Tailored Solutions
Tailored Solutions
Product Offering
Tax-Free Savings Plan
Introduction
A tax-free savings plan is a simple and tax-efficient savings solution that provides returns that are completely tax free. There are annual and lifetime contribution limits in place, which means that tax benefits are greatly enhanced the earlier an investment is secured.
Benefits
- All growth on this investment is completely tax free, but is subject to legislated contribution limits.
- Tax-Free contributions are limited to up to R36 000 per year, this would mean a maximum monthly debit order of R3 000 and up to R500 000 over the lifetime of the investor. Any amounts contributed which are over these limits will be taxed at 40% tax payable by the investor.
- The maximum contribution to this product being R500 000, is not based on a net account balance, but rather total contributions made during an investor’s lifetime. For example if the investor contributed R100 000 and then withdraws R50 000, the amount contributed during the lifetime stays R100 000. It does not decrease each time a withdrawal is done.
- You can customise your investment portfolio to your needs, financial circumstance and risk appetite.
- All fees levied are completely transparent.
- No initial administration fees are levied on this investment.
- Access to your money (important note: your annual and lifetime contributions will not be reinstated if you withdraw your investment).
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Preservation Plan
Introduction
Preservation plans are easy-to-understand, pre-retirement savings solutions. These plans assist to preserve your savings and allow your retirement savings to continue to grow, once you have left an employer’s pension and/or provident fund.
Benefits
- All growth (capital and income) within this investment is completely tax free.
- Tax neutral transfer of retirement benefits (assuming tax affairs are in order).
- Flexible investment choices – members preserve and grow their retirement benefits already accumulated.
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit trusts
Model Portfolio
Fairtree Cautious Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 3 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Fairtree Balanced Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 5 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Growth Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 6 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Retirement Plan
Introduction
Retirement plans provide individuals with a tax-efficient, easy-to-understand and cost-effective way to save towards their retirement. Contributions can be made via debit order, direct deposit or facilitated by your employer.
Benefits
- Member contributions are tax deductible (subject to legislative limits).
- Flexibility – as an investor, you may choose from a broad range of industry-leading portfolio managers. This ensures that your investment is suited to your personal financial needs, circumstances and risk appetite.
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
- The group contribution option is an extremely cost-effective retirement savings solution for small and medium-sized businesses, that is simple to administer.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Portfolio Illustration
Model Portfolio
The Fairtree Cautious Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 3 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Fairtree Balanced Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 5 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Fairtree Growth Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 6 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Living Annuity Plan
Introduction
A living annuity is a post-retirement savings and income solution that helps you grow your retirement savings while providing you with a regular income. The Living Annuity Plan is underwritten by Hollard Life. We employ a Unique Risk Bucket approach to our strategies.
Benefits
- Growth within your investment is tax-free. You only pay tax on your regular income payments, at your income tax rate.
- You have a diverse range of portfolio options from a range of industry leading portfolio managers.
- Flexible income payments – you can select an income payment of between 2.5% and 17.5% (per annum).
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Your Investment Policy is exempt from estate duty and executor’s fees.
- The value remaining of your investment will be paid out to your specified beneficiaries when you pass away.
- Regular reporting – we provide regular and easy-to-understand investment reports.
- Financial Advisors – You may choose to appoint a Financial Advisor (if required). Alternatively, you can invest directly with Fairtree.
Unit Trusts
Introduction
Our discretionary and unit trust offering, offers a wide range of affordable investment portfolios. Whether your goal is to secure steady income or growth in excess of inflation, diversification through balanced portfolios or more aggressive capital growth, these portfolios are tailored to meet various investment objectives.
Benefits
- Access to various asset classes (domestic and international) and extensive investment management experience.
- Control and flexibility – all fees levied on our portfolios are fully disclosed.
- All fees levied are completely transparent.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit Trusts
Retail Investment Funds
The fund aims to provide maximum long term growth by investing in a diversified blend of worldwide assets and strategies, including alternatives.
This fund is not constrained by Regulation 28 and it is our best opinion on a balanced investment view.
The objective is to provide competitive after inflation annualized returns measured in rand over a 7-year period.
Qualified Investment Funds
The fund aims to provide maximum long term growth by investing in a diversified blend of worldwide assets and strategies, including alternatives.
This fund is not constrained by Regulation 28 and it is our best opinion on a balanced investment view.
The objective is to provide competitive after inflation annualized returns measured in rand over a 7-year period.
Endowment Plan
Introduction
An endowment plan is an investment plan that allows investors to create wealth tax-efficiently. This plan benefits investors with a marginal tax rate greater than 30% and a minimum investment time horizon of 5 years.
- Individuals
- Trusts
- Investors with tax rates greater than 30% will benefit from an investment within an endowment plan.
- Income tax of 30% and capital gains tax (CGT) of 12% applies to individuals and trusts (with natural persons as beneficiaries) within the endowment plan.
- The individual interest and CGT exemptions are not utilised and remain intact.
- Regular withdrawals after the 5-year restriction period may have tax benefits to the investor/plan holder.
- If a person is making regular withdrawals from the endowment plan to supplement their annuity income, the annuity income can be reduced. A reduction in annuity income, which is subject to tax at the investor’s marginal rate, will result in a reduction of the investor’s income tax liability.
- Withdrawals from the endowment plan are treated as capital reductions and are therefore not subject to income tax, but are subject to CGT.
- No capital gains tax (CGT), where the plan is transferred to a nominated beneficiary.
- No executors’ fees where a beneficiary is nominated.
- Plan holder proceeds are transferable directly to the nominated beneficiaries, and therefore are not trapped as part of the frozen assets in the deceased’s estate.
- Estate duty may be applicable.
- During the first 12 months there are no restrictions on the amount that can be contributed.
- From year 2, the maximum allowable contribution is 120% of the total contributions for the previous 2 years (where applicable), whichever is the higher.
- During the first 12 months there are no restrictions on the amount that can be contributed.
- From year 2, the maximum allowable contribution is 120% of the total contributions for the previous 2 years (where applicable), whichever is the higher.
- The endowment plan may be ceded or pledged as security.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit Trusts
Bespoke
Introduction
Our bespoke products allow us to manage unique retail investment solutions for high-net-worth clients. These solutions can be managed through RMB Note structures and/or Investec’s Flexible Investment Hedge structure. This allows actively managed portfolio blends, consisting of: personalised stock portfolios; hedge funds; and traditional units.
Benefits
- Diversification of risk through a blend of multi-managers.
- Diversification of risk through a blend of asset classes like directional equities, bonds, property, cash, ETFs, SMART BETA, index trackers and CIS funds with alternative asset classes and instruments offered by hedge funds.
- Hedge fund exposure inside the portfolio solution is made available through different investment structures.
- Tax-efficient structuring of portfolios.
- Tailored hedging strategy according to your risk appetite and hedging objectives.
Structured notes are a very niche way of investing. The bank issues a note to investors in return for investment capital, which is invested in a selection of strategic underlying investment instruments. The structuring and management of these portfolios is the responsibility of the portfolio manager (Fairtree). It can consist of a single or diversified blend of instruments such as CIS, direct equities, alternatives, index trackers, etc. Traditional and alternative asset classes can be combined to create unique risk return investment portfolios. The client’s risk tolerance, objectives and investment horizon determine the criteria for asset blending and structuring.
Structured notes have been developed primarily for longer term growth objectives and therefore investors should have a minimum 3-year investment horizon when investing. Liquidity is limited to a notice period of 2 calendar months. Because the bank is housing the assets, the investor benefits from the favourable tax benefits: capital gains tax (CGT) is only payable on redemption of the investment (note) and banks are exempt from dividend withholding tax (DWT). The rebalancing of building blocks within the structured note therefore does not qualify as a CGT event. The structure is flexible and can easily be rebalanced to provide for possible changes to the investor’s investment objectives and circumstances.
The product is subject to a minimum initial investment of R250 000 and a minimum ad-hoc tranche of R100 000 per fund or portfolio solution.
Capital gains tax (CGT) implications are a huge hurdle when portfolio managers need to make active investment decisions. This often results in portfolios that take ‘hold-strategies’ and shy away from active management. The Flexible Investment Hedge (FIH) from Investec allows for a tax-efficient mechanism for active management. This in turn brings diversification through blending of local share portfolios, other asset classes and hedging strategies to achieve investment objectives. It is an equity hedging structure that provides investors with the ability to hedge their equity exposure. Benefits:
- Tailored hedging strategy according to your risk appetite and hedging objectives.
- Flexibility to adjust your hedging strategy during the hedging term.
- Ease of transactions to enter and exit hedging positions.
- Investec’s FIH structure reduces costs and constraints associated with traditional equity hedging arrangements.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Portfolio Illustration
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Tax-Free Savings Plan
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Preservation Plan -
Retirement Plan -
Living Annuity Plan -
Unit Trusts -
Endowment Plan
Tax-Free Savings Plan
Introduction
A tax-free savings plan is a simple and tax-efficient savings solution that provides returns that are completely tax free. There are annual and lifetime contribution limits in place, which means that tax benefits are greatly enhanced the earlier an investment is secured.
Benefits
- All growth on this investment is completely tax free, but is subject to legislated contribution limits.
- Tax-Free contributions are limited to up to R36 000 per year, this would mean a maximum monthly debit order of R3 000 and up to R500 000 over the lifetime of the investor. Any amounts contributed which are over these limits will be taxed at 40% tax payable by the investor.
- The maximum contribution to this product being R500 000, is not based on a net account balance, but rather total contributions made during an investor’s lifetime. For example if the investor contributed R100 000 and then withdraws R50 000, the amount contributed during the lifetime stays R100 000. It does not decrease each time a withdrawal is done.
- You can customise your investment portfolio to your needs, financial circumstance and risk appetite.
- All fees levied are completely transparent.
- No initial administration fees are levied on this investment.
- Access to your money (important note: your annual and lifetime contributions will not be reinstated if you withdraw your investment).
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Preservation Plan
Introduction
Preservation plans are easy-to-understand, pre-retirement savings solutions. These plans assist to preserve your savings and allow your retirement savings to continue to grow, once you have left an employer’s pension and/or provident fund.
Benefits
- All growth (capital and income) within this investment is completely tax free.
- Tax neutral transfer of retirement benefits (assuming tax affairs are in order).
- Flexible investment choices – members preserve and grow their retirement benefits already accumulated.
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit trusts
Model Portfolio
Fairtree Cautious Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 3 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Fairtree Balanced Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 5 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Growth Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 6 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Retirement Plan
Introduction
Retirement plans provide individuals with a tax-efficient, easy-to-understand and cost-effective way to save towards their retirement. Contributions can be made via debit order, direct deposit or facilitated by your employer.
Benefits
- Member contributions are tax deductible (subject to legislative limits).
- Flexibility – as an investor, you may choose from a broad range of industry-leading portfolio managers. This ensures that your investment is suited to your personal financial needs, circumstances and risk appetite.
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
- The group contribution option is an extremely cost-effective retirement savings solution for small and medium-sized businesses, that is simple to administer.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Portfolio Illustration
Model Portfolio
The Fairtree Cautious Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 3 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Fairtree Balanced Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 5 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
The Fairtree Growth Multi-Managed Portfolio aims to outperform the benchmark net of investment management fees, over any rolling 6 year period. The portfolio is diversified across the major asset classes utilizing a multi-manager approach, whereby fund managers are combined based on their skills and expertise.
Living Annuity Plan
Introduction
A living annuity is a post-retirement savings and income solution that helps you grow your retirement savings while providing you with a regular income. The Living Annuity Plan is underwritten by Hollard Life. We employ a Unique Risk Bucket approach to our strategies.
Benefits
- Growth within your investment is tax-free. You only pay tax on your regular income payments, at your income tax rate.
- You have a diverse range of portfolio options from a range of industry leading portfolio managers.
- Flexible income payments – you can select an income payment of between 2.5% and 17.5% (per annum).
- Transparency – all fees levied on our portfolios are fully disclosed.
- No initial administration fees are levied on this investment.
- Your Investment Policy is exempt from estate duty and executor’s fees.
- The value remaining of your investment will be paid out to your specified beneficiaries when you pass away.
- Regular reporting – we provide regular and easy-to-understand investment reports.
- Financial Advisors – You may choose to appoint a Financial Advisor (if required). Alternatively, you can invest directly with Fairtree.
Unit Trusts
Introduction
Our discretionary and unit trust offering, offers a wide range of affordable investment portfolios. Whether your goal is to secure steady income or growth in excess of inflation, diversification through balanced portfolios or more aggressive capital growth, these portfolios are tailored to meet various investment objectives.
Benefits
- Access to various asset classes (domestic and international) and extensive investment management experience.
- Control and flexibility – all fees levied on our portfolios are fully disclosed.
- All fees levied are completely transparent.
- No initial administration fees are levied on this investment.
- Financial advisors – you may choose to appoint a financial advisor (if required). Alternatively, you may invest directly with Fairtree.
- Regular reporting – we provide regular and easy-to-understand investment reports.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit Trusts
Retail Investment Funds
The fund aims to provide maximum long term growth by investing in a diversified blend of worldwide assets and strategies, including alternatives.
This fund is not constrained by Regulation 28 and it is our best opinion on a balanced investment view.
The objective is to provide competitive after inflation annualized returns measured in rand over a 7-year period.
Qualified Investment Funds
The fund aims to provide maximum long term growth by investing in a diversified blend of worldwide assets and strategies, including alternatives.
This fund is not constrained by Regulation 28 and it is our best opinion on a balanced investment view.
The objective is to provide competitive after inflation annualized returns measured in rand over a 7-year period.
Endowment Plan
Introduction
An endowment plan is an investment plan that allows investors to create wealth tax-efficiently. This plan benefits investors with a marginal tax rate greater than 30% and a minimum investment time horizon of 5 years.
- Individuals
- Trusts
- Investors with tax rates greater than 30% will benefit from an investment within an endowment plan.
- Income tax of 30% and capital gains tax (CGT) of 12% applies to individuals and trusts (with natural persons as beneficiaries) within the endowment plan.
- The individual interest and CGT exemptions are not utilised and remain intact.
- Regular withdrawals after the 5-year restriction period may have tax benefits to the investor/plan holder.
- If a person is making regular withdrawals from the endowment plan to supplement their annuity income, the annuity income can be reduced. A reduction in annuity income, which is subject to tax at the investor’s marginal rate, will result in a reduction of the investor’s income tax liability.
- Withdrawals from the endowment plan are treated as capital reductions and are therefore not subject to income tax, but are subject to CGT.
- No capital gains tax (CGT), where the plan is transferred to a nominated beneficiary.
- No executors’ fees where a beneficiary is nominated.
- Plan holder proceeds are transferable directly to the nominated beneficiaries, and therefore are not trapped as part of the frozen assets in the deceased’s estate.
- Estate duty may be applicable.
- During the first 12 months there are no restrictions on the amount that can be contributed.
- From year 2, the maximum allowable contribution is 120% of the total contributions for the previous 2 years (where applicable), whichever is the higher.
- During the first 12 months there are no restrictions on the amount that can be contributed.
- From year 2, the maximum allowable contribution is 120% of the total contributions for the previous 2 years (where applicable), whichever is the higher.
- The endowment plan may be ceded or pledged as security.
Portfolio Sheets
MDD/Fund Fact Sheet publishing
Unit Trusts
Need A Custom-Made Portfolio?
