Investment Management

UNIT TRUSTS

A simple way to maximise on market exposure

Our Unit Trusts offer greater diversification and minimal risks, while providing added peace of mind as they are part of a well-regulated industry. Whether the plan is to save for a short-term or long-term goal, we can help you attain your investment objectives.

What is it?

A Unit Trust pools money and invests in shares, bonds, money market instruments and other investments. The pool is then divided into equal portions called units. Each unit has a price or Net Asset Value (NAV) based on the value of all the assets held in the fund. Your units increase in value as the fund’s overall performance improves.

Tier 1: Location

Funds are grouped by where they sit - South Africa, Worldwide, Global or Regional. South African funds, for example, must have at least 70% of assets invested in South Africa at all times.
Tier 2: Type

The second tier refers to the type of investments you might find in the fund. The rules are very specific to ensure that you know what you’re getting into:

• Equity Portfolios: These hold a minimum of 80% of the portfolios in equities.

• Multi-Asset Portfolios: These funds invest in a combination of assets including equity, bonds, property and cash. These portfolios may be aggressively managed with assets being shifted according to market conditions or they may have low levels of equity exposure and be more conservative.

• Interest Bearing: Money Market Portfolios - These funds target interest income as their goal and often aim to preserve the portfolio’s capital over an agreed term and provide immediate access to your money.

• Real Estate Portfolios: These funds invest in listed property shares, and real estate.
Tier 3: Area of focus

Tier three gets more specific about the detail of the types of investments in the specific area of focus. Equity funds, for example, have different categories depending on their focus that can include General Equity, Large Cap, Resources and Financials.

What can it do for me?

Unit Trusts provide a low-cost, easy-to-understand way of taking part in the stock market. The funds are managed by experts and generally offer sound returns. However, no fund is without some element of risk, so it is important that you understand costs related to the trust you choose. We recommend you speak to a broker to ensure you get a fair deal. Some benefits include:

It’s for everyone

You do not need large sums of money to get going, it’s accessible to all.

Easy to sell

You do not need to wait for long periods if you need to access money.

Secure investments

Your money is in safe hands as legal structures prevent suspicious acts.

What does it cost?

Unit Trusts are designed for earners across the investment landscape. You can choose to invest in lump sums, monthly debit orders, or a combination of the two. The minimum required amount depends on the fund selected. We suggest reaching out to a financial adviser for guidance in this regard. Remember to only invest what you can afford in relation to what you want to achieve.

Minimum investment

Initial lump sum investment
R2 000

Monthly investment
R200
Fees and charges

Initial administration fees (lump Sum)
Absa 0.00%
Adviser 0 - 3.45% (@ 15% VAT)

Annual administration fees
Adviser 0 - 1.15%

There is no performance fee.
Tax implications

• You are taxed on interest received from your investments.

• You will also pay Capital Gains Tax on profits made when you sell your units for a higher price than you bought them for.

• How much you pay depends on your income tax bracket, age and if any rebates are applicable to you.

You can apply for any one of the following funds

Interest bearing Income

Fund	Minimum Disclosure Document
Absa Multi Managed Bond Fund	MDD
Absa Money Market Fund	MDD
Absa Inflation Linked Income Fund	MDD
Absa Income Enhancer Fund	MDD
Absa Bond Fund	MDD
Absa Core Income Fund	MDD
Absa US Dollar Income Fund	MDD
Absa Sterling Income Fund	MDD
Absa Euro Income Fund	MDD
Absa Tactical Income Fund	MDD
Absa Flexible Income Fund	MDD
Absa Multi Managed Income Fund	MDD
Absa Smart Alpha Income	MDD
Absa Fundisa fund	MDD
Absa Bond Index Fund	MDD

Multi-Asset - Low Equity (Max 40%)

Fund	Minimum Disclosure Document
Absa Multi Managed Preserver Fund of Funds	MDD
Absa Smart Alpha Defensive Fund	MDD
Absa Absolute Fund	MDD
Absa Inflation Beater Fund	MDD
Absa Global Multi Asset Feeder Fund	MDD
Absa Multi Managed Passive Preserver	MDD

Multi-Asset - Medium Equity (Max 60%)

Fund	Minimum Disclosure Document
Absa Wealth Preserver Plus Fund	MDD
Absa Multi Managed Accumulation Fund of Funds	MDD
Absa Balanced Fund	MDD
Absa Multi Managed Passive Accumulation Fund	MDD

Multi-Asset - High Equity (Max 75%)

Fund	Minimum Disclosure Document
Absa Multi Managed Growth Fund of Funds	MDD
Absa Prudential Fund of Funds	MDD
Absa Multi Managed Absolute Return Prudential Fund	MDD
Absa Managed Fund	MDD
Absa Multi Managed Passive Growth	MDD

Equity

Fund	Minimum Disclosure Document
Absa SA Core Equity Fund	MDD
Absa Select Equity Fund	MDD
Absa Smart Alpha Equity Fund	MDD
Absa Global Core Equity Feeder Fund	MDD
Absa Prime Equity Fund	MDD
Absa Global Value Feeder Fund	MDD
Absa Africa Equity Feeder Fund	MDD
Absa Dividend Plus Index Fund	MDD
Absa Top 40 Index Fund	MDD
Absa Property Index Fund	MDD

Property

Fund	Minimum Disclosure Document
Absa Smart Alpha Property Fund	MDD
Absa Property Equity Fund	MDD
Absa Global Property Feeder Fund	MDD

Regional

Fund Minimum Disclosure Document

Absa Africa Equity Feeder Fund MDD

Offshore

Fund	Minimum Disclosure Documents
Absa US Dollar Income Fund	MDD
Absa Sterling Income Fund	MDD
Absa Global Property Feeder Fund	MDD
Absa Euro Income Fund	MDD
Absa Global Multi Asset Feeder Fund	MDD
Absa Global Core Equity Feeder Fund	MDD
Absa Global Value Feeder Fund	MDD

Download our investment application form

1. Download our investment application form.

2. Complete the form and gather the required documentation.

3. Email the documents to applications@absainvestments.co.za

Download application form

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