psg konsult woodhill februarie 2013 · 2013-10-25 · psg konsult woodhill | global house, 296...

PSG KONSULT WOODHILL FEBRUARIE 2013

PSG Konsult Woodhill | Global House, 296 Glenwood Weg, Pretoria | tel 012 472 9834/5 | faks 086 508 4227

OUR TOP 10 HOLDINGS

Investors frequently ask me whether or not our choice of shares reveals a

particular theme or ‘story’. Investors are also curious as to how we alter our

selection of shares based on the economic backdrop. While we acknowledge

that themes sometimes emerge, which in hindsight may be linked to the

economic climate, we make investment decisions based on our assessment of

individual companies and not in response to the markets.

A tale of 10 shares

Every share we own is carefully selected, each for its own unique reasons,

but if pressed to pick a ‘message’ from our Top 10 it would be one of

diversity. Our selection is kept diverse intentionally, as we believe this

provides investors with a degree of stability in an environment which is

hugely uncertain.

We take a ‘bottom-up’ approach to investing, seeking to understand the

underlying value of shares based on long-term fundamentals. If we can buy

a share for less than we believe it is worth, we will do so. This differs from a

‘top-down’ approach, where investors start with a wide view of the world

and make decisions about which countries or sectors look the most

attractive at any given time and buy shares accordingly.

INHOUD

1. Our Top 10 Holdings 2. Budget Speech 2013 3. Uittree annuïteite en

belasting

Ons dienste:

- Holistiese finansiële- en

beleggingsbeplanning

- Beplanning vir en by aftrede

- Implementering van

beleggingsvoorstelle

- Portefeuljebestuur

- Analise van bestaande

beleggingsportefeuljes

- Werknemersvoordele-

pakkette

- Aandelemakelaarsdienste

-Lewensversekering, siekte en

ongeskiktheidsdekking

American Airlines saved $40,000 in 1987 by

eliminating one olive from each salad in first class.



Things our top shares have in common:

1. Strong balance sheets

We spend a lot of time assessing the financial health of the companies we invest in

on behalf of our clients. Many of the companies in our Top 10 are strong cash flow

generators; often substantially more cash is being generated than is being

consumed by the underlying operations. In addition to rewarding shareholders

through dividends and/or share buybacks, this has enabled these companies to

comfortably reduce their debt levels or grow their cash balances. Lower levels of

indebtedness have reduced borrowing costs, further enhancing earnings and

improving liquidity – a virtuous cycle.

With many of our companies well placed to take advantage of any opportunities

that may present themselves, a well-capitalised balance sheet will remain an asset

in the uncertain times that lie ahead.

2. Diversified

Most of the companies we invest in are globally diversified with well-diversified asset bases. This is important as

they are largely not exposed to a single group of consumers or region or country, giving them more chance of

success in the face of tough times in a particular area.

3. Geared to a weaker rand

With a weakening rand a key risk to several companies’ profitability, it is important to bear currency risk in mind

when researching and assessing potential shares. Well over two-thirds of the aggregate revenues of our Top 10

shares are generated either directly overseas, or are exposed to a foreign currency (e.g. Sasol’s exposure to the

rand/dollar oil price).

Most, but not all, of the companies in our Top 10 also have strong leadership who are capable of navigating their

companies through what could become even more difficult times. Leadership can be a key differentiator between

similar companies in a sector, but it is often also built into the share price.

Swede is die land in die wêreld wat die meeste geld op

tamatiesous spandeer


Our current holdings

The list below reflects a disparate selection of shares from a variety of sectors; from financials, to industrials to

resources. Some are defensive plays, like British American Tobacco, SAB Miller and MTN. Some are cyclical like

Sasol, where others are more growth orientated like Naspers. A closer look will show that their cycles are all very

different, which provides added diversity.

In summary: We believe investors are best served over the long term through a well-diversified selection of shares

that trade at discounts to their intrinsic values. We rely on our investment philosophy and research process to

uncover the best opportunities and invest in these opportunities with conviction. They will make out roughly

between 55% - 60% of some of the managed portfolios depending on when the share was bought into the different

portfolios.


More Monopoly money is printed yearly than

real money throughout the world


THE BUDGET SPEECH 2013

Retirement fund deductions

As from the 1st of March 2014 contributions by employees and employers to pension, provident and retirement

funds will be tax deductible by individual taxpayers. Deductions will be limited to 27.5 per cent of the higher of

employment or taxable income. Annual deductions will be limited to R350 000. No changes to withdrawal or

retirement rates.

Retirement fund reform

Retirement funds will be required to identify appropriate preservation funds for exiting members, who will be

encouraged to preserve when changing jobs. They will be required to guide their members through the process of

converting savings into a regular income after retirement, and to choose or establish default annuity products that

meet appropriate principles and standards. More competition will be promoted by allowing providers other than

life offices to sell living annuities.

Taxation of Interest

Interest rate exemptions from a South African source increases to R23 800 and R34 500 respectively with no

amount allowed for foreign interest. By April 2015 the interest exemption will however be replaced with new

investment vehicles of which the interest, dividend and CGT return will be completely tax exempt. Non-residents

who are physically absent from the country for more than 6 months will be exempt from tax on their interest.

Dividend tax, CGT, Transfer Duties& Estate Duties

No changes to these taxes were announced. The exempt portion of foreign dividends are 25:40 with the result that

the maximum tax rate on foreign dividends is 15% compared to a fixed 15% on local dividends.

Trusts




Trusts

Although this budget did not see the wealth tax that was greatly anticipated, trusts have been dealt a severe blow.

To curtail tax avoidance associated with trusts due to their flexibility and flow-through nature a number of tax

amendments are proposed for the next year. The use of trusts to avoid estate duty will also be reviewed. (These

proposals will not be applicable to special trusts.)

The proposals are:

Discretionary trusts will no longer act as flow-through vehicles and all income will be determined at trust level.

Distributions will act as deductible payments to the extent of current taxable income and included as ordinary

revenue in the hands of the beneficiary to the amount it was deducted.

Trading trusts will also be taxed at the entity level with distributions acting as deductible payments

Distributions from offshore foundations will be treated as ordinary revenue.

UITTREE ANNUïTEITE EN BELASTING

So aan die einde van ‘n belasting jaar, kners almal so bietjie op hulle tande as hulle besef hoeveel hulle weer moes

afstaan aan Jan Taks.

‘n Goeie beleggingsvoertuig om jou belasting rekening vir die volgende jaar te verminder, sowel as om te spaar vir

aftrede, is uittree annuïteite. Daar is ‘n paar redes hiervoor:

1. Jou maandelikse bydraes is belasting aftrekbaar:

Bydraes wat ‘n individu maak tot ‘n uittree annuïteit kan as volg teruggeëis word vanaf inkomste belasting :

15% van nie-pensioendraende inkomste; of

R 3 500 toelaatbare bydraes; of

R 1 750

Die hoogste bedrag van hierdie drie kan teruggeëis word.

2. Geen belasting is betaalbaar binne die fonds nie:

Enige groei en inkomste wat gegenereer word binne ‘n uittree annuïteit is kwytgeskeld van inkomste belasting,

sowel as kapitale wins belasting. As gevolg hiervan groei kapitaal belê binne’n uittree annuïteite meer.



3. Vry van boedelbelasting:

Beide die lompsom (geakkumuleer vanaf 1 Januarie 2009), sowel as die annuïeit word verwyder vanuit

die boedel en word dus kwytgeskeld van boedelbelasting. Dit beteken bydraes gemaak tot ‘n uittree

annuïteit is ook vry van donasie belasting, anders as bydraes wat gemaak word na trusts.

4. Belasbaar teen gunstige koers met aftrede:

Met aftrede is die eerste R 315 000 van die 1/3de lompsom belastingvry. Die restante 2/3des word

volgens ‘n glyskaal belas.

Dit is belangrik om te weet dat die samestelling van hedendaagse uittree annuïteite baie anders is as die wat

uitgeneem is 10 jaar gelede. Daar is geen risiko (lewens) komponent daaraan verbonde nie en die basiese

struktuur is soos die van ‘n effektetrust belegging. Die groot verskil tussen ‘n uittree annuïteit en ‘n effektetrust

belegging, is dat die annuïteit gebonde is aan sekere reëls. Hierdie reëls moet egter nie in ‘n negatiewe lig

beskou word nie, siende dat dit verseker dat geld gespaar word vir aftrede en dat die gelde eers bekombaar is

na die ouderdom van 55 jaar.

Indien u enige vrae het of belangstel om meer uit te vind oor die voordele van uittree annuïeite, kontak ons

gerus vir ‘n afspraak.

PSG Konsult Financial Planning in an authorised financial services provider. /PSG Konsult

Finansiële Beplanning is 'n goedgekeurde finansiële diensteverskaffer.

PSG Konsult Woodhill Global House, 296 Glenwood Weg

Pretoria tel 012 472 9834/5 faks 086 508 4227

[email protected] [email protected]

www.psgkonsult.co.za/woodhill

PSG WOODHILL NUUS

Nuwe spanlid vir die kantoor

Ons is baie opgewonde om aan te kondig dat ons nog ‘n spanlid ryker

word in Maart. Chris Davies het vir die afgelope twee jaar gewerk as ‘n

klerk by ‘n vooraanstaane ouditeursfirma in Pretora. Ons weet hy gaan

ook iets unieks na die tafel toe bring en ons span goed aanvul.

Nuwe spanlid vir die Prinsloo gesin

Op die tuisfront gaan Marina op kraamverlof 15 Maart 2013 en sal eers

weer terug wees op 15 Julie 2013. Chris sal in haar afwesigheid alle

administrasie behartig, so dit sal ‘business as usual’ wees.

Daar begin elke 23

sekondes ‘n Tupperware

partytjie iewers in die

wêreld

psg konsult woodhill februarie 2013 · 2013-10-25 · psg konsult woodhill | global house, 296...

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