Your ever-increasing chances of living to an older age and the timing of your retirement are important factors that we’ve kept in mind in the design of the Glacier Invest Real Growth Solutions. When you invest, preserving and growing capital, and reducing the effects of market volatility on your portfolio, are important to you, and they’re important to us.
Darren Burns, Head of Glacier Invest, explains how these solutions help you achieve your investment goals and the role they can play in endowments.
We aim to reduce instability in your return profile, preserve your capital and offer some protection when markets are down. This means that you can grow your wealth almost as much as everyone else when markets are flourishing but protect it much more when markets are struggling. Think of it as having some of your cake and eating it too. So, the cake stays bigger over time which means you get to enjoy it for a longer period!
The Glacier Invest Real Growth Solutions reduce volatility, provide access to underlying investment structures not readily available to an investor, and enable you to use your endowment as a source of income after the initial mandated investment period of five years. They are currently accessible on the Glacier platform, through the Glacier Vantage Life Plan, which is an endowment.
We use portfolio construction tools that, to an extent, can reduce the impact of living longer than expected or retiring just before or just after a market slump. This innovation is achieved through the use of non-traditional investment tools that historically were not available to the average investor. The tools used are hedge funds, smoothing techniques and alternative assets. Our solutions are also well-diversified, with asset management strategies that are different, yet complement each other to achieve a smoother return profile.
Endowments are tax-efficient investments with a minimum investment period, by law, of five years. They have many advantages, which make them attractive savings vehicles, not only for the near future but also for the longer term, such as to supplement income in retirement. In a nutshell, here’s what they offer:
The Glacier Invest Real Growth Solutions are currently accessible on the Glacier platform, in the Glacier Vantage Life Plan, which is an endowment. They aim to provide investment returns that can sustain annual income withdrawals of 5% and 6% but more importantly, without eating into your capital on an inflation-adjusted basis. These solutions also aim to provide said returns at a lower level of volatility than other investment portfolios in comparable fund categories.
So, here’s what’s important to know:
In these times of uncertainty, protecting your investment capital and ensuring that the investment growth keeps up with your withdrawal rates is important to you – and to us. The traditional approach to portfolio construction isn’t helpful in achieving this. Investing for the future requires some protection against market downturns and volatility, and investment returns that will keep up with regular withdrawals. The Glacier Invest Real Growth Solutions aim to do just that.
Glacier Financial Solutions (Pty) Ltd is a licensed discretionary financial services provider, trading as Glacier Invest FSP 770.
Sanlam Multi-Manager International (Pty) Ltd FSP 845 is a licensed discretionary financial services provider, acting as Juristic Representative under Glacier Invest (Pty) Ltd.
The Glacier Invest Real Growth Solutions are managed by Glacier Financial Solutions (Pty) Ltd.
The Glacier Vantage Life Plan (endowment) is underwritten by Sanlam Life Insurance Ltd.
Sanlam Life is a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43).