Preservation Funds

When you make a career move or accept a severance package, you'll soon have to decide what to do with the accrued benefits in your pension or provident fund: do you invest this money in your next business venture? Spend it on a car or holiday? Or do you wisely preserve it for its original purpose - your retirement?

With the Stratus Pension Preserver and the Stratus Provident Preserver you can have a sensible investment opportunity leaving your accrued retirement benefits until you retire.  Just take note: A transfer to a preservation provident fund must be from a provident fund and a transfer to a preservation pension fund must be from a pension fund. Depending on which one of the two apply to you these are the options:

Once you wish to retire from a preservation provident fund, you may take the full benefit as a lump sum.  With the preservation pension fund, you may take up to one-third of the full benefit as a lump sum.  Lump sum benefits are taxed according to a special rates table for retirement and may have a portion that is tax-free.  A compulsory life annuity must be purchased with the remaining two-thirds in the case of the preservation pension fund and the income of this life annuity is fully taxable.

With the money invested in any of the Stratus underlying investment funds listed below, you may switch the money between the various funds as your risk tolerance and needs change. You may also select the optional investment guarantee.  Sanlam Life only accepts single premium investments (minimum R5 000).

Stratus & Stratus Premier range of funds	Risk level / Asset class
Rand denominated funds
Managed options - Onshore (mainly RSA)
Absolute Return Fund (CPIX + 3%)*	Conservative
Multi-Manager Absolute Return Fund (CPIX + 3%)*	Conservative
Absolute Return Fund (CPIX + 5%)*	Cautious
Multi-Manager Absolute Return Fund (CPIX + 5%)*	Cautious
Vesting Bonus Fund	Cautious
Balanced Fund (Low equity) *	Moderate
Multi-Manager Balanced Fund (Low equity) *	Moderate
Balanced Fund (Medium equity)	Moderately aggressive
Multi-Manager Balanced Fund (Medium equity)	Moderately aggressive
Balanced Fund (High equity)	Aggressive
Multi-Manager Balanced Fund (High equity)	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	100% Equities
Managed options - Offshore (100% offshore)
Offshore Balanced Fund (series 2)	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 (series 2)	Equity **

*     Optional guarantees

**    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.

Sanlam Unit Trust Funds	Risk level / Asset class
Managed options - Onshore
SIM Balanced Fund	Moderately aggressive
SIM Inflation Plus Fund	Cautious
SIM Managed Aggressive Solution	Aggressive
SIM Managed Cautious Solution	Cautious
SIM Managed Conservative Solution	Conservative
SIM Managed Moderate Solution	Moderate
SIM Managed Moderately Aggressive Solution	Moderately aggressive
SMMI Conservative Solution	Conservative
SMMI Cautious Solution	Cautious
SMMI Moderate Solution	Moderate
SMMI Moderately Aggressive Solution	Moderately aggressive
SMMI Aggressive Solution	Aggressive
Active Building Blocks - Onshore
Sanlam Alternative Income Fund	Cash
SIM Active Income Fund	Fixed Interest
SIM Financial Fund	Equity
SIM General Equity Fund	Equity
SIM Industrial Fund	Equity
SIM Money Market Fund	Cash
SIM Value Fund	Equity
SIM Small Cap Fund	Equity
SIM Top Choice Equity Fund	Equity
Managed Options - Offshore
Sanlam International Balanced Fund of Funds	Moderate
Sanlam International Defensive Fund of Funds	Conservative
Active Building Blocks - Offshore
Sanlam Global Liquidity Fund	Cash
Sanlam Global Best Ideas Fund	Equity

External Unit Trust Funds	Risk level / Asset class
Managed options - Onshore
Absa Balanced Fund	Medium
Allan Gray Balanced Fund	Moderate
Allan Gray Optimal Fund	Cautious
Allan Gray Stable Fund	Conservative
Coronation Absolute Fund	Moderately aggressive
Coronation Balanced Defensive Fund	Cautious
Coronation Balanced Plus Fund	Moderately aggressive
Coronation Capital Plus Fund	Moderate
Coronation Market Plus Fund	Aggressive
Coronation Optimum Growth Fund	Moderate
Coronation Strategic Income Fund	Conservative
Element Flexible Fund	Moderate
Element Islamic Balanced Fund	Moderate
Investec Cautious Managed Fund	Cautious
Investec Managed Fund	Moderate
Nedgroup Managed Fund	Moderate
Oasis Crescent Balanced Progressive Fund of Funds	Moderate
Old Mutual Dynamic Floor Fund	Cautious
Old Mutual Enhanced Income Fund	Conservative
Active Building Blocks - Onshore
ABSA Select Equity Fund	Equity
Allan Gray Equity Fund	Equity
Allan Gray Money Market Fund	Cash
Coronation Equity Fund	Equity
Coronation Money Market Fund	Cash
Coronation Property Equity Fund	Property
Coronation Top 20	Equity
Element Earth Equity Fund	Equity
Element Islamic Equity Fund	Equity
Foord Equity Fund	Equity
Investec Absolute Income Fund	Fixed Interest
Investec Equity Fund	Equity
Investec Value Fund	Equity
Nedgroup Rainmaker Fund	Equity
Oasis Crescent Equity Fund	Equity
Old Mutual Mining and Resources Fund Class A	Equity
Managed Options - Offshore
Allan Gray Orbis Global Fund of Funds	Moderately aggressive
Investec Global Balanced Fund	Moderately aggressive
Active Building Blocks - Offshore
Allan Gray Orbis Global Equity Feeder Fund	Equity
Investec Worldwide Equity Feeder Fund	Equity

To view all Stratus investment funds, click here.

In the interests of transparency, Sanlam Life will divulge all costs and fees applicable to your investment, as well as the value of your investment.

Stratus with Preservation Funds has no life cover or rider benefits, as the entire investment growth goes towards increasing the value of your lump sum payout and the pension you buy. Legislation also does not allow any cessions - this safeguards the money for your retirement, as creditors cannot claim any of this money.

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