This product is also available in the Stratus Premier range. For Stratus/Stratus Premier Composite Annuity, the minimum investment amount is R115 000. You can choose between all the Stratus investment funds, as well as a range of unit trust funds.

You're retiring, but still bursting with life and energy. If this describes your current situation, you most likely need an income for the next couple of years. Your retirement could last as long as 15, 20, even 25 years. Wouldn't it be great if you could get some capital growth while in retirement, but also some kind of guaranteed income?

 

Now this is possible with Sanlam's Stratus Composite Annuity.  It gives you the option of purchasing an annuity from your compulsory retirement payout that offers both a guaranteed income for life, and a variable (market related) income that may increase with possible good returns, all in one policy.

 

The Stratus Composite Annuity allows you to invest part of your retirement proceeds (from a Retirement Annuity, retirement, provident or preservation fund) in a range of investment funds, so that you may benefit from possible future investment growth. This is backed by the flexibility and range of investment choices usually available from the Stratus range.

 

Your minimum investment is R115 000. You may switch between available investment funds to suit your changing risk profile and exploit new market opportunities. Your guaranteed income is guaranteed for life and you may select a fixed level of growth in the guaranteed income to combat the eroding effects of inflation.

 

You may select the level of the variable income between 2.5% and 17.5% of the investment in the investment funds. The variable income is drawn from the investment funds. The variable income gives you the opportunity to annually review your lifestyle objectives and income requirements.

 

What's more, currently all interest, dividend, or rental income, as well as capital growth within the investment funds, are exempt from income tax and capital gains tax. The income you receive is taxable at your marginal tax rate. However, lower tax tables and greater deductibility of medical expenses apply to persons over 65.

 

Through your investment in Stratus Composite Annuity, your money is invested in the underlying funds of your choice (listed below). You should ensure that you do a risk assessment based on your retirement needs.  Your financial adviser or your broker is able to assist with such an assessment.  You should also consider obtaining investment advice.

Stratus & Stratus Premier range of funds	Risk level / Asset class
Rand denominated funds
Managed options - Onshore (mainly RSA)
Absolute Return Fund (CPIX + 3%) without guarantee	Conservative
Multi-Manager Absolute Return Fund (CPIX + 3%) without guarantee	Conservative
SIM Managed Conservative Solution	Conservative
Absolute Return Fund (CPIX + 5%) without guarantee	Cautious
Multi-Manager Absolute Return Fund (CPIX + 5%) without guarantee	Cautious
SIM Managed Cautious Solution	Cautious
Balanced Fund (Low equity)	Moderate
Multi-Manager Balanced Fund (Low equity)without guarantee	Moderate
SIM Managed Moderate Solution	Moderate
Balanced Fund (Medium equity)	Moderately aggressive
Multi-Manager Balanced Fund (Medium equity)	Moderately aggressive
SIM Managed Moderately Aggressive Solution	Moderately aggressive
Balanced Fund (High equity)	Aggressive
Multi-Manager Balanced Fund (High equity)	Aggressive
SIM Managed Aggressive Solution	Aggressive
Active building blocks - Onshore (mainly RSA)
Guaranteed Capital Fund	Cash
Bond Fund	Fixed interest
Property Fund	Property
Sanlam Equity Fund	Equity
Multi-Manager Equity Fund	Equity
SIM Money Market Fund	Cash
Managed options - Offshore (100% offshore)
Offshore Balanced Fund	Moderately aggressive **
Active building blocks - Offshore
Offshore Money Market Fund US$	Cash **
Offshore Money Market Fund £	Cash **
Offshore Money Market Fund €	Cash **
Offshore Bond Fund	Fixed interest **
Offshore Property Fund	Property **
Offshore Equity Fund	Equity **

**    Risk level / asset class indicated in terms of the currency in which the investments are made. In rand terms, the risk level is increased because of exchange rate fluctuations.

 

    

Stratus Premier only
Range of additional Investment Funds	Unit trust class
Active Building Blocks - Offshore
Offshore Equity Fund	Equity
Offshore Bond Fund	Fixed Interest
Offshore Equity Fund	Equity
Offshore Money Market Fund ($)	Cash
Offshore Money Market Fund (£)	Cash
Offshore Money Market Fund (€)	Cash
Offshore Property Fund	Property
Unit Trusts - Fixed Inerest - Varied Specialist
Coronation Strategic Income Fund	Unit Trust
Investec Absolute Income Fund	Unit Trust
SIM Active Income Fund	Unit Trust
Unit Trusts - Asset Allocation - Flexible Property
Coronation Property Equity Fund	Unit Trust
Unit Trusts - Asset Allocation - Prudential
Allan Gray Balanced Fund	Unit Trust
Allan Gray Stable Fund	Unit Trust
Coronation Balanced Plus Fund	Unit Trust
Investec Cautious Managed Fund	Unit Trust
Investec Managed Fund	Unit Trust
Nedgroup Managed Fund	Unit Trust
SIM Balanced Fund	Unit Trust
Oasis Crescent Balanced Progressive Fund of Funds	Unit Trust
Unit Trusts - Asset Allocation - Flexible
Element Flexible Fund	Unit Trust
Unit Trusts - Asset Allocation - Targeted Absolute and Real Return
Allan Gray Optimal Fund	Unit Trust
Coronation Absolute Fund	Unit Trust
Old Mutual Dynamic Floor Fund	Unit Trust
SIM Inflation Plus Fund	Unit Trust
Unit Trusts - Equity - General
Allan Gray Equity Fund	Unit Trust
Coronation Equity Fund	Unit Trust
Investec Equity Fund	Unit Trust
Nedgroup Rainmaker Fund	Unit Trust
Oasis Crescent Equity Fund	Unit Trust
SIM General Equity Fund	Unit Trust
Element Islamic Equity Fund	Unit Trust
Element Earth Equity Fund	Unit Trust
Unit Trusts - Equity - Value
SIM Value Fund	Unit Trust
Unit Trusts - Specialist Funds
Old Mutual Mining and Resources Fund	Unit Trust
SIM Industrial Fund	Unit Trust
SIM Small Cap Fund	Unit Trust
Unit Trusts - Global Funds
Sanlam International Defensive Fund of Funds	Unit Trust
Sanlam Global Best Ideas Fund	Unit Trust

 

Know what your investment is worth

 

Sanlam publishes daily performance reports, indicating fluctuations in the unit prices*** of the Stratus investment funds. You may keep track of the value of your investment by multiplying the investment fund price by the number of units Sanlam holds for you.

 

*** This is a long-term policy in terms of the Long-term Insurance Act, 52 of 1998. These units are not units of a unit trust scheme as defined in the Collective Investment Schemes Control Act, 45 of 2002.

 

The risks you face include:

 

• The risk that investment returns may be lower than expected
• The risk that you may live longer than expected.
• If you choose too high a level of income, you may deplete your capital over time.
• If the Stratus Composite Annuity is your only source of income, Sanlam Life advises that the pre-tax selected income should not exceed the medium term inflation outlook plus 2% per annum of the capital.  Currently that means a rate of not more than 8% per annum.
• If you require an income of more than 8% to sustain your lifestyle, you should rather consider a different type of annuity.
• You must make sure that you understand the impact of market fluctuations on your future income.

With the Stratus Composite Annuity, you may pass on your investments to nominees of your choice. In the event of your death, the total value of the underlying investment funds will be available in the form of a living annuity to those you nominate. These nominees also have the option to take an accelerated annuity paid over a minimum period of 5 years. To the degree allowed in terms of the law, this annuity can be commuted within 6 months of your death.  Such a lump sum will be taxable at your average tax rate.

 

Make sure you read the fine print regarding all fees and levies that we charge.

 

Contact details

 

Sales / Product related information: 0860 223 390
Information on existing policies: (021) 917-9002
Fax: (021) 947-9864
Email:  online.advice@sanlam.co.za

 

Please note:

 

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