Welcoming In 2011

We wish all our clients a healthy and prosperous 2011. While it is difficult to predict what this New Year will bring, we urge our client to stick to their financial goals and not be swayed by short-term market movements.

One of the most exciting announcements in December 2010 was the invitation for South Africa to join the Emerging Market "BRIC" Club. "BRIC" stands for Brazil, Russia, India and China. Although it is too early to predict the outcome of South Africa joining BRIC [SA] we will keep you informed as matters unfold.

Before we launch into our Communiqués concerning financial planning it is good to look at what happened to financial markets during December 2010 while most people were on holiday. Set out below is a short extract provided by Investec which gives a snapshot of what happened around the world.

December 2010 market highlights:

• The FTSE/JSE Share Index (ALSI) returned 6.2% for the month of December, ending the year on 19.0%. The best performing sector over the month was telecommunications (11.2%) and the worst performing sector was health care (1.1%).
• The All Bond Index (ALBI) ended the month 1.7% firmer posting a double digit, 15.0% return for the year.
• The SA listed property sector returned 2.2% for the month and ended the year with an excellent return of 29.6%, outperforming equities (19.0%), bonds (15.0%) and cash (6.9%).
• The MSCI World Index (US$) posted a positive return of 7.4% in December, ending the year 12.3% in the black.
• The MSCI Emerging Markets Index (US$) followed developed markets positive performance returning 7.1% in December. Over the past 12 months the index posted a 19.2% return. The MSCI South Africa Index (34.2%) was the best performing emerging market index over the 12-month period, while the MSCI China Index (4.8%) was the worst performing index.
• The Rand strengthened against all the major currencies in December. The local unit gained 7.2% against the US dollar, 4.3% versus the euro and 7.2% to the UK pound. In 2010 the rand benefited from the global revival in risk appetite with strong foreign portfolio flows into emerging markets. The currency strengthened by 11.8% against the US dollar, 18.7% to the euro and 15.1% versus the UK pound for the year.

We are approachable and committed to a high level of client service and will always be available to discuss the development of your portfolio and all matters of interest and concern to you.

We look forward to a long and successful partnership in 2011 and onwards.