Old Mutual Unit Trusts

Unit Trusts (or collective investments) are an affordable and tax-efficient way to access stock markets. Simply put, a pool of investors’ money is used to invest in financial instruments such equities and bonds.

This pool is then divided into equal units where each unit contains the same proportion of assets in the fund. Investors then share in the fund's gains, losses, income and expenses.

The wide variety of unit trusts means that they are an ideal way to build up a well-diversified investment portfolio tailored to meet your specific needs, risk profile and investment requirements.

Old Mutual Unit Trusts has a wide selection of funds designed to meet a variety of investment needs.

Features & Benefits

• Flexibility: you can tailor a unit trust portfolio to suit your specific investment needs and time horizon.
• You can buy them direct or through a financial adviser
• Access to the stock exchange without needing knowledge or experience of investing in equities.
  Diversification: the ability to spread your investment across markets sectors and economies greatly reduces your investment risk.
• Cost efficiency.
• Access to Old Mutual Investment Group's international investment expertise.
• High liquidity: they are great for emergency savings as you are not tied in and can access their money at any time.
• Unit trusts are tax-efficient providing interest income tax exemptions, capital gains tax exemptions and tax-free dividends.
• Exciting capital growth opportunities over the medium- to long-term.
• Online transactional capability: you can buy, sell and switch you portfolio online.

Investment Term

There is no contractual term and you may sell your investment at any time. However it is recommended that you view your unit trust portfolio as a medium to long-term investment.

Investment Minimums

The investment minimums for unit trusts vary from fund to fund.
Lump sum: from N$2 000.00 – N$25 000.00
Scheduled: from N$ 500.00 – N$ 5 000.00

Fees & Charges

These values vary according to the amount invested and the category of fund in which you want to invest. Please consult the fund fact sheets for details.

• Initial charge: includes commission and is deducted prior to the purchase of units. If you invest a lump sum of N$5 000 or more your initial fee is waived
• Annual Service Fee: calculated on the market value of the fund's assets (excluding income and permissible deductions) and deducted from the portfolio monthly
• Other possible deductions: compulsory and bank charges, brokerage, marketable securities tax, other taxes and levies, custodian, trustee and audit fees

Tax

Unit trusts incur both Income and Capital Gains Tax but current tax exemptions apply. You are responsible for tax administration.

Income Tax

Interest income is taxed (exemptions apply) but your dividends are tax-exempt.

Capital Gains Tax

Each time you sell or switch a capital gains event is triggered. Capital gains incurred can be included in your annual CGT exemption.

Liquidity

Your unit trust investments are 100% liquid and you may access them at any time. If you action a sell the money will be deposited into your bank within two working days.

Ownership

You own the investment.

How to Invest

Contact an adviser.