Net foreign purchases of

Rbn

80
equities (annual)- R52bn in
70
60
50
2009
40
30
20
10
0
-10
-20
-30
-40
-50
-60
0
2

3
0
2

4
0
2

5
0
2

6
0
2

7
0
2

8
0
2

9
0
2
1
Cash returns vs Inflation: 1999 – 2008
The rule of 72 states (approximation) that at an inflation rate of 8.6%, the purchasing power of your cash would halve
every 8.4 years rounded off - so the purchasing power of R200 000 would essentially be worth R100 000 after 8.4
years.

10 yr
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Avg

Cash Return 15.7 10.9 10.6 11.5 12.8 8.2 7.5 7.9 10.1 12.4 10.8

After tax return

(Assume rate of 40%) 9.4 6.5 6.4 6.9 7.7 4.9 4.5 4.7 6 7.4 6.5

Inflation (CPI) 6.9 7.7 6.6 9.3 6.8 4.3 3.9 4.6 6.5 11.5 6.8

Real Return 2.5 -1.2 -0.2 -2.4 0.9 0.6 0.6 0.1 -0.5 -4.1 -0.3
Views Ahead

South Africa 2009 2010 2011 2012 2013 2014

GDP % -2.2 2.3 4.0 3.0 3.7 3.5
CPI % 7.3 6.4 6.2 7.4 6.3 7.0
Prime Interest % 11.90 11.20 12.50 15.00 14.0 12.0
Average 0 0
$/R Average 8.60 9.40 10.00 10.85 11.6 12.3
€/R Average 11.70 13.20 13.70 14.50 0
15.7 0
17.0
5 0