NEWS AND INSIGHTS

BEWARE THE BRAKES, APPLAUD THE DRIVERS

In this, our last newsletter of an eyeopening and eventful year, we sign off from 2017 by paying tribute to the engine room of any economy: entrepreneurs.

The father of modern economics, Adam Smith, posited the view that entrepreneurship and innovation would ultimately lead to everincreasing wealth. This view has been echoed over the decades since Smith courtesy of surveys, commentaries and cold, hard facts, with the World Economic Forum identifying entrepreneurship as one of the drivers of sustainable growth economies.

The world, and South Africa, celebrated entrepreneurship week in November. So we too have chosen to focus on this economic driver by looking not only at the support on offer to business owners via FNB Business and through the FirstRand family, but also by shining a light on the young entrepreneurs of the future and delving into ways in which to spur on children's instinctive entrepreneurial spirit.

In the context of our struggling local economy this conversation is vital but, as much as planning and positioning documents like the National Development Plan give lip service to business development, much is currently in a state of stalemate as the country holds its breath ahead of the ANC Elective Conference in December. We look at the possible economic scenarios which might play out based on the outcome of the conference.

A trend we have observed in 2017, and the continuation of which hinges of the outcome in December, is emigration. At this juncture, we would like to remind clients looking to relocate to other countries to discuss the process and financial implications with RMB Private Bank. For those simply looking to externalise more wealth, there are a few avenues on the table, from taking advantage of the R1 million annual Single Discretionary Allowance, the R10 million annual Foreign Investment Allowance or the more regulated over R10 million options. In all instances, we can provide further guidance and, where necessary, assist you via Ashburton Investments and FNB Securities.

Finally, with the festive season upon us, we take the opportunity to run through some essential security tips and insights. Our message is simple: Enjoy a hard-earned rest and recharge your batteries, but remain ever vigilant in both the real and online worlds.

Best wishes to you and yours this holiday season and we look forward to being of service to you in 2018.

BELL RINGS ON A BRUISING YEAR

We billed 2008 a 'rollercoaster year'. And then, for the following nine years we used the same description, culminating in 2017, another 'rollercoaster year' filled with uncertainty and volatility. Expect 2018 to deliver more of the same for South Africans, in the face of political and policy concerns, sluggish economic growth, expected credit rating downgrades and steadfast social inequality. But rest assured there are still positives in our country, and our economy, which we can and should be celebrating.

Bell rings on a bruising new year

Every year since 2008 commentators have looked back and described the year that was as a 'rollercoaster' ride filled with uncertainty. Egged on by Nenegate in December 2016, 2017 was billed to deliver more uncertainty to South Africa. And it certainty delivered.

The beginning of the year set the tone for a period during which South Africa - like the rest of the world - was impacted by external economic factors, as well as by internal political and policy concerns. The upswing in global growth - from which South Africa usually benefits - was quickly eroded by the unexpected cabinet reshuffle in March, which was followed by an earlier-than-expected credit ratings downgrade by Standard & Poor's. Moody's and Fitch followed shortly thereafter. The economy entered a technical recession and, as I write, confidence remains weak with no signs of recovery, unless we see aggressive and forward-thinking policy amendments coming on stream rapidly. Furthermore, government finances have disappointed and it appears that fiscal consolidation has been placed on the back burner. This has increased the risk of another sovereign downgrade, as the country witnessed in late-November when Standard & Poor's again led the pack by downgrading South Africa's local debt. This time, Moody's and Fitch stood firm on their assessments.

But it's not all doom and gloom. There are green shoots worth noting on the economic, social and political front; all of which come together to paint a more positive picture of the future for our somewhat tender country.

We are currently living through a time during which previously hidden issues are being aired in public, from allegations of state capture, to the condition of our state-owned companies. This rising level of transparency is heartening, both from a civil society and a political perspective. In particular, we have seen a rising involvement in 2017 of business both taking a stand and being compelled to walk the talk with regards to compliance, putting the spotlight - quite rightly - on ethical practices, responsibility and integrity. In this context, the fact that people can voice their objections openly speaks to the strength of our Constitution and judiciary, as well as the country's strong culture of civil action. This trend will certainly continue in 2018 and beyond.

From an economic perspective, South Africa has just weathered a significant drought to produce what is likely to be the largest harvest of grain in 36 years. Broadly, and most fortunately, the economic underperformance experienced over 2017 has been cushioned by an upswing in global growth, commodity prices, and a search for yield. And, despite unsettling events at home, the rand has remained resilient. Inflation continues to moderate and this has allowed the central bank to ease interest rates. Our external balances continued to improve over the year, the current account deficit for the first six months of the year is -2.2% of GDP, notably better than the -3.3% recorded for 2016.

These positives highlight the fact that, fundamentally, South Africa remains an attractive investment destination. Yet we have the threat of additional ratings downgrades hanging over our heads. Why? Well, these pending downgrades are a function of weak economic growth and the lack of implementation of growth enhancing policies. With that said, there are low hanging fruits which could boost confidence in the short term but require follow-through in the medium to long term. In short, it is possible to turn the situation around. In the absence of action, however, South Africa will unfortunately find itself not only out the World Government Bond Index, but facing multiple downgrades.

Much hinges on the outcome of December's ANC Elective Conference and the certainty or uncertainty which comes from that key vote. South Africa should know the outcome by 20 December 2017; this will give us guidance as to which policies will be adopted by the ANC and who will be leading the party into the 2019 elections.

Uncertainty and the rollercoaster year to come is, of course, also opportunities to examine how we do things, how we innovate and how we improve our service offering. Both from a strategic perspective and from a technological vantage point, we will continue to build on our digital, efficiency and client-centric focus of 2017. This trend will continue and accelerate in 2018 and beyond as we strive to constantly improve the way you transact, lend, invest and insure.

Like 2017, the next 12 months will raise challenges and bring up uncertainties. At RMB Private Bank, we approach years like this with the conviction that how we steer ourselves through these events will set us up well for the future. In the worlds of the great statesman Winston Churchill: "Difficulties mastered are opportunities won."

TO MANAGING UNCERTAINTY

Most countries around the world are currently living under a pervasive and globally relevant trend: Uncertainty. South Africa is no different. Amidst economic woes and social inequalities, the country is also staring down uncertainty ahead of the ANC Elective Conference in December. We outline three possible economic paths that may lie ahead for the South African economy.

The hors d'oeuvre of the ANC Elective Conference

Most countries around the world are currently living under a pervasive and globally relevant trend: Uncertainty. "The world has become a lot more uncertain over the last five or six years and this is not just South African politics," admits RMB Private Bank's Chantal Marx, Head of Research at FNB Securities.

Marx cites the recent Kenyan elections, Brexit in the UK, the leadership uncertainty in China as Xi Jinping's tenure comes to an end, as well as geo-political tensions between North Korea and the United States as examples. "Globally there is a lot going on at a moment and, locally, the ANC Elective Conference in December is just our version of this same uncertainty," she says.

Much of this South African uncertainty springs from who the ANC will elect as its next leader and, most likely, the next president of the country. While much speculation about the ultimate outcome is engulfing the country currently, what is crystal clear is that whomever the victor, they will be faced with a strong need to prioritise economic growth if South Africa is to lift out of the stagnation.

"While political uncertainty remains extremely high, the adoption of appropriate polices will help lift sentiment and economic growth," says Mamello Matikinca, Chief Economist for FNB. RMB Private Bank is, therefore, focusing less on the candidates and more on the macroeconomic policy and institutional regimes that could shape the macroeconomic outlook of the country. They are:

Positive structural change

In this scenario, says Matikinca, South Africa would experience domestic structural change that lifts productivity as well as business and consumer confidence meaningfully. Measures which need to be adopted to achieve this could include: ensuring political certainty against a market-friendly policy backdrop; privatisation of state-owned enterprises; increased infrastructure spending and an improvement in education outcomes, health delivery and a clamp down on corruption. In this regime, South Africa experiences strong economic growth, lower inflation and repo rate, and South Africa will eventually earn back its investment grade status.

Reformist stalemate

This stalemate outcome, explains Matikinca, would see a high degree of policy uncertainty being maintained and structural reform stagnation continuing. Business and consumer confidence would not improve if such a scenario were to play out. In fact, trend growth would remain weak, resulting in further pressure on government finances. South Africa would lose its investment grade status and sovereign ratings would remain under downward pressure. However, the independence of South Africa's institutions is seen as remaining relatively strong.

Stagflation

Populist policies that lead to more government intervention in the economy and a shift from fiscal prudence to fiscal carelessness would be adopted under such a scenario. The shift to popular spending would lead to increased domestic demand which would be met by low production capacity. Consequently, inflation would lift notably and monetary policy would rise in response to higher inflation. Confidence and investment activity would decline yet further. In this situation, South Africa would experience a protracted recession from 2020 onwards which would translate into the further deterioration of government finances and multiple downgrades, says Matikinca.

In light of the above, it is clear that South Africa has everything to play for as it heads towards the December ANC Elective Conference.

What does this mean for your investments?

Irrespective of the outcome of the ANC Elective Conference in December, diversification will continue to be the dominant theme in the year ahead. This ensures that portfolio risk is reduced, while taking advantage of the growth opportunities inherent in a diverse investment portfolio. In this way clients will be well positioned to maximise their risk-adjusted returns. Based on the above scenarios, our base case of the most likely outcome is the Reformist Stalemate which, we believe, had already been largely priced into the asset class valuations. So, our weightings are not too far from their respective benchmarks.

More specifically:

Bond yields have already more than priced in junk status. We are close to a neutral positioning here.
Equity positions (neutral weighting) are very well diversified. There is a natural rand hedge bias with 65% of the portfolio likely to benefit from a weakening rand. Of this 57% reflects positions where assets, costs and revenues are derived from offshore, 6% reflect positions where costs are randbased, but where revenues flow from offshore, and 2% where positions reflect an element of import substitution. Exposure to South African economic sensitives, where revenues and costs are South Africa-based, make up 28% of the portfolio, while a further 8% of the portfolio reflects positions with an import cost component but where revenues are South Africa based.
South African listed property reflects a slight underweight position given the very challenging local economic outlook. There is, however, a significant rand hedge component with 41% of the portfolio exposed to offshore assets.
Offshore exposures also reflect a neutral stance right now, ahead of the December conference. South African Cash exposures are slightly elevated to ensure that we have some powder dry to invest on any meaningful marketmoving outcomes.

LOOKING OFFSHORE?

RMB Private Bank's simple and effective processes and systems for building your wealth also extends to sending your money offshore. As a South African resident you have the broad ability to invest offshore and, with RMB Private Bank's innovative solutions working for you, your investment strategy is not restricted from a regulatory perspective, thereby giving you the freedom to choose how and where you would like to invest your wealth.

Effective offshore investing made simple

With talk of looming downgrades and amidst economic and political uncertainty, many South Africans are looking to externalise their wealth. Fortunately, explains Chantal Robertson Head of Global Wealth Solutions Wealth and Investments, RMB Private Bank's simple and effective processes and systems for building your wealth also extends to sending your money offshore.

"South African residents have the broad ability to invest offshore and, as a RMB Private Bank client, you have various options to diversify and access international markets. South African resident individuals of 18 years and older are entitled to:

Single Discretionary Allowance of R1 million: This may be used for a range of cross-border transactions, including travel, gifting and foreign investment. No tax clearance is required should you wish to avail yourself of all or part of your Single Discretionary Allowance for foreign investment.
Foreign Investment Allowance of R10 million: These funds can be used to invest in any foreign asset and you have the freedom to structure such investments using an offshore trust and/or company. This allowance is subject to tax clearance, but fortunately RMB Private Bank's Wealth and Investments can assist you with the tax clearance application process.

Foreign investment in excess of R10 million: Not many people are aware that an individual may apply to take out more than the allowances mentioned above. This application requires tax clearance, a full South African Revenue Service audit as well as approval from the South African Reserve Bank. Certain conditions are imposed on how and what you invest in offshore.

With RMB Private Bank's innovative solutions your investment strategy can be flexible whilst remaining within the regulatory framework, thereby giving you the freedom to choose how and where you would like to invest your wealth.

Plus, by using the RMB Private Bank App or RMB Private Bank's online banking service (just log in and go to the Forex tab) you can transact internationally while saving on transaction charges, securing a better exchange rate, and even enjoying eBucks rewards on Global Payment and Global Receipt transactions (subject to standard eBucks Rewards rules). For more information about the Foreign Exchange services search for 'Forex' on the RMB Private Bank website.

If you're looking to invest offshore and require more information, please get the ball rolling by speaking to your Private Bank Advisor.

A gentle reminder...

Any unutilised portion of your Single Discretionary Allowance (SDA) and Foreign Investment Allowance (FIA) will fall away on 31 December 2017. Should you still wish to make use of the 2017 FIA, we encourage you to get in touch with us as soon as possible to get the process moving as the tax clearance process can take up to one month.

WEALTHY 'ANGELS' GETTING BEHIND ENTREPRENEURS

In South Africa the match-up between willing angel investors and good entrepreneurial ideas holds great potential. It also presents endless opportunities for wealthy individuals who have a keen eye for talent and are eager to back viable concepts in order to make a good return. But would-be angel investors need to ensure they are adequately informed about the sector, the type of business, current and past trends, as well as risks, in order to determine if they are making a good investment.

Business owners, large and small, are the lifeblood of any economy; and fostering their development and success is widely regarded as playing an important role in boosting any nation's bottom line. Given the importance ascribed to entrepreneurship, each November a week is dedicated to celebrating the world's entrepreneurs. Globally - and locally - this takes place through discussions, presentations and the active support of current and wouldbe entrepreneurs.

Anyone who enjoys history, and particularly unpicking the makings of the United States of America, will point to the spirit of innovation which spurred on that country's 'start-up' culture and capitalistic credentials. In his book, Americana: A 400 Year History of American Capitalism, Bhu Srinivasan looks at the influence of entrepreneurs like Andrew Carnegie and John D Rockefeller on that country, and highlights the United States's gold-rush past and make-itbig dream. "I think that the cultural aspect is certainly there," Srinivasan said in an AEIdeas podcast in October 2017. "I mean, we do encourage entrepreneurship in very big ways. The fact that you have a lack of stigma in this country with failure - that I think is a very big thing."

In South Africa, this failure-friendly, risk-open approach to starting a business is less evident, which is likely why we have fewer Zuckerbergs, Gateses and Jobses rising up. However, in the ranks of the wealthier segments of society, many high-net-worth individuals are increasingly willing to take on more risk when investing in promising business start-ups. Often, this investment finds its expression through early-stage angel investing (which tends to provide seed capital courtesy of affluent families or individuals) or, in more formalised cases, venture capitalism (for startup businesses or to facilitate expansion).

"However, angel investing remains highly risky and can result in financial losses if proper due diligence is not conducted," cautions Eric Enslin, CEO of RMB Private Bank. This includes investing in expert advice. You need to be adequately informed about the sector, the type of business, current and past trends, as well as risks, in order to determine if you are making a good investment, says Enslin. Seeking advice from knowledgeable experts who have earned their stripes in this field can only work to your advantage.

He points out that would-be angel investors should also bear the following in mind:

Beware of the risks - To be successful you need to have an appreciation for entrepreneurship. Given the high failure rate of new businesses that get started in South Africa, you have to make room for failure. Success is never guaranteed.
Don't factor in overnight returns - Patience is important. You may only begin reaping the rewards after five to 10 years.
Look behind the concept - While you may be captivated by an innovative concept, don't lose sight of the basics, such as a comprehensive and succinct business strategy, drive and determination of the leadership, passion, risk appetite, expertise, financial management and business culture.
Get involved - Angel investors often offer more than just capital injection, but have a good level of involvement in the businesses they are supporting. This can be in the form of mentorship support or offering strategic direction as an executive board member.

"Angel investing is a long-term investment strategy and should not be rushed into, but rather carefully considered and researched in order to prevail as part of a sustainable wealth building plan," adds Enslin. Investing in the personal and professional growth of the entrepreneur is also of the utmost importance. As much as affluent individuals enjoy the input of wealth advisors and specialists working behind the scenes, so too do entrepreneurs need financial support and know-how. In this respect FirstRand Group's FNB Business, voted South Africa's Top Business Bank by the Sunday Times Top Brands Survey 2017, is structured to work with entrepreneurs to streamline their financial operations.

As an FNB Business client you have access to free accounting services, such as Instant Accounting, online documents reservation services, and a partnership with the CIPC is currently being formed to digitise South Africa's business registration processes. All pain points for the average entrepreneur.

"Our message to entrepreneurs is that we understand that it isn't just business to them and that is why we remain committed to providing meaningful solutions to help them grow," says Mike Vacy-Lyle, CEO of FNB Business. "Going forward, we have some exciting developments that will take us further in our digital journey, and through this we will continue to launch amazing services, products and partnerships, all aimed at taking the anguish out of doing business."

For all young entrepreneurs willing to take the plunge of being a self-starter in an effort to make their own mark, there are some fundamentals to success, believes Enslin. Entrepreneurship can only be successful if a solid wealth management plan, which encompasses goals and aspirations, has been established. When executed correctly the model and principles can be replicated across multiple generations, he says. That includes building a profitable venture which can be sold for a premium, being open to diversification, looking towards the long-term future of a business, and taking each step along the road seriously.

Launching, running and nurturing a business is not a short-term game, it is a responsibility which - for some - will be handed down from generation to generation; all the while growing communities and empowering individuals. This is why we celebrate entrepreneurship and those who dare to dream.

FIRING UP THE ENTREPRENEURIAL SPIRIT IN SA's YOUTH

Entrepreneurship has been touted as an elixir for South Africa's youth and as a possible engine to ignite economic growth. The question is: How best to nurture the instinctive entrepreneurship of young South Africans to enable them to spot opportunities and have the confidence in their abilities to start businesses across multiple sectors? The key, for both the children of wealthier South Africans and young hustlers making their own way in the world is access to advice, mentorship, skills and opportunities.

Not only does South Africa mirror the global state of affairs when it comes to youth unemployment, but the situation here is worse. Globally those under 24 years of age comprise 40% of the world's population and 41% of the world's unemployed, according to the United Nations. In South Africa, those younger than 34 comprise 66% of the total population and, in 2017, Statistics South Africa noted that more than 54% of youngsters under 24 were unemployed.

Faced with these daunting statistics, entrepreneurship has been touted as an elixir for the country's youth and as a possible engine to ignite economic growth across the board. The question is: How best to nurture the instinctive entrepreneurship of young South Africans to enable them to spot opportunities and have the confidence in their abilities to start businesses across multiple sectors.

Within the FirstRand Group, two avenues for youth entrepreneurial support exist: Leveraging off the expertise within the likes of RMB Private Bank for the entrepreneurial children of wealthier individuals and, for young hustlers making their own way in the world, youth accounts through FNB have been especially crafted for those younger than 25.

For RMB Private Bank clients, their future business tycoons do have the added advantage of access to an incredible platform of experts from investment to offshore lending, business advice and family services. This access is vital not only from an entrepreneurship perspective, but also from a legacy point of view. According to a study published by the Williams Group wealth consultancy in 2015, 70% and 90% of wealthy families lose their wealth by the second and third generation respectively. For such families, the need to pass on legacies to a younger generation of leaders who will be responsible for breathing new life into well-established corporations or scaling high-growth potential businesses to new levels is essential.

Entrepreneurship in this wealth context can only be successful if a solid wealth management plan, which encompasses goals and aspirations, has been established. When executed correctly the model and principles can be replicated across multiple generations. But, getting this right requires expert input and guidance.

Mentorship is not only vital for wealthier individuals, it is an essential component when fostering business abilities. HDI Youth Marketeers's Client Service Director, Cuma Pantshwa, believes access to mentors can help young people to examine their business plans and ideas, and set clearly defined goals. This, together with the ability to learn relevant skills, is of utmost importance to this generation - particularly those looking to embark on an entrepreneurial path. "What we've found is that young adults want money. And, in this space, they seek brands that will help them to achieve this. They seek brands that will get them to the next level and help them achieve their dreams. They are worried about their futures and whether they will get a job, and that is where entrepreneurship comes in, because they've identified that in the midst of huge unemployment there is a gap," she says.

HDI, which shares its youth insights annually through the Generation Next report, points to a youth generation that is hungry for success (22% want to be rich and 27% want a good career, according to the 2017 report) and who prize quality education (29%). They have all the ambition, resilience and drive required of entrepreneurs, but they are being let down by their know-how. Pantshwa notes: "The missing link in South Africa, I believe, is that the education system is not giving young adults practical entrepreneurial skills and key business tools to enable them. We've also identified that young adults want brands that can help them get these skills; from how to sell yourself to how to turn your business idea into something lucrative. They are looking for these skills."

When it comes to know-how, business management and executive skills rank way above all other abilities (at 20.9%) and 19% of the youth polled in the Generation Next report regard being their own boss as the coolest job imaginable - an insight which shows a decided affinity with being in control of their own destiny.

Because this group is so aspirational, because they want cars and luxuries, international travel, property ownership and the ability to study further, they are well suited to entrepreneurship; they just need greater exposure to this as a career option. That said, a whopping 40% of youngsters polled by HDI already want to open their own business, says Pantshwa, who believes South Africa's youth are well able to succeed in their entrepreneurial ambitions. "They are innovative and they are well-connected in terms of digital, so they are in a good space to evolve. They have what it takes to come up with businesses, so we have to help create an environment for them - and critically their parents and families - to see this as a viable career choice."

In line with this thinking, HDI runs a knowledge-sharing platform called Shift which aims to inspire and encourage youngsters towards greatness by exposing them to talks at university as well as through online interactions. At the younger level, educational institutions like Future Nation Schools - founded by former FirstRand CEO Sizwe Nxasana and his wife, Dr Judy Dlamini - and SPARK Schools are also changing the way they educate children to develop more inquisitive, technologically savvy and selfmotivated youngsters; all traits which future entrepreneurs need.

Where businesses and brands, parents and families across the spectrum of society can play a role is by encouraging youths to take action and then supporting their efforts; this is critical if South Africa is to pave a better way forward for the next generation and encourage entrepreneurship among the youth to bloom. For companies, there is much value to be imparted by working to understand the pain points for young business owners, be it around registering a business or opening an account, how to get market access and funding, or even accessing basic how-to information, all while increasingly shifting services into the digital realms with which youngsters are so comfortable. "It's also important that brands and organisations help these young entrepreneurs by investing time and skills which will, in turn, unlock massive potential since youth entrepreneurship offers innovative solutions for economic growth among our young people," says Pantshwa. Make no mistake: their future is our future.

OUTWIT VILLAINS WITH VIGILANCE

December may be the season to relax, unwind and enjoy life, but it also goes hand-in-hand with fraud attempts, theft and mall robberies. Staying ahead of criminal elements - be it in the real world or online - often comes down to watchfulness and exercising caution, from protecting your space at the ATM, to keeping your personal log-in information secret, to ensuring your personal information is out of sight and protected.

December may be the season to relax, unwind and enjoy life, but it also goes hand-in-hand with fraud attempts, theft and mall robberies. While some events are thrust upon us, others we have full control to avoid. Here's how you stay one step ahead of the criminals:

ATM shoulder surfing
Since the first ATM changed the way we get cash, deposit cash and bank, back in 1981, ATMs have sprung up around the country. Today there are over 29 000 ATMs around South Africa, reports BusinessTech, making these handy machines a simple, effective and efficient way to bank. But that doesn't mean you don't need to be vigilant when using these machines, warns Cheryl Odayar, Head of Legal, Risk and Compliance at RMB Private Bank. She points out that 'shoulder surfing', a method used by fraudsters to take your card and view your PIN details at an ATM, is something you should be particularly aware of.

'Shoulder surfing' can happen anywhere and to anyone, but there are some habits you can get into to protect yourself:

Don't allow anyone to help or interrupt you while using the ATM.
Be aware of your surroundings and who is around you.
If you need help, only ask an appointed bank official.
Cover the keypad as you input your PIN with the other hand and stand as close to the machine as possible to shield the keypad with your body.
Put your cash, card and slip away before stepping away from the machine.

If you are a business owner and you deal regularly in cash deposits, then you must exercise particular caution, says Odayar. If anything seems dubious or out of the ordinary, then cancel the transaction and report your suspicions by calling the number on the back of your RMB Private Bank card.

Stay alert to avoid card skimming
Another common technique used by criminals is card skimming, where a skimming device is installed into an ATM or a POS device (mobile point-of-sale terminals) to obtain the details of the card. If, when inserting your card, the port seems unstable or 'wobbly' then cancel the operation immediately and report the machine. An ATM machine will always ensure a snug fit for your card.

Keep your card, PIN and digital login details secret
Never compromise your PIN details, as it is your personal gateway to your account. This includes never writing it down or sharing it with anyone - even your family, friends and bank officials.

Similarly, when it comes to online banking login details, these too should be private and for your eyes only. Nobody should have your login information but you.

This also applies to online shopping, where you have to input your credit card details onto external websites. "Always use secure and reputable websites for online shopping," says Odayar, "when in doubt make sure that the web address starts with https:// and that there is a padlock image in the address field." If not, you might be handing over your details to someone nefarious.

SIM swap fraud: Beware of signal loss while transacting digitally
SIM swap fraud occurs when SIM card details are changed so fraudsters can access your One- Time Pin (OTP) codes and SMS notifications. "If you are banking and you lose reception while expecting a notification, then log off, call your network provider and check if a SIM swap has been activated and change your login details immediately. Remember, if you use the RMB Private Bank App there is an additional layer of security to avoid SIM Swap Fraud.

Save RMB Private Bank's contact details
Keeping an open line of communication with the bank is ssential. If your cellphone is stolen, or if you change cellphones, you should immediately let the bank know in order to de-link your RMB Banking App from the previous device and reconnect to your new or replacement cellphone. This can be achieved by calling RMB Private Bank Service Suite 087 575 9411.

There are instances where things go wrong with technology so, if your card is swallowed by an ATM, ensure you call RMB Private Bank Service Suite or your Private Bank Advisor immediately to cancel the card.Keep the RMB Private Bank Fraud number saved in your phone: 087 575 9444.

Remember: When in doubt, err on the side of caution. Leave the risk taking for the roulette table and not for the banking universe.

Card & account control at your fingertips

No matter where you are, sunning yourself on a tropical beach or exploring a new city, RMB Private Bank's digital channels allow you to quickly and securely manage your cards and accounts. At the touch of a button or the swish of a screen you can:

*Cancel lost/stolen cards or order replacements
Activate new cards
*Control your transactional limits (both internationally and domestically)
View or change your PIN
Temporary block misplaced or stolen cards on the RMB Private Bank App and lock/unlock when required.

There is no better travel companion than the peace of mind which comes with secure, flexible, self-sufficient banking, courtesy of the RMB Private Bank App and Online Banking. Now the only queues you need to worry about involve getting into a renowned Michelin starred restaurant or one of the world's finest galleries or museums.

*Simply download the RMB Private Bank App > select the arrow next to the Account Number > then "Cards". Select the card, then the "Cancel Card"/ "Update Limits" option and follow the prompts.

EXCLUSIVE SPORTING EXPERIENCE COURTESY OF EBUCKS LIFESTYLE

eBucks Lifestyle and RMB Private Bank bring you the ultimate in sports travel experiences for 2018. From golfing highlights at the US Masters and in Abu Dhabi, to Wimbledon tennis and first-rate English Premiership football, this new offering affords you the opportunity to enjoy some of the world's most iconic sporting events courtesy of our tailored sporting getaways.

eBucks Lifestyle has combined its expertise in travel with the best in sport to bring RMB Private Bank clients the ultimate in sports travel experiences for the new year. What does that mean for you as a valued eBucks Lifestyle client? Well, this new offering affords you the opportunity to enjoy some of the world's most iconic sporting events courtesy of our exclusively tailored sporting getaways.

For 2018 we've created an array of unforgettable opportunities for the sporting enthusiast, here are four to whet your appetite:

GOLF: ABU DHABI HSBC GOLF CHAMPIONSHIP
Golf's most famous names kick of the year by competing for the coveted Falcon Trophy at the Abu Dhabi HSBC Golf Championship. As an eBucks Lifestyle client you'll not only enjoy four days of up-close excitement, but you are invited to play three rounds at any of the following prestigious golf clubs: Saadiyat Beach Golf Club, an unparalleled location skirted by the cobalt waters around Saadiyat Island; Abu Dhabi Golf Club, a 27-hole oasis in the desert dotted with palms and saltwater lakes; and Yas Links Golf Club, a magnificently designed course which is renowned for testing professionals, enthralling amateurs and exciting beginners.

When: 17 to 24 January 2018 From R21 320 per person sharing

FOOTBALL: ENGLISH PREMIER LEAGUE MAN UNITED VS LIVERPOOL
Be there for the most anticipated match of the 26th English Premier League Season as Manchester United face Liverpool at home. You'll be treated to the finest Lancashire hospitality courtesy of your eBucks Lifestyle credentials, while being entertained by outstanding action from the uninterrupted views of the luxurious Sir Alex Ferguson Stand.

When: 9 to 12 March 2018 From R24 800 per person sharing

TENNIS: WIMBLEDON CHAMPIONSHIP
Enjoy summer in July at the All England Lawn Tennis Club as the world's best tennis players battle it out for the prestigious title of Wimbledon Champion. Your eBucks Lifestyle membership will secure you Platinum Hospitality and a soughtafter reserved seat for one day on Centre Court to enjoy the atmosphere and enchantment that comes with the world's oldest tennis event.

When: July 2018 From R40 070 per person sharing

GOLF: US MASTERS
The US Masters is one of golf's most prestigious events. This invitationonly tournament is in its 82nd edition at the celebrated Augusta National Golf Course and continues to attract the cream of the world's golfers. Through eBucks Lifestyle, enjoy access to the Rocky Patel premium cigar lounge and grab the chance to show off your skills at the three-hole putting course.

When: 1 to 9 April 2018 From R42 580 per person sharing

As we move into 2018 now is the ideal time to pen some downtime into your diary and secure your front-row seat at some of the world's finest sporting extravaganza.

Foreign Exchange made easy

There are countless things to do before you jet off for a well-earned break: checking your phone has roaming, getting the dogs into kennels, reading up on your chosen destination and ensuring you have sufficient travel insurance in place.

High on your list of things to do is likely to be foreign exchange. Fortunately, RMB Private Bank has your back when it comes to quickly and easily placing your order, be it in foreign notes, a Multi-currency Cash Passport™ (travel card) or a combination of both. Simply log into your Online Banking profile, order your forex with 60 days of departure and, hey presto, it will be delivered at no charge to your home or office. You can also top up the balance using Online Banking while travelling, if something appealing unexpectedly catches your eye.

Plus you'll benefit by earning 50% back in eBucks on your transaction charges when you spend foreign currency online to pay for the likes of accommodation, car hire or theatre tickets in advance. Showing that it really does pay to plan ahead!

With the rand likely to come under more pressure in the months ahead, given poor fundamentals in the economy, there are many travellers who are looking every further ahead, to next year's holidays or even 2019 and beyond. If, like these individuals, you are worried about the exchange rate's impact on your vacation plans then consider opening a Global Account, which allows you to save in foreign currency at any time of the year. Off to Greece? Then save in euros and spend in euros? Heading to the Big Apple? Save in dollars and spend in dollars. It's that simple.

In addition to this, travellers who have a Multi-currency Cash Passport can transfer funds from their Global Account and use the Cash Passport to make purchases and withdraw from ATMs displaying the Mastercard acceptance mark in any of the four currencies available on the card.

Safety tips for trips

While you are on the road or outside the country this festive season, remember that your team of dedicated RMB Private Bank support bankers are just a message away. Connect via Secure Chat on the RMB Private Bank App anywhere in the world and enjoy the same convenience when banking at home.

The RMB Private Bank App universe is fully secure, making transacting via the App your best option for international banking transactions. Simply log on via a Hotspot and we'll take care of the security. Plus, for your peace of mind, enable overseas roaming to get SMS alerts to help you monitor your spending while travelling.

By virtue of your using the RMB Private Bank App we'll know if you are travelling abroad, but it's always better to be safe than sorry so do notify your Private Bank Advisor about your trip, where you are visiting and how long you'll be away. This will ensure we keep a vigilant eye on your accounts in the event of any suspicious activity.

Bear in mind that fraud is not just a South African affair - international gangs and syndicates prey on overseas tourists so, if you are out of the country or even just out of town, be mindful of protecting your personal information against identity theft. Don't leave cards and passports lying around your hotel room, rather make use of the safe in the room. Also, never forget that RMB Private Bank will never communicate with you via email or SMS in a manner that requires you to open links, so be aware of the nature of emails and SMSes you may be receiving on your cellphone. When in doubt, delete.

The Ins and Outs of Priority Pass

While travelling abroad RMB Private Bank clients have the option of kicking back in a variety of independent airport lounges between flights by making use of the complimentary Priority Pass service courtesy of eBucks Lifestyle.

To qualify for your complimentary Priority Pass Membership, you need to order a Priority Pass card online. You can do this through the RMB Private Bank App or via eBucks.com (log in and then select the Lifestyle tab). It takes 17 working days to process your Priority Pass order, so don't leave the application process to the last minute if you are planning to travel in the near future.

Priority Pass gives RMB Private Bank clients access to a network of more than 700 airport lounges worldwide, provided you have booked in advance and have the required reward level. Because Priority Pass works on a tiered rewards level, make sure to check that you qualify for the benefit before applying by checking on the RMB Private Bank App or calling the Service Suite on

SEPTEMBER 2017

>Get your head around legislative updates which may have an impact on trust and your tax circumstances.

JULY 2017

>Wise Investing

MARCH 2017

>Innovation & flexibility

DECEMBER 2016

>Take your foot off the pedal

OCTOBER 2016

>Is your famiy's house in order?

News and insights

A game-changing year

Already 2018 will go down in history as a game-changing year. From a delayed State of the Nation Address by President Cyril Ramaphosa, to a challenging Budget Speech, which saw the first increase in VAT for 25 years this eventful few months has spurred on positivity and cautious optimism in the future of South Africa. Moreover, the ratings agency upgraded the country's credit rating outlook from negative to stable. As a result, we've seen investor confidence come out of hibernation.

This positive upswing in sentiment is the reason why we are focusing on a "leveraging" solution. Securities Based Lending is an under utilised alternative to unlocking liquidity or to introduce gearing into portfolios. This is an interesting option and certainly has a place within client's wealth portfolios.

We remain focused on providing holistic solutions that address the diverse requirements of our clients. As a result, we continue to enhance our Global Wealth Solutions platform to enable our clients to effectively diversify their portfolios offshore.

Finally, we proceed with our mega-trends series, taking an intriguing look at the 'sharing economy' and examining the implications this shift has for established businesses and investments. And don't forget to view the latest offerings from eBucks Lifestyle.

A positive and optimistic tone has certainly been set for 2018. We look forward to helping you harness these opportunities.

Best wishes,
Eric Enslin
CEO RMB Private Bank

The 'sharing economy': A megatrend to watch

Observing a toddler in action will remind you that sharing doesn't come easy to the human psyche. But the rise of 'sharing economy' is turning that truth on its head.

The term 'sharing economy' refers to the phenomenon of collaborative consumption, which is facilitated by technology. Services which began as niche digital offerings are now making a pervasive impact on the world around us, so much so that RMB Private Bank now regards the sharing economy as one of the major disruptions - or megatrends - to watch over the next decade and beyond.

Elaborating on what collaborative consumption means for the way we live, invest and establish businesses, Chantal Marx, Head of Research at RMB Private Bank, explains that technology, usually apps or websites, facilitate the sharing of underused assets of services for a fee. "The sharing economy is concerned with the better utilisation of resources. A car, for example, is an underutilised asset as it lives in a garage at home and a parking lot at the office for the majority of its life. So ask yourself: what are you paying per second for the time you drive your vehicle? Then consider how the likes of ride-sharing app, Uber, has revolutionised how we use these assets. It's about eliminating waste from the system."

In the process of creating a new form of resource sharing, this collective mentality is fundamentally changing the way established businesses operate. "One does not have to look far to see the impact of disruptive technology, even in South Africa," says Marx. "Just think of the arrival of Uber, which had rendered the meter taxi almost obsolete andresulted in the significant disruption of old, outdated business models."

Furthermore, as the sharing economy grows so will the list of companies unsettled by a new way of doing things. And, rest assured, this type of peer-to-peer consumption is going nowhere. It holds huge appeal to the Millennial market (those born between 1982 and 1999), which is five times more likely to share than the Baby Boomer generation (mid - 1940s to mid-1960s), says Marx, referencing Bank of America Merrill Lynch research. As for the Centennials (born between 2000 and 2017) this is their 'normal'.

While Millennials and Centennials make up a staggering 70% of the South African population and 49% of the world population, they are not the only drivers. "Interestingly, Boomers are the fastest-growing demographic of Airbnb (the app-based shortterm rental giant) hosts in the United States," says Marx. "After all, they have the assets while 75% of Millennials prefer to spend money on an experience rather than a material possession."

In South Africa, Baby Boomers are also getting in on the act, says Marx, who recently encountered her first Boomer Uber driver. "If the Boomers are already involved, then the shared economy has gone mainstream," she declares. "So mass adoption is imminent."

Given this insight it is telling that the world's leaders and well-connected, gathered at Davos in Switzerland in January 2018 to discuss 'creating a shared future in a fractured world', the conversation remained predictably around growth, tackling inequality, global instability, the rise of populism and climate change. The focus on technology, which continues to evolve at a rapid pace, offered few new insights into a disruption which is expected to collectively have a US$14 trillion to US$33 trillion direct global economic impact by 2025, according to consulting firm McKinsey. But it is the likes of Uber, Airbnb, Cohealo (which allows hospitals to share equipment), BlaBlaCar (for sharing longdistance road trips) and RelayRides (where people can borrow cars from their neighbours) that will change the way the world consumes. This, in turn, will ultimately affect turnovers and disrupt business strategies.

"Platforms like Airbnb have disrupted several industries," says Marx, who points out that many Airbnb rentals are running at 60% occupancy, which is on par with established hotels. This should send out a warning to investors about how and where they funnel their funds in the future. Right now you can't invest directly in the Airbnb platform or the Uber platform, but "these apps are coming to market eventually", says Marx. "The other way, rather than waiting for the inevitable IPO, is to invest in the underlying assets, like a second property which you can put on Airbnb."

There are, of course, challenges and risks which are already evident with some of these disruptive sharing platforms, not least of which is social resistance to some of the innovations. Uber, for instance, has encountered heavy push back from meter taxies and that, says Marx, "is a big problem". So, for investors looking at these new businesses with interest there should be a healthy appreciation of the current lack of regulation and also the potential risks involved.

"As an investor you might not want to invest in these platforms right now, but what you should be doing is looking to avoid investing in industries that are likely to be disrupted," says Marx. And that raises questions around hospitality and logistics, education, media, travel, insurance, banking and even healthcare equipment. That said, forward-thinking companies in these sectors that are investing in technology and learning from the agility of app-based platforms, still have merit. Locally banks are still holding their own in the heavily-impacted financial sector and, despite the rise of ride-hailing apps, "there is still value in car rentals", says Marx, in part thanks to South Africa's strong tourism numbers.

Banking and investing for the global citizen

Travel, information at the touch of a button, and 24/7 news has made the world a smaller place. South Africa is no longer a million miles from New York or Beijing and we no longer see ourselves as just citizens of a single country. As our identities have transcended geographies and political borders, so too have our banking and investment requirements changed. Today we have, and in fact demand, the freedom to cross borders and transact anywhere in the world.

But where to start?

"When articulating the freedom that individuals now have, we talk about global citizens, and this encompasses a varied audience with different needs," explains Chantal Robertson, Head: Global Wealth Solutions at RMB Private Bank. "Some are young professionals who are starting their journey, while others are established business owners who are seasoned travellers with different requirements. Global Wealth Solutions is a complete offering comprising the best that the FirstRand Group has from a foreign exchange (forex), banking and foreign investment perspective. It caters for the firsttime international investor to the seasoned pro by providing an end-to-end cross-border solution that can be tailored to suit your specific needs."

What that means in practice is an offshore investment solution that encompasses forex online, a variety of offshore saving options, tax clearance assistance, and ongoing advice and expertise. "Our role is to deliver a customised solution based on your personal circumstances and investment goals, whether you are looking to invest offshore for your child's tuition at an international institution, if you wish to acquire an apartment in London, New York or Berlin, or you are simply looking to hold a portfolio of foreign equites," explains Robertson.

When transacting across borders each rung of the ladder invites more questions and requires specific expertise. Often the initial conversation starts with a discussion around forex and the annual allowances, and the question 'what can I do and how?' arises. In some cases the single discretionary allowance of R1 million per South African resident of 18 years and older is sufficient, while some clients require assistance with tax clearances to take advantage of the annual Foreign Investment Allowance of R10 million.

Once a client has made the decision as to which foreign currency to move into, then the conversation becomes: 'But I don't have an offshore bank account, how can I open one?' Here RMB Private Bank has two options on the table: the Global Account or a Channel Islands account.

What is the difference between the two accounts? And which one do you need?

The Global Account, explains Robertson, is a simple currency account that can be opened online within a few minutes. "You can see your Global Account on your RMB Private Bank banking profile and it is easy to fund." For a first-time offshore investor this is the best way to start and it allows for monthly amounts to be accumulated in your chosen offshore currency. "Should you be using the Single Discretionary Allowance, no tax clearance would be required," notes Robertson.

Your Global Account is extremely beneficial when you are travelling, as you can fund your Multi-currency Cash Passport from this account using the RMB Private Bank Online Banking platform. When it comes to investing, this account can also be regarded as a stepping stone to foreign currency exposure.

If you have built up a tidy balance then it makes sense to use these funds to fund a new Channel Islands account or, if you are looking to shift from one fund to another then your Global Account can serve as a handy investment clearing account; allowing you to move foreign funds without having to switch back into rands and out again.

FNB Channel Islands is a branch of the FirstRand Group, based in Guernsey. It is regulated in the Channel Islands, and provides all the benefits that one would expect from an offshore bank account, including online banking and a debit card. In addition, you can link your Channel Islands account to your RMB Private Bank profile in order to keep an eye on your funds, but you cannot transact due to the different jurisdictions. For that you have access to online banking via the Channel Islands website as well as the Channel Islands team, who are fully versed on the regulatory environment and saving options available.

An excellent benefit is that your Channel Islands account will not attract any fees, provided that you have a minimum balance of ï¿½2,500.

When you have acquired sufficient offshore change, then the next question becomes: 'What now?' And, again, Global Wealth Solutions can seamlessly step in with a FirstRand-tailored solution courtesy of FNB Securities or Ashburton Investments. With the help of skilled experts you take advantage of the market-leading advice of FNB Securities, voted Intellidex's Top Advice Broker in 2017, or buy directly offshore funds such as the Ashburton Global Growth Fund or the Ashburton Chindia Equity Fund, a repeat winner of the prestigious Raging Bull Award. Or ask for advice on investing in other third-party funds.

"Being a global citizen is no longer in question, but it is a different journey for each one of us," says Robertson. And Global Wealth Solutions puts you in the offshore driving seat each step of the way.

Remember that South African residents over the age of 18 can take funds offshore using the following allowances for 2018:

Single Discretionary Allowance of R1 million: Individuals can use this for travel, gifting or foreign investment and no tax clearance is needed. But be careful not to exceed the R1 million limit. And remember that if you wish to use any part of this allowance for foreign investment, you must be registered for tax purposes.
Foreign Investment Allowance of R10 million: You will require tax clearance to take advantage of this allowance, but once received you can invest the funds in any foreign asset and can also make use of offshore trusts or companies to invest. We have an experienced team who can assist you with your tax clearance application.
Foreign investment in excess of R10 million: This process requires approval from both the South African Revenue Service (SARS) and the South African Reserve Bank (SARB), and can take from four to six months as it entails a full SARS audit. In addition, the SARB imposes certain conditions on the proposed investments and the holding thereof. While we cannot assist with the SARS process, RMB Private Bank can provide guidance on and the submission of the SARB application.

Securities Based Lending lets your assets work for you

Globally the use of Securities Based Lending has found particular favour in the United States with the likes of Morgan Stanley and Bank of America leading the way. Both recognise that borrowing is an important component of wealth management and achieving key financial goals, so making use of Securities Based Lending within a portfolio puts more options on the table for the client.

Traditionally assets and liabilities have kept to their own corners on a balance sheet. But now, with Securities Based Lending - or SBL - you can leverage off your assets on your terms. Rather than liquidating an investment account or shares when you need access to funds, often incurring hidden costs such as tax liabilities and a loss of future growth along the way, SBL offers a lending solution that is time sensitive, flexible, simple and effective.

What is SBL? And how does it fit into your overall wealth management plan?

Mishaal Desai, Head: Securities Based Lending at RMB Private Bank, explains that the concept involves using investments in listed shares, unit trusts and offshore shares (among others) as collateral in order to raise finance for a range of activities. "The beauty of the product lies in its simplicity," says Desai. "SBL allows clients to gain access to liquidity without having to liquidate existing investments."

This same interest is increasingly being observed among South African investors, particularly those in the high-net-worth category. In terms of RMB Private Bank's SBL offering, Desai says it has certainly been attracting attention. "Word of mouth has spread quickly across our client base, with particular interest from existing clients with security portfolios and senior executives with vesting share options," says Desai. "Together with favourable interest rates and turnaround times to implement, there are no restrictions on where the funds can be applied. So the SBL product is a powerful tool in unlocking liquidity and preserving wealth."

When to use your SBL?
Since the launch of the SBL product, clients have been eager to take up the facility to gain exposure to other business ventures, to obtain property overseas, for vehicle financing and, in increasing numbers, to pay off tertiary education fees or MBA study costs at the start of the year. According to UBS Bank in the United States, the most common uses for SBL in that market are to fund real estate purchases and business opportunities, to refinance high-interest debt, to pay tuition fees, taxes and other large yet unexpected expenses.

Desai explains that, in South Africa: "The most successful deals concluded to date have been to introduce gearing into the clients' portfolios, thereby increasing the rate of return on the investment. By making use of a geared portfolio, the client can then set stop-losses in line with his or her appetite, while enjoying the full appreciation in portfolio value. Given the performance of the markets over the years, clients have been able to generate substantial value through the gearing effect."

Desai notes that structures implemented for clients with cyclical cash flows have also been a popular use of the SBL product. "Clients in cyclical industries may have excess cash on their balance sheets for large periods of time, which is a major hindrance to investing for the long term. In these instances, the client may elect to invest cash into higher-yielding investment portfolios and make use of an SBL facility to access liquidity for the short term against their long-term investment strategy," says Desai. "In essence, SBL is able to create a solution for clients in cyclical industries or professions."

How it works
Once the investment portfolio has been accepted as collateral, the client may choose from two repayment profiles offered by the bank: an interest-only option, which involves monthly repayments on the interest portion; and an interest roll-up option, designed to work around client cash flows. The interest roll-up portion is particularly useful when providing tailor-made structuring solutions to match interest payments with a client's cash-flow constraints.

First step
While there are several applications for SBL within your investment universe, it is important to start this journey by educating yourself about the facility and working with your Private Bank Advisor to determine if SBL has a place in your portfolio. Certainly, as a holistic wealth management tool there is growing demand for the inclusion of such lending options, but taking the time to assess the appropriateness, risk and potential for you and your family is vitally important.

Wealth management starts at home

Far too often a failure by families to deal with important financial decisions as a unit hampers all members of the family from fully understanding complicated - and sometimes not so complicated - money matters. This is why involving your spouse and children in finances, and empowering them to make the right financial decisions on their own, is a worthwhile undertaking.

This family-focused approach starts, believes Preenay Sathu, Head of Advisory at RMB Private Bank, by encouraging your spouse and your children to be financially informed. You could start by introducing your spouse to your Private Bank Advisor and inviting them to attend important annual reviews. This level of exposure can help to ensure that your spouse is capable of managing your estate in the event that you cannot, or at least be fully informed of the process and who will be managing it.

Including your spouse in wealth planning decisions also has implications for the structuring of your estate, where, for example, you save exponentially on estate duty by bequeathing most of your assets to your spouse. "Similarly," explains Sathu, "you would want to ensure that, where appropriate, there are beneficiaries nominated on your insurance policies so that your estate is able to save on executor's fees." These are discussions to be had as a family, to ensure that everyone understands why your estate is being structured the way it is. It is also vital that one's spouse and loved ones are fully aware of all assets and liabilities held as part of your total financial portfolio.

Central to this approach is your dedicated RMB Private Bank team. "Your Private Bank Advisor, working hand-in-hand with a team of experts, will advise not only you but will take a holistic family approach which considers the needs of the household.

Yes, it can be complicated when you bring another person into your financial decision making, admits Sathu, particularly when philosophies diverge, but there are distinct benefits to this approach in terms of planning, approach, execution and risk diversification. Men and women have different strengths and perspectives when it comes to money management, and your well-connected, confident and socially minded Millennial children can bring a different level of understanding to any financial discussion. So creating a space for all parties to be heard is important.

For many parents learning to speak the same financial language as their Millennial children is a challenge, so creating space for meaningful conversations about money, legacy, risk-taking behaviours, borrowing and the future is vital. In 2017 the Wells Fargo Millennial Study in the United States painted a worrying picture of a Millennial generation that is anxious about finances, with 98% focusing on financial security as important but only 32% feeling confident in their financial status.

At the time of the report's release, Wells Fargo Asset Management CEO Kristi Mitchem told a media gathering that: "Millennials tend to put their money worries in a box, separate from the rest of their lives. They need to take them out of the box and deal with the things they can."

Over and above talking to not only Millennials but all up-and-coming generations about money, parents can and should leverage off the range of RMB Private Bank expertise to put in place trusts, insurances and retirement planning strategies, as well as instilling healthy saving behaviour, to give children and young adults peace of mind in an uncertain world. Learning to talk about money and sharing and discussing the deep insights and pertinent information which is available to RMB Private Bank clients is just one way to build financial confidence.

This approach has veracity for spousal partnerships too, which is why RMB Private Bank's spousal offering has been tailored to foster solid relationships and deliver consistent and expert wealth investment advice. Says Sathu: "We believe that successful financial and investment planning should reflect the concerns and aspirations of both partners or spouses." This is why, through RMB Private Bank's spousal offering, your spouse or life partner can benefit from the same private banking experience that you enjoy.

Having the same team of trusted advisors on hand to guide you, your spouse and your children are immensely important when it comes to crafting specialist financial solutions for your family, says Sathu. "Our experts take the time to understand your family's wealth goals and that makes our approach unique, because we consider not only the individual, but the family as well." This extends by assisting to guide your children's prudent financial behaviours, being there to assist in opening their first FNBy account to offering advice on offshore investing, risk cover, study loans and - in later years - their own family and fiduciary considerations.

eBucks: Your passport to a European pleasure

Just like there are numerous ways to earn eBucks, there are countless ways to enjoy and travel through Europe. eBucks Travel has selected a range of unique and interesting ways in which to savour the magic of Europe: from sailing and touring, to rail travel and self-drive options.

Getting there should also be part of the fun, so get up to 40%* off when you book with Emirates, which promises to get you into a holiday mood even before you book into the SLOW Lounge.

Simply start by selecting the summer destination which gets your heart singing and eBucks Travel will take care of the rest, leaving you free to experience Europe your way and on your terms.

ISLAND HOPPING IN GREECE
Immerse yourself in the vibrancy of life amidst Greece's island paradises. From Naxos to Paros, spoil yourself with a hasslefree island-hopping experience with all your flights, transport and accommodation covered. From R22 492 for 9 nights per person sharing.

CYCLING IN FRANCE
The picturesque, historical and enchanting Loire Valley is just a short distance from Paris and yet it transports you back to the very foundations of French culture and gastronomy. What better way to experience this huge UNESCO World Heritage Site than to meander through the valley on two wheels. From R17 719 for 7 nights per person sharing.

SAILING IN CROATIA
Exploring Croatia's cities, coastlines, national parks, medieval towns and cobalt waters is an opportunity of a lifetime. Only a sail boat experience can capture the magic of this tourism gem. From R13 695 for 7 nights per person sharing.

TUSCANY TOUR IN ITALY
Journey to Tuscany and travel back in time to a period of creativity, artistic expression, fine wines and superb cuisine. Take in must-see sights like Pompeii and Capri as you fall in love with the beauty and majesty of the region. From R29 721 for 8 nights per person sharing.

Why book through eBucks Travel?

Emirates: Get up to 40%* off Emirates flights (discounts exclude all taxes)
Uber: Sign up and use the promotion code EBUCKS to get R200 off your first ride or earn up to 15%* back in eBucks (earn rate dependant on rewards level)
SLOW: Enjoy and relax with complimentary* SLOW Lounge visits (complimentary entries are based on your reward level at time of entering the lounge)
Forex: Earn up to 50%* back in eBucks through FNB Foreign Exchange.

*Travel Ts & Cs apply

eBUCKS LIFESTYLE: WADE BALES WINE OFFERS

eBucks Lifestyle has teamed up with Wade Bales Fine Wine and Spirits, to bring you three exclusive wine offers for discerning RMB Private Bank clients.

PAY WITH YOUR RMB PRIVATE BANK CARD, EBUCKS OR A COMBINATION OF BOTH.

South Africa's First Growths

6 bottle case @ R1 650
Receive 1 bottle of each of these
6 wines @ R998 (Save 40%)

Klein Constantia Cabernet
Sauvignon Shiraz 2016
Delaire Graff "De Caelo" Red
Blend 2016
Rust en Vrede Estate Syrah 2014
Rustenberg Peter Barlow 2015
Tokara Reserve Cabernet
Sauvignon 2014
De Toren Z 2014

(High profile producers with long track records of premium quality.)

Prestige Red Collection

6 bottle case @ R650
Receive 1 bottle of each of these
6 wines @ R398 (Save 40%)

Buitenverwachting Meifort 2012
Waterkloof Circle of Life Red 2011
Bilton Sir Percy 2009
Mischa Estate Shiraz 2014
Le Riche Private Blend 2015
Louis Strydom Shiraz Cabernet 2016 (Ernie Els)

(Rare and exclusive reds selected for their remarkable value for money.)

Premium Imported Bordeaux

6 bottle case @ R2 300
Receive 2 bottles of each of these
3 wines @ R1 380 (Save 40%)

Chateau Potensac 2011
Prelude de Frombrauge 2014
Les Allees de Cantemerle 2014

(Just landed from France, these are classic Bordeaux blends of predominantly Cabernet Sauvignon and Merlot.)

DECEMBER 2017

>Beware the brakes, applaud the drivers

SEPTEMBER 2017

>Get your head around legislative updates which may have an impact on trust and your tax circumstances.

JULY 2017

>Wise Investing

MARCH 2017

>Innovation & flexibility

DECEMBER 2016

>Take your foot off the pedal

OCTOBER 2016

>Is your famiy's house in order?

News and insights

BEWARE THE BRAKES, APPLAUD THE DRIVERS

In this, our last newsletter of an eyeopening and eventful year, we sign off from 2017 by paying tribute to the engine room of any economy: entrepreneurs.

Best wishes to you and yours this holiday season and we look forward to being of service to you in 2018.

News and insights

BELL RINGS ON A BRUISING YEAR

Bell rings on a bruising new year

News and insights

UNCERTAINTY

The hors d'oeuvre of the ANC Elective Conference

Positive structural change

Reformist stalemate

Stagflation

In light of the above, it is clear that South Africa has everything to play for as it heads towards the December ANC Elective Conference.

What does this mean for your investments?

More specifically:

Bond yields have already more than priced in junk status. We are close to a neutral positioning here.
Equity positions (neutral weighting) are very well diversified. There is a natural rand hedge bias with 65% of the portfolio likely to benefit from a weakening rand. Of this 57% reflects positions where assets, costs and revenues are derived from offshore, 6% reflect positions where costs are randbased, but where revenues flow from offshore, and 2% where positions reflect an element of import substitution. Exposure to South African economic sensitives, where revenues and costs are South Africa-based, make up 28% of the portfolio, while a further 8% of the portfolio reflects positions with an import cost component but where revenues are South Africa based.
South African listed property reflects a slight underweight position given the very challenging local economic outlook. There is, however, a significant rand hedge component with 41% of the portfolio exposed to offshore assets.
Offshore exposures also reflect a neutral stance right now, ahead of the December conference. South African Cash exposures are slightly elevated to ensure that we have some powder dry to invest on any meaningful marketmoving outcomes.

News and insights

LOOKING OFFSHORE?

Effective offshore investing made simple

Single Discretionary Allowance of R1 million: This may be used for a range of cross-border transactions, including travel, gifting and foreign investment. No tax clearance is required should you wish to avail yourself of all or part of your Single Discretionary Allowance for foreign investment.
Foreign Investment Allowance of R10 million: These funds can be used to invest in any foreign asset and you have the freedom to structure such investments using an offshore trust and/or company. This allowance is subject to tax clearance, but fortunately RMB Private Bank's Wealth and Investments can assist you with the tax clearance application process.

Foreign investment in excess of R10 million: Not many people are aware that an individual may apply to take out more than the allowances mentioned above. This application requires tax clearance, a full South African Revenue Service audit as well as approval from the South African Reserve Bank. Certain conditions are imposed on how and what you invest in offshore.

If you're looking to invest offshore and require more information, please get the ball rolling by speaking to your Private Bank Advisor.

A gentle reminder...

News and insights

WEALTHY 'ANGELS' GETTING BEHIND ENTREPRENEURS

He points out that would-be angel investors should also bear the following in mind:

Beware of the risks - To be successful you need to have an appreciation for entrepreneurship. Given the high failure rate of new businesses that get started in South Africa, you have to make room for failure. Success is never guaranteed.
Don't factor in overnight returns - Patience is important. You may only begin reaping the rewards after five to 10 years.
Look behind the concept - While you may be captivated by an innovative concept, don't lose sight of the basics, such as a comprehensive and succinct business strategy, drive and determination of the leadership, passion, risk appetite, expertise, financial management and business culture.
Get involved - Angel investors often offer more than just capital injection, but have a good level of involvement in the businesses they are supporting. This can be in the form of mentorship support or offering strategic direction as an executive board member.

News and insights

FIRING UP THE ENTREPRENEURIAL SPIRIT IN SA's YOUTH

News and insights

OUTWIT VILLAINS WITH VIGILANCE

News and insights

THE 2018 PRIVATE BANK AND
WEALTH SURVEY IS OPEN
FOR VOTING

(www.intellidex.co.za/winR10000)
It's a barometer of the Private Banking sector, so we encourage you to complete the survey, which offers
not only an important industry outlook but turns the spotlight on efficiencies and best practices that enable
us to continuously improve how we assist you to grow your wealth.

All clients who complete the survey by Wednesday, 18 April stand a chance to win R10, 000.

A GAME-CHANGING YEAR

Already 2018 will go down in history as a game-changing year. From a delayed State of the Nation Address by President Cyril Ramaphosa, to a challenging Budget Speech, this eventful few months has spurred on positivity and cautious optimism in the future of South Africa. ...

THE 'SHARING ECONOMY': A
MEGATREND TO WATCH

The collective and collaborative mind-set behind the rise of the sharing economy is fundamentally changing the way established businesses operate.

BANKING AND INVESTING FOR THE GLOBAL CITIZEN

Today's investors have the freedom to cross borders and transact anywhere in the world. This journey differs from individual to individual, requiring an adaptable platform which can serve a seasoned business owner as effectively as a young professional.

SECURITIES BASED LENDING LETS YOUR ASSETS WORK FOR YOU

With the promise of a business friendlier South Africa on the horizon, RMB Private Bank has noted a tangible shift in mood and a sense of growing optimism for the future. As a result, investors are now looking at the local market with keen interest.

WEALTH MANAGEMENT STARTS AT HOME

eBucks: YOUR PASSPORT TO A EUROPEAN ESCAPE

eBucks Travel has selected a range of interesting ways in which to savour the magic of Europe - from cruising and touring, to rail travel and self-drive options.

EBUCKS LIFESTYLE: WADE BALES WINE OFFERS

eBucks Lifestyle has teamed up with Wade Bales Fine Wine and Spirits, to bring you three exclusive wine offers for discerning RMB Private Bank clients.

Expert advice to preserve and grow your wealth

OFFSHORE INVESTMENTS

One of the best ways of hedging against SA's economic risk and to diversify your long-term portfolio. Let us help you preserve your wealth and grow it.

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PRIVATE SCHOOLING

With the negative perception about the quality of education in South Africa, many families are considering private schooling. Whether these schools are worth the price tag, parents remain driven to send their kids there.

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TALKING TO OUR CHILDREN ABOUT WEALTH

As a parent you want to see your kids succeed in life. Consider talking to them about money management in a language that they understand.

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TRACK THE INVESTMENT OF RENTAL PROPERTY

Unlike government bonds, shares and other trackable investment assets, it's hard to track the investment value of rental property. This makes it difficult to compare the performance relative to other asset classes. We help demystify rental investments.

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MANAGING A LEGACY

We discuss the art of managing a legacy, estate and holistic multi-generational succession planning.

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STOCK PICKING

There are literally thousands of stocks, bonds and mutual funds to choose from and the latest market-timing gimmicks, making picking the right investments quite daunting. Keep these tricks in mind when stock picking to avoid the usual pitfalls.

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NEWS AND INSIGHTS

BEWARE THE BRAKES, APPLAUD THE DRIVERS

BELL RINGS ON A BRUISING YEAR

TO MANAGING UNCERTAINTY

LOOKING OFFSHORE?

WEALTHY 'ANGELS' GETTING BEHIND ENTREPRENEURS

FIRING UP THE ENTREPRENEURIAL SPIRIT IN SA's YOUTH

OUTWIT VILLAINS WITH VIGILANCE

EXCLUSIVE SPORTING EXPERIENCE COURTESY OF EBUCKS LIFESTYLE

SEPTEMBER 2017

JULY 2017

MARCH 2017

DECEMBER 2016

OCTOBER 2016

News and insights

A game-changing year

The 'sharing economy': A megatrend to watch

Banking and investing for the global citizen

Securities Based Lending lets your assets work for you

Wealth management starts at home

eBucks: Your passport to a European pleasure

eBUCKS LIFESTYLE: WADE BALES WINE OFFERS

DECEMBER 2017

SEPTEMBER 2017

JULY 2017

MARCH 2017

DECEMBER 2016

OCTOBER 2016

News and insights

BEWARE THE BRAKES, APPLAUD THE DRIVERS

News and insights

BELL RINGS ON A BRUISING YEAR

News and insights

UNCERTAINTY

News and insights

LOOKING OFFSHORE?

News and insights

WEALTHY 'ANGELS' GETTING BEHIND ENTREPRENEURS

News and insights

FIRING UP THE ENTREPRENEURIAL SPIRIT IN SA's YOUTH

News and insights

OUTWIT VILLAINS WITH VIGILANCE

News and insights

THE 2018 PRIVATE BANK AND WEALTH SURVEY IS OPEN FOR VOTING

A GAME-CHANGING YEAR

THE 'SHARING ECONOMY': A MEGATREND TO WATCH

BANKING AND INVESTING FOR THE GLOBAL CITIZEN

SECURITIES BASED LENDING LETS YOUR ASSETS WORK FOR YOU

WEALTH MANAGEMENT STARTS AT HOME

eBucks: YOUR PASSPORT TO A EUROPEAN ESCAPE

EBUCKS LIFESTYLE: WADE BALES WINE OFFERS

TRENDING

Expert advice to preserve and grow your wealth

OFFSHORE INVESTMENTS

PRIVATE SCHOOLING

TALKING TO OUR CHILDREN ABOUT WEALTH

TRACK THE INVESTMENT OF RENTAL PROPERTY

MANAGING A LEGACY

STOCK PICKING

MORE TO READ

THE 2018 PRIVATE BANK AND
WEALTH SURVEY IS OPEN
FOR VOTING

THE 'SHARING ECONOMY': A
MEGATREND TO WATCH