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Collective Investments
Tuesday, August 1, 2000
Reclassification explained - 3

World-wide funds are unit trusts that invest in both South African and foreign markets. A minimum of 15% of the assets should be held in South African markets at all times and usually between 15% and 50% is invested locally. A minimum of 15% of the assets should be held offshore at all times.

Equity Funds

Equity – General funds - These are funds that invest in selected shares from equity markets across the globe including South Africa. These funds will invest across countries and industry sectors as well as across the range of large, mid and smaller cap shares. These funds do not subscribe to a particular theme or investment style. The funds offer medium to long-term growth as their primary investment objective. Benchmark: Morgan Stanley Capital World Index.

Equity - Other theme funds - These are funds that invest in companies that share a common theme or activity as defined in their respective mandates. These funds may invest in selected shares across all sectors.

Equity –Technology sector funds - These are funds that seek capital appreciation by investing in companies whose principal business operations involve, or are expected to benefit from, changes in scientific or technological advances. These funds may be more volatile than funds that are diversified across many industry sectors.

Asset Allocation Funds

Asset Allocation – Flexible funds - These are funds that invest in a flexible combination of investments in the equity, bond, money, or property markets  to maximise total returns over the long term. These funds are often aggressively managed with assets being shifted between the various markets to reflect changing economic and market conditions to maximise total returns.

Foreign funds

Foreign funds are unit trusts that invest at least 85% of their assets outside South Africa at all times.

Equity Funds

Equity – General funds - These are funds that invest in selected shares from equity markets across the globe excluding South Africa. General funds do not subscribe to a particular theme or investment style and will be invested across all market sectors. The funds offer medium to long-term growth as their primary investment objective. Benchmark: Morgan Stanley Capital World Index

Asset Allocation Funds

Asset Allocation – Flexible funds - These are funds that invest in a flexible combination of investments in international equity, bond, money, or property markets (excluding South Africa) to maximise total returns over the long term. These funds are often aggressively managed with assets being shifted between the various markets to reflect changing economic and market conditions to maximise total returns.

Fixed Interest Funds

Fixed Interest - Income funds – These are funds that invest in gilts, fixed deposits and other high income-earning securities in international markets, excluding South Africa.  To provide relative capital stability, the average maturity of the underlying assets is limited to a maximum of 2 years.

Regional funds

Regional funds are unit trusts that invest at least 85% of their assets in a single country or region, excluding South Africa, at all times.
Each country, or regional fund will be listed under its own item number, e.g. Japan Funds, European Funds, etc., with Equity, Asset Allocation and Fixed Interest Funds listed under each.  These funds invest in markets only in the stipulated country or region.
 

Copyright © Insurance Times and Investments® Vol:13.7 1st August, 2000
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