To Subscribe please click here

Moonstone logo
Investment Indicators - 31 July 2017
In This Week's Newsletter
Rates Review
Investment Rates
Money Market Funds
Top 3 Rates
 
From the Crow's Nest
The Value of Financial Advice – Recent UK study shows importance of opting for professional help
 
Your Practice Made Perfect
Moonstone Regulatory Update 2017 - Venues and dates of important workshops in September
Unauthorised use of IDA Name / FSP Number – Apparent fraudulent usage of Independent Dealer Association details
 
Regulatory Examinations
Updated schedules
Self-Help Guidelines to make a booking, download your certificate or view results
 
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Featured Positions
 
In Lighter Wyn
Are you a lemon picker? We also report on the sad passing of a wonderful inventor and an alternative to eight cups of water per day
Paul Kruger 2016-10-31
Paul Kruger Author/Editor
 
 
 
 

SuiteBox banner

I know God will not give me anything I can't handle. I just wish that He didn't trust me so much – Mother Teresa
 
Please connect with us: www.moonstone.co.za pkruger@moonstoneinfo.com or 021 883 8000

 
Facebook   Twitter   LinkedIn   YouTube  
Distributed to 47,148 subscribers.

To advertise with us
click here

 
GTC banner 2017-06-22
GTC Medical Aid Survey 2017 reveals small medical aids also offer good value
Smaller medical schemes perform well by offering consumers value for money, but they have not been as successful as some of the larger schemes in attracting new members.

This is one of the significant conclusions from leading wealth and financial advisory firm GTC in its seventh annual Medical Aid Survey (MAS) for 2017.

The Medical Aid Survey analyses and rates medical aid schemes and provides a standardised comparison and ranking of the choices available to consumers.

This year’s survey reviewed 23 open medical aid providers, with a total of 144 plans, which were categorised into 11 areas according to benefits offered.

Click here to read the article, or download the
2017 MAS pdf.
Rates Review
Top 3 rates
 1. Secured Investment Rates
Please note that (G) indicates a Guaranteed and (L) a Linked product. In order to understand the difference between guaranteed and linked rates, kindly click here for an explanation.
 R 100 000
 
 
 
     
  Company This Week Last Week
1 1Life (L) 6.700% 6.750%
2 Absa (L) 6.333% 6.385%
3 Assupol (G) 6.270% 6.290%
     
 R 1 000 000
     
     
  Company This Week Last Week
1 1Life (L) 6.700% 6.750%
1 Assupol (G) 6.700% 6.720%
2 Absa (L) 6.333% 6.385%
3 Discovery (G) 6.254% 6.314%
     
 2. Money Market Funds
  Company This Week Last Week
1 Prescient 8.150% 8.130%
2 Cadiz 8.020% 8.020%
3 Allan Gray 8.000% 8.150%
Please bear in mind that our figures, though based on the actual quotations that you also use, are for information purposes only, and can never replace the official quotation from the product house. In terms of the guarantees, you are requested to clarify the exact extent of such guarantees with the product house prior to advising clients.
Top of Page
 
Fedgroup large banner
From the Crow's Nest
From the Crow's Nest
The Value of Financial Advice
This is the title of an article, published on 13 July 2017, on research conducted in the UK by the International Longevity Centre.

The research finds that clients who received financial advice from 2001 to 2007 were significantly better off than those who did not.

Below is the summary on the ILC website. There is also a link to a comprehensive PDF version of the full findings.


‘The Value of Financial Advice’, produced by ILC-UK with the support of Royal London, analyses data from the largest representative survey of individual and household assets in Great Britain, the Wealth and Assets Survey. It finds that, even allowing for the fact that some groups are more likely to seek advice than others, those who received financial advice in the 2001-2007 period did better than an equivalent group who did not receive such advice, by 2012-14.

The report examines the impact of financial advice on two groups, the ‘affluent’ and the ‘just getting by’. The ‘affluent’ group is formed of a wealthier subset of people who are also more likely to have degrees, be part of a couple, and be homeowners. The ‘just getting by’ group is formed of a less wealthy subset who are more likely to have lower levels of educational attainment, be single, divorced or widowed and be renting.

‘The Value of Financial Advice’ finds that:
  • The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and £30,882 (or 16%) more in pension wealth (total £43,245)

  • The ‘just getting by but advised’ accumulated on average £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth (total £39,895)


The report also finds that financial advice led to greater levels of saving and investment in the equity market:
  • The ‘affluent but advised’ group were 6.7% more likely to save and 9.7% more likely to invest in the equity market than the equivalent non-advised group

  • The ‘just getting by but advised’ group were 9.7% more likely to save and 10.8% more likely to invest in the equity market than the equivalent non-advised group

  • Those who had received advice in the 2001-2007 period also had more pension income than their peers by 2012-14:

  • The ‘affluent but advised’ group earn £880 (or 16%) more per year than the equivalent non-advised group

  • The ‘just getting by but advised’ group earn £713 (or 19%) more per year than the equivalent non-advised group


The report found that 9 in 10 people are satisfied with the advice received, with the clear majority deciding to go with their adviser’s recommendation.

Despite the advantages of receiving advice, only 16.8% of people saw an adviser in the years 2012-2014.

Indeed, ‘The Value of Financial Advice’ finds that even amongst those who took out an investment product in the last few years, around 40% didn’t take advice, rising to 78% of people who took out a personal pension.

After controlling for a range of factors, ‘The Value of Financial Advice’ concludes that the two most powerful driving forces of whether people sought advice was whether the individual trusts an Independent Financial Adviser to provide advice, and the individual’s level of financial capability. Therefore, the report makes a series of recommendations to raise demand for financial advice including:
  • Using advice to support the auto-enrolled – duty on employers to ensure staff can access the best information and advice on their pensions

  • Mandating default guidance for those seeking to access their pension savings – to ensure people can get crucial information in a complex marketplace and avoid worst outcomes

  • Helping to create informed consumers through continued development and roll out the pensions dashboard

  • Ensuring regulators continue to place emphasis on access to independent financial advice


Ben Franklin, Head of Economics of Ageing, ILC-UK said:

“…the advice market is not working for everyone. A high proportion of people who take out investments and pensions do not use financial advice, while only a minority of the population has seen a financial adviser. Since advice has clear benefits for customers, it is a shame that more people do not use it. The clear challenge facing the industry, regulator and government is therefore to get more people through the “front door” in the first place.”

Sir Steve Webb, Director of Policy, Royal London said:

“This powerful research shows for the first time the very real return to obtaining expert financial advice. What is most striking is that the proportionate impact is largest for those on more modest incomes. Financial advice need not be the preserve of the better off but can make a real difference to the quality of life in retirement of people on lower incomes as well. The evidence shows that when people take advice they are overwhelmingly satisfied and benefit as a result. More needs therefore to be done to overcome the barriers to advice.”

Download a PDF.
Top of Page
 
Old Mutual banner 2017-07-31
 
Old Mutual banner 2017-07-24 bar

THE OLD MUTUAL
MAXIMISED INTEREST FUND (LIFE)


A low cost fund with stable returns that aims to consistently outperform money market and other short term assets.

The performance target is a market-related return with reference to movements in the 3-month JIBAR interest rate. The current interest rate on the fund is 8.81% p.a. net of a Management Fee.

This fund is only available for investment via the Old Mutual Invest Tax Free Plan, and this offers a great advantage since all investment return, which includes interest, are tax free.

Click here for the Fund Fact Sheet

Visit www.taxfreesignup.co.za for more details.

Old Mutual banner 2017-07-24 logo

Your Practice Made Perfect
Your Practice
Moonstone Regulatory Update 2017
On Thursday we reported on proposed amendments to the Long- and Short-term Insurance Acts, as well reforms to the Retail Distribution Review (RDR) and Binder Regulations.

Moonstone Compliance will present a series of workshops to provide the latest news on these and other important proposed regulatory changes which will have a major impact on your business.

A more detailed agenda containing topics and times will be provided on Thursday. Till then, please note the following dates and venues in your diary.

This is one event you dare not miss.
 
Town Venue Date
Port Elizabeth PE Golf Club 05/09/2017
East London EL Golf Club 06/09/2017
Cape Town The River Club 11/09/2017
Johannesburg Houghton Golf Club 19/09/2017
Pretoria Diep in die Berg 20/09/2017
Durban Coastlands Hotel Umhlanga 21/09/2017
Bloemfontein Kopano Nokeng 27/09/2017
Top of Page
 
SuiteBox horizontal banner 2017-01-12
 
Unauthorised use of IDA Name / FSP Number
We were advised by the Independent Dealer Association (IDA) of an entity who is apparently making unauthorised use of its logo and FSP number.

The IDA and IDA Risk Management confirmed that it has no connection with this motor dealer whose websites contain a link to what is called a “Verified FSP Dealer Code” which is in fact a FSB licence document bearing the licence number of the IDA, as verified on the FSB website.

The FSB website search facility does not contain details of the entity whose name appears licence document.

The IDA is in the process of reporting the matter to the FSB Board for investigation.
Top of Page
 
MBSE banner
Regulatory Examinations
Regulatory exams banner
2017 Schedule updated
Top of Page
 
Self-Help Guidelines to make a booking, download your certificate or view results
Candidates who wrote with Moonstone can now view their results, make a new booking or update their information on our website: www.faisexam.co.za

Here is what you do:
  1. Click on the Moonstone FAIS Exam website (www.faisexam.co.za)

  2. Click on the second heading: “Update Your Booking/Personal Details/Get results”.

  3. Key in your ID or Passport Number used to register for the exam: click on Send password.

  4. The system will send a password to the e-mail address you provided at registration.

  5. Use this password to log in on the same address as above:
    Type in the password – do not copy and paste.

  6. Click login.

  7. You will then be able to make a booking, download your certificate or view results.

Frequently Asked RE Questions

Email enquiries should be addressed to faisexam@moonstoneinfo.co.za. You can phone us on 021 883 8000 - select option 2 to speak to one of our consultants.
Top of Page
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Careers Platform Packages

•   The Moonstone website - www.moonstone.co.za - enjoys an average of 15 000 visits and approximately 39 000 page views per month.
Moonstone boasts an exclusive newsletter mailing list of over 47000 dedicated financial decision makers who receive 2 newsletters per week.
Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors: iInvestment, Risk, Healthcare, Banking, Retirement, and Insurance.


Advertise


Top of Page
 
Featured Positions
  • Financial Advisors: Odinfin, Irene, Pretoria - We are looking for insurance sales agents to join our successful team. Read More

  • Wealth Management Consultant: Rockfin Wealth Management, Sandton - If you have the required insurance sales experience for this client facing, sales and targets driven profession, then Read More

  • Senior Client Liaison Officer: Vunani Fund Managers, Newlands, Cape Town - VFM is looking for a suitably qualified EE candidate with an accounting diploma or degree. Read More

  • Short Term Insurance Junior Underwriter: JFA Shortterm Brokers CC, Milnerton - We require a responsible person with NQF4 and RE5 for all relevant tasks related to client services in our short term insurance practice. Read More

Top of Page
In Lighter Wyn
In Lighter Wyn
Lemon Picker
Sally Mulligan of Coral Springs, Florida, decided to take one of the jobs that most Americans are not willing to do. Sally applied for a job in a Florida lemon grove and seemed to be far too well qualified for the job. She had a liberal arts degree from the University of Michigan and had worked as a social worker and a school teacher.

The foreman frowned and said, "I have to ask you, have you had any actual experience in picking lemons?”

"Well, as a matter of fact, I have," she said.

"I've been divorced three times, owned two Chryslers, voted twice for Obama, and once for Hillary.”

She started work that same morning.

Sad passing of wonderful inventor

 

8 cups of water
 

Top of Page


Moonstone 47000 subscribers banner

Tel: +27 21 883 8000   |   Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za


P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa

Disclaimer: Services and products advertised by external product suppliers in this newsletter are paid for by the respective suppliers. Moonstone does not endorse any opinions, conclusions, data, products, services or other information contained in this e-mail which is unrelated to the official business of Moonstone and furthermore accepts no liability in respect of the unauthorised use of its e-mail facility or the sending of e-mail communications for other than strictly business purposes.

The complete disclaimer can be accessed here.
 
©2015 Moonstone. All rights reserved.