1. What does Glacier offer?
2. What are Glacier's minimum investment amounts?
3. Are there any cost advantages to investing through Glacier?
4. What is the difference between a wrap fund, a multi-managed fund and a fund of funds?
5. What are the main differences between a traditional life annuity and an investment linked life annuity(ILLA)?
6. How do I benefit from investing through Glacier if I can invest through a collective investment company at a cheaper rate?
7. Why is the buying price of collective investments via Glacier often lower than at collective investment management companies?
8. Why aren't purchase/ repurchase transactions done at the price of the day on which the instruction is received?
9. Is there anything that can delay my instruction?
10. How soon is my money available in my bank account after a repurchase?
11. How can I withdraw money from a fund?
12. Where can I get regular information on my investment?
13. Can an investor invest offshore through Glacier? What is required?
14. What are the tax implications for discretionary and contractual savings plan products?

1. What does Glacier offer?

Glacier offers a comprehensive, dynamic range of financial solutions suited to the affluent individual, and endorsed by the Sanlam Group. Launched in 2006, Glacier brings together some of the most respected financial services companies as product providers, and gives South Africans the benefit of a truly integrated, focused financial company.

Our solutions are designed to assist in creating and preserving wealth throughout your lifetime, while simplifying your financial affairs.  They provide convenience, flexibility and simplicity.  In essence, Glacier solutions can help you achieve your goals in the best possible way.

The convenience of having us take care of all your financial interests is inestimable.  All your investment instructions are processed at one central point, with accuracy and speed in both the real and virtual worlds. Our systems are continuously developed and modified to integrate the latest technology to your benefit.

All Glacier services and products are individually structured to your requirements, to answer your immediate and future needs.  We offer a wide range of choices, so you can intelligently customise our solutions to meet your financial needs.  You can choose the underlying investments (typically collective investments) and products that, together, best match your risk profile and help you reach your financial goal.

Investors can easily and cost-effectively switch between funds on our platform at any time.  For those who prefer not to choose their own range of collective investments or keep track of the markets, we also offer a range of risk-profiled managed funds.  These funds are compiled and managed by experienced portfolio managers and offer diversification across assets, sectors, regions, funds and fund managers.

All this, with total transparency regarding fees and charges, so you can be sure that you receive the best value for your money at all times.  Our investment products are suited to both pre- and post-retirement investors.

2. What are Glacier's minimum investment amounts?

Investment Plan*	R100 000 lump sum or monthly recurring amounts from R2 500
Endowment	R100 000 lump sum
Global Option	R100 000 lump sum
Retirement Annuity*	R100 000 lump sum or monthly recurring amounts from R2 500
Preservation Funds	R100 000 lump sum
Life Annuity	R100 000 lump sum
Direct Share Portfolios and Private Securities Option	R250 000 lump sum
Retirement fund solutions**	R100 000 lump sum or monthly recurring amounts of R2 500

* You can also invest from R1 000 monthly if you have invested the required minimum lump sum.
**You can also invest from R1 250 monthly if you have invested the required minimum lump sum.

3. Are there any cost advantages to investing through Glacier?

• Competitively-priced short-term insurance for Glacier clients
• Reduced annual management fees on some collective investments
• Tax savings through some of our tax friendly policies and funds
• Fee waivers when transferring your retirement savings from one Glacier solution to another
• Competitive annual fees

 4. What is the difference between a wrap fund, a multi-managed fund and a fund of funds?

What is a Multi-Managed Fund?

This is a fund managed by more than one (external) manager. These investment vehicles are available in three different structures viz. wrap funds, fund of funds or multi manager funds.

What is a wrap fund?

This investment vehicle wraps together a selection of different collective investment schemes. These funds are selected to "match" different investor profiles - for example, an aggressive investor and a risk-averse investor.

A wrap fund is not a registered collective investment scheme. Wrap funds are not unitised and each investor has direct holdings in the underlying unit trusts at all times. If an investor were to withdraw from a wrap fund, they could have the units in the underlying collective investments transferred rather than collect the cash.

What is a Fund of Funds?

This is a collective investment which invests in other collective investment schemes. The funds are governed by the Collective Investment Scheme Control Act and are unitised portfolios.

What is a Multi-Manager portfolio?

This is an investment vehicle which usually invests mainly in segregated portfolios managed by different asset managers, but could also invest in collective investment schemes. A multi-manager portfolio could be structured as a collective investment scheme, or can simply be a portfolio into which life companies or retirement funds invest.

	Fund of Funds (FoF)	Multi Manager CIS Funds (MM)	Wrap Funds
Structure	Use only Collective Investment Schemes (CIS)	Use mainly segregated portfolios, but may have limited exposure (20% of assets) to CIS	Use only Collective Investment Schemes (CIS)
Regulation	Collective Investment Schemes Control Act (CISCA)	Collective Investment Schemes Control Act (CISCA)	FAIS
Taxation	Changes to the underlying portfolios by the multi manager  fund manager will not trigger a CGT event. Disinvestment from the fund triggers a CGT event	Changes to the underlying portfolios by the multi manager  fund manager will not trigger a CGT event. Disinvestment from the fund triggers a CGT event.	Changes to the underlying portfolios by the wrap fund manager will result in a capital gains tax event.
Reporting	A fund of fund is a registered CIS and is obliged to report performance quarterly.	A multi manager CIS fund is a registered CIS and is obliged to report performance quarterly	Wrap funds are not registered and are therefore not obliged to publish performance figures.
Pros	A FoF manager is seamlessly able to switch underlying portfolios as the market dictates. This makes a FoF flexible.	The multi manager in accordance with the objectives and strategy of his/her multi manager fund stipulates the mandates of the underlying portfolios. Segregated portfolios can be far cheaper than CIS which can make the MM fund more cost effective.	A Wrap fund manager is able to switch underlying portfolios as the market dictates. This makes wraps  flexible. Underlying funds are easily recognised and understood as they form part of a manco's retail offering.
Cons	Most FoFs negotiate rebates with the CIS they choose to invest in, which is usually passed on to the fund. However a FoF is still a more expensive option than a multi manager fund which uses segregated portfolios as the underlying building blocks. The underlying investments are less visible to the client.	It can be difficult to switch out of or into a segregated portfolio on short notice because the only investor in the segregated portfolio is the MM fund i.e the entire underlying portfolio may need to be liquidated which can take time.    It may be difficult to use a segregated portfolio as part of an active asset allocation strategy.  Clients often don't recognise that segregated portfolios and retail unit trusts are managed by the same, well known managers they know and find comfort in.	Performance is not always readily available. Changes in the underlying managers triggers a CGT event in the hands of the investor.

5. What are the main differences between a traditional life annuity and an investment linked life annuity(ILLA)?

Flexibility: Unlike a traditional life annuity, an ILLA is flexible, as you can choose the underlying investments. These may include collective investments, shares and fixed interest instruments.

Income: The traditional life annuity underwriter calculates a pension income according to your life expectancy. This may or may not increase annually, depending on the version you choose. With an ILLA investment, you choose your own level of income - between 2.5% and 17.5% of your investment capital per year.

Commutation of benefits on death: The full death benefit of an ILLA can be transferred to your beneficiary/-ies as a life annuity to provide income until the capital is depleted.  The beneficiary/-ies may also choose to accelerate the income over a period of five years.  Depending on the version you choose a traditional life annuity can cease on death, continue until the death of the surviving spouse or offer a guaranteed period of generally 5 or 10 years. Should an annuitant pass away during the guaranteed period, the income payments will continue to their beneficiary/-ies for the remainder of the guaranteed period.

Risk: The underwriter of a traditional life annuity bears the risk of an annuitant outliving his/her life expectancy. If you live beyond your life expectancy, you will continue receiving your pension income until death and the underwriter bears the loss of the extra income paid.

When investing in an ILLA, the risk of outliving their income is borne by the annuitant. You are responsible for maintaining your capital. Should the capital be depleted, you will no longer receive an income.

In the case of a conventional annuity the underwriter bears the investment risk. In the case of an Illa the annuitant bears the investment risk, but will also get the benefit of better than expected investment returns (if any).

6. How do I benefit from investing through Glacier if I can invest through a collective investment company at a cheaper rate?

• Ease of switching
• Potentially reduced cost on switching
• Access to a variety of product structures
• Access to a wide variety of asset managers within the same product

7. Why is the buying price of collective investments via Glacier often lower than at collective investment management companies?

Glacier has negotiated lower initial fees with collective investment management companies, resulting in a lower buying price on many funds. This means you can purchase more units with your capital.  In addition, Glacier is able to offer lower annual fees on investments in collective investments.

8. Why aren't purchase/repurchase transactions done at the price of the day on which the instruction is received?

Whether Glacier processes on the same day, depends on the time that the request was received and the volume of purchase/repurchase instructions received that day. Once processed, an instruction is sent to the relevant management company the next day. The management companies purchase/repurchase at the price on that day.

9. Is there anything that can delay my instruction?

If your instruction is received while any other instruction is in progress on your investment (e.g. switches, new business, repurchasing, cost recoveries, etc.), it may happen that an investment instruction or request will pend until the existing transaction in progress has been priced.

10. How soon is my money available in my bank account after a repurchase?

If you repurchase from a collective investment, your money will be available within a maximum of 4 working days. If you repurchase from a fund of funds, your money will be available after 5 working days. If you repurchase from a money market fund, your money will be available the following working day. As your money is deposited into your bank account via cheque, your bank may hold your money for seven days while the cheque clears.

11. How can I withdraw money from a fund?

To withdraw money, you need to provide a written, signed instruction to Glacier. What you can withdraw depends on the rules of the product. For instance, you may only make one withdrawal from a preservation fund before retirement and you require tax clearance from South African Revenue Services (SARS) to do so. You may not withdraw from a retirement annuity fund before retirement. One can also withdraw electronically via the Internet in the case of discretionary investments.

12. Where can I get regular information on my investment?

You can access your investment details on Secure Services, speak to your financial intermediary or contact our Communication Centre on +27 21 917-9002.

13. Can an investor invest offshore through Glacier? What is required?

Yes. Glacier offers more than 70 foreign currency denominated offshore funds managed by some of the top management companies, as well as global wrap funds. Only natural persons over the age of 18 years, who are registered with SARS for tax purposes, may invest offshore. Your financial intermediary will provide you with the necessary forms to complete, and assist you in obtaining tax clearance from SARS.

14. What are the tax implications for discretionary and contractual savings plan products?

Discretionary investments

The investor is liable for tax on discretionary savings plans at the end of the tax year. Capital Gains Tax is also applicable and is triggered by the disposal of an asset, for example a repurchase from a collective investment.  Subject to certain exemptions allowed in the income tax act, the investor will be taxed on interest and foreign dividends.  Consult your financial advisor or tax consultant for more information.

Contractual products

Tax on the proceeds of contractual savings plans, such as retirement annuities and preservation pension funds, is generally payable on withdrawal and at retirement, according to the normal taxation of retirement funds. Investors with an investment linked life annuity (ILLA) pay tax on their income according to their personal tax scale.

Contributions to Retirement Annuities are tax deductible up to certain limits.  Subject to certain exemptions in the income tax act, the proceeds of your retirement or withdrawal benefits would be subject to tax. 

Exemptions for individuals (2008 – 2009)

• Dividends received or accrued from South African companies are not subject to tax.  A withholding tax of 10% was introduced on 1 October 2007 to replace STC (Secondary Tax on Companies).
• All interest received by or accrued to non-residents is exempt from tax provided the individual is physically absent from South Africa for at least 183 days, did not carry on business in South Africa and is not deemed to be ordinarily resident in South Africa during the year of assessment.
• Interest received:
  Persons under 65                          R19 000
  Persons aged 65 years and over    R27 500

Interest includes distributions from property unit trusts and foreign interest and dividends.  The foreign interest and dividend exemption is limited to R3 200.  The amount of R3 200 is included in the above exemption amount.  This exemption is not available to trusts.