Sygnia Investment Policy

Minimum contributions:

Debit order of R500 p/m.

Maximum contributions:
Additional contributions cannot exceed 120% of the greater of your annual contributions in the previous two years.

Advantages

• Flexibility to make additional contributions.
• All growth is taxed within the policy, so all proceeds are net of tax.
• Discretionary savings product that enables saving in a more tax-efficient manner (particularly suited to investors with a marginal tax rate higher than 30%, as the tax rate applicable within an endowment policy is the average tax rate payable by the insurer).

Conditions

• You may not transfer this investment to another insurer or transfer another insurer’s policy into the Sygnia Investment Policy.
• Should you wish to make additional contributions, and your amount exceeds the 120% rule, you will need to open a new Investment Policy with us.
• During the five-year restriction period, you may make one loan and one surrender.
• The maximum amount you may withdraw is the lesser of: your contributions during the restriction period plus 5% per annum compound interest; or the market value of the investment account, less fees and charges.
• Provided it is more than R2 500, any remaining balance must stay invested until the restriction period ends. After five years, or at the end of any applicable extended restriction period, you may withdraw part or all of your capital as you wish.
• The Sygnia Investment Policy currently has a 40% offshore allocation limit. Please contact our Client Service team should you require more information about this product.

The Sygnia Investment Policy offers tax benefits to higher income tax payers:

• All growth is taxed within the policy.
• For individual investors, interest and net rental income is taxed at a flat rate of 30%.
• Capital gains are taxed at 12% and dividends at 20%.
• Sygnia is responsible for the payment of all taxes on behalf of investors.
• You will receive all proceeds net of tax.

The following administration fee applies depending on the investment funds that you have chosen:

* 0.35% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds below R2million.
** 0.15% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds above R2million.
*** 0.00% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds above R10million.

A separate safe custody fee of 0.03% (ex. VAT) per annum applicable to ETFs will be charged.

Note: We consider all your investments when assessing the R2 million and R10 million threshold, including your investments in External unit trusts, ETF’s and ETN’s. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request or online at www.sygnia.co.za.

Investment management fees
These vary widely across the Sygnia fund range. For a detailed breakdown of fund-specific fees, please refer to the funds page.

Financial advisor fees
These are negotiable with your financial advisor within the following parameters:

Initial fee: On all products except for the Sygnia Tax Free Savings Account the maximum initial fee is 3%. On the TFSA it is a maximum of 1.5%.
Annual fee: Maximum of 1% per annum (excl. VAT).

If an initial fee in excess of 1.50% is deducted, the annual fee is limited to 0.50% per annum.

• Copy of South African green barcoded ID/ South African Smart ID Card, birth certificate (if minor) or valid passport (if a foreign national).
• Proof of residential address not older than 3 months.
• Proof of bank details not older than 3 months.
• Proof of deposit/transfer into the relevant Sygnia bank account.

The Sygnia Investment Policy allows you to save for both medium- and long-term goals. The Sygnia Investment Policy enables higher income taxpayers to save more and invest in a more tax efficient manner. Unit trusts, unitised life funds, exchange traded Funds (ETFs) or exchange traded notes (ETNs) are made available on the Sygnia platform in respect of the Sygnia Investment Policy.

There are several benefits to investing in a Sygnia Investment Policy:

• It may be more tax efficient if your marginal income tax rate is higher than 30% – the investment policy applies a flat 30% rate to interest and net rental income, 12% to capital gains and 20% to dividends.
• Sygnia handles all tax payments on your behalf, providing you with the proceeds after tax.
• You can nominate beneficiaries to your estate for your investment policy.

Sygnia takes care of all tax payments on your behalf. You receive your investment proceeds after tax, without having to manage tax calculations or payments yourself. No tax certificates are issued either, simplifying your administrative process.

During the initial five-year restriction period, you can make one loan and one surrender. The maximum withdrawal amount is the lesser of your contributions plus 5% annual compound interest or the investment account’s market value less fees and charges.

Any remaining balance over R2 500 must remain invested until the end of the five-year restriction period.

You can make unlimited withdrawals after the initial five-year restriction period.

Withdrawals are subject to tax, and you will receive your proceeds less tax.

Any additional contributions you make may not exceed 120% of your highest annual contribution from the previous two years. If you wish to make an additional investment that exceeds this 120% limit, you will have to open a new investment policy account.

Yes. This important feature allows you to specify who should receive the benefits of your investment in the event of your death.