Glacier International has a proud history of structuring direct foreign currency investments for clients since launching in 2010. Our flagship Global Life Plan is an offshore endowment while the Global Investment Plan is an offshore sinking fund – both policies are issued by the Sanlam Life Insurance Bermuda branch. These have proven to be the structures of choice for South African investors having to deal with issues relating to tax, probate and estate duty when it comes to their offshore investments.
However, research has shown that of the SA financial advisers currently allocating funds offshore, only 20% were making use of the endowment structures, or “wrappers”, while 80% were looking for ease and simplicity.
This led us to develop the Glacier Offshore Investment Plan, a discretionary savings vehicle, which makes investing offshore a lot easier, and also more accessible to more people.
Investment minimums and requirements
The investment has a R100 000 lump sum as a minimum requirement – this compares with the US$25 000 required to access the wrappers. We will also be introducing a recurring additional investment option in the near future.
Although the take-on requirements (e.g. Know Your Customer) are the same as for local investments, the money invested into the Glacier Offshore Investment Plan is externalised and invested in international funds.
How to invest
Investors can either use their Single Discretionary Allowance of R1m or their Foreign Investment Allowance of R10m per year, with tax clearance. They also have the option to transfer an existing offshore investment into this solution. Local trusts and companies can make use of an asset swap option.
In terms of paperwork, there are two main steps – the quote, which sets out the investment options and fees; and the application form, which provides information pertaining to the method of investment. These forms will need to be accompanied by supporting documentation, if and as required.
Other features
Investors have full liquidity at all times as there are no lock-in periods. Individual investors are taxed in their own hands on foreign currency gains and will be issued with a tax certificate which they can include in their returns to SARS.
They can view their investment at any time via the Glacier International website. Those clients who also have local investments with Glacier, will receive integrated reporting on both their local and offshore investments.
In summary
In summary, the Glacier Offshore Investment Plan offers:
- Offshore opportunities across different markets and currencies
- A simpler way to invest offshore, with streamlined processes
- Lower investment minimums than traditionally required
- Simpler take-on business requirements
- Administrative assistance
- Full support from the Glacier Business Development team as well as the call centre.
Click here to access the brochures and to view videos, podcasts and more.
Talk to your clients today about the possibility of including the Glacier Offshore Investment Plan in their investment portfolio.
The Offshore Investment Plan is administered by Glacier Financial Solutions (Pty) Ltd, licensed administrative financial services provider, FSP 770.
The Global Life Plan is an offshore endowment policy and the Global Investment Plan is an offshore sinking fund. Both policies are issued by the Sanlam Life Insurance Bermuda branch.
Glacier Financial Solutions (Pty) Ltd and Sanlam Life Insurance Ltd are licensed financial services providers.
Glacier International is a division of Sanlam Life Insurance Ltd.
