FNB Share Investing

Maelly

Expert Member
Joined
Jun 14, 2006
Messages
2,226
Share Builder

As of today (07 January 2010) My shares look like this:

FIRSTRAND LTD up 46% cost 13.82 Market Price 20.15
MMI HOLDINGS LTD up 42% cost 12.26 Market Price 17.42 (got it with the UnBundling of FIRSTRAND LTD)
OLD MUTUAL PLC up 31% cost 10.15 Market Price 13.27
SATRIX 40 up 8% cost 26.44 Market Price 28.63

Average up 30%

very nice, hey !!

.
Sounds good man. How long have you been invested in these shares? What is your strategy, buying and selling or buy and hold, and for how long?

I had to ask for FNB to reactivate my old Share Builder account and it is really taking longer than I expected now. I completed and faxed through the Mandate form and now I wait.

In the mean time, I bought a few EFT shares (Satrix) via EFTSA (anyone ever heard of them?).
As soon as my Share Builder account is reactivated I will buy a few shares and hold on to them and see what happens.
 

Kruben

Well-Known Member
Joined
Jun 10, 2009
Messages
137
Sounds good man. How long have you been invested in these shares?
started with OLD MUTUAL PLC in 2008-12-01 (FNB Share Builder account)

Got it when it was on its way down (around about R 8). it reached a low of around R 4, and started to climb up. Reached a high of R 16.00, and now it’s back down to R 13.50 last night (11 January 2011)

What is your strategy, buying and selling or buy and hold, and for how long?
Buying, did not sell any of my shares to date

I had to ask for FNB to reactivate my old Share Builder account and it is really taking longer than I expected now. I completed and faxed through the Mandate form and now I wait.
Activated the Share Builder account online, was done in a zippy.

In the mean time, I bought a few EFT shares (Satrix) via EFTSA (anyone ever heard of them?).
ETFSA - The Home of Exchange Traded Funds
http://www.etfsa.co.za/
(Now I do)

As soon as my Share Builder account is reactivated I will buy a few shares and hold on to them and see what happens.
Good move, remember always think long term ( + 5 years)
 

Paul_S

Expert Member
Joined
Jun 4, 2006
Messages
4,677
How are dividend payouts handled when investing in ETFs?
Are the dividends automatically reinvested into the funds?
If so what costs are involved if any?
 

Kruben

Well-Known Member
Joined
Jun 10, 2009
Messages
137

Paul_S

Expert Member
Joined
Jun 4, 2006
Messages
4,677
Share Builder Account - SATRIX 40: Paid out quarterly (4 times a year)
no, dividends get paid into your Share Builder Account
Thanks.
FNB Sharebuilder fees are very high compared to ETFSA.
Assuming an investment in Satrix 40 with 0% growth and no dividend payouts:

R1000 investment per month for 12 months at FNB
Brokerage fees per month : R57 (minimum charge R50 + VAT)
Monthly management fee: R17
Total fees per annum: R888
Balance at end of year: R11,112

R1000 investment per month for 12 months at ETFSA
Brokerage fees per month: R1 (0.1% of R1000)
Debit order fees per month: R3.50
Annual fee: R51.97 (0.8% of total investment amount of R11946)
Total fees per annum: R105.97
Balance at end of year: R11,894

That's a huge difference!
That means using FNB effectively lost you 7% of your potential investment.
Mind as well use a savings account. :p
 

Paul_S

Expert Member
Joined
Jun 4, 2006
Messages
4,677
One other question I have is:
If you invest in ETFs through FNB (or ABSA, Standard, ETFSA, etc.) do you physically hold the legal rights to the shares or do you only own a portion of a fund which is invested in ETFs?
What I'm trying to work out is if FNB (or which ever "broker" you picked) went bankrupt would you stand to lose your investment or do you actually have control over the shares which you could move to another broker?
What is the risk of trading through these channels?
 

Kruben

Well-Known Member
Joined
Jun 10, 2009
Messages
137
Update Share Builder portfolio

Share Builder portfolio as at 10 January 2012

FIRSTRAND LTD Average cost 16.76 Market Price 21.40 up 28%
MMI HOLDINGS LTD Average cost 12.26 Market Price 17.80 up 45%
OLD MUTUAL PLC Average cost 10.15 Market Price 17.35 up 71%
SATRIX 40 Average cost 26.44 Market Price 29.35 up 11%

Average up 53%
 

Sherbang

Executive Member
Joined
May 14, 2008
Messages
9,874
I just signed up for fnb sharebuilder and I'm new to this. One thing I noticed is that the sale of the shares I purchase does not go through immediately. My order history says "Buy Delayed" and under status it says "Initiated".
Can anyone explain this to me please? Why is my purchase delayed and how long can it be delayed for?
Since it's a long term investment I guess it doesn't really matter if it's delayed a couple hours or a day but since the share price changes from the time I purchase the share to the time the purchase goes through, it is a bit confusing...
 

creeper

Executive Member
Joined
Nov 18, 2010
Messages
5,091
I just signed up for fnb sharebuilder and I'm new to this. One thing I noticed is that the sale of the shares I purchase does not go through immediately. My order history says "Buy Delayed" and under status it says "Initiated".
Can anyone explain this to me please? Why is my purchase delayed and how long can it be delayed for?
Since it's a long term investment I guess it doesn't really matter if it's delayed a couple hours or a day but since the share price changes from the time I purchase the share to the time the purchase goes through, it is a bit confusing...
It is still trading and trades can only happen when the JSE is open. So if you buy shares over the weekend, the order will only go through as soon as the JSE is open. Another reason may be JSE system problems
 

Sherbang

Executive Member
Joined
May 14, 2008
Messages
9,874
It is still trading and trades can only happen when the JSE is open. So if you buy shares over the weekend, the order will only go through as soon as the JSE is open. Another reason may be JSE system problems

ok, thanks. I bought them on Friday morning though so it should have gone through by now, which it hasn't...
Also, I noticed in the Terms and Conditions it says:
I understand that all my instructions to buy or sell will be “buy
delayed” or “sell delayed” instructions. I am aware of the
implications thereof as per the Share Investing mandate.
But I don't know what the Share Investing mandate is or where to find it...
 

Kruben

Well-Known Member
Joined
Jun 10, 2009
Messages
137
Update Share Builder portfolio
Share Builder portfolio as at 23 August 2013

FIRSTRAND LTD Average cost 16.76 Market Price 30.00 up 79%
OLD MUTUAL PLC Average cost 11.60 Market Price 30.10 up 159%
SATRIX 40 Average cost 26.44 Market Price 38.75 up 47%

Average up 126 %
 
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