A unit trust is a collective investment scheme, which pools money from individual investors into investments such as bonds, fixed income instruments and equities. The investment is professionally managed by a portfolio manager.
Benefits from investing in unit trusts include:
- Low minimum investment amount: Depending on the portfolio you can invest a minimum initial lump sum amount of R5 000 with subsequent monthly payments of R500.
- Professional management: Your money is managed by experienced and trained professionals who have access to the latest information about markets and companies and are in a position to make informed investment decisions.
- Diversification: You can spread your investment risks across various markets, sectors and asset classes. Pooling your resources with other investors gives you the opportunity to invest in a multitude of markets and sectors. This type of diversification is usually not possible for individual investors with limited resources and entry level investments.
- Access to specialised markets and overseas opportunities: Investing in unit trusts gains you access to specialised and overseas markets.
- Liquidity: You can sell your investments at any time on any business day.
Your decision should be made based on your:
- Financial circumstances
- Risk tolerance
- Investment time horizon
- Investment objective
Different unit trusts invest in different asset classes, markets and sectors, depending on the investment objective and strategy of that particular portfolio. As a result, they have different levels of risks and returns. Therefore, your personal investment needs depend on many factors, the most significant one being your investment objective. It is important to consult your financial adviser to determine what these objectives are and for assistance with your investment strategy in an attempt to meet these objectives.
Like all investments, there are risks involved. Unit trusts are no exception and returns cannot be guaranteed. Prices can rise or fall depending on market conditions prevailing at any particular time.
Minimum investment amounts vary depending on the portfolio.
Unit trusts operate on a forward pricing basis. This means that MET Collective Investments unit prices are only calculated at the end of any business day after all investments, and the cost of all transaction activities, have been taken into account. To allow for correct valuations, please ensure that all instructions are sent to us before 13h00 on any business day. Confirmed prices for trades on a particular business day are available on the MET Collective Investments website.
Our latest prices may be requested from our Client Service Centre on 0860 111 899 or firstname.lastname@example.org.
Yes. Depending on the type of investment, distributions can be paid quarterly or twice a year. Income distributions can be reinvested into the same portfolio or paid into your bank account.
Note: income distributions of less than R20 will always be reinvested.
Most portfolio updates are available monthly and quarterly. Information will include portfolio returns and the portfolio's asset allocation.
You need to be at least 18 and older to invest with us. If you are below 18, we require a legal guardian/parent to sign on your behalf. Before investing in any unit trust, please ensure that you have read the minimum disclosure document for that portfolio and the relevant terms and conditions. You can request information from our Client Service Centre on 0860 111 899 or email@example.com.
Investing with MET Collective Investments is an easy three-step process.
- You will need to obtain the necessary application form, which is available here. You can also request this form from Client Service Centre by calling 0860 111 899 or sending an email to firstname.lastname@example.org.
- Email the completed and signed form with all the necessary documentation to email@example.com. Alternatively, you can fax it to us on +27 (0) 12 675 3889+27 (0) 12 675 3889.
The Financial Intelligence Centre Act of 2002 (FICA) requires all accountable institutions, ie financial institutions, to identify, verify and keep records of all clients with whom they establish a business relationship or conclude a single transaction. This is to combat money laundering activities and fraud in South Africa and to protect the interests of legitimate investors.
Financial services and credit providers that fail to comply with the requirements of FICA face strict penalties. According to this legislation, MET Collective Investments may not process transactions that are subject to FICA if these are not accompanied by the required documentation.
All payments can also be made into our bank account via:
- Electronic Portfolio Transfer (EFT) – direct deposit via Internet transfe,
- Direct deposit at the bank
- Bank guaranteed cheque
- Debit order
Note: if a debit order falls over a weekend or a public holiday, your account will be debited on the first working day thereafter.
Our banking details are:
- Bank name: Met Collective Investments Ltd-METCI Client Deposit Trust
- Bank: First National Bank
- Account number: 623 614 33784
- Bank code: 253-145
- Branch name: Global Transactional Banking
- Reference number: RU contract number or if you are a new investor and do not have a contract number yet, then your identity number.
You can change your preferred bank account details by filling in the appropriate change of personal details form, which is available here. You can request this form from Client Service Centre by calling 0860 111 899 or sending an email to firstname.lastname@example.org.
Completed and signed forms may be emailed to email@example.com or faxed to +12 (0) 12 675 3889.
Upon acceptance submission of your application, a confirmation letter will be posted to you informing you of the confirmed price and the number of units allotted to you. You will receive a confirmation letter for each instruction processed reflecting your unit allocation and relevant balance.
Transactions sent to us before 13h00 may be reversed as long as the request for cancellation is sent on the same day as the instruction. You cannot cancel online facilities instructions once submitted. Please call our Client Service Centre on 0860 111 899 or email firstname.lastname@example.org for assistance.
You will be able to see your unit trust holdings usually within a 48-hour turnaround time after requesting an instruction. This allows for prices and the number of units to be determined and processed by our system.
To find out the current value of your investment you can contact our Client Service Centre on 0860 111 899 or email email@example.com. Be sure to have your contract number beginning with ‘RU’ on hand. You can also access your portfolio online via our Online Facilities login on www.momentum.co.za.
You may repurchase/sell all or a portion of your units on any working day. The units will be valued as at the date they were sold. As the market fluctuates, so will the value of your units, therefore, your units may be worth more or less than what you originally paid.
To complete this instruction, fill in a repurchase form, which is available here. You can also request for this form to be sent to you by contacting our Client Service Centre on 0860 111 899 or by sending an email to firstname.lastname@example.org.
Completed and signed forms may be emailed to email@example.com or faxed to +12 (0) 12 675 3889. Alternatively, if you have an online account, you can request for this instruction to be processed via our online facilities.
Provided you have met the requirements stipulated by FICA, we adhere to a 48-hour turnaround time for all repurchases.
To do this:
Yes, via our online facilities. To register, fill in a client application to transact online form, which is available on www.momentum.co.za. You can also request for this form to be sent to you by contacting our Client Service Centre on 0860 111 899 or by sending an email to firstname.lastname@example.org.
The completed and signed form can be emailed to email@example.com. Alternatively, you can fax the form to +27 (0) 12 675 3889+27 (0) 12 675 3889. To buy online, just follow the steps below:
- Register to use our online facilities – to do this, fill in the client application to transact online form and send the completed, signed form to firstname.lastname@example.org. Alternatively, you can fax the form to +27 (0) 12 675 3889+27 (0) 12 675 3889
- Once registered you will receive a unique password
- Log on to online facilities using your contract number and unique password
- Click “Buy Online” and select the account you wish to transact with
- Fill in your “preferred banking” details
Select the portfolios you would like to buy and click “Confirm”.
In addition to the instructions mentioned above, you can also request statements or tax certificates, link accounts, update personal details and change your password when using these facilities.
For technical assistance or queries, kindly contact our Client Service Centre on 0860 111 899 or email email@example.com.
Our online facilities service is available 24 hours a day and our Client Service Centre (call centre) is available on weekdays between 08h00 until 16h30 on 0860 111 899. Instructions sent before 13h00 are processed on the same day. However, instructions sent after 13h00 will be processed on the next working day at the prices applicable on that day.
MET Collective Investments (RF) (Pty) Ltd (the manager) has various portfolios under its licence, which in turn have a number of fee classes. Fee structures vary per fee class. Management fees are made up of a fixed annual management fee and, if applicable, a performance fee. The performance fee levied is dependent on the portfolio return relative to the benchmark return or fee hurdle.
The maximum possible fee is the sum of the fixed annual management fee including value-added tax (VAT) and the maximum possible performance fee including VAT if applicable.
Please refer to the manager’s fee schedule.
This depends on the portfolio fee class. In most cases, the fee hurdle is the same as the relevant portfolio’s benchmark return. In other cases, the fee hurdle is above or below the relevant portfolio benchmark return. Please refer to the manager’s fee schedule.
Please refer to the manager’s fee schedule.
The portfolio returns used for performance fee calculations are net of all fees, ie fees are excluded.
- The portfolios perform 10% p.a. less than the benchmark
- The portfolios perform 5% p.a. less than the benchmark
- The portfolios perform in line with the benchmark
- The portfolios perform 5% p.a. more than the benchmark
- The portfolios perform 10% p.a. more than the benchmark
Please refer to the manager’s fee schedule.
Yes, there are portfolio fee classes with no performance fees. Retail investors may, however, only be able to access portfolio fee classes with performance fees when they invest via a LISP or directly with the manager.
Performance fees are accrued daily.
For some portfolio classes, performance fee accruals pertain to return periods where return calculations are based on portfolio and benchmark returns, which are lagged by 90 days. This is for portfolios with CPI benchmarks, where the release of the CPI values by Stats SA has historically taken place sometime after month end. Where fee accruals are lagged, certain unit holders may carry a lower proportion of the performance fee relative to the return enjoyed, while other investors may carry a higher proportion of the performance fee relative to the return enjoyed.
Yes. Rolling measurement periods of predominately two years and one year for a few portfolio fee classes are applied for performance fee calculations. Where rolling measurement periods are used, certain unit holders may carry a lower proportion of the performance fee relative to the return enjoyed, while other investors may carry a higher proportion of the performance fee relative to the return enjoyed. Please refer to the manager’s fee schedule.
The annual fixed management fee and the performance fee are accrued daily and paid to the manager monthly.
Fee accruals are based on rolling periods. Any underperformance for a rolling period is not carried forward to offset against positive performance in future rolling periods.
In some cases, portfolios may be invested in other portfolios, which charge implicit performance fees. Where underlying portfolios charge implicit performance fees (ie implicit in their unit prices), unit holders may carry these performance fees regardless of whether the top-tier portfolio or mandate has outperformed its own benchmark.