WHAT DO WE INVEST IN?

We invest directly in the shares of public companies, Exchange traded funds and funds of external fund managers listed on the world’s major stock exchanges. Our aim is to have 40% – 60% invested in equity, 5% – 25% invested in Exchange traded funds and 30% – 40% invested in external funds with the balance held in cash. The shift in these allocations are dependent on various economic scenarios. Historically, the global equity market has been one of the greatest sources of inflation beating returns over the long-term (5 years +). Shareholders in high quality businesses can expect to earn returns in the form of dividends and/or increased share prices as these companies grow over time.

WHAT IS HELFIN PRIVATE WEALTH’S INVESTMENT APPROACH?

Our investment strategies and portfolios are adjusted for various economic scenarios to minimise the impact of uncertainty and palliate risk. Our approach considers various combinations of value, growth, momentum and GARP (Growth At a Reasonable Price) among other key performance indicators. As these styles are more appropriate over differing phases of the macroeconomic cycle, our strategy will adapt accordingly. Strict adherence to our proven strategies enables Helfin to compile robust long-term portfolios and avoid emotional investing.

WHO HOLDS OUR CLIENTS’ ASSETS?

WHAT ARE THE FEES?

We have two types of clients, a direct client or client in a Wrapper (used to simplify tax reporting, mitigating tax exposure and estate planning). Each client holds an account in his/her own name with Direct Market Access (DMA). Direct Market Access uses Saxo Bank’s trading platform and shares are kept safe by Citibank. Helfin Private Wealth does not hold client assets and does not have access to make withdrawals from client accounts, though we are able to trade securities on behalf of our clients. This custodial arrangement improves security and ensures full transparency, access to funds and control for our clients.

For South African clients this also means that their assets are held in a completely offshore account, in contrast with South African offshore feeder funds which require investments to be repatriated to South Africa upon redemption.

Helfin Private Wealth charges a portfolio management fee of between 1.15% per annum, including VAT. This fee is calculated and charged to the portfolio account monthly (i.e. 0.10% per month) via Direct Market Access. We do not charge performance fees. There are no upfront or redemption fees.

Direct Market Access charges brokerage on trades at some of the most competitive rates (typically 0.15% of transaction value). In certain countries there are also regulatory charges and taxes payable on trades irrespective of which broker is used (e.g. stamp tax in UK). Direct Market Access also charges a custody fee of 0.075% per annum, charged quarterly in arrears.

Note that Helfin Private Wealth only charges a management fee and does not share in brokerage on trades. This ensures that our interests remain fully aligned with our clients’ interests.

Note that we are entirely independent of Direct Market Access and the only fees we receive is the management fee charged by Helfin Private Wealth. We make use of their platform because we believe it provides our clients with a strong, well-regulated custodian and the most cost effective and transparent solution for investing in the global equity market.

CLIENT ACCESS

Each client has online access to their account with Direct Market Access. This account is protected by 2-step authentication which includes a username/password combination and a security device (usually a smartphone app).

Via the online portal clients can see their portfolios in real-time, draw detailed statements, tax reports, etc.

HOW DO WE REPORT TO OUR CLIENTS?

We send quarterly statements to each client which details portfolio value, performance, as well as top holdings and exposures. In addition to this fact sheet we provide ad hoc updates in which we discuss our thinking, views and reasons for changes made to our clients’ portfolios.

Direct Market Access sends each client a detailed statement of account indicating holdings, cost prices, transactions, etc. This is also available online through the Direct Market Access view-only login.

TAX IMPLICATIONS FOR MOVING FUNDS OFFSHORE:

You are allowed a Single Discretionary Allowance (DA) up to R1 million per calendar year (ending 31 December), for which no foreign tax clearance from SARS is required. This annual single Discretionary Allowance can be used for any legal purpose abroad and should include any travel spend from South-Africa in foreign currency, such as your credit card expenditure whilst traveling abroad. This allowance can also be utilized to send as much funds as possible offshore without applying for a tax clearance from SARS.

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Repatriation of offshore funds

Repatriation of offshore funds needs to be considered from both a tax and exchange control perspective. In practice, however, it is also a psychological predicament for South African…