Unit Trusts | Agathos BlueStar | Sanlam Financial Planners Potchefstroom

ABOUT UNIT TRUSTS

What you should know about Unit Trusts

Whatever your investment goal, you can create and grow your investment portfolio through Sanlam's range of unit trusts. By investing in a Sanlam unit trust, you gain access to the expertise of South Africa's top investment managers.
You don't have to invest a lot of money or spend time to understand and navigate the share markets yourself. Sanlam's dedicated investment team has the proven skills to manage risks and create consistent, sustainable performance.

A unit trust enables you to access and benefit from investments you wouldn’t necessarily have access to.

A unit trust is an investment product that pools the money of many investors and then invests the money in a variety of assets, such as blue-chip shares on the JSE, government bonds and listed property. By pooling your resources with many other investors, you can access investments that you may not normally have been able to access on your own.

There are various unit trust options that cater to different needs. If you want a low-risk investment, you can select a unit trust that invests in the money market or cash. Long-term investors who need capital growth and who can afford to take on higher risk can select a unit trust that invests in shares on the JSE. Experienced investment managers manage the portfolio with a core focus on maximising returns. They make their decisions based on extensive research. Unit trusts are also well protected in South Africa and regulated by government legislation and industry standards.

Sanlam offers a wide selection of unit trust funds, ranging from conservative low-risk funds to aggressive higher-risk funds, which have demonstrated excellent long-term performance. Sanlam’s funds invest in all asset classes, including shares, property, government and corporate bonds, cash, and offshore investments. This means you can choose the right unit trust fund to meet both your investment return and risk requirements.

Fund offering

Choose a unit trust that suits your needs.

When selecting a unit trust, you need to first consider your personal goals and determine where you are positioned on the risk scale. Ranging from conservative to aggressive, the risk scale outlines the different investor personalities to help you determine which fund is most suitable for you.

1

There’s nothing wrong with being a conservative investor. Generally, this means that you’re reluctant to lose any of the money you put away, even if it means making a smaller return on your investments. Your longer-term return should still be a healthy 1% to 2% per annum above inflation.

Sanlam Investment Management Managed Conservative Fund of Funds
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Sanlam Investment Management Active Income Fund
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For more information, view our daily prices.

2

Being a cautious investor means that you’re willing to accept a small amount of risk for a short-term loss on your initial investment. On the flip-side, your longer-term returns should be between 3% and 4% per annum above inflation.

Sanlam Investment Management Managed Cautious Fund of Funds
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Sanlam Investment Management Inflation Plus Fund
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For more information, view our daily prices.

3

As a moderate investor, you are willing to accept a bit more risk in the short term, followed by probable returns of between 4% and 5% per annum above inflation in the future.

Sanlam Investment Management Managed Moderate Fund of Funds
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Sanlam Multi Management Moderate Fund of Funds
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For more information, view our daily prices.

4

As a moderately aggressive investor, you probably believe that risk and reward go hand-in-hand. A higher level of risk on your investment should result in higher returns of about 5% per annum above inflation.

Sanlam Investment Management Managed Moderate Aggressive Fund of Funds
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Satrix Balanced Index Fund
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5

If you’re an aggressive investor, you’re here to make as much of a return on your investment as possible, no matter the risk. If you’re comfortable with high short-term risks, for probable long-term returns of 6% to 7% per annum above inflation, aggressive investing is for you.

Sanlam Investment Management Managed Aggressive Fund of Funds
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Sanlam Investment Management General Equity Fund
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For more information, view our daily prices.

Frequently asked questions

Some of your questions answered

A unit trust is an investment vehicle which gives you affordable access to the financial markets without having to buy the assets yourself. When you invest in a unit trust the money is pooled with that of other investors. This pool of money is used to invest in a portfolio of assets such as equities, bonds, cash and property, depending on the objective of the unit trust. The unit trust is divided into units of equal value, which will be allocated to you according to the amount of money you invest and the price of the units on that day.

  • A unit trust enables you to access and benefit from investments at a much lower cost than if you buy them directly on the security market.
  • From R500 a month you enjoy access to professional investment managers and index tracking funds, offering you local and international investments.
  • Unit trusts have no lock-in period, meaning that you decide when and how many units to buy, which you will own until you decide to sell them.
  • Unit trusts are also well protected in South Africa and regulated by government legislation and industry standards.

Each fund has an investment minimum which is disclosed on the minimum disclosure document (also known as fund fact sheet). You can invest a once-off amount (lump-sum), regular monthly amounts or if you are an existing investor, you can make additional investments when it suits you.

The cost associated with each fund is available in the Minimum Disclosure Document (fund fact sheet) so that you can make an informed choice.

  • Advisory Fees
    • For investors that purchase unit trusts on a BlueStar website, an on-going advisory fee will be levied against the investment in the unit trust fund for on-going advisory services that will be provided by the financial planners in the BlueStar.
  • Management Fees
    • Fees payable to the fund manager for the investment management. This is shown in the Minimum Disclosure Document of each fund.
  • Total Expense Ratio (TER)
    • The total expense ratio is a measure of the total costs, fees and expenses that were incurred and levied in the fund over a 12-month period.
    • The TER will include all costs and expenses necessary for the normal operation of the unit trust fund including management fees, but will exclude advisory fees.
    • Each fund will have a different TER which can be seen on the Minimum Disclosure Document.

The Effective Annual Cost (EAC) is a measurement that aims to standardise cost disclosures across different investment products. It is expressed as an annualised percentage and is made up of four components (investment management charges, advice charges, administration charges and other charges), which are added together. The EAC shows the extent to which the investment return will be reduced by charges over a specified period. The lower the EAC, the more cost-effective an investment is.

A number of Sanlam Unit Trust funds are available. They are categorised based on risk profile to suit investors different investment objectives and timeframes, as well as different levels of tolerance for investment risk. The investment mandate of a specific fund is linked to its risk profile and will determine which assets the fund can invest in.

Available funds can have one of the following investment risk profiles:

CONSERVATIVE: Conservative investments provide modest returns with a high degree of capital security. A typical portfolio will consist primarily of income orientated asset classes such as cash, bonds and property, with very little exposure to equities. The expected return may be close to inflation. There is therefore a risk that the real value of an investment may reduce over time, after taking fees and taxes into consideration.

CAUTIOUS: Cautious investments provide stable returns with limited risk of capital loss. A typical portfolio will consist primarily of income orientated asset classes such as cash, bonds and property, with limited exposure to equities.

MODERATE: Moderate investments should generate real returns by outperforming inflation over the longer term, but will at times experience short-term negative returns. A typical portfolio is diversified over all major asset classes to provide a balance between risk and return. There is a moderate risk of capital losses in the short-term.

MODERATELY AGGRESSIVE: Moderately aggressive investments can have a fair amount of fluctuations in the short-term returns, in anticipation of higher real returns over the long-term. A typical portfolio is diversified over all major asset classes, with a bias towards equities to create real capital growth over the long term. There is a substantial risk of capital losses in the short-term.

AGGRESSIVE: Aggressive investments aims to maximise real return over the long-term, but may experience severe short-term negative returns. A typical portfolio is diversified over all major asset classes, with a strong bias towards equities in order to significantly outperform inflation over the long-term. There is a significant risk of capital losses in the short-term.

Once you have opened your unit trust fund, register on Sanlam’s Secure Service site to access and manage your portfolio online. Simply go click on Secure Service and follow the easy steps to complete your registration. You will have access to your portfolio information 24/7 at your convenience.

Alternatively, you can contact your financial adviser (see “Contact Us” for details) or the Sanlam Collective Investment Client Contact Centre at 0860 100 266 or service@sanlaminvestments.com.

Should you have any enquiries or require additional assistance, please contact your financial adviser (see “Contact Us” for details) or the Sanlam Collective Investments Client Contact Centre on 0860 100 266 or service@sanlaminvestments.com.

The income and capital gains from your unit trust investments are taxable and you need to report it on your income tax return. Sanlam Collective Investments send investors tax certificates annually at the end of May. If a capital gain or loss is incurred, this is reflected on the IT3(c) tax certificate and the investor may be liable for Capital Gains Tax (CGT).

Interest income and dividends are reflected on the IT3(b) tax certificate. Tax on dividends is withheld, while interest income for RSA taxpayers is paid excluding tax. Dividends Tax are withheld at 20% in line with tax legislation. If you qualify for a reduction in the Dividends Tax rate or an exemption, your withholding tax rate will be adjusted upon receipt of the relevant Dividends Tax Form. You can find the form on the Sanlam Collective Investments website at www.sanlaminvestments.com.

Certain non-SA investors may qualify for an exemption from or a reduced rate for withholding tax on interest or may qualify for a reduced rate in dividends tax. In order to qualify for this, please complete the Withholding Tax on Interest Declaration Form (WTI) and/or the Dividends Tax Form (DTD)(RR), available on the Sanlam Collective Investments website at www.sanlaminvestments.com.

Remember to consult your financial planner on how to structure your investments optimally.

Forms

View, print and complete the form of your choice.

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FICA Individual

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FICA Non Individual Legal Entities

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Application Form – Individual Investors (new investors only)

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Application Form – Non-Individual Investors (new investors only)

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Application Form – Tax-Free Unit Trusts (new investors only)

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Additional Investment Form (existing investors)

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Declaration to Confirm Residential Address

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Dividends Tax Form - DTD(EX) - Exemption from tax

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Dividends Tax Form - DTD (RR) - Reduced rate of tax

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Investor Details Update Form

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Disinvestment Form

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Switching Form

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Withholding Tax on Interest Declaration Form (WTI)

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Automatic Exchange of Information (AEOI)

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Application form: Satrix Individual Investors (new investors only)

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Application form: Satrix Tax-Free Unit Trusts (new investors only)

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