Personal Solutions

Wealth Management

Why invest?

If you've never invested before, setting off on this rewarding financial journey can be a bit scary. (Come to think of it, even if you've been doing it for years it can still feel a little daunting at times.) But it needn't be.

The reasons for investing are clear and simple: to prepare for your future. Nobody wants to work their entire life. Investing is one good way in which you can secure a financially stable future, so you can relax and enjoy some time in the sun.

Why not simply build reserves in the bank (or under the mattress)?

Simply stashing your money away in the bank may appear to be the easy option, right? Your money is earning some interest so why bother to find other vehicles for investment? Before you give in to that temptation, perhaps you should take a look at these figures:

  • Shares have beaten cash in 63% of all 10- year periods since 1962
  • Shares have beaten cash in 64% of all 15-year periods since 1962
  • Shares have beaten cash in 63% of all 20-year periods since 1962

Smart people make their money work harder! By investing their money in the right places, you can gain profits to help you realise the future you dream about. The earlier you invest, the better your growth and the easier it will be for you to build your nest egg. But it’s never too late to start!

Unit Trusts

Whatever your objective - income now, income later, a growing income or building up a large investment - a suitable investment can be structured.

A unit trust investment reduces your risk of investing in the stock market by pooling your savings with thousands of others and then spreading the money across a wide range of shares or other types of investment.

Unit trusts are also cost effective, charging a fraction of what it would cost you to invest in a broad basket of shares by yourself. The beauty of unit trusts is that professional fund managers are employed to look after your money.

 There are many unit trust plans available and AMBITON can structure a unit trust investment to meet your risk profile.

Tax Efficient Endowments

There are similarities between unit trust investments and endowments. Their main difference lies in the fact that the proceeds from an endowment are paid tax free to the investor after the investment term.

An endowment may therefore make sense for individuals who have a marginal tax rate of greater than 30% since proceeds are taxed at a rate of 30% inside the endowment. An endowment makes even greater sense when an investor utilizes his or her full annual tax-free interest income exemption. 

Endowments and unit trusts are both popular after-tax investment vehicles, but how can you determine which one is most appropriate for you? 

Talk to us at AMBITON and we will assist you in making the right decisions.

Why invest through Ambiton?

At Ambiton, we understand that the investment journey can be initially unnerving, but we want you to succeed. That’s why we partner with you, every step of the way, helping you to pursue your wealth management goals through structured portfolios, excellent investment management and access to expert advice.

Let’s consider your journey...

At Ambiton, your investment advisor will begin by gaining an in-depth understanding of your current profile and of your family’s specific needs and objectives. This information and shared vision for your future will enable the Ambiton advisor to tailor a wealth management approach that considers ALL of your goals — not just for your financial investments, but for your life.

Ambiton House View

Ambiton Financial Services collaborates with a variety of top Fund Managers, including the likes of Allan Gray, Marriott, Nedgroup, Coronation, Prudential, SIM and Cadiz Asset Managers. We survey, assess and monitor the very best out of the vast array of unit trusts currently available to South African clients.

Our philosophy is to structure portfolios to suit the different risk profiles of our clients and to ensure that we provide adequate exposure to the different asset classes. These include Cash, Bonds, Property, Local Equity and Foreign Equity.

The key benefit of having exposure in a variety of asset classes is to achieve negative correlation (an overall balance in market fluctuations), which helps to stabilise your investment portfolio – and give you peace of mind. A pure balanced portfolio will have 20% exposure in each asset class. A more conservative portfolio will have more exposure in Cash and Bonds, while an aggressive portfolio will have more exposure in Equity.

Ambiton’s fund selection is driven by three components:

1. A good understanding of the collaborative unit trust research
2. Expert knowledge of stock picking methodology
3. and the personal investment philosophy of each respective Asset Manager.

Ambiton only handles funds that are in the top quartile from a performance point of view and that have a track record of 5 years and longer. Of course, past performance is not necessarily an indication of future performance, but it is a fact that well-managed funds consistently outperform their peers.

Ideally, we would like to structure our portfolios in such a way that we do not have to restructure or change funds on a regular basis. We do, however, follow a rigorous process of ensuring that our funds adhere to the drivers as set out in our fund selection process. We regularly test the robustness of our portfolios and underlying funds and will adapt and change your portfolio to ensure that your investments adhere to the respective benchmarks.

“If you’re not prepared to hold onto shares for 10 years, you shouldn’t hold them for 10 minutes” – Warren Buffett

Since inception, SA’s stock exchange equity (JSE) has consistently outperformed inflation. That said, investment success is all about a long-term outlook! The equity market is volatile, so our short term investment advice (fewer than 2 years) will always be to invest in cash.

All our portfolios carry a margin of risk and it is important to understand that there will be fluctuations in investment values from time to time. However, history has proven that a well-balanced investment with a term of 5 years and longer will always outperform inflation and cash.

At Ambiton, we are confident that our structured and thoroughly researched portfolios will provide you with positive returns over any 5-year rolling period.