Investing Offshore. Guide to investing and transacting

Transcription

1 Investing Offshore Guide to investing and transacting

2 It has been said: The world is a book, and those who do not travel read only a page. The same can be said of investing globally.

3 01 Introduction Investment process - Whereby funds are offshore - Whereby funds are in a South African bank account 04 Additions Switches Repurchases 05 Additional information 06 Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) Frequently asked questions

4 Introduction With globalisation becoming an increasingly significant factor in both investment markets and our daily lives, investing globally has become an essential part of building a successful portfolio. By taking advantage of global investment opportunities, investors can share in the growth of the world s most profitable industries and also benefit from holding investments in other currencies. This document provides you with information on how to invest in our STANLIB Offshore Unit Trust s scheme using foreign investment allowances and assets already held overseas. It also explains the process for transacting once invested, including making additional investments and switching or repurchasing. Investment process This document provides relevant steps on how to invest in our STANLIB Offshore Unit Trust Schemes whereby funds are already offshore or whether the funds are still in a South African bank account. Whereby the funds are already offshore The step-by-step process for investment is as follows: STEP 1: Select fund/s STEP 2: Complete a STANLIB application form STEP 3: Arrange for transfer of funds STEP 4: Submit all original documentation including Know Your Client (KYC) documentation to STANLIB For detailed information on these steps, please refer to the information below: STEP 1: Select fund/s STANLIB OFFERS A RANGE OF GLOBAL FUNDS Managed by Fidelity Worldwide Investments Managed by Brandywine Global Investments/ STANLIB Multi-Manager Managed by Columbia Threadneedle Investments/ STANLIB Multi-Manager Managed by STANLIB Asset Management Limited Managed by Columbia Threadneedle Investments CASH GLOBAL BONDS EQUITY PROPERTY ASSET ALLOCATION STANLIB Euro Cash Fund STANLIB Global Bond Fund STANLIB Global Equity Fund STANLIB Global Property Fund STANLIB Sterling Cash Fund STANLIB Global Emerging Markets Fund STANLIB US Dollar Cash Fund STANLIB European Equity Fund STANLIB Global Balanced Fund STANLIB Global Balanced Cautious Fund CHARGING STRUCTURE Intermediary Upfront Charge Annual Management Charge (AMC) Underlying Fund AMC Cash Portfolios STANLIB Euro Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% STANLIB US Dollar Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% STANLIB Sterling Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% Bond Portfolio STANLIB Global Bond Fund A Class 0.00%-3.00% 0.90% 0.60% 1.50% Property Portfolios STANLIB Global Property Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% Equity Portfolios STANLIB Global Equity Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% STANLIB European Equity Fund A Class 0.00%-3.00% 1.20% 0.50% 1.70% Total AMC STANLIB Global Emerging Market Fund A Class 0.00%-3.00% 1.20% 0.60% 1.80% Managed Portfolios STANLIB Global Balanced Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% STANLIB Global Balanced Cautious Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% *Management Company does not charge an initial upfront charge Minimum investment: Turnaround times: US$2,500 per fund or currency equivalent 2 business days Please refer to our Global Investments brochure for more information on the STANLIB Offshore Unit Trust s range of funds. The brochure is available on our website 1

5 STEP 2: Complete a STANLIB application form Complete a STANLIB Offshore Unit Trusts Application Form (New Business Application Form/Additional Investment Application Form) Joint holders Where there is more than one holder or applicant, all holders need to sign the application form. There may be as many as four joint holders on an offshore investment. For more information on joint holding in an offshore investment, please refer to the additional information section on page 5. Declaration section Please read and familiarise yourself with the declaration in the application form. Please note: It is extremely important to complete all sections of the application form. In particular the tax declarations and tax numbers are required under FACTA/CRS as without these we will be unable to process your application form. STEP 3: Arrange for transfer of funds The next step is to arrange for the transfer of your funds: Complete a telegraphic transfer form - available on and submit telegraphic transfer form to your bank or; Transfer funds via online banking to banking details which can be found on page 6 of this document or in the application form STEP 4: Submit all documentation including Know Your Client (KYC) documentation to STANLIB The following documents need to be submitted to STANLIB: 1. Fully completed original STANLIB Offshore Unit Trusts Application Form signed by all holders 2. Originally signed and certified KYC documentation These are the minimum documents that are required for individuals and entities: Individuals A legible, valid or originally certified copy of passport or national identification document, showing a specimen signature and a photograph of each applicant. The photograph must also be confirmed a true likeness to the applicant. An original or originally certified document to verify the permanent residential address of each applicant, i.e. a recent bank statement or a recent utility bill (less than three months old). For specific details on the certification of documents please refer to the additional information section on page 5. Other entities (i.e. trusts, companies or nominees) Please contact STANLIB at wmoffshorequerysupport.stanlib@stanlib.com or call our Offshore Support Desk on (SA only) or (international). Submit documentation to: STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, Please note: Currently STANLIB requires original documents to be submitted to STANLIB offices. However, we will accept documents submitted via . Only on receipt of funds will the deal be placed, until then the portfolio will be blocked pending receipt of the originals. address: instructions@stanlib.com Whereby the funds are in a South African bank account The step-by-step process for new investment is as follows: STEP 1: Select fund/s STEP 2: Complete a STANLIB application form STEP 3: Apply for tax clearance (only necessary if you are using your R10 million foreign allowance) STEP 4: Arrange for transfer of funds (buying of currency) STEP 5: Submit all original documentation including Know Your Client (KYC) documentation to STANLIB For detailed information on these steps, please refer to the information below 2

6 STEP 1: Select fund/s STANLIB OFFERS A RANGE OF GLOBAL FUNDS Managed by Fidelity Worldwide Investments Managed by Brandywine Global Investments Managed by Columbia Threadneedle Investments Managed by STANLIB Asset Management Limited Managed by Columbia Threadneedle Investments CASH GLOBAL BONDS EQUITY PROPERTY ASSET ALLOCATION STANLIB Euro Cash Fund STANLIB Global Bond Fund STANLIB Global Equity Fund STANLIB Global Property Fund STANLIB Sterling Cash Fund STANLIB Global Emerging Markets Fund STANLIB US Dollar Cash Fund STANLIB European Equity Fund CHARGING STRUCTURE Intermediary Upfront Charge Annual Management Charge (AMC) STANLIB Global Balanced Fund STANLIB Global Balanced Cautious Fund Underlying Fund AMC Cash Portfolios STANLIB Euro Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% STANLIB US Dollar Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% STANLIB Sterling Cash Fund A Class 0.00%-1.00% 0.50% 0.15% 0.65% Bond Portfolio STANLIB Global Bond Fund A Class 0.00%-3.00% 0.90% 0.60% 1.50% Property Portfolios STANLIB Global Property Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% Equity Portfolios STANLIB Global Equity Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% STANLIB European Equity Fund A Class 0.00%-3.00% 1.20% 0.50% 1.70% Total AMC STANLIB Global Emerging Market Fund A Class 0.00%-3.00% 1.20% 0.60% 1.80% Managed Portfolios STANLIB Global Balanced Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% *Management Company does not charge an initial upfront charge Minimum investment: Turnaround times: STANLIB Global Balanced Cautious Fund A Class 0.00%-3.00% 1.10% 0.60% 1.70% US$2,500 per fund or currency equivalent 2 business days Please refer to our Global Investments brochure for more information on the STANLIB Offshore Unit Trust s range of funds. The brochure is available on our website STEP 2: Complete a STANLIB application form Complete a STANLIB Offshore Unit Trusts Application Form (New Business Application Form/Additional Investment Application Form). Joint holders Where there is more than one holder or applicant, all holders need to sign the application form. There may be as many as four joint holders on an offshore investment. For more information on joint holding in an offshore investment, please refer to the Additional Information section found on page 5. Declaration section Please read and familiarise yourself with the declaration in the application form. Please note: It is extremely important to complete all sections of the application form. In particular the tax declarations and tax numbers are required under the FACTA/CRS regime and without these we will be unable to process your application form. STEP 3 Apply for tax clearance (only necessary if you are using your R10 million foreign allowance) As funds are leaving the country, a Tax Clearance Certificate is required. You need a tax clearance from SARS prior to investing if you are using your R10 million foreign allowance. To get a Tax Clearance Certificate, complete an Application for Tax Clearance Certificate (FIA 010) form - available on or from the SARS website and submit to SARS. The Tax Clearance Certificate is valid for 12 months from date of issue. The turnaround time for the application process is dependent on the tax office. Please note: You have a discretionary allowance up to R1 million per annum per investor, whereby a tax clearance certificate will not be required. Investors also have the ability to have up to four investors on a portfolio. Thus, up to R4 million can be invested without a tax clearance certificate. 3

7 STEP 4: Arrange for transfer of funds.you can do your own transfer or STANLIB can assist Please see table below highlighting documents to be submitted to STANLIB if you will be doing your own transfer or if STANLIB will be providing assistance with the transfer. Own transfer Original STANLIB Offshore Unit Trusts Application Form signed by all holders Originally signed and certified KYC documentation Proof of payment STANLIB Original STANLIB Offshore Unit Trusts Application Form signed by all holders Original Tax Clearance Certificate/originally signed discretionary allowance form Original signed Application to purchase Foreign Currency Form (BOP) Originally signed and certified KYC documentation STEP 5: Know Your Client (KYC) documentation These are the minimum documents that are required for individuals and entities For individuals A legible, valid, originally certified copy of passport or national identification document, showing a specimen signature and a photograph of each applicant The photograph must also be confirmed a true likeness to the applicant An original or originally certified document to verify the permanent residential address of each applicant, i.e. a recent bank statement or a recent utility bill (less than three months old) For specific details on the certification of documents please refer to the Additional Information section. Please note: If funds are coming from a Standard Bank account, STANLIB will debit the investor s account and subsequently transfer the funds offshore. However, should the funds be coming from any other financial institution, we require an original cheque (maximum amount to be transferred by cheque R ) addressed to STANLIB FUND MANAGER JERSEY LIMITED. If the investment amount exceeds R (coming from any other financial institution), the investor will have to request his/her bank to facilitate the transfer of funds to the STANLIB Fund Managers Jersey Limited bank account. For other entities (i.e. trusts, companies or nominees) Please contact STANLIB at wmoffshorequerysupport.stanlib@stanlib.com or call our Offshore Support Desk on (SA only) or (international) Submit documentation to: STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, 2076 Please note: The above mentioned steps apply to all new investments and additional investments. However a new investor must complete a STANLIB Offshore Unit Trusts (New Business Application Form) and an additional investor must complete a STANLIB Offshore Unit Trusts (Additional Investments Application Form). Additions The minimum additions ad hoc investment amount is US$1000 or currency equivalent. However if it is a new class fund you are investing in, the minimum initial investment amount is US$2500. To make an additional investment, please complete a STANLIB additional investment form available on Submit documentation to: instructions@stanlib.com Fax: Or post to STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, 2076 Switches The minimum switch amount allowed is US$1 000 or currency equivalent. Once the switch has been completed, there must be at least US$2 500 in the fund to remain active. In addition, if a new fund is selected the minimum investment amount is US$ To switch portfolios, complete a STANLIB Offshore Switch Form and submit to STANLIB. Make sure to complete the Switch between Class Funds section. This form is available on 4

8 Submit documentation to: Fax: Or post to STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, 2076 Please note: When instructing by we will only accept instructions sent by account holder or by your financial adviser. Repurchases Repurchase amounts are paid into any holder s account via an Electronic Funds Transfer (EFT). STANLIB does not make third party payments. To withdraw from an existing STANLIB Offshore fund complete a STANLIB Offshore Repurchase Form and submit it to STANLIB. An original redemption form is required unless you have opted for fax or an electronic indemnity. If you have any queries, please contact STANLIB. Submit documentation to: Fax: (only if you have completed the Facsimile Authority/indemnity section in your original application form) Or post to STANLIB Collective Investments (RF) Limited (STANLIB Offshore Operations) 17 Melrose Boulevard, Melrose Arch, 2196 PO Box 202, Melrose Arch, 2076 Please note: If we receive the instruction before 14h30 Jersey Time on a business day this will be regarded as Day 1 and you will get dealing prices on Day 2 as we operate on forward pricing.we will send a deal confirmation to your financial adviser on Day 2. We will send a contract note to you on Day 3. The contract note displays how many units were sold, the amount raised in payment currency, the exchange rate, the unit price and the settlement date. You will receive your withdrawal amount on Day 7. The funds may take between 48 hours to reflect in your bank account depending on the jurisdiction of your bank account. Additional information Joint holders A maximum of four holders are permitted in an offshore investment. Unit holders have equal rights on the portfolio, whether they are the Principal Holder, the Second Holder, the Third Holder or the Fourth Holder. STANLIB will address all correspondence (statements, etc.) to the Principal Holder or Primary Holder. All holders need to sign instructions (e.g. switches, repurchases), unless the Signing Authority section is ticked on the application form which provides the option for any one holder to sign for all future instructions. In the event of death of any of the holders, the remaining unit holders need to send an original certified copy of the death certificate of the deceased holder. The portfolio will thereafter revert to the surviving investor(s). For sole holdings of less that GBP as at the date of death, or currency equivalent, Jersey Grant of Probate is not required and on receipt of the Letters of Administration, and certified copy of the death certificate, we are able to redeem and release the funds to the executor, or transfer the portfolio to another Unit Holder (if this is a new investor reference should be made to the section above regarding a new investment). For sole holdings in excess GBP as at the date of death, or currency equivalent, Jersey Grant of Probate is required. To assist with this process please visit and visit the Grant of Probate (non-jersey domicile) section. Where an account holder requires a third party to have authority to sign on the investment, we will need an original general Power Of Attorney (POA), which specifies that the POA also applies to jurisdictions outside the Republic of South Africa. We also require proof of identity and verification of residential address for all signatories on the account. Please note: For succession planning, you are able to have up to four holders on an offshore portfolio. 5

9 Tax implications South African residents are liable for Capital Gains Tax (CGT) regardless where their assets are held or disposed of. This means that if there is a gain on your investment, you are liable for CGT. STANLIB does not issue tax certificates for offshore investments, it is up to the investor to declare this gain or loss to SARS. STANLIB does however provide transaction statements for the applicable tax year. This will reflect the activities within the offshore portfolio and any CGT events. You can present this to SARS for CGT calculations. Certification of documents Please note that Certification must clearly show in the form of a stamp with the following information concerning the person who has certified the document(s): Full name of the certifier (printed) Original signature of the certifier Certifier s business or residential address Date of certification Certification wording The suitable certifier must state that the copy document is: Certified as a true copy of the original. Wording for photographic documentation The suitable certifier must state that: The photograph bears a true likeness to (name of individual). Suggested suitable certifiers An employee of Standard Bank, STANLIB or Liberty An officer of an Embassy, Consulate or High Commission of the country of issue of the documentary evidence certified (for clients of Jersey and Mauritius), or of a British Embassy or Consulate (for clients of Isle of Man) A lawyer or notary public who is a member of a recognised professional body Commissioner of Oaths An actuary who is a member of a recognised professional body An accountant who is a member of a recognised professional body Љ Љ A tax adviser who is a member of a recognised professional body An individual who is specifically authorised to undertake certification services, under authority of the Certification and International Trade Committee (in Jersey this service is available through the Jersey Chamber of Commerce) A director, officer, or manager of a regulated financial services business, where that financial services business is operating in a well regulated jurisdiction, or of a branch or subsidiary of a group head quartered in a well regulated jurisdiction which applies group standards to subsidiaries and branches worldwide and tests the application of and compliance with such standards Please note we will not accept certification by a post office official. Documents in a foreign language All key documents in a foreign language must be adequately translated into English so that the significance of the document can be understood. The name and contact details of the qualified translator and the date of the translation must be retained with a record of the translation. STANLIB banking details CURRENCY ACCOUNT HOLDING BANK ACCOUNT NUMBER Sterling (GBP) US Dollars (USD) Euro (EUR) Bank of New York Mellon, London SWIFT: IRVTGB2X Sort-Code: Bank of New York Mellon, New York SWIFT: IRVTUS3N ABA No: Bank of New York Mellon, Frankfurt SWIFT: IRVTDEFX IBAN: DE A/c name: STANLIB Subs and Reds Ac/no: A/c name: STANLIB Subs and Reds Ac/no: IBN: GB53IRVT A/c name: STANLIB Subs and Reds Ac/no: Please ensure payments are remitted in the Fund s base currency. 6

10 Foreign Account Tax Compliance Act (FATCA) The Foreign Account Tax Compliance Act (FATCA) was originally implemented by the US and is aimed at ensuring that US persons with financial assets outside the US are paying the correct amount of US tax. FATCA places obligations on Foreign Financial Institutions (FFIs) to identify and report annually certain information about US persons who own or control financial accounts maintained by the FFIs, ultimately to the IRS. In certain circumstances FFIs may be required to withhold on certain US source income and capital proceeds aid to their investors. More recently the UK has imposed a similar regime on the Crown Dependencies in respect of UK person. The Organisation for Economic Co-operation and Development has obtained assent from many nations to automatically exchange similar information on the tax residents of other assenting nation as under the Common Reporting Standard. STANLIB Fund Managers Jersey Limited, on behalf of STANLIB Offshore Unit Trusts will be complying with these various tax-driven information exchange initiatives. Consequently, as an Investor, you must expect that the information about you will be reported via local tax controllers to tax authorities in the jurisdiction which have assented to comply with these initiatives, in which you are a tax resident. Common Reporting Standard (CRS) The Common Reporting Standard (CRS) requires financial institutions in participating jurisdictions to follow common due diligence procedures and to report specified financial information to their tax authorities, which is then automatically exchanged with other participating jurisdictions. EU member states will start exchanging information automatically for the first time by September Frequently asked questions We have prepared the following questions and answers to clarify certain aspects of the process. Can I have a debit order on my offshore investment? There is no recurring debit order option available for Offshore funds, however, if you have a Standard Bank account we can do a onceoff debit for lump sum instructions. Standing orders can be arranged, but this will need to be discussed with your bankers. Can I add another holder to an existing portfolio? Yes, you can. A portfolio may have a maximum of four account holders. Upon the death of any of the holder the investment will be transferred into the names of the remaining holders (upon receipt of the required documentation). What are the requirements for adding/removing holders? Removing holders Please supply the following: An original instruction signed by all existing holders instructing the removal of a holder Adding holders Please supply the following: An original instruction signed by all existing holders instructing us to add the new holder An original application form signed by all the holders, including the new holder An original/certified ID bearing an original specimen signature of the additional holder An original/certified proof of residence, e.g. utility bill (not older than three months) for the additional holder What are the requirements for an estate late when an investment is valued at over and under at the date of death? In accordance with Jersey law, where a single holder of a portfolio dies, their estate will be subject to Jersey Grant of Probate. This entails an administrative and legal process before the assets can be distributed to beneficiaries. What is Jersey Grant of Probate? This is an official document which the executor needs in order to administer an estate. This is issued by the Jersey courts. Jersey law holds that upon the death of a single holder of an investment, the estate of the deceased will be subject to the Grant of Probate. This can be a lengthy process and costs are involved. Holders of funds domiciled in Jersey valued at less than are exempt from Jersey Grant of Probate. If the Investor s total assets are or more, and its a sole portfolio an application for Jersey Grant of Probate must be made by a Jersey solicitor or advocate. What can you do to avoid Probate? You can add additional holders to your portfolio. A maximum of four joint holders are allowed on any portfolio. When joint holders are added to a portfolio and any one of them passes away, the investment will continue in the names of the remaining joint holders to which they all have equal rights to the investment. By adding joint holders to the investment, the investment ownership will pass to all remaining unit holders, giving each holder equal rights over the investment. 7

11 What authority do joint account holders have? The application form has a joint investor signing Authority box and if this is not ticked it indicates that all the holders have to sign any instructions. Should this however be ticked, any one of the holders can sign any instructions. Should the holders require specific signing authority (e.g. only Holder 1 and 4 can sign instructions), we require an instruction advising as such. This instruction must be signed by all the holders. Does STANLIB accept funds from another investment house and can the proceeds of an investment be transferred to another investment house? Yes, we do. This is a third party payment exception as STANLIB will only make third party payments when you are switching your investment from one Management Company to another. Confirmation from the Management Company will be necessary i.e. a copy of the application form. We require a STANLIB Offshore Repurchase Form as well as a copy of the new Management Company application form and banking details. We require the same documentation as for a new business investment together with a copy of your repurchase form from the management company. For repurchases, can the funds be paid out to the bank account of one of the additional holders or can it only be paid to the main holder s account? Proceeds from repurchases can be paid to any holder s bank account provided it is in their name. If an instruction is received after the Jersey 14h30 cut-off time, what dealing date will I receive? Switch and repurchase We will only process instructions the next day. You will therefore receive the unit price for the next dealing day. New business When the cleared funds are received in the Jersey bank account prior to the Jersey 14h30 cut-off you will receive the unit price for the next dealing day. What fees are charged for transferring funds from an offshore repurchase? The fund manager does not charge transfer fees from an offshore investment. However, corresponding banks may charge and the managers bankers apply a small electronic transfer fee of US $10 -, or currency equivalent. Does STANLIB provide tax certificates for offshore? No, STANLIB does not issue tax certificates to offshore investors. All income is retained by the fund and contributes to the increasing value of the fund, which in turn results in an increase in the value of the investment. Foreign dividends have become taxable in the hands of South African residents since 23 February Due to the specific structure of investments for the unit holders, the holders receive capitalisation units and not dividends. Therefore in terms of the current South African tax law, South African investors in STANLIB Offshore funds earn non-taxable income while they remain invested in the fund

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13 17 Melrose Boulevard Melrose Arch 2196 PO Box 203 Melrose Arch 2076 T (SA only) T +27 (0) E contact@stanlib.com W stanlib.com GPS coordinates S , E W