2 years ago

Blue Chip Issue 81

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  • Advisers
  • Institute
  • Planning
  • Financial
  • Financialplanning
  • Financialplanners
  • Solutions
  • Equity
  • Investments
  • Investing
  • Investors
  • Advisors
  • Momentum
  • Funds
  • Global
Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry. Blue Chip takes this opportunity to wish the FPI a happy 40th anniversary. Congratulations!


OFFSHORE AN OPPORTUNITY WRAPPED IN GOLD Glacier International offers access to international investment opportunities. Traditionally, this was via unit trusts and share portfolios, but investors can now access global market indices via low-cost exchange traded funds directly through the Glacier International platform. Blue Chip speaks to Andrew Brotchie, MD, Glacier International. Please tell us about the new exchange traded funds (ETFs) that are available direct on the Glacier International platform. Clients have always had the ability to buy ETFs, but it required them to open a custodian account within our platform and then to trade directly with a third-party provider. We’ve recently made available a range of ETFs directly on the platform. They can be traded directly by our clients who have unit trust portfolios. ETFs are very successful overseas and we do have a way to go The Global Life Plan, an offshore endowment, offers investors financial planning benefits including estate planning advantages and solvency protection. to catch up with this trend locally. We feel it was an important step in our evolution to be able to offer our clients direct access to these investment opportunities on the platform. It’s about us expanding the ability for our clients to access the various ways of gaining international exposure in their portfolios. ETFs help clients control their cost of investing. An ETF is a straightforward option to get access to international investment opportunities without having to do research oneself to try to find the best actively managed options in a foreign country. Why invest in an ETF? Cost is a big driver. The other benefit is straightforward index exposure to different opportunities. It allows quick-and-easy access from a flexibility perspective. You don’t necessarily have to research which fund is the most appropriate for a specific area or sector; you can buy the ETF that covers an index relevant to that area or sector. How does Glacier International select its ETFs? We offer a range of ETFs that our research team has selected. We have a core offering that covers the major markets around the world, such as the MSCI World, MSCI Emerging Markets, S&P 500, Euro Stoxx 50, Japan, and Developed Markets Property Yield indices. We also have thematic (ESG) and specialist ETF offerings, like gold. Please provide an overview of the Global Life Plan. The Global Life Plan, an offshore endowment, offers investors financial planning benefits including estate planning advantages and solvency protection. Glacier International is responsible for the calculation, collection and administration of any tax due, therefore the investor has no personal tax administration to take care of. Any tax paid may be less than they would pay in their personal capacity, depending on their tax rate. International estate duty rules won’t apply in the case of the Global Life Plan. In addition, the investor can nominate beneficiaries to receive the funds on their death, and these funds will not form part of the winding up of the estate. Why does an offshore life wrapper – or endowment structure – make sense? Traditionally, as South African markets started opening and people started taking advantage of international opportunities, they would either go direct or set up an offshore trust, typically. Today, offshore life wrappers are the preeminent vehicle for investing money offshore. They offer many of the same benefits as trusts, often with significantly reduced costs, as well as providing administrative flexibility to manage international portfolios that can span many jurisdictions. Their financial planning benefits – as set out above – as well as their ease of administration really can help to simplify the management of a client’s international investment exposure. Andrew Brotchie, MD, Glacier International

Franklin Templeton is now MORE INVESTMENT MANAGEMENT At Franklin Templeton, we strive to always deliver more for our clients. Our recent acquisition of Legg Mason makes us the sixth-largest independent fund manager in the world. Together, we bring extensive histories that now offer more investment experts, comprehensive analytics and research insights on the ground. Franklin Templeton brings together an unmatched collection of independent specialist investment managers (SIMs) to provide their clients deep expertise and specialisation – within and across asset classes, investment styles and geographies. And they offer hundreds of strategies across active, smart beta and passive approaches – in a full range of vehicles. Our story One thing has driven Franklin Templeton’s growth and evolution: our focus on delivering better client outcomes. It is why we have built a world-class investment firm that aims to offer the best of both worlds: global strength and boutique specialisation. And it is the reason clients in more than 165 countries have entrusted us with their investments, making us one of the world’s largest asset managers with US.55-trillion in assets under management. Nimble where it matters All told, our SIMs comprise approximately 1300 investment professionals located across 20+ countries, giving us an ear to the ground in the world’s most significant markets. And they’re backed by a strong, global infrastructure with at-scale capabilities in research, data analytics and servicing. This combination of independent, entrepreneurial SIMs and global strength makes us uniquely agile. Unparalleled in our ability to customise While our structure makes us agile, our scale lets us offer hundreds of strategies across active, smart beta and passive approaches – in a full range of vehicles. And we boast extensive multi-asset capabilities. So, we never need to favour a particular type of solution. Instead, we can provide options best suited to the unique needs of every client, institutional or individual. And beyond our core function of delivering investment returns, we provide our clients with tailored support through a global distribution platform, technology-based tools and value-added services. Guided by long-term value creation We believe it is just as important to drive long-term success as it is to seize today’s opportunities. As a closely held public company with an impressively strong balance sheet, we can invest and manage our company for the long term. That’s what lets us keep building on our long track record of developing innovative products and tools for our clients, fuelled by our Silicon Valley roots. Our values-based culture means we do the right thing for our clients and our people. One thing has driven Franklin Templeton’s growth and evolution: our focus on delivering better client outcomes. All data as of 30/06/21. Assets under management represent combined assets of Franklin Templeton, Legg Mason, and subsidiary investment management groups. Franklin Templeton acquired Legg Mason on 7/31/20.

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