December 2019 – From the Advisor’s Desk

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December 2019 – From the Advisor’s Desk



From the Advisor’s Desk




Today, we’d like to share with you the latest developments at Bobats and showcase our broadened investment offering. We’re super-excited to now have a full suite of investment options for pretty much any investment objective you may have in mind. Try us!

As 2019 draws to a close, we’d like to sincerely thank you for your unwavering support and trust in Bobats. We wish you a joyous and restful holiday over the coming weeks and hope that you will be recharged and ready to go in the new decade coming thereafter!

Bobats turns 90 years old next year! This feat is testament to our core value of always acting in the long-term best interests of our clients. We will strive to continue doing so, as we enable you to focus on the finer things in life, knowing your wealth is in safe hands with us.






Don’t miss this opportunity to maximise your family’s contributions to these fantastic tax-efficient structures and get one up on SARS!

Also speak to us about the suitability of Section 12J investments in your portfolio (detailed further below).

Click here to learn more about these investments:





What’s going on at Bobats?



2019 has been another transformative year for Bobats.

We moved into an office of our own in a lovely, green corner of Morningside, Durban. Please do pay us a visit if you haven’t already.

Our team has now grown to 11 people, fulfilling a wide variety of roles, to ensure our clients have the best service experience with Bobats. We welcomed two fantastic additions (Raylene Bhana and Mahomed Tarmahomed) and said goodbye to a stalwart of the business, Rashida Ahmod. On behalf of everyone at Bobats (and I’m sure many of you out there as well!), we’d like to thank Rashida for her sincere diligence in serving our valued clients over the past 25 years.




Introducing MF Mitha & Co Inc



Bobats recently partnered with MF Mitha & Co Inc, a professional accounting and advisory services business. We share common offices as we drive to make Bobats a one-stop destination for all your financial services needs.

MF Mitha & Co Inc is headed up by Mohamed Mitha CA(SA), who has over 10 years of experience. They specialise in accounting, payroll, tax, secretarial, property management and advisory services for individuals, professionals and businesses.

Their obsessive focus on service delivery and new, user-friendly, cloud-based software sets them apart from the crowd. Mohamed looks to build meaningful relationships with his clients, simplify their financial lives and help them make informed and strategic decisions.

Give Mohamed a call or visit him at our offices to understand more about his unique offering:

Tel :                     031 521 0480
Mobile :               082 626 2880
Email :       





(Click to download large version)




Model portfolios



Sterling Invest, our in-house investment management business, launched its Model Unit Trust Portfolio offering in February this year.

Defined simply, a model portfolio is a basket of unit trust funds that is managed by a Discretionary Investment Manager (in our case, Sterling Invest). Sterling Invest is mandated to make changes to the underlying fund selection on your behalf (without the need for you to sign switch forms whenever it’s necessary)

We developed this offering with Sterling Invest for the following 4 core aims:

  1. To provide a superior and consistent service to all our clients, irrespective of portfolio size and investment risk profile.
  2. To have more influence on the investment decision, on our client’s behalf, to maximise investment returns.
  3. To build scale, allowing us to negotiate lower platform and investment management fees with product providers.
  4. To partner with a world-class fund research partner that optimizes our fund selection and portfolio construction.
To date, just over R 250 million has been invested across our 14 model portfolios. Access our models in your RAs, TFSAs, endowments and discretionary unit trust investments with us today.




ABSA Old Mutual Wealth Islamic Sukuk Endowment (ABSA OMWAISE)



Launched in August 2019 and accessible exclusively via Old Mutual Wealth, this unique investment combines highly efficient tax-structuring with an ABSA Islamic Term Deposit for our high net worth investors.

Through this investment, you achieve a low-risk, ”assured”, Shariah compliant return of 8% per annum after all fees and taxes over a five year period.

By comparison (assuming you are in the 45% tax bracket), an alternative investment would have to offer you a pre-tax return of at least 14% per annum, guaranteed, over 5-years to achieve an equivalent result.





Minimum Term:
Minimum Investment:
Risk Profile:
Underlying Investment:
Expected Returns:
5 Years
R 5 000 000
5-Year ABSA Islamic Bank Term Deposit
8% per annum NET of all fees and TAX *



*  This rate fluctuates on a weekly basis, contact us to get the latest available rate




Section 12J Funds



Section 12J was introduced by Government to encourage investment into small-to-medium businesses in SA.

Section 12J investments are 100% tax deductible in the year you invest, provided the investment is held for at least 5 years. As a result, there is an upfront tax relief of up to 45% for individuals and trusts in the tax year that the investment occurs within a Section 12J Fund. This makes it ideal for investors looking for tax relief due to high taxable incomes or who have experienced a CGT event during the tax year.





Proposed Partner Investment Funds:Minimum Term:
Minimum Investment:
Maximum Investment:
Risk Profile:
Underlying Investment:
Expected returns:
Westbrooke / Lucid Ventures /Bright Light
5 Years
R 250 000
R 2 500 000 (Individuals & Trusts) / R 5 000 000 (Companies)
Student Accommodation Property / Hospitality Property / Renewable Energy Projects
15% to 20% per annum




Sterling Invest JSE Listed
Property Share Portfolio



“Be fearful when others are greedy.
Be greedy when others are fearful.”

Warren Buffet

Having declined approximately 35% over the past 2 years, JSE Listed Property is arguably the most feared sector in the market.We believe that for the long-term investor, current prices present an extremely attractive entry point into a thoroughly diversifiedhigh qualitycompletely passive and liquid property investment portfolio.





Investment Manager:
Recommended Minimum Term:Minimum Investment:

Risk Profile:
Underlying Investment:
Targeted Returns:

Sterling Invest
DMA/SAXO Bank5 Years
R 1 000 000
High (5 years + investment)
Portfolio of 15 to 20 JSE listed property companies
Income Return   : 8% per annum from year 1
Capital Growth  : 5% per annum
Total Return     : 13% per annum



Sterling Invest Global Share Portfolio Endowment through Old Mutual International



In our view, this is the best “pure” offshore investment option available to South African investors.

Our global share portfolios are invested in hard currency (eliminates Rand or Exchange Control risk) and are housed in an Endowment structure (eliminates Foreign Tax & Estate Planning risk).

Through this structure we are able to invest in virtually any Individual Stock, ETF or Foreign Unit Trust Fund globally.





Investment Manager:
Minimum Term:
Minimum Investment:
Risk Profile:
Underlying Investment:
Sterling Invest
Capital International Group / Old Mutual International / Interactive Brokers
5 Years
$ 100 000 or ZAR 1.5 million
Portfolio of Individual Stocks, ETF’s and Unit Trust Funds into equities and/or property

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