Stratus Investment Linked Pension

This product is also available in the Stratus Premier range. For Stratus/Stratus Premier Investment Linked Pension, the minimum initial sum is R100 000. You can choose between all the Stratus investment funds, as well as a range of unit trust funds.

When your pension or retirement annuity pays out, you are compelled to use at least two thirds of the proceeds to purchase a compulsory pension for life. Which, in effect, means that your money is not yet ready to retire.

 

So don't stand in its way. Invest it in the Stratus Investment Linked Pension and transform your retirement funds into a flexible, personalised investment portfolio that matches your risk profile.

 

You may personalise the level of income you require (between 2.5% and 17.5% of the capital) and also review and adjust this annually on the policy anniversary. Sanlam Life pays your income either monthly, quarterly, half-yearly or annually. To sustain your capital, we suggest your income should not exceed medium term inflation plus 2%.

 

At your death, your beneficiaries may continue the investment for life at the current withdrawal rate or change it to suit their needs. They can even opt to accelerate the pension and have the total fund value paid out over five 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.

 

To benefit from rand cost averaging, you can initially invest the capital in the Sanlam Money Market Unit Trust fund and phase all or some of it into the Stratus funds you choose, monthly over 1 to 36 months. The minimum initial sum is R100 000. 

 

When you invest in the Stratus Investment Linked Pension, you may choose a maximum of 10 funds from the range below. Clicking on any of the funds will open a new browser with comprehensive fund information. 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 review your lifestyle and income requirements at least annually.

Stratus & Stratus Premier range of funds	Risk level / Asset class
Rand denominated funds
Managed options - Onshore (mainly RSA)
Absolute Return Fund (CPI + 3%) without guarantee	Conservative
Multi-Manager Absolute Return Fund (CPI + 3%)without guarantee	Conservative
SIM Managed Conservative Solution	Conservative
Absolute Return Fund (CPI + 5%) without guarantee	Cautious
Multi-Manager Absolute Return Fund (CPI + 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 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 Bond Fund	Fixed Interest
Offshore Equity Fund	Equity
Offshore Money Market Fund (US$)	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 Investments Managed Fund	Unit Trust
SIM Balanced Fund	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 Investments Rainmaker Fund	Unit Trust
SIM General Equity Fund	Unit Trust
Element Islamic Equity Fund	Unit Trust
Unit Trusts - Equity - Value
SIM Value Fund	Unit Trust
Unit Trusts - Specialist Funds
Old Mutual Mining and Resources Fund Class A	Unit Trust
SIM Industrial Fund	Unit Trust
SIM Small Cap Fund	Unit Trust
Unit Trusts - Global Funds
Sanlam International Cautious Fund of Fund	Unit Trust
SIM Global Best Ideas Feeder Fund	Unit Trust

Know what your investment is worth

Sanlam Life 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 Life holds for your benefit.


***  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 or you do not reduce your income when investment performances are lower than expected, you may deplete your capital over time.
  

• If the Stratus Investment Linked Pension 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 an income of more than 8% is required to sustain your lifestyle, you should rather consider a different type of pension. 

• You must make sure that you understand the impact of market fluctuations on your future income.

Notes

• On request, Glacier (who administers the policy on behalf of Sanlam Life) will transfer the Stratus Investment Linked Pension to a living annuity policy or conventional annuity policy issued by another insurer; or to a conventional annuity policy issued by Sanlam Life, provided this meets the requirements of any directive issued by the Registrar of Long-term Insurance.

• 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.

• Income payable to the annuitant is taxable at marginal rates.

• Sanlam Life is the owner of the underlying assets of the Stratus Investment Linked Pension.

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

Contact details

Sales, product-related information and information on existing policies: 021 917-9002
Fax: 021 917-9001
International tel: +27 21 917-9002
International fax: +27 21 917-9001
Email:  stratus@sanlam.co.za

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