High equity unit trusts
Fund reviews: analysis of lesser-known funds
Stephen Cranston reviews Fairtree Balanced Prescient Fund, Kagiso Balanced Fund, Obsidian SCI Balanced Fund, Ashburton Balanced Fund, Nedgroup Investments Managed Fund
The high-equity unit trust sector is now the bedrock of the unit trust industry. It has assets of R454bn, about a quarter of the industry total, including money market funds, and net inflows of R37bn over the past 12 months. It is no surprise that this sector is so popular. Investors saving up for retirement who do not want to construct their own pantomime horse of a fund can treat these as a one-stop fund. It is far easier than trying to invest in separate equity, balanced, bond, property and global funds. And at all times investors need to keep their portfolios within the confines of Regulation 28 of the Pension Funds Act, with prescribed limits on asset exposure. There are more than 200 funds in this sector, yet these flows are far from evenly distributed. Most financial advisers confine their support to old favourites such as the Allan Gray, Coronation, Foord, Investec and Prudential funds. But there is a much wider universe to explore. This month we look at some of the lesser-k...