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 The Sharenet Daily 
Wednesday, 11 December 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)

Seed Weekly - Structuring Your Income at Retirement

This week we take another look at how to optimise your investments given the current legal and regulatory environment.

Retiring is one of life’s major events. In a way it is the culmination of your years spent at the grindstone and finally being able to fully enjoy the fruits of your labour. The road to retirement is filled with planning saving and compromises and, if not structured correctly, could lead to problems.

The 1st decision the near retiree needs to make is whether to invest your compulsory assets in a living annuity (ILLA) or to buy a guaranteed life annuity from a life insurance company. The difference is one I’m most readers would be familiar with; the value of the ILLA at any time is a factor of the capital invested, the percentage drawn out as an income, and the performance of the underlying investment, while the guaranteed annuity is a fixed payment for the rest of your life.

You are able to withdraw 1/3rd of your pension fund and retirement annuities in cash (provident funds can be taken fully in cash) at retirement but, because of taxes on the lump sum option, it requires some thought as to what amount should be taken.

Another source of capital should be your discretionary assets, the assets that fall outside your pension and provident funds and retirement annuities. The assets that fall under this category will, for the purposes of simplicity, be limited to local and offshore unit trusts and share portfolios. Owning a large pool of these assets can be beneficial to you thanks to favourable tax treatment of these assets on disposal. When drawdowns are made out of this asset pool you are taxed on your capital gains and dividends received. The taxes on discretionary drawdowns are in most instances less than on your compulsory assets. The below charts show how long R 5m would last if you needed R 20 000 per month as an income from either discretionary or compulsory assets:

Drawdowns from compulsory:

Drawdown from discretionary:

The difference is because the compulsory assets require you to draw a higher gross amount to still get the same amount out net of taxes. The liabilities line in the graphs refers to the amount of assets needed in a tax free world at any time to fund your drawdowns of R 20 000 per month.

The logical conclusion would be to keep your compulsory asset drawdown to a minimum and take the balance from your discretionary assets, but keep in mind that you can draw R 104 611 (excluding rebates) annually from your compulsory assets without incurring tax and depending on your age receive annual rebates. You also have a R 30 000 per year exclusion from the gains on your discretionary assets. It is therefore imperative to structure your assets before retirement in such a way as to take maximum advantage of both these annual tax benefits when you retire.

Conventional advice would usually be to draw the minimum of 2.5% per annum from your compulsory assets and the balance from your discretionary assets. This is in no way a one size fits all solution and should be tailored to fit your unique financial circumstances. At Seed we believe this decision materially impacts your financial situation and we make every effort to ensure we ‘stretch’ your assets as far as possible into the future.

Kind regards,

Stefan Keeve

021 914 4966

Wed, 11 Dec 2013
Top News
Gold prices edged lower on Wednesday after a three-day rally driven by investors short-covering, as a tentative U.S. budget deal supported expectations for an earlier reduction in U.S. monetary stimulus.  Full story

South Africa's rand was on a weaker footing on Wednesday as slightly better-than-expected retail sales data failed to make an impression.  Full story
Ukrainian protest leaders on Wednesday said they would not hold talks with President Viktor Yanukovich until their demands, including that he resign, were met.  Full story
Italy's Prime Minister Enrico Letta won a confidence vote in parliament's lower chamber on Wednesday after urging lawmakers to back his government or risk chaos  Full story
Libya's government expects eastern tribes to reopen three oil ports this weekend as pledged but refuses to deal with an autonomy movement demanding a share of oil exports, Prime Minister Ali Zeidan said on Wednesday.  Full story
Newly-privatised Royal Mail Group will join Britain's top share index following a strong share price performance since its stock market debut, FTSE confirmed. . .  Full story
European shares eased in late trade on Wednesday, as increased certainty over U.S. government spending following a budget deal there was overshadowed by growing. . .  Full story
Britain's top share index ended slightly lower on Wednesday with a provisional budget deal in Washington raising concerns of a reduction in U.S.. . .  Full story
Stock markets worldwide slipped on Wednesday after the U.S. Congress announced a provisional budget deal, which heightened expectations of a stimulus reduction by the. . .  Full story

Wall Street opened flat on Wednesday as investors assessed a provisional budget deal reached in Washington and its potential impact on an expected wind-down. . .  Full story
Britain's benchmark equity index failed to make much headway on Wednesday, as weaker bank and mining stocks pegged back the stock market.. . .  Full story
European shares edged lower at the open on Wednesday, led by Royal Bank of Scotland, which slipped after a high-profile executive departure, as uncertainty. . .  Full story
Offshore Chinese stocks in Hong Kong posted their heaviest loss in nearly four months on Wednesday, led by coal producers after the country's. . .  Full story
SA Business
South African stocks fell for a second straight session on Wednesday, with trading volumes starting to thin out ahead of the Christmas holidays.. . .  Full story
South Africa's headline consumer inflation slowed to 5.3 percent year-on-year in November from 5.5 percent in October, Statistics South Africa said on Wednesday.. . .  Full story
South Africa-focused bullion producer Sibanye Gold has made a cash offer for junior rival Wits Gold, which like other smaller operations has struggled in the face of low prices, high costs. . .  Full story

Standard Chartered Bank has appointed new managers for two regions of its fast-growing African business, which is due to expand significantly in the next two years, it said on Wednesday.. . .  Full story
South Africa's retail sales grew at 1.3 percent year-on-year in October, just slightly above market consensus, from a revised 0.1 percent in September, Statistics South Africa said on Wednesday.. . .  Full story
United Nations peacekeeping troops in Democratic Republic of Congo have launched operations against a Rwandan Hutu rebel militia operating along Congo's border with Rwanda, the U.N. commander said on Tuesday.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0044436.86-204.12-0.46%
JSE Top 4017:0039736.78-197.96-0.50%
JSE Gold17:001099.82-14.07-1.26%
JSE Financial17:0032270.49-146.93-0.45%
JSE Industrial17:0059342.12-71.46-0.12%
JSE Indust 2517:0052104.90-46.09-0.09%
JSE Resource17:0049034.26-595.39-1.20%
DJ Futures19:4215855.00-118.00-0.74%
DJ Ind19:5815888.10-85.03-0.53%
SP 50019:581788.91-13.71-0.76%
FTSE 10018:356507.72-15.59-0.24%
All Ords07:425109.50-36.70-0.71%
NZSE 5006:484704.30-2.21-0.05%
NameTimeRPMove% Move
Gold $19:591257.40-3.99-0.32%
Gold R19:5913049.3413049.340.00%
Gold R/kg19:58419764-1763-0.42%
Silver $20:0020.3300-.0420-0.21%
Platinum $20:001381.75-3.75-0.27%
Palladium $20:00734.50-1.50-0.20%
Brent Crude19:58109.10-.29-0.27%
Rand / Dollar19:5910.37820.03690.36%
Rand / Pound19:5516.9835-0.0043-0.03%
Rand / Euro19:5514.32260.08430.59%
Rand / NZD19:598.5467-0.0417-0.49%
Rand / AUD19:559.4138-0.0500-0.53%
Yen / Dollar19:59102.4070-0.4660-0.45%
Euro / Dollar20:000.7243-0.0023-0.32%
Dollar / Euro19:591.38020.00420.30%
Pound / Dollar19:550.60970.00190.31%

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 WITSGOLD  107025030.49.%192050
2 ALERT  1503025.00.%7600
3 VUNANI  1802415.38.%95995
4 CONTROL  1371714.17.%3221117
5 DIAMONDCP  1201110.09.%12713
6 INTEWASTE  11576.48.%108695
7 SYNERGY-A  980525.60.%29500
8 ATLATSA  498265.51.%593
9 CURRO  27001244.81.%102440
10 REBOSIS  1200504.35.%547267
11 ILIAD  550203.77.%503684
12 BRIMSTON  1300453.59.%6120
13 ADVTECH  659192.97.%69324
14 FAIRVEST  13942.96.%10000
15 NETCARE  2449642.68.%2959053
16 ELLIES   612152.51.%434842
17 NET1UEPS  82002002.50.%146271
18 PAN-AF  22152.31.%203640
19 DRDGOLD  36482.25.%1241938
20 RCL  1779392.24.%51287

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Major Moves Down
SharenameSaleMove% MoveVolume
1 WCC  180-15-7.69.%627
2 VALUE  511-40-7.26.%2319
3 ROCKWELL  326-24-6.86.%600
4 TREMATON  360-25-6.49.%4700
5 CADIZ  109-6-5.22.%25448
6 SEARDELN  280-15-5.08.%2605
7 PUTPROP  668-32-4.57.%500
8 NUWORLD  2100-100-4.55.%5325
9 BRIMST-N  1320-60-4.35.%81000
10 ASTRAPAK  700-30-4.11.%37886
11 CONDUIT  140-6-4.11.%360174
12 HOSP-A  1540-59-3.69.%122400
13 ONELOGIX  328-12-3.53.%194667
14 FONEWORX  232-8-3.33.%43850
15 COMAIR  310-10-3.13.%32620
16 WESCOAL  221-7-3.07.%112200
17 OCTODEC  1885-59-3.03.%71095
18 TASTE  345-10-2.82.%59916
19 MONDIPLCP  16050-456-2.76.%1230160
20 AUSTRO  107-3-2.73.%26000

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New Highs
SharenameSaleHighMove% MoveVolume
1 CURRO  270029551244.81.%102440
2 NASPERSN  10380010600018001.76.%1641060
3 HOWDEN  42514700511.21.%245510
4 STEINHOFF  42804350501.18.%9123020
5 PIKWIK  22302243-5-0.22.%273207
6 PALLINGHT  285295-5-1.72.%239354

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New Lows
SharenameSaleLowMove% MoveVolume
1 SPANJRD  409390-11-2.62.%24139
2 MASSMART  1345013336-300-2.18.%367421
3 B-AFRICA  1301512776-45-0.34.%2200661
4 BOWCALF  750750-1-0.13.%776871
5 INVPROP  1385136070.51.%575551

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Index Summary
Index NameRPMove% Move
Top 4039,736.78-197.96-0.50%
Mid Cap58,579.09-173.71-0.30%
Small Cap48,911.40-32.55-0.07%
Resource 2049,034.26-595.39-1.20%
Industrial 2552,104.90-46.09-0.09%
Financial 1512,195.91-46.53-0.38%
Financial & Ind. 3054,900.22-111.35-0.20%
All Share44,436.86-204.12-0.46%
Oil & Gas 37,447.56-203.56-0.54%
Mining 29,359.98-394.43-1.33%
Gold Mining1,099.82-14.07-1.26%
Platinum Mining46.94-.59-1.24%
GENERAL MINING8,556.96-115.70-1.33%
Oil & Gas Producers 20,134.86-109.45-0.54%
Basic Materials 26,055.98-355.25-1.35%
Chemicals 22,997.74-57.24-0.25%
Forestry & Paper 26,742.27-634.24-2.32%
Industrial Metals 22,048.89-25.85-0.12%
Industrials 43,333.47-25.28-0.06%
General Industrials 131.58-.29-0.22%
Consumer Goods 54,923.06-218.73-0.40%
Automobiles & Parts 8,389.82-79.25-0.94%
Household Goods290.9231.18%
Health Care 74,858.67439.400.59%
Beverages 175.61-2.08-1.17%
Index NameRPMove% Move
Food Producers 66,900.22-411.32-0.61%
Personal Goods 1,017.74.900.09%
Consumer Services 10,658.29103.870.98%
General Retailers 61,580.31401.630.66%
Travel & Leisure 5,486.21-2.89-0.05%
Media 226.693.911.76%
Support Services 2,512.632.710.11%
Telecommunications 9,549.87-90.16-0.94%
Financials 32,270.49-146.93-0.45%
Banks 55,187.73-138.08-0.25%
Non-life Insurance 47,971.54245.010.51%
Life Insurance 31,017.05-230.07-0.74%
General Financial 3,167.633.760.12%
Technology 44,196.61-396.21-0.89%
SHARIAH TOP40 3,702.35-38-1.02%
FTSE/JSE SHARIAH ALL3,829.72-32-0.82%
COAL MINING18,207.13-334-1.80%
FTSE JSE Fledgling 6,085.65-14-0.24%
FTSE/JSE Alt X 1,123.76110.99%
CAPPED PROPERTY 414.42-0.55%
RESOURCE 26,756.87-320-1.18%
DIVIDEND PLUS212.77-1-0.36%
FTSE/JSE RAFI 408,719.71-53-0.61%
Capped Top 4021,009.11-99-0.47%
Capped All Share22,501.53-101-0.45%
JSE TABACO 6,874.82-4-0.05%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
13/12/2013EHSVSeptember 2013 (Q)
13/12/2013FIUUNITSeptember 2013 (Q)
20/12/2013CULINAN5.5September 2013 (Final)
20/12/2013CULINANPRSeptember 2013 (Final)
20/12/2013CULLINANSeptember 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
INDEQTY09/12/1324/12/1306/01/14ZAR 0.1750
TELEMASTR06/12/1310/01/1420/01/14ZAR 0.0050
NAMPAK 6.506/12/1317/01/1427/01/14ZAR 0.0650
NAMPAK 6%P06/12/1317/01/1427/01/14ZAR 0.0600
ARGENT04/12/1320/03/1431/03/14ZAR 0.0700
Ex Div**
Share NameDec-DateLDTPay-DateAmount
JDG CONV29/11/1306/12/1320/12/13ZAR 375.0000
MRPRICE12/11/1306/12/1317/12/13ZAR 1.6800
AME22/11/1306/12/1317/12/13ZAR 1.0000
REX TRUE -N-18/11/1306/12/1317/12/13ZAR 0.6100
REX TRUE18/11/1306/12/1317/12/13ZAR 0.6100

Upcoming AGMs**
CodeCompany NameDateStatus
MNYMoneyWeb Holdings Ltd.11/12/2013Confirmed
GPLGrand Parade Investments Ltd.11/12/2013Confirmed
GPLPGrand Parade Investments Ltd.11/12/2013Confirmed
MSTMustek Ltd.13/12/2013Confirmed
PPEPurple Capital Ltd.13/12/2013Confirmed

Stock Exchange News Service
11/12/201317:50JSE LIMITED - GEN General Consultation process on proposed Listings Requiremen...
11/12/201317:36ISA HOLDINGS LIMITED - Dealings in securities by a director
11/12/201317:31ANGLO AMERICAN PLC - Publication of Final Terms
11/12/201317:30THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited New Fin...
11/12/201317:20POYNTING HOLDINGS LIMITED - Dealings in securities by a director
11/12/201317:19NAMPAK LIMITED - Settlement and allotment of shares to a director, the company s...
11/12/201317:10JSE LIMITED - Index Change Advice - 20131223 December 2013 Quarterly Index Revie...
11/12/201317:08MIX TELEMATICS LIMITED - Dealings in securities by a director of a major subsidi...
11/12/201317:00MACQUARIE SEC SOUTH AFRICA LTD - New Instrument Listing - MAQ0A1
11/12/201317:00SACOIL HOLDINGS LIMITED - Announcement regarding the Convertible Bridge Loan
11/12/201316:38INDWA INVESTMENTS LIMITED - Listing of Tap Issue_INA410
11/12/201316:35FIRSTRAND BANK LIMITED - Interest Rate Reset- FRB11 & FRC158
11/12/201316:30NETCARE LIMITED - Dealings in securities by a director
11/12/201316:30FIRSTRAND BANK LIMITED - Full Capital Redemption-FRS83
11/12/201316:10ORION REAL ESTATE LIMITED - Directors Dealing
11/12/201316:00DATATEC LIMITED - Further issues of shares
11/12/201316:00GROWTHPOINT PROPERTIES LIMITED - Directors dealings
11/12/201315:50VUKILE PROPERTY FUND LIMITED - Change to the board of directors
11/12/201315:45MAZOR GROUP LIMITED - Dealings in securities by a director
11/12/201315:15QUANTUM PROPERTY GROUP LIMITED - Resignation of Non-Executive Director
11/12/201315:00SANTAM LIMITED - Emerging markets participation and technical services agrement ...
11/12/201315:00MAURITIUS COMMERCIAL BANK LIMITED - New Instrument Listing - MCB6M
11/12/201314:55MAURITIUS COMMERCIAL BANK LIMITED - Full Capital Redemption - MCB4M
11/12/201314:47HUGE GROUP LIMITED - Associates of directors dealing in Securities
11/12/201314:46STRATCORP LIMITED - Further announcement and withdrawal of cautionary announceme...
11/12/201314:32MURRAY & ROBERTS HOLDINGS LIMITED - Implementation of Clough Scheme of Arrangeme...
11/12/201314:24HOWDEN AFRICA HOLDINGS LIMITED - Companies Act 71 of 2008 Section 45(5) (a) anno...
11/12/201313:40OLD MUTUAL PLC - Notification of Change in Director's Details
11/12/201313:39MONEYWEB HOLDINGS LIMITED - Results of Annual General Meeting
11/12/201313:14INTERWASTE HOLDINGS LIMITED - Trading Statement
11/12/201313:10AVI LIMITED - Acceptance of share options by AVI directors and directors of majo...
11/12/201312:27METAIR INVESTMENTS LIMITED - Directors' dealings in securities
11/12/201312:26METAIR INVESTMENTS LIMITED - CANCELLATION OF S339821 Director's Dealings In Secu...
11/12/201311:53SHOPRITE HOLDINGS LIMITED - Dealings in securities by director of main subsidiar...
11/12/201311:50Transnet SOC Limited - Transnet Commercial Paper Issue: TSP154
11/12/201311:45VUKILE PROPERTY FUND LIMITED - Dealings in securities by directors and company s...
11/12/201311:41SAPPI LIMITED - Vesting of conditional share awards granted to directors of list...
11/12/201311:20WESIZWE PLATINUM LIMITED - Change of registered office address
11/12/201311:19THE STANDARD BANK OF SA LTD - New Financial Instrument Listing Announcement - CL...
11/12/201311:02DELTA PROPERTY FUND LIMITED - New Debt Financial Instrument Listing - DLTB02
11/12/201310:45ABSA BANK LIMITED - New Financial Instrument Listing - ABN91
11/12/201310:00CONVERGENET HOLDINGS LIMITED - Updated trading statement
11/12/201310:00JSE LIMITED - GEN General Consultation process on proposed changes to the LR f...
11/12/201309:52ARGENT INDUSTRIAL LIMITED - Dealing in securities by a director
11/12/201309:40NEW GOLD ISSUER LIMITED - NGPLT Listing of additional NewGold Platinum Debentur...
11/12/201309:30NEW GOLD ISSUER LIMITED - NGPLT Listing of additional NewGold Platinum Debentur...
11/12/201309:19DEVELOPMENT BANK OF SOUTHERN AFRICA - New Financial Instrument Listing Announcem...
11/12/201309:10AFRICAN OXYGEN LIMITED - Appointment Of Company Secretary
11/12/201309:08REBOSIS PROPERTY FUND LIMITED - Dealing in securities by an associate of a direc...
11/12/201309:00CAPITAL & COUNTIES PROPERTIES PLC - Kings Court and Carriage Hall Proposals Rece...
11/12/201308:38BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
11/12/201308:23WITWATERSRAND CONS GOLD RESOURCES - Firm Intention By Sibanye Gold To Make A Cas...
11/12/201308:17REAL PEOPLE INV HOLDINGS LTD - Rating outlook remains unchanged
11/12/201308:10NET 1 UEPS TECHNOLOGIES INC - Net1 signs agreements for Black Economic Empowerme...
11/12/201308:02THE DB X-TRACKER COL INVEST SCHEME - Listing of additional securities
11/12/201308:01THE DB X-TRACKER COL INVEST SCHEME - Listing of additional securities
11/12/201308:00THE DB X-TRACKER COL INVEST SCHEME - Listing of additional securities
11/12/201307:52GIYANI GOLD CORPORATION - Early warning report pursuant to National Instrument ...
11/12/201307:05LONMIN PLC - Notification of Transactions of Directors and Persons Discharging M...

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