Optima Brokers

Specialist Financial Planning

Category: General Articles


The latest on Steinhoff

Dec 08, 2017

The recent significant market events related to Steinhoff International Holdings and its subsidiaries have been widely reported in the media and we would like to share our views as well as the views of the various asset managers who manage your portfolios.

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Table Talk: We discuss "hot" funds and if they should play a role in your investment strategy

Jun 27, 2017

Question: My friend has told me about some hot funds that have been performing really well recently, with double-digit returns. Isn’t it a good idea to include these funds in my portfolio?

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Ratings Downgrades and our Equity Positioning

Apr 06, 2017

If the cap fits, wear it – actions come with consequences. Even though President Zuma’s cabinet reshuffle last week effectively made rating downgrades far more of a certainty in our minds, it still came as a surprise when S&P downgraded South Africa’s foreign credit rating by one notch last night to “junk status” (BB+), ahead of their scheduled June review.

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Cabinet Purge Ignites Downgrade Decision

Apr 05, 2017

A lot has been said over the past year in the media regarding the possibility of whether South Africa (SA) will be downgraded to “junk status” by the respective rating agencies, namely Moody’s, Standard and Poor’s (S&P) and Fitch.

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The Zuma Shock

Jan 13, 2016

While you were away, much has transpired in our economy, headlined by the shock removal of Minister Nene by Jacob Zuma. The surprise announcement was not received well by markets, with an estimated R500 Billion in value, being wiped off since the debacle.

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Coming to a Standstill

Nov 09, 2015

It looks like it may be a hat trick, but in a negative sense. By JP Landman - Political Analyst

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Tales of Rice & Rewards

Oct 06, 2015

Periodic volatility in global markets, diverts attention away from the key components of long term investing. In times such as these, Allan Gray subtly reminds us how success is a function of time in the market and not market timing.

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Why and How to Invest Offshore

Sep 01, 2015

Investors are regularly reminded of the wisdom of investing offshore and not adopting an investment strategy that focuses only on South African assets. There are a number of compelling reasons for investing offshore.

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Estate Duty and Capital Gain Tax on Offshore Assets

Jun 27, 2015

Many South Africans have invested in offshore property in recent years but neglected to consider the tax effect from an estate planning point of view, as it is often assumed that offshore assets will not form part of a resident’s estate for estate duty purposes. In South Africa residents are taxed on worldwide income and capital gains and estate duty is levied on the worldwide assets of ordinarily residents including offshore assets. Therefore, it is essential to consider the amount of estate duty and capital gain tax (hereinafter referred to as “CGT”) payable on death with regards to offshore assets, as this will have an effect on the liquidity of the estate.

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Time in the Market Vs. Market Timing

May 27, 2015

The annual returns on the Johannesburg Stock Exchange (JSE) All Share Index (ALSI) for the period 1960 – 2013 are shown in the graph below. The ALSI has been negative for 13 of the 54 years (26%), and therefore it has been positive 76% of the time. The fact that the market returns fluctuate suggests that there may be a “best time” and a “worst time” to invest on the JSE. The “worst time” should theoretically be when the market has had a positive return and is entering a negative phase e.g. in 1960 the return on the ALSI was – 11.9% (including dividends), so the “worst time” to invest was at the beginning of 1960.

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