CityPress - - Business -


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.


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.

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