Investment vehicle for the well-heeled
IF YOU are one of the few investors able to invest close to half-a-million rand offshore, the launch of Old Mutual International's Elite Personal Portfolio Service offers you a new offshore investment avenue.
Old Mutual launched its upmarket investment product this week. It really is an investment for the elite: the minimum amount that can be invested in the Elite Personal Portfolio Service is £75 000 or $100 000.
Elite clients will invest their money through a Dublin-registered umbrella fund run by Old Mutual Fund Managers in Ireland. The umbrella fund will invest in both in-house and external funds.
Investors have a choice of seven investment portfolios split into four categories according to their risk level.
The liquid portfolios are available in dollar or sterling denominations.
The defensive portfolios are also available in either dollars or sterling, and will invest mainly in fixed interest assets. These portfolios will have a limited exposure (up to 10%) to equities to enhance capital growth.
The growth portfolios, in dollars or sterling, invest only in equities and offer the greatest potential for long-term capital growth, at higher risk.
The aggressive portfolio is offered in dollars only and is designed for investors looking for long-term growth who can handle short-term volatility. This portfolio will have a bias towards emerging markets and thematic funds, which follow specific themes such as global privatisations.
As to costs, there is an establishment fee of 2% (nil for the liquid portfolios), and an annual administration fee of 0.5%. There is also an annual management fee: liquid: 0.75%; defensive: 1%; growth: 1.25%; aggressive: 1.5%.
Additional charges are levied by the underlying unit trust funds. There is also an early withdrawal fee for encashment of your investment in the defensive, growth or aggressive portfolios in the first three years.
SA taxpayers are allowed to invest only R400 000 abroad in terms of exchange control regulations. A married couple could invest R800 000 overseas, provided they have tax clearance.