The Prosperity Worldwide Flexible Fund of Funds, which I co-manage, continues to produce solid investment returns. Over the last 12 months, the fund is up 17.5% and is the number one performing fund out of 73 funds in its Morningstar Worldwide Flexible category. Since inception (September 2014), the fund is up an average 9.3% per annum. Key to the fund’s steady, good returns, is its very disciplined investment strategy, which takes positions in irrationally priced asset classes with a very tight risk management overlay. We expect these steady returns to continue, making the fund well suited for the current volatile environment.

If you can’t tolerate poor investment returns any longer, a solution is to “park” your money in a conservative portfolio comprising mainly income funds. This “income” strategy has yielded a steady average 8.7% p.a. return over the last four years. By parking your investment in these low-risk funds, you will avoid market declines while still earning a steady return above inflation. We continue to monitor the market environment and investors can switch into a higher allocation of growth assets when the environment improves. Read more about the strategy and recommended funds.

The 2019 tax filing season has started. There are a few important changes to be aware of and we have tabled the various deadline dates for the different types of taxpayers.

The stock market continues to be a roller-coaster ride for equity investors, experiencing regular ups and downs. Low-risk investors continue to smile as they enjoy a smoother journey.

We discuss the reasons for the ups and downs in the market and provide our investment outlook for the remainder of the year.

The general rule is that all South African tax residents must pay tax on all their income, irrespective of where it is earned. SA tax residents who have cash and investments offshore are still required to include these investments in their SA tax returns and they will be subject to normal SA income tax.