GTC Q323 September

Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ If Elon can do it, so can we… Reading some of my recent quarterly editorials from past Trendline’s, I reflect on a recurring theme of reporting on legislative changes and how this will or should influence our investment perspectives. Reading through these articles (all in one session), also highlighted my consistent theme of concern, caution, and opposition to some of these changes.   Whilst it has probably been the responsible thing to do – showing our clients who aren’t (or shouldn’t be) legal or technical experts, a perspective of how these tax and retirement fund laws will shape financial savings – I do think I’ve fallen into the same trap that so many South African thought-leaders, commentators and journalists have. I have bemoaned the changes, by-and-large.  For instance, I’ve noted how the Two-pot... Read More

An in-depth market commentary – detailing global and local investment performance over the quarter – with our Asset Management team revealing the technique of astute financial management through the application of compounding interest. Market Overview Q3 2023 Money that multiplies: The power of compounding interest

Samir Narotam Portfolio Manager     _______________________________________________________________________________________________________ Money that multiplies: The power of compounding interest What is the ‘compounding effect’ and how does it work in one’s investment portfolio? Compounding is the process of earning returns on your past returns. It’s one of the most powerful tools in investing, and it can help your investment grow exponentially over time.     Taking an analogy from the Oracle of Omaha – Warren Buffet, think of a snowball rolling down a hill, and with each rotation, it picks up snow and grows.  The larger the snowball, the more snow it accumulates for each rotation and the longer the hill, the more time it has to grow.  To understand the intricacies of compounding, it is helpful to start with a simple example: Imagine that you invest R1 000 in a five-year, 5% fixed... Read More

Jenny Williams Senior Servicing Consultant     _______________________________________________________ Considerations of a long-term well-structured retirement portfolio – Part 3 Navigating retirement planning: Shifting focus from capital appreciation to income generation Last quarter we analysed the difference between pre – and post – retirement portfolio construction and some investment errors we frequently come across.  In this, our third and final article on structuring retirement portfolios, we focus on the appropriate revision of a retirement portfolio once its objective changes from providing capital accumulation to regular income drawdowns. A typical financial journey will take you through various stages beginning with accumulation and (almost always) ending with spending.  Because of this, the investment strategy adopted must change.  Retirement date (and for the purpose of this article, this is defined as when you stop drawing a salary from an employer) necessitates a crucial shift in... Read More

Sabir Bacus Senior Benefit Consultant _______________________________________________________________________________________________________ The already complex South African retirement fund environment, from both a legal and a tax perspective is about to become even more so On 9 June 2023, the National Treasury released two draft bills, the Draft Revenue Laws Amendment Bill and the Draft Revenue Administration and Pension Laws Amendment Bill.  These bills seek to establish the Two-pots retirement system, set to take effect from 1 March 2024.  Other important changes have been drafted into these Bills, which will impact divorce, maintenance orders, disputes between employers and employees, and loans.  We provide a brief summary of these proposed changes. Home loans maximum limits A fund may only permit a maximum of 65% of a member’s benefit, which includes the savings, retirement, and vested components, to be available for the utilisation of a home loan. This... Read More

Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ GTC awarded the PMR Africa Diamond Arrow Award of Excellence 2023 A few weeks ago I attended a breakfast presentation with nine other staff as GTC was awarded the PMR Africa Diamond Arrow Award of Excellence for 2023, and notified that GTC was the highest-ranking recipient in our category. I have written six similar articles since 2018, as GTC has received this same award consistently over this period.  It means as much to me now as it did in 2018.  Repetition and familiarity have not dulled our senses – and I’m not speaking specifically about the PMR award. Much of what we do is repetitive and GTC has been doing it since 1991.  Managing people’s money, whether in their personal capacity or as a member of a retirement fund, is a serious undertaking... Read More