Our client in the Tyre industry in Port Elizabeth is seeking to employ a Welder to work on a Temporary basis The ideal candidate must meet the below mentioned criteria: Must have at least 5 years Welder C02 experience Tyre industry is advantageous Must have technical qualification To apply please email CV’s to zenandeb@transman.co.za
vrapto
Student Administrator (cape Town)
TEMPORARY STUDENT ADMINISTRATOR REQUIRED IN CAPE TOWN Qualification Grade 12/ Matric Relevant Degree/ Diploma Experience 2 – 5 years’ experience in a similar Position Finance/ Accounting Experience Financial Acumen Skills Computer Literate Planning and Organising Excellent written and verbal Communication skills Attention to detail Valid Driver’s License Ability to work under pressure Info: Applicants must reside in CAPE TOWN or surrounding area. Please take note: if you have not been contacted within 14 days, please consider your application unsuccessful. Visit our website to view all of our current vacancies: www.mprtc.co.za
To apply for this vacancy please access this job advert on a desktop computer.
Apply for other Jobs on Job Mail.
Receptionist/ Pa (durban)
RECEPTIONIST/ PA REQUIRED IN DURBAN Requirements: Grade 12/ Matric 3 – 5 years’ experience within a similar Position Experience in Events/ Seminar Bookings Sales & Marketing Experience Computer Literate Excellent Written and Verbal Communication skills Valid Driver’s License and Own transport Applicants must reside in DURBAN or surrounding area. Please take note: if you have not been contacted within 14 days, please consider your application unsuccessful. Interested? Please visit our website www.mprtc.co.za to submit your CV or for more information.
To apply for this vacancy please access this job advert on a desktop computer.
Apply for other Jobs on Job Mail.
Food & Beverage Manager (free State)
FOOD & BEVERAGE MANAGER REQUIRED IN FREE STATE Requirements: Grade 12/ Matric Certificate/Diploma in Hospitality/ Food and Beverage Management 2 – 3 years’ experience in a full-service food and beverage department Valid Driver’s license and own transport First Aid Certificate Computer Literate Must be Guest and service driven Ability to work under pressure Excellent verbal and written communication skills Vast Knowledge regarding food safety and general hygiene Good Product Knowledge of Wines and Liquor Ability to work flexible hours Applicant must reside in FREE STATE or surrounding area. Only South African citizens, who are suitably qualified, live in the applicable area and meet the requirements of the position are eligible to apply for this vacancy. Please take note: If you have not been contacted within 14 days, please consider your application unsuccessful. Your details will be held for future vacancies. Please visit our website www.mprtc.co.za to upload your CV or for more information.
eNCA | Gauteng man arrested for allegedly raping step daughter
JOHANNESBURG – A 34-year-old man was arrested in Putfontein, Benoni on Wednesday, for allegedly raping his stepdaughter, Ekurhuleni police said.
“[On Wednesday] Benoni police arrested a 34-year-old suspect for rape. It is alleged that the suspect has been raping [his] 11-year-old stepdaughter since 2013,” spokesperson Constable Justice Ramaube said.
“The victim’s ordeal had been narrated to police by one her teachers. A case of rape was immediately opened at Putfontein [South African Police Service] SAPS which led to the arrest of the suspect.”
Ramaube said the man was in custody and would appear in court soon.
African News Agency
Offshore Investments Made Easy
The Johannesburg Stock Exchange (JSE) is the largest stock exchange in Africa (and 17th largest in the world), yet the entire African continent only accounts for 1.5% of global stock market value. Other asset classes like SA bonds and property also only make up a fraction of the global value. Taking advantage of investment opportunities offshore means that you as an investor not only diversify your country risk, you also get exposure to some of the fastest growing and exciting industries globally, many of which you are probably making use of every day.
Source: Visual Capitalist
You could have found this article through a search on Google that led you to Sharenet Views. Your computer, possibly manufactured by Dell, uses Windows software that Microsoft produces. Or perhaps you are reading it on your Apple iPhone. These companies are all publicly traded companies that you can invest in. Is technology not your thing? Well then perhaps transport is. If you drive an Audi or Polo you can invest in Volkswagen. Maybe you’re thinking electric cars are the future, so why not invest in Tesla? If an automobile is thinking too small for you, then go with airplanes instead and invest in Boeing. These industries are not available on the local market, but fortunately, the offshore market is now available on your doorstep and there are a few simple ways to gain access to it.
#1 Open a trading account that allows access to foreign stock markets
This is an option only confident investors should consider. Many who try picking companies on the JSE will find that it’s not that easy sifting through nearly 500 companies and picking a winner. Now imagine having to go through that exercise with over 5 500 companies listed in the US alone. If you think you have what it takes, there are brokers in SA that offer access to foreign stock exchanges.
#2 Invest directly in a foreign unit trust
You may not have the skills or time to make the best stock picks in the global market, so why not leave that to the professionals. There are thousands of funds to choose from, but knowing which one is best suitable for you is a daunting task. In addition, you will need to get SARB approval to take your money offshore, adding more time to an already administrative intense process.
#3 Invest in a locally domiciled global unit trust
This is by far the easiest method for the South African investor to gain exposure to international markets. There are unit trusts domiciled in South Africa, meaning you make your investment in ZAR. The fund managers of these funds then convert that ZAR to foreign currencies, like USD, to buy assets in offshore markets. Your investment exposure is in a foreign asset and currency, but your statement always reflects the ZAR value of your exposure. If you feel that you don’t have the required expertise or time to decide which fund to invest in, you could consider a global fund-of-funds where the portfolio manager picks the combination of global funds he/she thinks will deliver the best performance. The Sharenet BCI Global Balanced FoF is a good example of this type of investment.
#4 Buy a global exchange traded fund (ETF)
It is easy for local investors to buy an ETF either through a trading account (like Sharenet Securities), LISP or directly from the provider. A global ETF is a passive investment and tracks a global market index. ETF’s are listed locally, meaning you make your investment in ZAR and get your money back in ZAR when you sell, but you get the exposure to the foreign asset and the return from it. There are assorted options available to local investors that could give you exposure to specific regions.
Conclusion
Investment into international markets has never been easier for South African investors and global brands like Apple and Facebook are virtually at your fingertips. It provides a valuable addition to your portfolio, with fast-growing sectors abroad that could offset weakness from a stagnant South African economy. It also provides good diversification away from political risk specific to SA and it’s easily accessible through several channels that require little admin and time.
10 Reasons to Consider Property
Unit trusts are excellent investments that can give investors the opportunity to participate in the growth of large businesses and investment assets. Property unit trusts open a door to the property industry with more to offer than an individual could ever hope for in the buy-to-let market. Property funds invest in listed property companies that develop and manage real estate in different sectors (office, retail, commercial, residential) and geographies.
The benefits of investing in a unit trust rather than buy-to-let property make a compelling case for why property unit trusts should be considered if you are looking to enter the property market. This article is focussed on investors that already own a primary residence and is looking to invest in the property market.
1. Selection
The fund manager of a property unit trust selects which property companies to include in the portfolio, raising the likelihood of realising attractive returns on the investment. A buy-to-let property, on the other hand, could be situated in a neighbourhood where there are low growth and few tenants.
2. Historic performance
The total return from listed property has exceeded residential property over the last 5, 10 and 15 years to 30 June 2017 (see below table). Total return includes price appreciation and income. For residential property, an income yield of 7% is assumed with the average buy-to-let property providing income of between 5% and 8% after fees.
Figures as at 30/06/2016. Source: Bloomberg, INET, Sharenet. Listed Property (FTSE/JSE Listed Property TR Index – J253T). Residential Property (BIR Residential Property Price Index plus 7% for the yield component).
3. Size
Adding property to your investment portfolio is a fantastic way to add diversification and potentially boost return. Most investors who buy a property to let will have to allocate a very large portion of their capital to the investment. This means you could risk a substantial portion of your portfolio on a poor investment decision. Unit trusts have much lower investment minimums. The Sharenet BCI Property Fund has a minimum lump sum investment of R25 000 (or R1 000 per month debit order). It allows the investor to only invest the amount that he/she is comfortable with.
4. Diversification
Diversifying your portfolio across multiple asset classes can boost return and improve the consistency of your return. The concept is the same for diversifying between different property sectors like shopping malls, office parks, warehouses and apartment blocks. Unit trusts give investors exposure to these sectors across multiple cities (geographic diversification). Compare this to one apartment in one location and you can start to see that the risk of investing in buy-to-let properties is higher.
5. Liquidity
Unit trusts are liquid investments, meaning you can withdraw your money and have it sitting in your bank account within days. Rental properties are not liquid and could take months (sometimes even years) to sell. Should you need to sell immediately, you may have to put the property up for sale at a much lower price and even then, it will be several weeks before you see the cash from the sale.
6. Costs
Unit trust fees include ongoing management, performance, admin and transaction fees. All these fees usually amount to less than 1.5% per annum for most property funds. Rental property fees dwarf that of unit trusts. To buy or sell a property will see fees associated with the transfer, agent, conveyancer, deeds and other admin fees. Ongoing costs will include insurance, taxes and levies. All these fees can cut a sizable chunk out of your property investment’s performance.
7. Risks
Rental properties carry a lot more risk than an investment in a unit trust. There is vacancy risk if you struggle to find a tenant or can’t get a tenant to pay, causing you to lose income. Listed property also has vacancies, but these are usually less than 10% of the property portfolio, meaning the bulk of the portfolio still delivers income each month.
Listed property is more volatile and your investment can fluctuate a lot more than rental property.
Rental property requires maintenance and something like a geyser bursting is a problem that needs immediate fixing.
8. Leverage
A good case for rental property is that you can take on leverage and use a loan to finance your property investment. Many investors don’t know that listed property companies can also take on leverage and can use clever ways to finance property investments (and at a lower interest rate than individuals can get).
9. Admin
Investing in a unit trust is very simple and can be done within a few minutes. To invest with Sharenet, visit our Investments website. Rental property on the other requires a lot more of your time. You need to screen tenants, run credit checks, set up and negotiate contracts, do viewings, collect rent and address complaints to name a few. You can get an agent to do all of this for you, but that is an additional cost that takes a bite out of your return.
10. Track performance
Unit trusts are priced daily and you can view the value of your portfolio online at any time. Fund managers are also required to provide a monthly fact sheet that shows how your money is invested. It is easier to track the performance of your investment than with rental property.
Conclusion
Property unit trusts hold all the cards relative to rental property. Listed property performance is historically higher than rental property. The risks associated with property unit trusts is less than with rental property and unit trusts are also far easier and less time to consume to invest in than rental property. There are benefits of owning your first property (including tax breaks and cheaper borrowing), but this article focuses on a buying-to-let property where the investor is looking for property exposure in addition to his/her primary residence.
It is easy to add property to your investment portfolio and now you can invest with Sharenet. Visit our Sharenet BCI Property Fund page to find out more.
Balanced Funds
Balanced funds (also known as multi-asset funds) are by far the most popular unit trusts and is the vehicle of choice for many investors saving for retirement. Balanced funds are designed to achieve long-term real returns in a more stable and consistent manner than a single asset class fund (like equity funds). They use a combination of different asset classes to maximise real return (after inflation) while being cognisant of risk. This article explores the typical construction and variants of these funds on offer to South African investors.
Asset allocation of balanced funds
Balanced funds generally seek to maximise risk-adjusted return. This means that the fund manager needs to construct a portfolio that could generate attractive returns while reducing the likelihood of making losses. This is achieved by including different asset classes in the portfolio like local or international equity, bonds and property.
The asset split depends on the aggressiveness of the fund’s mandate i.e. whether the goal is capital preservation or growth. A fund that aims to generate capital growth will allocate a higher proportion of assets to equity. This makes the fund more aggressive and adds risk, but also has the potential to deliver higher return. If the aim is to preserve capital by beating inflation, then the fund manager will allocate less of the portfolio to equity and buy less risky assets like bonds and money market instruments.
Fund managers can actively manage the asset allocation of the portfolio or elect to keep the asset split near pre-determined weights. The benefit of actively managing the asset allocation is that fund managers can purchase the asset class that is expected to deliver the highest return. If there is pessimism in equity markets then the fund manager can switch from equity into bonds and cash to avoid losses. This method has higher transaction costs and adds the risk that the fund manager makes a bad call on selecting asset classes. Therefore, fund managers often hold the portfolio’s construction close to its strategic weight. The strategic weight of the portfolio is the asset split that has historically delivered the most attractive return for a certain level of risk over the long term.
How to Choose Between the Types of Balanced Funds
Balanced funds can be divided into different risk categories ranging from cautious to aggressive. One method for investors to distinguish between these categories is to look at the sector that the fund is classified in. Most Balanced funds are divided into four sectors namely, Multi-Asset Flexible, Multi-Asset High Equity, Multi-Asset Medium Equity, Multi-Asset Low Equity.
The Multi-Asset Flexible sector includes funds that have flexibility in their asset allocations. The Sharenet BCI Flexible Fund can be placed in this category. Most flexible funds are managed with active asset allocation and aims to maximise long term growth. Some fund managers in this sector use the flexibility of switching between asset classes to manage the risk in their portfolios.
The Multi-Asset High Equity sector is the category of funds most popular among retirement savers. Funds within this category are limited to a maximum of 75% in equity and the funds eligible for retirement savers have an additional limit of 25% international exposure. The Sharenet BCI Balanced Fund is a great option if you are looking for this type of fund. High Equity Balanced Funds are designed to grow capital over the long term while diversifying across asset classes to add more stability to returns. Investors with a moderate to aggressive risk profile, like those saving for retirement, are most suited to these funds. If you are looking for a step-by-step guide on how to invest for retirement then read our article on Saving for Retirement.
Funds in the High Equity sector usually don’t generate enough income for investors looking to periodically withdraw money. These investors can find cautious funds in the Medium-and Low Equity sectors that allocate more to income generating assets. The funds are typically used by investors who have already retired and provide more stability in returns with a constant stream of income.
Conclusion
There are multiple strategies used by balanced fund managers with a degree of asset allocation decisions faced by each fund. Some fund managers are very active when it comes to switching between asset classes like equity and cash while others prefer to stick to an allocation that does its job in delivering attractive returns over time.
There are mainly three types of balanced funds split into different risk categories (cautious, moderate and aggressive). Sharenet offers its clients a simple entry into one of these fund categories with its fund of funds range:
Cautious – Sharenet BCI Conservative FoF
Moderate – Sharenet BCI Moderate FoF
Income Funds
Unit trusts cater for almost any need and there is a whole category of funds dedicated to providing investors with income. This article looks at income funds and the ways fund managers invest to maintain a constant flow of payments.
Sources of Income for Funds
Income funds focus more on providing investors with strong levels of income rather than capital growth. The main source of income for income funds are interest and dividends. Interest income is usually received in the form of coupon payments received from bonds, debentures, notes, preference shares and money market instruments in the fund. The fund reinvests this income and then periodically distributes it to investors on pre-determined distribution dates that could be monthly, quarterly or semi-annually. These dates are available on the fund fact sheet (minimum disclosure document).
Income funds can also invest in property. Individuals often buy property as a source of income. The property is bought and then put up for rent to receive the monthly rental income. Income funds are no different and invest in property companies listed on the Johannesburg Stock Exchange. These listed property companies receive rental income from their property portfolios and also make profits from selling property. This income and profits are then paid out as dividends. Another group of property companies known as Real Estate Investment Trusts (REITs) have to pay out at least 75% of its income to shareholders. It’s important to note that the payments from REITs are taxed as income while dividends from listed property- and equity companies are subject to dividend withholding tax. Unit trusts will indicate how the income is split between interest and dividends.
Why Yield is Important
The yield of an investment is the rate at which you earn income on your investment. If you invested R10 000 in a fund and over one year the fund pays out a total of R1 000, then the yield of the fund is 10% (1 000 ÷ 10 000). Now why is it so important to know what your yield is on an investment?
The main objective of investments is to create wealth or at least to preserve it. The value of R100 today is certainly worth more than the value of R100 you will receive five years from now. That’s because money loses value or purchasing power over time due to inflation. A smart investor knows that to create wealth, you first need to beat inflation. The return on income funds is predominantly measured by its yield and this usually is an indicator of the income you can expect to receive from the fund over the next year. The yield of your investment should therefore be higher than inflation and this difference is known as the real return (or spread above inflation).
Investor Profile
Income funds are mostly used as the low-risk portion of a portfolio aimed at generating cash flow for the investor. Someone looking to cover day to day expenses with their investment should consider an income fund, as these funds generally pay out income monthly or quarterly.
Income funds offer investors a return that beats inflation (currently about 5.5%) with little variability in the return. Your money is also readily accessible and funds can be withdrawn within a couple of days, giving the investor liquidity in case of an emergency. This makes income funds an attractive alternative to bank savings accounts that normally offers lower returns, and fixed deposits that lock you in for a set term and offers lower returns. The time horizon for income funds is generally short term (shorter than three years) and longer term investors should consider adding growth assets to their portfolio to maximise return. If you are looking to save for a down payment on a house or that overseas holiday you have been promising yourself, then an income fund is a great option to consider.
The Sharenet Income Plus Fund offers investors the opportunity to invest in an income fund that has returned more than 9.40% over the past year to supplement your income or to help to make your dreams come true.
Unit Trust Sectors
Fund Managers often compare their fund performance to the “sector” or their “peers”, but what exactly are they referring to and how are the funds they use for comparison grouped together?
The Association for Savings and Investment SA (ASISA) is a non-profit company that plays a significant role in the development of the social, economic and regulatory framework in the unit trust industry. One of its tasks is grouping unit trusts into 33 categories based on fund objective, investment policy and restrictions like asset class exposure and region. The range of unit trusts in the market is continuously expanding and the number of categories could change. There are two tiers of classification.
The first tier of classification:
South African portfolios
Invest at least 70% of their assets in SA with 25% allowed in foreign markets and a further 5% in Africa.
Sharenet Investments manages 9 South African unit trusts.
Worldwide portfolios
Invest in both South Africa and foreign markets.
Global portfolios
Invest at least 80% outside South Africa.
The Sharenet BCI Global Balanced FoF falls within this category.
Regional portfolios
Invest at least 80% in a specific country or region.
Second tier of classification
Equity portfolios
Invest at least 80% in equity and seek maximum capital appreciation as their primary goal. There are 7 sub-categories of equity portfolios.
General; Large Cap; Mid & Small Cap; Resources; Financials; Industrials and Unclassified.
A fund is classified in a specific sector if it has at least 80% exposure in the sub-category specified.
The Sharenet BCI Equity fund that is classified in the SA Equity General sector.
Multi-Asset portfolios
Invest in a wide spread of investments in equity, bond, money and property markets. There are 6 sub-categories of multi-asset portfolios.
Flexible – Unit trusts in this sector have a significant degree of discretion over asset allocation and often sees managers actively manage the asset split to maximise return.
The Sharenet BCI Flexible fund is classified in the SA Multi-Asset Flexible sector.
High Equity – Unit trusts in the High Equity sector are limited to a maximum exposure of 75% in equity and 25% in property.
The Sharenet BCI Balanced fund and Sharenet BCI Aggressive FoF are both classified in the SA Multi-Asset High Equity sector.
The Sharenet BCI Global Balanced FoF is classified in the Global Multi-Asset High Equity sector.
Medium Equity – Unit trusts in the Medium Equity sector are limited to a maximum of 60% equity and 25% property exposure.
The Sharenet BCI Moderate FoF is classified in the SA Multi-Asset Medium Equity sector.
Low Equity – Unit trusts in the Low Equity sector are limited to a maximum exposure of 40% in equity and 25% in property.
The Sharenet BCI Stable fund and Sharenet BCI Conservative FoF are both classified in the SA Multi-Asset Low Equity sector.
Income – Unit trusts in the Income sector are limited to only 10% equity and 25% property exposure.
The Sharenet BCI Income Plus fund is classified in the SA Multi-Asset Income sector.
Target Date – Unit trusts in this sector have a target date and the asset mix of the portfolio changes as the target date approaches. An investor looking to retire on a certain date could invest in a portfolio with a target date close to the date of retirement. Fund in this category cannot be compared as they would have differing target dates and asset splits.
Interest Bearing portfolios
Unit trusts in this category invest exclusively in bond, money market instruments and other interest-earning instruments. Equity and portfolio investments are excluded in this category. There are 3 sub-categories of interest-bearing portfolios.
Variable Term; Short Term and Money Market.
Real Estate portfolios
Invest at least 80% in listed property shares, property loan stock and real estate investment trusts (REITS).
The Sharenet BCI Property fund is classified in the SA Real Estate General sector.
To sum it all up. A portfolio that satisfies the limits of a global portfolio, as well as a real estate portfolio, will be classified in the Global Real Estate General sector. Similarly, you can find a portfolio classified in the Worldwide Multi-Asset Flexible sector or the South Africa Multi-Asset Flexible sector if more than 75% of its assets lies in SA. The fund categories provide for more meaningful comparison between portfolios to assess fund managers relative to their competition.