NFB Sensible Finance Magazine

Eastern Cape's Community...

PERSONAL FINANCE

A FREE publicationdistributed by NFB Private Wealth Management

p r i v a t e w e a l t h m a n a g e m e n t

Issue 22Nov 2012

NFB

PERSONAL FINANCEMagazine

Eastern Cape's Community...

which is a betterinvestment?



GO GLOBAL OR GO HOMEexpectations are good for

investing internationally





CYBER RISKis your business

protected?


protected?


protected?

UNIT TRUST ORRETIREMENT ANNUITYUNIT TRUST ORRETIREMENT ANNUITYUNIT TRUST ORRETIREMENT ANNUITY

“The best way of preparing for the future is to takegood care of the present, because we know that ifthe present is made up of the past, then the futurewill be made up of the present.

Only the present is within our reach. To care forthe present is to care for the future.”

- Buddha

p r i v a t e w e a l t h m a n a g e m e n t

East London tel no: (043) 735-2000 or e-mail: [email protected]

Port Elizabeth tel no: (041) 582-3990 or email: [email protected]

Johannesburg tel no: (011) 895-8000 or email: [email protected]

Web: www.nfbec.co.za

NFB is an authorised Financial Services Provider

contact one of NFB's private wealth managers:

fortune favours the well-advised

Providing quality retirement,

investment and risk planning

advice since 1985.

editor

Advertising

layout and design

Address

Contributors

Brendan Connellan

[email protected]

Marc Schroeder (NFB East

London), Michelle Wolmarans (NFB

Insurance Brokers), Grant Berndt

(Abdo & Abdo), Andrew Brotchie

(Glacier International), Jeremy

Diviani (NFB Gauteng), Robyne

Moore (NFB East London), Shaun

Murphy & Wade Young (Klinkradt

& Assoc.), Max King (Investec

Asset Management), Eugene Birch

(Birch Bruce), Julie McDonald (NFB

East London), Robert McIntyre

(NVest Securities), Travis McClure

(NFB East London).

Robyne Moore

[email protected]

The views expressed in articles by

external columnists are the views

of the relevant authors and do not

necessarily reflect the views of the

editor or the NFB Private Wealth

Management.

©2012 All Rights Reserved.

No part of this publication may be

reproduced in any form or

medium without prior written

consent from the Editor.

Jacky Horn TA Willow Design

[email protected]

NFB Private Wealth Management

East London Office

NFB House, 42 Beach Road

Nahoon, East London, 5241

Tel: (043) 735-2000

Fax: (043) 735-2001

E-mail: [email protected]

Web: www.nfbec.co.za

sensible finance ED’SLETTERED’SLETTERED’SLETTER

1

Email your full name to [email protected] to subscribe to

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sensible finance nov12

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a sensible reada sensible read

Much research has been done about the recent Marikana

Massacre to properly understand what led to the tragedy,

but what is particularly interesting, is the theory linking the

event to the extent to which the miners are indebted to credit

providers and micro lenders.

There is certainly a place for responsible micro lending. And I

don't only refer to the micro lenders' responsibility, but that of

borrowers too. Unfortunately, besides irresponsible lenders, we also

have an endemic problem of irresponsible borrowing and a lack of

understanding of the potential dangers of debt. Just to briefly

highlight how expensive borrowing can become - in terms of

national credit regulations, a maximum of R1,257.50 in interest and

fees can be charged on a short-term loan of R1 000; that equates to

more than 25% a month, or 300% if annualised!

Micro lending is still a relatively new concept and the original

idea behind the concept, developed by Nobel Peace Prize winner

Muhammed Yunus, was simply that if affordable debt was made

available to very poor, yet entrepreneurial people, the funding

could help them escape from their poverty cycles. Naturally though,

this model is not the one that we see today and people often use

micro loans and credit for unnecessary purposes and for

expenditure that isn't going to generate income, but will rather, in

the long term, deteriorate living standards further.

Marikana is in Rustenburg, a town which has 33 micro loan

offices just belonging to the country's top 3 micro lenders alone, and

it would seem that the strike is not only about what the miners are

actually being paid, but also about how little miners get out each

month after debt repayments. And to a desperate miner riddled

with debt, the only solution may be to make high wage demands

and it is easy to forget the personal responsibility that we also have,

as individuals, to manage our own finances and not live beyond our

means, even when things do seem desperate.

So, with Christmas around the corner, don't get pressured into

spending money that you don't have to buy things that you don't

really even need.

Have a wonderful end of year break and please drive safely.

Please feel free to drop us a line to let us know your thoughts and

ideas about our magazine.

Brendan Connellan - Editor and Director of NFB

SENSIBLE CONTENTSSENSIBLE CONTENTSSENSIBLE CONTENTS

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CYBER RISK

VALIDITY OF INDEMNITY CLAUSES

CASH, INFLATION AND GROWTH ASSETS

CHECKED YOUR LIFE INSURANCE RECENTLY?

GO GLOBAL OR GO HOME

JOLLY, HOLLY HOLIDAY

UNIT TRUST OR RETIREMENT ANNUITY?

STRUCTURING SALARIES

TIME TO BUY EQUITIES?

PLANNING FOR RETIREMENT

Q &A

STEINHOFF

Is your business protected?

Changes brought about by the Consumer ProtectionAct.

What to do in a low interest rate and low inflation environment.

Find out why you should.

Investigating the argument for investing offshore.

Some interesting activities and excursions to explore over the Festive Season.

Not as easy as comparing apples with apples.

A look at basic salary structured packages.

Excellent returns currently to be gained.

Retirement years come sooner than expected; start saving now!

You ask. We answer. Advice column answering your investment, personal finance,life and/or risk insurance questions

Discussing another core holding in NVest's General Equity portfolios.

By Michelle Wolmarans,Manager - NFB Insurance Brokers (Border).

By Grandt Berndt - Abdo & Abdo.

By Jeremy Diviani,Private Wealth Manager - NFB Gauteng.

By Andrew Brotchie, head ofproduct & investment at Glacier International.

ByRobyne Moore - NFB East London.

By Marc Schroeder, Private WealthManger - NFB East London.

By Shaun Murphy & Wade Young -Klinkradt & Associates.

By Max King, Investment AssetManagement.

By Eugene Birch -Birch Bruce Chartered Accountants.

with Travis McClure, Private Wealth Manager -NFB East London.

By RobMcIntyre, Portfolio Manager - NVest Securities.

Source: www.polity.org.za

CYBER RISK

4

Is your business protected? By

, Manager - NFB Insurance

Brokers (Border).

Michelle

Wolmarans

SENSIBLE STRATEGYSENSIBLE STRATEGYSENSIBLE STRATEGY

Nobody can argue that advancements in

technology have made our lives easier

and increased the efficiency and speed

at which we work. However, the use of technology

has increased companies' exposures and can

actually make life more difficult if used in the wrong

way or abused.

Generally, any company with a website or

online presence increases their potential liability

risk. The internet which has birthed worldwide

communication has also “spun” a new web of

liability exposures. Anyone that has a website now

has the legal liabilities of a publisher which include

copyright infringement and defamation. New

legislation continues to create potential liabilities

particularly in the areas of user privacy and domain

name infringement. Statistics reveal that every day

more than 1 million people and organizations fall

victim to cyber attacks. The 2011 attack on Sony's

Play Station network is estimated to have cost the

company $171 million, compromised 100 million

customer accounts and knocked the company off

line for 24 days.

The complexity of the on-line environment

makes it difficult for most businesses to address

these risks. A cyber attack could be devasting to

almost any business resulting in network down-

time, loss of important data and loss of credibility

when customer information is compromised, and

the cost of litigation if a hacker uses the customer

information to access bank accounts or “steals”

customers' identities. Liability risks may arise as a

result of the inadvertent transmission of a computer

virus, sending an e-mail that crashes another party's

network, failure to prevent unauthorized access to

computer systems by a third party or unauthorized

employee, employees selling customers'

information on the black market or a laptop

containing sensitive client information being stolen.

Traditional liability policies do not address internet

exposures and do not provide cover against

economic losses. Insurance companies have

responded to this gap in cover by creating policies

designed for our digital age. These policies can

provide the following protection from cyber attacks

and other technological exposures:

Costs associated with any security breach or

privacy breach, including costs of notifying

consumers when their personal information is

compromised, paying for credit monitoring

services, identity theft insurance or any customer

service required specifically for those affected.

Damages arising from multimedia liability from a

business website or online and/or print media.

Covers loss of income arising out of computer

network down-time.

Cost of recovering lost data.

Expenses arising from “cyber extortion” such as

threats.

Given the potentially huge losses that may

result from a “cyber” incident and the fact that

nearly all companies now rely heavily on

technology and electronic information it is

important that companies are proactive and that

insurance is used as part of a multi-pronged risk

strategy against all the potential risks that are

associated with the ever-evolving cyber world.

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i n s u r a n c e b r o k e r s ( b o r d e r ) ( p t y ) l t d .


CYBER RISK

6

INDEMNITY CLAUSES

The Consumer Protection Act came into effect

on 1 April 2011 and with it brought in many

changes to various areas of law. The one we

will deal with in this article is the so called

indemnity or exclusionary or waiver clauses.

Most indemnity clauses would contravene

these provisions, in that they look to protect the

supplier from their duty in terms of the Act.

Not all indemnity clauses will be invalid, but

particularly those in fields such as the medical field,

will in all likelihood now be invalid, as the

admission room of a hospital does not allow for any

debate on the terms of the contract being entered

into.

One is often requested, for example, when

being admitted to hospital, to sign an indemnity

against any loss of whatsoever nature, including

consequential and special damages arising from

any direct or indirect loss or injury. Such clauses

have generally been upheld by our Courts, which

have held them to be the norm of sound business

practice and not contrary to public policy.

The Consumer Protection Act appears to have

changed this. In terms of Section 48 of the Act

which deals with unfair, unreasonable or unjust

contract terms, a supplier of goods or services

cannot offer or supply goods or services on terms

that are unfair, unreasonable or unjust. Such terms

include terms excessively one sided in favor of any

person other than the consumer; terms so adverse

to the consumer as to be inequitable, and the

consumer relying on false, misleading or deceptive

representations.

Further, Section 51 states that a supplier must

not make an agreement or transaction subject to

any term or condition if the general purpose is to

defeat the purpose of the Consumer Protection

Act, deprive a consumer of his rights, avoid a

supplier's obligation or duty, override a provision of

the Act, or which limits a supplier's liability for any

loss attributable to the gross negligence of the

supplier.

Any such purported transaction or agreement

or term is invalid to the extent that it contravenes

the Act.

Section 54 gives the consumer the right to

demand quality service in a manner and quality

that persons are generally entitled to expect

having regard to the circumstances of the supply

and any specific conditions agreed between the

supplier and the consumer before or during the

performance of these services.

The Act also states that in interpreting its

provisions, consideration must be given to foreign

law and conventions. The extent of consumer

protection in the United States of America is well

known, with the European Union countries following

suit. Thus, one would conclude that if any such

indemnity clauses were challenged, that our Courts

will take into account judgments in countries such

as the United States and the European Union.

Changes brought about by the Consumer

Protection Act. By - Abdo & Abdo.Grandt Berndt


VALIDITY OFINDEMNITY CLAUSESVALIDITY OF

SENSIBLY LEGALSENSIBLY LEGALSENSIBLY LEGAL

We find ourselves in an interesting

investment environment: the local JSE

is at an all-time high; global investors

remain nervous around Europe; the US

with economic data indicates a stalling economy

that is still trying to find its feet; and lastly, most

central banks are ready to hit the printing press

button and push more capital into their economies

as further easing seems to be the order of the day.

currently the real

return from a money market fund (money market

funds typically have a return in excess of cash) is

marginally positive

the purchasing power is being eroded almost like a

In this environment investors typically turn to

safe havens like gold, cash and money market.

Historically cash-like investments have given South

Africans real returns, but no longer as we find

ourselves with a zero or negative real rate of return.

Most central banks have indicated that low interest

rates will be around for extended periods of time

and thus this is a problem not in a hurry to leave.

This is when you are in an investment and your net

return is above that of the inflation rate. The danger

of a negative real return is that you lose purchasing

power and even with a capital increase you

cannot buy the same amount of goods next year

as you did this year.

Some investors have remained in cash or

money market funds waiting for signs of a recovery

and an opportune time to switch into growth

assets. This may not come for the next 3, 5, 7 years

or longer so it is important to illustrate current

investment options.

The first graph indicates that

. We have used CPI as a proxy

for inflation, however, some may argue that this is

below actual inflation with food, medical aid, and

electricity costs all rising substantially in excess of

CPI.

As an aside, inflation is not at its high currently

being around 4.9%. With the South African

economy struggling, and with inflation in its target

range, the Reserve Bank may cut rates further and

in so doing, reduce this real return.

A second thought is to consider the following

situation where someone is retired and drawing an

income of say 5% of the portfolio: his or her real

return is -5% (assuming a return of 5% and inflation

of 5%). In a situation like this we sometimes get

asked if the capital is going backwards, however,

in reality the capital value would remain flat, but

Source: I-Net Bridge

What is a real rate of return?


CASH, INFLATION ANDGROWTH ASSETS


continued on page 20...

SENSIBLE RETURNSSENSIBLE RETURNSSENSIBLE RETURNS

What can investors do in this

low interest rate and low

inflation environment to give

their portfolios a

reasonable chance to

enjoy real returns?

By ,

NFB Gauteng,

Private Wealth

Manager

Jeremy Diviani

Find out why you should. Contributed by Seugnet

Moggee. Source: www.polity.org.za

SENSIBLE PLANNINGSENSIBLE PLANNINGSENSIBLE PLANNING

CHECKED YOUR RECENTLY?LIFE INSURANCE

9sensible finance nov12

Jeremy is recently divorced and has just started

dating again. This has gotten him thinking

about his future and the care of his minor

daughter, Hannah, who is under the age of 18

years. Jeremy is reminded that his ex-wife is still the

beneficiary of his life insurance policy and makes a

mental note to contact his insurance broker to

revoke his ex-wife and nominate Hannah as his

beneficiary in the event of his death to ensure that

the proceeds of his policy are paid out to Hannah.

But what will happen if Jeremy passes away

before he has the opportunity to change the

beneficiary on his life insurance policy? Will the

proceeds of Jeremy's policy be paid to his ex-wife

and will his minor daughter, Hannah, be left without

any rights to the proceeds of this policy? The reality

is that circumstances like these often occur in

practice and in many cases result in unforeseen

and even unfortunate consequences. In this case,

the proceeds of Jeremy's policy would have been

paid to his ex-wife and not to Hannah.

But let's say Jeremy did get the chance to

revoke his ex-wife and nominate his daughter as

beneficiary on his insurance policy so that she

would receive the benefit upon his death. The

question now is, as a minor, would she be entitled

to receive the proceeds? The general position in

South African law is that benefits accruing to a

minor would be paid over to the Master to be

retained in the Guardian's Fund until the minor

reaches an age of majority. Life insurance policies,

however, differ in that the insurer will pay the

proceeds directly to the minor regardless of his/her

age. In reality, this means that the minor's legal

guardian will generally administer the money on

their behalf, unless the guardian is illiterate, in which

event the insurer could decide to rather pay the

proceeds to the Guardian's Fund. Accordingly, in

Jeremy's case, Hannah's legal guardian would thus

be entitled to administer the proceeds of the

insurance policy on behalf of Hannah, and where

the guardian is the natural mother, it could mean

that Jeremy's ex-wife again has control over the

proceeds, even though she is no longer a

beneficiary of his policy.

A

testamentary trust, created in Jeremy's will or even

a family trust established by Jeremy during his life,

can be nominated as the beneficiary of his

insurance policy. The insurer will then pay the

proceeds to the trust and not a specific person, to

be administered by the trustees of the trust for the

benefit of the beneficiaries of the trust. In his will or

family trust, Jeremy can then nominate Hannah as

the beneficiary of the trust as well as determine

who the trustees of this trust should be.

Another aspect Jeremy should be aware of

when reviewing his life insurance policy, is

In the case of a revocable

beneficiary nomination, the beneficiary of a policy

can be revoked without the consent of the

beneficiary being required. In the instance where

Jeremy's ex-wife's nomination in his policy is

revocable, he can revoke her as a beneficiary

without her consent being required. However, with

irrevocable beneficiary nominations you can only

change or revoke a benefit with the express

consent of the beneficiaries. The reason being,

these beneficiaries have aquired rights the

moment they accepted their nomination in writing,

and accordingly these rights cannot be changed

unless they expressly consent thereto, unless the

policy expressly stipulates otherwise.

Lastly, Jeremy should note that

When we are confronted with all the possible

implications flowing from Jeremy's example, it is

clear how important the decision as to

beneficiaries in your insurance policy is as well as

how important it is to regularly review your policy

and beneficiaries. What is also clear is that with

proper estate planning you could also

and it also remains important

to consult an experienced estate planner when

planning for the future.

A trust can be a useful tool forJeremy to solve this conundrum.

thedifference between revocable andirrevocable beneficiarynominations.

if he fails tonominate a beneficiary, theproceeds of his insurance policy willbe regarded as an asset in hisestate upon his death and will bepaid to his estate for divisionaccording to his will or the rules ofintestate succession if he has left nowill.

limitsome of the risk of changingcircumstances

GOOR GO HOME

GLOBAL


SENSIBLE PORTFOLIOSENSIBLE PORTFOLIOSENSIBLE PORTFOLIO

Investigating the argument for investing offshore.

By , head of product & investment

at Glacier International.

Andrew Brotchie

Many industry experts agree that now is a

good time to invest internationally.

Relative returns from global investments

over the past 10 years have typically not been

good, but expectations are that the next decade

will see a reversal of this trend. Valuations are

currently generally more attractive overseas than

they are locally and we believe there is value to be

found in international investments.

Europe, as a region in the spotlight at the

moment, still has many challenges to overcome.

Political uncertainty generally does not have a

positive effect on growth assets such as equities.

However, the prevailing political situation has little

bearing on how asset managers assess their

portfolios over the long term. If the markets have

priced in the uncertainty – and the consensus is

that the European market has – then there is

typically value to be found in well-managed,

quality companies.

In addition, many European-based companies

have diversified to the extent that most of their

earnings are derived from activities outside of

Europe anyway. How well a company is managed

matters more than where it is listed.

Buying and holding good quality companies

offers inflation protection and the chance to grow

your capital over the long term. Diversification

always has been, and remains, a key reason to

invest offshore. It opens up access to many more

top fund managers and a much wider universe of

investment options, geographic regions and

sectors from which to choose.

Another key reason favouring offshore

investments at the moment is the fact that the rand

is generally considered to be overvalued currently,

providing an opportunity to seek out international

opportunities at a favourable price.

Investors are often uncertain regarding the

ideal percentage of the portfolio to invest offshore.

The answer is simply that it depends on the

investor's individual circumstances. For example,

are you planning to retire to a foreign country or do

you have children studying overseas? If this is the

case, then you would probably have a higher

allocation to offshore assets than an investor who

was simply looking to diversify a portion of his assets

offshore.

The debate around whether to invest in

developed or emerging markets remains an

interesting one and there are widely differing

viewpoints on the topic. It's important to remember

though, that one can still obtain emerging market

exposure via a company listed in a developed

market that receives some of its earnings from

emerging market countries.

For investors who are daunted by the many

choices available, Glacier International – a division

of Glacier by Sanlam – has launched

After completing a risk-profiling exercise,

investors are placed in one of three risk profiles

(cautious, moderate or aggressive), each of which

has a list of five or six funds from which to choose.

All are daily traded, actively managed funds which

simplifies choice, administration, and ensures

liquidity.

The Navigate range of funds is offered as an

investment option within the Global Life Plan,

thereby giving investors all the associated benefits

of investing within a life plan. Due to the structure of

the investment, no tax is incurred within the plan for

any income (interest or dividends) or capital gains.

There are estate planning advantages too. By

investing via an offshore life plan issued by a South

African life company, investors ensure that the

investment forms part of their South African estate,

thereby avoiding the complications of having part

of their estate located offshore.

When it comes to investing offshore, the

standard investment principles should apply –

review your portfolio regularly and ensure you

understand what you're investing in, even if it's in a

foreign country.

“Navigate by Glacier International”,a range of carefully selected fundsacross different investor risk profiles.

11

With petrol having increased again

during the first week of October

(approximately the 8th time this year),

holidaymakers are going to be hard-

pressed to keep that heady summer holiday feeling

through until January next year. As we all know,

households have had a tough 2012 so far, and with

a higher petrol price having a ripple effect on food

and transport costs (not to mention the electricity

and rates increases), budgets are going to have to

get even tighter – and all this just before Christmas.

With this in mind, we have done some brain-

storming and come up with some interesting

activities and excursions for your family to explore

without breaking the bank this season – all within

our own Eastern Cape borders. Here are some day

trips and a few one or two-nighters to consider.

- www.areena.co.za

Approximately 20 minutes outside of East London

on the East Coast Resorts Road, Areena offer what

they call “Mild to Wild” adventure activities,

including the following: a zip-line skywalk, quad-

biking, archery, paint-ball, abseiling and canoeing.

For the not-so-energetic, a relaxing and peaceful

river cruise will be just right on a still and balmy

summer day.

-

www.beachcomberhorsetrails.co.za

Based in Kenton-on-Sea, Beachcomber offers horse

trails on either the beach or through the breath-

taking Sibuya Game Reserve. They cater to all

riding levels and accommodate anyone from 7

years and up. Rides start at R200 for 1½ hours;

discounts are offered on bigger groups.

-

www.suninternational.comApproximately 1 hour

drive from East London, even if you don't stay

overnight, the Fish River Sun is great for a day visit.

They offer many activities including the following:

championship 18-hole golf course, mini-golf, fishing,

dune-boarding, skim-boarding, nature trails, a

beach shuttle down to the Castaways Beach Bar,

and Kamp Kwena which offers activities exclusively

for children.

-

www.kraggakamma.com

Situated on the outskirts of Port Elizabeth, the

Kragga Kamma Game Park is good value for

money if game-viewing features on your to-do list.

For the self-drive, the entrance fees are as follow:

adults – R50; scholars – R20; children under 6 years

of age are free. Among the different game which

can be seen are many different buck species,

giraffe, cape buffalo, ostrich, warthog and rhino.

Interaction with their tame cheetah is also possible.

-

.

For somewhere different to eat, off the N2 Highway

across from Tsitsikamma Lodge, along scenic,

forested countryside, you will find the treasure

which is Fynboshoek Farm. You will be greeted and

hosted by award-winning cheesemaker, Alje van

Deemter (a qualified microbiologist), who will treat

you to delicious lunches of his home-made

cheeses, just-picked, freshly-grown greens and

piping hot breads. Languish on the deck

overlooking the dam and enjoy the peace....over a

glass of chilled wine and platters of delectable

farm fare.

PS – call ahead for bookings and directions: 042 –

280 3879

And pushing the border of the Eastern Cape,

Plettenburg Bay offers the following:

- www.plettpuzzlepark.co.za

For something different try their 3-D maze (the first in

SA) or puzzling forest walk. This is an awesome

activity for the family to try together and will keep

“rated as one of the best places

to eat on the Garden Route”

Areena Riverside Resort

Beachcomber Horse Trails

Fish River Sun

Kragga Kamma Game Park

Fynboshoek

Plett Puzzle Park

Some interesting activities and excursions to explore over the FestiveSeason. By - NFB East London.Robyne Moore

HOLIDAYJOLLY HOLLY HOLIDAYJOLLY HOLLY HOLIDAYJOLLY HOLLY



SENSIBLE EXPLORINGSENSIBLE EXPLORINGSENSIBLE EXPLORING

12

The Unit Trust

The Retirement Annuity

In the world of investments, you get building blocks or

base elements that all structures comprise of; these are

the typical asset classes, i.e shares, bonds, cash,

property, commodities. Probably the biggest

revolution in the investment world was the creation of

what is known as the unit trust. The unit trust is not a

base element, but rather is a connection of base

elements; as such it can be considered on the same

level as the base elements.

. Where before it was difficult to buy a

government bond, a stake in Warren Buffet's

company, a nugget of gold and a section of a viable

commercial property without some serious ammo, time

and research, now you can change the volume on

your hi-fi, using your iphone, while on the loo as you

skype call your mom in Australia.

Cash: taxed at marginal rate, exemptions apply.

Property: rentals taxed at marginal rate, CGT

applicable on gains.

Local Equities: dividends now taxed in your hands at

15%, CGT applicable on gains.

Offshore Equities: dividends taxed at marginal rate,

small exemption available. CGT applicable on gains.

Offshore fixed interest: distributions fully taxable.

A unit trust is taxed according the base elements it

comprises of.

The next major development that I wish to highlight,

although not as much of an extreme innovation as the

unit trust, is what we know today as the retirement

annuity. The retirement annuity by itself is just a

structure; it is made up of nothing but tax legislation. It is

a parking bay, in which we can place assets, the most

popular 'parker' in the bay being the unit trust.

The two cannot be compared, just as a Ferrari being

compared to a garage just doesn't make any sense.

However, we can argue where the Ferrari is better off:

out tearing up the highway, or being polished up in its

show room. As long as the Ferrari on the highway is

being compared with a similar or identical car as in the

garage, there are grounds for comparison.

This brings me to my major talking point in this

article,

Putting your foot down

on the pedal, or keeping her preserved for a later

purpose.

If you haven't picked up already, the Ferrari is a

The unit trust did to the

investment world, what Apple did for the world of

technology

The base elements have different tax consequences,

as follows:

The

most significant attraction to the retirement annuity is

that allows the assets (unit trusts) parked within it to

flourish untaxed.

which is better: a unit trust housed within, or

outside of a retirement annuity?

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I was recently asked, which is a better investment: a unit trust or a retirement

annuity? This type of question is at least, a pain in the neck and, at most, an

opportunity to help a layman investor better understand the pecking order in the

world of investments. By , NFB East London, Private Wealth

Manager

Marc Schroeder

UNIT TRUSTRETIREMENTANNUITY?

ORUNIT TRUSTRETIREMENTANNUITY?

ORUNIT TRUSTRETIREMENTANNUITY?

OR

Ima

ge

cre

dit:123R

FSto

ck

Ph

oto

metaphor for an investment. For my article the

investment I am going to analyse is what is referred to

as the balanced blend in the graph that follows,

courtesy of I-Net Money Mate

.

The balanced blend comprises of some of the

longest standing balanced, asset allocation type unit

trust funds in South Africa, the breakdown is as follows:

40% Investec Opportunity

30% Allan Gray Balanced

30% Coronation Balanced Plus

The portfolio is illustrated by the red line. The JSE is

in Blue, the sector average is in yellow and inflation in

green.

The returns have been remarkable: the portfolio

has averaged 17% per annum since January 2001, a

vast outperformance over the equity market (avg 14%

per annum), but with significantly less risk.

So, which is better? Holding the investment

directly, or within the RA? I trust all understand now the

difference here between asking this question and

'which is better, a unit trust or a retirement annuity?'

It's a subjective call, but here are how the stats

stack up assuming a R100,000 lump sum investment on

the 01.01.2001, assuming a marginal rate of tax of 35%,

for purposes of the CGT calculation.

Current Value R 610, 200 R 610, 200

Tax on income marginal retirement tax,

rate now at 0%

Dividends withholding tax yes - 15% not applicable

CGT Yes No

Net CGT R 550, 736 R 610, 200

Access Full Partial*

Estate Duty Included Not Included

Protected from Creditors No Yes

Protected from scorned

ex wife No No

We can see that from a purely rands and cents

perspective, there is no more tax-efficient savings

structure than the retirement annuity; no investment will

outperform its twin if the twin is housed within the

retirement annuity, even more so now considering that

dividends are received tax-free into retirement funds.

So why not put all your money into the RA? The

problem is that South Africa is one seriously volatile

investment destination, with our currency sailing in the

wind like a kite, and with the political outlook as stable

as Shaik's latest medical report, it would be foolish to

relinquish total access to your funds. The ANC have

made suggestions that pension funds should start

investing in 'government developmental projects'; how

serious this is to be considered, only time will reveal. It

seems the drive is for government to be encouraging

people to invest for their retirements, not dissuade

them, evidenced by retirement fund's tax being

reduced to 0% and tax deductions permitted on

contributions. For this reason, I would advise anyone to

maximise the tax-efficiencies offered by retirement

annuities and pension funds. Over and above that,

investing directly into well managed unit trust funds is

probably the safest, surest and cheapest way of

generating wealth over the medium to longer-term.

Considering the quality managed unit trust

solutions out there, whether you are the park and polish

investor, or love screaming over the highways, there is

no reason why your 'car' shouldn't be a Ferrari.

So, next time instead of asking, “Which is better? A

unit trust or a retirement annuity?” Rather ask, “How

long is a piece of a string?”

(Please see graph 1

below)

*Note that while you will not have

access to the full amount invested

within the RA, on your death the

full amount can be accessed by

your beneficiaries subject to retirement tax tables.

�

�

�

Direct Holding RA Holding

13sensible finance nov12

Graph 1

STRUCTURING SALARIESSTRUCTURING SALARIESSTRUCTURING SALARIES

Avery common question posed to us in

practice is: “how can I reduce my

monthly taxation or improve my salary

structure to become more tax efficient?”

For pension fund contributions:

For the provident fund contributions:

Travel allowances

medical

aid deduction

Well, this is

one place that in my opinion Oupa Maqashula

(Commissioner of SARS) and SARS have been very

CLEVER in their approach to allowable deductions

to the salary earner.

Basic salary structured packages in today's

world encompass basic salaries, travel allowances,

motor vehicle and medical aid fringe benefits and

then some sort of company and employee

contribution to pension and/or provident funds. It is

important to note that there is a difference in the

treatment for tax purposes of the pension fund and

provident fund contributions.

Current pension fund contributions by the

employee may be deducted to the greater of 7,5%

of remuneration from retirement funding

employment, or R1 750.

- Any excess may not be carried forward to the

following year of assessment.

- A maximum of R1 800 per annum may be

deducted as arrear pension fund contributions by

the employee.

None of the current or arrear contributions are tax

deductible for the employee.

There are indications that provident funds

might disappear in the future. The reason is that the

main attraction of a provident fund, namely to be

able to make a 100% lump sum withdrawal at

retirement, will no longer be available to investors.

All future contributions will be subject to a

maximum withdrawal of one-third, as is the case

with pension funds and retirement annuities.

have been clamped down on

by SARS. When claiming a travel allowance only a

detailed log book will be accepted for the travel

deduction. I think it is important to highlight what a

detailed log book entails: it is effectively a

reconciliation of daily mileage split between

business and private travels. Private travels include

traveling from home to work and back again. Just

in case you were wondering how SARS checks up

on this, they have been requesting your last vehicle

service record or copy of your service log to

correspond to the mileage per the log book in the

month in which the vehicle was serviced. So please

be careful when compiling your log books as they

need to be accurate!

It is also important to mention that the

has now been replaced by a “tax

credit” regime that will be effective from 1 March

2012. Basically the employee who is on a medical

aid will no longer be able to claim the deduction

(limited to the capping amount), but a tax credit

will be given which will act in a similar way as the

primary and secondary tax rebates. Tax credits are

not refundable, which means that you will only

qualify for tax credits to the extent to which you

pay tax.

In short, there is very little that is afforded to

straight salary earners that wish to have elaborate

schemes in place to reduce and/or postpone the

taxation that is levied in terms of the PAYE tables.

Cellphone, entertainment and subsistence

allowances are all best left off as no deduction is

permitted against these allowances anymore; it is

far more advisable to have the above on a re-

imbursive basis, which is generally speaking non-

taxable.

In the next issue I will touch on commission

earners who have a far better platform to play

with.


SENSIBLY LEGALSENSIBLY LEGALSENSIBLY LEGAL

A look at basic salary structured

packages. By

- Klinkradt & Associates.

Shaun Murphy & Wade

Young

TIME TO BUY?EQUITIES

Excellent returns currently to be gained. By

, Investment Asset Management.Max King


The recent stimulatory actions of the European

Central Bank (ECB) and American Federal

Reserve caused equity markets to rally, even

after critics pointed out that similar actions have

not necessarily had sustainable positive effects in

the past. Similarly, equities have rallied following

positive economic data and while they might suffer

short-term setbacks, they always seem to bounce

back. This increasing perkiness of equity markets

perhaps suggests a simple truth – that equity

markets want to go up.

To those who have a consistently pessimistic

view about the future direction of the markets and

economy, this is anathema. Economic data

around the world has been disappointing,

suggesting that the global economy has turned

down. Even emerging economies are faltering and

the euro-zone is in deep and irredeemable crisis.

Forecasts for corporate earnings have been sliding

remorselessly.

There is no shortage of long-term equity bulls,

but – almost without exception – they do not

expect an improvement in markets for several

months, and most are looking for another sell-off,

probably triggered by a flare-up in the euro-zone

crisis, to provide a buying opportunity.

The only factor holding back the long-term

bulls is a fear of short-term downside, but should

that downside materialise, then it is likely to be

fleeting. There are just too many buyers into

weakness and not enough nervous current holders

who are liable to be panicked into selling. The

evidence points to increasing investor resilience. In

Spring 2012, markets dropped only 10% before

recovering.

The increased resilience of markets, and

consequent fall in volatility, reduces the risk of

investment – and that makes investors willing to

pay higher prices. The result is a self-perpetuating

confidence loop that pushes prices steadily higher,

reinforced every time that a short-term setback is

recovered. Sooner or later, an even more powerful

factor will kick in: the realisation that equities

represent an each-way bet.

If the economic outlook improves and earnings

forecasts pick up, the current valuation of the

market will appear cheap. If estimates for

corporate earnings in 2013 start to rise, there will be

no holding the market back. On the other hand, if

the economic news continues to be disappointing

or the euro-zone starts to unravel, there can be

little doubt that central banks around the world will

inject liquidity into the global economy

Whether this works in economic terms depends

on how it is done. Purchases of government bonds

by central banks has provided little economic

benefit as the money created sits on bank balance

sheets without being transmitted into the broader

economy, but central banks are becoming more

imaginative. The Fed has encountered some

success with 'Operation Twist' and markets were

encouraged by its decision on an open-ended

purchase of mortgage-backed securities, while the

Bank of England's 'Funding for Lending' scheme is

promising.

One of the oldest common wisdoms on Wall

Street is 'don't fight the Fed' – in other words, buy

equities when monetary policy is being eased; sell

when it is being tightened. The adage has been

forgotten in the current obsession with

macroeconomic data.

In all

probability, a significant rerating of equity markets

without a strongly visible improvement in the

economic or corporate outlook will be regarded

with astonishment and derision by the sceptics, but

before long, the fundamentals will improve.

As growth picks up and corporate earnings

catch up with the market, the sceptics will, at last,

turn positive.

www.investecassetmanagement.com

We believe that thetime to buy equities is now, whilemonetary policy is extremely loose.

However, with a tightening ofmonetary policy then looming, it will betime to turn cautious. Until that point isreached, there are some excellentreturns to be gained.

SENSIBLE TIMINGSENSIBLE TIMINGSENSIBLE TIMING

Retirement years come sooner than expected;

start saving now! By - Birch Bruce

Chartered Accountants.

Eugene Birch

Iwould like to tell you a true story about Sam. It is

something that I experienced personally and I

would like to warn other employees, in

particular, self-employed individuals, in order for

them to make adequate provision for their

retirement years.

Retirement Annuity contributions have the following

attributes:

The most important attribute of RA policies is

that the investment is protected from creditors.

Sam was initially employed, but later became

a very successful self-employed businessman who

was happily married with a thriving business. Life

treated him well as he enjoyed the luxuries of cars,

elaborate homes and found plenty of time for

vacations. His responsibilities grew after a few years

of creating a family. Thoughts of retirement were

far from his mind and very little planning was

pursued in preparation for old age.

Every time that Sam changed employment,

pension policies were merely cashed in to buy a

new motor car or house or put towards an overseas

trip. Retirement was years away in his mind and he

decided that retirement planning would be done

at a later stage.

Sam continued to move from one workplace

to the next and continued to cash in his pension

policies until the time that he became self-

employed, when no pension monies remained. His

years of self-employment is what I like to call the

“danger years”: dangerous, because soon enough

a couple of years have passed while trying to build

up a business, and retirement planning has not

been given a second thought.

Now the years are rolling by quickly and Sam's

marriage comes to an end. He remarries and

before long he is into his third marriage, bringing

with it more offspring. Once again, no thought has

gone into his retirement planning, due to the

expenses of providing for a family. Sam's business

folds at this point in time and he is declared

insolvent, consequently losing all assets. Fortunately

for Sam, his third wife is able to look after him until

he passes away.

The retirement years come sooner than

expected, and if Sam had not neglected putting

money away in preparation for these years, he

would have been financially comfortable to a far

greater extent.

1. They are tax deductible up to 15% of taxable

income (subject to certain conditions).

2. Any unclaimed contributions can be carried

forward to subsequent tax years and claimed.

3. Upon retirement, the taxpayer enjoys certain tax

free benefits.

Sam experienced divorce, married three times,

had more children than expected and lost his

business and assets. These are expensive

experiences, thus the temptation arises to draw on

pension policies and not contribute towards RA

policies. However, if Sam had contributed to an RA

policy, he would not have been able to cash

money in before the age of 55, which is a

beneficial form of protection.

In

Sam's case, where he became insolvent, creditors

would not have been allowed to touch this money.

This fact alone makes an RA policy necessary in

any employee or self-employed person's retirement

planning.

PLANNING FOR RETIREMENTPLANNING FOR RETIREMENTPLANNING FOR RETIREMENT

19

Physical Address: 80 Frere Road, VincentPostal: P O Box 13602, Vincent, 5217Tel: 043 – 721 0441


SENSIBLE RETIREMENTSENSIBLE RETIREMENTSENSIBLE RETIREMENT


...continued from page 8

“silent assassin”

So what can investors do in this low interest rate

and low inflation environment to give their portfolios

a reasonable chance to enjoy real returns?

.

One solution is to have saved more than

necessary in your build up to retirement, so you do

not have to worry about these matters. However,

there are not too many who can afford this luxury

and it is thus important to understand what one

can do to rectify this. If someone is retired then

they can try to reduce their costs and thus portfolio

drawings, and for those in the pre-retirement phase

of life it is important to save more to ensure a

sustainable retirement. In both scenarios it is

necessary to take on a certain amount of growth

assets in a portfolio that should, over time, provide

an inflation hedge.

A third consideration is that although money in

the bank is referred to as a risk-free asset, recent

events have shown there is still the risk of capital

loss in the form of default by the issuer (bank or

government).

NFB

focuses on long term sustainable investing and it is

with this in mind that the balance of this article

continues.

They are assets that display capital volatility and

often provide a yield by way of a dividend or

interest income. For my illustration I have not

included offshore asset classes and so examples of

assets further up the risk spectrum are bonds, listed

property and shares.

The above graph shows the investment profiles

if you were to hold these riskier assets described

above over the last 10 years. It is evident that an

investor would have been rewarded for holding

bonds, listed property and equities as they have

cumulatively and substantially outperformed cash

represented by the green line.

The previous graph illustrated cumulative returns so

let us now look at the year on year returns and

include inflation for benchmarking purposes.

The chart above more clearly indicates the

volatility of the various asset classes. We can see

that over the last 8 years listed property or equities

have outperformed CPI and cash 63% of the time.

The merits of being in these perceived riskier

assets is evident, but what is the risk versus return

trade off?

The following scatter plot taken over the last 10

years illustrates the risk and reward profile of the

four typically available asset classes as well as

inflation linked bonds (another instrument to hedge

against inflation).



What are growth assets?





Source: Morningstar

Cash is shown as the blue dot; the All Share Index is

the blue triangle and the Listed Property Index as

the red triangle. The All Bond Index has been

included as well as inflation linked bonds (green

square). Inflation linked bonds have been included

as they give an indication of the risk versus return

profile of inflation. They typically trade at a

premium above inflation.

Once again we can see that listed property

and equities have significant volatility (risk is shown

on the x axis and returns on the y axis) when

compared to cash, but over the long term have

rewarded investors with inflation beating returns.

The main concern an investor has investing in

these growth assets is the possibility of capital loss,

however, this can be mitigated through active

management of the various asset classes and

within the different asset classes themselves. A unit

trust manager has various different instruments that

he or she can invest in for example; in an equity

fund the manager can rotate between financials,

resources and industrials; and in a bond fund the

manager can choose between corporate bonds,

sovereign debt or inflation linked bonds.

The combination of the various asset classes

should match ones time horizon and risk profile and

it is essential that you speak to your financial

advisor to ensure your asset allocation is tailored to

your specific investment needs.

JOLLY HOLLY HOLIDAY ...continued from page 11

...continued from page 20


SENSIBLE ACTIVITIESSENSIBLE ACTIVITIESSENSIBLE ACTIVITIES


CASH, INFLATION AND GROWTH ASSETSCASH, INFLATION AND GROWTH ASSETS

everyone on their toes. Each activity for adults

costs R60 (both is R110) and for children under 12 it

is R50 (both is R90).

-

This is a bird of prey rehabilitation centre just

outside of Plettenburg Bay. Their aim is to generate

awareness of these regal birds; they rescue,

rehabilitate, and where possible, release them into

the wild. Radical Raptors offer flying displays (three

shows a day), using a number of trained, non-

releasable birds which are flown around and to

you, giving you an opportunity to interact with the

birds. The costs are R80 for adults and R60 for 12-

year olds and under.

We hope that at least some of the above will be

great ideas to engender excitement during the

festive season. And for those of you that still

manage to have some funds left over at the end of

the holidays, please keep NFB's charity of choice,

the Loaves and Fishes Network, in mind – you can

donate to this worthy charity that cares for the

youngest of our province using your credit card on

their website (www.lafn.co.za) or by registering

online for a small debit order deduction each

month.

www.radicalraptors.co.za

Interesting fact: hand -raised raptors are

classified as human imprints as they have identified

themselves as humans. These birds will not breed

naturally and therefore are not released into the

wild.

NFB – always looking out for your best financial

interests – in all things and at all times during the

year.

Radical Raptors

23

Q:

A:

What sort of percentage should one have

invested offshore as part of ones portfolio? Are

there any restrictions to this allocation with regards

to Retirement Funds?

The amount that should be invested offshore as

part of an Investor's portfolio will more often than

not come down to his/her risk portfolio, financial

needs and current market conditions. Investing

offshore is often tricky as you not only have to deal

with offshore markets, but also with the volatility

that our Rand often presents.

It is important to remember, that despite all our

natural resources, South Africa only makes up less

than 1% of the world economy. It is important,

therefore, to have some global diversification. In

the late 90's it was considered normal to have

around 60% of your portfolio invested offshore.

Over the last 10 years, however, our Rand

strengthened considerably and Emerging Markets

such as SA were in favour. This meant that the

average foreign exposure was probably less than

20%.

We live in a Global Economy and we are

starting to see more value offshore again. Our

Rand has shown some weakness of late and global

companies are at compelling valuations. At current

levels, an offshore allocation of between 20% and

40% is probably suitable, depending on the

individual client's needs and risk.

There are certain restrictions regarding the

amount of offshore exposure one can have in

retirement funds. This is known as Regulation 28. It

limits the extent to which retirement

funds can invest in particular assets or asset

classes. The purpose of this regulation is to protect

investors in retirement funds from the effects of

poorly diversified investment portfolios, over-

exposure to higher-risk asset classes, as well as

complex financial instruments and portfolios.

Regulation 28 applies to retirement annuities,

pension and provident funds and preservation

funds, but excludes post retirement products such

as living annuities.

Broadly speaking, compliance with Regulation

28 involves, inter alia, a maximum exposure of 75%

to Equities, 25% to Property, and 25% to Foreign

Assets. Compliance with Regulation 28 is now

required at retirement fund and member level

(whereas it was previously only required at

retirement fund level). Individual investors are,

therefore, required to ensure that the asset

category exposure of their investments is compliant

with the limits prescribed by Regulation 28.

Most Cautious and Balanced Unit Trust Funds

are already Reg 28 compliant. They will have it

written in their investment mandates so accessing

these types of portfolios already ensure that you do

not have to worry about being compliant. It is

interesting to note that most of the Fund Managers

in the Balanced and Cautious space have

maximised their allowable exposure offshore in their

respective portfolios. This, therefore, gives a good

indication as to where these asset managers are

currently seeing value. If they could break the rules,

they would, and more than likely have more

offshore exposure.

It is important to understand the risk of offshore

investments and it would be best to chat to your

Financial Advisor to ensure that your offshore

allocation fits in with your financial needs and risk

profile.

Travis McClure

Please address all Questions to: Travis McClure,

NFB Sensible Finance Q&A, Box 8132, Nahoon,

5210 or email: [email protected]


SENSIBLE Q A&SENSIBLE Q A&SENSIBLE Q A&

“Sensible Finance - Questions and Answers” is an advice

column that will allow our readers the opportunity to write to

a professional and experienced financial advisor for advice

regarding investments, personal finance, life and/or risk cover.

Travis McClure will be answering any questions that you may

have.

24

STEINHOFFSTEINHOFFSTEINHOFF

Today we discuss another core holding in our

managed general equity portfolios, namely

Steinhoff International Holdings Limited (SHF).

We included Steinhoff into our portfolios about

18 months ago once the first effects of the group

restructurings became clearer. Steinhoff is a

multinational group that is listed on the JSE. It

began its life many years ago as a furniture

manufacturer established by Bruno Steinhoff.

Markus Jooste was brought in as Chief Executive by

Bruno to take the business forward. Over the past

few years he has expanded the group dramatically

by making many bolt on acquisitions, as well as

bringing in several significant deals such as the

Conforama acquisition in Europe.

Today Steinhoff is a Top 40 constituent on the

JSE with a market capitalisation of R48 billion. It is

the controlling company in a diversified group that

controls JD Group, KAP International, and has a

20% stake in PSG Group (all listed on the JSE), as

well as controlling the unlisted Steinhoff Europe (the

Conforama acquisition). The group has a policy of

owning its own trading outlets, which means that it

has a large property portfolio. This policy should

prove quite positive in Europe over time as the

group is able to lock in occupancy costs by

acquiring properties at currently depressed prices.

Whilst this may seem like an unfocussed

conglomerate, it is actually a vertically integrated

operation that owns chip board manufacturers,

transport logistics, property outlets and retail and

wholesale businesses throughout the furniture retail

chain.

Steinhoff already has a credit arm in its various

businesses and its strategic stake in PSG could well

signal closer alignment with Capitec for credit and

insurance products. Steinhoff is now the second

largest furniture group in Europe after IKEA. Like

IKEA, it has a value-focussed offering, which has

seen it gain traction in recession focussed Europe.

Notwithstanding the belt-tightening in Europe,

Steinhoff is strongest in Germany, France and

Eastern Europe; areas of Europe that have

performed relatively the strongest.

Steinhoff has made impressive strategic

progress in tidying up the group structure, both in

South Africa and in Europe, where it has bought out

minority interests and by monetising its retail

participation interests in Eastern Europe and by

purchasing its retail footprint.

Steinhoff recently released its annual results to

30 June 2012. Given the large scale corporate

activity, these were exceptionally complicated to

interpret, however, it is clear that the underlying

quality of Steinhoff's earnings continues to improve

with strong operating cash flows. Group revenue

was R80 billion and Avior Research estimates the 12

month forward diluted headline earnings per share

to be 304 cents, and the annual dividend for 2013

to be 85 cents. At the current ruling price (3

October 2012) of R26.55, this places the share at a

forward Price Earnings (PE) ratio of 8.7 times and a

forward dividend yield of 3.2%. Group policy is to

pay a distribution once per year. Aside from the

mining companies, this PE ratio is about the lowest

in the Top 40 index. We believe that,

notwithstanding the headwinds that the group may

face in Europe, that it trades at an attractive rating

and we would accumulate Steinhoff to between

5% – 7.5% of a general equity portfolio.

It is our view that investors will continue to value

Steinhoff more conservatively that would otherwise

be the case until the pace of corporate activity

subsides or a European Initial Public Offering (IPO)

of its international retail operations allows for a

more accurate sum of the parts valuation basis.

The group has a stated aim of listing on a European

exchange once market conditions allow. It will,

however, only do such a deal if it is positive for the

group. This should raise its profile in the major

markets in which it operates as well as allow it to

restructure its funding profile, including removing

convertible bonds that currently have a dilutive

impact on earnings.

Steinhoff continues to make major investments

not only in intangible assets, but also in physical

property as the group expands and improves the

quality of its retail businesses in Europe. During the

current financial year, the evolving group structure

should provide investors with improved

transparency and sharper strategic focus within the

different group entities. We expect share price

outperformance predominantly from a re-rating of

the group as investors in general gain a deeper

appreciation of the value contained within the

different group entities.

Discussing another core holding in NVest's General Equity

portfolios. By , Portfolio Manager - NVest

Securities.

Rob McIntyre


SENSIBLE PORTFOLIOSENSIBLE PORTFOLIOSENSIBLE PORTFOLIO

Anthony Godwin

Gavin Ramsay

Andrew Kent

Walter Lowrie

Robert Masters

Bryan Lones

Travis McClure

Marc Schroeder

Phillip Bartlett

Glen Wattrus

Leona Trollip

Leonie Schoeman

(RFP™, MIFM) - ManagingDirector and Private Wealth Manager, 23 yearsexperience;

(BCom, MIFM) - ExecutiveDirector and , 18 yearsexperience;

(MIFM) - Executive Director andShare Portfolio Manager, 16 years experience;

- , 26years experience;

(AFP , MIFM) -, 26 years experience;

(AFP , MIFM) -, 20 years experience;

(BCom, CFP ) -, 12 years experience;

(BCom Hons(Ecos), CFP ) -, 7 years experience;

(BA LLB, -, 9 years experience;

(B.Juris LL.B CFP ) – Private WealthManager, 14 years experience;

(RFP ) - Employee BenefitsDivisional Manager and Advisor, 35 yearsexperience;

- Healthcare DivisionalManager and Advisor, 14 years experience;

NFB has a separate specialist Short TermInsurance Division, as well as now offeringspecialist group companies in the fields of stockbroking, wills and the administration ofdeceased estates.

®

Private Wealth Manager


™ Private WealthManager

™ Private WealthManager

Private WealthManager


CFP ) Private WealthManager

(CFP ) - Regional Manager – PE,6 years experience;

(BCom (Hons), CFP ) - PrivateWealth Manager, 2 years experience;

™

(RFP™)

®

®

®

®

®

Gordon Brown

Mikayla Collins

NFB have a

with a between them:

STRONG, REPUTABLE TEAM OF ADVISORSWEALTH OF EXPERIENCE

25

NVest Securities (Pty) Ltd

NFB House, 42 Beach Road,

Nahoon East London 5241

PO Box 8041, Nahoon 5210

(043) 735-1270,

(043) 735-1337

[email protected]

Tel:

Fax:

Email:

www.nvestsecurities.co.za

The Eastern Cape's first home-grown

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