Portfolio Mandate
The BullionGold Facility for Non-Residents
An investment product of SA Bullion Investor Services (Pty) Limited
Objective
This product has the objective of providing non-resident Accredited Investors with full exposure to title-owned physical gold bullion as a form of hard currency investment and as an alternative to holding cash in the bank denominated in local currency.
Portfolio Specifics
| Minimum investment |
Minimum of R350 000 or foreign currency equivalent. |
| Maximum transaction size | Maxima are imposed as a result of South African
Reserve Bank and Rand Refinery limitations and are subject to
change. The SA Bullion group restriction is 4000 ounces per day and
an overall limit of 322,000 ounces for 2009. |
| Pricing | Krugerrands are priced daily using the London PM Fix for 1 oz
fine gold and the prevailing US$/Rand exchange rate. |
| Investment timing | Investment inflows are subject to an 11h00 SA Time
cut-off. Bullion is priced using the London PM Fix and closing
official
exchange rate of the previous business day. |
| The BullionGold Facility upfront charges |
2 % |
| Gold Dealing Costs | As with all investments, there are
dealing costs associated with the acquisition of gold. These dealing
costs relate to refining and minting as charged by Rand Refinery and
The SA Mint. There are no charges associated with redemption.
In total, the transaction costs are approximately the same as for JSE equities. [The purchase and sale of equities involves brokerage,
Strate Settlement, Investor Protection Levy, VAT, Securities Tax and
the largest cost being market-impact costs (as seen in the buy-sell
spread).] |
| Administration Fee (TER*) | 2.5% per annum plus value-added tax The annual fee rate is proportionately applied (ann. rate/365) to the daily market value of the client’s holdings. Fees are accrued daily and charged monthly. |
| Insurance | Client holdings are fully insured. The cost in
respect of insurance is included in the Administration Fee. |
| Termination conditions | No notice period required. Special arrangements can
be made in the event that a client wishes to take delivery of
physical gold. |
| Value-Added Tax | The Krugerrand is legal tender in South Africa and therefore VAT
is not levied on its acquisition, unlike other forms of gold where
VAT at the rate of 14% is levied. |
| Income Tax | No South African taxes apply. |
| Included in service | 1. dealing 2. administration 3. compliance 4. safe custody 5. insurance cover 6. quarterly SA Bullion Gold Report 7. quarterly financial accounts. |