Why Old Mutual Unit Trusts
This investment offers investors long-term capital growth and invests across Equities, Bonds and Cash offering long term value and ideal for those wanting moderate to high, long-term capital growth.
Take a look at some of the frequently asked questions below. If you prefer to talk to someone, give us a call on +268 2 411 7800.
- Unit trusts are a cost-effective way to access a share portfolio.
- You get full-time professional management of your money.
- Unit trusts are flexible and transparent. Investors are not tied in and can access their money at any time.
- Unit trusts are one of the most tax-efficient ways of investing (providing tax exemptions on interest income, capital gains tax exemptions).
- Unit trusts continue to offer exciting capital growth opportunities over the medium to long term.
- Call our Service Centre on 24117800 or whatsapp number 7634 0055, or visit your nearest Old Mutual branch.
- If you have not done so already, register on our secure site to access and manage your portfolio online, 24/7. Simply go to our registration page and follow the easy steps.
- You can download and complete the relevant form and scan and email it to the email address provided on the form.
- Alternatively, please contact your Old Mutual financial adviser or independent broker.
Unit trusts offer an easy, convenient way to invest. Simply put, a pool of investors’ money is used to invest in financial instruments such as equities (shares) and bonds.
This pool is then divided into equal units where each unit contains the same proportion of assets in the fund. Investors then share in the fund's gains, losses, income and expenses.
The wide variety of unit trusts means that they are an ideal way to build up a well-diversified investment portfolio tailored to meet your specific needs, risk profile and investment requirements.
There are various retirement products available from Old Mutual, including the Old Mutual Retirement Annuity, Preservation Funds and Linked Retirement Income. These different products have rules, requirements and tax treatment that are specific to each product.
Our unit trust portfolios can be bought within these “product wrappers”. Unit trusts are an affordable and a simple way to save (and preserve) for your retirement or from which to draw an income in retirement as they offer you the choice and flexibility to invest in portfolios that are suited to your life stage. An example of this is to invest into portfolios with high equity content when you are young and volatility is less important than significantly outperforming inflation over the long term, and start to moderate the equity exposure by switching to more stable funds as you near retirement and can afford to deal with a significant market correction.
Unit trusts portfolios bought within a retirement product wrapper incur no extra costs as would be charged in a standard unit trust portfolio, in other words, there is no cost that a client pays for the “product wrapper”.
Depending on your personal situation, there generally are significant tax benefits to investing or preserving money for your retirement in one of the above-mentioned vehicles. These include that money invested into retirement annuities (up to certain limits) are tax-efficient as the amount invested is deducted from your income before tax due on your income is calculated. Capital growth on these investments and dividend and interest earnings are also tax free within these retirement products.
There are four easy options for you to choose from:
The Financial Intelligence Centre Act of 2002 (FICA) requires all accountable institutions – i.e. financial institutions – to identify, verify and keep records of all clients with whom they establish a business relationship or conclude a single transaction. This is to combat money laundering activities and fraud in South Africa, and to protect the interests of legitimate investors.
Financial services and credit providers who fail to comply with the requirements of FICA face strict penalties. According to this legislation, Old Mutual Unit Trusts may not process transactions that are subject to FICA if these are not accompanied by the required documentation.
For details please download the supporting document requirements.
Yes. You can open a unit trust investment in a minor's name for a Standard Unit Trust portfolio or a Tax Free Investment portfolio. As the parent or legal guardian, you will be required to sign all documentation until the minor reaches the age of 18 years. The unit trusts are legally the property of the minor. An alternative is you may open the unit trust investment in your own name and manage it on behalf of the child. Investors who choose to do this can reference the ‘name’ of the unit trust account with the child’s name by using the account descriptor facility available.