Marriott Local Offshore Quicklinks News About Financial Advisor Login Invest Now Invest Now Factsheet Investment Tool Brochure International Investment Portfolio (Offshore Share Portfolio) The International Investment Portfolio (IIP) is a UK Sterling denominated personalised portfolio of international shares, bonds, real estate and deposits. Investment Choice: Investors can select one of two managed Discretionary Portfolios, both of which invest in a combination of international shares, bonds, real estate and deposits to suit individual income yield/growth objectives. 1. Income Growth This portfolio is designed to produce inflation beating income and capital growth due to its high equity exposure. Capital growth will primarily be a function of income growth as opposed to capital accumulation. A higher risk option. 2. Balanced This portfolio is designed to produce inflation hedged income and capital growth through a balanced asset allocation including equities, real estate and bonds. Capital growth will be a function of both income growth and capital accumulation. A more moderate risk option. Universe of Securities North America Honeywell Coca-Cola McDonalds McCormick & Company Abbott Laboratories Pfizer Johnson & Johnson Medtronic Colgate-Palmolive Procter & Gamble Texas Instruments Microsoft Visa United Kingdom Diageo Reckitt Benckiser Unilever British American Tobacco First World Hybrid Real Estate Plc Smurfit Kappa Europe Allianz Nestlé Sanofi L'Oréal Examples of Securities Held in our Portfolios Coca-Cola is the largest seller of non-alcoholic beverages in the world with an offering that includes fizzy drinks, bottled water, energy drinks, fruit juices and ready-to-drink teas and coffees. People in over 180 countries drink almost 2 billion servings of a Coca-Cola product every day. Unilever is a leading transnational consumer goods company, owning over 400 brands and has a massive footprint in about 190 countries. Its product range includes food and beverages, cleaning agents and personal care products. Nestlé, established over 150 years ago, is the world’s largest food and beverage company. The company operates in 189 markets across the world and last year, generated approximately 90 billion Swiss Francs in sales. Security Selection Process Our security selection process filters out any security where future dividends are hard to predict — a process which markedly reduces the risks typically associated with equity investing. These companies tend to share five characteristics which ensure predictable dividend growth: 1) fulfil a basic need; 2) strong brands; 3) pricing power; 4) growing markets; and, 5) diversification. By the nature of their business, they will be largely unaffected by broad governmental, political and economic decisions. They tend to fare well in both recessionary and growth phases of the economic cycle as their products are generally everyday necessities, with market dominance a function of their brand. With a rapidly growing consuming class, these companies are well positioned to take advantage of a growing demand for trusted brands — invest your money where you spend your money. Additional Features Asset Swap Where investors have reached their foreign investment allowance limit they can utilise Marriott's asset swap capacity to invest into IIP. This facility is also available to trusts and companies wishing to invest into IIP. Probate Death Bed Donation Marriott recommends the use of either a death bed donation and/or a joint account. A death bed donation takes effect on the day preceding the death of the investor and is the legal mechanism for transferring ownership to surviving beneficiaries. As the investment is no longer owned by the original investor on the day of their death, the investment will not form part of an offshore estate for probate purposes. From a South African tax perspective death bed donations are deemed to be dutiable property of the deceased estate* and therefore still attract estate duty. To avoid double taxation, however, they are excluded from donations tax**. * in terms of Section 3(3)(b) of the South Africa Estate Duty Act ** in terms of section 56(1) of the South African Income Tax Act Joint Account Holders An investor may elect to open a joint account with another investor. In the event of the death of one joint holder, the whole of the portfolio will automatically vest in the joint surviving holder or holders. If a joint account investor elects a death bed donation, the donation has precedence and the investor will be deemed to have donated their investment the day before their death. The investor’s portion of the joint account will therefore be transferred to the listed beneficiaries effective the day before their death. Joint accounts and death bed donations can be elected in the Investment Mandate. Investors are encouraged to seek independent tax advice suitable to their personal circumstances. Tax Taxation of Foreign Dividends Foreign dividends are taxed at 20%, whilst foreign interest earned is taxed at marginal rates by the South African Revenue Service (“SARS”). SARS allows the foreign dividends tax due to be reduced by any withholding tax applied offshore where the tax payer is the beneficial owner of the security. Reduction in Withholding Tax IIP investors benefit from a reduction in US withholding tax from 30% to 15% on dividends earned from US equities. Tax Clearance: SARS permits an annual foreign investment allowance of R10 million for individuals, and an annual discretionary allowance of R1 million per year. The latter does not require a tax clearance certificate. If you have reached your individual limit for the year then you can make use of the Marriott asset swap capacity at no extra cost. Please contact the Communication Centre for more details. Taxation of Income: The income received from the International Investment Portfolio is considered a foreign dividend by the South African Revenue Service and as such is taxed at a maximum 20%. Technical Information Minimum Investment Amount £25,000 Initial Fee 0 Investment Management Fee Costs are based on a sliding scale depending on investment size. In addition a 0.1% custody fee is levied by the custodian. Deducted from the income quarterly. Investment amount Total fee per annum, excluding VAT* £25,000 – £49,999 0.75% £50,000 – £99,999 0.70% £100,000 – £249,999 0.65% £250,000 – £499,999 0.60% £500,000 – £999,999 0.55% £1m – £1,999,999 0.50% › £2m 0.45% * For clients based outside of the EU the investment Management Fee does not attract Isle of Man VAT (20%). Financial Advisor Initial Fee Maximum 3%. Payments processed twice a month. Deducted from consideration received. Financial Advisor Annual Advisor Fee Maximum 1% p.a. Paid quarterly in arrears. Deducted from income quarterly. Income Payments Income reinvested or paid quarterly (Minimum payment of £400 applies.) Client Reporting Biannual Valuations (28 February & 31 August) Consolidated tax voucher and interest certificate annually Brokerage Fees and other Duties: Charged by third parties when placing trades, will be passed on in full. Brokerage fees will usually be charged at institutional rates as negotiated by FIM Capital Limited. Every time an underlying share is purchased or sold there is a brokerage fee and a custody settlement fee. Legal Contact Prices Forms Brochures Fact Sheets LISP Licensed Financial Services Provider. Marriott Income Specialists © Copyright 2019