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- Email: info@sterlinginvest.co.za
Sterling Invest Share Portfolios
Share portfolios are for investors that want to directly own a portfolio of shares listed on the stock market, carefully tailored, taking their personal objectives and preferences into account. In collaboration with our world-class stockbroker and platform provider, DMA Sterling Invest offers both local and offshore share portfolios on a managed or non-managed basis. Through our institutional-level relationship with DMA, we get access to market-leading, low brokerage fees.
Our stockbroker (DMA) gives investors the flexibility to hold listed shares, ETF’s and unit trusts within their share portfolios, a truly global and unconstrained investment universe. We are also recognized discretionary investment managers on the Sanlam Glacier and Glacier International platforms, enabling our investors to establish share portfolios within tax-efficient structures such as endowments, retirement annuities and living annuities.
We often get asked why an investor should consider setting up a share portfolio to invest into shares when they could just invest via a unit trust fund or ETF’s to get market exposure. Below we list a few compelling advantages of a share portfolio over a unit trust fund or ETF:
Share portfolios can be structured to suit your specific objectives and preferences whereas unit trust funds and ETF’s are managed according to a general mandate, and usually have a myriad of portfolio restrictions in place.
For example, with share portfolios, you can:
- take a concentrated position in a single or a few listed shares
- draw a specific income return from your share portfolio that is tax efficient to your personal circumstances
Share portfolios can provide you with meaningful exposure to great businesses that are usually not well represented in unit trust funds because of their size (small or mid capitalization companies) or low volume trading liquidity (unit trust funds generally avoid illiquid shares).
The effective annual cost for a share portfolio is typically much lower than that of a unit trust portfolio. Within a share portfolio, fees are only paid to the investment manager and stockbroker. Within a unit trust investment, there are many more stakeholders that need to be paid, including a financial advisor, LISP platform provider, discretionary fund manager and the various underlying unit trust fund investment managers.
If you have a keen interest in listed businesses and financial markets, share portfolios gives you the opportunity to specifically direct and choose exactly where your hard-earned money gets invested.
With managed share portfolios, you give Sterling Invest full discretion to manage the portfolio on your behalf. The businesses we choose to invest in are guided by the Sterling Invest Alpha Process. We utilize the same process in managing our flagship unit trust fund. In addition to receiving detailed quarterly investment statements, you may view your portfolio at any time through DMA’s online investor web portal or mobile app. There is no minimum investment holding period, although we strongly recommend you remain invested for at least 5 years. We do not charge any upfront or exit fees.
| Local Managed Share Portfolios | |
| Minimum Size | R 500 000 |
| Platform Fee | 0.075% per annum |
| Investment Management Fee | 1% per annum * |
| Brokerage Fee | 0.50% per trade (R75 minimum) * |
| Offshore Managed Share Portfolio | |
| Minimum Size | $ 50 000 |
| Platform Fee | 0.075% per annum |
| Investment Management Fee | 1% per annum * |
| Brokerage Fee | 0.50% per trade ($20 minimum) * |
| Asset Swap Fee (Companies & Trusts Only) | 0.35% per annum |
* These are the maximum fees charged. They reduce on a sliding scale, depending on the investor’s portfolio value under our care
With non-managed share portfolios, you manage your share portfolio as you see fit. Simply make use of our institutional-level brokerage fees and the world class DMA trading platform. There are no investment minimums and no management fees charged by Sterling Invest. We do not charge any upfront or exit fees either. You can place trades yourself via DMA’s online trading website or mobile app. Alternately, you can request that Sterling Invest place trade orders on your behalf.
| Local Share Portfolio | |
| Minimum Size | N/A |
| Platform Fee | 0.075% per annum |
| Brokerage Fee | 0.50% per trade (R75 minimum) * |
| Offshore Share Portfolio | |
| Minimum Size | N/A |
| Platform Fee | 0.075% per annum |
| Brokerage Fee | 0.50% per trade ($20 minimum) * |
| Asset Swap Fee (Companies & Trusts Only) | 0.35% per annum |
* These are the maximum fees charged. They reduce on a sliding scale, depending on the investor’s portfolio value under our administration
Investors sometimes unearth old physical share certificates or share statements that they are unsure of how to access or decipher its worth. We assist investors in investigating and unlocking value from these legacy investments. Some of the secretarial services we offer include:
- Consolidating listed shares housed with various service providers onto a single platform, allowing for easy salability thereafter
- Share dematerializations for physical share certificates, enabling investors to subsequently sell the shares
- Assist with claiming unpaid dividends from legacy listed share investments
- Enabling pay-outs to Estate Late investors that owned legacy listed share investments
For these secretarial services, we charge administration fees that vary dependent on the scope of work involved.
Share portfolios can be established in various investment structures, each with unique liquidity, estate planning and tax-efficiency attributes:
| Investor type – Individuals | Liquidity | Estate planning | Tax efficiency | ||||
| Structure | Local | Offshore | Can I access my money at any time after investment? | Can the investment payout directly to my beneficiaries upon my demise? | Are there tax savings when I make the investment? | Are there Tax savings on ongoing investment returns | Is there Estate duty saving upon death? |
| Discretionary | ✓ | ✓ | Yes | No | No | No | No |
| Retirement Funds | ✓ | ✓ | (No, only after 55 and limited to a 1/3rd payout) | Yes | Yes | Yes | Yes |
| Living Annuity | ✓ | ✓ | (No, limited to 17.5% per annum) | Yes | No | Yes | Yes |
| Endowment | X | ✓ | No (only after 5 years) | Yes | No | Yes | No |
Share portfolios can be established in various investment structures, each with unique liquidity, estate planning and tax-efficiency attributes:
| Investor type – Individuals | Liquidity | Estate planning | Tax efficiency | ||||
| Structure | Local | Offshore | Can I access my money at any time after investment? | Can the investment payout directly to my beneficiaries upon my demise? | Are there tax savings when I make the investment? | Are there Tax savings on ongoing investment returns | Is there Estate duty saving upon death? |
| Discretionary | ✓ | ✓ | Yes | No | No | No | No |
| Endowment | X | ✓ | (No, only after 5 years) | Yes | No | Yes | No |