China’s latest economic woes is a stark reminder that investing is complex. Here is a quick update on the main issues dominating media coverage:
Source: Morningstar
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Last year was one of those bad outcomes - the stock market experienced its worst ear in a decade-and investors are having a hard time shaking the feeling. The market has rallied nearly 30% since October, which, in theory, means we've entered a new bull market. However, many people simply do not care - last year's scars are still fresh. Taking the pulse of institutional investors, many remain sanguine about the market's prospects. According to the June Marquee QuickPoll, which surveyed nearly 900 institutional investors, only 3% of investors classify themselves as "bullish." Source: Moringstar
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More information on the investment portfolios: Minimum investment lump-sum: R100,000 Investment term: 5 years Can nominate beneficiaries Impact Portfolio: This invests in green energy, smart agri, property finance and private capital fedgroup_impact_portfolio_f98d085b83.pdf Diversified Alternates Portfolio: This invests in the Fedgroup Participation Bond Fund, green energy, smart agri, property finance and private capital. fedgroup_diversified_alternates_c315d7468a.pdf Fixed Endowment: This invests in selected assets generating a fixed return. It provides an after-tax nett return of about 8% p.a. fedgroup_fixed_endowment_overview.pdf If you are interested in investing in these products or have any questions, please email to [email protected], a financial advisor will contact you. The European Golden Visa programs are some of the most popular in the world. And with good reason. A look now at each country one-by-one: Portugal: From Euro 280,000 - After five years as a Portuguese Golden Visa holder, the investor and their family can apply for permanent residence or citizenship. They are allowed but not required to live in Portugal: as long as they spend at least seven days a year in the country, their residence permit remains valid. Full capital returned in year 5. Spain: From Euro 500,000 - A Spanish Golden Visa holder, the investor and their family do not need to take language and cultural exams to obtain this type of residence permit for 5 years. Also, they are not required to spend time in Spain, and the law allows investment property to be rented out. Malta: From Euro 135,000 - The status under the Malta Permanent Residence Program is granted for life. The investor has to fulfil several investment conditions: buy or rent real estate (for 5 years), pay government fees and make a charitable donation. They must also confirm that they have a capital / net worth of €500,000. A very affordable program. Greece: From Euro 250,000 - The Greece Golden Visa Program requires a minimum of Euro 250k of investment, in some regions, with recent increases to Euro 500k in others. They allow the property to be be rented out. After holding permanent residence for five years, the investor can sell the property and keep the permanent residence permit. Cyprus: From Euro 300,000 Cyprus Golden Visa holders must invest in real estate, residential or commercial. No taxes on global income, and the country has low income and property tax rates. The corporate tax rate is only 12.5%. After 5 years of living on the island in a soft Mediterranean climate next to the sea, a permanent resident can obtain Cyprus citizenship. Italy: From Euro 250,ooo - The Italian residence permit is issued for two years. It can then be extended for three years provided that the investment is maintained. Investors are not required to live in Italy if they do not want to obtain citizenship. Investors get citizenship by naturalisation under general conditions after 10 years of living in the country. Courtesy: Knightsbridge Group. For more information, click here: bit.ly/44mqe3M A minor can in fact be registered as a taxpayer in South Africa. This is in terms of section 67(1) of the Income Tax Act that "every person who at any time becomes liable for any normal tax or who becomes liable to submit any return contemplated in section 66 must apply to the Commissioner to be registered as a taxpayer in accordance with Chapter 3 of the Tax Administration Act.” If the minor therefore becomes liable to submit a return or becomes liable for any normal tax, the minor must be registered as a taxpayer. Section 68. Income and capital gain of married persons and minor children.—(1) Any-- (a) income received by or accrued to or in favour of any person married in or out of community of property which in terms of section 7 (2) is deemed to be income received by or accrued to such person’s spouse; or (b) capital gain which is in terms of paragraph 68 of the Eighth Schedule taken into account in the determination of the aggregate capital gain or aggregate capital loss of such person’s spouse, shall be included by such spouse in returns of income required to be rendered by that spouse under this Act. (2) In the event of the death of any person during any year in respect of which such income is chargeable or in which such capital gain is taken into account, the income or capital gain of such person’s spouse for the period elapsing between the date of such death and the last day of the year of assessment shall be returned as the separate income of such spouse. (3) (a) Every parent shall be required to include in his return-- (i) any income received by or accrued to or in favour of any of that parent’s minor children either directly or indirectly from that parent; or (ii) any capital gain or capital loss in respect of any transaction entered into directly or indirectly by that parent, which is taken into account in the determination of the aggregate capital gain or aggregate capital loss of any of that parent’s minor children, together with such particulars as may be required by the Commissioner. (b) Every parent shall be required to include in that parent’s return any income deemed to be that parent’s income in terms of subsection (3) or (4) of section 7 or any capital gain deemed to be that parent’s capital gain in terms of paragraph 69 of the Eighth Schedule. Income of Minor children A taxpayer is liable for the payment of tax on any income which has been received by or accrued to or in favour of any minor children if such income arises from a donation, settlement, or other disposition by – (i) the taxpayer; or (ii) any other person, if the taxpayer made a donation, settlement or gave some consideration directly or indirectly in favour of the other person or his family. A minor child will, however, be liable for tax on income which is received or accrues to him/her independently of him/herself; in his own right, for example, bona fide salary and investment income derived from his/her own funds i.e. from money inherited by him/her or received as a gift from any person other than the person mentioned in (i) and (ii) above or from any other source. Should a minor child’s taxable income be sufficient to render him/her liable for tax, the taxpayer, as the legal guardian, must register him/her for income tax purposes and obtain and submit a return on his/her behalf. All investment income received by or accrued to a taxpayer or his/her minor children must be declared (including investment income which has not been paid but has been utilised, accumulated or re-invested for the taxpayer or his/her minor children’s benefit). Where interest is claimed as a deduction against investment income received, full particulars (i.e. amounts invested/borrowed, interest rates, date of each loan and investment) must retained for a period of five years after submission of the return. Courtesy of: Fedgroup Let’s start with a thought experiment. If you look back on your investment journey to date, and the various hot tips you received – either via the media reporting the latest market craze, or something as simple as a friend’s hot tip at a Saturday braai. How many times did you act and buy into these hot tips? How many times did it pay off? Are you possibly still invested in one of these stocks, sectors or funds? With the benefit of hindsight, are you happy you invested when you did? Asset Class Research with a Long-Term Perspective 2023 continues to see gains across the board, although we’re seeing significant divergence within asset classes. Once again, inflation and interest rates are playing a prominent role, with inflation retreating at different speeds across the world as interest rates near their expected peaks. Economic resilience has been another major theme for the year to date, with stronger than expected growth. |
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January 2025
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