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Linked Investment Islamic Investment Plan Versatile, ethical investing aligned with your values
Linked Investment
Islamic Investment
Plan
Versatile, ethical investing aligned with
your values
Shari’ah-compliant investing
This investment product is managed and administered in accordance with Shari’ah and has a range of plans help to achieve diverse investment objectives. By giving you personal control over your portfolio, you can rest assured that no money is invested in, or proceeds derived from, business activities deemed non-permissible by the Supervisory Shari’ah Board of Absa Islamic Banking. These include: alcohol, tobacco, pork-related products, financial services, arms manufacturing and immoral entertainment ventures.
Some Shari’ah compliant investments might yield small percentages of income thatare considered non-permissible by Shari’ah standards (from, for example, interest-bearing investments or non-core business activities associated with the underlying assets), but this income will be purified. Absa Investment Management Services (AIMS) will calculate the exact amount of all non-permissible income generated and distribute those proceeds to charitable organisations approved by the Shari’ah Supervisory Board of Absa Islamic Banking.
Ideal investor
This product will suit individuals who:• wish to invest in a Shari’ah-compliant investment, with protection from non-
permissible activities and proceeds• wish to achieve capital growth and who have a medium to long-term investment
horizon• have voluntary savings they wish to invest in products with ethical investment
mandates.
How does the Islamic Investment Plan generate proceeds?
The Absa Islamic Investment plan provides investors with the ability to construct their own diversified portfolio by selecting from a range of Shari’ah compliant local Collective Investment Schemes (CIS) Funds and JSE-listed Exchange Traded Funds (ETFs) available on the platform. These include:
• The Oasis Crescent Balanced Progressive Fund of Funds• The Oasis Crescent Equity Fund• The Oasis Crescent International Feeder Fund• The Element Islamic Equity Fund, and• The Shari’ah Top 40 ETF
The benefits of the Absa Islamic Investment Plan
• Versatility – providing personal control over the investment portfolio• Flexibility – the ability to switch between investment options• Accessibility – withdrawals and additions allowed according to relevant product
terms• Liquidity – investment in this Plan can be ceded during the term, as collateral or
as an outright cession. (Note that the acceptance of the investment as collateral is at the discretion of the financial institution approached).
Most importantly, perhaps, is complete protection from non-permissible income. All proceeds not permitted by Shari’ah are donated to charity. The client accepts up front that he/she will have no rights to such proceeds, and that such income does not belong to, or accrue, or be received by, the investor.
Tax implications
Absa does not, and may not, at any point in time, provide you with tax advice. It is imperative that investors receive impartial and accurate tax advice from an authorised tax professional. Taxation will depend on your personal circumstances and we advise all investors to obtain independent tax advice.
What will it cost?
Annual administration fee (VAT inclusive)
First R250 000 0,75%
Second R500 000 0,50%
Above R750 000 0,25%
Maximum adviser fees per product
Independent Financial Advisers (IFAs) Absa Insurance and Financial Advisers
Initial advice fee Annual advice fee Initial advice fee Annual advice fee
5,00% 1,00% 3,00% 0,50%
Investment minimums
Lump sum investment Recurring investment Additional investment Repurchase
R50 000 R500 Any Any
Fees above are VAT exclusive and VAT will be levied where applicable.Any annual or initial financial adviser fees are negotiated between yourself and your financial adviser. There is an additional cost incurred in the form of fund management fees and depends on the underlying funds selected.
Terms and conditions for this product are available on www.absainvestments.co.za
Risk Description
Investment risk
The product does not guarantee the investment performance of the underlying investments. Such performance will depend on the investments selected, the value of which can increase or decrease. Accordingly, any investment risk will be carried by the investor. Since the underlying investments are generally linked to market performance, a market downturn can lead to a decline in the value of these investments, which in turn could lead to reduced income and/or how long the investment capital will last.
Portfolio diversification risk
The investor should carefully consider the exposure that investing in this product would have on their overall investment portfolio.
Liquidity risk
The liquidity on the product is directly linked to the liquidity of the underlying funds selected by the investor. The product allows for only one withdrawal within the first five years of investment subject to legislative limits per Section 54 of the Long-term Insurance Act.
How to get started
Speak to your financial adviser or visit absainvestments.co.za to get started with your investment.
For more information contact AIMS Client Service (operating hours: Monday to Friday 08:00 to 16:30)
Tel: 0860 000 005 | Fax: 0861 339 265 | Email: [email protected]
Terms and conditions apply
The information does not constitute investment, legal, tax or other advice and is not to be relied on in making an investment or other decision. The risks associated with the buying and selling of financial products and the investment values of this financial product is not guaranteed as its performance will depend on the underlying funds. Furthermore, the information does not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002. AIMS cannot be held liable in anyway whatsoever for any investment decision made as a result of any information contained herein.Absa Investment Management Services (Pty) Ltd Reg No 1980/002425/07 an Authorised FSP – FSP No 524
