Frequently Asked Questions

Offshore funds offer you easy access to international markets without needing knowledge or experience of these markets. Collective investments in securities are made up by pooling a lot of people's money, which is then invested by experts shares, bonds, cash and other instruments, depending on the mandate of the fund.

Risk is attached to any investment. Your offshore investment is mainly subject to the following risks:

1. Currency risk: As your investment is made and priced in a currency other than Rand, you are exposed to the volatility of the Rand against other currencies. If the Rand weakens against the base currency of your investment, then you will profit. However, if the Rand strengths against the base currency of your investment, you may have less Rand at the end of the day. The investment manager, because he invests all over the world, also introduces currency risk in the fund.


2. Market and Interest Rate Risk: This is the risk that your investment may go up or down due to the movements of the underlying equities, or interest rate movements which has an effect on your bonds and cash yields. All offshore funds offered by us must first be approved by the FSB. The FSB makes sure that the risk profile of the registered funds are similar to funds offered by SA collective investment schemes companies, concentrating on SA securities.

An investment portfolio is divided into equal shares. Each share represents a direct proportionate interest in every asset in the portfolio. The value of the shares is subject to the rise and decline in the market value of the assets. You purchase shares in the relevant fund and the number you will receive will depend on the amount invested and the ruling share price (the share price is calculated daily at the ruling market values of the various investments in the portfolio).

Offshore investments are suitable for most investors, but should any of the following be applicable to you, you might consider your investment choice:

• If you want to invest for a period less than three years
• If you want to avoid risks at all costs;
• and if you were to invest borrowed money.

Since you are not tied to a specific term by any contract, you may invest for as long as you wish. It is ideal to invest in equity funds for any period longer than five years, although it is also possible to make considerable profit in the short term. If you're looking for a shorter-term investment, an investment in the Bond or Liquidity Funds may be more suitable.

New investors are advised to obtain professional advice from an advisor.

1. Complete the application form. You can download the form by clicking here.


2. Fax the application form, and your proof of identity and residential address to: +27 21 916-1800/1900, and post your originals to:
   Sanlam Collective Investments
   P.O. Box 30
   Sanlamhof
   7532
3. Complete form FIA-001 - Application from a Tax Clearance Certificate or form FIA -002 - Application for recurring foreign investments not exceeding R30 000 per annum. You can also obtain these forms directly from SARS by clicking here.
   
   
   
4. Transfer the investment amount from your SA Bank, or offshore bank account to the bank the following bank. Your SA bank will help you with the transfer.
   Pay to: JP Morgan Chase Bank (CHASUS33) Under direct SWIFT advice to JPMorgan Chase Bank, N.A., CHASGB2L For the account of : JP Morgan Bank, N.A. (CHASGB2L), account 0010962009 For further credit to: Account Name Sanlam Collective Inv Nominee account number 34600001 USD IBAN number: GB62CHA60924234600001
   
   Remember to fax the proof of payments to 27 21 916-1800/1900

Sanlam’s range of UCITS III funds are roll-up funds. This means no distributions are made from the funds. The participatory interests will have to be sold if an investor requires cash. The proceeds of any sale less the base cost thereof will be subject to capital gains tax if the investor held the investment as a capital asset. Otherwise normal income tax will be payable on the net profit.
We charge an administration fee of R400-00 per year (half-yearly in February and August), if shares are held in the Agulhas Nominees, SPI’s nominee company in which all clients’ shares are registered.

The performance fee is calculated and accrued daily, and is equal to a percentage of the difference between the percentage movement in the Net Asset Value per share and the benchmark during the performance period, multiplied by the Net Asset Value of the Fund attributable to a share class after all fees and expenses, except performance fees have been accrued.

If a class has underperformed the benchmark, for a performance period, no performance fees paid out of the assets of a class will be repaid to the class, but no further performance fees will be charged until any underperformance is recaptured by the relevant class.

NB: Net realised and unrealised capital gains and losses are taken into account at valuation point to calculate the performance fees. As a result, performance fees may be paid on unrealised gains which may subsequently never realise.

For further information, please refer to the supplements of the relevant funds.