Secured Investment

1. 11.2 % returns per annum over 5 years

2. Capital Security

3. No initial fees

Participation Bond

Unsurprisingly, this low risk, high yield fixed deposit investment is popular option with individuals of all ages, as well as pension funds, fund managers, trusts, charities and schools. Apply for a fixed investment today if you want to secure an additional income stream for yourself on a monthly basis, or reinvest your interest. The perfect solution for retirement in

What are the benefits of investing in Participation Bond?

Invest Option

Earn a higher rate by reinvesting your
interest each month. That means maximum capital growth. Simply invest a lump sum of at least R5 000; your capital is secure for the full five-year term.
At the end of this term, you can then choose to withdraw your investment, or continue with us.

Income Option 

This option allows you more room to move. You’ll be able to draw income from your investment, at a very competitive interest rate. Simply invest a minimum lump sum of R5 000, and you’ll be able to withdraw the interest each month. Your capital is secure for the full term.

You can withdraw all the interest accrued,
or just a portion of it. This is a great option if you’d like a regular monthly income, or if you want to save while still having some flexibility.

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Transparent fees and regular reporting

All fees are fully disclosed and we will keep you regularly informed on all aspects of your investment. You may also access your investment information online.

Transfer of wealth

You may nominate a beneficiary on your Participation bond. In the event of your death, the money in your Participation bond account is paid out to your beneficiary, and you do not pay executor’s fees.

interest taxable

Interest is taxable in the hands of the investor, subject to the income tax regulations which may apply from time to time.- Currently R23 800 for under 65’s and R34 500 for over 65’s. An IT3b is sent to clients on an annual basis. Whether interest is being reinvested or taken out, the same applies, because income tax is payable on the earlier of receipt or accrual. The interest accrues to the investor prior to it being reinvested, which therefore makes it taxable.

What are the minimum investments?

The minimum once-off lump sum investment is R5,000.

Capital Withdrawal & Redemption 

In accordance with the requirements of a Collective Investment Scheme, the investment period is fixed for five years, whereafter the investor may choose to reinvest for a further five year period or withdraw the funds. The tax free savings product is not subject to this investment period and may be withdrawn with 5 days notice. The investor may choose to receive interest payments on the
capital amount, or may choose to reinvest the interest.  All or part of the investment may be repurchased by the Manager within the initial five year period, provided that the repurchases will only be effected three calendar months after receipt by the Manager of written notice and all necessary documentation as determined by the Manager. Depending on the investor’s chosen option, the Manager will charge a reasonable cancellation fee.

What are our fees?

For lump sum investment, our initial advice fee is up to 3.0% plus VAT.

Our annual advice fee is 0.9% plus VAT, deducted monthly from your participation bond account.

For clients with investment portfolio greater than R3 million, our fees are negotiable on a sliding scale. 

For recurring premium investment, our advice fees are included in the administration fee charged by product provider.

Our product providers

Fedgroup