• Sharebar
Collective Investments
Tuesday, August 1, 2000
Words of wisdom

Responding to a growing demand for a single entry point into a broadly diversified vehicle for local and international investments, Sage Unit Trusts will shortly extend its fund family with the launch of its tenth unit trust and first fund of funds.

The Sage Collective Wisdom Fund of Funds is the latest in a long series of unit trust innovations from Sage. It follows the launch of the pace-setting Sage Internet Fund in June last year and coincides with the 35th anniversary of the unit trust industry that Sage pioneered in 1965.
The Sage Collective Wisdom Fund of Funds, which will open for investment from July 1, will make ‘one stop investing’ a reality by enabling investors to spread their exposure across a diverse range of leading asset managers and different fund types in a balanced and highly cost effective manner.
In recent years there has been a proliferation in the number and range of unit trusts offered to South African investors. In an environment of high market volatility and a relatively short-term performance focus, many investors and advisors are bewildered by the complexity of the investment world and are looking for a simple, secure, long term solution. The Collective Wisdom Fund of Funds satisfies this requirement.
The multifund investment concept is not new to Sage. In fact, Sage Life pioneered this concept with the launch of its MultiTrust policy linkage that enables policyholders to link their investments to a managed range of unit trusts.
Investors in the Collective Wisdom Fund can now benefit from the diverse talents and investment skills of all of Sage Unit Trust’s multi managers, providing exposure to leading asset management groups such as Investec Guinness Flight, Allan Gray, Greenwich, Brandes Investment Partners, WI PAM and ABSA.
The new fund features a competitive charge structure with a maximum initial charge, excluding VAT, of only 3% compared to 5% for the majority of other funds, and an annual service fee, excluding VAT, of 0,75% per annum compared to between 1% and 2% in many other funds.
The Sage Collective Wisdom Fund of Funds invests exclusively in Sage’s range of unit trusts with a minimum of 25% always held between Sage Gilt Fund and Sage Money Market Fund, and the balance invested across Sage’s local and offshore equity unit trusts - approximately half in Sage Fund (general equity fund) and the balance spread across the Group’s specialist funds i.e. Sage Financial Services Fund, Sage SciTech Fund, Sage Resources Fund, Sage Performance Fund, Sage Internet Fund and Sage Global Fund.  Any new equity funds launched by the Group will be included in the investment mix.
The fund will be rebalanced from time to time to achieve its spread across the Sage universe of funds. The fund’s investment objective is to beat the average performance of the domestic/asset allocation prudential fund sector, in which it will be classified, over a rolling one-year period.
The new fund will comply with the prudential guidelines for retirement products by holding a minimum of 25% of its assets in fixed interest investments through the Sage Gilt and Money Market funds. Because it meets these prudential guidelines it is available to pension and retirement fund clients who increasingly are being given individual choice in terms of their retirement portfolios. The fund’s structure also makes it attractive to companies who do not have a pension fund but want to structure a savings or investment plan for employees, invested across a wide range of investments.
Units in the Collective Wisdom Fund can be bought on a lump sum basis, subject to a minimum lump sum investment of R3 000 or a monthly minimum investment of R300. The launch price will be 500c per unit.
 

Copyright © Insurance Times and Investments® Vol:13.7 1st August, 2000
587 views, page last viewed on May 25, 2020