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 The Sharenet Daily 
Tuesday, 12 February 2013 - 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 are useless?

“Retirement Annuity season” is upon us and many of you would have had calls from your financial advisor reminding you to top up your R/A contributions to the present maximum allowed amount of 15% of your annual non retirement funding income. Retirement Annuities have a bad reputation with a lot of clients and one of the things I hear most often as a Financial Advisor is that policies in general, but Retirement Annuities especially, are useless. People will tell you stories of their own, a family member or a friend who had invested in Retirement Annuities for years, but now has insufficient capital with which to retire. This is especially the case with those who are either self employed or work for smaller companies that do not have retirement funds.

Without exception, in every case that I have analysed there is only one reason why a person’s Retirement Annuities are insufficient to provide for them in retirement. They simply did not contribute enough for long enough.

Firstly, some people can’t retire on their Retirement Annuities because the contributions were hopelessly too small. I have had people complaining that they have contributed to their Retirement Annuity fund for thirty years and now there is insufficient capital for them to retire on. Whilst they may have contributed for thirty years, they were only investing say R150pm. This may have been reasonable 30 years back, but today on a salary of R50 000 it’s not even close to the 15% generally contributed to company provided funds.

Another person was contributing R5 000pm of his R20 000 salary (way in excess of the usual 15%), but he had only been doing so in the last 5 years prior to retirement. Obviously he also has insufficient retirement capital.

The third category of complaint is probably the most common. This is where people cancel their Retirement Annuity contracts quite soon after starting them. Like any contract there are always penalties for early cancellation (try getting out of a 5 year rental agreement, 6months into the rental). The important thing here is to make sure that any new Retirement Annuity taken out is within your normal budget. Also in order to minimise the impact of these high initial fees, clients should rather use R/A’s which are costed on an as and when basis.

If you are aiming for an inflation protected income after retirement of 75% of your final salary, you need to save 15% of your monthly income from age 25 until age 60. Where the underlying portfolio of the Retirement Annuity achieves a return of inflation plus 4% then you will achieve your goal.

Looking at periods in excess of 10 years, most Retirement Annuities manage to achieve the desired return of inflation plus 4%.

Retirement Annuities definitely have their place and they should be part of everybody’s retirement planning. They should however be purchased within the framework of affordability on the one hand but with reasonable expectations on the other hand.

Kind regards

Barry Hugo

021 914 4966

Tue, 12 Feb 2013
Top News
South African stocks drifted lower on Tuesday, weighed down by retailers due to growing worries about the health of a credit-led consumer spending spree after a major bank reported a spike in written-off debts.  Full story

South Africa's Kumba Iron Ore said on Tuesday its flag-ship Sishen mine was not back to full production months after an illegal strike ended, underscoring the long-term impact of last year's mine protests.  Full story
North Korea conducted its third nuclear test on Tuesday in defiance of U.N. resolutions, drawing condemnation from around the world, including from its only major ally, China, which summoned the North Korean ambassador to protest.  Full story
Syrian opposition fighters captured a military airport near the northern city of Aleppo on Tuesday in another military setback for President Bashar al-Assad's forces which have come under intensifying attack across the country.  Full story
Cardinals around the world began informal contacts to discuss who should next lead the Church through a period of major crisis and the Vatican said it planned a big send-off for Pope Benedict before he becomes the first pontiff in centuries to resign.  Full story
The yen swung wildly on Tuesday, reversing the previous day's late sell-off against the dollar and euro after an official with the Group. . .  Full story
The yen leaped against the dollar and euro on Tuesday, rebounding from recent multi-year lows, after a Group of Seven countries official said. . .  Full story
A surge in Barclays' shares led Britain's benchmark index past the psychologically important 6,300 level on Tuesday, as the blue chip bank's planned. . .  Full story
U.S. stocks were little changed on Tuesday, with the S&P 500 holding near multi-year highs ahead of President Barack Obama's State of the. . .  Full story

UK banks led European shares higher on Tuesday after Britain's third biggest lender, Barclays , unveiled swingeing cost cuts and a strategic overhaul that. . .  Full story
Gold clawed back from its lowest in over a month on Tuesday, as the dollar fell following a statement from the Group of. . .  Full story
U.S. stocks were little changed at the open on Tuesday, hovering near multi-year highs as traders awaited President Barack Obama's State of the. . .  Full story
European shares traded modestly higher on Tuesday, struggling for clear direction, as strategists weighed in on whether the recent rally still has further to. . .  Full story
SA Business
For pharmaceutical companies, Africa is changing.. . .  Full story
South Africa's DRDGold, reported a 25 percent increase in second-quarter profit on Tuesday, lifted by higher prices and production and declared. . .  Full story
South Africa's rand hit its lowest level in more than a week on Tuesday, in line with a fall in other. . .  Full story
Absa Group, the South African bank majority owned by British lender Barclays Plc, posted a worse-than- expected 9 percent drop in. . .  Full story

South Africa's AECI says its full year headline earnings per share are expected to be more than 20 percent lower due in part to strikes in the mining and transport sectors late last year.. . .  Full story
Kumba Iron Ore's flagship Sishen mine is not back to full production after it was shut for two weeks in October following an illegal strike, the chief executive of the South African mining company said on Tuesday.. . .  Full story
Company News
Due to her acceptance of an appointment with a significant shareholder of the company, Fundiswa Roji is no longer an independent. . .  Full story
Shareholders are advised that Santam expects its headline earnings per share (HEPS) for the year ended 31 December 2012 to be. . .  Full story
Shareholders are hereby advised that at the Annual General Meeting of Shareholders held on 12 February 2012, all resolutions contained in. . .  Full story
The following is the trading update that was tabled at the annual general meeting of shareholders that was held today. The. . .  Full story

Spare shareholders ("shareholders") were advised that at the annual general meeting of shareholders ("meeting") held on Tuesday, 12 February 2013, all. . .  Full story
KAP acquired the Steinhoff Industrial Assets ("the Steinhoff Industrial Assets") from Steinhoff Africa Holdings (Pty) Ltd. ("Steinhoff") and issued 1 912.8. . .  Full story
Anglo drew attention to Kumba Iron Ore Ltd's announcement of its results for the year ended 31 December 2012. Kumba Iron. . .  Full story
Shareholders are advised that SPAR experienced a challenging trading period for the 17 weeks ended 26 January 2013, with turnover at. . .  Full story
Company Results
Revenue rose by 52% to R140.1 million (R92.3 million) whilst profit from operations increased 61% to R11.7 million (R7.2 million) representing. . .  Full story
Revenue for the year ended 31 December 2012 was slightly lower at R45.4 billion (2011: R48.6 billion). Operating profit fell to. . .  Full story
Revenue increased to R5.4 billion (R4.7 billion). Trading profit improved to R519.4 million (R410.4 million) and operating profit rose to R517.4. . .  Full story
Net interest income decreased by 1% to R24.1 billion (R24.4 billion) and net insurance premium income went up by 8% to. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0040700.45-131.00-0.32%
JSE Top 4017:0036286.98-123.00-0.34%
JSE Gold17:002213.4915.000.70%
JSE Financial17:0030234.97-73.00-0.24%
JSE Industrial17:0048775.27-188.00-0.39%
JSE Indust 2517:0042175.79-168.00-0.40%
JSE Resource17:0053498.88-146.00-0.27%
DJ Futures18:5613960.0036.000.26%
DJ Ind19:5814016.9445.700.33%
SP 50019:581520.383.370.22%
FTSE 10018:356338.3861.320.98%
All Ords07:474981.501.200.02%
NZSE 5006:524218.12-2.38-0.06%
NameTimeRPMove% Move
Gold $19:571650.402.640.16%
Gold R19:5814652.65-23.36-0.16%
Gold R/kg19:58471234-1912-0.40%
Silver $19:5831.0200.11600.38%
Platinum $19:571711.5027.001.60%
Palladium $19:58768.0012.501.65%
Brent Crude19:58118.26.130.11%
Rand / Dollar19:588.8805-0.0256-0.29%
Rand / Pound19:5513.8769-0.0309-0.22%
Rand / Euro19:5511.95650.02070.17%
Rand / NZD19:587.48460.03550.48%
Rand / AUD19:559.16630.02380.26%
Yen / Dollar19:5893.2550-0.9880-1.05%
Euro / Dollar19:580.7430-0.0032-0.43%
Dollar / Euro19:581.34560.00580.43%
Pound / Dollar19:550.6384-0.0003-0.05%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 NICTUS  1301513.04.%184
2 EHSV  150015011.11.%100
3 CONTROL  120109.09.%95071
4 SIBANYE  14711158.48.%15273690
5 ASCEN A  469347.82.%5018
6 SANTOVA  10765.94.%31000
7 GOLDONE  325175.52.%96463
8 ILIAD  580305.45.%22595
9 YORK  400205.26.%600
10 TREMATON  210105.00.%1000
11 SUPRGRP  1890905.00.%715759
12 CBH  340154.62.%38744
13 EOH  43501383.28.%78878
14 ADAPTIT  19663.16.%125458
15 ITLTILE  600183.09.%42500
16 SEPHAKU  471143.06.%36947
17 TRENCOR  73102122.99.%43300
18 SABVEST-N  1749492.88.%5341
19 TRUSTCO  10932.83.%51000
20 EASTPLATS  18952.72.%187259

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Major Moves Down
SharenameSaleMove% MoveVolume
1 TRNSHEX  330-30-8.33.%15358
2 SYNERGY-A  1100-100-8.33.%4050
3 HUDACO  9800-826-7.77.%1075273
4 DIGICOR  265-15-5.36.%1363256
5 FAMBRANDS  7801-424-5.16.%40999
6 ARCMITTAL  3166-146-4.41.%906533
7 KEATON   201-9-4.29.%24640
8 TIGBRANDS  29700-1296-4.18.%565571
9 HULAMIN  460-20-4.17.%971763
10 ROCKCASTL  1190-50-4.03.%355900
11 DIPULA-A  1056-44-4.00.%305112
12 DAWN  695-27-3.74.%34070
13 BLUETEL  848-32-3.64.%373022
14 INVICTA  9102-328-3.48.%310276
15 RAINBOW-N  140-5-3.45.%243248
16 ELLIES   898-31-3.34.%998730
17 TSOGO-SUN  2345-80-3.30.%650865
18 TRUWTHS  10411-339-3.15.%898543
19 SOVFOOD  485-15-3.00.%21724
20 STEFSTOCK  877-27-2.99.%116501

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New Highs
SharenameSaleHighMove% MoveVolume
1 SIBANYE  147115251158.48.%15273690
2 TREMATON  210210105.00.%1000
3 SUPRGRP  18901915905.00.%715759
4 EOH  435043591383.28.%78878
5 ADAPTIT  19620463.16.%125458
6 MONDILTDP  11100111002171.99.%221369
7 MONDIPLCP  11110111302101.93.%1491016
8 LIB-HOLD  11800119851271.09.%177816
9 NEPI  59506501400.68.%104391
10 PREMIUM  1786189060.34.%37073
11 ARROW-A  7357370.443135
12 DRDGOLD  730755-14-1.88.%830318

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New Lows
SharenameSaleLowMove% MoveVolume
1 HUDACO  98008650-826-7.77.%1075273
2 STEFSTOCK  877815-27-2.99.%116501
3 GFIELDS  91258951-25-0.27.%3013947

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Index Summary
Index NameRPMove% Move
Top 4036,286.00-123.00-0.34%
Mid Cap55,139.00-99.00-0.18%
Small Cap42,495.00-248.00-0.58%
Resource 2053,498.00-146.00-0.27%
Industrial 2542,175.00-168.00-0.40%
Financial 1511,385.00-30.00-0.26%
Financial & Ind. 3045,947.00-163.00-0.35%
All Share40,700.00-131.00-0.32%
Oil & Gas 30,496.00104.000.34%
Mining 34,232.00-131.00-0.38%
Gold Mining2,213.0015.000.70%
Platinum Mining58.00.000.48%
GENERAL MINING9,110.00-48.00-0.53%
Oil & Gas Producers 16,397.0056.000.35%
Basic Materials 29,552.00-94.00-0.32%
Chemicals 17,832.00112.000.63%
Forestry & Paper 19,746.00290.001.49%
Industrial Metals 30,033.00-327.00-1.08%
Industrials 38,814.00-7.00-0.02%
General Industrials
Consumer Goods 44,538.00-10.00-0.02%
Automobiles & Parts 7,696.00-36.00-0.47%
Household Goods188.0000.11%
Health Care 55,482.00-606.00-1.08%
Index NameRPMove% Move
Food Producers 68,645.00-1273.00-1.82%
Personal Goods 715.005.000.78%
Consumer Services 82,827.00-982.00-1.17%
General Retailers 64,694.00-1082.00-1.65%
Travel & Leisure 5,142.00-107.00-2.04%
Support Services 2,323.00-15.00-0.66%
Telecommunications 84,459.00-506.00-0.60%
Financials 30,234.00-73.00-0.24%
Banks 53,925.00-195.00-0.36%
Non-life Insurance 47,318.00102.000.22%
Life Insurance 26,577.00-97.00-0.37%
General Financial 2,852.00-15.00-0.55%
Technology 33,786.00286.000.86%
SHARIAH TOP40 3,548.00-10-0.28%
FTSE/JSE SHARIAH ALL3,659.00-10-0.28%
COAL MINING22,585.00-71-0.32%
FTSE JSE Fledgling 5,974.000-0.01%
FTSE/JSE Alt X 846.0030.40%
RESOURCE 29,438.00-80-0.27%
DIVIDEND PLUS218.000-0.32%
FTSE/JSE RAFI 408,312.00-21-0.25%
Capped Top 4019,123.00-63-0.33%
Capped All Share20,585.00-66-0.32%
JSE TABACO 5,929.00170.29%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
13/02/2013ADAPTITDecember 2012 (Interim)
13/02/2013CITYLDGDecember 2012 (Interim)
13/02/2013FORTRESSADecember 2012 (Interim)
13/02/2013FORTRESSBDecember 2012 (Interim)
13/02/2013GROUP 5December 2012 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ASCEN A08/02/201322/02/201304/03/2013R 0.0317
ASCEN B08/02/201322/02/201304/03/2013R 0.0143
RESILIENT06/02/201322/02/201304/03/2013R 1.3493
ZURICH SA06/02/201322/02/201304/03/2013R 2.0000
SBR00305/02/201325/04/201306/05/2013R 1.3500
Ex Div**
Share NameDec-DateLDTPay-DateAmount

Upcoming AGMs**
CodeCompany NameDateStatus
TBSTiger Brands Ltd.12/02/2013Confirmed
SPPThe SPAR Group Ltd.12/02/2013Confirmed
RLPReunert Ltd.12/02/2013Confirmed
RLOReunert Ltd.12/02/2013Confirmed
RLZPReunert Ltd.12/02/2013Confirmed

Stock Exchange News Service
12/02/201317:54K LIMITED - Unbundling - GFINNG
12/02/201317:50NEDBANK LIMITED - Unbundling - GFINII
12/02/201317:50RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset - RES15
12/02/201317:46PALABORA MINING COMPANY LIMITED - Reviewed Preliminary Results and Renewal of Ca...
12/02/201317:14THE SPAR GROUP LIMITED - Dealings in securities by the Spar group limited employ...
12/02/201317:13THE SPAR GROUP LIMITED - CANCELLATION OF S328348 Dealings in securities by the S...
12/02/201317:00ARGENT INDUSTRIAL LIMITED - Small related party transaction
12/02/201316:55ELLIES HOLDINGS LIMITED - Dealing in securities by an associate of a director
12/02/201316:37THE SPAR GROUP LIMITED - Dealings in securities by the Spar Group Limited employ...
12/02/201316:32ELEMATICS LIMITED - Change in the Function of a Director and Resignation from th...
12/02/201316:02SANTAM LIMITED - Trading Statement
12/02/201315:53REUNERT LIMITED - Report On Proceedings At Class Meeting, Combined Meeting And A...
12/02/201315:42TIGER BRANDS LIMITED - Results of annual general meeting of shareholders
12/02/201315:32TIGER BRANDS LIMITED - Trading update
12/02/201315:02CONVERGENET HOLDINGS LIMITED - Waiver of mandatory offer, posting of circular an...
12/02/201315:00THE SPAR GROUP LIMITED - Results of the annual general meeting
12/02/201314:15SABVEST LIMITED - Trading Statement
12/02/201314:07GE MAIN REEF LIMITED - Fatal accident at Buffelsfontein Gold Mine
12/02/201313:00NDUSTRIAL HOLDINGS LIMITED - Trading Statement
12/02/201312:15EDCON (PTY) LIMITED - Final pricing and allocation for Edcon bond
12/02/201312:09ABSA BANK LIMITED - ACL200 - Partial Capital Redemtion
12/02/201312:00R LIMITED - Unaudited Interim Results and interim cash dividend declaration
12/02/201312:00DATATEC LIMITED - Dealing In Securities By A Director
12/02/201312:00Santova Limited - Dealing In Securities By Director Of Major Subsidiary
12/02/201311:40REAL PEOPLE INV HOLD (PTY) LTD - New Instrument Listing - RP018
12/02/201311:00INVICTA HOLDINGS LIMITED - Director's dealing in securities
12/02/201311:00TREMATON CAPITAL INVESTMENTS LTD - Director's dealing announcement
12/02/201310:33IVUZI INVESTMENTS LIMITED - Interest Rate Reset - IVF004
12/02/201310:03SECUREDATA HOLDINGS LIMITED - Notification in terms of Section 122(3) of the Com...
12/02/201309:09THE SPAR GROUP LIMITED - Trading Statement
12/02/201309:00ANGLO AMERICAN PLC - AngloAmerican notification: Kumba Iron Ore Limited year end...
12/02/201309:00Mondi Limited - Mondi Group: Trading Statement
12/02/201309:00ESORFRANKI LIMITED - Further cautionary announcement relating to the introductio...
12/02/201308:45STANDARD BANK OF SOUTH AFRICA LD - SCIB: Adjustments to the terms and conditions...
12/02/201308:30CURRO HOLDINGS LIMITED - Cautionary announcement
12/02/201308:30A E C I LIMITED - Further Trading Statement
12/02/201308:30STANDARD BANK OF SOUTH AFRICA LD - SCIB: Adjustments to the terms and conditions...
12/02/201308:15M & S HOLDINGS LIMITED - Revised Trading Statement
12/02/201308:00LD LIMITED - Report to shareholders for the second quarter and six months ended ...
12/02/201308:00HUDACO INDUSTRIES LIMITED - Business Update
12/02/201308:00KUMBA IRON ORE LIMITED - Audited Condensed Consolidated Results for the Year End...
12/02/201307:33Absa Group Limited - Updated Pro-forma Financial Information As At 31 December 2...
12/02/201307:32ABSA BANK LIMITED - ABSP/ ABMN - Audited financial results - financial year ende...
12/02/201307:31Absa Bank Limited - Absa Bank: Profit And Dividend Announcement; Audited Conden...
12/02/201307:30Absa Group Limited - Absa Group: Profit And Dividend Announcement; Audited Conde...
12/02/201307:05WILSON BAYLY HOLMES-OVCON LIMITED - Trading Statement
12/02/201307:05SUPER GROUP LIMITED - Unaudited interim results for the six months ended 31 Dece...

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