What is a Unit Trust?

Unit trusts are portfolios of assets such as equities, bonds, cash and listed property, made up of equal shares (or units) that investors can buy. Unit trusts offer investors the opportunity to achieve inflation-beating returns, and diversify their investment at low costs.

What is a Living Annuity?

A living annuity allows you to reinvest your retirement savings to provide you with a retirement income, while affording you further investment growth. It also offers you the flexibility of changing your retirement income annually, and the control to switch your investment strategy if you wish. Key benefits include being able to choose your desired annual income, how you invest, and the ability to nominate your beneficiaries in the event of your passing.

Who controls the affairs of a retirement fund?

Every fund must appoint a board of management to run the affairs of the fund. This is called the board of trustees. Each retirement fund must have at least four trustees.In terms of Section 7A of the Pension Funds Act, members may elect at least 50% of the board of trustees. Umbrella funds may apply for exemption from appointing member-elected trustees.In addition, the fund must appoint a Principal Officer, to deal with the day-to-day running of the fund.

What is the cost of the 10X Unit Trust?

10X charge a management fee for 0.50% pa (excl.VAT) for unit trust investments below R10m, and 0.3% pa (excl.VAT) for investments above R10m.To view the Total Expense Ratio (TER) and Total Investment Cost (TIC) for the various 10X Unit Trusts, please refer to the Minimum Disclosure Documents, to be found on the 10X website and the Effective Annual Cost (EAC) to be found on the 10X portal. 10X do not charge an initial fee, an administration fee or a termination of unit trust exit fee. On your instruction, we will...

What is a unit trust?

A unit trust refers to an investment portfolio that is managed as a Collective Investment Scheme and divided into equal parts or ‘units’. Investors buy units of the portfolio, with each unit representing an equal share in all the assets underlying the portfolio. The unit price reflects the current market value of the underlying assets, divided by the number of units in issue.

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