SOUTH AFRICAN INVESTMENT MEETS - Hereford Group · 2018-07-26 · STANLIB manages and administers...

OFFSHORE INVESTING

SOUTH AFRICAN INVESTMENT MEETS GLOBAL OPPORTUNITY.

1 OFFSHORE INVESTING

WELCOME TO THE EXCITING WORLD OF OFFSHORE INVESTING.

Guard against uncertain economic policy

Retire abroad

Diversify your investments

Protect against currency fluctuations

Travel abroad Afford overseas tuition

Benefit from tax advantages

Now you can benefit from the best of both Liberty and STANLIB by growing your wealth in Africa and across the globe. Through our relationships with STANLIB Asset Management and Standard Bank, we are able to give you access to leading companies and industries through direct offshore investments via unit trusts or a life insurance investment. Our offshore proposition also allows you to:

OFFSHORE INVESTING 2

WHY YOU SHOULD CONSIDER INVESTING OFFSHORE WITH LIBERTYWith globalisation becoming an increasingly significant factor in both investment markets and our daily lives, investing globally has become an essential part of building a diversified portfolio. By investing with Liberty, you are not only able to take advantage of global investment opportunities and benefit from holding investments in other currencies at no additional cost. You will also gain from the following:

STRONG BRANDLiberty has been a leading financial services brand for over 50 years with representation in 16 African countries. We have dedicated teams to guide you through this process and make investing offshore as easy as possible.

ACCESS TO BOUTIQUE FUND MANAGEMENTMelville Douglas is a 100% owned subsidiary of the Standard Bank Group. They manage portfolios on behalf of high net worth individuals, company directors and family trusts.

WORLD CLASS PARTNERSHIPSThrough our asset manager STANLIB and in partnership with our leading partners, you are able to access a global range of investment opportunities with some of the biggest international household names in the asset management industry: Brandywine Global Investments, Columbia Threadneedle Investments and Fidelity Worldwide Investments.

INVESTMENT OPPORTUNITIES Through Liberty you can now invest in offshore trackers, these include equity, bond and cash trackers. The convenience and tax benefit of our endowment wrapper is attractive to many investors.

ACCESS OFFSHORE BANK ACCOUNTSOur relationship with Standard Bank allows you to set-up a flexible range of current and savings accounts to help you create an offshore base from which you can start investing in any major currency.

OUR WORLD CLASS PARTNERSIt is our view that each investment area requires different skills and approaches and hence we partner with experienced offshore asset managers who share our valuation-driven approach.

SINGLE MANAGER FUNDS

COLUMBIA THREADNEEDLEOn our behalf, STANLIB has partnered with Columbia Threadneedle Investments, which is the global brand name of the Columbia and Threadneedle group of companies. You can benefit from global investment perspectives which harness the resources, experience and scale of one of the world’s largest asset management groups.

Their priority is the investment success of their clients. They aim to deliver the investment outcomes their clients expect through an investment approach that is team-based, performance- driven and risk-aware. Their culture is dynamic and interactive. By sharing their insights across asset classes and geographies they generate richer perspectives on global, regional and local investment landscapes. The ability to exchange and debate investment ideas in a collaborative environment enriches their teams’ investment processes. More importantly, it results in better informed investment decisions for their clients.

Columbia Threadneedle has 2000 professionals located across 18 countries, responsible for more than US$472 billion in assets (as at 31 December 2015).

EQUITY FUNDSThe funds managed by Columbia Threadneedle are as follows:

STANLIB Global Balanced Fund (USD) STANLIB Global Balanced Cautious Fund (USD) STANLIB Global Equity Fund (USD) STANLIB Global European Equity Fund (EUR) STANLIB Global Emerging Markets Fund (USD)

BRANDYWINE GLOBAL INVESTMENT MANAGEMENTSTANLIB has partnered with Brandywine Global Investments, a boutique fixed interest asset manager, to manage our global fixed interest portfolios. Founded in 1986, Brandywine Global Investment Management manages US$69 billion in assets (as at 31 December 2015). Their mission, to seek value not yet recognised by others, is the core principle behind their work and is reflected in their culture, strategy and day-to-day decision-making process. Brandywine applies a top-down, value-driven process when structuring global income portfolios. Real (inflation-adjusted) yield is their primary measure of value. Currency valuation is next in importance, as the real yield must be captured in US dollars. They focus on appreciating, undervalued currencies and overvalued currencies that can be hedged. Inflation trends, political risks, monetary trends, and business cycle and liquidity measures are also considered. Brandywine typically concentrate investments in 8-16 countries that appear to offer the best total return potential.

BOND FUNDThe fund managed by Brandywine is as follows:

STANLIB Global Bond Fund (USD)



FIDELITY WORLDWIDE INVESTMENTSSTANLIB has partnered with Fidelity Worldwide Investments to manage our offshore cash portfolios. Fidelity International and its subsidiaries manage assets worth US$285 billion (as at 31 March 2015). The cornerstone of Fidelity’s investment approach is research. Their analysts and fund managers visit companies, meet their managers and talk to suppliers, customers and distributors, giving the investment team a clear 360° view of each company they invest in.

CASH FUNDThe funds managed by Fidelity Worldwide Investments are as follows:

STANLIB Euro Cash Fund STANLIB Sterling Cash Fund STANLIB US Dollar Cash Fund

MELVILLE DOUGLASMelville Douglas was established in 1983 to provide a customised asset management service through a full discretionary portfolio mandate. The primary focus of the business is the provision of personalised investment management services to high net worth individuals.

Melville Douglas is a 100% owned subsidiary of the Standard Bank Group. They manage portfolios on behalf of high net worth individuals, company directors and family trusts, with assets of approximately R35 billion under management (as at 31 December 2015).

They offer their clients a bespoke portfolio, customised to suit their specific needs and objectives, by judicious investment in shares, bonds, property and cash. Their revenue is derived exclusively from investment management fees, which enables the portfolio management team to focus solely on investment performance.

FUNDSThe fund managed by Melville Douglas is as follows:

Melville Douglas Select - Global Equity Fund (USD)

STANLIB ASSET MANAGEMENTSTANLIB manages and administers over R579 billion (as at 31 December 2015) worth of assets over 437 000 retail and institutional clients and clients and has a presence in ten African countries. They have a proud heritage and more than a 1 200 years collective experience in their investment team. They recognise that no two clients are the same and that they all have different investment goals. As such, there is no ‘one size fits’ all investment solution for clients. They therefore have a broad investment offering for clients and employ a diverse team of investment professionals who manage their clients’ assets.

PROPERTY FUNDThe fund managed by STANLIB is as follows:

STANLIB Global Property Fund (USD)

OFFSHORE BANKING

STANDARD BANK OFFSHORE BANKINGStandard Bank’s offshore banking provides a safe environment for you to conduct international banking through multi-currency accounts. With offshore banking:

You have access to a range of options that will allow you to diversify your finances and Diversify currency risk and provide a base for onward investment

You will also benefit from Standard Bank’s expertise, gained from many years of meeting the offshore banking needs of their clients around the world through Banking, Lending, Capital Protected Investments, a broad range of funds (Unit Trusts), Asset Management and Fiduciary Services. THE OFFSHORE OFFERING:

Low minimum - £4000, $6000, €6000 or AU$ 6000 International bank account and offshore Visa debit card No annual maintenance fee subject to minimum balance No account opening costs Internet banking Mobile banking

AWARDS* Best International Bank Group - 2009, 2011, 2013, 2014 & 2015 Best International Structured Products Provider – 2011, 2012, 2013, 2014 & 2015 Best Expatriate Bank - 2012

* Professional Adviser - International Fund & Product Awards



GLOBAL PORTFOLIO RANGE SUMMARY

HOW TO INVEST GLOBALLYWhen investing in our foreign domiciled portfolios which are denominated in foreign currencies, you will be investing in our Jersey-based foreign denominated portfolios.

BENEFITS OF FOREIGN ALLOWANCE PORTFOLIOS: Foreign allowance investments are subject to a R10 million maximum per individual per annum Useful for South African residents who already have money offshore or would like to use their foreign allowance Foreign currency investments makes it easy for you to transact with foreign accounts, as long as those accounts are in your name Investing in portfolios denominated in foreign currency offers protection against a depreciation in the rand

With Liberty, access to world class foreign asset managers and foreign trackers at a very low cost Ability to make a withdraw at no cost

ADDITIONAL THINGS TO CONSIDERWHO QUALIFIES?

You need to be a natural person. Natural persons are regarded as South African residents if they were born in South Africa and llived in the country all their life, or foreign nationals who have taken up permanent residency in South Africa and have been living in the country for more than five years

You can transfer a maximum of R11 million (R10 million foreign investment allowance and a R1 million discretionary allowance) per calendar year from South Africa, without special approval from the SARB. It is also possible to transfer amounts greater than this subject to a special approval application with the SARB

LIBERTY OFFERS A RANGE OF GLOBAL FUNDS

Managed by Liberty

Managed by Fidelity Worldwide Investments

Managed by Brandywine Global Investments

Managed by Melville DouglasInvestments

Managed by Columbia Threadneedle Investments

Managed by Columbia Threadneedle Investments

Managed by STANLIB Asset Management Limited

Tracker Cash Global Bonds Equity Equity Asset Allocation Property

Liberty US Dollar Cash Tracker

STANLIB Euro Cash Fund

STANLIB Global Bond Fund

Melville Douglas Select - Global Equity Fund (USD)

STANLIB Global Equity Fund

STANLIB Global Balanced Fund

STANLIB Global Property Fund

Liberty Euro Cash Tracker

STANLIB Sterling Cash Fund

STANLIB Global Emerging Markets Fund

STANLIB Global Balanced Cautious Fund

Liberty Global Equity Tracker

STANLIB US Dollar Cash Fund

STANLIB European Equity Fund

Liberty Global Bond Tracker


NOTE:The intermediary Initial Advice Fee is negotiable with your financial adviser.The figures in the above table exclude South African VAT of 14%.Please note: For further information please see the Investing offshore guide which can be found on www.stanlib.com

FOREIGN CURRENCY PORTFOLIO

Fund Name and Share Class Annual Management Charge

STANLIB Sterling Cash fund (GBP) 0.25%

STANLIB US Dollar Cash Fund (USD) 0.25%

Melville Douglas Equity Fund (USD) 1.2%

STANLIB Global Emerging Markets Fund B1 1.20%

STANLIB Global Equity Fund B1 1.10%

STANLIB Global Bond Fund B1 0.90%

STANLIB European Equity Fund B1 1.20%

STANLIB Global Balanced Cautious Fund B1 1.10%

STANLIB Global Balanced Fund B1 1.10%

STANLIB Global Property Fund B1 1.00%

Liberty Sterling Cash Tracker (USD) 0.15%

Liberty US Dollar Cash Tracker (USD) 0.15%

Liberty MSCI (or similar) Equity Tracker (USD) 0.50%

Liberty Global Bond Tracker (USD) 0.30%

CHARGES

ADVANTAGES AND BENEFITS OF INVESTING OFFSHORE WITH LIBERTYBLUE CHIP ASSET MANAGEMENT COMPANIES LOOKING AFTER YOUR INTERESTS EVERY STEP OF THE WAY

Through STANLIB, and in partnership with our global partners, you are able to access best of breed expertise within the field of single funds

ACCESS TO AN OFFSHORE BANK ACCOUNT Standard Bank offers you access to an award winning offshore team and various services Offshore banking provides a safe environment for you to conduct international banking through multi-currency accounts You have access to a range of options that will allow you to diversify your finances and minimise currency risk. It also provides

a base for onward investment Your offshore banking can be done through our 24/7 internet banking and Standard Bank mobile banking application

TAX IMPLICATIONS If you want to invest in STANLIB’s direct offshore unit trust, the investment will form part of your South African estate. STANLIB

direct offshore unit trusts are ‘roll up’ funds meaning all income type returns generated from investments are reinvested into the fund. However, you will be taxed on capital gains (CGT) if you switch funds from one portfolio to another. Also, as a direct investor you will be subject to CGT on withdrawal.

When you invest via the Liberty Offshore Investment Plan, the investment is taxed at a rate of 30%, versus the highest marginal tax rate of 41%. Since the investment is in a 5 year endowment wrapper, the tax is paid by Liberty and no further tax (such as CGT) is attracted in your hands on withdrawal or maturity.

HOW MUCH SHOULD YOU INVEST GLOBALLY?This is mostly dependent on your unique situation, taking many factors into account such as your risk profile, investment objective, expected time horizon and appetite to invest globally into account.

GUIDELINE MIX FOR DOMESTIC AND GLOBAL FUNDSThe optimal mix for offshore exposure is dependent on your particular risk profile. The risk profile graphic below sets out the optimal combinations of domestic and offshore exposure. The guideline mix of assets for the different risk profiles are based on a balanced global portfolio of 60% equities, 25% bonds, 10% property and 5% cash.

Domestic 94%Global 6%





CONSERVATIVEMODERATELY

CONSERVATIVEMODERATELY AGGRESSIVE AGGRESSIVEMODERATE



WHAT IS IMPORTANT TO REMEMBER? Investing offshore is not without risk. Apart from the added risk of currency fluctuations, other regions of the world also have risks of their own. Your money may or may not grow based on the returns earned in the various offshore destinations, plus the increase or decrease in exchange rates.

Investing offshore depends on many different factors and it is therefore best to discuss this with your financial adviser and understand fully what your risk appetite and investment objective is to determine how much of your investable assets should be exposed to global markets.

WHAT YOU WILL NEED TO BRING TO START YOUR INVESTMENT OFFSHORE CHECK LIST OF DOCUMENTS REQUIRED:In order to start investing offshore, please make sure you have these document available.

IDENTIFICATION DOCUMENT: 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. The commissioner of oath needs to write this on the copy and sign An original or originally certified document to verify the permanent residential address of each applicant A recent bank statement OR A recent utility bill (less than three months old)

FORMS NEEDED:The following requirements are for South African investors making use of their R11 million allowance:

STANLIB Offshore Unit Trusts Application Form completed by all applicants Proof of payment Tax Clearance Certificate* Balance of Payment (BoP) Form* Discretionary Allowance Form (should you decide to use your R1 million discretionary allowance to invest offshore)

* Only required for money moving offshore from SA

FOR MORE INFORMATION PLEASE CONTACT YOUR LIBERTY FINANCIAL ADVISER, CONTACT OUR CALL CENTRE ON 0860 456 789 OR VISIT WWW.LIBERTY.CO.ZA

For more information please contact your Liberty financial adviser, contact our call centre on 0860 456 789 or visit www.liberty.co.za

LibertyLiberty Group Limited Registration number 57/02788/06Ameshoff Street, Braamfontein PO Box 10499, Johannesburg 2000

Disclaimer and Statutory DisclosureThe price of each unit of a domestic money market portfolio is aimed at a constant value. The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the portfolio. Collective Investment Schemes in Securities (CIS) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. An investment in the participations of a CIS in securities is not the same as a deposit with a banking institution. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from STANLIB Collective Investments (RF) Limited (the Manager). Commission and incentives may be paid and if so, would be included in the overall costs. A fund of funds is a portfolio that invests in portfolios of collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Liberty is a full member of the Association for Savings and Investments of South Africa. The Manager is a member of the Liberty Group of Companies.

The Portfolios of the STANLIB Offshore Unit Trusts scheme, are Feeder Fund Portfolios which only invest in the participatory interests of a single Portfolio of a collective investment scheme. In addition to the annual management charge, other fees are incurred by the trust (trustee, custodian and general expenses). There is no sales tax applicable in Jersey.

Commission and incentives may be paid and if so, are included in the overall costs. A schedule of fees and charges and maximum commissions is available on request from STANLIB Fund Managers Jersey Limited, (“the Manager”). The portfolios of STANLIB Offshore Unit Trusts scheme are accumulation portfolios and do not distribute income. Please refer to the prospectus of this scheme for more details, a copy of which is available on request from STANLIB Collective Investments (RF) Limited, (“STANLIB”), the address of which is 17 Melrose Boulevard, Melrose Arch, 2196, South Africa. The registered office of the Manager is Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, Channel Islands. The Trustees are Capita Trust Company (Jersey) Limited, 12 Castle Street, St. Helier, Jersey, Channel Islands. STANLIB Fund Managers Jersey Limited and Capita Trust Company (Jersey) Limited are regulated by the Jersey Financial Services Commission to conduct Funds Service Business and is a wholly owned subsidiary of Standard Bank Offshore Group Limited, whose registered office is 47-49 La Motte Street, St Helier, Jersey, JE2 45Z.

STANLIB Collective Investments (RF) Limited Reg. No. 1969/003468/06Compliance number: 3186HX

The Liberty Offshore Investment Plan is underwritten by Liberty Group Limited (Jersey Branch).Liberty Group Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (no 2409).©Liberty Group Ltd 2016. All rights reserved.

SOUTH AFRICAN INVESTMENT MEETS - Hereford Group · 2018-07-26 · STANLIB manages and administers...

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Transcript of SOUTH AFRICAN INVESTMENT MEETS - Hereford Group · 2018-07-26 · STANLIB manages and administers...