FPC INSIGHT October 2012 - Alexander Forbes

FPC INSIGHT
October 2012
Questions Contact the Individual Advice
Centre on 0860 100 444, IAC@aforbes.co.za or
www.alexanderforbes.co.za
An authorised financial services provider
FAIS Licence No. 31753 Co.
Reg No. 1995/012674/07
FINANCIAL PLANNING CONSULTANTS

INSIGHT | OCTOBER 2012
Introduction
Linda Sherlock l Head of Advisory, Retail, Alexander Forbes
Welcome to the October edition of
FPC Insight.
We’re now at that stage of the year where
everything is urgent and energy is low,
so we thought we’d help you with a little
motivation.
Bonga Mokoena from Alexander Forbes’s
Public Sector Division shares his views on
motivation, Alexander Forbes consultant
Gavin Mofsowitz explains what motivates
an offshore investment decision and Carl
van der Berg gives us ways to budget that
will keep us on track.
We also share interesting stats about why
saving for retirement is a must, and we
have an article with ways to keep your
world greener.
If you still need more for the final push
before the end of the year, you still have
two more editions of FPC Insight to look
forward to, and we promise to keep
bringing you informative, relevant and
insightful articles to help you on your
financial journey with us.
Until next time!
Linda
An authorised financial services provider FAIS Licence No. 31753 Co. Reg No. 1995/012674/07

INSIGHT | OCTOBER 2012
PROFILE WITH A VIEW
Bonga Mokoena | Managing Director, Public Sector Division, Alexander Forbes
Staying motivated
during tough economic
times
What motivates me about our business
is that it’s about people. What we do
impacts on real people and on their
financial well-being. That’s extremely
important to me. I apply my skills to
the best of my abilities so as to make a
positive difference in people’s lives. It’s
important to have a higher purpose to
motivate us in everything we do. It helps
to stay focussed on the bigger picture
and maintain a positive attitude and view
of things.
How tough are our
contemporary
economic times
While we are experiencing some of
the effects of what is happening in the
Eurozone and other major economies,
our resilience has been strong as a
country. We have done well so far
considering our circumstances. Our
situation is not nearly as ominous as
the PIGS (Portugal, Italy, Greece and
Spain). Our economic principles are
sound and robust. However, we have
our own economic challenges in South
Africa, such as the triple challenge of
unemployment, poverty and inequality.
Some of the recent events locally show
the effects of these underlying issues
culminating into events that do not help
the country’s credit rating. We need to
look at how we can begin to gradually
and systematically address these
challenges to create a firm foundation
and stability for our country.
I believe that our government is trying its
best to resolve these issues. However,
there is always more that can be done.
We need all stakeholders to do their best
and make a meaningful contribution.
Corporate South Africa, ourselves
included, must stay on the right track
and do what we can.
There is hope and potential for exciting
things in the near future, depending
on what contributions we each make
towards the prosperity of our country.
One low-hanging fruit is a positive
outlook. It does not cost much for all
of us to envisage a brighter future. The
more we think negatively about our
country, the greater is the likelihood that
we will internalise the negativities and
actually live them, eventually creating
a self-fulfilling prophecy of doom and
gloom. I believe that we should rather
hope for a brighter future for ourselves
and future generations.
Where to invest in
uncertain conditions
It is easier for institutional investors to
determine clear investment objectives
and draft an investment policy statement
using Regulation 28 as a guideline. For
individual investors, the decision of where
to invest would be based on what’s available
in the investment universe of both listed
and unlisted instruments. It is not always
advisable to invest offshore if exposure to
currency volatility is too great a risk based
on the amount of money available.
Stick to your long-term
strategy
It is vital never lose sight of the bigger
picture when investing, especially in
securities markets. There is a road from
where you are to where you want to be with
regards to your portfolio. It’s important not
to get caught up in and be distracted by
the side-shows. Securities and currency
markets go through cycles of volatility, so
stay focused. If your investment objectives
are still aligned to your investment policy
statement, then stay the course. If you are
going to change any part of your investment
strategy, it should be a technical move, not
a paranoid one. Any attempt to time the
markets will almost always result in net loss.
Find a long-term
financial partner
There are products available such as
exchange-traded funds and smooth or
balanced portfolios that you can choose to
invest in for the long term. As Alexander
Forbes Financial Services, we offer a
broad range of investment vehicles with a
long-term view and exposure to all types
of securities, be they shares, bonds or
money markets. But what’s most important
in my opinion is the partnership between
the individual investor and the financial
planning consultant.
Having access to someone with the
knowledge, skill and expertise advising you
about investments is most essential on any
financial journey. Even if I make moves in
my strategy, I bounce my ideas off people
I trust and know that they have the insight.
Build a formal, long-term relationship with
someone who is looking after the best
interests of not just yourself, but your family
as well.
An authorised financial services provider FAIS Licence No. 31753 Co. Reg No. 1995/012674/07

INSIGHT | OCTOBER 2012
Investment fundamentals
10 of 12 | INVESTING OFFSHORE
Gavin Mofsowitz | Consultant, Alexander Forbes
Increasing popularity
Offshore investing has once more
become a popular option for South
African investors. This is evident by
some of our local asset managers
taking advantage of the recent
changes made to Regulation 28 of the
Pension Funds Act. The amendment
now allows local asset managers to
invest up to 25% in foreign countries
with an extra 5% allocated to African
markets, as opposed to the original
15%.
We are also starting to see more local
fund managers and pension fund
trustees asking for investors’ and
board members’ votes of confidence,
to include offshore assets in funds
that did not previously have offshore
mandates. The relaxation in exchange
control measures also allows high net
worth individuals the opportunity to
invest up to R8 million (family unit)
directly in offshore assets.
Exchange control measures are
controls that the government puts
on how much foreign currency you
can invest in. Currently, individuals
can invest up to R4 million each
per year offshore, with another
R1 million discretionary allowance
per person.
Looking back
Before we get carried away, it’s
important to turn back our investment
clocks and re-visit the past. Let’s look
back at the last decade when offshore
investing promised to deliver superior
inflation-beating returns, similar to
the Proteas winning the Cricket World
Cup. In both instances many of us
were left rather disappointed. Local
investors chasing offshore returns
in the form of developed market
shares would have been far better off
investing locally. Over the last decade,
local shares delivered double digit
returns as compared to the dismal
performance of offshore shares.
I can’t explain why we didn’t win
the World Cup. What I do know
is what behavioural finance tells
us – that investors tend to act
irrationally when faced with difficult
investment decisions. Investors
must be encouraged not to be driven
by fear or greed, which invariably
lead to panic. We saw the effects of
this in 2001 when the rand value
dropped sharply after a huge sell-off
of our currency. Investors moved vast
amounts of assets to offshore markets
and suffered heavy losses when the
currency appreciated again.
Talking about currency
Appreciation = stronger rand
Depreciation = weaker rand
What should drive an
offshore investment
decision
• Asset classes
The underlying asset class (cash,
bonds, property or shares) and
the expectation around future
earnings of a company are important
considerations to take into account.
The global financial crisis and turmoil
surrounding the US credit market
proved that even the ‘darlings of
Wall Street’ are not immune to
severe declines in value. In some
instances they even suffered total
failure resulting in bankruptcy. The
US was however not alone, as this
turmoil spread to other global and
developed markets. Both local and
offshore markets are slowly showing
signs of a steady recovery. The All
Share Index (ALSI) is also testing
new record highs. However, we need
to understand that a developing
economy like that of South Africa is
not immune to global market shocks
and currency instability. These factors
can have severe consequences to our
offshore investment decisions if not
managed properly.

INSIGHT
The All Share Index (ALSI) measures the
general price movement of shares listed on
the Johannesburg Stock Exchange (JSE).
Current account deficit happens when a
country’s total imports is greater than its
export. This makes a country a debtor to
the rest of the world.
The MSCI World Index is a market index of
over 6 000 world shares. It is maintained
by MSCI Inc. and is often used as a global
benchmark.
• Currency
This brings me to the second
important factor that would affect
an offshore investment decision –
currency. Current account deficits
(6.4% of GDP), the widening of our
trade account (R12.2bn), labour
and social unrest and the negative
perception around our economy all
contribute to an unstable and very
unpredictable rand. Analysts may
be able to predict where corporate
earnings are heading, but to trust
an economist with a currency
prediction would almost always lead
to a disaster of some sort. Over the
course of 2011, if a South African
investor invested in the USD World
Index (MSCI), the corresponding
offshore asset class in the form of
shares would have returned a loss of
around 10% (excluding dividends).
The rand however depreciated
significantly against major
currencies. The relative depreciation
of the rand (about 20%) would have
contributed positively to overall
performance. This simplistic example
highlights the potential effects a
volatile currency like the rand can
have on your offshore investment.
• Intention
This subtle yet extremely important
aspect of any investment decision
is of great importance when
considering investing offshore. As an
example, for an investor planning on
living abroad, it would make sense
to place a lot of money offshore over
a period of time to benefit from the
potential advantages of rand average
smoothing. This way the investor
won’t be dependent on the cycle of
the market at any given time because
the rand value changes should
average out. In this example, the
intention is definite and the goal is
well defined from the start. We often
tend to make irrational investment
decisions when we deviate from our
investment goals. Be aware of this
and try not to get carried away by the
shorter-term noise like swings in the
rand/dollar exchange rate.
Building an effective
offshore strategy
An offshore component is essential in
a blended portfolio. A well-diversified
portfolio, with quality shares and solid
fund manager credentials, remains key
to any long-term investment strategy.
How much you choose to invest
offshore will depend on your investment
objectives and intentions.
As value pockets start developing in
offshore markets like the US and UK
for example, we’re starting to see asset
managers increasing offshore exposure
in local flexible balanced funds. In
some cases they are investing as much
as 80% or more (using Regulation 28
guidelines) in overseas assets including
shares. These types of funds are an
effective way to achieve offshore
exposure.
A decision to invest offshore needs to be
carefully planned and executed through
an ongoing working relationship with
your financial adviser. Make sure you
clearly understand the various products
available to gain some form of offshore
diversification. You should also find out
about any fees, commissions and tax
implications that these structures can
attract. Know that investing offshore
should form part of a long-term strategy.
History shows that offshore investments
are more stable over a longer period of
time.
Offshore investing has become easier
as exchange control measures are
being eased and the global economy
is becoming more integrated. For a
sustainable and effective offshore
investment strategy, make sure you
get thorough investment advice for an
accredited financial adviser. Beware of
product pushers and advisers punting
offshore structured products. These
structures can be very complex and
can attract high costs. In terms of
holistic financial advice, your adviser
should analyse your specific investment
objectives and your overall asset base
before introducing offshore exposure.
An authorised financial services provider FAIS Licence No. 31753 Co. Reg No. 1995/012674/07

INSIGHT | OCTOBER 2012
BUDGET LIKE YOU MEAN IT
Carl van der Berg | Financial Planning Consultant, Alexander Forbes
From a young age we are told that
we should draw up a budget. I think
this is where the hatred begins. I
remember once at school having
to draw up a budget in a life skills
class. This was tough to do when
my pocket money was only R20 a
month. Many years later I still sit
with the problem of too little income
for the expenses I have and a
budget that is hard to manage.
A budget should be a simple tool
to help you manage how you spend
your income. For far too many of us,
it’s a word that makes us feel guilty.
We’ve all made at least one mistake
with money and how we spend it.
My advice is to drop the guilt and
rather learn from our errors. Here
are a few examples of mistakes that
are as easy to correct as they are to
make.
Common budgeting
mistakes
• Enjoying making the budget
more
than sticking to it
In my student days, I would get
so excited about making a study
timetable. I think I enjoyed it so
much because it gave me the
chance to not study and still
feel productive. In the same way
many of us may enjoy making
budgets more than sticking to
them. This is a mistake that
costs us the most because of
what we can gain if we just try.
• Being unrealistic
Sometimes when my alarm clock
goes off in the morning, I wonder
about how long certain things
will take me to do. I play a game
of mental maths that sounds
something like this: “Shower,
5 minutes... actually 3 minutes is
enough. Eat I don’t have to eat.
Yes! I can sleep for another 10
minutes!” I do something similar
when I draw up a budget.
I think that certain things won’t
cost as much and allocate too
little money to it. If you allocate
R500 to eating out in a month
– by the first two weeks you
might have blown this amount,
and then lose interest in the
budget altogether. Rather work
backwards. Track your spending,
see how much you actually
spend on – for example – eating
out, then form a realistic budget
of what you can and want to
spend every month. If you’re over
budget by week 2, work out a
way to juggle your expenses, or
learn to cut down – quickly.
• Making it too complicated
This is also a reason many of
us don’t draw up budgets in the
first place – we think it needs to
be something complicated.
It really doesn’t.

INSIGHT | OCTOBER 2012
As a financial planner, my budget
still has a simple structure that you
could use for your own budget:
• Essentials
This includes the basics such
as a bond repayments or rent,
car payments, petrol, food,
bank charges, life cover and
disability insurance.
• Communication
It’s important to stay
connected, and many of us
might spend quite a lot of
money on phone bills, ADSL,
data costs for tablets, 3G
contracts and the like.
• Luxury
Under this heading I have:
domestic salary, DSTV, gym
membership, golf membership,
spending money and similar
expenses.
• Investments
I make sure that I save at
least 20% of my salary into
a retirement annuity fund,
unit trusts, a share account,
investment property – whatever.
If you are not sure of where
and how much you should be
saving then make some time to
see your financial adviser. Make
sure you can work out a good
way to put some money aside
for the future, your children’s
education, a holiday or one of
life’s unexpected emergencies.
If you’re an accountant or an
actuary and want to make an Excel
spreadsheet with multi-coloured
graphs, pages and formulas – feel
free. But I believe that the simpler
your budget, the better your chance of
sticking to it.
A few tips
• “There’s an app for that”
In our modern era of smart phones,
there are many free or low-cost apps
you can download to help you to
keep track of how you are spending
your money. You can also log on to
AF Online anytime
(www.afonline.co.za) for helpful
budgeting tools and information.
• Pick a card
It can be a hassle to remember how
much you have spent on certain
expenses. You could try transferring
your budgeted limit onto certain
cards – for example – one card
for groceries, one for petrol and
another for entertainment. That
way you can integrate benefits from
various service providers such as
points earned on certain cards used
at certain shops. Some providers
also give benefits on petrol or
entertainment (like movies) so shop
around. It’s easier to keep track of
your spending this way than keeping
slips.
The essence of
budgeting –
do it your way
There really is no prescribed formula.
There are many ways to draw up a
budget. What’s important is that you
take control of your spending and live
within your means.
I hope that the next time you hear the
word ‘budget’, you don’t feel guilty, but
smile knowing that you’re on track, or
finally getting there – at your own pace.
An authorised financial services provider FAIS Licence No. 31753 Co. Reg No. 1995/012674/07

INSIGHT | OCTOBER 2012
5 QUESTIONS TO ASK BEFORE YOU RETIRE
If you want the right answers, it’s best to ask the right questions.
Here are some thought-stirrers to get you started on the road to a
rewarding retirement.
How much will I need
Everyone’s situation is different. You
might have a home that you’ve already
paid off, or kids that you’re still
supporting financially. The aim is to
have enough money that you can invest
to get out a monthly pension as close
as possible to your final salary. This
way you can keep your lifestyle and
even go after some of your retirement
dreams. Speak to a financial planner
to find a final number and ways to get
there. There are also great retirement
projection tools on AF Online
(www.afonline.co.za) that can help you
figure out and stick to your retirement
saving goal.
When should I retire
Legal retirement age in South Africa
is 55 but most retirement fund rules
refer to 65 as their legal retirement
age. Depending on how much you need
and how much you have saved up, you
might want to consider retiring later
or earlier. Many people prefer working
part-time, at least to adjust to the new
way of life and to supplement their
retirement savings. Speak to a financial
planner before you make your choice to
make sure you are making the most of
your financial opportunities.
Should I keep working
Retirement is a great time to enjoy
hobbies and interests. If you can afford
to, you could turn one of those interests
into income. If you would like to take
over a small business in a beautiful city,
this could be the best time to do it.
There are risks involved, so make sure
you consider those and get appropriate
advice before you begin.
What kind of insurance
do I need
• Health
Medical expenses are one item
on your monthly budget that will
probably cost more as you get older.
Think about the medical aid plan
you will need and include those
costs in your final retirement saving
goal.
• Life
The amount of life cover you’ll need
will probably change when you
retire, depending on your individual
circumstances. Speak to a financial
planner to find out how much life
cover you actually need so you’re not
over, or under-spending. AF Online
also has tools to help you with this
aspect of your financial planning.
• Disability
Once you’re no longer working,
you’re not relying on your salary so
you won’t need disability insurance.
Make sure you plan for and only
keep the insurance policies you
really need.
What else can I use for
my retirement
You might have a home, a holiday
home, a car or a few other assets you
can use to add to your retirement
savings. For example, if you no longer
need your three-bedroom house, you
can sell it, downgrade and add the profit
to your retirement savings. Retirement
is an ideal time to use your hard-earned
wisdom and get creative about your
options.
An authorised financial services provider FAIS Licence No. 31753 Co. Reg No. 1995/012674/07

Alexander Forbes Financial Planning
Consultants (Proprietary) Limited
A division of Alexander Forbes Financial Services (Pty) Ltd.
Reg No: 1995/012764/07 | FAIS License No: 31753
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PO Box 786055, Sandton, 2146 | Tel: +27 11 269 0000 | Fax: +27 11 269 1111
MARKET AND ECONOMIC COMMENT
OCTOBER 2012
global
local
Risk assets pulled back in October after a strong third-quarter rally in
anticipation of more stimulus measures from the European Central Bank
(ECB) and the US Federal Reserve (Fed). The MSCI World and Emerging
Market indices were down 0.6% in the month, but there was mixed
performance across the major regions. Equity markets in Japan and the
US pulled back in October, with disappointing company earnings weighing
down on US stocks. European equities, on the other hand, ended the
month on a positive footing, with bond yields of peripheral economies
continuing to fall.
Economic data was also mixed, with some improvement seen in the US,
while Europe continued to deteriorate. Eurozone GDP growth turned
negative in the second quarter, tipping the region into much expected
recession. Solid growth in Germany and France had previously helped
cushion the region from the recessionary effects of peripheral economies.
However, economic activity in these core countries slowed significantly.
While the ECB’s bond-buying programme has helped to ease borrowing
costs of highly indebted countries, it does not address the deeprooted
structural issues in the region. Economic conditions continue to
deteriorate, while debt levels remain unsustainably high.
US third-quarter GDP growth improved from the previous period, while
house prices continued to stabilise. Improved US economic activity
indicates a modest recovery is underway. However, the unfolding crisis
in Europe and the looming fiscal cliff (amounting to $600 billion of
tax increases and spending cuts due to take effect at the beginning of
2013) pose a significant downside risk to the recovery. The re-election
of President Obama has put the spotlight back onto the fiscal position.
If policymakers don’t take action to prevent these automatic fiscal
adjustments, it is estimated that this could result in a fiscal withdrawal of
over 4% of GDP, which would trigger a recession. Congress remains split,
therefore an agreement on how to address the fiscal cliff is not expected
to be easily reached – which may result in uncertainty and weigh down on
investor confidence.
The JSE/FTSE ALSI continued to set record highs, jumping above
37 000 in October. Local stocks were up 4.2% in rand terms, with
Resources leading the rally. Resources were up 6.2%, Industrials gained
4.1%, and Financials rose 1.5%. In dollar terms, local shares were
down 1.2%, underperforming emerging-market equities. The rand lost
significant ground in October ahead of the Medium Term Budget on
fears that the outcome might result in a further credit-rating downgrade.
The rand weakened to just under R9.00/$ at the beginning of October
from around R8.50/$ at end- September. It retreated somewhat to
R8.60/$ and closed the month at R8.67/$. The rand is expected to
remain vulnerable in the short term, pressured by continuing labour
unrest as well as policy uncertainty ahead of the ANC’s elective
conference in December. The deterioration in the current account also
makes the currency vulnerable. The vulnerability of the rand poses an
upside risk to the inflation outlook. Inflationary pressures have already
started to build, pushed up by higher food and energy costs. Consumer
inflation rose to 5.5% year on year (y/y) in September after drifting lower
in the second quarter to 4.9% in July. Further weakness in the rand
could see inflation breaching the 6% upper target in 2013.
Finance Minister Pravin Gordhan delivered a reasonable Medium Term
budget, which allayed earlier fears of policy changes and a further
credit-rating downgrade. The Budget contained nothing in the way of
new policy measures, but instead reaffirmed government’s commitment
to prudent fiscal management in a challenging economic environment.
Growth forecasts were revised lower to 2.5% and 3% in 2012 and
2013 respectively (from 2.7% and 3.6% previously). This saw an
upward revision in the budget deficit to 4.8% of GDP in the 2012/2013
financial year from 4.6% previously. Government debt is at around 40%
of GDP, which is high by emerging-market standards, but much lower
than debt levels in developed economies. While this gives the country
some investment advantage relative to developed economies, growing
concerns about the domestic political environment pose a risk to the
country’s investment fundamentals.
y/y % growth
6
4
2
0
-2
-4
-6
Jun-98
Feb-99
Oct-99
Jun-00
Source: I-Net Bridge
Feb-01
Oct-01
Eurozone GDP Growth
Jun-02
Feb-03
Oct-03
Jun-04
Feb-05
Oct-05
Jun-06
Feb-07
Oct-07
Jun-08
Feb-09
Oct-09
Jun-10
Feb-11
Oct-11
Jun-12
| 1 |
14
12
10
8
6
4
2
0
Consumer Inflaiton vs Prime Rate
Feb-00
Oct-00
Jun-01
Feb-02
Oct-02
Jun-03
Feb-04
Oct-04
Jun-05
Feb-06
Oct-06
Jun-07
Feb-08
Oct-08
Jun-09
Feb-10
Oct-10
Jun-11
Consumer Price Inflation (%) Prime Rate (%, rhs)
Source: I-Net Bridge
Feb-12
Oct-12
18
17
16
15
14
13
12
11
10
9
8

global asset-class performance
October 2012 Month Q3 2012 Q2 2012 YTD 1 Year 3 Year (p.a.) 5 Year (p.a.)
Equities ($)
MSCI World -0.65% 6.84% -4.86% 11.72% 12.82% 8.48% -2.30%
USA -1.85% 6.35% -2.75% 12.59% 14.29% 13.21% 0.36%
UK 0.65% 7.15% -4.13% 7.58% 11.23% 7.64% -4.21%
Europe 1.47% 8.76% -7.05% 10.81% 13.67% 3.57% -5.69%
Japan -1.87% -0.77% -7.29% 11.35% 0.52% -0.18% -6.65%
Pacific Basin ex Japan 1.81% 11.03% -4.86% 11.31% 19.70% 8.60% -0.67%
MSCI Emerging -0.60% 7.89% -8.77% 14.13% 11.66% 5.70% -3.17%
South Africa -1.15% 6.31% -5.24% 11.51% 11.05% 11.36% 0.61%
Global Bonds -0.63% 2.99% 0.92% -0.51% 2.76% 4.04% 5.97%
Source: Data Stream
local asset-class performance
October 2012 Month Q3 2012 Q2 2012 YTD 1 Year 3 Year (p.a.) 5 Year (p.a.)
Equities 4.22% 7.26% 0.98% 19.65% 18.59% 15.35% 6.52%
Bonds -0.60% 5.00% 5.19% 12.39% 13.22% 12.51% 10.09%
Cash STeFI Overnight 0.39% 1.21% 1.28% 4.29% 5.19% 5.66% 7.42%
Inflation-linked Bonds 1.37% 8.46% 1.54% 14.66% 19.94% 12.91% 12.64%
Listed Property -4.08% 10.98% 10.31% 26.84% 28.30% 22.23% 13.19%
Source: I-Net Bridge
dominant themes
October 2012 Month Q3 2012 Q2 2012 YTD 1 Year 3 Year (p.a.) 5 Year (p.a.)
Large Caps 5.03% 7.62% 0.56% 19.47% 17.41% 14.83% 5.87%
Mid Caps 0.39% 5.38% 3.19% 20.69% 24.69% 18.48% 11.41%
Small Caps -0.02% 6.23% 1.81% 19.39% 25.15% 16.06% 4.45%
Resources 6.18% 2.92% -3.56% 1.94% -1.64% 5.13% -1.06%
Financials 1.53% 6.52% 4.59% 27.55% 31.05% 17.50% 6.15%
Industrials 4.15% 10.48% 2.60% 30.43% 30.08% 23.25% 13.77%
Source: I-Net Bridge
dominant themes
October 2012 Month Q3 2012 Q2 2012 YTD 1 Year 3 Year (p.a.) 5 Year (p.a.)
All Share Index 4.22% 7.26% 0.98% 19.65% 18.59% 15.35% 6.52%
SWIX 3.29% 7.26% 1.73% 21.14% 21.81% 16.78% 7.69%
Oil & Gas 2.55% 8.73% -6.13% 0.59% 8.33% 12.01% 6.08%
Basic Materials 6.65% 1.83% -2.89% 3.38% -1.37% 4.97% -1.73%
Consumer Goods 5.54% 10.35% 1.95% 31.64% 25.86% 26.55% 19.44%
Construction 1.24% -2.13% -11.34% 6.43% 8.12% -6.94% -11.30%
Health 6.92% 9.19% 10.87% 48.22% 49.84% 29.47% 22.06%
Consumer Services 5.58% 13.38% 5.62% 41.65% 44.14% 31.32% 20.50%
Telecommunications -1.09% 14.43% 1.25% 14.43% 18.05% 15.03% 6.85%
Technology -0.28% 12.98% 5.60% 31.33% 40.56% 31.81% 17.25%
Banks 2.03% 1.85% 2.73% 23.41% 26.29% 15.65% 7.29%
Source: I-Net Bridge
Prepared by the Market and Economic Research Team
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| 2 |

INSIGHT | OCTOBER 2012
GREEN IS THE NEW BLACK
Adopting an eco-friendly lifestyle
doesn’t need to turn your life
upside down or cost money. There
are small things you can do every
day to protect the environment and
make sure future generations have a
healthy planet to look forward to.
Meat Free Mondays
Started in 2000 by Paul McCartney,
the Meat Free Monday campaign
encourages you to give up meat
for one day a week to reduce your
environmental impact. Local website
Capetonians Against Animal Abuse
(CA3) explains the impact: “If all
Americans did not eat meat for
one day a week, they would save
99.6 megatons of greenhouse gas
emissions. That’s equivalent to
46 million return flights from New
York to Los Angeles.”
Squeaky clean
When life gives you lemons, use
them to scrub. Lemons are a great
natural cleaner and are especially
effective when mixed with salt. You
could also choose green cleaning
supplies instead of chemical
cleaners. Natural supplies don’t
release harmful chemicals or toxins
into the air.
Unplugged
Some estimates suggest that as
much as 40% of our monthly
electricity bill goes towards powering
home appliances that are turned off.
While every home is different, it’s
safe to say that you can save energy
and even a few rands by unplugging
appliances you aren’t using. An easy
way to do this and make it part of
your daily routine, is to switch off
your plugs at the electricity board
when you leave your house in the
mornings and switch them back on
when you return.
Slow the flow
Fix any leaking bathroom or kitchen
taps. Another way to save water is
to switch to low-pressure shower
heads. You’ll save the planet and
money on your water bill every
month.
Sources:
www.meatfreemondays.com
www.leaderpost.com
www.caaa.co.za/meat-free-mondays
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