The Difference Between a Unit Trust and a Bespoke Portfolio?

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The Difference Between a Unit Trust and a Bespoke Portfolio?

There are significant differences between pooled investments such as Unit Trusts UT's and Bespoke portfolio’s.

Bespoke investing involves a custom-made investment portfolio in which shares and other securities are held in the client’s name, and are bought and sold on behalf of the individual client by the asset manager. The asset manager will invest directly in the market and will avoid investing through middlemen.

Asset allocation and share selection within the portfolio can be customized to suit the client’s precise risk-return objectives. This may range from equity-only portfolios through to more conservative portfolios focussed on giving investors a high income yield.

 

Highlighted below are some of the differences between Bespoke Portfolio’s and UT’s.

Global trends show that as investors and advisers demand greater transparency, there is growing appetite for Bespoke investments as part of an overall investment solution. Given the wider choice, flexibility on fees, enhanced agility, and greater transparency, South African investors are increasingly following the global trend.

 

Who should opt for a bespoke portfolio?

Investors who want proper personal service and a tailored approach will benefit from this option.

 

Who should invest in unit trusts?

 

As mentioned above, Unit Trusts have made the investment markets and competent managers accessible to the general public.  If you do not have sufficient funds to invest in a bespoke portfolio, then Unit Trusts offer an excellent alternative.  Be sure to choose managers with proven track records, robust investment philosophies and low fee structure.

 

Conclusion

 

Unit Trust’s are typically big mass-market retail products. They tend to be cumbersome and expensive. In contrast, Bespoke investment’s are smaller boutique-style products. They are agile, user-friendly and cheaper.

To find out more about our product offerings or to have an one on one appointment set with a Portfolio manager feel free to contact me at;

 

SEE ATTACHED FOR TABLE ON BESPOKE VS UT

www.afrifocus.co.za