Select Income Portfolio
- HOME
- CONTACT
SELECT INCOME PORTFOLIO
Why invest in alternative assets?
An investment in alternative assets is an investment in the real economy – the assets are real, the jockeys are real and the numbers are real.
Slow Economic Growth. The unemployment rate, corruption and COVID are major contributing factors in low GDP Growth. Low corporate investment triggered by policy uncertainty, results in less job creation and a slow economy.
Alternative assets are not correlated to market volatility due to the lack of market sentiment. Alternative asset performance is based on company performance and not market sentiment due to supply and demand.
Due to the diversification of the alternative asset classes the standard deviation is reduced, resulting in lower volatility of the portfolio.
Investment risk is mitigated by investing in a minimum of 7 companies in 7 different sectors. This is possible with a Category 2 investment license.
Minimum investment: R 250 000
Yield: Flat 11% yield per annum paid quarterly + 0,5% additional increase with every annual anniversary
Investment term: 5 years
Investment lock-in term: N/A
Notice period after lock-in term: 2 calendar months
Diversification factor: The investment is diversified over more than 7 companies in 7 different sectors
Switch ability: The client has the option to pursue a revolutionary income to growth switch once in the lifetime of the investment
Penalties: 10% for the first year of the investment followed by 5% from year 2 until the full maturity of the investment.
*No yield is payable from withdrawal notice date.
To offset the costs of the investment, a hurdle rate is set. This means that if the product provider does not reach the set hurdle rate, no costs may be deducted from the investors' investment.
The Hurdle Rate is the yield allocated to the client. Any costs, admin fees, performance fees, and broker fees are paid from the yield received above the hurdle rate.
This ensures that the client is set as first priority and the fund performance needs to be driven by the investment managers to be able to offset any costs incurred on the investment.
Investment amount of R250 000 lump sum.
Yield is paid quarterly, in February, May, August, and November. If R 250 000 is invested, the illustration can show the expected payout.
Fixed Income fund has the revolutionary option to switch to the Select Growth portfolio. Please ask your financial advisor for more details regarding the Optimate Select Portfolios.
The Fixed Income Portfolio triggers income tax. Income tax is calculated as per the brackets illustrated by the Income Tax Act. Tax triggered is payable to SARS and is the responsibility of the client.
Once "the switch" is implemented the product switches to a growth investment, where income is no longer paid out to the client on a quarterly basis.
Contact Us
Building wealth, Optimate Solutions South Africa is your trusted partner in the alternative investment realm, offering bespoke solutions to your unique investment needs.
Clients have access to a boutique of Private Equity and 12J
Alternative investment vehicles according to their overall investment objective.