D and D THE CYCLE

What is a PSP (Personalised Share Portfolio)?

A PSP is a portfolio established specifically for you by your preferred and approved investment manager. A minimum investment amount is applicable and you should discuss this with your investment manager.

You and your family may currently have an investment manager appointed to manage your non retirement assets (trust, share portfolio etc) and you wish that the investment manager should manage your retirement monies as well. The Prescient funds allows you to appoint your investment manager to manage a portfolio of assets under a Personalised Share Portfolio on your behalf. 

A great advantage of having a PSP as opposed to investing in a range of unit trusts is

1. You may specify, within certain limits prescribed by Regulation 28, which securities (including but not limited to shares, cash, bonds, property, foreign investments) the asset manager may purchase on your behalf and what level of risk you would be comfortable with. The PSP allows you to have input, and in some instances even to determine the securities to be purchased or sold.

2. The regular reporting by the asset manager is specific to your portfolio and you can arrange your specific reporting requirements with the investment manager that you appointed to manage your PSP. 

3. A PSP allows you full disclosure on all underlying costs and you do not have to rely on a periodically published TER to determine the costs.

4. You can expect to receive personalised reporting from your asset manager and to meet with your selected asset manager to discuss the performance, strategy and holdings.

5. A PSP is especially advantageous to an investor who has a trusted relationship with an asset manager and the investor wishes that the asset manager manages all his savings, including retirement savings. 

What about tax?

By transferring your benefit to a preservation fund, you are not liable for any tax on the accumulated benefit.  Furthermore, the future returns generated by the investments are not taxed.  Tax may be payable upon withdrawal or at retirement, depending on the size of the cash portion taken.

How do I invest?

Contact your financial advisor

Deciding on an appropriate investment(s) can be difficult.  The investment decisions you make now will have a considerable impact on your future and obtaining sound advice is important.  If you are in any doubt as to how you should go about structuring your investments, you should contact your financial advisor.  Financial advisors are trained to understand your financial needs and create solutions which are optimal for you. If you do not have a financial adviser you are welcome to contact us at prescient@thecycle.co.za and well refer you to an adviser with whom we have a long standing trusted relationship in whom we have confidence that appropriate advise will be given to you.

Invest directly

If you do not want advice, or have already been advised, and would like to invest directly through any of our clients then you can do so by following a very simple process which we have outlined below:

  1.  Download the relevant application form

  2.  Compile all the necessary supporting documentation, including:

• ID document containing a photo, full names, date of birth and ID number, valid passport or a valid driver’s licence

• A document less than 3 months old containing residential address that is a utility bill, bank statement, rates account or tax invoice

• Proof of banking details

• Proof of deposit (if contributing a lump sum)

• Recognition of transfer (if transferring from existing fund)

3.  Send the completed application form and supporting documentation to prescient@thecycle.co.za :

For all Investments Email prescient@thecycle.co.za

Need help?

If any of the above is not clear, please feel free to contact us through prescient@thecycle.co.za, give us your contact details and well call you.

What are my investment options?

You are able to pick from a range of investment options.  Please refer to our investment options brochure.  You are able to switch between these investment options at any point without cost.

What about retirement?

You are able to retire from your preservation fund from age 55.  In the pension fund, you can take a maximum of one third of your benefit as cash.  The balance must be used to purchase an annuity which will provide you with an income in retirement.  In the provident fund, you can take the entire benefit as cash. 

What happens in the event of my death?

If you die before retirement, your death benefit will be payable to your dependants and/or nominated beneficiaries on the basis determined by the trustees of your fund.  Legislation requires that the trustees allocate money to dependants to meet their needs before allocating money to nominated beneficiaries. 

What about transfers in?

You may transfer any and all of your existing preservation funds to the Prescient Preservation Pension or Provident Fund.

What about transferring out ?

You may elect to transfer to any other registered retirement annuity fund of your choice and there will be no penalties should you wish to transfer from Prescient to another provider.