Tax Efficient Investments

Investments
trusteeboard investments

Tax Efficient Investments

The Sanlam Alternative Income Fund, launched in May 2007, is a conservative unit trust managed with an after-tax mind-set. The aim is to produce more tax-efficient returns, than those produced by money market, for a similar level of risk. The fund is designed as a discretionary cash parking bay for high net worth individuals, trusts and companies. TBI Investment Managers expertise in structured finance and tax has allowed us to successfully manage this offering for over 10 years. The Sanlam Alternative Income Fund has consistently outperformed its benchmark over this period.

Suitable investors
Conservative tax paying investors, with a short-term investment horizon, looking for liquidity and higher after-tax returns than those offered by money market funds.

Key features

  • Return consists mainly of dividends with a small interest portion (target of 5% – 15%)
  • Monthly income distributions
  • Stable unit price (no capital gains tax implications)
  • Invests in high quality assets with credit risk to major banking groups and financial institutions.
  • AA- (ZA)(f) national scale fund rating by Global Credit Ratings Co (Pty) Ltd; outlook stable.
  • 24-hour liquidity

The Sanlam Diversified Income Fund of Funds, launched in March 2009, is a conservative unit trust managed with an after-tax mind-set. The aim is to produce more tax-efficient returns, than those produced by money market and enhanced cash funds, for a similar level of risk. The fund is designed as a discretionary cash parking bay for high net worth individuals, trusts and companies. TBI Investment Manager’s expertise in structured finance and tax has allowed us to successfully manage this offering for over 8 years, which has consistently outperformed its benchmark. The fund invests a targeted 60% in the Sanlam Alternative Income Fund, the balance being allocated to income funds and cash.

Suitable investors
Tax paying investors, with an investment horizon of three months or longer, looking for liquidity and higher after-tax returns than those offered by enhanced cash funds.

Key features

  • Return consists mainly of dividends and capital gains with a small portion of interest
  • Monthly income distributions
  • 48-hour liquidity
  • Low risk, with no month-on-month capital drawdowns since inception
  • Available via the Glacier, Momentum and Stanlib Lisps

670 Venture Capital is an open-ended investment company, registered with SARS as a Venture Capital Company in terms of Section 12J of the Income Tax Act. The Company was established to provide investors with superior, portfolio risk-adjusted returns over the long-term. In addition to the aforementioned performance, investors will have the added benefit of enjoying the 100% tax deductibility on their investment made in 670 Ventures. The Company will invest in Qualifying Companies, as defined by Section 12J, geared for growth.

670 Venture Capital is a licensed financial services provider (FSP No. 46653).

Suitable investors
Tax paying investors, with an investment horizon of five to seven years, looking for an actively managed equity investment offering tax deductibility and the prospect of attractive longer-term returns.

Key features

  • 100% tax deductibility on investment made
  • Access to small and medium sized businesses geared for growth
  • Target after-tax return of CPI + 15% per annum over a rolling five-year period, subject to JSE trends
  • 100% of the after-tax consolidated profits and after-tax capital proceeds of realised investments less any settlement of outstanding costs (cash realised) will be distributed as Ordinary Dividends
  • Management team has 25-year track record of achieving attractive returns for their investors