"Trust and Succession Planning for Expats and Non-residents"
QROPS (Qualifying Recognised Overseas Pension Scheme)
A QROPS is a Pension Scheme that can have significant investment and taxation advantages to individuals with UK pension rights who have or will become non-resident in the UK for tax purposes.
There are significant benefits for UK nationals living in South Africa in transferring their UK pensions away from UK tax legislation into a QROPS. St. James Global has extensive experience in assisting clients with their QROPS and would be pleased to obtain a transfer value from your UK scheme to enable the preparation of a cost/benefit proposal.
An individual may wish to establish a QROPS in a jurisdiction with favourable pension rules. This makes it possible to achieve significant tax and investment advantages when compared with a UK pension.
QNUPS (Qualifying Non-UK Pension Scheme)
A Qualifying Non-UK Pension Scheme (QNUPS) is a pension scheme that affords investors the opportunity to build Inheritance Tax (IHT) savings into their retirement planning.
QNUPS are available to people who are either UK resident or resident elsewhere in the world but have retained their UK domicile status for IHT. The concepts of “domicile” and “residence” are different and need to be considered in their own right. Even if you left the UK some time ago and consider yourself to have no more links to it, you may still be domiciled there for the purposes of IHT.
QNUPS are exempt from UK inheritance tax, so their major benefit is that they enable individuals to pass on their assets to their heirs, free from death duties. Unlike many other pension schemes, a QNUPS can accept money that has not been earned in employment.
QNUPSs can accept virtually any type of asset that is traditionally associated with retirement funding (i.e. property), but can also hold assets that may not typically be linked to pensions – such as vintage cars, artwork, aircraft, boats, and antiques.
As is the case with a UK private pension scheme, you cannot typically access benefits before the age of 55.
St. James Global can assist with all HMRC requirements for UK expats and UK tax residents living in South Africa.
Investment Advisory Services
Having an extensive clientele who are either retired or approaching retirement, over the years we have gained a thorough understanding of what our clients’ expectations are regarding their offshore investing. We have built our business around investment solutions that are simple, easy to administer, and remain unchanged in the event of the death of the first spouse. We believe that the continuity of management, service and performance is essential for catering to future generations.
Most of our clients are risk averse and are at the stage in their lives where capital preservation is more important than wealth creation. We are neither stockbrokers nor market traders. Our investment solutions are based on products that invest in a broad range of stock-market indices, exchange traded funds, and collective investments, in many cases with a high degree of capital protection and an emphasis on maximizing retirement income and long term growth. Most of our investment solutions are designed specifically for pension trusts and are approved by pension trustees.
As a member of GlobalNet, we are able to offer an extensive range of offshore investment opportunities to help you diversify your wealth portfolio. We have access to the entire spectrum of international investment houses, products, and institutional funds – all of which are screened through a rigorous due diligence process prior to being accepted on the GlobalNet and the St. James Global approved product matrix.
We are able to assist you with all of your foreign exchange requirements and on ways to take advantage of the annual offshore investment allowance applicable to South Africans.
With St. James Global, the diversification benefits relating to country, asset and currency-specific risk, access to real growth in low inflation environments, building wealth through structuring efficient investment vehicles and estate planning opportunities within tax neutral environments are more readily available than ever before.
Risk-related Investment Strategies
At St. James Global, our investment solutions are based on tailor-made, age-related, risk-profiled portfolios. An investor approaching retirement will have a significantly different risk profile and tolerance than an investor in their forties or fifties.
A thorough risk assessment is completed for each client at the outset and this forms the basis on which the funds will be invested. Once the investor risk profile has been measured, the appropriate investment objective and term will coincide with the investor profile (either defensive-, balanced-, or growth-focused). Based on each of these investor profiles a portfolio of investment instruments will be selected with varying exposure to equities and other asset classes. Non-Equity exposure could include property, fixed income, bonds, and alternative investments (i.e. structured products and ETFs). It is important that our clients have input in the risk assessment process as this creates a mutual understanding of risk.
We offer a broad range of offshore investment solutions via local and international investment platforms and discretionary fund managers, in conjunction with our offshore trustees and providers.
Strategic Investment Partners
St James Global are proud to announce their strategic partnership with Morningstar Investment Managers South Africa. We have designed a range of active and passive investment models available in ZAR or GBP, which form the core of our clients’ investment portfolios.
Quarterly joint investment committee meetings ensure that our clients’ portfolios are aligned with investment mandates, prevailing market conditions, clients’ risk profiles and investment objectives, at all times.
Complementary to the Morningstar offerings, we provide clients access to some of the world’s most respected discretionary fund managers like Quilter Cheviot, Brooks McDonald, Rathbones and Sanlam Private Investments.