Benefits and Features Summary

High Income Yields

First World interest rates at multi-decade highs.

Tax-Efficient

Less tax. No situs tax.*

Low Cost

Two fee levels depending on investment amount.

Less Risk

High quality, liquid investments.

Active Asset Management

Portfolios managed by experienced investment professionals.

Asset Swap – no additional cost

For individuals, trusts and companies.*

Multi-jurisdictional Tax Reporting

Select your own tax year dates.

Efficient Estate Planning – no probate

Death Bed Donation* and joint accounts.

*South African Investors

Smart Dollar and Smart Sterling Portfolios

The Smart International Income portfolios are invested in investment grade, interest-bearing instruments to provide an attractive yield in hard currency with less capital risk.

	Smart Dollar Portfolio	Smart Sterling Portfolio
Approximate Gross Yield*	±5.6%	±5.1%
Average Credit Rating	A	AA
Interest Rate Sensitivity	1.1	1.0
*Yield to maturity, before investment management fee and custody fee. Model Portfolios, as at 30 June 2024

Asset Allocation

Dollar Portfolio

Sterling Portfolio

•	Corporate Bonds 10%
•	Floating Rate Notes 45%
•	Short-dated Corporate Bonds 45.0%

•	Investment Grade Bonds 13.0%
•	UK Government Bonds (Gilts) 12.5%
•	Money Market 74.5%

Model Portfolios, as at 30 June 2024

Benefits and Features Details General Information Tax

High Income Yields

First World interest rates are currently at multi-decade highs as evident in the chart below. As such, attractive hard currency returns are possible with significantly less risk.

Less Risk

We keep it simple. The portfolios will hold liquid, investment grade instruments with a relatively short average term to maturity. As such, the investment outcome is highly predictable.

Active Asset Management

Asset class exposures, credit quality and interest rate sensitivity are managed on a discretionary basis by FIM Capital Limited's team of investment professionals based on the Isle of Man with over 100 years of combined market experience.

Asset Swap

Where South African investors have reached their foreign investment allowance limit, they can utilise Marriott's asset swap capacity to invest into the Smart International Income Portfolio. This facility is also available to trusts and companies.

Estate Planning Features

The options of a death bed donation and/or joint account are available as estate planning features.

Death Bed Donation

A death bed donation takes effect on the day preceding the death of the investor and is the permissible mechanism for transferring ownership to surviving beneficiaries within South Africa.

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 an individual 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 International Investment Mandate. Investors are encouraged to seek independent tax advice suitable to their personal circumstances.

Low Cost

Smart Dollar Portfolio		Smart Sterling Portfolio
$30,000 – $300,000	0.5%	£25,000 – £250,000	0.5%
›$300,000	0.38%	›£250,000	0.38%

Minimum investment amount for new investors

Individuals: £25,000 / $30,000

Entities and Trusts: £100,000 / $125,000

Initial Fee

Investment Management Fee

0.38% – 0.5% p.a.*

Custody Fee

0.1% p.a.*

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.*

Client Reporting

Biannual Valuations (28 February & 31 August)

Tax reporting available for multiple jurisdictions

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.

Brokerage fees, custody settlement fees and payment charges may be incurred for both the purchase and sale of underlying shares. Where possible, all such charges will be levied on a pro-rata basis.

*Deducted from capital quarterly.

Tax-Efficient for South African investors

Holding interest-bearing assets via accumulating ETFs* and funds is highly tax efficient as all income is automatically retained in the portfolios without incurring tax. The "roll-up" of income produces an increase in the value of the underlying funds and enables returns to compound tax free.

When capital is required, the investor can simply repurchase the required amount. Although a tax charge is triggered at this point, it will be subject to capital gains as opposed to income tax. The table below highlights the potential tax benefit for South African individual investors with different marginal tax rates.

Marginal Income Tax Rate	CGT Rate (applicable on withdrawls)	Benefit
45%	18%	27%
40%	16%	24%
35%	14%	21%

Situs tax is also not applicable to South African investors in the Smart International Income Portfolio as all the underlying investments are registered funds domiciled in Ireland.

* An Exchange-Traded Fund (ETF) is a type of low-cost pooled investment which is designed to track a particular index, sector, or basket of securities. They are purchased and sold on a stock exchange (like an individual equity) and provide efficient access to a range of diversified investments, including investment grade credit and bonds.

Multi-jurisdictional Tax Reporting

In addition to biannual portfolio reporting, investors may select the tax year in which they would like to download their investment reports.

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 Client Relationship Team for more details.

The Smart International Income Portfolio

Benefits and Features Summary

High Income Yields

Tax-Efficient

Low Cost

Less Risk

Active Asset Management

Asset Swap – no additional cost

Multi-jurisdictional Tax Reporting

Efficient Estate Planning – no probate

Asset Allocation

High Income Yields

Less Risk

Active Asset Management

Asset Swap

Estate Planning Features

Low Cost

Tax-Efficient for South African investors

Multi-jurisdictional Tax Reporting

Tax Clearance:

Existing Marriott Investors

New to Marriott

Local Investments

Offshore Investments

Preservation Fund