Our Solutions

ALTERNATIVE
INVESTMENTS

Tax efficient structures for qualified investors looking to diversify concentrated legacy portfolios.

A hedge fund is an alternative investment portfolio where the capital of retail and institutional investors can be pooled together to buy and sell underlying investments to apply the hedge fund’s strategy.

Hedge fund investments typically provide returns that are not highly correlated with traditional asset classes such as equities. This is due to hedge fund managers having more investment techniques that they can employ to hedge risks or generate returns compared to traditional asset managers.

South African hedge funds are governed under the Collective Investment Schemes Control Act (CISCA), in the same way as unit trust funds.

STRUCTURED
INVESTMENTS

Leveraged exposure to global indices with capital preservation top of mind.

Structured Investments give retail clients access to opportunities that aim to take advantage of specific market conditions. They are designed to facilitate very specific risk-return objectives and require a longer-term investment horizon. The characteristics of these products can act as powerful diversification tools when incorporated into broader portfolios.

The key characteristics of these products are:

• Capital protection
• Leveraged upside participation
• Knock in performance booster for markets that are flat or up
• Yield Enhancement

LOCAL PORTFOLIO
MANAGEMENT

Invest in a managed long-term share portfolio that owns high quality JSE listed companies with a highly compelling investment case.

We manage a tailored long-term share portfolio on your behalf of carefully chosen JSE listed shares.

We have a long-term track record of successfully managing segregated JSE share portfolios. We are also able to provide the local portfolio management solution wrapped in a Momentum endowment to reduce capital gains tax.

OFFSHORE PORTFOLIO
MANAGEMENT

Invest in a managed long-term share portfolio that owns high quality Globally JSE listed companies with a highly compelling investment case.

We manage a tailored long-term share portfolio on your behalf of carefully chosen Globally listed shares.

We have a long-term track record of successfully managing segregated global share portfolios and can provide the global portfolio management solution wrapped in a Momentum endowment to reduce capital gains tax. We also provide asset swap facilities to trusts, companies and individuals.

RETIREMENT
SOLUTIONS

We can manage your retirement annuity, living annuity, preservation provident / pension fund or portfolio and invest directly in JSE and Globally listed companies.

What is a retirement annuity?

A retirement annuity (RA) is a tax efficient investment vehicle designed for individual investors who are not exposed to a workplace retirement fund or for investors who want to supplement their pension or provident fund savings.

How does a retirement annuity work?

RAs allow your money to grow tax-free and also allows you to deduct your contributions up to 27.5% or R350 000 of your annual taxable income. Any contributions above the annual deduction limit can be rolled over to the following year.

Your RA can be accessed from age 55 onwards unless you retire early due to ill-health or emigrate to another country. At retirement, one third of your investment can be withdrawn as a lump sum (subject to lump sum tax) and the remainder of the investment must go towards a compulsory annuity. If your balance is less than R247,500 you can withdraw 100% of your RA in cash.

What are the benefits of a retirement annuity?

  • Savings are protected from creditors (Savings are safe regardless of any financial loss experienced in your life)
  • Tax benefits, tax-deferral allows income tax to be paid at a later stage when funds begin to be withdrawn
  • Provides savings for retirement

What is a living annuity?

Living annuities are investments linked to unit trusts, cash investments or share portfolios. The funds in a living annuity are not subject to the limits of Regulation 28 like retirement annuities are and therefore the underlying investments of an LA are more flexible.

Your underlying investment of an LA can be fully aligned with your investment objectives, risk profile and investment horizon.

How does a living annuity work?

A living annuity requires you to draw between 2.5% and 17.5% per annum. The income received from your living annuity will form part of your taxable income and you will be taxed at the marginal rate. Transfers and annuity purchases however, are not taxed.

What are the benefits of a living annuity?

LAs allow you to have the flexibility to set your annual income and control your investment strategy. Funds in an LA are not subject to CGT, dividends tax or income tax until the money is withdrawn.

What is a preservation fund?

A preservation fund, like an RA, is a retirement fund in terms of the Pension Funds Act. Preservation funds are designed for individuals who want to invest the proceeds of their pension or provident funds in a tax efficient manner.

Proceeds of company-sponsored retirement plans can be transferred to a preservation fund in the event of dismissal, retrenchment, or resignation. This allows your savings as well as the tax benefits of your retirement plans to be preserved.

How does a preservation fund work?

The primary objective of preservation funds is to preserve sufficient wealth to sustain you after retirement. Failure to preserve your wealth will result in a decrease in current savings as well as the potential returns these savings can produce.

Prior to the age of 55 one partial or full withdrawal can be made from your preservation fund. After this, the balance of the preservation fund can only be accessed at retirement or after the age of 55. Withdrawal from your preservation fund is subject to withdrawal tax.

What are the benefits of a preservation fund?

Preservation funds have the same tax-benefits as retirement annuities and have a variety of investment options. Some, or all your money can be withdrawn prior to retirement and the investment will be safe in the case of debt bankruptcy. Withdrawals are subject to lump-sum tax, but no capital gains tax are applied.

FUND
INCUBATION

Northshore Capital provides incubation services which includes middle and back-office assistance, risk management and compliance monitoring.

Our offering includes access to:

  • Infrastructure
  • Custodial functions
  • Broker network
  • Asset swap facilities
  • Experience

Northshore Capital will appoint and supervise representatives that meet pre-appointment due diligence and Fit and Proper minimum standards as stipulated in the FAIS Act.

CONTACT US

  • 58 Main Street, Newlands, Cape Town, 7700

  • info@northshorecapital.co.za