In light of this, do you think my money would be safe with FedGroup or would I be taking an unnecessary risk? y = (e.clientY + 5) + 'px'; You can select the unit trust that is best suited to your investment goals and horizon. Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process. 82 talking about this. Working with retailers, He studied engineering at university, but never worked as an engineer. if (document.selection.createRange) { In addition, property values have increased over time. There are also rules which the scheme must follow which ensures stability and security. Higher yields imply higher levels of risk. At 7.35% pa you can invest R938 775 in interest-bearing assets. The fund has full security in the form of these first mortgage bonds over the properties it has lent against. Property Finance. CEO John Field gave his side of the story in this special podcast. With earnings of R10 000 to R15 000 per month you have an average tax rate of between 0% and 5% pa which is low. newTweetLink.innerHTML = ' Tweet'; Working with retailers, distributors, wholesalers and manufacturers, Federated provides programs and services to drive growth in our customers' private label programs. jQuery(appendedTweetLink).css({ So you do need to consider a portfolio that would grow capital, and produce income. Using the latest technology to simplify investing and drive down costs sits at the core of everything we do. At that time the investments had matured in terms of the written agreement. 'I’m a pensioner with R1.5 million to invest – would it be safe with FedGroup’s bond participation scheme?'. This amounted to R46m. SA has more than triple the number of cases in any other African nation. Chamude® man-made leather offers the elegance of real leather while remaining easy to … Fedgroup now offers our range of unit trusts from our award-winning Umbrella Fund to the public for the first time. Craig Gradidge - Gradidge-Mahura Investments. John has 1 job listed on their profile. return range.text Januar 1837 in Moskau) war ein irischer Komponist, Pianist und Klavierpädagoge. Fedbond still didn’t respond, according to the legal docs, “proceedings were initiated”. More recently Absa decided to exit the market leaving FedGroup as the sole player in the market. jQuery('html, body').animate({ Fedbond went silent, according to the judgement, for the next ten months. Federated Group is a premier sales and marketing company in the grocery, foodservice, drug and convenience store business. In 2006 IEB sent Fedbond the three months written notice required to withdraw the funds. View John Field’s profile on LinkedIn, the world’s largest professional community. These are selected according to the purpose of use of the developed product. MTN loses appeal, must pay dealer R11.4m in damages, Rupert responds to Swiss Covid-19 vaccination uproar, Two forex trading companies go belly-up, owing investors upwards of R1bn, Black doctors overwhelming racially profiled by medical aids, The SA unit trusts with the highest net outflows in 2020, Write-offs being sold to unsuspecting used-vehicle buyers, Fedgroup likes to trumpet the benefits of its partbond’s as an asset class, CEO John Field gave his side of the story in this special podcast, Ciaran Whelan is global risk manager and gave Investec’s side of the story in this special podcast, How to set yourself up early for financial success. Setting up a business: sole proprietorship, partnership, or private company? Investec Asset Management recently experienced some trouble with pulling their money out of the investment, resorting to the courts. Your portfolio would be able to sustain an inflation-protected income of around R10 000 per month from now until age 90 assuming a 9% pa return. Fedlife agreed to invest in Fedbond’s partbonds for a minimum of five years, as per the minimum stipulated investment term. This is a reasonably long-term horizon, so you should consider some exposure to equities and other growth assets. So that was that and FedGroup’s CEO John Field was off the hook. Field's unique approach is informed by his broad experience in the financial services industry, underpinned by his BSc in Engineering, an MBA and … I.e. Let’s take a closer look at the product, the company and the overall investment proposition. As it’s a private company, it is difficult to determine the financial stability of the business. There are 400+ professionals named "John Field", who use LinkedIn to exchange information, ideas, and opportunities. is FedGroup a reliable and stable company or should I place my money elsewhere ? View Grant Field’s profile on LinkedIn, the world’s largest professional community. This is a good thing. Regarding the liquidity of the offering, our Secured Investment in participation bonds should obviously be compared against similar five-year term offerings. function createTweetLink(text, e) { Our CEO, Grant Field, explores the balance between people and AI in the financial industry in this month's FA News. This is also an important consideration for a potential investor, but not a deal breaker either. See the complete profile on LinkedIn and discover John… Er gilt als der Erfinder des Nocturnes. return range.toString() Fedbond confirmed in writing that the name change wouldn’t affect the original agreement. “Clearly the terms of the alleged common understanding are inconsistent with and contradict the clear terms of the written agreement. } } Update: FedGroup responds. JOHANNESBURG – Fedgroup likes to trumpet the benefits of its partbond’s as an asset class. The uproar regarding SA’s procurement of the Covid-19 vaccine. I would consider the Part Bond, but not invest more than 10% to 15% of assets there, given the lack of liquidity, the size of the market, and the inability of the investor to determine the financial stability of the product provider. The defence put forward by Fedbond was that a “common understanding” was established within the old Fedsure Group that Fedlife wouldn’t withdraw the total investment. When you mention participation bonds, investors often think back to the devastating impact that Masterbond had on its investors when it collapsed in the early 1990s. However, the various businesses would have to submit financial statements to the Financial Services Board. Hoe kan jy in 2021 jou finansies beter bestuur? Deputy Judge President Louis Harms reviewed the appeal and made the following interesting comments: Fedbond has been ordered to pay the costs of the case, the capital amount and interest. One of these rules is that no more than 75% of the value of the property to be mortgaged may be lent out. FedGroup is a diversified family-owned financial services business. The investment offers the client an ability to lock in a higher yield than he/she is currently earning. I am a 75-year-old married man without a pension. var range = document.selection.createRange(); }, 500); Fedgroup is South Africa's leading independent financial services provider. jQuery('img[class*="wp-image-"]').bind('click', function () { jQuery(document).ready(function () { You can get more information about how we use cookies in our FedGroup makes a small margin of between 1% to 2% on the difference between the borrowing and lending rate. View John Field’s profile on LinkedIn, the world’s largest professional community. var newTweetLink = document.createElement("a"); John has 5 jobs listed on their profile. Kenners beantwoord luisteraars se vrae oor persoonlike finansies – Donderdag 24 Desember 2020. This lower rate reflects the relative riskiness of these products. Obviously, you would need to go through a thorough retirement planning exercise in order to assess your position more precisely. }); In the circumstances the appeal must fail.”, “The appeal is dismissed with costs including the costs consequent upon the employment of two counsel.”, “[Fedgroup] could not explain the basis of this ‘[common] understanding’ and the consequent tacit agreement or how it could have existed in the context of a participation bond investment unless Fedbond had misappropriated the money. * Mandatory field. The argument that individual notices of withdrawal were required is misconceived. Risk is also mitigated by spreading the funds across a portfolio of properties. He says his studies 'taught me how to think’, and this proved invaluable when he started his own business after graduation. Fedgroup is a leading independent investment & insurance company in South Africa providing employee benefits (retirement & life cover) & investment plans }, false); In addition to the part bonds business there is an asset management business, financial planning, a life company and other related businesses. All fields are required. These investments would never be called up simultaneously. You can get more information about how we use cookies in our Terms of use. It is great that you’ve chosen to investigate further and haven’t simply gone for the highest yield that you could find. Do you have any questions you would like answered by registered financial planners? Copies of our license are available on our website or on request at any of our branches. title Mr. Ms. First name Last name Email Confirm email Telephone Name of your shop Address of your shop City ... Would you like to receive new offers and information from John Field? Bond participation schemes, more commonly referred to as part bonds, are collective investment schemes regulated by the Collective Investments Schemes Control Act (2002). Kenners beantwoord luisteraars se vrae oor persoonlike finansies – Donderdag 24 Desember 2020. There is usually a strong correlation between yield and risk. Whelan explained “thankfully the capital amount, the R46m, some of the interest has been paid, it was paid during the period… the total interest came to about R9m. Juli 1782 in Dublin; 23. We are proud to claim zero fees to investors, as we charge no monthly, admin, management or other fees on this product. IEB supplied the relevant documents to comply with FICA (Financial Intelligence Centre Act). newTweetLink.id = "tweetLink"; Investors wanting to compare rates can look at five-year fixed deposits and retail savings bonds to see what they can earn with the same level of liquidity. jQuery(document).on('click', 'a[href*="#to-comments"]', function (event) { In addition, investors do have the opportunity to withdraw capital earlier, subject to conditions (as per other term products). While our products are supported by industry-leading technology, we will never lose the personal touch. Fedbond did not attempt to enforce the “common understanding” when it received notice of Investec’s intention to withdraw its investment, which means the parties had not agreed it applied. Once the foundation of the understanding collapses, so does the whole structure.”, “It is not conceivable that if a participant wishes to invest for a period not exceeding, say, five years and reaches an agreement with the manager to that effect when the investment is made that the manager may, after the five years and after all other conditions have been fulfilled, withhold his consent – even with good reasons – under the rule. scrollTop: jQuery(jQuery.attr(this, 'href')).offset().top A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership. See the complete profile on LinkedIn and discover John… imageLoading: "https://www.moneyweb.co.za/wp-content/themes/moneyweb-domination/images/spinner_moneyweb.gif", You are currently viewing our desktop site, do you want to download our. Please complete the form below. This lack of liquidity is an important consideration for potential investors, but not necessarily a deal breaker. if (window.getSelection) { Over the years, thousands of investors have trusted us to grow billions of rands’ worth of investments. 45563 FINANCIAL SERVICES PROVIDER Financial Advisory and Intermediary Services Act, 2002 It is hereby … They are for that reason inadmissible and unenforceable.”. John Field strives to work with the best available materials in the market. if (textParagraph) { The only fees paid are by the borrower. The object of the rule is to regulate those cases where there is no agreement about the term of the investment.”. This is the sum total of the market, as there are no alternatives available to investors at this stage. imageBtnPrev: "https://www.moneyweb.co.za/wp-content/themes/moneyweb-domination/images/bg_direction_nav.png", Wealth | Life | Future *Fedgroup is an authorised financial services provider. newTweetLink.href = "https://twitter.com/intent/tweet?text=" + encodeURI(text) + "&url=https://www.moneyweb.co.za/archive/fedgroup-vs-investec/&via=Moneyweb"; Grant Field – Group Chief Executive Officer. The company is led by industry veteran John Field who founded the business in 1991. newTweetLink.target = "_blank"; So you are able to earn a real return (above inflation return) from interest-bearing investments. With this in mind, we would like to take this opportunity to elaborate on a few points you make in the article. return undefined; The big question is whether any of the vaccines developed will actually work for the South African strain of the virus – Magda Wierzycka, CEO, Sygnia. View John Field’s profile on LinkedIn, the world’s largest professional community. Many of them have been with us from the start. However, he/she needs to be aware that their investment will earn 12% if they invest for the five-year period but reinvest the interest. var appendedTweetLink = document.getElementById("article-body-content").appendChild(newTweetLink); if (text === "") After all, even a fraction of a percentage lost on unnecessary fees has a massive effect on the value of your savings. Taking into account the original written agreement which stated investments are for five years, “it must follow that once a participant gives notice to the manager to withdraw any portion of its investment on maturity thereof, the manager must honour the withdrawal notice.”, “In the final analysis I conclude that the respondents were perfectly within their rights to withdraw their investment at the expiry of five years. Learn more keyboard_arrow_right Buy keyboard_arrow_right. So, how does a business recover the confidence of its investors and staff after such an ordeal? No. The nominal rate on the RSA Savings Bond with a five-year term is 8.50%. } Federated Group is a premier sales and marketing company in the grocery, foodservice, drug and convenience store business. 2012/000697/07) FAIS No. Grant Field, CEO of FedGroup, is one such CIO who has made it to the top seat. Fedbond has paid R4m odd and we’re just arguing over” the remaining amount owed. Fedlife was bought by Investec and changed its name to Investec Employee Benefits (IEB) in 2001. Fedgroup vs Investec . I also have little more than R1.5 million in cash, which at present is in an FNB Money Maximiser account which pays me 7.35% pa or about R9 200 pm. The “common understanding” points were: Investec questioned the above points, with the judge noting: Fedbond appealed this decision to the Supreme Court. "left": x Talking to Fin24, our CEO Grant Field, addressed the continuing power crisis that is frustrating South Africans and how it is possible to look on the bright side. } Your farming side hustle starts here. On researching to see if I could get a better return on the R1.5 million, I came across a FedGroup advert offering 12% via its bond participation scheme. According the person I spoke to at the company, it looks as if the fund itself owns the properties. Between you and your spouse, you could hive off (assign) R66 000 a year into a tax-free savings account and draw income from there tax free in ten years’ time. The client’s money is invested in the fund, and these funds are then loaned out on first mortgages on commercial and industrial property. The client’s money is invested in an underlying debt instrument which then loans out the funds for the development of various properties. 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