Flexible unit trusts analysis
Make sure you like the rules
In the spectrum of multi-asset funds flexible funds are often considered the most risky. Yet, paradoxically, they provide the tools that allow the fund manager to run them in a highly risk-averse way. There are three main types of flexible funds, so the investor must be sure to be comfortable with the rules of each category. The most flexible are in the worldwide category, as they can not only go from zero to 100% equity but also move between foreign and SA assets. But many investors are uncomfortable giving so much freedom to the fund manager. A few funds in that category have won acclaim in the industry, such as Foord Flexible, Coronation Market Plus and Nedgroup Investments Bravata. But it is not nearly as fiercely contested as the SA flexible category. This still has generous wiggle room to invest offshore, as 25% of assets may be in foreign assets plus a further 5% in Africa, but there is the certainty that at least 70% of assets are local. The R60bn in domestic flexible funds ...
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