Frequently Asked Questions
For answers to the FAQs, please click on the links below.
Why invest in offshore funds?
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.
What are my risks when investing in offshore investments?
Risk is attached to any investment. Your offshore investment is mainly subject to the following risks:
How does it work?
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).
What are the disadvantages?
Offshore investments are suitable for most investors, but should any of the following be applicable to you, you might consider your investment choice:
For how long should I invest?
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.
Where do I start?
New investors are advised to obtain professional advice from an advisor.
How do I invest internationally?
When does my fund declare income?
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.
How is performance fees calculated?
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.
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