SHARENET INVESTMENTS BLOG

All the latest Sharenet invest news, straight from our fund managers.

What Are Unit Trusts?

Unit trusts are a well-established way for people to invest in the markets. They allow individuals access to bigger portfolios where they can enjoy the gains and cost savings associated with the size and scale of these portfolios.

Types of Unit Trusts

Unit trusts are an accessible, flexible and straightforward investment, making them one of the easiest ways to grow wealth.

Unit Trust Sectors

Fund Managers often compare their fund performance to thesector" or theirpeers", but what exactly are they referring to and how are the funds they use for comparison grouped together?

Tax in Unit Trusts

Tax can be a difficult maze to navigate for unit trust investors. Not only is there more than one type of tax applicable, but the types of products available in the market that invest in unit trusts are also taxed differently.

Income Funds

Unit trusts cater for almost any need and there is a whole category of funds dedicated to providing investors with income. This article looks at income funds and the ways fund managers invest to maintain a constant flow of payments.

Balanced Funds

Balanced fundsalso known as multi-asset funds) are by far the most popular unit trusts and is the vehicle of choice for many investors saving for retirement. Balanced funds are designed to achieve long-term real returns in a more stable and consistent manner than a single asset class fundlike equity funds).

10 Reasons to Consider Property

Unit trusts are excellent investments that can give investors the opportunity to participate in the growth of large businesses and investment assets. Property unit trusts open a door to the property industry with more to offer than an individual could ever hope for in the buy-to-let market.

Equity

Investing in equity unit trusts is one of the main avenues for investors to create wealth. Equity has historically been the asset class that delivered the best return for investors.

Fund of Funds

Fund of fundsFoF) are unit trusts that invest in other unit trusts managed by different fund managers. Fund of funds are often referred to as multi-manager funds due to the fund's exposure to multiple fund managers.

Offshore Investments Made Easy

Taking advantage of investment opportunities offshore means that you as an investor not only diversify your country risk, you also get exposure to some of the fastest growing and exciting industries globally, many of which you are probably making use of every day.

The Solution When Equity Is Expensive

This year has seen the equity market reach new record highs and finally break out of a channel that has kept it tracking sideways for nearly four years.

What Are Wrap Funds?

Wrap fundsalso referred to as model portfolios) fall into the category of typical financial jargon that financial advisers use. This article explains how wrap funds work and why many financial advisers are offering them to their clients.

FUND FAQ'S

  • A unit trust is a pool of investors’ money that is used to invest in financial instruments such as equities and bonds. The pool is divided into equal units owned by the investors in the fund who then share in the fund’s gains and losses. Unit trusts generally provide investors with well-diversified portfolios.

  • No. There is no set investment period. You decide when and how much you want to invest and you can withdraw your funds at any time. Debit orders can also be amended/cancelled at any point in time should you become unable to continue contributions to your investment. There are no penalties when you decide to withdraw from your investment.

  • You can instruct additions or withdrawals of your investment online (clients with online access only), by completing the relevant forms or by contacting Sharenet on 021 700 4800. Withdrawals will take 2 business days to be processed.

  • We have partnered up with BCI to assist with the administration of the Sharenet unit trusts. This allows us to focus solely on managing our portfolios.

  • A LISP is effectively an investment administration and product packaging business and is licensed to buy and sell units in collective investment schemes (unit trusts) on your instruction. It enables you to invest in a wide range of collective investment schemes, such as unit trust funds, via one source.

  • You will receive statements from Boutique Collective Investments (BCI), which acts as the management company for Sharenet and is responsible for the administration of the fund. BCI also offers online access (which must be indicated on the application form) to investors.

  • Once Sharenet has received a completed application and supporting documents, the investor’s account will be opened within 2 business days. The investor will receive an email from BCI confirming the account opening.

  • Yes. Investment in a unit trust is available for minors and requires additional details and FICA of a parent or guardian.

  • Your unit trust investment falls into your deceased estate, and may therefore be subject to Estate Duty. On receipt of the prescribed death notification, Sharenet will only act on the instructions received from the executor of your estate.

  • No. You can invest in Sharenet unit trusts directly from Sharenet, without incurring broker commissions or advice fees. Alternatively, if you have a financial adviser, you can make the investment via your adviser. The advice fee is negotiated between you and your financial adviser or broker.

  • Yes, this requires an income tax number. The income will be deemed to be your income, so it would be your tax number.

  • Yes. Unit trusts are collective investment schemes that are regulated by the Financial Services Board (FSB) – soon to be renamed the Financial Sector Conduct Authority (FCSA). The legal structure prevents anyone from taking your money and any withdrawals from your investment can only be made to the bank account you specify on your application form. Our custodian (Standard Bank) is responsible for the safe keeping of your investment.

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