In a not unexpected move, Moody’s downgraded South Africa’s sovereign credit rating to one notch below investment grade at Ba1. They also kept South Africa’s outlook as negative, indicating the risk of a further downgrade within the next eighteen months. As a result of this move, South Africa will no longer form part of the…
Dynasty is deeply aware that Covid-19 is essentially a humanitarian crisis. Due to extensive media coverage on the human, social, scientific, and statistical aspects of the virus, we thought it would be informative, in the capacity of the custodians of our clients’ wealth, to run a weekly series covering the economic and investment impacts of…
Global Franchise’s defensive qualities provide support Equity markets have again fallen significantly as fears of a further spreading of the coronavirus, and likely stricter containment measures (particularly in the US), have been compounded by the emergence of a price war in the oil market, after Russia refused to agree to production cuts proposed by Saudi…
The Rand is likely to remain substantially undervalued as we wait for SA to be rebalanced out of the global bond index at the end of April 2020. The currency could strengthen somewhat after the rebalancing, especially if SA and global infection numbers have improved. The currency is significantly undervalued against all the major currencies.…
“Panic is highly contagious, especially in situations when nothing is known and everything is in flux.” – Stephen King Stock markets across the world had their worst day since the 2008 financial crisis on 9 March this year. A more than 30% intra-day crash in the oil price added further volatility to a market already spooked…
Subsequent to the 2020 Budget Speech and the announcement of a shift from negative exchange controls to a capital flow management system to regulate cross-border capital flows, the Financial Surveillance Department of the South African Reserve Bank (“FinSurv”) issued Circular No. 2/2020 (“the Circular”) outlining in (marginally) more detail the proposed capital flow management measures…
As we correctly predicted, Tito Mboweni in this weeks budget speech decided against increasing the VAT and tax rates, in favour of reducing the government wage bill. Rather, he provided real income tax relief to individuals, in the form of above-inflation adjustments to all tax brackets and rebates, as well as a promise to reduce…
Please find below an article from Kevin Lings, Chief Economist, STANLIB: In 2019 the Rand strengthened by 2.8% against the US Dollar, after depreciating by -13.9% in 2018. In 2017 and 2016 the Rand had strengthened by 10.5% and 13.2% respectively, after collapsing by -25.4% against the US Dollar in 2015. Clearly the Rand is…
We have faced situations where distributions to beneficiaries of offshore trusts are problematic where the recipients are tax resident in various countries around the globe, such as the US, UK, Australia, Israel and Europe. We’ve asked Robyn to provide her expert insight, the first jurisdiction she is focussing on is the US, with the other…
