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Sanlam Investments consists of the following authorised Financial Services Providers: Sanlam Investment Management (Pty) Ltd (“SIM”), Sanlam Multi Manager International (Pty) Ltd (“SMMI”), Satrix Managers (RF) (Pty) Ltd, Graviton Wealth Management (Pty) Ltd (“GWM”), Graviton Financial Partners (Pty) Ltd (“GFP”), Satrix Investments (Pty) Ltd, Amplify Investment Partners (Pty) Ltd (“Amplify”), Sanlam Africa Real Estate Advisor Pty Ltd (“SAREA”), Simeka Wealth (Pty) Ltd and Absa Alternative Asset Management (Pty) Ltd (“AAM”); and has the following approved Management Companies under the Collective Investment Schemes Control Act: Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) and Satrix Managers (RF) (Pty) Ltd (“Satrix”).
The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium- to long-term investments. Please note that past performances are not necessarily an accurate determination of future performances, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Managers, Sanlam Collective Investments (RF) Pty Ltd and Satrix Managers (RF) (Pty)Ltd, a registered and approved Managers in Collective Investment Schemes in Securities and Hedge Funds. Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained from the Manager, free of charge.
Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of the portfolio and the investor will differ depending on the initial fees applicable, the actual investment date, and the date of reinvestment of income as well as dividend withholding tax. Past performance is not indicative of future performance. Forward pricing is used. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio.
The performance of the portfolio depends on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Lumpsum investment performances are quoted. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result in a higher fee structure for our portfolio. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”).
The fund may from time to time invest in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates.
The portfolio management of all the portfolios is outsourced to financial services providers authorised in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments Scheme and Standard Chartered Bank is the appointed trustee of the Satrix Managers Scheme. Sanlam Collective Investments (RF) (Pty) Ltd retains full legal responsibility for the co-named portfolio.
FAQs
UITs and Taxation
What is the difference between a unit trust and a tax-free investment? ›
A tax-free unit trust works largely the same as a standard unit trust, except that you don't pay any tax on your interest or dividends earned, and capital gains are tax free too. This means you don't pay tax on the growth of your investment, which makes it a far more effective way to reach your goals.
Are unit investment trusts a good investment? ›
Both mutual funds and unit investment trusts are a great way to diversify your investment portfolio and reduce risk. The key difference is flexibility, for both the fund manager and the investor.
Where can I invest money tax-free? ›
If you have questions about any of these tax-efficient investments, consider working with a financial advisor.
- What Is Tax-Efficient and Tax-Free Investing?
- Municipal Bonds.
- Tax-Exempt Mutual Funds.
- Tax-Exempt Exchange-Traded Funds (ETFs)
- Indexed Universal Life (IUL) Insurance.
- Roth IRAs and Roth 401(k)s.
For tax purposes, investors are deemed to own a pro rata portion of each of the securities comprising the Trust portfolio. In-kind distribution of the pro rata share of Trust securities represented by a unit is not a taxable event. All taxability issues are taken into account at the investor level.
What are some of the drawbacks of investing in a unit trust? ›
Disadvantages of unit trusts
Costs – Every unit trust charges fees to cover the management costs. You have to pay these even if the fund performs poorly and you lose money. These can include an upfront charge when you buy into a unit trust, alongside annual fees.
What are the cons of unit investment trusts? ›
Unit investment trust risks
As prices can fluctuate based on market concerns about financial condition, the UIT issuer may not be able to pay interest or repay principal. UITs holding fewer securities can have more price volatility than more diversified trusts with a greater number of holdings.
Do you pay tax on unit trusts? ›
Unlike other types of investment (such as investment bonds), Unit Trust gains are usually taxed as 'capital gains' rather than 'income'.
What is the best unit trust to invest in? ›
The PSG Equity Fund and the PSG SA Equity Funds top the list as the best performing unit trusts over 3 years with annualised returns of over 15%. That's a very health Inflation Plus 10 return.
What are the pros and cons of unit investment trusts? ›
Investing in Unit Trusts offers several advantages, including professional management, diversification, accessibility, liquidity, and transparency. However, they also come with inherent risks, such as market, credit, interest rate, and inflation risks.
You can withdraw money from TFSAs as and when you like, depending on the type of account. If the investment has no maturity date, you can access your money without giving notice. If the investment is a one-year fixed deposit, it will be payable to you within 32 days of your request to withdraw.
What is the least taxed investment? ›
Treasury bonds and Series I bonds (savings bonds) are also tax-efficient because they're exempt from state and local income taxes. 89 But corporate bonds don't have any tax-free provisions, and, as such, are better off in tax-advantaged accounts.
How can high income earners reduce taxes? ›
For example, you might:
- Max out tax-advantaged savings. Contributing the maximum amount to your tax-deferred retirement plan or health savings account (HSA) can help reduce your taxable income for the year. ...
- Make charitable donations. ...
- Harvest investment losses.
An investment trust at its simplest is just another type of fund, like a unit trust or open-ended investment company (OEIC), in that it's a type of pooled investment. However, unlike unit trusts and OEICs, an investment trust is a quoted company and listed on the stock exchange.
What are the risks of a unit trust? ›
The risk occurs when investors take a loan/financing to finance their investment and thereafter unable to service the loan repayments. If units are used as collateral, an investor may be required to top-up the investor's existing instalment if the prices of units fall below a certain level due to market conditions.
How do unit trusts pay out? ›
In a unit trust, each unit holder has a defined interest in the trust assets and income. The trustee distributes the income pre-tax to the unit holders based on the number of units they hold. In a discretionary trust, the trustee has discretion over how income and capital gains are distributed to beneficiaries.
Is a unit trust tax-free? ›
These unit trusts are a great way to save for your goals, because any interest, dividends or capital gains will be free of tax.
Why use a unit investment trust? ›
UITs are professionally selected fixed portfolios that allow investors to know what securities are held within the portfolio. In contrast to actively-managed funds which continually buy and sell securities, thereby changing their investment mix, the securities held in a UIT generally remain fixed.
