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5 Innovative Finance Products Launched

SmartRand

Developed by financial planning firm Galileo Capital, SmartRand is one of South Africa’s first ‘robo-advisers’. The online service gives anyone, with any amount of money to invest, access to advice and the ability to invest securely through its platform.

SmartRand takes users through a detailed questionnaire that assesses their risk profile and their investment goals before recommending a suitable product for their needs. It currently uses a selection of just five passive fund choices to keep things simple and the costs low.

Just Retirement

With the reform of the pension fund industry a government priority, Just Retirement’s ‘enhanced annuities’ offer potential benefits to anyone with a below average life expectancy. Since the likes of smokers or those with medical conditions have different risk profiles, enhanced annuities can potentially increase their retirement income.

Based on a telephonic questionnaire, Just Retirement assesses an individual’s risk profile and offers them an annuity rate based on that risk. It therefore moves away from the one-size-fits-all approach that is currently the norm.

RMB Krugerrand Custodial Certificates

A first in the world, Krugerrand Custodial Certificates give investors to own Krugerrands while enjoying the liquidity of an exchange. The certificates offer a low cost way to invest and store gold, with the option for investors to take delivery of the physical product if they prefer.

Investment Solutions stokvel funds

Members of stokvels in South Africa currently put between R45 and R50 billion into these organisations every year. However, the systems employed by most financial services companies simply don’t recognise these structures or provide ways for them to use formal savings methods.

Investment Solutions has therefore designed a targeted product offering that recognises stokvels as entities and provides special application forms for their FICA registration. This gives stokvels the opportunity to invest in unit trust-type funds to earn better returns for their members.

Absa Stockbrokers ETF only account

As passive products grow in popularity in South Africa, financial services providers are increasingly looking at ways to make investing in them easier and cheaper. The ETF only account from Absa Stockbrokers does exactly this.

For a brokerage fee of 0.20% per trade and a minimum fee of R20, the platform allows South Africans to invest in any locally-listed ETF at a reduced fee. Particularly for large lump sum investments, this is a very competitive rate.