FedGroup has recently launched its shared ownership system where investors receive a physical asset to generate income.
Independent financial services provider FedGroup has launched a shared ownership system as part of its effort to disrupt traditional approaches to wealth creation. Unlike traditional wealth creation approaches, where money is invested, this model involves the ownership of a physical asset to generate income.
The first project under this banner allows members of the public to own one or more solar panels that form part of a larger solar facility, located on the roofs of commercial and industrial buildings. The panels can be purchased on FedGroup’s online platform and are then installed on suitable sites, with the owners receiving a monthly rental income based on the power generated by the panels. FedGroup then collects and pays over the rental income to the panel owners.
The direct ownership network operates on the peer-to-peer model, where the landlords of sites, the providers and installers of the solar panels, and those wishing to own the panels are connected.
“FedGroup is always looking to implement the latest technology to drive down fees and maximise returns for our clients,” says Grant Field, CEO of FedGroup. “Therefore, introducing direct ownership for wealth creation to the South African market is a logical progression in terms of our product offering. Through the use of technology, we are able to actively track the performance of the panels, which translates into money generated for the owner.
“Our pilot project indicates that panel owners can expect to receive an internal rate of return on the purchase price in excess of 11% per annum, over the 20-year lifespan of the project. Because it is a green project, they can also apply for tax benefits, to further boost their returns. At the end of the 20-year term, owners can take physical ownership of the panel, or sell it back at a guaranteed residual value of R1 000.”
While the buyer owns the asset, FedGroup is tasked with the management, maintenance, insurance and optimisation of the panels.
“Because the rental income is calculated according to the performance of the panels, they would produce more on sunny days than on cloudy ones, but the sunny South African climate and our particularly high irradiance levels add to the profitability of this project,” says Field. “The returns are secured through a contract with the building owner to pay a monthly fee, determined by the amount of electricity generated. The money collected from the building owner every month is then distributed to the owners.”
Owners are able to track the performance of their panels online at any time. Because the panels are physically owned, FedGroup will soon be introducing a convenient secondary market to provide liquidity for anyone wishing to sell their solar asset.
The installation of solar panels also has several advantages for building owners, particularly in the case of older buildings, as many of them still bear the legacy of being energy inefficient, having been built at a time when electricity was cheap. Through this initiative, building owners now have an added incentive to retrofit their buildings with energy-efficient technology and turn the unused space on their roofs into profitable assets.
In addition to solar panels, FedGroup is also in the process of bringing other direct ownership opportunities to market.
“Each project is chosen on merit,” says Field. “We chose solar generation as our first project because we recognised the trend towards environmental sustainability in consumers’ purchasing behaviour. In addition, consumers understand solar power generation, making it a suitable product for the introduction of the concept of direct ownership.
“The beauty of the direct ownership model is that it can be applied to an almost limitless array of underlying assets, and we have a number of very exciting projects in the pipeline,” says Field. “While the asset being sold will differ, the model of direct ownership for wealth creation will remain consistent.”
New iPhone pricing for SA
The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.
|iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,
Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
Accenture opens Fjord design centre in Johannesburg
Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.
The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.
The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.
Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”
Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.
Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands.
Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.
“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”
“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”