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 The Sharenet Daily 
Tuesday, 24 April 2012 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Retirement Annuities as an Estate Planning Tool

Whilst most people see Retirement Annuities (RA’s) as a vehicle to fund provision of capital for their old age, this isn’t always the case as I was recently shown an example by one of my colleagues whereby changes in the rules relating to RA’s have given certain individuals an opportunity to plan their estates a lot more effectively.

Previously, members of an RA were compelled to retire from that fund before the age of 70. This rule has now fallen away and it is now possible to join an RA after the age of 70 with no mandatory retirement age; you may ask yourself “Why on earth would anyone in retirement want to purchase an RA?” But the following example will illustrate its effectiveness as a retirement planning tool for certain individuals:

“Mr A is 80 years old and has more than enough income and capital to fund his lifestyle. He has R 3 000 000 invested in a Money Market account at a bank which he decides to invest into an RA. For ease of calculation, we will assume that none of the R 3 000 000 is allowed as a deduction in the tax year of contribution. We will also assume that the underlying portfolio in the RA is a Money Market Fund earning the same rate as what he would have earned outside the RA. Mr A dies and the growth of the RA at this point is R 300 000 (which is the same as if he had left it in the Money Market account).

“If he hadn’t used the RA, Mr A would have had to pay R 120 000 in income tax (40% on the R 300 000 income from the Money Market account) leaving a net payout of R 3 180 000. The Money Market Fund would also be an asset in Mr A’s Estate, and if we assume that his estate duty rebate has been used on other assets, estate duty of R 636 000 would be payable. Executors fees of R 126 882 would also be payable on this asset leaving a net (after income tax, estate duty, and executors fees) R 2 417 118.

“By investing into the RA the interest earned is not taxed, leaving a total value of R 3 300 000 (all growth in an RA is currently tax free). The RA is not an asset or a deemed asset in the estate and is dealt with as a taxable lump sum death benefit received from a Retirement Fund. All contributions made to a Retirement Fund, not previously allowed as a deduction, are allowed as a deduction when calculating the taxable portion of the death benefit. If we assume that Mr A has already used his R 315 000 tax free retirement benefit, then total tax of R 54 000 will need to be paid, leaving a net benefit after tax of R 3 246 000.”

One must bear in mind that by locking up capital in an RA, accessibility will be greatly reduced (only 1/3rd is available as a lump sum) so this is a tool which should only be used by individuals with a large amount of free capital which is not going to be used or required during their lifetime. Naturally this type of strategy doesn’t make sense for most investors, but for those that it does, the potential benefits should not be ignored.

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Kind regards,

Barry Hugo
021 9144 966

Tue, 24 Apr 2012
Top News
Revenue 9 3,4 2 517 754 2 434 233 . Gross profit (4,9) 515 761 542 336 .  Full story

Royal Dutch Shell has agreed to buy Cove Energy for 1.12 billion pounds, lifting its offer to access East Africa's huge gas reserves, but failing to quell hopes of a bid battle for the Mozambique-focused explorer.  Full story
South Sudan accused Sudan on Tuesday of mounting bombing raids on the newly independent country's oil-producing border region and President Salva Kiir said the latest hostilities amounted to a declaration of a war by his northern neighbour.  Full story
North Korea has almost completed preparations for a third nuclear test, a senior source with close ties to Pyongyang and Beijing told Reuters, which will draw further international condemnation following a failed rocket launch if it goes ahead.  Full story
Three Syrian military officers were killed in Damascus on Tuesday, state media and opposition groups said, and at least three people were wounded in a car bomb blast in the capital in further blows to a ragged U.N.-monitored ceasefire.  Full story
U.S. stocks rose on Tuesday after strong earnings from big manufacturers and AT&T, but the Nasdaq declined on weakness from large-cap tech companies.. . .  Full story
Gold prices rose on T uesday, following rallies in equities and industrial metals, but selling pressure ahead of a U.S. option expiration and. . .  Full story
Britain's blue-chip shares rose on Tuesday, rebounding from a Europe-wide rout the previous day and helped by better-than-expected U.S. housing data which boosted global. . .  Full story
European shares rebounded on Tuesday when bullish company earnings updates lifted some of the politics-driven gloom over equity markets.. . .  Full story

Global equities and the euro rose on Tuesday on strong corporate earnings, while solid demand at European government debt sales eased concerns about. . .  Full story
U.S. stocks rose slightly after the open on Tuesday following steep losses in the previous session, with gains capped by resurfacing worries about. . .  Full story
Hong Kong shares ended slightly higher in choppy Tuesday trade, bouncing off an earlier decline on strength in most Chinese banks after Bank. . .  Full story
Australian shares rose 0.2 percent on Tuesday as inflation data was more benign than expected, giving the central bank the green light for. . .  Full story
SA Business
South Africa's 2012/13 sugar output is estimated at 2.188 million tonnes, up from 1.82 million tonnes in the previous season, the South African Sugar Association (SASA) said.. . .  Full story
Miner Anglo American has sold the South African arm of steelmaker Scaw Metals for $440 million to an investment consortium in a long-awaited deal, bringing proceeds from its drive to divest. . .  Full story
South Africa's rand opened softer against the dollar on Tuesday and could remain under pressure because of fears of political uncertainty and sovereign debt risk in Europe.. . .  Full story

The rand touched its highest in almost three weeks against the dollar on Tuesday and was among the strongest-performing emerging currencies. . .  Full story
South African stocks edged up 0.5 percent on Tuesday, as shares of luxury good firm Richemont rose on strong watch Swiss. . .  Full story
The rise of the middle-class Chinese working mother helps explain why Nestle paid nearly $12 billion for Pfizer's baby food business and could. . .  Full story
South Africa's Industrial Development Corporation (IDC), a state-owned financing institution, will raise 5 billion rand to invest in domestic green economy. . .  Full story

Canadian miner First Uranium Corp said it received an unsolicited offer for its Ezulwini mine in South Africa from Waterpan Mining Corporation and Transalloys Ltd.. . .  Full story
Virtually every day there is news on how Iran's oil exports to Asia are being squeezed by Western sanctions, but the question that still remains unresolved is just how much pain is Tehran feeling.. . .  Full story
Company News
Shareholders are referred to the announcement dated 23 April 2012 in which shareholders were advised of the posting of the circular. . .  Full story
Shareholders were advised that at the annual general meeting ("AGM") of Cenrand held at 11:00 on Tuesday, 24 April 2012 (UK. . .  Full story
Highlights: *Quarterly production up 70% to 4 777 ounces ("oz"). *Surface mining extended from June 2012 to 31 December 2012. *New surface. . .  Full story
First Uranium announced that on 17 April 2012, Fiuranium received an unsolicited expression of interest from Waterpan Mining Corporation ("WMC") and. . .  Full story

Anglo American plc ("Anglo American") announced the final stage of the USD1.4 billion Scaw Metals Group ("Scaw") divestment with the sale of Scaw South Africa (Pty) Ltd. ("Scaw South Africa"), a. . .  Full story
Fiuranium advised that the corporation has amended the record date and date on which the upcoming special meeting of shareholders for First Uranium Corporation will be held. The amended dates are. . .  Full story
Shareholders of JD Group Ltd ("JD Group") and Steinhoff were referred to the joint announcement released by JD Group and Steinhoff on SENS on Friday, 30 March 2012 relating to the. . .  Full story
Company Results
Contract revenue declined to R272.9 million (R386.6 million). Gross profit decreased to R29.1 million (R43.8 million) and operating profit more than halved to R5.9 million (R18.7 million). Net attributable profit slumped. . .  Full story
Revenue increased to R25.9 million (R24 million). Operating profit rose to R18.3 million (R17.7 million). Profit after tax improved to R13.6 million (R12.6 million). In addition, headline earning per share grew. . .  Full story
Net revenue for the interim period jumped to R217.6 million (2011: R179.4 million). Operating profit increased to R21.7 million (2011: R12.7 million), while profit attributable to equity holders of the parent. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0033820.87117.660.35%
JSE Top 4017:0029823.88137.760.46%
JSE Gold17:002176.07-2.11-0.10%
JSE Financial17:0024709.94-11.13-0.05%
JSE Industrial17:0038383.14255.260.67%
JSE Indust 2517:0032307.26273.390.85%
JSE Resource17:0048893.6276.330.16%
DJ Futures19:5612960.0077.000.60%
DJ Ind19:4513001.7974.620.58%
SP 50020:001370.123.180.23%
FTSE 10017:355709.4943.920.78%
All Ords08:424433.903.600.08%
NZSE 5008:323519.866.410.18%
NameTimeRPMove% Move
Gold/R kg20:0041232118010.44%
Brent Crude19:56118.00-.20-0.17%
Rand / Dollar19:597.8115-0.0286-0.36%
Rand / Pound19:5512.5640-0.0559-0.44%
Rand / Euro19:5510.3026-0.0161-0.16%
Rand / NZD19:586.3359-0.0418-0.66%
Rand / AUD19:558.0338-0.0595-0.74%
Yen / Dollar19:5981.17000.04700.06%
Euro / Dollar19:550.7575-0.0023-0.30%
Dollar / Euro19:591.31930.00370.28%
Pound / Dollar19:550.6195-0.0004-0.06%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 VILLAGE  1572216.30.%3784833
2 ROCKWELL  4204512.00.%1032
3 ELLIES   3843610.34.%921876
4 VERIMARK  12597.76.%37550
5 SABVEST-N  1050707.14.%300
6 NETCARE  15051007.12.%5542790
7 INDEQTY  350206.06.%13000
8 KAP  315155.00.%205479
9 OANDO  11054.76.%1917
10 HOWDEN  2000904.71.%141959
11 METROFILE  335154.69.%261080
12 JASCO  11954.39.%46800
13 AMA  365154.29.%42738
14 O-LINE  12854.07.%30100
15 ONELOGIX  18573.93.%11000
16 JUBILEE  16453.14.%10000
17 ROLFES  360102.86.%13900
18 BRAIT  2399662.83.%621266
19 KUMBAIO  5414914232.70.%352557
20 MRPRICE  102652652.65.%602500

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Major Moves Down
SharenameSaleMove% MoveVolume
1 CALGRO  350-60-14.63.%23309
2 ANOORAQ  275-45-14.06.%137036
3 HULAMIN  716-44-5.79.%139848
4 BRIMST-N  830-45-5.14.%8931341
5 WESIZWE  111-6-5.13.%5042975
6 MMG  418-22-5.00.%8388
7 PETMIN  305-15-4.69.%121113
8 HOLDSPORT  4205-195-4.43.%40946
9 INVICTA  6670-280-4.03.%8654
10 PUTPROP  605-25-3.97.%24200
11 SENTULA  220-9-3.93.%149439
12 S-OCEAN  205-7-3.30.%128002
13 RMIH  1751-59-3.26.%2789303
14 NORTHAM  3166-89-2.73.%514330
15 RAUBEX  1340-35-2.55.%22336
16 SAPPI  2780-72-2.52.%459242
17 CML  2820-68-2.35.%399788
18 REINET  1405-33-2.29.%2321408
19 BATS  39699-881-2.17.%630097
20 EQSTRA  700-15-2.10.%943672

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New Highs
SharenameSaleHighMove% MoveVolume
1 ELLIES   3843843610.34.%921876
2 METROFILE  335340154.69.%261080
3 BRAIT  23992404662.83.%621266
4 NASPERSN  466504670011502.53.%1025878
5 PSG  585059981302.27.%214356
6 VIVIDEND  530530112.12.%598244
7 ASPEN  12630129001050.84.%1069463
8 REDEFINE  823829-2-0.24.%3337674
9 LIFEHC  27252801-30-1.09.%6049636

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New Lows
SharenameSaleLowMove% MoveVolume
1 ANOORAQ  275275-45-14.06.%137036
2 WESIZWE  111110-6-5.13.%5042975
3 HARMONY  73227260-8-0.11.%1011228
4 ANGLOPLAT  49159475044450.91.%83680

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Index Summary
Index NameRPMove% Move
Top 4029,823.88137.760.46%
Mid Cap48,707.79-49.41-0.10%
Small Cap35,920.57-245.12-0.68%
Resource 2048,893.6276.330.16%
Industrial 2532,307.26273.390.85%
Financial 159,283.06-1.63-0.02%
Financial & Ind. 3035,568.99225.140.64%
All Share33,820.87117.660.35%
Oil & Gas 27,485.00-18.92-0.07%
Mining 31,412.9051.990.17%
Gold Mining2,176.07-2.11-0.10%
Platinum Mining56.18.500.90%
GENERAL MINING8,127.715.870.07%
Oil & Gas Producers 14,778.18-10.17-0.07%
Basic Materials 26,954.5765.070.24%
Chemicals 15,196.58-5.19-0.03%
Forestry & Paper 14,048.12-18.03-0.13%
Industrial Metals 30,570.00625.972.09%
Industrials 32,842.6526.420.08%
General Industrials 89,002.60594.910.67%
Consumer Goods 33,144.01207.730.63%
Automobiles & Parts 6,
Household Goods183.3720.90%
Health Care 42,722.8272.470.17%
Beverages 111.71.720.65%
Index NameRPMove% Move
Food Producers 59,993.93-80.18-0.13%
Personal Goods 471.828.291.79%
Consumer Services 67,330.95901.051.36%
General Retailers 54,818.68437.300.80%
Travel & Leisure 3,817.79-13.84-0.36%
Media 102.232.462.47%
Support Services 2,397.17-.56-0.02%
Telecommunications 67,090.47211.670.32%
Financials 24,709.94-11.13-0.05%
Banks 47,081.69103.380.22%
Non-life Insurance 43,283.11-428.78-0.98%
Life Insurance 19,257.08-38.59-0.20%
General Financial 2,338.4514.750.63%
Technology 28,361.1813.830.05%
SHARIAH TOP40 3,011.46140.47%
FTSE/JSE SHARIAH ALL3,133.12120.39%
COAL MINING27,279.822711.00%
FTSE JSE Fledgling 5,422.90140.25%
FTSE/JSE Alt X 1,252.30-18-1.46%
CAPPED PROPERTY 336.05-0.06%
RESOURCE 26,940.59350.13%
DIVIDEND PLUS196.6100.13%
FTSE/JSE RAFI 407,012.89200.28%
Capped Top 4015,739.09760.48%
Capped All Share17,108.14600.35%
JSE TABACO 5,072.83-113-2.17%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
25 Apr 2012ALTECHFebruary 2012 (Final)
25 Apr 2012CMHFebruary 2012 (Final)
25 Apr 2012CMH PREFFebruary 2012 (Final)
25 Apr 2012DELRANDMarch 2012 (Q)
25 Apr 2012MASNovember 2011 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PREMIUM12-04-1912-05-1112-05-21R 0.6000
OCTODEC12-04-1912-05-1112-05-21R 0.7120
PHUMELELA12-04-1912-05-1812-05-28R 0.2500
PIKWIK12-04-1812-06-0112-06-11R 0.5257
PICKNPAY12-04-1812-06-0112-06-11R 1.0835
Ex Div**
Share NameDec-DateLDTPay-DateAmount
LIB-HOLD12-04-0212-04-1912-04-30R 2.2100
TRUWTHS12-04-0312-04-1912-04-30R 1.6900
SANLAM12-03-0812-04-1912-05-09R 1.3000
SHOPRIT12-04-0212-04-1912-04-30R 1.0900
A-V-I12-04-0212-04-1912-04-30R 0.8300

Upcoming AGMs**
CodeCompany NameDateStatus
ABSPAbsa Bank Ltd.24/04/2012Confirmed
JSEJSE Ltd.25/04/2012Confirmed
ZSAZurich Insurance Company South Africa Lt...25/04/2012Confirmed
IDEPIdeco Group Ltd.26/04/2012Confirmed
IDEIdeco Group Ltd.26/04/2012Confirmed

Stock Exchange News Service
24/04/201217:43 African Eagle Resources Plc - Result of General Meeting
24/04/201217:10MND/MNP - Mondi Limited/Mondi plc - Mondi Group - 2011 Final Dividend
24/04/201216:49APK/APKP - Astrapak Limited - Reviewed results for the financial year ended 29
24/04/201216:27 Murray & Roberts Holdings Limited - Announcement relating to a
24/04/201216:20NEDB - Nedbank Limited - SENS announcement Issue of Warrants
24/04/201216:19IPLP - Imperial Holdings Limited - Dealing in securities by directors of
24/04/201216:03 Top Fix - Correction - Company Website
24/04/201215:54 Conduit Capital Limited - Condensed consolidated unaudited results for the
24/04/201215:03 Gold Fields Limited - Q1 2011 Results on 17 May 2012
24/04/201215:00 1time holdings Limited - Further Trading Statement
24/04/201214:13EQS05 - EQSTRA Corporation (Proprietary) Limited - New Financial Instrument
24/04/201214:11RACP - RECM and CALIBRE LIMITED - Reviewed preliminary financial results for the
24/04/201214:00 Lonrho Plc - Additional Listing
24/04/201213:48 Central Rand Gold Limited - Results of Annual General Meeting
24/04/201212:51GRB87 - Grayston Conduit 1 (Proprietary) Limited - New Financial Instrument
24/04/201212:42BITOY - Toyota Financial Services (South Africa) (Proprietary) Limited - New
24/04/201212:37 Kumba Iron Ore Limited - Sale of shares by a director of a major
24/04/201212:32SSN003 - The Standard Bank of South Africa Limited - New Financial Instrument
24/04/201212:00 BRAIT SE - Trading Statement: Year ended 31 March 2012
24/04/201211:52 British American Tobacco p.l.c - Transaction in own shares
24/04/201210:58 Litha Healthcare Group Limited - Update on Strategic Partnership
24/04/201210:31 Huge Group Limited - Further Trading Statement
24/04/201210:05NEDB - Nedbank Limited - Issue of Warrants
24/04/201210:00 Excellerate Holdings Limited - Notice of disposals and acquisitions of
24/04/201209:42 Gold Fields Limited - Gold Fields announces Form 20-F Filing
24/04/201209:00 Central Rand Gold Limited - Interim Management Statement
24/04/201208:58 Convergenet Holdings Limited - Intended dealings in securities by
24/04/201208:30 First Uranium Corporation - First Uranium receives an unsolicited non-
24/04/201208:17 Uranium One Inc - Uranium One Proposes Amendments to Stock Option Plan
24/04/201208:00 Anglo American plc - Announces sale of Scaw South Africa to complete its
24/04/201208:00MWNT - Mine Waste Solutions (Proprietary) Limited - Amended notice of meeting
24/04/201208:00 First Uranium Corporation - Amended notice of meeting and record date
24/04/201207:10 British American Tobacco p.l.c.- Transaction in own shares
24/04/201207:05 Gold One International Limited - Appendix 3B new issue announcement,
24/04/201207:05SHF/JDG - Steinhoff/JD Group - Results of the Partial Offer by Steinhoff to

Click here for more SENS news