By Jonathan, Co-Manager of SAIF
In uncertain times, it’s understandable that many investors turn to what feels safe — fixed deposits, call accounts, traditional money market funds. But there’s a growing awareness that these solutions, while familiar, may not be as efficient as they seem. In today’s environment, after-tax performance matters more than ever.
At TBI, we’ve co-managed the Sanlam Alternative Income Fund (SAIF) for nearly 18 years with one goal in mind: to offer a better after-tax outcome on cash allocations, without sacrificing liquidity or stability. SAIF is a conservative, well-regulated unit trust that built specifically for high-net-worth individuals, trusts, and corporates who want to manage cash effectively — and keep more of their returns.
A smarter way to manage cash
There’s close to R1 trillion sitting in money market and deposit products in South Africa. And about 25% of total assets under management (according to ASISA) is in cash or cash-like investments. But the tax efficiency of those solutions is often overlooked. Interest income is taxed at up to 45% for individuals and 27% for companies — a significant drag on real returns.
It’s a challenge we see often: investors doing the prudent thing by keeping funds in cash — yet unknowingly allowing tax to erode performance. In the video (see below), I highlighted this very point in response to Eugene’s question about SAIF’s role: the issue isn’t whether money market or call accounts are safe — it’s whether they’re efficient. Once you move up the tax brackets, the drag from tax on interest income becomes too large to ignore.
SAIF is structured to solve that. We focus on generating dividend-based income, sourced from a diversified portfolio of variable rate redeemable preference shares issued by large banks and top-rated financial institutions. These are institutional-grade instruments, now offered through a liquid, retail-accessible fund.
What does this mean for investors?
• Daily liquidity
• Stable capital value (targeted at 100c per unit)
• No fixed-rate or currency exposure
• No market risk
All within a fund rated AA by GCR, with a conservative risk profile, and nearly R8 billion under management.
Built for now — not just in theory
When markets are unpredictable, rates shift and international sentiment toward South Africa is far from settled, SAIF gives investors something reliable: a conservative, tax-smart home for discretionary capital.
Whether you’re advising clients, managing trust income, or allocating excess corporate liquidity, SAIF offers a flexible solution that works alongside your existing cash strategy — or becomes a central part of it.
In the video below, I walk through how SAIF works in practice, what kind of instruments we use, and why it has continued to grow in popularity among South African corporates and high-net-worth clients alike.
Let’s talk income strategy
If you’re looking for tax-efficient income generation, SAIF offers exactly that: a clean, well-regulated solution that that provides investors with more efficient dividend income — with no compromise on access, stability or transparency.
To find out more about the fund or how it could fit into your broader portfolio, get in touch with the TBI Investment Managers team.
Disclaimer: Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CISs are traded at the ruling price and can engage in scrip lending and borrowing. A schedule of fees, charges and maximum commissions is available on request from the Manager. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. There is no guarantee in respect of capital or returns in a portfolio. Representative Office: Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to www.prescient.co.za. The TBI Global Multi-Asset Income Fund is registered and approved under section 65 of CISCA.
