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4.6 Summary of Packaged Products

The table below summaries the features of a traditional collective investment portfolio and packaged products. Traditional collective investment scheme Fund of fund Linked product Wrap fund Multi-manager fund Description & underlying investment A collective investment portfolio that invests in local or offshore shares, bonds and cash A collective investment portfolio that invests in a range […]

4.5 Multi-Manager Funds

Multi-manager is a method of managing a fund’s assets. The multi-manager approach bundles asset managers together in different combinations to provide investors with choices designed to meet various risk profiles. A multi-management collective investment portfolio invests in an actively managed blend of tailor-made specialist portfolios of equities and fixed interest instruments, by combining the investment […]

4.4 Wrap Funds

A wrap fund is a portfolio consisting of a number of underlying investment tools wrapped into a single product. Wrap funds are not classified as funds of funds as the wrap fund itself is not a collective investment portfolio but is in fact a portfolio of separate collective investment portfolios and money market accounts/instruments. The […]

4.3 Linked Products

Linked investment services providers (LISPS) offers a range of investments linked to collective investment portfolios and other underlying investments. LISPs are not product suppliers as such but provide administrative systems to gain access to various suppliers of retail investment products including fund of funds, multi-manager funds and wrap funds.  LISPs can link collective investment portfolio […]

4.2 Fund of Funds

A fund of funds is a collective investment portfolio fund that invests in a range of other collective investment portfolios. These could be funds within a collective investment portfolio management company’s own range (internal fund of fund) or a selection of funds managed by various collective investment portfolio management companies (external fund of fund). A […]

4.1 Introduction

Many investors invest in more than one fund in order to achieve the diversity required to spread investment risk. To meet this need for diversification, packaged products have been designed, which allow investors to invest in a single product consisting of a number of collective investment portfolios or investment portfolios bundled together to suit particular […]

3.4 Fact Sheets

Source: www.allangray.co.za/latest-insights/personal-investing/how-to-read-a-factsheet/ The number of options when choosing a collective investment scheme can be overwhelming and is one of the most common barriers to investing. Factsheets provide a useful and comparable summary. Legislation requires that all collective investment schemes  produce a minimum disclosure document (MDD), which in many cases is called a factsheet. This document details how […]

3.3 Differences in Fees for Different Funds

A. Equity funds versus fixed interest funds Generally, investment charges for equity collective investment portfolio funds are higher than the fees of fixed interest funds such as money market funds and bond funds, because investing in equity markets is riskier and more time consuming from a research perspective, than investing in fixed interest markets.   Although […]

3.2 Fees

Collective investment portfolio fees and charges were deregulated on 1 June 1998. Prior to deregulation, collective investment portfolios were not legally allowed to charge more than 1% as an annual management fee and 5% for initial charges. After deregulation, the ceiling on annual fees was removed, meaning that funds launched after deregulation do not have […]

3.1 Introduction FCIS

Unlike share prices which fluctuate throughout the day, collective investment portfolios have a fixed price for the day. With forward pricing, the price is established each evening, using closing prices of investments for the day, and then applied to all the transactions that took place during the same day. This means that all sales, repurchases […]