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How Glacier Invest wishes your retirement investment many happy, healthy returns

19 April 2022

The asset management team at Glacier Invest has been busy over the last few years innovating solutions specifically for retired individuals. They have also recently moved living annuity clients invested in the Glacier Invest wraps closer in line with the new Glacier Invest Real Income Solutions range.

The new range of solutions is quite exciting, says Sherwin Govender, Business Development Manager at Glacier by Sanlam. He weighs in on why this is a good consideration for your clients’ retirement investment portfolios.

Uncertain Outlook for Retirees

The current economic conditions in the country have affected almost everyone in a material way. Retirees, specifically those who are invested in living annuities that are affected by the state of financial markets, may have seen their capital decline over the years due to low growth and negative market returns. The usual reaction is to take less risk and invest in more interest-bearing investments. However, this reduces the potential for strong, inflation-beating growth.

Hedges, Smoothing and Alternative Assets

The Glacier Invest Living Annuity Income Wrap Fund solutions focus on increasing the predictability and consistency of income and protecting capital during market downturns. This is achieved by using hedge funds, smoothing techniques and alternative investments within a managed portfolio. These additions may seem complicated and difficult to understand, but the following reasons make the range of solutions very compelling:

  1. The solutions aim to decrease the size and frequency of negative returns without giving up too much of upside potential. The objective is to be able to capture at least two-thirds of upmarket returns while limiting the downside participation to less than one-third.
  2. Adding hedge funds, smoothing techniques and alternative assets is ground-breaking in living annuity portfolios. While the hedge funds focus on reducing the level of risk within the portfolio and, along with alternative investments, enhance returns, smoothing techniques create more stability, ensuring that the ups and downs of the market are not fully reflected in the exact same way as they would be in a conventional portfolio.
  3. The Glacier Invest Living Annuity Income Wrap Fund solutions aim to increase the consistency of achieving returns in line with your income withdrawal rate. The range consists of five different solutions, each targeting a specific income withdrawal rate, based on an annuitant’s willingness to take on risk.

There is no “holy grail” solution that guarantees a perfect retirement income outcome. However, the science behind these solutions significantly increases the chances of a sustainable income for retirees. Retirees with a living annuity, or clients who are about to retire, are well-advised to discuss these options with a financial adviser.

Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Valley 7536 | Email | Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web | Twitter @GlacierBySanlam | Reg No 1999/025360/07 | Licensed Discretionary Financial Services Provider FSP 770, trading as Glacier Invest.

Sanlam Life is a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43).

Sanlam Multi-Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8 | Tyger Valley 7536 | Tel +27 21 950 2600 | Fax +27 21 950 2126 | Web | Reg No 2002/030939/07 | Licensed Discretionary Financial Services Provider, acting as Juristic Representative under the Glacier Financial Solutions FSP 770.

The Glacier Investment-Linked Living Annuity is underwritten by Sanlam Life Insurance Ltd.| Email | Tel + 27 21 916 5000 / 0860 726 526 | Fax +27 21 947 9440 | Reg No 1998/021121/06 | Licensed Financial Services Provider.