Dear Clients and Associates
December 2014
2014 is quickly coming to an end and as always it is our privilege to
share the highlights of our practice for the past year.
We had no retirements the past year. New clients that resigned joined us
by means of referrals. A warm welcome to you, we trust we can provide the same
value and build long-term relationships, as with our established clients. Thank
you for your trust and support, we appreciate the referrals.
Investments/ Creation of Wealth
We are proud and
thankful our investments under management have increased with 36% per annum over
the past 5 years. Interest rates have increased during the past year. It is
good news to investors with Money Market funds, but it puts a lot of pressure
on those with debt. Money Market funds provide a current interest rate of
between 5-6%, the same as South Africa’s official inflation. For this reason you
should not invest excessively in these funds. Inflation is generally a lot
higher in practice than the official figures indicate. Even conservative investment
models perform better than Money Market funds, as illustrated in the table
below.
We experienced a
volatile economic climate in 2014. Economists predict further fluctuations in
the market during 2015. We, therefore, advise you not to make radical short
term decisions, but to stay focussed with your long-term goal in mind. The
objective of our fund managers and ourselves, is to achieve fund performances
equal to or greater than the respective benchmarks over a three year rolling period.
Our portfolio performances
are outlined in 1 year, 3 year and 5 year terms. The growth is the average growth
per annum. Money Market funds are comparable with a Conservative risk profile
and JSE ALSI 40 and Satrix 40 are comparable with an Aggressive risk profile.
These performances are nett of cost percentages.
Risk Profile
|
3 Year Rolling Benchmark
|
1 Year
|
3 Years
|
5 Years
|
Conservative
|
Inflation +2%
|
8%
|
10.37%
|
9.97%
|
Cautious
|
Inflation +3%
|
8.62%
|
11.95%
|
11.26%
|
Moderate
|
Inflation +5%
|
10.31%
|
14.78%
|
13.32%
|
Moderately
aggressive
|
Inflation +7%
|
13.27%
|
19.58%
|
17.24%
|
Aggressive
|
Inflation +9%
|
13.8%
|
20.22%
|
17.88%
|
Money Market
|
|
5.47%
|
5.19%
|
5.6%
|
JSE ALSI 40
|
|
10.05%
|
14.52%
|
12.66%
|
SATRIX 40
|
|
10.28%
|
15.23%
|
12.67%
|
We are thankful and
proud that the investment companies whom we invest with, operate with
transparency and also provide sound practical information.
Congratulations
Congratulations to all our clients who have successfully completed their
studies. We are proud of you.
Congratulations to Dillon Daniels for achieving his national colours in
baseball and provincial colours in softball. To enable us to share in your
success and to inspire our clients and associates, please inform us of any
achievements you have earned over the past year.
Inspiration
Two young men from
Hermanus, Josh Henn and André Barnard risked their lives to save someone from
drowning. Your unselfish service is an inspiration to us all. You can watch the
video link:
www.nsri.org.za/2014/02/hermanus-kayak-rescue.
Josh’s father, Henk, who is the chief commander of the NSRI in Hermanus, has
been our client for many years.
Studies
We keep up with constant
changes in the industry by attending workshops and seminars, as it is our objective
to always render most appropriate and up to date service and advice to our
valued clients.
Tax assessments
We registered as a
tax technician with S.A.I.T. All tax assessments have already been submitted
and finalised for the year. Each year S.A.R.S. becomes increasingly strict to
allow deductions. Please keep your proof of payments for medical expenses for
five years. Only prescribed medications and medical accounts, not recovered by
the medical aid, will be considered. Should you claim a vehicle allowance, a
complete log book must be submitted. Please supply your tax documentation in
good time to ensure next year’s tax assessments are finalised as soon as
possible.
Sad news
Our thoughts are with
our clients going through a crisis, like divorce, health problems or if you
were involved in an accident. Well wishes to you all. Our thoughts are also
with the Koopman- and Labuschagne families who lost a family member in the past
year. Piet Labuschagne was a friend of our family for more than 30 years and
will be sadly missed.
Estates/Wills
Thank you to Visagie,
Vos and Partners for your expertise and personalised service. As always, our
clients have experienced speedy and professional finalisation of estates. A
special thank you to Petri Lourens, senior legal advisor at Old Mutual, for his
appropriate advice and for being readily available at all times. He always does
more than is expected of him.
Short Term Insurance
A recent case study
was circulated, where a client submitted a false claim and in the process the
claim was denied, his short term insurance was cancelled and consequently no
insurer will accept him for a new policy. Please ensure that all information you
supply is true and accurate, when you apply for a new policy or submit a claim.
Our office policy is
to provide the best, not necessarily cheapest, products to our clients. One of
our clients had a robbery claim in 2009. Personal belongings, to the value of R97
213,53, were stolen. The client received
R14 698,33 in cash and an e-voucher for R82 515,20. During October 2014 some of the same items which
were replaced in 2009, were stolen again. The client requested a cash
settlement and received an amount of R40 723.
This proves that clients should remain with established insurers.
Please inform us if
you are not satisfied with your premium or service, to enable us to address the
problem, instead of just changing to a different service provider without our
knowledge. In most cases we are able to provide a solution to the problem.
Statistics confirm that
traditional insurers maintain at least a 70% claim payment ratio, compared to
the 52% of direct insurers. Please ensure that you have sufficient insurance
coverage at all times. Replacement values of buildings and house contents, as
well as the book values of vehicles, must be adjusted annually.
For enquiries during the Festive
season when our office is closed:
Mutual
& Federal clients Tel:
021-506 0100 (Claims)
Tel: 0860 247 365 (After hours emergencies)
Tel: 0860 637 373 (Enquiries)
Santam Tel: 0860 505 911
(Claims and after hours emergencies)
Tel: 0860 726 826 (Enquiries and amendments)
Auto & General Tel: 021-527 8666 (All claims, enquiries and amendments) Tel: 0860 104 210 (After hours
emergencies)
Life cover/ disability/ trauma benefits and claims
We do not promote
certain companies’ products, for ethical reasons and can proudly confirm that not
one of our clients have had a claim rejected yet. The insurance companies have
certain requirements which have to be met, specifically for trauma and disability
claims.
Please, therefore, be
patient and provide the necessary prescribed documentation, to prevent
unnecessary delays and ensure the process runs smoothly. We determine the risk
cover by means of a Financial Need’s Analysis (F.N.A.), which must be reviewed
annually to provide for continual change in financial circumstances.
Non-smokers can save
up to 40% on their insurance premiums. Our client, Henk Henn, saved R2 000 per
month when his status changed from smoker to non-smoker. He encourages all
smokers to quit. Thank you Henk for setting an example.
There are fantastic
new Retirement Annuities available, which provide an additional bonus on the
fund value. Please contact us for a proposal. We will also review all clients’
individual situation at their revision appointments.
Revision Appointments
Thank you to all our clients who always make time for their biannual or
annual appointments. It is important to us and we are bound by our service
agreement with you to review your portfolios and financial needs, to make adjustments
in an ever-changing environment. It is especially important that we review the
portfolio of each of our investment clients and adjust it according to each
client’s individual risk profile.
Please inform us, before an appointment, if your situation has changed
in any way or if you have any specific queries, to enable us to do the
necessary preparation prior to the appointment. Please also check your bank
statements, or ask us for help, to ensure there were no unwanted payments done without
your knowledge.
Website
Please visit our
website: www.tvzfinancialservices.co.za and comment on our Facebook page. Thank you to Tina
Vlok from www.berryweb.co.za who designed our webpage and still provides continuous
support.
Thank you for the
feedback from clients, your feedback helps us to improve our service.
Behind the scenes
We have worked
closely with a big pension fund the past few years and have designed different
risk profiles for the employees. Thank you for the positive feedback.
We also receive
positive feedback regarding our improved Financial Needs Analysis (F.N.A.)
programme, as well as the new investment spreadsheet indicating Rand values nett
of costs.
Unfortunately there
are still “unethical” advisors who target pension funds of clients, provide
unfounded advice and transfer policies without good reason. The Financial
Services Board (F.S.B.) has published its principals to limit malpractice. We fully
support the suggestions to be enforced for a professional industry.
Compliance
Masthead is still the
biggest network for brokers and we work closely to improve our industry
continuously. Thank you to Herman Hesse, our compliance officer, who handles
our compliance on a quarterly basis.
Thank you to Anzel Jewaskiewitz,
our practice manager. We are especially proud of our business development
report where we achieved 96% and for the first time 100% for Client Fulfillment.
Personal
Our daughter,
Kirsten, was employed this year to scan old documentation on our electronic
system. The project was completed successfully and she is currently working in
America. For the first time in 33 years our van Zyl household is childless.
Elmarie, who handles the short term insurance, will be working again in the
mornings from 8:00 – 13:00 next year. Elmarie has been with our business the
past 15 years and Janneri will be at Toni van Zyl Financial Services for 10
years in January 2015. Thank you, we appreciate your dedication and
professionalism.
Thank you to all our
clients for your contribution towards our growing business each year. We are
positive and look forward to 2015 with all its challenges.
Our office will close
on 19 December and re-open on 5 January 2015. We look forward to the break.
Merry Christmas and best wishes
for the New Year!
Kind regards
From all of us at Toni van Zyl
Financial Services
No comments:
Post a Comment