Sasfin Investment Deposit Rates IFA"S - 14 April 2014

Click link to view Sasfin investment deposit rates for the 14th of April 2014.  
http://daberistic.com/Documents/Invest/140417_Sasfin_Treasury_Rates_IFA_as_at_14042014.pdf

First Quarter Market Observations – Prudential

The first quarter of 2014  proved to be  one of contrasting sentiments in global markets. Developed markets started the year bullishly, but sentiment was  subsequently dampened by poor weather in the US, slowing growth in China  and  rising  geopolitical concerns in Ukraine. In contrast, January started very bearishly for emerging markets in the wake of the US Fed’s tapering, but the balance of the quarter saw gradually improving investor sentiment. Click link so read more

http://daberistic.com/Documents/Invest/140417_Q1_Market_Observations-14_Apr_2014.pdf

Allan Gray Fund Factsheets

Allan Gray is one of the leading asset managers in South Africa. Herewith its latest monthly fund factsheets, with commentary.  Click link to view the presentation
http://daberistic.com/Documents/Invest/140411_Unit_trust_fund_factsheets_March_2014.pdf

Missing puzzle piece – STANLIB

Chief economist Kevin Lings at Stanlib makes a presentation on South Africa’s economic puzzle. Internationalisation, Macro-economic stability, Social goods and services, Business infrastructure and support.  Click on link to view presentation

http://daberistic.com/Documents/Invest/140417_Missing_Puzzle_Piece-STANLIB-Kevin_Lings.pdf

Tax and retirement

Government uses the tax system to encourage you to save for retirement and to discourage you from cashing in your savings before you retire, Jenny Gordon, Alexander Forbes’s head of retail legal advice, says. This is the second article in a series of reports on the Personal Finance/Alexander Forbes Ready Set Retire conferences that were held around South Africa in March.
 
You must take tax into consideration when you plan for retirement, but tax should not be the overriding consideration, Jenny Gordon says.
“Tax is a tool you use. Where possible, you take advantage of the tax opportunities,” she says.
The state provides a number of tax incentives to encourage saving for retirement and help you in retirement, Gordon says.
She says the retirement tax structure is based on three legs: exempt, exempt, taxed.
* Exempt. You can deduct – subject to certain limits – from your income contributions made to a tax-incentivised retirement product, such as an occupational retirement fund or a retirement annuity fund.
* Exempt. You do not pay capital gains tax (CGT), dividends withholding tax or income tax on the investment growth earned on savings in a retirement fund.
* Taxed. You pay tax, at your marginal rate of income tax, on your pension.
However, Gordon says, retirees still enjoy tax breaks, including:
Your marginal tax rate in retirement is usually lower than the rate you were on while you were working. As a result, you will pay less tax on every rand you receive as a pension.
* There is no CGT, dividends withholding tax or income tax on the growth in a living annuity investment portfolio bought with retirement fund savings.
* At retirement, you can withdraw up to R500 000 tax-free from your retirement savings.
* You receive tax rebates in addition to the primary rebate (R12 726 in the 2014/15 tax year) that applies to all taxpayers. At age 65, you are entitled to the secondary rebate (R7 110), and at age 75 you receive the tertiary rebate (R2 367).
* Amounts in a tax-incentivised savings vehicle do not form part of your estate when estate duty or CGT is calculated. (This concession also applies before retirement.)
* Medical tax credit. Taxpayers over 65 are subject to the medical tax credits from this tax year. Medical tax credits operate like an additional rebate, Gordon says.

All medical scheme members are entitled to deduct medical scheme contributions up to R257 a month each for the main member and the first dependant and R172 a month for each additional dependant. In addition, people over 65 are entitled to a credit of 33.3 percent of medical contributions above a threshold, plus unrecovered expenditure.

Gordon says the tax incentives are there to encourage you to save for retirement. “The state wants to make sure you do not live on the state in retirement.”
However, the tax incentives are not unlimited. “The state wants us to have sufficient income in retirement – not a lavish retirement.”
As a result of the limits, your retirement-saving strategy must include products apart from retirement funds, Gordon says.

Most people believe that contributions to an occupational retirement fund will provide sufficient savings for retirement, she says.
“While a pension fund provided by your employer is an excellent springboard, it is unlikely to give you sufficient money for a financially secure retirement.”
People often aren’t concerned about saving, or saving additional amounts outside of a retirement fund, until they are older. By then, you might be using all the tax incentives for saving in a retirement fund. To reach your savings goal, you will have to consider products that don’t provide tax deductions on the contributions but offer lower rates of tax on the income you receive in retirement, Gordon says.

Products are affected in different ways by income tax, CGT, dividends tax and estate duty. You need to find out how tax will affect the net return on the investment.
The tax could be payable in your hands when you receive a benefit, as is the case with unit trust funds, or be tax-free in your hands, as with an endowment policy where the life assurance company pays the tax on your behalf.

Gordon says that government’s proposed tax-incentivised savings product will be a good option, because none of the returns will be taxed. However, there will be a limit on the contributions: R30 000 a year or R500 000 over your lifetime.
“For most of us, tax is a difficult concept to get our heads around. We are not always on top of the latest tax implications and how these may affect our financial plans.”
As a result, it is important regularly to obtain financial advice that takes into account the latest tax laws and regulations, she says. Click link to read more

http://www.iol.co.za/business/personal-finance/financial-planning/estate/tax-and-retirement-1.1671571#.U0frnvIaKP8

PSG Investment Outlook

PSG Asset Management is an up-and-coming asset manager, with excellent track record. In this presentation they share their investment philosophy and process, their investment outlook as well as the stocks they like. Click link to view presentation.

http://daberistic.com/Documents/Invest/140402_PSG_Outlook_Presentation.pdf

Allan Gray Offshore Presentation

Allan Gray shares the reasons to invest offshore, and an overview of their offshore funds via their sister company Orbis. Click link to view presentation

http://daberistic.com/Documents/Invest/140402_Allan_Gray_Offshore_Presentation.pdf

Raging Bull winners: South Africa’s best unit trust funds and management companies

Raging Bull winners: South Africa’s best unit trust funds and management companies

TOP OUTRIGHT PERFORMERS
The top performers to December 2013 on a straight performance basis in asset and sector-specific ASISA categories (including the main Multi-Asset sub sectors).
Methodology: Funds are ranked on a 3-year lump sum NAV to NAV basis (i.e. entry costs not taken into account) with income distributions reinvested at the ex-dividend date.
Calculations by ProfileData

TOP OUTRIGHT PERFORMERS ON A STRAIGHT PERFORMANCE BASIS

Best South African Equity Funds
4 certificates

• Best SA Equity Industrial Fund : SIM Industrial Fund (R class) collected by Marlo Schultz
• Best SA Equity Financial Fund: Nedgroup Investments Financials Fund (R Class)  collected by Matthew de Wet
• Best SA Equity Resources Fund: Nedgroup Investments Mining and Resource Fund (R class) collected by Matthew de Wet
• Best SA Equity Smaller Companies Fund: Nedgroup Investments Entrepreneur Fund (R Class) collected by Matthew de Wet

• The Raging Bull Award for the Best South African Equity General Fund goes to: MAZI CAPITAL MET EQUITY FUND (A1 Class)  collected by Malungelo Zilimbola

BEST South African Multi-Asset Funds excluding Multi-Asset Income Funds
4 certificates

• Best SA Multi-Asset Flexible Fund 36ONE MET Flexible Opportunity Fund collected by Cy Jacob
• Best SA Multi-Asset Low Equity Fund Prudential Inflation Plus Fund (A Class) collected by Michael Moyle
• Best SA Multi-Asset Medium Equity Fund 27 Four Balanced Prescient Fund of Funds (A1 Class) collected by Nadir Thokan
• Best SA Multi-Asset High Equity Fund Rezco Prudential Fund (A Class) collected by Rob Spanjaard

BEST South African Interest Bearing and Multi-Asset Income Funds
3 certificates

• Best SA Interest-Bearing Variable-Term Fund STANLIB Bond Fund (A Class) collected by Victor Mphaphuli
• Best SA Interest-Bearing Short-Term Fund Investment Solutions Income Fund (A Class) collected by Chris Hart
• Best SA Multi-Asset Income Fund Coronation Strategic Income Fund (A Class) collected by Mark le Roux

• The  Raging Bull Award for the Best South African Interest-Bearing Fund goes to : Coronation Strategic Income Fund (A Class) collected  by  Mark le Roux

BEST South African Real Estate Fund –
1 certificate to Nedgroup Investments Property Fund (A Class) collected by Matthew de Wet

BEST (SA Domiciled) Global and Worldwide Funds
       6 certificates

• Best (SA Domiciled) Global Multi-Asset Flexible Fund RE-CM Global Feeder Fund (A Class) collected by Jan van Niekerk
• Best (SA Domiciled) Global Multi-Asset Low Equity Fund Coronation Global Capital Plus (ZAR) feeder Fund (A Class) collected by Louis Stassen
• Best (SA Domiciled) Global Multi-Asset High Equity Fund Coronation Global Managed (ZAR) Feeder Fund (A Class) collected by Gavin Joubert
• Best (SA Domiciled) Global Real Estate Fund STANLIB Global Property Feeder Fund (A Class ) collected by Keillen Ndlovu
• Best (SA Domiciled) Regional Interest-Bearing Short-Term Fund ABSA Pound Sterling Income Fund collected by Greg Kettles
• Best (SA Domiciled) Global Interest-Bearing Variable –Term Fund Prudential Global High Yield Bond Fund of Funds collected by Michael Moyle
• Best (SA Domiciled) Worldwide Multi-Asset Flexible Fund Coronation Optimum Growth Fund (A Class) collected by Gavin Joubert

• The Raging Bull for the Best (SA Domiciled) Global Equity General Fund goes to Old Mutual Global Equity Fund (R Class) collected by Diane Radley

BEST (FSB – approved) Offshore Funds
6 certificates

• Best (FSB-approved) Offshore Europe Equity General Fund Templeton Euroland Fund collected by Lloyd Fisher
• Best (FSB-approved) Offshore Far East Equity General Fund Orbis SICAV Asia Ex-Japan Equity Fund collected by Seema Dala
• Best (FSB-approved) Offshore USA Equity General Fund Lloyds Investment Funds Limited North American Fund collected by Alex Dearman
• Best (FSB-approved) Offshore Global Real Estate Fund Oasis Crescent Global Property Equity Fund (Ireland)   collected by Adam Ebrahim
• Best (FSB-approved) Offshore Global Fixed Interest Bond Fund STANLIB Multi Manager Global Bond Fund collected by Malcolm Holmes
• Best (FSB-approved) Offshore Global Asset Allocation Fund Coronation Global Managed (USD) Fund collected by Louis Stassen

      The Raging Bull for the Best (FSB-approved) Offshore Global Equity Fund Contrarius Global Equity Fund (Ireland) collected by Heaton van der Linde

Total 25 certificates/ 4 awards

TOP RISK-ADJUSTED PERFORMERS: Certificate and Raging Bull presentations 

Top performers to December 2013 on a risk-adjusted basis in the multi- asset allocation and real estate sectors plus the largest other ASISA sectors based on market capitalisation.  The PlexCrown fund rating methodology, which incorporates risk-adjusted returns and consistency of performance, is used to rate and rank funds for these awards. Passive funds are not rated and funds in non-rated sub categories and sectors (eg Money market funds) are not taken into consideration.
To qualify for a rating a fund must have a return history of at least five years in a sub category /sector with at least five qualifying funds

Risk adjusted methodology: The PlexCrown system combines risk-adjusted returns based on performance statistics from ProfileData with standard risk measures, consistency measures, and measures of downside risk and managerial skill.  Performance over five-year and three-year periods is taken into account. 

Presentation of Certificates/Raging Bulls for Top Risk-Adjusted performers 

TOP PERFORMERS ON A RISK-ADJUSTED BASIS

• Raging Bull for the Best South African General Equity Fund on a risk-adjusted basis goes to Marriott Dividend Growth Fund (R Class) collected by Lourens Coetxee

BEST South African Multi-Asset Funds (excluding Multi-Asset Income Funds) on a risk-adjusted basis
3 certificates

• Best SA Multi-Asset Low Equity Fund 27 Four Stable Prescient Fund of Funds (A1 Class)  collected by Fatima Vawda
• Best SA Multi-Asset Medium Equity Fund Prescient Positive Return QuantPlusFund (A1 Class) collected by Liang Du
• Best SA Multi-Asset High Equity Fund Olympiad MET Managed Fund of Funds (A Class) collected by Wynand Steyn

2 awards

• The Raging bull for the Best SA Multi-Asset Equity Fund goes to: Prescient Positive Return QuantPlus Fund (A1 Class) collected by Liang Du
• The Raging Bull for the Best SA Multi-Asset Flexible Fund goes to: 36ONE MET Flexible Opportunity Fund collected by Cy Jacob

BEST South African Interest Bearing and Multi-Asset Income Funds on a risk-adjusted basis
4 certificates

• Best SA Interest-Bearing Variable-Term Fund Allan Gray Bond Fund (A Fund)  collected by Jeanette Marais
• Best SA Interest-Bearing Short-Term Fund Nedgroup Investments Core Income Fund (B Class) collected by Matthew de Wet
• Best SA Multi-Asset Income Fund Saffron MET Opportunity Income Fund (A Class) collected by Brandon Quinn
• BEST South African Real Estate Fund on a risk-adjusted basis– Oasis Property Equity Fund (D Class)  collected by Adam Ebrahim

BEST (SA Domiciled) Global and Worldwide Funds on a risk – adjusted basis
       4 certificates

• Best (SA Domiciled) Global Equity General Fund Old Mutual Global Equity Fund (A Class) collected by Diane Radley
• Best (SA Domiciled) Global Multi-Asset High Equity Fund Investec Global Strategic Managed Feeder Fund (A Class) collected by Jaco van Tonder
• Best (SA Domiciled) Global Multi-Asset Flexible Fund RE-CM Global Feeder Fund (A Class) collected by Jan van Niekerk
• Best (SA Domiciled) Worldwide Multi-Asset Flexible Fund Foord Flexible Fund of Funds (R Class) collected by Mario Schoeman

BEST (FSB – approved) Offshore Funds on a risk-adjusted basis
4 certificates

• Best (FSB-approved) Offshore Far East Equity General Fund Orbis SICAV Asia Ex-Japan Equity Fund collected by Seema Dale
• Best (FSB-approved) Offshore Global Real Estate Fund Oasis Crescent Global Property Equity Fund ( Ireland)  collected by Adam Ebrahim
• Best (FSB-approved) Offshore Global Fixed Interest Bond Fund STANLIB Global Bond Fund collected by Paul Hansen
• Best (FSB-approved) Offshore Global Equity General Fund Franklin Global Small-MidCap Growth Fund collected by Lloyd Fisher

1 award

• The Raging Bull for the Best (FSB-approved) Offshore Global Asset Allocation Fund goes to

Lloyds Multi Strategy Fund Limited Growth Strategy collected by Alex Dearman

Total 15 certificates and 4 awards

Final: Top Management companies of the Year awards

The unit trust management companies with the most impressive and most consistent overall performance across their families of funds taking into account all factors (performance, risk-management and consistency).
Methodology: The awards are based on the highest average PlexCrown rating for the suite of funds per major asset class managed by each management company, with weights being applied to asset classes. Passive funds are not rated and funds in non-ranked sub – categories and sectors (eg, money market sectors) are not taken into consideration.

The overseas-domiciled management company with the best overall performance across sectors consisting of a suite of five or more non-rand-denominated funds with at least three years’ history:

• The Raging Bull for the OFFSHORE MANAGEMENT COMPANY OF THE YEAR goes to Lloyds  collected by Alex Dearman

BEST South African Management Companies

• SOUTH AFRICAN MANAGEMENT COMPANY OF THE YEAR – 3RD PLACE

Nedgroup investments  collected by Matthew de Wet

• SOUTH AFRICAN MANAGEMENT COMPANY OF THE YEAR – 2ND PLACE

Allan Gray collected by Jeannette Marais

SOUTH AFRICAN MANAGEMENT COMPANY OF THE YEAR: 

The Raging Bull for the SA-domiciled management company with the best overall performance across sectors consisting of a suite of five or more rand-denominated funds with at least a five year history. Asset Class management and fund sizes are incorporated

• Coronation  collected by Louis Stassen

Coronation is top asset manager for fifth time

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For the second year in a row, Coronation Fund Managers was named the South African Management Company of the Year at the Raging Bull Awards for the unit trust industry. This is the fifth time that Coronation has won the coveted Raging Bull for the best management company. Allan Gray was the first runner-up and Nedgroup Investments was third. From left are: Jeanette Marais, a director of Allan Gray; Tony Gibson, director and co-founder of Coronation; Matthew de Wet, head of investments at Nedgroup Investments; Nic Andrew, managing director of Nedgroup Investments; and Ernie Alexander, managing director of ProfileData, which, along with Personal Finance and PlexCrown Fund Ratings, hosted the awards.

Three larger Cape Town-based asset managers took the honours for the domestic management companies of 2013 at this year’s prestigious Raging Bull Awards held at Kirstenbosch in Cape Town this week.

 

Coronation Fund Managers claimed the Raging Bull Award for the Management Company of the Year for a record-breaking fifth time at the ceremony, which was co-hosted by Personal Finance, ProfileData and PlexCrown Fund Ratings.

 

Allan Gray and Nedgroup Investments received certificates for their second and third places in the management company rankings respectively, based on the performance of their funds over five years to the end of last year.

 

Although the “big names” took the top company awards, a number of key awards for fund performance went to boutique managers, including the Raging Bull Award for the best equity fund over three years to the end of last year, which went to Mazi Capital MET Equity Fund, and the Raging Bull Award for the best multi-asset flexible fund on a risk-adjusted basis over five years, which went to the 36ONE MET Flexible Opportunity Fund.

 

The Raging Bull Award for the best offshore global equity fund over three years, among the managers approved by the Financial Services Board (FSB) for South African investors went to Contrarius, a boutique manager based in Jersey, for its Global Equity Fund.

 

The other Raging Bull Awards for performance in the major unit trust sub-categories went to:

* Coronation, for its Strategic Income Fund, which was the best fixed-interest fund over three years to the end of December; and

* Old Mutual, for its Global Equity Fund, which was the best rand-denominated global equity fund over three years.

The Raging Bull Awards for risk-adjusted performance over five years went to:

* Marriott, for its Dividend Growth Fund, which was the best South Africa general equity fund;

* Prescient, for its Positive Return QuantsPlus Fund, which was the best multi-asset equity fund; and

* London-based Lloyds Investment Fund Managers, for its Multi-Strategy (Growth Strategy) Fund, which was the best performer among South African-registered offshore managers in the global asset allocation sector.

 

The leading fund management companies were chosen based on the performance of all their funds under management on a risk-adjusted basis for periods up to five years to the end of 2013.

Coronation, Allan Gray and Nedgroup Investments have been jostling for the top three positions for the past three years, and each of them has been among the top three numerous times in the 18-year history of the Raging Bull Awards.

 

Coronation claimed the award in 2003, 2005, 2006 and 2013, and has been among the top three management companies nine times in the past 18 years of the Raging Bulls.

 

Coronation has also consistently collected Raging Bull Awards and certificates for its funds over the years. This year, in addition to its Raging Bull Award for the best South African fixed-interest fund, it collected five certificates, for its Strategic Income Fund (best multi-asset income fund); Global Capital Plus (ZAR) Fund (best global multi-asset low equity fund); Global Managed (ZAR) Feeder Fund (best global multi-asset high equity fund); Optimum Growth Fund (best worldwide multi-asset flexible fund); and Global Managed Fund (best offshore global asset allocation fund).

 

Allan Gray won the management company of the year award for four years in a row, from 2009 to 2012.

 

This year, Allan Gray collected one certificate for top performance by its Bond Fund on a risk-adjusted basis over five years to the end of last year.

 

Third-placed Nedgroup has been among the top three South African fund managers for the past five years. This year, it scooped four certificates for top performance over three years to the end of last year by its Financials Fund, Mining & Resources Fund, Entrepreneur Fund and Property Fund, and a certificate for the risk-adjusted performance over five years in the interest-bearing short-term sub-category by its Core Income Fund.

 

The offshore fund manager of the year – the top-performing manager on a risk-adjusted basis among the offshore managers with funds approved by the FSB – was awarded to Lloyds Investment Managers, on the basis of its award-winning global asset allocation fund and other top-performing funds.

 

Source: Personal Finance

February 2 2014 at 01:20pm
By Laura du Preez