The fund mainly invests in growth opportunities where businesses are established within their life cycle, already operational and profitable, but in need of a capital injection or operational expertise.

It is our core philosophy to promote stable and secure investments for our clients.

Our portfolios promote:

• An established dividend return that is inflation driven – improving on tax efficiency.
• Returns that are anticipated, net of fees – promoting a clear expectation of returns and an investment term of 5 years – lowering transactional fees and improving stability.

Everest Wealth has 5 advantages over listed investments

1. Consistent Returns
Our returns are fixed and reviewable as opposed to listed solutions that experience daily capital volatility.

2. True ‘real’ returns
Since our inception, our local offerings have maintained a double-digit return, after fees and taxes, to our investors.

3. Diversification
Everest Wealth products exist in the alternative asset class, enabling you to diversify your investment portfolio independently to the traditional investment market. Your portfolio is diversified further across more than 10 business sectors within the alternative asset class.

4. Absorbed EAC
We structure our investment process in such a way that the investment costs are absorbed into the investment solution, as opposed to being deducted from our clients’ yield.

5. Efficient tax structures
Our solutions’ returns are dividend-based, subject to a tax rate of 20% instead of interest returns, which are taxed at the client’s marginal income tax bracket rate (0-45%).

Listed investments offer multiple opportunities through active trading methods and indepth knowledge. Listed investments also fluctuate on a day-to-day basis, as each share is valued at the end of the business day, based on the volume of shares traded during that day, resulting in both higher, and lower than benchmark, returns on any given day.

R2 480 000 000

Strategic Income Portfolio
A solution for clients requiring a consistent income over 12-month periods, with no access to their capital during the 5-year term. Returns are fixed at 12.8% per annum, paid monthly.

Strategic Growth Portfolio
A solution for clients requiring a high and consistent annual return yield, with no access to their capital over the 5-year term. Capital is valued in ZAR but returns and linked to the GBP. Returns are 8% per annum, paid annually in GBP.

Strategic USD Income Portfolio
A solution for clients requiring consistent income over 12-month periods, with no access to their capital over the 5-year term. Capital is valued in ZAR, but returns are linked to the USD. Returns are 8%-10% per annum, paid monthly in USD.

Fixed returns
Fixed returns are investment returns that are predetermined and do not fluctuate with the market. If an investment consistently generates higher-than-average total returns, it can set the quantum of capital from its own balance sheet and profitability and yields to different classes of investors.

Volatile returns
Where capital value is priced, and changes daily, the yields in the form of interest, dividends or rental income will fluctuate more frequently. Historically this risk has been compensated for with higher returns over the long term. However, this additional compensation has been far less prevalent over recent long-term cycles.

Guaranteed returns
Where capital value, as well as yields, are secured by the balance sheet of an institution, typically a bank. Important is that extreme events such as Covid and war has taught us that there is no such thing as a true guarantee, free of any risk, in our volatile global economic climate.

Interest
Interest refers to compensation for money being borrowed to an entity or individual in return for regular payments, taxed at their investor’s marginal income tax bracket, post very small tax-free interest values from SARS of between R23 800 and R34 500.

Dividends
Dividends refer to the amount paid due to direct ownership of equity in an entity where the owner is subject to the profit share of that particular entity but taxed at a fixed rate of 20% throughout South Africa if the entity paying the dividend is also based in South Africa. Furthermore, where a South African entity is the one receiving this dividend then the tax rate drops to 0%.

Understanding the difference between a guaranteed investment and a fixed investment lies with the security of the issuer. Banks are typically far larger institutions, however larger does not mean no risk on a guarantee, as Covid and other economic crises have taught us. Traditional guarantees are often issued by a bank, but at a far lower tax rate than fixed investment providers.

Continued economic underperformance of all economic sectors simultaneously, which is highly unlikely other than in an extreme market crisis.

A minimum of 5 years. Early withdrawals will lead to additional fees or penalties.

You can request your investment statement via email from [email protected] or directly from your financial advisor.

The Everest Wealth online portal and app are currently being developed.

Statements are typically issued quarterly, or can be requested it from your financial advisor.

These forms can be requested from your financial advisor or downloaded from the Everest Wealth website – www.everestwealth.co.za

Contact your financial advisor or alternatively, call our head office – 087 654 8705. Alternatively, send us an email on [email protected].

Upon entering an Everest Wealth voluntary investment, the beneficiaries should be nominated by the client within their estate. Upon death, the estate’s executor must notify Everest Wealth, and our administrative staff or fiduciary specialists will guide them through the process.

• The investment may be transferred into the names of the beneficiaries.
• The investment may be transferred into the name of the deceased estate.
• The investment may be disposed of or redeemed, and the cash proceeds may be paid to any beneficiaries, or
• The investment may be disposed of or redeemed, and cash proceeds may be paid into the deceased estate.

• A ‘Death Claim’ form should be completed and submitted with supporting documents.
• Upon signing the Death Claim form, the executor will advise Everest Wealth which option has been selected.
• Everest will accordingly, and within the T’s and C’s of the investment, ensure the disposal, redemption, or transfer of the underlying investments.

• Redemptions of Everest Private Equity investments are subject to approval by the fund issuer.
• Once approved, if redemption is within 5 years of inception, early redemption fees will apply.
• All redemptions, whether prior to, at, or post year 5, require a notice period of 120 days for receipt of funds.

At maturity investors will be given 2 options:

1. Cumulative returns or special dividends
You have the option to re-invest these returns, or to have them paid out (payment will occur 30 days post the maturity date.)

2. Capital value
You may choose to continue the investment or to redeem the capital. A 120-day notice period still applies, and clients are encouraged to complete the required ‘Maturity form’ 4 months prior to the investment maturity date.

The dividend returns are paid out on an after-tax basis and will thus not be subject to any taxation. An IT3(b) form will be sent to each investor to submit to SARS.

Dividends from South African companies to:

• Individuals – taxed at a fixed rate of 20%. Net funds received are then tax free.
• Trusts – taxed at a fixed rate of 20%. Net funds received are then tax free.
• South African companies – taxed at a rate of 0%.

Tax certificates are issued between end May and end August each year, for the prior taxyear.

Legally, yes. However Private Equity is typically not accepted as a form of collateral due to its illiquidity.

Some investors choose to reinvest their dividend payment into a third-party fund that will generate further returns.

A Private Equity fund generates income through its underlying assets. Everest Wealth’s fund owns the majority share of all of its assets and will thus be subject to the profit generated by these assets.

For voluntary investments, fund share certificates are issued in the name of the investor (Everest Wealth) and are kept in safe keeping according to Custody of Securities regulations. Everest Wealth reports all details and value of the investment to the client, who can request a copy at any time.