Tag: capital loss

Dividing your savings into two separate categories – each with its own unique purpose – can provide clarity and boost your progress towards achieving your financial goals. When it comes to saving money, having a clear strategy in place can make all the difference.

2022 was an extremely tough year for global fixed income assets, with long bond yields rising sharply in developed markets resulting in one of the worst years for bond markets in almost a century. Emerging market bonds suffered both from a correlated move higher in yields in line with developed market bonds, but also from heightened volatility.

The number one priority for a fund manager is identifying appropriate investments and combinations of these that offer the best risk-return profile for the fund managed. This challenge has and continues to face all portfolio managers, even when investing in income-generating assets, which are generally viewed as low-risk investments.

Although personal rights are clearly assets for capital gains tax (CGT) purposes, they add a layer of complexity which has not been clarified in recent court decisions. Personal rights play an important role in the determination of capital gains and losses.

Many of us became more comfortable with using technology for everyday purposes like buying groceries, clothing and medication. One aspect of investing that was magnified during the lockdown was the importance of diversification. Introducing different asset classes and geographies into a portfolio can certainly be put down as one of the major lessons from last year.

It is an inevitable consequence when operating in a distress economy, such as we find ourselves in South Africa these days, that shareholders will find themselves disposing of companies for less than they paid for them, whether the companies were formed or purchased by those shareholders.

With all the uncertainty in the South African market and concerns about future investment returns, many investors are looking offshore for investment opportunities. A diversified investment portfolio is always a good strategy when saving for retirement but before you set off looking for greener pastures in offshore markets, take note of Regulation 28 and its integration in retirement annuity funds.

Your friends and family may offer you financial advice with good intentions, but you should be wary of basing your investment decisions purely on stories shared 'around the braai'. People love to give advice, especially the people closest to us – our family and friends. And while we are often able to be circumspect, sifting out what is irrelevant to us, it can be difficult to resist taking financial advice from family and friends, especially when they appear to have done well for themselves.