Floris Slabbert, National sales coordinator, was featured on Die Groot Ontbyt to talk about Ecsponent Limited and and to give an overview the company’s product offering.
Who is Ecsponent?
Ecsponent Financial Services is part of JSE listed company Ecsponent Limited and has operations in four African countries, including South Africa. In each of these countries, the company is regulated by that country’s Financial Services Board and in South Africa for instance, all our preference shares (products) are listed on the main board of the JSE.
When you look at all the different regulatory requirements we need to adhere to as a company, this should give an investor great comfort and peace of mind as a financial services provider.
Ecsponent’s products and how they work
Ecsponent has a large financial network, a range of different products and accredited financial advisors. Our listed preference shares have a fixed term, high returns of 9% +, and offer a capital growth option at the end of the term as well as a monthly dividend option.
Our Class A is a five-year, fixed rate, redeemable, cumulative, non-participating preference share with a redemption amount of 100% on initial issue price. Each share pays a monthly dividend at a rate of 10% per annum, not-compounded and net of dividend withholding tax at 15%.
Class B is a five-year, redeemable, non-participating preference share with redemption amount of 170% of the initial price per preference share.
Class C is similar to Class A, with the interest rate linked to Prime +4 with a minimum investment amount of R100 000.
Besides desirable rates, why is Ecsponent a good option of investors?
Ecsponent does not believe in a one size fits all approach. We identify each individual client’s needs and ensure that these needs are addressed accordingly. We look at reduction in yield and ensure that your costs are not higher than your returns. We focus on the net effect and also look at tax-smart investment options.
Taking a look at the markets
Some good news – The Reserve Bank left interest rates unchanged, however, the bad news is the growth rate in South Africa is going down to 0%. Although there is a lot of negativity and worry surrounding this movement, the rand did bounce back and closed higher at R14.21 against the dollar- the strongest it has been this year.
The JSE all share index showed a downward movement and the price of Brent crude oil and gold weakened by 11%. This is good news for consumers and we are hopeful that this will continue.
Be sure to catch our next blog post, where we will be discussing the importance of an emergency fund and how to go about setting one up.