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CityPress - - Tenders - COM­PILED BY NEESA MOOD­LEY

Bud­get: Have your say...

It’s that time of the year again. The min­is­ter of fi­nance will de­liver the bud­get speech on Fe­bru­ary 24, and you have the op­por­tu­nity to tell him what you want.

Fi­nance Min­is­ter Pravin Gord­han wants to hear about the fol­low­ing:

What are the three things that govern­ment does very well?

What are the three things that govern­ment should stop do­ing?

Where are the three ar­eas that govern­ment spend­ing should be di­rected to­wards?

How can South Africa achieve in­clu­sive eco­nomic growth? You can send your con­tri­bu­tions in the fol­low­ing ways: on Face­book, find the Na­tional Trea­sury South Africa page; on Twit­ter, fol­low @Na­tion­alTreasu2 and use the hash­tag #Bud­get2016; or go to Na­tional Trea­sury’s web­site at trea­sury.gov.za.

Prop­erty rate hike alert

The re­cent rate hike, tak­ing the Re­serve Bank’s repo rate to 6.75%, is ex­pected to have a knockon ef­fect of re­duced de­mand in the prop­erty mar­ket as prospec­tive buy­ers be­come more wary of fur­ther rate in­creases.

Bond orig­i­na­tor ooba says many con­sumers are al­ready fac­ing in­creased fi­nan­cial strain from el­e­vated lev­els of debt and a higher cost of liv­ing.

Kay Gelden­huys, ooba’s man­ager for prop­erty fi­nance pro­cess­ing, says that, as an ex­am­ple, the rate in­crease will en­tail an ad­di­tional R331 a month for a home­owner re­pay­ing a R1 mil­lion home loan over 20 years.

This view is sup­ported by John Loos, house­hold and prop­erty strate­gist at FNB Home Loans, who says un­der cur­rent eco­nomic con­di­tions, house price growth is also ex­pected to slow from an av­er­age of 6% last year to an av­er­age of 4.8% this year. Growth for next year is ex­pected to be even slower at 3.1%.

“The rental mar­ket could be­gin to mildly out­pace the slow­ing home­buy­ing mar­ket through the fore­cast pe­riod, in turn lead­ing to ris­ing yields on res­i­den­tial prop­erty,” he says.

Top fund man­ager

Ned­group In­vest­ments walked away with the pres­ti­gious ti­tles of both South African man­age­ment com­pany of the year and off­shore man­age­ment com­pany of breed.

The fund man­ager has been among the top three unit trust fund man­agers for seven years in a row, but this year pipped favourites Corona­tion and Al­lan Gray to the post.

Corona­tion came se­cond and Al­lan Gray came third.

Two ad­di­tional awards were pre­sented: straight per­for­mance over 20 years by a do­mes­tic equity fund, and risk-ad­justed per­for­mance over 20 years by a do­mes­tic as­set al­lo­ca­tion fund.

Both awards were scooped by In­vestec As­set Man­age­ment for the In­vestec Equity Fund R and the In­vestec Man­aged Fund R/A, re­spec­tively.

Pe­ga­sus fined R50 000

Pe­ga­sus Wealth Man­age­ment has been fined R50 000 for con­tra­ven­ing the Col­lec­tive In­vest­ment Schemes Act by so­lic­it­ing in­vest­ments from two in­vestors for an un­ap­proved for­eign col­lec­tive in­vest­ment scheme.

When im­pos­ing the fine, the Fi­nan­cial Ser­vices Board (FSB) took into ac­count that the con­tra­ven­tion was the re­sult of a bona fide er­ror and that Pe­ga­sus Wealth Man­age­ment im­me­di­ately in­formed the af­fected clients of the er­ror.

When you in­vest with a fi­nan­cial ser­vices provider, you should first check with the FSB that the com­pany is ac­cred­ited to ad­vise you.

For ex­am­ple, the fi­nan­cial ser­vices provider may be ac­cred­ited only to ad­vise you on lo­cal in­vest­ment prod­ucts and not on off­shore prod­ucts.

You can check the provider’s ac­cred­i­ta­tion on the FSB’s web­site – fsb.co.za.

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