Concerned about entering the market?

The market bounced can I still invest?

Invest consistently, regularly and systematically. Stay invested over the long term.

It is impossible to time the market and the goal is to always keep in mind that we need to focus on long-term wealth.

SA or Offshore

The rand has moved quickly, should I take money offshore?

Diversification and protection from a weakening currency are the two primary reasons for having offshore exposure. SA is less than 1% of the global economy and by focusing all your investments locally, you’re missing out on some of the best businesses in the world.

Options available for South African investors to invest offshore:

• Externalise your money
• Invest in rand-denominated funds with offshore exposure
• Utilise an asset swap facility

Relying on income in my portfolio

Few companies are paying dividends, how do I generate my income?

Dividends are cash payments a company usually makes twice a year (or quarterly in the US) to shareholders, depending on whether the company made a profit. If a company does not pay dividends, it may choose to reinvest its earnings into new projects or even acquisitions. Dividends are a good way to give a portfolio additional stability, since these payments are likely to continue long term. When dividends are reinvested, an investor’s wealth increases – the more dividends you reinvest, the more shares you own and the larger your future dividend payments.

Looking for a stable income or investment that will not lose capital? Invest in a money market fund which has returned 9.8% p.a. since 2000, with the lowest return being 7% over the past 20 years.

Uncertain Times

How do I plan for my retirement post COVID-19?

You’ve worked hard for your money; you deserve the fruits of your labour. At Anchor, we recognise the importance of your retirement. Achieving your retirement goals begin by putting in place the right retirement plan.

We also understand just how crucial stability is to you, particularly in the wake of the current pandemic we find ourselves in. With an Anchor retirement plan in place, you can rest assured that your wealth is in the hands of a world-class investment management team.

If retirement planning is your focus right now, it is important to consider the following:

• Your time horizons to retirement
• The liquidity of your investable assets
• The ability to invest as much of those assets offshore as possible

Money In The Bank Not Beating Inflation?

How do I get a return above inflation without taking excessive risk?

Risk-averse investors do not want to invest in equities because of perceived volatility. Current interest rates are the lowest ever, with a possibility of further cuts. Consequently, banks do not offer attractive returns – the average return is barely in line with inflation resulting in eroded purchasing power over time.

Investment trends show the Flexible Income Fund strategy is giving most people the best risk/return outcomes in the current low-yield environment.

Example, if you had R10mn invested in a 32-day call account and you were earning about R56,000 per month in interest income, this year’s interest rate cuts mean that your monthly income has now dropped to about R33,500. Regrettably, there is no winding back the clock and Anchor’s house view is that interest rates are likely to linger at around these levels for a while.