Meeting the needs of our clients, whilst maintaining a single investment philosophy, has always guided our choice of which unit trust funds to offer investors. With this in mind, and after receiving a number of enquiries over the last 12 months as to whether we manage a balanced unit trust fund, we are pleased to announce the launch of the Element Balanced Fund.
We have had success in managing institutional balanced mandates, having built up a track record since November 2003 for the Element Institutional Balanced Fund. Please click here to view the performance history.
The Element Balanced Fund is a prudential variable equity unit trust fund that will comply with the regulations that govern retirement funds.
The fund will therefore be suitable for:
- investors who have a moderate risk profile with a medium to long term investment time horizon;
- investors who wish to save for their retirement;
- retirement funds;
- investors who wish to delegate the asset allocation function to an experienced investment management team.
We will be able to vary the equity exposure of the fund in accordance with our view on the markets. The sector in which this fund will be categorised allows for the equity exposure to range from 0% to a maximum of 75%.
Not only will we include equities in this fund, but we will also include bonds, money market instruments, derivatives and property. We are also permitted to invest in offshore assets, to a maximum of 20%.
The annual management fee of the fund is 1.5%, excluding Vat. This is a flat fixed fee per month, as we do not impose any performance related fees on our unit trusts. As with all our other unit trust funds, we do not charge an initial fee. This means that your full capital amount is used to buy participatory interests (units) in the fund.
You are able to invest a lump sum investment from R5,000 or a debit order from R500 per month, or both. The process to invest in the Element Balanced Fund is the same as with our other Element Unit Trust Funds.
A reminder to existing investors in the Element Unit Trust Funds, we do not charge a switching fee if you wish to switch all or a portion of your investment in one fund, to another Element Unit Trust Fund.
For further information on the Element Balanced Fund, please feel free to contact unit trust client services on 021 426 1313, or at utclientservices@elementim.co.za.
