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@Patrick

In your post above you say: "One more graph comparing VT, the world index US citizens can buy (lowest cost but foreigners mustn't buy it)"

Why do you say foreigners mustn't buy VT? Are you referring to the estate tax implications?
(If you have a GlobeTax agreement in place, will VTI+VEU not give you an overall lower expense ratio?)

Also, how will you be buying your VWRD? (From a USD based account with Standard Bank WebTrader or Absa World Trader?)

Some links I have been reading:
https://www.irs.gov/Individuals/International-Taxpayers/Some-Nonresidents-with-U.S.-Assets-Must-File-Estate-Tax-Returns
http://www.turtleinvestor.net/faq-vanguard-ftse-world-ucits-etf-vwrd/
http://www.turtleinvestor.net/establishing-bogleheads-3-fund-portfolio-singapore/

Hi everybody

As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.

What should I do now?

1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)


+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL   |8598,00   |2,39       |-69,83|
|BGA   |15740,00  |5,82       |5,91  |
|CCO   |9560,00   |8,84       |54,47 |
|CFR   |10803,00  |8,99       |3,46  |
|GLN   |2000,00   |1,85       |-69,60|
|ITU   |7016,00   |6,49       |31,53 |
|KIO   |4272,00   |0,79       |-87,72|
|MDC   |11030,00  |6,63       |43,64 |
|MMI   |2315,00   |6,42       |-11,44|
|MTN   |14817,00  |3,43       |-34,15|
|NPN   |210616,00 |9,74       |77,25 |
|NTC   |3443,00   |3,18       |-14,18|
|OML   |4512,00   |8,35       |22,68 |
|SAB   |87400,00  |8,08       |42,84 |
|SHF   |8550,00   |7,91       |17,45 |
|SOL   |40072,00  |5,56       |-27,46|
|WHL   |9955,00   |5,52       |23,68 |
+------------------------------------+

If your grandmother had 3mil in a bank money market account earning a meager 5.5% how would you invest it? Keep in mind that this is her sole income.

Any opinions on the following funds:

Prescient Income Provider Fund
Nedgroup Investments Flexible Income Fund

I have been using Standard Bank WebTrader since Dec last year. The Vangaurd VGK (FTSE Europe ETF) and VTI (Total Stock Market ETF) are still cheaper (considering you plan on holding for the long term) than the various DB-X trackers available locally even after you include the 20USD trading fee and the WebTrader platform fees.

I use Exchange4Free to move money into my WebTrader account. (https://exchange4free.co.za/) They have always provided me with better spot rates than any of the banks IF you buy for at least R100k. (No swift fees of extra commissions.) If I was going to move and invest amounts smaller than R100k I would rather just use a DBX tracker due to the bank changes you are going to incur.

Remember to register with GlobeTax to get the 15% div treaty rate. The registration is valid for 3 years but will cost you about R300 plus couriers fees to send the original signed document to New York.

The service from Standard Bank has been fantastic, you can email Sandesh at WebTrader and get almost immediate responses on questions.

In short, after a CDSP transfer from Satrix to normal stock broking account how do you calculate the “unit cost” and “cost value” for the consolidated position? (Details of all the underlying transactions are lost with the CSDP transfer.)

The long version:
I had my ETF’s transferred from the Satrix Investment Plan to my stock broking account. (The Satrix fees became expensive over the long term.) After the transfer my shares reflect a zero Unit Cost and Cost Value on my stock broking portfolio. This causes the Return to reflect as the current market value of the shares and the Return % shows as Infinity.

I now need to calculate the Unit Cost and Cost Value to have my online stock broker update the values accordingly.Satrix provides a client statement that details all the transactions, I can use these transactions to calculate a base cost fairly easily. (Getting 9 years of transactions from the PDF statement into Excel is another story…)

The problem is that Satrix sold small numbers of shares over the years to cover admin fees. I looked at old IT/IB 3(c) tax certificates to see how they calculated the net gain/loss on the sold shares. They have a column called “Weighted average value” but I cannot get this value to match the “weighted average unit cost” that I calculated based on the transactions in their Client Statement. (I calculated the weighted average unit cost as detailed here: http://www.sars.gov.za/TaxTypes/CGT/Pages/Base-Cost.aspx)

Any ideas?