Global unit trusts offer a relatively straightforward way to access markets outside of South Africa, thereby diversifying a retirement fund portfolio.
There are different ways to go about it.
First things first
If you think your retirement fund could benefit from investing in a global unit trust, here’s what to do first:
1.Check the current offshore allocation
Remember that, according to Regulation 28, retirement funds cannot invest more than 45% of their assets offshore. So, make sure any new investment won’t breach this limit.
2.Review the investment strategy and mandate
Does a global unit trust investment align with the retirement fund’s investment objective, risk tolerance and target asset allocation?
If a global unit trust is a good fit for the retirement fund portfolio, the next step is making strategic decisions about which fund to invest in and how to invest. If you’ve appointed independent investment consultants, they can help you with these decisions.
Ways to invest
The different ways of investing in global unit trusts vary in complexity in terms of:
- The investment process and requirements
- Managing the investment once invested
The option that is most suitable will depend on your retirement fund, for example, the size of the fund.
Funded by
