Bulls and Bears and everything to do with Investments

on . Posted in International Investments

International share investments:

You now have access to international markets via your account with PSG Konsult. You are now able to invest in “real-time” on 26 major international stock exchanges with our online international trading desk.

Invest offshore on the New York, London or any other major international Stock Exchange using your own foreign investment allowance or through an Asset Swop facility provided by PSG. This gives you complete control over a unique offshore portfolio with two distinct options.

  •   You can use your own funds transferred with Reserve Bank approval or
  •   You can use local Rand to invest offshore through an Asset Swop facility afforded you by PSG

Easy access to international markets now rests in your hands, allowing you to construct a portfolio of shares or Exchange Traded Funds (ETFs) to capitalize on offshore investment opportunities.

What are the benefits of the international offering?

  •     It provides for the further diversification of your portfolio both in selection of stocks and risk
  •     You may utilize your R4 million investment allowance or use the PSG Asset Swop Capacity
  •     You can place you orders via our office or via the PSG Online website and trade in real-time as international markets open and close around the world.
  •     View one multi-currency statement for your portfolio of foreign stocks and ETFs, despite being listed on different markets
  •     You have the option of having us manage and advise with the    assistance of expert analysts

What are the costs?

A brokerage fee of 1% which is subject to minimums applies to all offshore trades. All other standard administrative costs apply.

Minimum offshore Investment requirement is GBP 5,000.00 as an initial investment for a direct offshore portfolio or R100 000.00 for an asset swop portfolio.

Who are our international associates?

ADMISI is a wholly owned subsidiary of Archer Daniels Midland International Ltd in the UK, a Fortune 500 company, who provides PSG with international trading and clearing facilities. ADMISI’s exchange memberships include the London Stock Exchange, Euronext LIFFE, EUREX, ICE, LME as well as the London Clearing House. ADMISI is regulated by the Financial Services Authority. These memberships, together with their stringent risk management procedures, contribute to providing a safe and neutral home for you our clients. ADMISI do not trade in “OTC” (over the counter) products or proprietary trade our own accounts. Client money is held in segregated accounts with JP Morgan, our corporate bank who also acts as our non-UK stock custodian.

Education Corner: What is meant by the Dividend Yield?

The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:

Dividend Yield = Annual Dividend Per Share/ Price Per Share

Dividend yield is a way to measure how much cash flow you are getting from each Rand invested in an equity position – in other words, how much “bang for your buck” you are getting from dividends. Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable dividend yields.

To better explain the concept, refer to this dividend yield example: If two companies both pay annual dividends of R1 per share, but ABC company’s stock is trading at R20 while XYZ company’s stock is trading at R40, then ABC has a dividend yield of 5% while XYZ is only yielding 2,5%. Thus, assuming all other factors are equivalent, an investor looking to supplement his or her income would likely prefer ABC’s stock over that of XYZ.