IMPORTANT FACTS RELATING TO THE PORTFOLIO STRUCTURE
These portfolios will be model portfolios (otherwise known in the industry as wrap funds).
Our structure is able to access all the top funds and fund managers in South Africa. SMM is also able to access investment portfolio solutions that are not readily available on standard retail platforms. Furthermore, once you have signed SMM's investment mandate, SMM will have the authority to manage your investment on a discretionary basis on your behalf subject to your portfolios predetermined investment mandate and the decisions made by the investment committee.
By investing in unit trust funds, other than in extraordinary circumstances, you are able to switch out of your investment portfolio within 2 - 5 days.
As is the case with your current investment, your investment may however still be subject to certain regulatory liquidity constraints.
Capital Gains Tax
As you may be aware Capital Gains Tax (CGT) is incurred whenever we change your portfolio, unless you are invested in the portfolio through a pre- or post-retirement fund product. It is important to therefore note that CGT events will be incurred by certain investors whenever Analytics Consulting makes changes to their investment portfolios. We do however believe that it is unwise to delay making necessary changes to your portfolio merely to avoid CGT accruals. On an annual basis, the linked investment service providers will notify all relevant investors of the CGT that has been incurred on their portfolios.
For a complete breakdown on all the fees, please refer to the client mandate and the fund factsheet.
If you have any further queries relating to the total costs applicable to your portfolio, please do not hesitate to contact your financial advisor.
In consideration for the investment management services provided by the SMM to the Investor in respect of the model portfolios, SMM will charge a management fee of 0.40% (plus VAT) per annum of the market value of the investments. One twelfth of the management fees shall accrue, be calculated and be payable to the Discretionary FSP monthly. SMM will earn 0.20% (plus VAT) of the above fee and 0.20% (plus VAT) will be payable to Analytics Consulting.
At any point in time you will be able to determine the performance of your portfolio and the actual constitution of your investment portfolio.
Switching between funds and asset classes
In future, SMM will be mandated to manage your investment on a proactive basis, subject to your specific investment mandate and the decisions of the investment committee without you having to sign switch forms prior to necessary changes being implemented.