A number of companies have announced new foreign investment products to coincide with the relaxation in exchange controls from Tuesday. Here are some of the details:
Nedcor Bank will be offering a range of global funds managed by Schroder Investment Management as well as offshore banking products.
Schroder Investment Management is particularly strong in the Asia Pacific region, where almost half of its worldwide offices are located.
“Schroders was Nedcor Bank’s first choice as a partner to manage our offshore unit trusts,” Richard Laubscher, Nedcor chief executive, said.
“The secret of its success lies in an unfailingly reliable performance.”
Nedcor has set up an umbrella fund, the Nedcor Bank Global Portfolio, registered in the Isle of Man.
The fund contains six unit trusts, all carrying the Nedbank brand but to be managed by Schroder. These unit trusts are a Global Managed, Global Bond, Global Equity, US Equity, European Equity and Pacific Equity Fund.
The minimum investment amount is R30 000 which can be split between two funds, since the minimum investment in a subsidiary fund is R15 000. Subsequent investments of at least R10 000 can be made. The costs are five percent up front and a 1,5 percent annual management fee.
In the line of offshore banking products, Nedcor is also offering a high income cheque account, a demand deposit account and a term deposit account.
Old Mutual Group is launching a global investment package designed to take advantage of exchange control relaxation.
Under an umbrella “International Portfolio” investors can invest directly into a number of unit trusts. Switching between Old Mutual’s local and international portfolios will be at a reduced charge.
The range of underlying unit trusts you can choose from once you have put your money into the International Portfolio include lower risk US dollar and sterling money market funds, an International Equity Fund, and North American and European special interest or single market funds.
All these funds are managed by Old Mutual Asset Managers.
You pay no additional charges to invest in the underlying unit trusts once you have bought the International Portfolio.
The minimum investment is R35 000 which can be allocated to more than one underlying unit trust, though the minimum investment for a unit trust is $3 000 or £2 000 or the equivalent. Additional investments into the portfolio must be at least R10 000.
The costs for equity funds are 5,5 percent initial charge and 1,5 percent annual management fee and for money market funds no initial charge and a 0,5 percent annual fee.
Liberty Life’s lump sum international investment has the lowest charges in the industry, it says.
The group is charging investors only 2,5 percent to place their money in one or a mix of offshore portfolios monitored by Frank Russell Company.
The portfolios include eight funds – an Emerging Markets, US Equity, Global Bond, Japan Equity, Pacific Basin Equity, UK Equity, Continental Europe Equity and US Small Cap Equity Fund.
It will also be offering a money market fund either as a direct investment or as part of a 12-month phasing-in option to the eight funds.
Gavin Came, general manager: marketing at Liberty Life, says the company has chosen a multi-manager approach which means a number of specialist managers are used for different asset classes and regions.
Frank Russell researches the different products and managers to decide which managers will be selected for the programme.
Singer and Friedlander, a merchant bank based in the Isle of Man, this week joined forces with South African property and finance company Marriott Holdings Limited to form a new company, Marriott Singer Limited.
At the launch in Cape Town, Simon Pearce, managing director of Marriott Asset Management, said Marriott Singer Limited has introduced a new product – Marriott International Leaders Fund – aimed at diversifying your offshore investments.
It is a global equity fund, “a fund of funds – investing in the leading funds in the world”, Pearce said.
Through it you will be able to access funds managed by leading investment houses including Barclays, Fidelity, Credit Suisse, Lazard and Prolific.
Participation in the fund requires a minimum investment of US$1 000. The initial charge is 4,5 percent and the annual service fee is 1,5 percent.
The fees of the underlying funds you can access through Marriott International Leaders are expected to range from 1,2 percent to 1,6 percent which is extra to the initial charge and annual service fee.
From July 1, the new GuardBank Global Fund intends to offer you an internationally diverse medium to achieve steady growth of capital over the longer term.
The fund aims to attract investors who want to diversify investments and spread their risk.
Participation will require a minimum investment of R100 or a lump sum of R500. The maximum initial charge will be 5,46 percent.
The fund will be managed by UBS International Investment London Limited – a wholly owned subsidiary of Union Bank of Switzerland.
GuardBank – which is co-owned by the First National Bank and Liberty Life groups – has been in the business of unit trust management for 27 years and has managed nine funds totalling over R5 billion in assets.