Glacier Investment Plan

Transcription

1 Glacier Investment Plan Why should you invest in this product?... 2 General... 2 The investment... 3 Beneficiaries... 3 Underlying investment options... 3 Own funds and wrap funds... 3 Guaranteed Products... 3 Guaranteed Income Plan... 4 Guaranteed Capital Plan... 4 Income... 4 Debit orders... 4 Phasing-in... 4 Repurchases... 4 Cessions... 4 Tax... 5 Fees... 5 Technical guide for Glacier Investment Plan March 2018 Page 1

2 Why should you invest in this product? Glacier s Investment Plan enables clients (natural persons, trusts, RSA companies, close corporations, partnerships and churches/schools/clubs) to invest and grow their money in a personal investment portfolio, customised according to their individual needs and risk tolerance. The portfolio could include collective investment schemes, guaranteed products and/or shares. Clients can select their own funds, or make use of managed solutions offered by Glacier. General The product can be purchased with discretionary money. Discretionary money is any money that an investor has available, and can even include the net after tax lump sum from the proceeds, or part thereof, of a retirement fund (but only after the relationship with the applicable retirement fund has been severed). This investment solution is not a policy as defined or regulated by the Long-term Insurance Act, The underlying investment value is an asset by virtue of ownership and forms part of the deceased estate for the purposes of distribution at death of the owner of the investment. 1 Product description Minimum capital amount Discretionary Investment R in the case of purchasing shares, the minimum amount could differ depending on the choice of stockbroker Minimum ad hoc R Term Beneficiaries Nominees Lives insured FSCA Categories Not applicable Not allowed Not allowed Not applicable 1.14 or 2.11 Participatory interest in Collective Investment Schemes 1.8 or Securities and instruments: Shares 1 The investment also qualifies as property in terms of section 3(2) of the Estate Duty Act 45 of 1955 for the purposes of estate duty. Technical guide for Glacier Investment Plan March 2018 Page 2

3 The investment Beneficiaries Beneficiaries are not allowed on the Investment Plan. As mentioned above, the investment value forms part of the available deceased estate for distribution at death. The asset will thus devolve upon the legatee indicated in the last will and testament of the investor or upon the heir/s of the estate. For this reason one cannot nominate a beneficiary for ownership in any other manner than in the last will and testament, as this nomination will amount to the drafting of an agreement 2, which contravenes common law principles. Underlying investment options Clients invested in the Investment Plan may invest in shares, collective investment funds and guaranteed products. The stockbrokers allowed for the Investment Plan are: SPW Sasfin Investec Securities PSG Melville Douglas The minimum amount that must remain on the Glacier platform differs from stockbroker to stockbroker. Own funds and wrap funds The client may select any RSA wrap fund indicated on the application form. Guaranteed Products The guaranteed products are offered by Sanlam, and available to investors via the Glacier platform. The options are a: Guaranteed Income Plan or a Guaranteed Capital Plan 2 A pactum successorium is an agreement between living persons that dictate the devolvement of assets upon death and is generally not recognised because it will limit the freedom of testation of the testator. Technical guide for Glacier Investment Plan March 2018 Page 3

4 Guaranteed Income Plan A Guaranteed Income Plan will ensure that the client receives an income for the chosen period (5 15 years) after which the investment is depleted. Guaranteed Capital Plan A Guaranteed Capital Plan is where the client (annuitant) invests a lump sum at the beginning of an investment term (5 years) and Sanlam will guarantee a maturity value that will be paid to the client at the end of the term. Income The client is entitled to an income on this product. All income payments will be paid into the bank account of the client. Note: As a business, Glacier does not allow payments to third parties. Debit orders Recurring premiums (debit orders) are allowed on this product. The money for the debit order can be funded from either the investor or a third party s bank account (provided the third party signs for the recurring premium instruction). Phasing-in The phasing-in option is an investment approach available to the client that allows the client to enter the market during volatile market conditions. Phasing-in allows the client to buy into the market over a period of time, and thus buying into the fund(s) at different unit prices. Repurchases Payments are made directly into the client s bank account. Cessions Collateral and outright cessions are allowed. Technical guide for Glacier Investment Plan March 2018 Page 4

5 Tax Tax Implications Interest taxed in the hands of the investor with R or R exemption Local dividends exempted but DWT applies at 20% Foreign dividends taxed at a maximum of 20% but this is not a withholding tax Estate Duty Implications Asset in the estate Estate duty payable Executor s fees payable If bequeathed to spouse section 4(q) deduction applies CGT triggered when units are sold taxed in the hands of the investor. This means that when funds are withdrawn there will be CGT consequences. Fees Fees for Glacier as well as the intermediary is payable by the investor. Fees are calculated daily, deducted monthly. Intermediary initial fee Negotiable between 0% - 5% Intermediary annual fee Negotiable between 0% - 1% Glacier initial fee Glacier annual fee No Glacier initial fee Sliding scale Score 0.82% DIF 0.70% Surcharge (if invested in shares) Wrap fund fees (wrap funds managed by Glacier) 0.15% on the value of the shares 0.40% annual management fee Technical guide for Glacier Investment Plan March 2018 Page 5