Investors’ priority should be to preserve wealth in the prevailing environment of low growth, low interest rates and low inflation. Addressing a PSG Wealth seminar at the Victoria Country Club yesterday, Coronation senior portfolio manager Charles de Kock said the days of healthy growth and high returns are over, at least during the short- and even medium term. “It’s time for prudence, maintaining an income, and watching those annuity draw downs,” he said. PSG head of strategic and research Ron King pointed out that for a ZAR4 000 monthly annuity, ZAR1 million is needed. “For a monthly retirement income of ZAR20 000 a month, one has to have a ZAR5 million investment,” he said.

Speaking of factors that influence currency movements, exchange rates and inflation, De Kock said the widely expected credit ratings downgrade has already been priced into the market. “It’s not all bad news, bearing in mind that Russia, Brazil and Turkey are already in that position,” he said. Much as some domestic developments continue to impact on sentiment - including the apparent impasse within the ANC over president Jacob Zuma’s future - the volatility of the Rand is a function of uncertain times. “Remember, the Rand is a great shock absorber that protects us from ourselves,” he said.

Click below link to download EbizBlitz November 2016:
Pietermaritzburg Chamber of Business - Business Skills