Financial Services

Investment Planning Local

Investment Planning Local

Unit Trusts

Unit trusts are portfolios of assets such as equities, bonds, cash and listed property, in which investors can buy units. This allows investors to spread their risk, whilst getting the benefits of professional fund management.
Other benefits include:

  • Easy and cost effective access to the equity, money, bond and listed property markets
  • Transparent pricing and performance: unit trust prices are published in the newspapers, reflecting the previous day’s closing price. This allows you to determine the value of your investments on a daily basis.
  • Easy access to funds within 24 hours
  • Protection for investors via a strictly regulated industry

Investment Planning Local

Exchange Traded Fund (ETF)

Exchange Traded Products (ETPs) include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). ETPs are listed instruments that cost effectively pool investor funds and aim to replicate the performance of a market index or comply with a particular mandate.
Exchange Traded Products are similar to unit trusts, as they pool investor funds so that you can cost effectively access a large basket of underlying investment instruments. However, ETPs are passively managed, which means that they track a security, basket of securities or market index and no active investment calls are made.
Exchange Traded Funds track a wide range of instruments, including shares. Most ETFs are collective investment schemes (CISs) and are bound by CIS regulations.
Exchange Traded Notes track debt instruments only. They are not CISs but are regulated by the Johannesburg Stock Exchange (JSE).
Both ETFs and ETNs are listed on the JSE.

Investment Planning Local

Endowment

An endowment is a type of savings plan. It provides investors with full access to their money after a specific period (in this case five years) or when the policyholder dies.
In South Africa, endowment plans are taxed at reduced rates (compared to the typical tax rate of an individual in the highest income tax bracket).
It is important to remember that an endowment is a long-term commitment. To get the full benefit of this type of investment, you must remain invested for at least five years. After five years, you will be able to withdraw your money whenever you need to. When you do decide to withdraw your money, you won’t have to pay any further tax on your investment.

Investment Planning Local

Flexible Investment Option

The Flexible Investment Option is designed to give you the freedom to tailor your investment to meet your objectives and risk strategy. It does not have any regulatory restrictions.
It allows you to diversify and minimise risk by blending a wide range of investment components. You can adjust your investment as your needs change.

Investment Planning Local

Participation bond

Participation bonds allow investors to invest in a fund that holds a portfolio of first mortgage bonds over commercial, industrial and retail property in South Africa. The fund lends up to 75% of the value of the property to a borrower and charges interest on the loan. The loan is secured against the title deeds of the property. The loan amount is limited in respect of the value of the property, and the remaining balance of 25% serves as additional security, which can be used as a recovery mechanism in the event that the borrower defaults. The investment is fully secured.
Participation bonds are governed by the Collective Investment Schemes Control Act 45 of 2002 and are strictly regulated by the Financial Sector Conduct Authority, which adds to the already low risk associated with investing in a participation bond. The manager or its directors may periodically have an interest in a property. Potential conflicts of interest are managed through our conflict of interest policy, ensuring that all transactions are concluded on an arm’s length basis in the interests of the investors.

Investment Planning Local

TFSA (Tax free savings account)

Tax-free savings accounts (TFSAs) were introduced in 2015 to encourage individuals resident in SA to save more. Through a TFSA, the growth and income received on the investment is tax free, which means you are not liable for any capital gains tax or income tax on the dividends and interest received on your investment. A TFSA is a convenient and flexible way to accumulate savings over time – as you won’t incur tax, more of your money is available to benefit from the power of compounding. Maximum investment amount: R3 000 per month. R36 000 per tax year. R500 000 over your lifetime.

Investment Planning Local

CAPITAL Guaranteed investment

A product where investors can be guaranteed that their capital investment will be safe as well as certainty around the rate of return on the investment. The products are marketed as a way to protect wealth.

A guaranteed investment is fairly straightforward. Most guaranteed investments are fixed for a 5-year term, capital is guaranteed, and the return is not allowed to drop below a certain percentage. The investment return can be paid out as monthly income, or it can compound towards to guaranteed capital component .

Contact Details

JW ELS Corporate & Individual Brokers CC

michiel@jwe-corp.co.za

+27 11 425 3344

The Hub @ M44, 37 Miles Sharp Str, Rynfield, Benoni, 1501

Mon-Thu: 8am-16:30pm

Fri: 8am-15:00pm

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