Destiny news
DESTINY INVESTMENTS - South Africa is facing an economic storm, but there may be a silver lining
The International Monetary Fund’s (IMF) latest World Economic Outlook implied a potential contraction of 8% in South Africa’s economy in 2020 but the current rates of recovery of various sectors due to government lockdowns could see a contraction of as much as 10% in the country’s GDP this year. South Africa’s emergence from one of the most stringent lockdowns in the world has seen the economy currently running at around 80% of its pre-COVID capacity.
DESTINY INVESTMENTS - Default Regulations Update
The Minister of Finance issued the Default Regulations, in terms of Section 36 of the Pension Funds Act 24 of 1956, which prescribe conditions for default investment portfolios, default preservation and portability, and annuity strategies for Retirement Funds. All new default arrangements that came into operation on or after 1 September 2017 must comply with the requirements set out in the Default Regulations.
DESTINY INVESTMENTS - A YEAR IN REVIEW (2018)
Thankfully 2018 is finally over! As in any horror story there is nowhere safe to hide, and this was certainly the case in the investment world this past year, as every capital market was sold off. If there was a lesson to be learnt from 2018, it would be the importance of a well-diversified portfolio.
DESTINY INVESTMENTS - INVESTING IN A BEAR MARKET
We are not experiencing the same quick (albeit painful) correction of 2008/2009, but rather the prolonged bitter reality of the equally weighted Top 40 Index declining in value over this 5-year period. It is at times like these that an investor’s instinct is to flee the market, however, smart investing can defeat the power of emotion.
DESTINY INVESTMENTS - SUCCESS IS BLENDED
By combining active and passive management in an innovative matrix, GIB has been able to use traditional investment market leaders but has still managed to reduce costs and increase efficiency by using active management in a cost effective manner via a core-satellite approach
DESTINY INVESTMENTS - WHY PASSIVE & ACTIVE INVESTING IS BLENDED IN THE DESTINY PORTFOLIOS
Investors are being persuaded to choose an active or passive investment strategy by clever marketing campaigns but not with strong investment fundamentals. According to Blackrock, the largest asset manager in the world with over $6 trillion under management, “Investors should stop thinking in active versus passive terms...but rather in terms of how best to blend”.
DESTINY INVESTMENTS - A YEAR IN REVIEW (2017)
Just like the yo-yo, a toy every generation has had the pleasure and frustration of experiencing, the local capital markets had their fair share of ups and downs in 2017 showing volatility in equities, bonds, commodities and of course, the unpredictable Rand.
STEINHOFF: DESTINY RETIREMENT FUNDS' EXPOSURE
Steinhoff's financial results, expected to be released on Wednesday, 6 December 2017, were announced as being delayed earlier in the week owing to continuing auditor and regulator investigations into "accounting irregularities" in the company's financial statements...
INDUSTRY UPDATE - DEFAULT REGULATIONS
The Minister of Finance recently implemented the final retirement funds default regulations made in terms of Section 36 of the Pension Funds Act. The regulations are intended to improve outcomes for retirement fund members by aiming to provide better value in terms of their savings so that they can ultimately retire comfortably.
FROM THE DESK OF THE PRINCIPAL OFFICER
For the last two years South Africa has been battling to avoid downgrade to the dreaded “Junk Status”, or in more correct terms “below investment grade” status. Much to our frustration, this has finally transpired. Ironically, the downgrade by ratings agency S&P, may well galvanise South Africans to pressure for a change in the “new” status quo.
DESTINY INVESTMENTS 2016: A YEAR IN REVIEW
The year 2016 will go down as one with numerous black swan events. These are events that are rare, have an extreme impact, and are explainable and predictable - but only in hindsight.
Britain’s vote to leave the European Union and Donald Trump’s victory in the US presidential election had extreme impacts on markets. The sterling fell by more than 10% as it became clear that the UK had voted for exit, while the dollar swung wildly in the hours following Trump’s win.
WHAT CHANGES HAVE BEEN IMPLEMENTED FROM 1 MARCH 2016?
After a challenging few weeks as well as last minute changes, the 2015 Tax Laws Amendment Act (and the 2013 and 2014 Acts) provisions relating to retirement will come into effect on 1 March 2016, except for the annuitisation on Provident Funds and related provisions. The changes will be introduced retrospectively through an urgent tax amendment bill.
DESTINY INVESTMENTS 2015: A YEAR IN REVIEW
In 2015 the Rand depreciated significantly against the major currencies. This was as a result of emerging market jitters as well as South Africa's own internal woes. The Rand lost over 20% to the Euro and almost 34% to the US Dollar.
T-DAY IS HERE
The Taxation Laws Amendment Act, 2013 is in effect from 1 March 2016. This law allows for a 27.5% tax deduction, up to a maximum of R350 000 per annum, for all retirement fund contributions.
DESTINY INVESTMENT 2013: A YEAR IN REVIEW
How did the economy & the Destiny Portfolios fair...
GIB EMPLOYEE BENEFITS: LEGAL & TECHNICAL REPORT
Exciting changes to the Taxation Laws Amendment Act, 2013...
THE FINANCIAL SERVICES LAWS GENERAL AMENDMENT BILL
GIB Employee Benefits summarises the proposed changes to the Pension Funds...
THE RETIREMENT INDUSTRY’S PRESSING ISSUES
GIB Employee Benefits lists and comments on the more urgent reforms required....
BLENDING ACTIVE & PASSIVE: THE ULTIMATE INVESTMENT STRATEGY?
GIB Employee Benefits & Destiny Umbrella Retirement Funds answer this hotly debated question...
BUDGET 2013 AND RETIREMENT REFORM
GIB Employee Benefits overview of the Minister of Finance 2013 proposals...
DESTINY INVESTMENTS - A YEAR IN REVIEW
Destiny Umbrella Retirement Funds - Performance Excellence...
NATIONAL TREASURY UPDATE
From the Desk of the Principal Officer of the Destiny Umbrella Retirement Funds...
DESTINY ADDS AN INDEX FUND TO ITS INVESTMENT PORTFOLIOS
Active vs Passive Asset Management: Destiny Adds an Index Fund to its Investment Portfolios...
GIB BUILDS IT'S DESTINY
As GIB Insurance Broking Group celebrates 30 successful years in business, the Destiny Retirement Fu...
OPTIONS ON RESIGNING FROM A PROVIDENT OR PENSION FUND
Pay tax, take a lump sum, purchase an annuity or transfer?...
GROUP RISK COVER AND FRINGE BENEFIT TAX
The purpose of this newsletter is to focus on the practical aspects relating to the changes introduc...