Marriott Investment Managers

Universe of Securities

The following is a list of securities that are currently held in our portfolios:

North America

United Kingdom

Europe

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 General Information Tax

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.

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 (for South African investors only) is the permissible mechanism for transferring ownership to surviving beneficiaries. 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

There are two options for joint investors. One option is where, 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. The other option is where joint investors elect individual death bed donations. In this option, in the event of the death of one joint holder, the donation has precedence and the investor's portion of the account will be transferred to the listed beneficiaries and does not vest in the surviving joint holder.

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.

International Mandate – Minimum investment amount for new investors

Individuals: £25,000

Entities and Trusts: £100,000

Minimum IIP investment amount

£25,000 per portfolio

Initial Fee

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.)

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.

Client Reporting

Biannual Valuations (28 February & 31 August)
Consolidated tax voucher and interest certificate annually

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%).

Income Tax

Investors will earn a combination of foreign interest and foreign dividends.

Taxation of Foreign Interest

Foreign interest is taxed at an investor’s marginal tax rate on assessment, by the South African Revenue Service (SARS).

Taxation of Foreign Dividends

Foreign dividends are taxed at maximum rate of 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 who are South African residents 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.

International Investment Portfolio

Investment Choice

Universe of Securities

North America

United Kingdom

Europe

Security Selection Process

Asset Swap

Estate Planning Features

Investment amount

Total fee per annum, excluding VAT*

Existing Marriott Investors

New to Marriott

Local Investments

Offshore Investments

Preservation Fund