HEARD street on the
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.