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Unit Trusts
#1
So most of us here are probably ETF fanboys because "justonelap", "tannie Nerina" and EasyEquities being so damn cheap.

I'll be honest, I own both ETFs and unit trusts although I've being neglecting the latter. So, the current trend seems to be people bashing them, saying they are too expensive blah blah blah and to a certain degree they are right. Well actually they are very right. Unit trusts have the benefit of you not being the "active manager" and hence probably a lot less stressful to invest in :p

Anyway, whom of you guys own unit trusts, which ones do you own and how have they performed for you?

Myself, I make use of Stanlib and I'm invested in they're Multi-Manager All Star Fund of Funds..erm.. fund. I prefer the multi managers - less risk of one guy making a mistake.

Had a look and I reckon I'll go talk to my financial advisor and see how I can restructure and avoid/fix some of the duplication I have between my ETFs and unit trusts. I reckon something like their Absolute Income or Aggressive Income fund is also a much better proposition for keeping and building up an emergency fund than say a 32-day notice account (with some more risk but also more growth).

#2
Hey Hamster, I own some unit trusts and ETFs. My RA is with Sygnia Skeleton Balanced 70 fund and my TFSA is in the Sygnia Worldwide Flexible fund. I also have a smart beta unit trust with Fairtree which combines 4 factors in one fund: Value, Momentum, Volatility and Quality. Its an index tracking passive fund, the active component lies in the selection between these 4 factors. Also have the Coreshares DIVTRX and LVLTRX in my Easy Equities TFSA account which I will transfer to my Sygnia TFSA. Currently the Sygnia funds and Fairtree Smart Beta fund does everything I need. I tried ETFs but it does not work for me. For one My Sygnia flexible fund can change the allocations to the different asset classes and international equities in an unconstrained manner. With ETFs I don't have this flexibility without triggering capital gains tax if I want for instance increase my offshore weighting. The same for the Smart beta fund. This is all done with low fees. For me personally I will pass on ETFs.

#3
Glad to see I'm not the only one thinking this way. I've never really looked at the Sygnia UTs but I'll change that over the weekend

Sent from my LG-V490 using Tapatalk

#4
I already have a unit trust investment in the Coronation Top 20 fund. Does it make any sense to also invest in the Satrix ETF Top 40 fund?

Or would this be considered essentially buying two of the same things, if I can put it that way?

Also, is this website relatively new since I have been looking for something like this for ages!

#5
It is relatively new.

Buying a top 40 over and above the top 20 is a waste. Lots of duplication and, except for the equally weighted one, most top 40s have the top 4-5 companies making up most of the fund.

#6
that does makes sense, thanks @Hamster. I guess in that case I will just keep adding to the Top 20 ( http://www.coronation.com/za/personal/top-20).

I am not particularly fond of the management fees however I would not be able to maintain those returns nor invest the time to go about such an endevour myself. That is why I like the idea of a unit trust, picking the right one on the other hand.

#7
The woman from Sygnia write an article a while back explaining the fees if unit trusts vs. ETFs.

ETF managers are good at selling ETF as cheap but there are other costs to take into account: STRATE, VAT, trading and brokerage costs, investor insurance. These can actually add up to a substantial amount. You also have no guarantee if liquidity even if they have a market maker. When you need to cash out your ETF it could take days for the transaction to complete (my one ETF I cashed out took 3 days, multiple trades and an email to CoreShares).

So unit trusts may have management fees but they are a lot less hassle. And if you do your homework and the unit trust us not subject to initial fees or performance fees they may actually be cheaper.

#8
Guess I need to look into this as well, I have always been told get a unit trust, but thought screw that I can do it myself. I guess for the sake of diversification it can't hurt to get a Unit Trust as well.
Register on Platinum Wealth (My referral link)

#9
Nice article about factors on Moneyweb: http://www.moneyweb.co.za/investing/a-di...-equities/

This is basically what the Fairtree Smart beta fund is all about. The fund manager switches between the factors.

#10
Have you guys heard of Afrifocus Securities?

Our Portfolios are a combination of unit trust and bespoke style investment vehicles. So all the portfolios look alike but they are managed as personal bespoke portfolios. The combination of the two styles provide the safety and convenience of UT with the flexibility and performance of a bespoke portfolio. Management fee of 1%

http://www.afrifocus.co.za there's options of balanced, income, active managment, 100% equities, moey market and TFSA accounts.

Check it out, I would like to hear your comments with regards to fees, structure, performance vs the UT you guys are in.
(if you cant find the info you are looking for ill can answer them for as the website is being upgraded)

#11
The only reason I know about Afrifocus us because they are one of our white label clients

#12
(09-26-2016, 02:44 PM)Hamster Wrote: The only reason I know about Afrifocus us because they are one of our white label clients

what product would that be?

#13
(09-26-2016, 03:29 PM)rayyaanS Wrote:
(09-26-2016, 02:44 PM)Hamster Wrote: The only reason I know about Afrifocus us because they are one of our white label clients

what product would that be?
Share trading platform. I've seen the name in the database, never looked at the site myself.

#14
Is this also a Unit Trust: https://d3adx8liabxypl.cloudfront.net/as...d.pdf?v=52

I use the 22seven app and always wondered about the 3 funds you can buy through them:

https://www.22seven.com/invest-your-money scroll down a little, the particular fund I am looking at is "Old Mutual Core
Diversified Fund"

#15
Oh for a moment i thought you knew something i didnt lol. its a good share trading platform.






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