So by now we know that WealthPro is the perfect platform to identify different goals in our lives. If I start an investment where will my money be going? All investments that you created through WealthPro are administered on the Allan Gray Linked Investment Platform. The team at WealthPro will help you and on your behalf choose the correct underlining portfolios of unit trusts to invest in (based on your goal).
Unit Trust portfolios (also known as collective investment schemes) account for more than 40% of all investments in South African currently representing more than R390 billion. The biggest advantage of unit trust portfolios is the flexibility. At any time you can increase or decrease your contributions. You can make portfolio switches, thereby increasing or decreasing the risk profile of your investments. And you can withdraw at any time (unless invested in retirement funds).
Although it may sound complicated at first once you start and start to monitor and review the investment the complexities disappear. The team at WealthPro is always on hand to assist with any specific question you may have. Your money is very well protected and regulated by different authority bodies like the Financial Services Board, the Reserve Bank and even SARS keeps an eye on things.
The bulk of the more than R390 billion (in discretionary funds – thus not including Pension/Provident Funds and Retirement Annuities, if included the amount is about R1 trillion) are managed by big asset managers in South Africa like Allan Gray (R203 Billion), Coronation (R233 Billion), Investec (R120 Billion) and Nedgroup (R111 Billion).
There are more than 1000 unit trusts registered in South Africa. This makes choosing the correct one or combination of funds very difficult. This is where a very astute financial advisor can assist in building a portfolio consisting of more than one unit trust to create a portfolio that will deliver on the results you require.
If you are currently saving money via any of the following methods like leaving money in your bank account (cheque or savings), fixed deposits or even stokvels you are only using one of the asset classes available to you, namely investing in cash. The other three are bonds, property and equity.
Bonds are long term debt agreements – it’s like giving someone a loan but with a fixed repayment structure and you don’t lend to your brother but rather to big corporations and governments. We all know property but importantly this includes all sectors of property like office space, industrial, retail and even storage.
Equity is when you own shares in a company – any company. In South Africa the big companies are, for example, SABMiller, Naspers, Richemont, MTN, Sasol, Standard Bank and Old Mutual. You can also invest in any of the assets classes mentioned above (Cash, Bonds, Property and Equity) outside South Africa – like investing in US Dollars, German Bonds, Office Space in London and even own some Google shares.
WealthPro is here to simplify your life and thus we will make the decision and advise what your ideal asset allocation (the combination of assets) should look like. All you have to do is to identify the goal and the details around the goal. We will choose which portfolios and what asset allocation you should use. It is as easy as that. Give it a go – you have nothing to lose and everything to gain. At worst you will learn something new and develop your skills.