)11.811618.291212.699

WarwickBCIInternationalFoF(C)9.312315.092112.24106.69193

MarriottInternationalGrowthFeeder(A)11.571815.771712.141111.367 BCIUbamMultiFundsFlexibleAllocationFoF(A)9.272415.621910.9712

PSGWealthGlobalModerateFeeder(A)11.181915.981510.58138.7514 KrugerCiInternationalFlexibleFeeder(A)8.063014.222210.45149.6493 NedgroupInv.GlobalFlexibleFeeder(A)9.78219.34299.73159.3211 APSCiGlobalFlexibleFeeder(B)8.802713.52259.6916 FoordInternationalFeeder(A)2.473617.26139.31178.7713 CoronationGlobalEmergingMktFlex.(ZAR)(A)22.91125.4369.041816.1314 FGIPInternationalFlexibleFoF(A)11.601712.04278.83199.35103 BridgeGlobalManagedGrowthFeeder(A)2.78351.75318.26207.06182 SelectManagerBCIGlobalModerateFoF(A)9.592216.22148.23219.22123

LynxPrimeCIGlobalDiversifiedFoF(A1)7.38319.97288.14227.23162

IPForeignFlexibleFeeder(A1)5.573213.01267.59237.20172

AmityBCIGlobalDiversifiedFoF(A)14.761313.56245.45247.80152

PrescientRECMGlobalFeeder(A)1.4937-3.80331.43255.9420

PSGGlobalFlexibleFeeder(A)18.256-1.17320.77265.9221

MethodicalBCIGlobalFlexibleFoF(A)9.092520.869

QuantumBCIWorldwideFlexibleFoF(A)15.701119.1411

CelerityCiInternationalGrowthFoF(A)14.891215.8016

RezcoGlobalFlexibleFeederFund-1.104015.6918

PMKGlobalFlexiblePrescientFoF(A3)11.082015.4320

Point3BCIGlobalFlexibleFoF(A)19.53413.9823

ThymeWealthIPGlobal(A)12.89155.6130

FlagshipIPGlobalFlexible(B)20.113

ChromeCiGlobalMaximumReturnFeeder(A)13.3214

SalvoGlobalManagedPrimeFeeder(B)9.0326

RozendalGlobalPrescientFeeder(A)5.4333

ClucasGrayGlobalFlexiblePrescient(A1)5.0234

*CadizBCIGlobalFlexibleFoF(A)-0.7838

CounterpointSCIGlobalOwnerMgdFlex.Fdr-0.9039

HIGH EQUITY FUNDS

StanlibGlobalBalancedFeeder(A)12.44622.12115.26112.1815

NedgroupInv.CoreGlobalFeeder(A)13.25417.42313.332

PPSGlobalBalancedFoF(A)9.901315.73511.723

AFInv.StrategicGlobalBalancedFeeder(A)12.68514.79611.54411.3324

NinetyOneGlobalStrategicManagedFeeder(A)13.66318.76211.27510.164

MomentumInternationalBalancedFeeder(A)11.69714.30710.2769.3653

SanlamGlobalBalancedFoF(A)6.731513.57910.2679.2563

CoronationGlobalManaged[ZAR]Feeder(A)9.391416.8249.78810.9833

AshburtonGlobalFlexible(A)10.471113.6989.3797.6183

SharenetBCIGlobalBalancedFoF(C)10.94911.11129.2410

PrimeRenaissanceGlobalBestIdeasFeeder(A)5.311611.75119.01117.0992

AllanGray-OrbisGlobalFoF(A)10.601012.22104.09128.4472

DiscoveryGlobalMulti-Asset(A)14.0227.50142.44132.72101

PrudentialGlobalBalancedFeeder(A)11.6089.7213

PrescientGlobalBalancedFeeder(A2)16.131

SeedGlobalPrescientFeeder(A1)10.3812

INCOME FUNDS

CoronationGlbStratUSDIncome[ZAR]Fdr(A)-2.33311.3439.1415.561 PrescientGlbIncProviderFeeder(A1)-1.32211.4826.9925.372 BCIFairtreeGlobalIncomePlusFeeder(A)11.30113.351

1nvestGblGvtBondIndexFeederETF-3.43717.432

1nvestGlobalGovernmentBondIndexFeeder(A)-3.59817.423

AshburtonWorldGovernmentBondETF-3.37615.607

PortfolioMetrixBCIGlobalBondFoF(A)1.714

GLOBAL REAL ESTATE

GENERAL FUNDS ReitwayBCIGlobalProperty(A)8.57315.05114.33110.7715

AbsaGlobalPropertyFeeder(A)11.0617.02212.942

SesfikileBCIGlobalProperty(A1)10.5522.28310.583

CatalystGlobalREPrescientFeeder(B)6.816-2.20610.2347.6924

PortfoliometrixBCIGlobalPropertyFoF(A)8.114-0.12510.215

NedgroupInv.GlobalPropertyFeeder(A)4.35141.57410.136

FairtreeGlobalRealEstatePrescient(A1)0.7719-5.98117.737

StanlibGlobalPropertyFeeder(A)5.997-6.81136.6884.3653

CoreSharesS&PGlobalProperty5.2710-4.7096.449

MarriottInternationalRealEstateFeeder(A)7.085-7.37145.83105.1244

DiscoveryGlobalRealEstateSecuritiesFeeder(A)4.9913-7.77155.65114.1863

StyloGlobalRealEstatePrescientFoF(A1)5.2511-6.23125.5912

MeagoEnhancedGlobalPropPrescient(A1)5.589-9.75175.3513

BCIBestBlendGlobalProperty(A)5.898-3.5774.64145.7133

Mi-PlanIPGlobalPropertyFdr(B5)3.5617-4.80104.13154.1372

OasisCrescentInternationalPropertyEqtyFdr(D)3.1218-9.2816-0.25161.0982

BridgeGblPropertyFeedInc(A)-2.9620-25.1520-2.5917-0.6691

SygniaItrixGlobalPropertyETF5.2112-4.168

1nvestGlobalReitIndexFeederETF4.2915-13.7418

1nvestGlobalReitIndexFeeder(A)4.1416-14.0719

REGIONAL EQUITY

GENERAL FUNDS

1nvestS&P500IndexFeederETF20.8227.00

1nvestS&P500IndexFeeder(A)20.3226.25

1nvestS&P500InfoTechIndexFeederETF32.3461.56

1nvestS&P500InfoTechIndexFeeder(A)31.6559.77

AbsaAfricaEquityFeeder(A)9.922.666.232.48

AshburtonIndiaEquityOpportunitiesFeeder(A)31.527.34

CloudAtlasAMIBig50ex-SAETF-2.95-14.00-7.09

MaziAssetManagementPrimeAfricaEquity(A)8.85-4.634.10

RudiariusBCIAfricaEquity(C)11.021.662.601.66

SanlamAsiaPacificFoF(A)14.2212.155.738.33

SanlamIndiaOpportunitiesFeeder(A)26.172.856.517.74

SanlamPanEurope(A)13.199.965.475.27

SatrixNasdaq100ETF34.4163.82

StanlibEuropeanEquityFeeder(A)18.5520.328.468.44

SygniaItrixEurostoxx50ETF15.997.585.298.09

SygniaItrixFTSE100ETF1.42-6.221.373.04

SygniaItrixMSCIJapanETF11.2617.1110.9811.13

SygniaItrixMSCIUSIndexETF24.0827.5319.9617.68

SygniaItrixS&P500ETF22.2726.03

REGIONAL MULTI-ASSET

FLEXIBLE FUNDS

AnchorBCIAfricaFlexibleIncome(A)14.904.478.44

GLOBAL INTEREST-BEARING

SHORT TERM FUNDS

MarriottGlobalIncome(A)-4.08310.6638.5315.331

OldMutualGlobalCurrencyFeeder(A)-2.98213.8827.3825.182

MomentumInternationalIncome(A)-2.72114.2716.6432.543

VARIABLE TERM FUNDS

StyloGlobalBondPrescientFoF(A1)-1.29515.71610.351

AFInvestmentsGlobalFixedIncome(A)1.81316.43510.1826.733

PrudentialGlobalBondFeeder(A)4.51216.56410.0937.191

StanlibGlobalBondFeeder(A)9.14117.4519.1547.152

LauriumAfricaUSDBondPrescient(A1)6.89

PrescientChinaBalancedFeeder(A1)15.8534.3112.6011.12

REGIONAL INTEREST-BEARING

VARIABLE TERM FUNDS

NewfundsS&PNamibiaBondETF18.17

REGIONAL REAL ESTATE

GENERAL FUNDS

*CloudAtlasAMIRealEstateex-SAETF-10.98-28.30

TAXES AND DEDUCTIONS FOR THE 2020/21 TAX YEAR

INCOME TAX RATES FOR INDIVIDUALS AND SPECIAL TRUSTS* TAXABLEINCOMERATEOFTAX

R1-R20590018%oftaxableincome

R205901-R321600R37062+26%oftaxableincomeaboveR205900

R321601-R445100R67144+31%oftaxableincomeaboveR321600

R445101-R584200R105429+36%oftaxableincomeaboveR445100

R584201-R744800R155505+39%oftaxableincomeaboveR584200

R744801-R1577300R218139+41%oftaxableincomeaboveR744800

R1577301andaboveR559464+45%oftaxableincomeaboveR1577300

* Trusts established for the benefit of disabled people and testamentary trusts established for the benefit of minor children. All other trusts pay income tax at a flat rate of 45%.

REBATESTAXTHRESHOLDS

Primary(appliestoalltaxpayers)R14958

Secondary(persons65andolder)R8199

Tertiary(persons75andolder)R2736

EXEMPTIONSONLOCALINTEREST

Belowage65R83100

Age65tobelowage75R128650

Age75andoverR143850

Individualsunder65R23800ayearIndividuals65andoverR34500ayear

DEDUCTIONS FOR RETIREMENT FUND CONTRIBUTIONS

Amountscontributedtopension,providentandretirementannuity(RA)fundsaredeductiblebyfundmembers.Amountscontributed byemployersandtaxedasfringebenefitsaretreatedascontributionsbytheindividualemployee.Thedeductionislimitedto27.5%of thegreaterofremunerationforPAYEpurposesortaxableincome(bothexcludingretirementfundlumpsumsandseverancebenefits).

ThedeductionisfurtherlimitedtothelowerofR350000or27.5%oftaxableincomebeforetheinclusionofataxablecapitalgain.Any contributionsthatexceedthelimitsarecarriedforwardtothenexttaxyearanddeemedtobecontributedinthatyear.Theamounts carriedforwardarereducedbycontributionssetoffwhendeterminingtaxableretirementfundlumpsumsorRAs.

DEDUCTIONS FOR MEDICAL AND DISABILITY EXPENSES

All taxpayers: Ifyoucontributetoamedicalscheme,youareentitledtoataxrebate(referredtoasamedicalschemecontributionstax credit)ofuptoR319eachfortheindividualwhopaidthecontributionsandthefirstdependantonthemedicalschemeanduptoR215 amonthforeachadditionaldependant.

Additional tax credit for taxpayers under 65 years: Youareentitledtoataxcreditof25%ofanamountequaltoyourqualifying medicalexpensesplusanamountbywhichyourmedicalschemecontributionsexceedfourtimesthemedicalschemecontributiontax creditforthetaxyear,limitedtotheamountthatexceeds7.5%oftaxableincome(excludingseveranceorretirementfundlumpsums).

Additional tax credit for taxpayers with a disability and/or with a disabled family member or taxpayers over 65 years: Youareentitledtoataxcreditof33.3%ofyourqualifyingmedicalexpensesplus33.3%oftheamountbywhichyourmedicalscheme contributionsexceedthreetimesthemedicalschemecontributiontaxcreditforthetaxyear.

TAX ON LOCAL AND FOREIGN DIVIDENDS

DividendsreceivedbyindividualsfromSouthAfricancompaniesaregenerallyexemptfromincometax,butdividendstaxatarateof20% iswithheldbytheentitiespayingthedividendstoindividuals.Dividendsreceivedbyresidentindividualsfromrealestateinvestment trusts(Reits)aresubjecttoincometax.Non-residentsinreceiptofthosedividendsaresubjectonlytodividendstax.Mostforeigndividends receivedbyindividualsfromforeigncompanies(ashareholdingoflessthan10%intheforeigncompany)aretaxableatamaximum effectiverateof20%.

CALCULATE REAL AFTER-TAX RETURNS ON INTEREST-BEARING INVESTMENTS

CPI INFLATION RATE: 3.0% IN SEPTEMBER 2020

MARGINALTAXBRACKETMARGINALTAXRATEBREAKTHROUGHPOINT

R0toR20590018%3,7

R205901toR32160026%4,1

R321601toR44510031%4,3

R445101toR58420036%4,7

R584201toR74480039%4,9

R744801toR157730041%5,1

R1577301andabove45%5,5

Therealrateofreturnonmoneyyouinvestisaffectednotonlybyinflation,butalsobytherateatwhichyouaretaxed.Thelowerthe inflationrate,thebetteryourrealrateofinterestislikelytobe.Tocalculateyourrealreturn,firstworkoutwhatyourafter-taxreturn willbeandthensubtracttheinflationrate.Thetableprovidesthemarginaltaxbracketsandtheinterestratesatwhichyouwillstart toreceiveareal(after-tax)rateofreturnonyourmoneyifitistaxedatthatrate.Thecalculationsignorethefactthatinthe2020/21 taxyear,thefirstR23800(R34500ifyouareover65yearsofage)youearnininterestistax-free.Anyinterestyoureceiveabove theexemptamountistaxedatyourmarginaltaxrate.

PROVISIONAL TAX

Aprovisionaltaxpayerisanypersonwhoearnsincome bywayofremunerationfromanunregisteredemployer incomethatisnotremunerationoranallowanceoran advancepayablebyhisorheremployer.Youareexempt fromthepaymentofprovisionaltaxifyoudonotcarryon anybusinessandyourtaxableincome:

•Willnotexceedthetaxthresholdforthetaxyear;or

•Frominterest,dividends,foreigndividendsandtherental offixedpropertyandremunerationfromanunregistered employerwillbeR30000orlessfor thetaxyear.

Deceasedestatesarenotprovisionaltaxpayers.

CAPITAL GAINS TAX

INCLUSION RATES

• Individuals special trusts and individual policyholder funds: 40%• Other taxpayers: 80%

MAXIMUM EFFECTIVE RATES

• Individuals and special trusts: 18%

• Other trusts: 36%• Companies: 22.4%

SOME OF THE EXCLUSIONS

•R2milliongain/lossondisposalofprimaryresidence

•AnnualexclusionofR40000toindividualsandspecial trusts

•R300000intheyearofdeath(insteadoftheannual exclusion)

•Retirementbenefits

•Mostpersonaluseassets

•Paymentsinrespectoforiginallong-terminsurance policies

•R1.8millionforindividuals(atleast55yearsofage)when asmallbusinesswithamarketvaluethatdoesnotexceed R10millionisdisposedof.

ESTATE DUTY

Rate: 20%onthefirstR30m;25%onestatesabove R30m.AmountsinanestateuptoR3.5marenottaxed. Forthesecond-dyingspouse,amountsuptoR7mlessthe exemptionusedbythefirst-dyingspousearenottaxed.

TAX-FREE SAVINGS ACCOUNTS

Noincometaxoninterest,dividendswithholdingtaxor capitalgainstax.ContributionsarelimitedtoR33000a year,uptoR500000overyourlifetime.Contributionsthat exceedthelimitswillbetaxedat40%.

DONATIONS TAX

•Donationstaxpayablebythedonorisleviedatarateof 20%onpropertydonatedwithavalueuptoR30million. Therateonpropertywithavalueof morethanR30millionis25%.

•ThefirstR100000ofpropertydonatedineachyear toanaturalpersonisexemptfromdonationstax.

•Donationsbetweenspousesareexemptfrom donationstax.

•Taxdeductionsondonationstoapprovedpublicbenefit organisationsarelimitedto10%oftaxableincomebefore deductingmedicalexpenses(excludingretirementfund lumpsumsandseverancebenefits).

RETIREMENT FUND LUMP-SUM WITHDRAWAL BENEFITS

LUMPSUMRATEOFTAX

R0toR250000%oftaxableincome

R25001toR66000018%oftaxableincomeaboveR25000

R660001toR990000R114300plus27%oftaxableincomeaboveR660000

R990001andaboveR203400plus36%oftaxableincomeaboveR990000

Retirementfundlump-sumwithdrawalbenefitsconsistoflumpsumsfromapension,pension preservationprovident,providentpreservationorretirementannuityfundonwithdrawal(including assignmentintermsofadivorceorder).

Thetaxonaretirementfundlump-sumwithdrawalbenefit(X)isequalto:

•ThetaxdeterminedbyapplyingthetaxtabletotheaggregateoflumpsumXplusallother retirementfundlump-sumwithdrawalbenefitsaccruingfromMarch2009,allretirementfund lump-sumbenefitsaccruingfromOctober2007andallseverancebenefitsaccruingfromMarch 2011;less

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateofallretirementfundlump-sum withdrawalbenefitsaccruingbeforelump-sumXfromMarch2009,allretirementfundlump-sum benefitsaccruingfromOctober2007andallseverancebenefitsaccruingfromMarch2011.

RETIREMENT FUND LUMP-SUM BENEFITS OR SEVERANCE BENEFITS

LUMPSUMRATEOFTAX

R0toR5000000%oftaxableincome

R500001toR70000018%oftaxableincomeaboveR500000

R700001toR1050000R36000plus27%oftaxableincomeaboveR700000 R1050001plusR130500plus36%oftaxableincomeaboveR1050000

Retirement fund lump-sum benefits consistoflumpsumsfromapension,pension preservation,provident,providentpreservationorretirementannuityfundondeathretirement orterminationofemploymentduetoattainingtheageof55,sickness,accident,injury, incapacity,redundancyorterminationoftheemployer’strade.

Severance benefits consistoflumpsumsfromorbyarrangementwithanemployerdue torelinquishment,termination,loss,repudiation,cancellationorvariationofaperson’soffice oremployment.

Taxonaretirementfundlump-sumbenefitoraseverancebenefit(Y)isequalto:

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateoflump-sumorseverance benefitYplusallotherretirementfundlump-sumbenefitsaccruingfromOctober2007 andallretirementfundlump-sumwithdrawalbenefitsaccruingfromMarch2009and allotherseverancebenefitsaccruingfromMarch2011;less

•Thetaxdeterminedbyapplyingthetaxtabletotheaggregateofallretirementfundlumpsumbenefitsaccruingbeforelump-sumYfromOctober2007andallretirementfundlump-sum withdrawalbenefitsaccruingfromMarch2009andallseverancebenefitsaccruingbeforeseverance benefitYfromMarch2011.

TRANSFER DUTY RATES

VALUEOFPROPERTYR

ATE

R1-R10000000%

R1000001-R13750003%ofthevalueaboveR1000000

R1375001-R1925000R11250+6%ofthevalueaboveR1375000

R1925001-R2475000R44250+8%ofthevalueaboveR1925000

R2475001-R11000000R88250+11%ofthevalueaboveR2475000

R11000001andaboveR1026000+13%ofthevalueaboveR11000000

TransferdutyispayableontransactionsthatarenotsubjecttoVAT.

SARS INTEREST RATES

RATESOFINTERESTFROM1FEBRUARY2020:

Fringe benefits - interest-free or low-interest loan (official rate): 7.25%ayear

RATESOFINTERESTFROM1NOVEMBER2019:

Late or underpayment of tax: 10%ayear

Refund of overpayment of provisional tax: 6%ayear

Refund of tax on successful appeal or where the appeal was conceded by the South African Revenue Service: 10%ayear

Refund of VAT or late payment of VAT: 10%

WHO DOES NOT HAVE TO SUBMIT A TAX RETURN?

Youdonothavetosubmitareturnif:yourtotalpre-taxearningsfromoneemployerwerelessthan

R500000forthetaxyear,youhavenoothersourcesofincome(forexamplerentalorinterest)and therearenodeductionsthatyouwanttoclaim.

TheinformationonthesepagesisfromtheSouthAfricanRevenueService’s(SARS)2020BudgetTaxGuide.

TRAVELLING ALLOWANCES

Ratesperkilometre,whichmaybeusedindeterminingtheallowabledeductionforbusinesstravel againstanallowanceoradvancewhereactualcostsarenotclaimed,aredeterminedbyusingthe followingtable:

VALUEOFTHEVEHICLEFIXEDCOSTFUELCOSTMAINTENANCE (INCLUDINGVAT)PERYEARPERKMCOSTPERKM

Note:

•80%ofthetravellingallowancemustbeincludedintheemployee’sremunerationforthepurposes ofcalculatingPAYE.Thepercentageisreducedto20%iftheemployerissatisfied thatatleast80%oftheuseofthemotorvehicleforthetaxyearwillbeforbusinesspurposes.

•Nofuelcostmaybeclaimediftheemployeehasnotbornethefullcostoffuelusedinthe vehicleandnomaintenancecostmaybeclaimediftheemployeehasnotbornethefull costofmaintainingthevehicle(forexamplethevehicleiscoveredbyamaintenanceplan).

•Thefixedcostmustbereducedonapro-ratabasisifthevehicleisusedforbusinesspurposes forlessthanafullyear.

•Theactualdistancetravelledduringataxyearandthedistancetravelledforbusinesspurposes substantiatedbyalogbookareusedtodeterminethecoststhatmaybeclaimedagainsta travellingallowance.

Alternative simplified method: Whereanallowanceoradvanceisbasedontheactualdistancetravelledbytheemployeefor businesspurposesnotaxispayableonanallowancebyanemployertoanemployeeuptothe rateof398centsperkilometreregardlessofthevalueofthevehicle.However,thisalternativeisnot availableifothercompensationintheformofanallowanceorreimbursement(otherthan forparkingortollfees)isreceivedfromtheemployerinrespectofthevehicle.

FRINGE BENEFITS: EMPLOYER-OWNED VEHICLES

•Thetaxablevalueis3.5%ofthedeterminedvalue(thecashvalueincludingVAT)amonthofeach vehicle.Wherethevehicleis:

–Thesubjectofamaintenanceplanwhentheemployeracquiredthevehicle,thetaxablevalueis 3.25%ofthedeterminedvalue;or

–Acquiredbytheemployerunderanoperatinglease,thetaxablevalueisthecostincurredbythe employerundertheoperatingleaseplusthecostoffuel.

•80%ofthefringebenefitmustbeincludedintheemployee’sremunerationforthepurposeof calculatingPAYE.Thepercentageisreducedto20%iftheemployerissatisfiedthatatleast80%of theuseofthevehicleforthetaxyearisforbusinesspurposes.

•Onassessmentthefringebenefitforthetaxyearisreducedbytheratioofthedistancetravelledfor businesspurposes(substantiatedbyalogbook)dividedbytheactualdistancetravelledduring thetaxyear.

•Onassessmentfurtherreliefisavailableforthecostofthelicence,insurance,maintenanceand fuelforprivatetraveliftheemployeehasbornethefullcostthereofandifthedistancetravelledfor privatepurposesissubstantiatedbyalogbook.

SUBSISTENCE ALLOWANCES AND ADVANCES

Ifyouareobligedtospendatleastonenightawayfromyourusualplaceofresidenceonbusiness andyoureceiveanallowanceoradvanceforaccommodationinSouthAfrica,whichistopayfor:

• Meals and incidental costs: R452adayisdeemedtohavebeenspent;or

• Incidental costs only: R139foreachdayisdeemedtohavebeenspent. WheretheallowanceoradvanceisforaccommodationoutsideSouthAfrica,aspecificamountper countryisdeemedtohavebeenspent.Refertowww.sars.gov.za>Legalcounsel>Secondary legislation>Incometaxnotices>2018.

TURNOVER TAX FOR MICRO BUSINESSES

FinancialyearsthatendonanydatebetweenMarch12020andFebruary282021.

TAXABLETURNOVERRATEOFTAX

UptoR3350000%ofturnover

R335001toR5000001%oftaxableturnoveraboveR335000

R500001toR750000R1650plus2%oftaxableturnoveraboveR500000

R750001andaboveR6650plus3%oftaxableturnoveraboveR750000

ANNUITY RATES

RatesvalidforNovember2,2020.*LibertyratesforJuly1,2020.Informationsuppliedbytherelevantlifeassurancecompanies.

COMPULSORY ANNUITIES

Liberty*R5362.52R5637.21R6052.61R6625.37

MetropolitanR5730.37R6042.75R6456.05R6920.67

MomentumR5269.77R5834.63R6540.37R7303.18

OldMutualR6070.57R6291.76R6592.60R6965.17

SanlamR5804.96R6225.81R6658.66R7129.50

FEMALE

Liberty*R5020.87R5278.77R5632.73R6135.31

MetropolitanR5039.34R5344.42R5776.30R6242.64

MomentumR4856.95R5339.16R5948.65R6720.49

OldMutualR5755.83R5953.90R6221.13R6568.10

SanlamR5261.15R5667.01R6093.86R6564.70

VOLUNTARY ANNUITIES

Liberty*R5362.52R5637.21R6052.61R6625.37

MetropolitanR5730.37R6042.75R6456.05R6920.67

MomentumR5169.38R5708.14R6383.55R7208.74

OldMutualR6070.57R6291.76R6592.60R6965.17

SanlamR5804.96R6225.81R6658.66R7129.50

FEMALE

Liberty*R5020.87R5278.77R5632.73R6135.31

MetropolitanR5039.34R5344.42R5776.30R6242.64

MomentumR4774.18R5232.63R5811.81R6551.98

OldMutualR5755.83R5953.90R6221.13R6568.10

SanlamR5261.15R5667.01R6093.86R6564.70

COMPULSORY JOINT LIFE AND SURVIVORSHIP ANNUITIES

Liberty*R4785.03R5009.11R5307.35R5757.54

MetropolitanR4714.72R4948.61R5282.44R5769.76

MomentumR4486.31R4890.93R5413.02R6111.94

OldMutualR5479.43R5632.75R5853.24R6161.26

SanlamR4951.26R5340.13R5734.99R6164.84

VOLUNTARY JOINT LIFE AND SURVIVORSHIP ANNUITIES

Liberty*R4785.03R5009.11R5307.35R5757.54

MetropolitanR4714.72R4948.61R5282.44R5769.76

MomentumR4418.17R4802.23R5294.90R5957.74

OldMutualR5479.43R5632.75R5853.24R6161.26

SanlamR4951.26R5340.13R5734.99R6164.84

OFFSHORE ALLOWANCES

HOW MUCH YOU CAN TAKE OUT OF SOUTH AFRICA

Offshore investment allowance: R10millioneachyear

Discretionary allowance for adults: R1millioneachyear

Travel allowance for children under 18: R200000eachyear

ThetaxoninternationalairtravelisR190perpassengerorR100forflightstoSouthernAfricanCustomsUnioncountries.

ABOUT THE TABLES

Thesetablesshowinitialmonthlypensionsguaranteedfor10yearsand thenforlifeif,attheageslisted,youbuyalifeannuity(seedefinition below)withR1million.Inthesetables.theamountescalatesatarate of6percentayear.

WHAT IS AN ANNUITY?

Anannuityisapaymentyoureceiveannually.Thelifeassurance industryhasadaptedthewordtomeananyamountyoureceive regularly(normallymonthly)fromaninvestment,usuallyinthe formofapension,whenyouretire.

COMPULSORY PURCHASE ANNUITY

Thismustbeboughtwithatleasttwo-thirdsofthebenefitsyou receivefromyourpensionfundorretirementannuitywhenyou retire(providentfundsareexcludedfromthisrequirement).Ifyou a reamemberofadefined-benefitpensionfund,theannuityis normallyprovidedtoyouwithoutanychoice.

VOLUNTARY ANNUITY

Thisisaninvestmentyouchoosetomakewithalumpsumfromany source.Withvoluntaryannuities,youcaninvestforafixedperiod. Forexample,for10years–orforlife.Notethatcompulsoryand voluntaryannuitiesaretaxeddifferently,bothontheinvestment itselfandonyourincomefromit.Thisisbecauseyoubuyacompulsory annuitywithpre-taxsavingswhereasyoubuyavoluntaryannuity withafter-taxsavings.

TRADITIONAL (LIFE) ANNUITY

Youbuythistypeofannuityfromalifeassurancecompany.Youare guaranteedafixedincomeforlife,whichmayormaynotescalate annuallyatacertainrate,dependingonwhetheryouhavealevelor escalatingannuity.Intheinitialyears,youwillreceivelessfroman escalatingannuitythanfromalevelannuitybutthelevelannuity willbeerodedovertheyearsbyinflation.Becausethelifeassurance companytakesonyourlongevityrisk,yourinvestmentnormallydies withyou.Youcan,however,buyanannuity“guaranteedforXyears andthenforlife”,whichmeansyournominatedheirwillreceivethe incomeifyoudiebeforetheXyearsareup.AfterXyears,theannuity dieswithyou.Jointlifeannuitiesarebasedonapensionbeingpaid tothesurvivingspouseafterthedeathofhisorherpartner.

LIVING (INVESTMENT-LINKED) ANNUITY

Youbuythistypeofannuityfromanassetmanagerandcanchoose theunderlyingInv.Youmustdecideeachyearhowmuchofyour investmentyouwanttodrawdownasapensionwithaminimum of2.5percentandamaximumof17.5percent.Whenyoudie,what isleftofyourinvestmentispassedontoyourheirs.However,you t aketheriskofoutlivingyourcapital.