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It’s been over a decade since the start of the Global Financial Crisis (GFC), and markets have rebounded spectacularly in the years that have followed.
Another eventful week and we are closer to the end of what has been a dreadful year for local investors. Locally, headlines were dominated by the decision of the parliamentary constitutional review committee to proceed with an amendment to explicitly allow for land expropriation without compensation (EWC). This was expected and therefore largely ignored by the markets. The big question instead is under which circumstances EWC will be applied.
According to the Morningstar Fund Rating Agency’s statistics, the top three Shariah Compliant Unit Trust Funds in South Africa - with a combined market capitalization of more than R10bn- have performed relatively poorly over the last five years with average annualised returns of 3.9%, 4.7% and 7% respectively. Moreover, investing directly into these Unit Trusts does not offer investors any income tax breaks.
A new majority black controlled private equity fund, New Seasons Investment Fund (“the Fund”), has been launched following the merger of two respected private equity fund companies – New Seasons Investment Holdings and Nodus Equity.
The strongest deterrent against FSP compliance missteps is or should be: