Money Matters

August 2024

The mood is definitely lighter.

After a controversial kick-off from France’s Olympic opening ceremony, we’re eager to see the best teams and athletes rise to the occasion as we witness this global celebration of talent and dedication.

South Africans can breathe a sigh of relief. A pragmatic solution has emerged, with a centralist government forming a broad coalition government (GNU), which has been well-received by the market. Our currency is among the best-performing in the emerging market stable, and our bond market has outperformed virtually every other. SA Inc. stocks have shown good performance. Although South Africa still faces many challenges, we are feeling more optimistic.

Adding to the positive momentum, the Federal Reserve is expected to start cutting rates soon before the US elections, which should be very supportive of emerging market assets. One such emerging market is India. Lisa Praschma recently attended a presentation where the High Commissioner of India to the United Kingdom shared his views on India in the emerging world order. Read her valuable insights.

With more than half the world’s population heading to the polls this year, the uncertainty around fiscal policies, along with the ongoing geopolitical conflicts are some of the main factors keeping market optimism in check.

Just as in sports, achieving success in investments demands a sound strategy, skill, a dedicated team, and unwavering commitment. We are here to support you in your investment journey.

In this edition of our newsletter, you’ll find insights and opinions designed to keep you well-informed.

Enjoy the read.

Linda Stonier

New Tax Rules for Trust Distributions to Beneficiaries Overseas

Recent changes to the South African tax laws will significantly impact trusts and their beneficiaries, particularly those living abroad. Trusts have long been a valuable tool for estate and tax planning in South Africa. However, new amendments which took effect on 1 March 2024 alters how income distributed to non-resident beneficiaries are taxed.

To help you understand these changes and their implications, we have prepared a Q&A document that addresses the most important aspects of the new tax rules.
 

Recently, Lisa Praschma had the opportunity to attend an interview in London between Hendrick du Toit, founder and CEO of Ninety One, and His Excellency Mr. Vikram K Doraiswami, High Commissioner of India, to the United Kingdom.

She found this particularly intriguing since India constitutes 19.15% of the MSCI Emerging Market Index. Our fund managers, however, have allocated just over half of that, with 10.5% of our Emerging Market exposure invested in India. This decision is driven by valuations. Despite this, India still holds a significant position in our Emerging Market portfolios. Below are her key takeaways from the discussion.