Equities are one of the major asset classes and the JSE offers access to a wide variety of sectors for investors. Essentially an investor on the JSE has access to the global economy simply by investing in shares that conduct their business in many parts of the world. These are in resources, telecoms, financial services and industrials.

Our service includes portfolio management where we analyse various sectors and we select what are the best shares to put your money in.

Valuation of shares and their performance is what keeps us occupied.

Unit trusts are a well known vehicle for saving and investing. Our access to a leading LISP (Linked Investment Services Provider) gives us access to a selection of top performing funds, both domestic and international. Such funds in turn provide easy access to diversified portfolios managed by skilled fund managers.

An advantage of unit trusts is their affordability. One can simply purchase into a fund via a monthly debit order. This gives the added benefit of rand cost averaging.

Yet another advantage of this class is the fact that the funds are regulated. Furthermore, as an investment vehicle unit trusts are tax efficient structures.  They are exempt from paying income tax and dividend tax.

Exchange Traded Funds have taken the world by storm. The effects of technology on financial markets is most prominently expressed in this asset class. 

ETFs are a collection of certain instruments like a selection of shares or an index. A particular sector or a certain commodity may be of interest to an investor.

There are some advantages to trading in ETFs, namely the lower cost of transaction and the transparency. The former is mainly due to the fact that the need for an active manager is eliminated. This adds to the total returns earned. The latter is due to the fact that unlike unit trusts, ETFs have neither the need nor the means to conceal their constituents. The components are well known such as the Satrix 40 or New Gold.

The REITs industry took off in 2013 comprising of what were then known as PUTs (property unit trusts) and PLSs (property loan stocks). Real Estate Investment Trusts derive their income from the ownership of various types of property. This includes shopping malls, residential property, industrial and commercial assets. Various styles of management of such assets exist, including combinations of assets in various sub sectors.

All REITs must earn a minimum of their income from rentals.

In South Africa REITs have the advantage of reduced tax liabilities. By adhering to the JSE’s regulations in the application of the Income Tax Act, REITs do not pay corporate tax. To enjoy this benefit the REIT must pay a minimum of 75% of its distributable earnings to its shareholder.

The forex market is the most liquid of all markets. It is where money itself is traded.

Without any physical foreign currency being utilised, the trader can take a position in the movement between two currencies. Whether you are a speculator or a corporate looking to manage your risk in relation to imports and exports, currency futures allow participation in many currency pairs.

Traders can take positions beyond their foreign allocation.

Currency futures are geared products. The investor therefore is exposed to risk which is greater than the amount of deposit (margin requirement) they start with. The full exposure of the trade is the nominal value of the position taken by the trader. Traders in Currency Futures must take caution as  the losses of trade can be greater than the initial capital invested.

In the process of wealth creation and preservation, risk is ever present. Risk management is central to all processes of portfolio management.

We combine various assets to optimally realise the best outcome for the investor. For this purpose it is essential that we understand the needs and circumstances of each investor. The portfolio structure must appropriately speak to whatever phase in the life cycle of the investor. 

The bond market is where government and major corporates raise capital. This provides an investor with yet another possibility to diversify their portfolio.

Bonds are long term investment instruments with fairly predictable returns. In times where the equity market is underperforming, bonds can provide good cover, particularly for large portfolios.

In the notorious 2008 global financial crisis, the equity markets lost heavily, with the Allshare Index losing more than 25%. Government bonds however gained 17,5%. That is the value of the bond market.

Whether it is inflation linked bonds, fixed rate or variable rate bonds, this asset class provides investors with a good anchor.

Mavuso Capital is also a participant in a new and exciting market with respect to bonds.As a sponsor, Mavuso is able to assist corporates to raise capital in the Listed Debt market of the 4 Africa Exchange (4AX).