Archive: October 2015

Developments at SAIFM

By Karin van Wyk, CEO, SAIFM SAIFM 2nd Regulatory Summit: 1 October 2015, Hilton, Sandton The 2nd SAIFM regulatory summit was again a huge success due in no small way to the eminent speakers who [...]

SAIFM 2nd Regulatory Summit

SAIFM’s 2nd regulatory summit was once again a resounding success and is evidently meeting a great need in the financial services and markets for first-hand information about one of the greatest challenges the industry faces today: regulation. The summit however did not only explain regulation, it also offered solutions, technological and otherwise, to avoid non-compliance and the penalties and loss of reputation that may follow...

Foreword

By Christo Luüs, Chairman, SAIFM The role of financial inclusion in the economic development of Sub-Saharan Africa is explored in this edition using the World Bank’s Global Findex database to compare financial inclusion in sub-Saharan [...]

Financial inclusion: Sub-Saharan Africa in perspective

It remains incumbent upon financial services companies to find ways to help people to fulfil their financial needs in more protected ways and which remain consistent with how individuals currently use their money. This requires engaging with the particularities of our region rather than simply ascribing the characteristics of other global societies...

Are asset managers systemically important institutions?

The phrase “too-big-to-fail” defines the dilemma facing regulators when dealing with the recovery and resolution of systemically important financial institutions that are in distress. Fears about possible financial stability risk posed by the asset management industry have increased recently as a result of the sector’s growth…

JSE launches JSE Eris Interest Rate Swap Futures

The JSE launched new interest rate swap futures that will replicate the cash flows of OTC swaps, yet provides the advantages of an exchange traded product with margining. Based on the Johannesburg Interbank Agreed Rate (JIBAR) and denominated in South African Rand (ZAR), it will allow the contracts to replicate the cash flows of over the counter (OTC) swaps...

The best and the worst performing shares: 2010-2015

Over any given time, there have been and always will be winners and losers when investing in the stock market. It is a well-researched investment fact that most of the return associated with a diversified portfolio has to do with asset class selection—not share selection. However, many investors still find individual stock return comparisons interesting – although data sourcing may prove challenging...

Impact of external financing on the risk level of Viet nam wholesale and retail industry during and after the global crisis 2007-2009

The impact of external financing on the beta for listed companies in the Viet nam stock exchange is considered including whether risk levels of firms under changing scenarios of leverage increase or decrease dramatically and whether the dispersal of beta values is enlarged under different scenarios of leverage…

Information need not be ‘final’ in order to be ‘inside’ information

Just how specific or precise must inside information be in order to be classified as inside information? The Act seems to be quite clear on this…or is it? A recent, as yet unreported Pretoria High Court judgement raises some questions...

Prescription: a perfect present for Miracle Mile?

It is crucial for a creditor to be aware of the point at which prescription started running so as to avoid a situation where such a creditor loses the right to compel payment...

Trust taxation

The interim report by the Davis Tax Committee turned its focus squarely on trusts which is to be expected as trusts have for some time been viewed with much mistrust by the state as a mechanism for the affluent to protect their wealth and avoid paying their fair share of tax...

Separating the sizzle from the steak: Examining the need for diversification

What do Bernie Madoff, Barry Tannenbaum and Sharemax have in common? They started as credible organisations run by known people – people who also knew how to create allure and marketing buzz – SIZZZLE – and they all had an emotional hook…

Offshore investing – maximising opportunity, minimising taxation

South Africans can be excused for dismissing the idea of offshore investing. After all – not only does the offshore investment universe offer a seemingly overwhelming amount of products, asset classes and service providers to choose from – but it also hasn’t come close to generating the kind of returns that we have seen at home over the last 15 years...

Why small business does not create jobs

“Small business creates jobs” or so the saying goes. The corollary to this statement is that it is big business’ mandate to shed jobs as it attempts to do “more for less”. Both statements are true … well kinda …

Understanding your estate, estate duty and taxes

There is sometimes confusion as to what will actually constitute your estate for estate duty purposes after your death. How and on what amount will estate duty be calculated and how quickly after your death must this tax on capital be settled?

Crystal ball investing – Speculation leads to investment loss

The term “crystal ball investing” invokes images of smoke and mirrors, charlatanism and faux clairvoyance seeking to divine an advantageous future akin to the products of perfect foresight. This is inappropriate in investment practice. The identification of advantageous outcomes can only be predicated on what is known, what has been experienced, and the probabilities of particular outcomes…

Business rescue – Where will it end?

The SCA was recently tasked to determine whether an affected person may apply for a company to be placed in business rescue after a final liquidation order has been granted against a company. A shareholder, creditor, employee and registered trade union representing employees are regarded as affected persons in terms of the Companies Act...

Judgment clarifies proper interpretation of the words ‘binding offer’ in business rescue

The Supreme Court of Appeal has dealt decisively with the interpretation of the words 'binding offer” in terms of the Companies Act. This levels the playing fields as far as creditors are concerned ensuring that creditors retain their voting power and right to vote in accordance with the amount of claims they hold...

As JSE cracks and the hunt for stable income intensifies: don’t panic

If an investment objective is to obtain stable income that grows in real terms over time, equities will become an increasingly important component of an annuity portfolio. A diversification in investment styles could be important to create a smoother outcome if one needs to draw income form the portfolio...

The Art of Modeling Financial Options: Monte Carlo Simulation

Modelling is important because scientists investigate the world around us by building models that simulate real-world problems. Modelling is neither science nor mathematics: it is the craft that builds bridges between the two…

Shareholder and Director oppression remedies: A wider ambit

Unlisted companies by their very nature seem to lend themselves to internecine conflict, particularly when the interests are closely held. At such times the majority shareholders may use various tactics to further their own interests or to apply pressure to the minority shareholders...

Enhancing industry knowledge with exciting new content on Strate e-Tutor

With an increase demand for training requirements, and varying levels of understanding of stakeholders, South African Central Securities Depository, Strate, is constantly finding innovative ways to create new educational content that speaks to the masses. Strate has launched an online training portal, called Strate e-Tutor...