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Investment Indicators - 31 July 2017 |
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Paul Kruger
Author/Editor |
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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 |
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Distributed to 47,148 subscribers.
To advertise with us
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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. |
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Rates Review |
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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. |
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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% |
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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% |
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2. Money Market Funds |
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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. |
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From the Crow's Nest |
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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:
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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)
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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:
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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
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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
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Those who had received advice in the 2001-2007 period also had
more pension income than their peers by 2012-14:
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The ‘affluent but advised’ group earn £880 (or 16%) more per year
than the equivalent non-advised group
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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:
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Using advice to support the auto-enrolled – duty on employers to
ensure staff can access the best information and advice on their
pensions
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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
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Helping to create informed consumers through continued development
and roll out the pensions dashboard
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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. |
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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.
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Your Practice Made Perfect |
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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 |
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Unauthorised use of IDA Name / FSP Number
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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. |
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Regulatory Examinations |
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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:
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Click on the
Moonstone FAIS Exam website (www.faisexam.co.za)
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Click on the
second heading: “Update Your Booking/Personal Details/Get
results”.
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Key in your ID or
Passport Number used to register for the exam: click on Send
password.
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The system will
send a password to the e-mail address you provided at
registration.
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Use this password
to log in on the same address as above:
Type in the password – do not copy and paste.
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Click login.
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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. |
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Careers Platform
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Are you hiring? Advertise your position on Moonstone’s Career Platform
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The Moonstone website -
www.moonstone.co.za
- enjoys an average of 15 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 47000
dedicated financial decision makers who receive 2 newsletters per week. |
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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. |
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Featured Positions |
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Financial Advisors:
Odinfin, Irene, Pretoria - We are looking for insurance sales agents
to join our successful team.
Read More
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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
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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
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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
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In Lighter Wyn |
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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.
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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. |
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