August 12, 2024

Thabo Ntini Consultant – Wealth Management     _______________________________________________________________________________________________________ How does a South African retirement fund work, and more importantly, will it work for me? The introduction of Two-pot prompts some reflection and perhaps introspection as to how relevant an approved retirement fund is in an investors’ financial planning armoury. The sacrosanct nature of approved retirement funds Approved retirement funds in South Africa include pension, provident, and retirement annuity funds.  ‘Approved’ because there are tax deductions permitted, (mostly) favourable tax consequences on the investments made, and some complex tax consequences on the proceeds.  All of this is within the auspicious of SARS, and in terms of promulgated regulations.  Retirement funds have the financial oversight and regulation of FSCA and other government bodies.   Up to 27,5 % of a member’s taxable income can be invested into a retirement fund without... Read More

  David Seligman Fund Manager       _______________________________________________________________________________________________________ Semigration: Would you bet the house on it? Perhaps a uniquely South African word, semigration has been both a noun and a verb in South Africa for the past ten years or more. The already established trend whereby retirees move from the economic hub in the centre of the country to coastal locations, favouring lifestyle over economic activity, has gained momentum and intensity with more economically active South Africans (actively supported by the work-from-home permissions of the Covid-19 years) choosing to move from one urban area to another. Nowhere is this more clear that the move of economically active South Africans from various locations to the Western Cape.  This migratory trend is also in sharp contrast to the historical trend of rural populations moving into South Africa’s economic hub. The economic... Read More

In-depth market commentary – Ready, set… GNU Over the quarter the world continued to grapple with lofty global US Tech valuations, stubborn inflation, incessant conflict in the Middle East, and a somewhat deteriorating geo-political outlook.  At home, we took to the polls to cast our ballot for a better South Africa.  Resulting from this election was an improved functioning cabinet that emerged from the ANC’s clunky attempt to remain in the driving seat of South Africa’s government, albeit with nine passenger parties now. Over the quarter: Local equities ended the quarter up +8.2%, well ahead of Developed Market Equity and Emerging Market Equity indices.  The month of June alone reported a +4.2% gain as investor sentiment turned positive on the back of the South African election results. While the Resources and Industrials sectors drove much of the positive equity market... Read More