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THE BENEFITS OF A CUSTOMISED
WEALTH STRATEGY
High net worth investors have unique goals, challenges and ambitions and often require customised solutions to grow and preserve their wealth – solutions going above and beyond conventional investment management. Sanlam Private Wealth’s Regional Head: Southern Cape, Lentsoane Lekalakala, and Chief Investment Officer, David Lerche, consider the benefits of a customised wealth strategy.
LENTSOANE: As a private client, you’ll in most cases need a bespoke wealth plan designed specifically for you and your family, taking into account your financial reality, aspirations and risk profile. What does a customised wealth strategy include?
DAVID: A bespoke wealth plan for a discerning individual or family is essentially an end-to-end solution which could include anything from minor investment portfolio customisation to global estate planning, cross-geographical tax structuring and a strategy to ensure the orderly transfer and preservation of your wealth for future generations.
At Sanlam Private Wealth, we’ll work closely with you to craft customised, integrated wealth solutions, starting with an investment portfolio designed around your individual risk profile and investment objectives. Whether you wish to grow and preserve your overall wealth, invest for retirement, safeguard your income after retirement, invest offshore, or invest in a Shariah-compliant portfolio, we’ll customise your portfolio as part of your overall wealth plan to suit your needs and circumstances.
LENTSOANE: How does a bespoke private client portfolio differ from a collective investment scheme, also known as a unit trust fund?
DAVID: The main benefits of a customised portfolio include:
A simple example: if you already have a large portion of your wealth in a business you own or run, for instance, in the clothing retail sector, you may not want your discretionary savings to have additional exposure to that sector, or to a competitor.
While you may prefer a customised portfolio with a traditional investment strategy focused on equities, fixed income and cash, we can also give you access to alternative asset classes previously available only to institutional investors. These could include hedge funds, private equity and private credit.
LENTSOANE: A critical aspect of wealth management, especially across multiple jurisdictions, is global estate planning. Why is it so important, especially if you have both local and offshore investment structures?
DAVID: Estate planning is a crucial part of ensuring the smooth transfer of your wealth to the next generation. It’s important to remember that each person’s estate plan is unique, and it’s about so much more than just estate duty and tax. It’s a highly complex area of expertise, and there are many factors to be taken into account, so it’s paramount to obtain expert advice to ensure that there are no nasty surprises for your beneficiaries when your estate gets wound up.
This becomes even more important if your beneficiaries live in another country.
Taking into account your financial assets and liabilities, proper estate planning can provide an excellent opportunity to restructure your wealth through, for example, local and offshore trusts. As part of your integrated wealth strategy, the Sanlam Private Wealth fiduciary and tax experts can assist you in setting up and managing local and offshore trusts, global tax structuring and estate planning, as well as administrative tax compliance services.
LENTSOANE: Does a customised wealth plan include access to equity-backed finance, where investors with existing equity portfolios can use them as collateral for a loan?
DAVID: Yes, as a Sanlam Private Wealth client, you have the option of using your equity portfolio to secure finance or arrange a short-term guarantee. The service is fast and flexible, and offered at highly competitive rates. This can be particularly useful for investors who may need quick access to capital and don’t wish to liquidate an investment portfolio in order to sidestep the cumbersome process of applying for a bank loan.
One final point: it’s important to note that a customised wealth strategy is not a once-off event. It is a dynamic plan which should be reviewed regularly – it will evolve in line with changes in your life circumstances and your goals, as well as market conditions.
When formulating your investment strategy, we focus on your specific needs, life stage and risk appetite.
Greg Stothart has spent 16 years in Investment Management.
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Sanlam Private Wealth (Pty) Ltd, registration number 2000/023234/07, is a licensed Financial Services Provider (FSP 37473), a registered Credit Provider (NCRCP1867) and a member of the Johannesburg Stock Exchange (‘SPW’).
MANDATORY DISCLOSURE
All reasonable steps have been taken to ensure that the information on this website is accurate. The information does not constitute financial advice as contemplated in terms of FAIS. Professional financial advice should always be sought before making an investment decision.
INVESTMENT PORTFOLIOS
Participation in Sanlam Private Wealth Portfolios is a medium to long-term investment. The value of portfolios is subject to fluctuation and past performance is not a guide to future performance. Calculations are based on a lump sum investment with gross income reinvested on the ex-dividend date. The net of fee calculation assumes a 1.15% annual management charge and total trading costs of 1% (both inclusive of VAT) on the actual portfolio turnover. Actual investment performance will differ based on the fees applicable, the actual investment date and the date of reinvestment of income. A schedule of fees and maximum commissions is available upon request.
COLLECTIVE INVESTMENT SCHEMES
The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium to long-term investments. Past performance is not a guide to future performance, and the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available on request from the manager, Sanlam Collective Investments (RF) Pty Ltd, a registered and approved manager in collective investment schemes in securities (‘Manager’).
Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in a portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of a portfolio and an investor will differ depending on the initial fees applicable, the actual investment date, date of reinvestment of income and dividend withholding tax. Forward pricing is used.
The performance of portfolios depend on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-dividend date. Portfolios may invest in other unit trusts which levy their own fees and may result is a higher fee structure for Sanlam Private Wealth’s portfolios.
All portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No. 45 of 2002. Funds may from time to time invest in foreign countries and may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The manager may close any portfolio to new investors in order to ensure efficient management according to applicable mandates.
The management of portfolios may be outsourced to financial services providers authorised in terms of FAIS.
TREATING CUSTOMERS FAIRLY (TCF)
As a business, Sanlam Private Wealth is committed to the principles of TCF, practicing a specific business philosophy that is based on client-centricity and treating customers fairly. Clients can be confident that TCF is central to what Sanlam Private Wealth does and can be reassured that Sanlam Private Wealth has a holistic wealth management product offering that is tailored to clients’ needs, and service that is of a professional standard.