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Newsletter: Foster Wealth December 2015 News | 9 December 2018

As 2015 draws to an end, we are pleased to draw your attention to our new website, which aims to emphasise our core values of honesty, integrity and loyalty to our clients. These attributes are embedded in our 27-year history.

The login section for your monthly statements remains exactly the same and you can access it here.

Our financial advisors can visit their dedicated page and learn more about what we can offer.

Join the conversation on social media by liking us on Facebook and Twitter!

From a business perspective 2015 has been an extremely challenging but also very interesting year. The world’s biggest brewer, Anheuser-Busch InBev, forked out over R1 trillion for the second biggest brewer in the world, SAB Miller. AB InBev will now dominate over half the industry. Is this good or bad? Before the AB InBev buy-out, SAB Miller already sold more beers in 5 minutes than the three biggest craft brewers in a month.

Politically, 2015 has also been extremely challenging with major attacks in Tunisia, Egypt, France and Mali in the second half of the year. What makes investment management difficult is that the French equity market rose 2.2% in the week following the Friday the 13th terror attacks in Paris.

Yet we look to 2016 and want to take this opportunity to wish our Christian clients a Happy and Blessed Christmas and all our clients a Happy and Healthy New Year.

For those of you who will be travelling, we wish you a safe journey.

The Foster Wealth Team

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Investments: Where does the money go?

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”
~ William Feather

Recently, a religious organisation discovered their money had been invested in an oil and gas exploration company. Not wishing to support the mining of fossil fuels, they sold their shares in the company concerned. When you sell, of course, someone else is buying – so while the transaction did not necessarily harm the company directly, the organisation hopefully had the satisfaction of placing their money with ventures they felt offered a greater sense of altruism and good influence.

But more intriguing than anything they felt or did, is the fact that they knew exactly where their investment had gone. And most people, unless they’re well-versed independent investors who do their own selecting, have no idea what happens to their money once it is swallowed by a ‘fund’. This includes retirement funding, policies, money markets and all financial investing options across a wide spectrum of choices. In fact, it’s often a question they never ask. They simply expect the value of their investment to naturally, hopefully, grow.

Read more.

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The Thin Edge of the Wedge: Who is the 1%?

In 2006, a film made by Jamie Johnson, heir to the Johnson & Johnson fortune, depicted Americans who controlled nearly 50% of America’s total financial wealth in 2004. The stir this created rippled across the globe until it became a wave of outrage and resentment. Eventually, for a variety of supportive reasons, banners were painted and people marched, and finally ‘Occupy Wall St’ set up vigil outside New York’s powerful financial houses.

But the 1% remained unperturbed. This is largely to do with financial acumen, personal character and practical insight. The wealth of the 1% isn’t under their mattresses – it’s tied to vast investments, ventures, projects, product development, research, science, technology, energy exploration and inventions. All of which are the very things we depend upon to prop up job opportunities, pension funds, life policies, etc, right down to competitive pricing in the supermarket. In fact, the wealth of the 1%, including their taxes, underpins just about everything on the planet.

Read more.

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Financial Advisors: Managing Compliance

Whether you have just set up your independent practice or have already established a solid track record in the fields of financial and investment management, you will find that your most difficult area of administration will be the compliance obligations and onerous recordkeeping required in today’s current business and regulatory environment.

The pressure to observe all constraints in a timeous, detailed and accurate manner is both time-consuming and tedious. In tandem with this increase in paperwork and application are a number of issues which add to the stress:

• clients’ expectations have grown as an ever-growing spectrum of investment opportunities become available

• the investment environment is becoming increasingly complex and therefore more difficult to manage

• fees and commissions are constantly under pressure.

Read more.

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