COMPILED BY NEESA MOODLEY
LIBERTY LAUNCHES OFFSHORE FUND
With the introduction of Liberty’s latest endowment wrapper, you can now invest in foreign equity, bonds and cash tracker funds.
David Lloyd, managing director of innovation at Liberty, says: “By definition, index trackers are much cheaper to invest in compared with active managed funds, but our Offshore Investment Plan is designed with the added benefit of providing access to some of the world’s best active asset managers at a very low cost.”
Through its asset manager Stanlib, and its global partnership network, investors will be able to access global funds such as Brandywine Global, Columbia Threadneedle and Fidelity Worldwide via one investment platform.
Opportunity and the convenience of using a life wrapper aside, other investment avenues such as unit trusts will make the process more expensive in terms of taxes and estate duties.
Lloyd says that, relative to other offshore endowments available on the local market, the administration fee of the Liberty offering is competitive.
After Liberty has paid all taxes, no further levies will be payable in the hand of the taxpayer at withdrawal or maturity.
A South African life assurer is taxed at a much lower rate (30%) than individuals, who are subject to a marginal tax rate of 41%.
From an estate planning perspective, the endowment allows one to directly nominate beneficiaries who will receive the policy directly should the principal member die, and thus avoid paying executor’s fees on the proceeds.
The minimum initial investment value for the new wrapper is $15 000 (R210 000). One can add more to the investment over time depending on legislative restrictions.
Currently, South African residents also have an investment allowance of R10 million per calendar year to invest abroad. Should you want to use this allowance, you need to provide the bank with a tax clearance certificate issued by the SA Revenue Service.
SANLAM PRODUCT OFFERS SOCIAL SAVING
Investment company Sanlam has teamed up with ADDaBIT to offer a financial solution that will allow you to achieve your saving goals by working with others.
It is an ideal answer for families that want to contribute to a largeticket gift for a child this festive season.
Carl Roothman, CEO of retail at Sanlam Investments, says that to register, you need to supply: Your first and last names; A password that consists of a minimum of eight characters, including at least one numeric digit and one upper case letter; and
A unique and valid email address that will be your username. You will log in to ADDaBIT using this email address and your password.
Once you have registered, you will be asked to capture additional information, including:
Uploading an image of your ID or passport;
Uploading an image of a utility bill in your name that shows your home address (this must be less than three months old);
A sample signature to validate the disinvestment documentation that will need to be signed by you; and
Your cellphone number, should you wish to receive SMS notifications and one-time PINs on your phone and not your email address.
If you choose to add your child or anyone else as a beneficiary on your profile, you will need to supply their first and last names, their email address and their date of birth.