Investment Forms

On 8th July 2017 Element Unit Trust Funds entered into a co-naming agreement with Sanlam Collective Investments (“SCI”). Following this amalgamation, Element Investment Managers will remain the investment manager of the underlying funds and there will be no changes to the underlying Unit Trust portfolios, nor any impact on the manner in which the funds are managed. However, the administrative and operational aspects of investing with Element will be handled by SCI.

Going forward, investors should note that all investment forms and supporting documents should be emailed to: UTinstructions@sanlaminvestmentssupport.com or faxed to 0860 724 467

If you require any assistance in completing any of the form, please call SCI’s call centre on 0860 100 266 or email service@sanlaminvestments.com

All investment forms will also be available on SCI’s website under the heading “Forms” https://www.sanlaminvestments.com/personal/investments/unittrusts/Pages/default.aspx/

Please make sure you send your completed instruction (including supporting documents) before the transaction cut-off time. SCI can only process your instruction once they have received the correct and accurately completed form and the required supporting documents. If an instruction is issued incorrectly, is unclear, incomplete, or if the supporting documents are not received by the cut-off time, the processing of the transaction will be delayed.

  • The transaction cut-off time is 15:00

Current investors can also directly transact on SCI’s Secure Services Portal. This include:

  • Manage your portfolio online and securely
  • View your portfolio
  • Conduct transactions
  • Request statements
  • Update your personal details

To register, please go to: https://cp.sanlam.co.za

How do I Invest in Element Unit Trusts?

  1. Download our Investment Application Form
  2. Complete all sections of the Investment Application Form in full using BLOCK LETTERS. Any alterations made to the Investment Application Form must be initialed. If you require any assistance in completing this form, please call us on 0860 100 266.
  3. Attach the required supporting documentation in terms of the Financial Intelligence Centre Act No 38 of 2001 ("FICA"), proof of deposit and a cancelled cheque or a bank statement, not older than 3 months. FICA documentation required for an individual investor is a copy of your South African ID (or passport if you do not have an ID) and a utility bill (not older than 3 months).
  4. Deposit your lump sum investment directly into SCI’s bank account, with details as provided on the SCI Investment Application Form.
  5. Investors who wish to invest via a once-off or recurring debit order should complete the relevant section of the Investment Application Form.
  6. Email the signed Investment Form, FICA documents and proof of deposit to SCI on UTinstructions@sanlaminvestmentssupport.com or fax it to 0860 724 467.

How do I Invest in Element Tax-Free Savings Accounts?

  1. Download our Investment Application Form - Tax-Free Savings Account
  2. Complete all sections of the Investment Application Form in full using BLOCK LETTERS. Any alterations made to the Investment Application Form must be initialed. If you require any assistance in completing this form, please call us on 0860 100 266.
  3. Attach the required supporting documentation in terms of the Financial Intelligence Centre Act No 38 of 2001 ("FICA"), proof of deposit and a cancelled cheque or a bank statement, not older than 3 months. FICA documentation required for an individual investor is a copy of your South African ID (or passport if you do not have an ID) and a utility bill (not older than 3 months).
  4. Deposit your lump sum investment directly into SCI’s bank account, with details as provided on the SCI Investment Application Form.
  5. Investors who wish to invest via a once-off or recurring debit order should complete the relevant section of the Investment Application Form.
  6. Email the signed Investment Form, FICA documents and proof of deposit to SCI on UTinstructions@sanlaminvestmentssupport.com or fax it to 0860 724 467

Tax-Free Savings Accounts vs Retirement Annuities: What's the Difference?

The main difference between the two tax savings vehicles is when and on what basis, taxes are being levied. Investors in retirement annuities should benefit from their tax saving upfront, whilst investors in tax-free savings accounts should benefit upon withdrawal of some or all of their investments.

Who should make use of Tax-Free Savings Accounts?

  • Any individual who wants to take advantage of this tax-free opportunity on his or her investment proceeds should consider seriously contributing R30,000 per annum to a TFSA until the maximum is reached.

How much can one invest?

  • An individual can contribute a total of R30,000 annually.
    • Annual contributions align with an individual's tax year, i.e. the 12 months from 1st March to 28th February the following year.
  • There is a lifetime contribution limit of R500,000.
    • Note that this limit applies to total capital contributions only. All interest, dividends and capital gains in excess of R500 000 may stay in these accounts to accrue further interest and dividends.
    • Assuming an investor contributes R30,000 annually, and makes no withdrawals, it will take 16.7 years before the R500,000 total limit will be reached.
  • It is in the investor's best interests to monitor his or her own contributions, as the South African Revenue Service ("SARS") intends to levy a hefty penalty on contributions in excess of the annual and lifetime limits - initial indication is a 40-50% tax on any excess!

Contributions

  • TFSA: The contributions are not tax deductible.
    • I.e. one is contributing money on which one has already paid income / other tax.
  • RA: The contributions are tax deductible.
    • I.e. one can claim the tax back that one has already paid on the contributions
    • Maximum annual total contribution on which one can claim back the tax = 15% of taxable income

Tax on Proceeds and Access to Proceeds

  • TFSA: Investments (both contributions and gains) can be accessed and withdrawn at any time, and no tax will be levied.
    • All proceeds on investments in TFSAs - capital gains, dividends and interest - will be completely tax-free.
  • RA: Investments can only be accessed once the investor turns 55 years old.
    • In addition, only the first R500,000 withdrawal amount is tax free, but after that the investor is taxed at his or her respective income tax rate.

Pension Fund Regulation 28 Compliance

  • TFSA: An investor will be allowed to invest in any tax-free investment approved financial instrument (regardless of whether the product is Regulation 28 compliant or not).
    • This implies that an investor does not have to comply with the maximum 75% equity, 25% property and 25% foreign holdings. As an example, if it is appropriate for an individual's risk profile, an investor may elect to be 100% invested in global equities.
    • Unit Trusts that do not charge performance fees fall in the approved investment category. Note: Element Investment Managers does not charge performance fees on any of its Unit Trusts, hence all our Unit Trusts are approved TFSA instruments.
  • RA: An investor has to be invested in a manner that is compliant with Regulation 28
    • This implies that an investor can only hold a maximum of 75% equity, 25% property and 25% of foreign holdings.

Further Information

If you require any clarification on this, please consult our client services team on (021) 426 1313 or at utclientservices@elementim.co.za

Additional Forms for Existing Unit Trust Clients

Additional Forms for Existing Tax-Free Savings Account Clients

 
 

WE WERE THE FIRST SOUTH AFRICAN INVESTMENT MANAGER TO SIGN THE UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT

WE ARE COMMITTED TO THE CODE FOR RESPONSIBLE INVESTING IN SOUTH AFRICA