We are pleased to let you know that we have launched three global Rand-based unit trusts with Prescient Management Company. Now our low-cost global investment style is accessible to retail clients and we are in discussion to have them listed on the main LISP platforms.
We have three funds:
- Stylo Global Equity Prescient FOF
- Stylo Global Bond Prescient FOF
- Stylo Global Real Estate Prescient FOF
All three funds have an annual asset management fee of 0.5% ex VAT and we estimate the TER will be 0.7%-0.8%.
These are Rand unit trusts:
- Individuals: don’t need to utilise your offshore allowance
- South African Trusts and charities: allows for offshore exposure
So you invest in Rands and redeem in Rands but your investment is fully exposed to global investment markets.
Why Global? South Africa represents a tiny fraction of the world economy and of the world’s investments markets.
Why Low-Cost? Over the last decade, there has been a huge trend internationally in investment flows away from high-cost investment portfolios to simple, transparent and low-cost ones. The rationale is that research shows that the cost of a fund is a great predictor for its future success or failure; pick low-cost funds to maximise your chance of success.
In the Financial Times this month, this article shows the dominance of the low-cost market leader in the US, Vanguard fund manager. Vanguard attracted new flows of nearly $200bn in 2016 which was more than the total flows attracted from the next ten largest competitors. We love Vanguard and use many of its ETFs
Why Stylo? We have been managing global portfolios using low-cost investment strategies for the last two years. Our clients include the BCI BetaPlus Balanced Fund, the Prescient Umbrella Funds, charities and high-net-worth individuals. In February 2015, we launched our Global Equity, Global Bond and Global Real Estate portfolios within a Prescient Life policy. Over the full period from inception until end December 2016:
- Our Global Bond portfolio has outperformed all of the unit trust in the applicable ASISA fund category
- Our Global Real Estate portfolio has outperformed all of the unit trust in the applicable ASISA fund category
- Our Global Equity Portfolio has outperformed 62% of the unit trusts in the applicable ASISA fund category
Stylo Investments(Pty)Ltd ,Registration number :2012/141578/07 , is an authorised financial services provider (FSP44599). Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CIS’s are traded at the ruling price and can engage in scrip lending and borrowing. The collective investment scheme may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. A schedule of fees, charges and maximum commissions is available on request from the Manager. There is no guarantee in respect of capital or returns in a portfolio. CIS prices are calculated on a net asset basis, which is the total value of all the assets in the portfolio including any income accruals and less any permissible deductions (brokerage, STT, VAT, auditor’s fees, bank charges, trustee and custodian fees and the annual management fee) from the portfolio divided by the number of participatory interests (units) in issue. Forward pricing is used. The Fund’s Total Expense Ratio (TER) reflects the percentage of the average Net Asset Value (NAV) of the portfolio that was incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TER’s. During the phase in period TER’s do not include information gathered over a full year. The Manager retains full legal responsibility for any third-party-named portfolio.Performance has been calculated using net NAV to NAV numbers with income reinvested. The performance for each period shown reflects the return for investors who have been fully invested for that period. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestments and dividend withholding tax. Full performance calculations are available from the manager on request.Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002).For any additional information such as fund prices, brochures and application forms please go to Stylo Investments.