The information provided herein does not constitute investment advice and is not intended as an offer or solicitation to the reader. The products or services described or referenced herein may not be suitable or appropriate for every investor. There is no guarantee of capital or performance. Investors may lose money, including a possible loss of capital. Many of the products and services described or referenced herein involve significant risks and no decision should be made or transaction entered into unless all such risks are fully understood and it has been independently determined that such decisions or transactions are appropriate for the investor. Any discussion of risks contained herein with respect to any product or service should not be considered a disclosure of all risks or a complete discussion of the risks involved. The reader should not construe any of the material contained herein as investment, hedging, trading, legal, regulatory, tax, accounting or other advice. The reader should not act on any information in this site without consulting its investment, hedging, trading, legal, regulatory, tax, accounting and other advisers.
South Africa: Where applicable, the funds and portfolios are approved under Section 65 of the Collective Investment Schemes Control Act 45, 2002 (CISCA). Sanlam Collective Investments (RF) (Pty) Ltd is the South African Representative Office.
Switzerland: The representative in Switzerland is FundRock Switzerland S.A, Route de Cité-Ouest 2, 1196 Gland, Switzerland. The paying agent in Switzerland is Neue Helvetische Bank AG, Seefeldstrasse 215, CH-8008, Zurich, Switzerland. The Prospectus, the Articles of Association and [annual and semi-annual report, if any] [annual financial statements] can be obtained free of charge from the representative in Switzerland. The place of performance and jurisdiction is the registered office of the representative in Switzerland with regards to the Shares distributed in and from Switzerland.
United States: Where applicable, the funds, portfolios and products are not available in the United States or to citizens or residents of the United States.
A U.S. Person is (a) any individual who is a citizen of the U.S, (b) any individual who is a resident of the U.S. for U.S. income tax purposes, (c) a corporation, partnership or other entity created or organized under the laws of the U.S. or any of the States or having its principal place of business in the U.S., (d) a U.S. estate or U.S. trust, the income of which is subject to U.S. federal income tax, (e) any U.S. corporation, U.S. partnership, U.S. trust, U.S. estate or other entity that is organized principally for passive investment and in which one or more individuals or entities described above hold units of participation representing in the aggregate 10% or more of the beneficial interests in the entity, (f) a pension plan for the employees, officers or principals of an entity created, organized or existing in or under the laws of the U.S. or which has its principal place of business within the U.S., (g) any trust, if a court in the U.S. is able to exercise primary supervision over the administration of the trust, (h) any trust, if one or more U.S. persons has the authority to control all substantial decisions of the trust, or (i) any other person or entity who is treated as a U.S. person under Section 7701(a)(30) of the U.S. Internal Revenue Code.
Bermuda: Where applicable, the products are not available in the Bermuda or to citizens or residents of Bermuda.
A Bermudian Person is any (a) individual who (i) is ordinarily resident in Bermuda, (ii) has Bermuda status under Bermuda law, or (iii) is employed in Bermuda, (b) company incorporated in Bermuda which is not an exempted company (i.e. a “local company”), (c) any partnership formed in Bermuda, or (d) trustee of a trust which has been established or made by a person who is resident in Bermuda and the trust fund is held for residents of Bermuda.
Ai Investment Engine: An investment engine built to predict and pro-actively adapt to changing markets.
Annualised Total Returns: Annualised return is the weighted average compound growth rate over the period measured.
Annualised Return: This is the weighted average compound growth rate over the period measured.
Asset Allocation: This is how money invested is divided among different asset classes and investment types, such as stocks, bonds, real estate, commodities, alternatives, and cash.
Average Volatility: Measures how much a fund´s total returns have fluctuated in the past, the more a fund´s return fluctuates, the riskier the fund is likely to be.
Capital Growth: Capital growth is the profit made on an investment, measured by the increase in its market value over the invested amount or cost price. It is also called capital appreciation.
Collective Investment Scheme (CIS): Collective investment schemes (also called unit trusts) are portfolios of assets such as equities, bonds, cash and listed property, in which investors can buy units. They allow private investors to pool their money together into a single fund, thus spreading their risk across a range of investments, getting the benefit of professional fund management, and reducing their costs.
Correlation: This value reflects the correlation between the returns of two instruments, the Fund's return compared to the calculation benchmark's return. A value of 1 indicates a perfect positive dependency and –1 indicates a perfect negative dependency between the two instruments.
Cumulative Return: This is the aggregate return of the portfolio for a specific period.
Derivatives: Derivatives are instruments generally used as an instrument to protect against risk (capital losses). Examples are futures, options and swaps.
Equities: An equity or share represents an institution/individual’s ownership in a listed company and is the vehicle through which they can “share” in the profits made by that company. As the company grows, and the expectation of improved profits increases, the market price of the share will increase, and this translates into a capital gain for the shareholder. Similarly, negative sentiment about the company will result in the share price falling. Shares/equities are usually considered to have the potential for the highest return of all the investment classes, but with a higher level of risk i.e. share investments have the most volatile returns over the short term. An investment in this type of asset should be viewed with a 7 to 10-year horizon.
Maximum Drawdown: A portfolio’s maximum loss in a peak-to-trough decline before a new peak is attained. Max Drawdown It is usually quoted as the percentage between the peak and the trough. It is an indicator of downside risk over a specified time period.
Maximum Drawdown Period: The number of periods (months) in a peak to trough (valley) decline that encompass the maximum drawdown for an investment.
Maximum Drawdown Recovery Period: The number of periods (months) of the trough (valley) to peak incline that encompass the maximum drawdown recovery for an investment.
Multi-asset Class Funds: Multi-asset class funds invest in a combination of asset classes (such as cash equities, property or bonds). This increases the diversification of an overall portfolio and reduces risk (volatility) compared to holding one class of assets only.
Passive Investment Vehicle (e.g. index tracker): A style of investing where a fund’s portfolio mirrors or replicates a particular market index by investing in all of the underlying funds within that index. Passive investing is the opposite of active investing in which a fund’s manager attempts to beat the market with various investing strategies. Also known as “passive investing” or “index investing.”
Return/Volatility: Indicates the amount of return an investment produces per unit of risk. When comparing this measure between two investments, the one with the higher ratio is generally superior from a return and risk perspective.
Standard Deviation: This statistical measurement of dispersion about an average, depicts how widely a mutual fund's returns varied over a certain period of time. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility.
Sharpe Ratio: The Sharpe ratio is a risk-adjusted measure that calculates the mean of a fund’s returns over that of the risk-free rate. The higher the Sharpe Ratio, the better a fund’s historical risk-adjusted performance.
Sortino Ratio: The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. The Sortino Ratio is similar to the Sharpe Ratio, but unlike the Sharpe Ratio, the Sortino Ratio differentiates harmful volatility from total overall volatility by using downside risk.
Total Expense Ratio (TER): This is the total costs associated with managing and operating an investment (excluding administration, financial planning and servicing fees). These costs consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of the fund is divided by the fund’s total assets under management to arrive at a percentage amount, which represents the TER.
Financial Account: A Financial Account is an account maintained by a Financial Institution and includes: Depository Accounts; Custodial Accounts; Equity and debt interest in certain Investment Entities; Cash Value Insurance Contracts and Annuity Contracts.
Plan holder: The term ‘Plan holder’ means the person listed or identified as the holder of a Financial Account. In the case of a parent/child relationship where the parent is acting as a legal guardian, the child is regarded as the Plan holder. With respect to a jointly held account, each joint holder is treated as a Plan holder.
Resident Country Taxpayer Identification Number (Resident Country TIN): A Taxpayer Identification Number or a Resident Country(ies) functional equivalent in the absence of a Resident Country(ies) TIN. A TIN is a unique combination of letters or numbers assigned by a jurisdiction to an individual or an Entity and used to identify the individual or Entity for the purposes of administering the tax laws of such jurisdiction. Some jurisdictions do not issue a TIN. However, these jurisdictions often utilise some other high integrity number with an equivalent level of identification (a ‘functional equivalent’). Examples of that type of number include, for individuals, a social security/insurance number, citizen/personal identification/service code/number, and resident registration number.
Active Non-Financial Entity (NFE): Any NFE (being an entity that is not a Financial Institution (FI)) that meets any of the following criteria:
Central Bank: An institution that is by law or government sanction the principal authority, other than the government of the jurisdiction itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government of the jurisdiction, whether or not owned in whole or in part by the jurisdiction.
Controlling Person: The natural persons who exercise control over an Entity. Generally, the person who has control over the Entity is the one who has a controlling ownership interest. Typically, this means they own 25% or more of the Entity. Where no person has control of the Entity through ownership interests, the Controlling Person will be the person who holds the position of senior managing official. In the case of a trust, such term means the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies), or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions. The term ‘Controlling Person’ shall be interpreted in a manner consistent with the Recommendations of the Financial Action Task Force.
Custodial Institution: Any Entity that holds, as a substantial portion of its business, financial assets for the account of others. An Entity holds financial assets for the account of others as a substantial portion of its business if the Entity’s gross income attributable to the holding of financial assets and related financial services equals or exceeds 20 percent of the Entity’s gross income during the shorter of: (i) the three-year period that ends on 31 December (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made; or (ii) the period during which the Entity has been in existence.
Depository Institution: Any Entity that accepts deposits in the ordinary course of a banking or similar business. Entity: A legal person or a legal arrangement, such as a corporation, organisation, partnership, trust or foundation.
Established Securities Market: An exchange that is officially recognised and supervised by a governmental authority in which the market is located and that has a meaningful annual value of shares traded on the exchange.
Financial Institution: Any of the following:
Governmental Entity: The government of a jurisdiction, any political subdivision of a jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or municipality), or any wholly owned agency or instrumentality of a jurisdiction or any one or more of the foregoing (each, ‘Governmental Entity’). This category is comprised of the integral parts, controlled entities, and political subdivisions of a jurisdiction.
International Organisation: Any international organisation or wholly owned agency or instrumentality thereof. This category includes any intergovernmental organisation (including a supranational organisation) (1) that is comprised primarily of governments; (2) that has in effect a headquarters or substantially similar agreement with the jurisdiction; and (3) the income of which does not inure to the benefit of private persons.
Investment Entity: Any entity will be treated as an Investment Entity if it meets the conditions below:
The second type of ‘Investment Entity’ (‘Investment Entity managed by another FI’) is any entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets where the Entity is managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company, or the first type of Investment Entity.
Participating Jurisdiction: A jurisdiction –
Passive NFE: Any NFE (being an entity that is not a FI) that is not an Active NFE. (Note: Similar treatment will be applied to an Investment Entity located in a Non-Participating Jurisdiction and managed by another Financial Institution).
Related Entity: An Entity is regarded as being related to another Entity if:
Control means: Direct or indirect ownership of more than 50 percent of the vote and value in an Entity.
Reportable Account: An account that, pursuant to due diligence procedures consistent with CRS, has been identified as an account that is held by one or more persons that are Reportable Persons or by a Passive NFE with one or more Controlling Persons that are Reportable Persons with respect to another Jurisdiction.
Reportable Person: A Reportable Jurisdiction Person other than:
Reportable Jurisdiction Person: An individual or Entity that is resident in a Reportable Jurisdiction under the tax laws of such jurisdiction, or an estate of a decedent that was a resident of a Reportable Jurisdiction. For this purpose, an Entity such as a partnership, limited liability partnership or similar legal arrangement that has no residence for tax purposes shall be treated as resident in the jurisdiction in which its place of effective management is situated.
Reportable Jurisdiction: A jurisdiction –
Specified Insurance Company: Any Entity that is an insurance company (or the holding company of an insurance company) that issues, or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.
Resident Country(ies) Taxpayer Identification Number (TIN): Taxpayer Identification Number or a resident country’s functional equivalent in the absence of a Resident Country(ies) TIN. A Resident Country(ies) TIN is a unique combination of letters or numbers assigned by a jurisdiction to an individual or an Entity and used to identify the individual or Entity for the purposes of administering the tax laws of such jurisdiction.
Further details of acceptable Resident Country(ies) TINs can be found at: http://www.oecd.org/tax/automatic-exchange/tinsandtaxresidency. Some jurisdictions do not issue a TIN. However, these jurisdictions often utilise some other high integrity number with an equivalent level of identification (a ‘functional equivalent’). Examples of that type of number include, for individuals, a social security/insurance number, citizen/ personal identification/service code/number, and resident registration number.
Investment Options Declarations
Plan Holder Declarations