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'The Globe'

VIEWS: 3 PAGES: 5

									                                             ‘The Globe’
                                                    A newsletter, created and edited by
                                              Global & Local Financial Consultants

                               Issue Number: 4                                       Date: 22nd July 2010



                       Contents:                                                               Latest News:

                                                                                        Allan Gray Presentation:

   1.   “The Boss’s Bulletin”                                           •    Allan Gray has offered the clients of Global &
                                                                             Local Financial Consultants (Pty) Ltd. the
        Welcome to winter, but the Spring of South                           opportunity to attend a presentation by their Senior
        Africa                                                               Portfolio Manager Mr. Sandy McGregor. This will
                                                                             take place on the 5th of August 2010 in Melrose
        From our Managing Director, Michael                                  Arch.
        Haldane’s desk.
                                                                        •    This is only open to our clients!
   2.   “Analysing Technically”
                                                                        •    Seats are limited so RSVP QUICKLY to Gwen at
        Half way through the year! What has                                  011-486-2500.
        happened? Where have we come from?                                                 General News:
         Written by Mauro Forlin, our Senior                            •    Stock markets prove to be volatile in first half of
        Technical Advisor.
                                                                             2010.
                                                                        •    Interest rates seem to be on a downward
   3.   “Health Hazard”                                                      movement.
                                                                        •    The Monetary Policy Committee meeting ends on
        Healthcare commentary from our                                       Thursday the 22nd of July and the verdict is that the
        Healthcare Adviser, Wade Wittstock.                                  South African Reserve Bank is that the Repo Rate
                                                                             is to remain at its current level.
   4.   “Legalese”
                                                                        •    First FIFA World Cup in Africa a raging success
        Dormant and “Non-Use” of existing Trusts.                            (Even with the Vuvuzelas!).

        By Senior Estates Practioner, Andre Du                                            Global & Local News:
        Toit.
                                                                        •    Our merger with GE Kuschke Incorporated is now
                                                                             officially complete. Erich will however continue to
                                                                             work outof his offices in Bryanston. Welcome
                                                                             Home Erich!




                                                Global and Local Financial Consultants (Pty) Ltd.
                                               A Licensed Financial Services Provider FSP: 1644
                                                         Company Reg: 2005/029736/07
                                                             Directors: MPA Haldane
                                             Please direct any queries to: mauro@globallocal.co.za
Please Note: this publication is the sole property of Global and Local Financial Consultants and expresses the view and opinion of the authors.
                                    “The Boss’s Bulletin”
                                            From our M.D. Michael Haldane
                               A message from our Managing Director’s Desk:
Welcome to the winter but the spring of South Africa.

It’s been a curious 3 months, what with:

    •   Julius Malema using the royal we and kicking out laughing British journalists.
    •   Europe falling on its face in more ways then one. Greek strikes higher than South Africa for the first time in
        centuries? Yugoslavian government workers incomes slashed by 20%. Everyone in Europe owes someone
        else.
    •   UK looking at huge budget cuts.
    •   Job graduates in the UK needing at least a 1st or 2nd class pass to get a job of which there are a minimum of
        30 applicants.
    •   The Lake District been more dangerous than Soweto.
    •   Barrack Obama awash in a sea of oil and not a clue what to do.
    •   America been badly beaten in Afghanistan with there chief of operations been recalled.
    •   Israel attacking a peace flotilla then making amendments by allowing needed supplies into Palestine. Then it
        emerges there are a lot more Israeli settlements on the Western bank then originally thought.
    •   THE GLORIUS SUCCESS OF THE WORLD CUP. The world ridiculed us and said never would happen and
        plan B Australia would have to do.

I watched the opening match of the world cup and was truly impressed that a taxi took me to the game. It was clean,
well driven, and with a polite driver. On the way back we caught a double decker bus, we experienced the same thing
except the bus driver doing her makeup in the rear-view mirror was a bit perturbing. The atmosphere, fellowship and
sheer fun of the game was great and gave me hope that we can at last put our countries past behind us and get on
with our lives. Interesting thing was half way through the game I took my earplugs out and enjoyed the vuvuzelas!

Then I went to Thailand and Tokyo. For the first time on my travels everyone knew where South Africa was and did
not ask me if I rode elephants or how bad crime was. They even knew we had highways! Wherever I went there were
South African flags and shows on TV in Japanese and Thai on the host South African cities. I spent a happy half an
hour watching a coloured Karoo farmer digging up potatoes and explaining to a Japanese journalist in Afrikaans what
he was doing then to have it translated into Japanese! I do not think we realise what a medium term impact this will
have on our tourist industry and our economy in particular.

On a more serious note: Crime has been down over the world cup, will this continue? Did you know our lovely new
Gauteng highways will cost us 50c per kilometre from next year in tolls? Should the country be up in arms? I heard
the ANC youth league is importing Italian toilets to Cape Town squatter camps now. Problem is Julius Malema has
the monopoly on 4 ply toilet paper.

Stay well and give us a call. Remember, latest news on our website.




Michael Haldane.
                                        Analysing…Technically!
                               Compiled by our Senior Technical Adviser: Mauro A. Forlin.

I started writing this editorial whilst looking at rather large picturesque window overlooking the bay in Shelly Beach on the
Kwazulu Natal South Coast. I realised the end of the 2010 Soccer World Cup is but 2 days away with only 2 matches to
play! I cannot believe that after everything we actually managed to pull it off! It proves the point that if we put our minds to
something we CAN do it!

We are now well past the half way through 2010! So let’s examine 2010 from an investment perspective.

The JSE All Share Index has shed 4.06% during the 1st 6 months of 2010! Wow! This simply means that if this trend
continues the index may be down a full 8% by year end.

However the majority of our chosen investment funds (The one’s we recommend to our clients.) are showing a positive
return, if our client has chosen to enter into our house-view fund mix then the result for 2010 year to date is positive.

The same can be said for the BHI Investment Strategy Fund, which is reflecting a positive 4.86% return for the year 2010
thus far.

It’s a good sign when the funds managed by experts outperform the indices, as this simply means that the fees these fund
managers earn have in fact been earned, rather than simply paid!

Successful Investing:

Michael, our MD, recently sent me a copy of a Newsletter from a stock broking firm which focused on why some stock
traders are successful.

Reading this article I realized that some of these habits could also be adopted to normal non short-term stock trading. Here
are some of the interesting habits:

    •   Have a clear validated strategy (This is where we can help.) that works for you.
    •   Never panic; rely on your strategy to pull you through.
    •   Focus on investments you can understand and know (Again this is where our guidance helps.).
    •   Be careful not too take too much notice of the market noise and media hype.
    •   Do not place too much weight on element to drive the performance of your portfolio (This means, Diversify! Once
        again this is where would provide advice.)

I trust you have found this interesting, should you have any questions on this or any other matter, contact us..we
love to hear from you!

Kindest Regards

Mauro A. Forlin
                                                    Health Hazard
                            A commentary from Mr. Wade Woodstock our Healthcare Advisor:




                            The importance of belonging to a Medical Aid before the age of 35

                                   (Medical Insurance is not recognised as Medical Aid).


Medical Aids are obliged to charge any new member a Late Joiner Penalty if that member is over the age of 35 and has never
been on a Medical Aid, or is over the age of 35 and has had more than 90 days break in cover.

This Late Joiner Penalty does stay for life, and can end up costing the member a large amount of money over the life of the
cover. The amount of the Late Joiner Penalty can very from 5% to 75% depending on the age and the number of years the
member has not belonged to a Medical Aid scheme.

If a member has belonged to a medical aid scheme and is over the age of 35, the medical aids will calculate the number of
years the member has been on medical aid against the number of years without cover.

For example: If a member is 58 years old and had 12 years cover from the age of 35 the calculation would be as follows:

                                                         58-35-12=11.

The member had no cover for 11 of the 23 years after the age of 35 and would have a Late Joiner Penalty of 25% onto their
Medical Aid which would last for life.

The late Joiner Penalties that could be applied are as follows

    •   1 to 4 years without cover     - 5% Late Joiner Penalty
    •   5 to 14 Years without cover    - 25% Late Joiner penalty
    •   15 to 24 years without cover   - 50% Late Joiner Penalty
    •   25 years or more without cover - 75% Late Joiner Penalty

So even if a member is on a Hospital plan that is part of an actual medical aid scheme, this member will be excluded from
Late Joiner Penalties as long as he/she never has a break in cover.

Hospital Insurance is very different from an actual Medical Aid scheme and does not qualify in any way as a Medical Aid
scheme and those members coming off from the Hospital Insurance will have Late Joiner Penalties imposed on them should
they now wish to join a Medical Aid scheme.


Views thoughts and expressions brought to you by,

Wade Wittstock
Medical Aid Advisor.
Global & Local Financial Consultants (Pty) Ltd.
                                                       Legalese
                                      TRUSTS: DORMANT OR NON-USE OF TRUSTS


Not many people are aware of the fact that not using a Trust after registration thereof does not mean that you can lock the
Trust documents away, only to be dusted off and used in a few years time without some negative implications.

Despite not using a Trust you (Trustees) still have to lodge annual tax returns albeit nil tax returns. The most important step
after registration of the Trust is applying to SARS to have the Trust registered as a separate tax paying entity. Then, as
painful or time-wasting as it may seem, annual tax returns have to be submitted.

Not submitting tax returns will in all probability attract penalties from SARS which surely any person would want to avoid at
all costs.

A bit of good advice is to check with your accountant/auditors whether your Trust has been registered for tax purposes and
whether all tax returns have been lodged to date, it will most certainly save you a lot of money.

Brought to you with compliments from
Andre du Toit
B.Proc (Law)
Senior Estates Practitioner

								
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