Fund of Funds

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Fund of funds (FoF) are unit trusts that invest in other unit trusts managed by different fund managers. Fund of funds are often referred to as multi-manager funds due to the fund’s exposure to multiple fund managers. The manager of the FoF selects the underlying funds and manages the asset allocation of the FoF. Investors are often sceptic about the value added by FoF managers that can justify the extra layer of management fees on top of the management fees from the underlying investments. The reality is that an excellent FoF manager can add value in many areas.

Asset Allocation

The FoF manager monitors the asset allocation of the fund daily to ensure the fund is well positioned for prevailing market conditions. The manager will for instance increase exposure to equity when expecting the asset class to outperform. Not all FoF managers actively manage the asset allocation, but those that do are usually experts in moving capital across asset classes. FoF managers can also select the best fund managers within each asset class. An asset management company that is excellent in managing equity funds, may not have the same level of expertise in managing fixed income funds. Combining funds this way may be out of reach for certain investors due to high minimum investment amounts. An investor can hence access the best of breed managers in each asset class by investing in a FoF.

Manager Selection

FoF managers have systems and processes in place to conduct a thorough due diligence on fund managers considered for inclusion into the FoF. Analysing fund managers generally consists of two steps. The first being a quantitative analysis of the fund manager’s performance and investment style to determine if the fund is a viable option for inclusion into the FoF. The next step is an intensive due diligence into the fund manager and the investment team. This often includes a visit to the offices of the fund manager and completing a questionnaire on the company’s investment process. This should help the FoF manager make the best choice when comparing and selecting funds to invest in.

Investment Style Diversification

Adding multiple fund managers into a single fund provides diversification across asset classes and investment styles. Fund managers have unique investment styles that follow a certain approach/strategy. Differing strategies will respond differently to certain market conditions. That means an investment strategy (like value investing) might do well in one year but could underperform in the next due to changing market conditions. This is where diversification comes into play. By combining investment strategies, you can offset the negative impact of a certain kind of strategy during the different market cycles and increase the stability of your return.

Lower Underlying Manager Fees

Fund of funds has scale and a lot more assets under management than a retail investor. This means they are in a strong position to negotiate management fees of the underlying funds they invest in. Sometimes the fund that is being considered for inclusion into the FoF will have an institutional fee class that charges a lower management fee than the retail fee class. These institutional fee classes have high minimum investment amounts that are out of reach for retail investors. By utilising institutional fee classes, a fund of funds can significantly lower its cost (measured by the Total Expense Ratio or TER).

No Capital Gains Tax When Switching

Fund of funds can switch capital from one fund to another without triggering Capital Gains Tax (CGT). Retail investors, on the other hand, will need to pay CGT if they switch from one fund to another and there was a profit on the fund being sold. If the investor decides to rather invest in a fund of fund, then the only time the investor could be liable to pay CGT is when selling units of the fund of fund. That means you don’t have to be concerned about being in the wrong fund because switches within the fund of funds trigger no CGT. View our tax in unit trusts article for more details on the tax treatment of unit trusts.

Conclusion

Fund of funds can certainly add value to investors with the most prominent trade-off being the fees that are usually higher versus the increased stability of portfolio return. The scale that fund of funds has could reduce overall fees, meaning a smaller cost for all the additional benefits. Some of the benefits include diversification, especially for investors with a low investment amount, and strong selection that should deliver superior performance. There is also no capital gains tax for a FoF when switching between funds.

Sharenet Investments manages three fund of funds that are registered South African unit trusts. The Sharenet BCI Conservative FoF has low levels of equity for the conservative investor. The Sharenet BCI Moderate FoF has more exposure to equity than the Conservative fund and is suitable for investors with a moderate risk profile. For the more aggressive wealth seekers, there is the Sharenet BCI Aggressive FoF that can invest up to 75% in equity and aims to grow wealth over the long term.

Unit Trust Sectors

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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.

Income Funds

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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.

Balanced Funds

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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

Aggressive – Sharenet BCI Aggressive FoF

10 Reasons to Consider Property

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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.

Offshore Investments Made Easy

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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.

News24.com | SA warned to be on high alert for ‘black death’ plague

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Johannesburg – South Africa is one of nine countries which have been warned by the World Health Organisation (WHO) to be on high alert for the “black death” plague.

The other eight countries at risk include the Comoros, Ethiopia, Kenya, Mauritius, Mozambique, France’s La Réunion, the Seychelles, and Tanzania.

An update on the outbreak, released in a WHO report, states that South Africa’s travel and trade links with Madagascar, where the outbreak has already killed 124 people and infected 1 133, has put it at risk.

The organisation says that the overall risk of the plague is very high and that, depending on the type of plague, there is a 30 to 100% chance of death within 72 hours if it is left untreated.

‘High mortality’ 

Antibiotics can be used to treat it upon early detection.

“Historically, the plague was responsible for widespread pandemics with high mortality. It was known as the ‘Black Death’ during the fourteenth century, causing more than 50 million deaths in Europe. “Nowadays, the plague is easily treated with antibiotics and the use of standard precautions to prevent acquiring infection,” the report stated.

READ: Madagascar plague deaths hit 94, 1 100 suspected cases: WHO

Madagascar was reportedly hit with the black death in September, and health authorities are concerned because it has affected urban areas, increasing the risk of transmission and spread, according to the WHO.

“Some of the neighbouring countries, namely Comoros, Mauritius and South Africa, have put in place measures to protect their population, including entry screening, information provision to passengers on how to seek medical care in case of symptoms, and other preparedness measures,” the report stated.

Symptoms 

Symptoms include sudden fevers, head and body aches, vomiting and nausea. There are two main clinical forms of infection: bubonic and pneumonic, according to a WHO fact sheet.

The bubonic plague is transmitted to humans by infected fleas.

The most common, but less dangerous form of the plague is the bubonic plague, causing “inflamed lymph nodes, which can then turn to puss-filled, open sores if the condition worsens”, the report read.

This can then develop into the pneumonic plague if the infection spreads to the lungs. From 2010 to 2015, there were 3 248 cases reported worldwide, including 584 deaths.

“Effective risk communication, social mobilisation and community engagement are critical. In addition, preparedness and readiness in neighbouring regions and countries, including at the points of entry, should be enhanced,” the report stated further.

SAA, which flies to Madagascar, and health department spokesperson Popo Maja, were not available for comment.

Sport24.co.za | Frylinck’s experience key for possible debut

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Cape Town – Dolphins all-rounder Robbie Frylinck is the only debutant in the Proteas squad, which features a host of players looking to breakthrough in the limited-overs format.

The Protea selectors look set to continue with the same trend of giving players opportunities, which has successfully unearthed a new crop of players for the future this past month.

Frylinck, 33, might be given the opportunity to don the green and gold in the upcoming T20 International series against Bangladesh starting at Mangaung Oval in Bloemfontein on Thursday.

READ: Frylinck looks to keep things simple on the big stage

Frylinck is a well-travelled campaigner in the T20 format, having played 87 matches with stints in the Indian Premier League and the Caribbean Premier League during his decade-long career.

Interim Proteas T20 skipper, JP Duminy says that Frylinck’s experience will be key if he is to be successful on the international stage.

“It’s a great opportunity for him if he gets the go ahead,” Duminy told reporters of Frylinck.

“It doesn’t matter at what age you come in, he has come in with a lot of experience and has played many games for his franchise. The experience is there, the key for him is to execute those skills under this type of pressure.

“This is the platform where we all get tested,” he added.

“This is the highest platform where players want to play, if you can test your skills here and come out on top, this is the place where you want to play.”

The first T20I match is scheduled to start at 18:00 in Bloemfontein.

Proteas T20 international squad:

Hashim Amla (Cape Cobras), Farhaan Behardien (Titans), Quinton de Kock (Highveld Lions), AB de Villiers (Titans), JP Duminy (Cape Cobras – captain), Robbie Frylinck (Dolphins), Beuran Hendricks (Highveld Lions), David Miller (Knights), Mangaliso Mosehle (Highveld Lions), Dane Paterson (Cape Cobras), Aaron Phangiso (Highveld Lions), Andile Phehlukwayo (Dolphins), Tabraiz Shamsi (Titans), Dwaine Pretorius (Highveld Lions)

News24.com | State capture: Zuma abandons part of his court application at the 11th-hour

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Pretoria – At the 11th hour, President Jacob Zuma abandoned a crucial part of his state capture court review which asks for the State of Capture report to be sent back to the public protector for further investigation.

However, the main part of the case in the North Gauteng High Court in Pretoria – to have former public protector Thuli Madonsela’s remedial actions reviewed and set aside – still stands.

In a surprising twist in the matter, which was set down for three days, Zuma’s advocate Ishmael Semenya SC abandoned a part of the Notice of Motion which relates to the remission of the matter back to the office of the public protector for further investigation.

ALSO READ: Public Protector does not have powers to dictate to Zuma, court hears

In the court papers, the relief which was abandoned – which caught the attention of seasoned legal minds, including the full Bench of judges, reads: “Remitting the matter to the second respondent for further investigation.”

Judge President Dunstan Mlambo and High Court Judges Phillip Boruchowitz and Wendy Hughes had to adjourn immediately to discuss the implications which the move had on the application before them.

But not before Steven Budlender, who represents the Democratic Alliance seized the opportunity to request a dismissal of the entire application.

“We have an abandonment in the last minute, literally the last second of my learned friends’ address. This is a fundamental part of the relief…I submit that this demonstrates that the court should dismiss this application as a whole,” he said.

Budlender added the decision to abandon was regrettable.

‘Cynical’ of Zuma

Representing the United Democratic Movement and the Congress of the People, Dali Mpofu, SC, said the decision “threw a spanner in the works”.

The lawyer representing the Economic Freedom Fighters, Tembeka Ncukaitobi, said he was concerned about Zuma’s commitment to establish a judicial commission of inquiry.

Giving his order, Judge President Mlambo gave the respondents until 16:00 on Friday to respond to the legal implications of Zuma’s decision.

READ: Zuma’s integrity under spotlight at state capture review application

Zuma’s legal team was given until next Tuesday to submit arguments on what the move means for the review application.

Commenting on the development, the DA’s James Selfe said it was cynical of Zuma to drop half of his application at the last minute.

“We regard this as the height of cynicism for the president, at the very last minute, to abandon half of his review application.”

‘South Africans need closure’

Selfe said the move was reminiscent of what had happened with the Nkandla saga, “where exactly the same tactics were used”.

“The president ran out of arguments and withdrew at the last minute and we believe that this is cynical beyond description. We hope that the court will take notice that this has wasted our time…and frustrated South Africans.

“It’s now been over a year since the public protector released her report and South Africans now need closure on the matter.”

Selfe said South Africans couldn’t wait for a commission of inquiry to be established that would get to “the bottom of this shameful history of South Africa and hold those responsible accountable”.

eNCA | WATCH: Mogoeng Mogoeng on judicial overreach

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  • Editor’s note: If you have trouble viewing the livestream, please click here.

CAPE TOWN – Chief Justice, Mogoeng Mogoeng has been asked to speak about judicial overreach at the Cape Town Press Club on Wednesday. 

This week, the North Gauteng High Court hears the President’s application to set aside the Public Protector’s order that an inquiry be held into state capture.

VIDEO AND BLOG: Zuma’s state capture application

Politicians have in the past accused certain judges of being anti-ANC. 

eNCA