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Unit Trust FAQs

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What are the monthly and annual contribution limits for Foord tax free investment accounts?

Foord tax free investment accounts are subject to a maximum annual contribution limit of R30 000 and a minimum of R10 000.  The maximum monthly debit order of R2 500 will apply to Foord tax free investment accounts.  The minimum debit order amount for all Foord Unit Trust investments is R1000 per month.

What happens if Foord is unable to contact me?

It is important to inform Foord Unit Trusts when your address, telephone numbers or email address change so that we can keep in contact with you. If Foord is unable to reach you using the contact details on record, or if a distribution or redemption payment is rejected by your bank, Foord Unit Trusts will consider your units to be unclaimed.  Foord Unit Trusts will attempt to re-establish contact with you, and we may make use of an external tracing company. Any reasonable costs incurred by Foord Unit Trusts may be recovered from your unit trust investment. Unclaimed units will remain invested in the Foord Unit Trust funds until they are either claimed or transferred to another unit trust portfolio (for which the Registrar would need to provide specific consent). 

What happens if my account reduces to zero?

Foord Unit Trusts will keep your unit trust account open. Your account will remain dormant until such time as you access it again by buying more units. For security reasons, Foord Unit Trusts may ask you to provide confirmation of your contact and bank account details. You will retain the same investor number.

Can I open unit trust accounts for my children or other persons?

Yes, you are able to open a unit trust account in the name of another investor. As the investor, you are required to sign all instruction forms. If the account is opened in the name of a minor, a parent or guardian is required to sign all instructions until the child reaches the age of 18.

What will Foord's services cost?

FUT does not charge initial fees, and no broker/financial adviser fees deducted from your investment account. Fees on the Foord Balanced Fund, Foord Equity Fund, Foord Flexible Fund of Funds and Foord Conservative Fund depend on performance:

  • Where a fund matches the performance of its benchmark, then the Standard Charge Rate is applied.
  • Where a fund underperforms its benchmark, the Standard Charge Rate is reduced proportionately (quantum of underperformance multiplied by sharing ratio) to a minimum fee (0.50% per annum including VAT).
  • Where a fund outperforms its benchmark, Standard Charge Rate is increased proportionately (quantum of outperformance multiplied by sharing ratio). The fee is uncapped.

The criteria for the calculation of the service charges levied on each of the Foord unit trusts are detailed in the following table:

Fund

Initial Fees

Charge Rate Minimum

Standard Charge Rate for Equalling Benchmark

Performance Sharing
Ratio (in under-performance and outperformance)

Foord Conservative Fund

0.0%

0.0%

1.14% p.a. (1.0% plus VAT)

10%

Foord Balanced Fund

0.0%

0.57% p.a. (0.5% plus VAT)

1.14% p.a. (1.0% plus VAT)

10%

Foord Flexible Fund of Funds

0.0%

0.57% p.a. (0.5% plus VAT)

1.14% p.a. (1.0% plus VAT)

10%

Foord Equity Fund

0.0%

0.57% p.a. (0.5% plus VAT)

1.14% p.a. (1.0% plus VAT)

15%

 

 

 

 

 

The fee rates for the Foord International Feeder Fund and Foord Global Equity Feeder Fund are as follows:

Initial Fees

Switching Fees

Exit Fees

Standard Charge Rate

0.0%

0.0%

0.0%

0.4% (0.35% plus VAT)

Why should I invest with FUT?

We offer three compelling reasons:

  1. FAM has been one of South Africa’s top performing fund managers since the early 1980’s.
  2. By investing directly with FUT, investors avoid incurring costs that erode wealth.
  3. Fund choice is simple as we only offer six highly focused, performance-oriented funds: the Foord Conservative Fund, Foord Balanced Fund, Foord Equity Fund, the Foord International Feeder Fund, the Foord Flexible Fund of Funds and the Foord Global Equity Feeder Fund.

How do I pay for my unit trusts investment?

You can pay for your unit trust purchases via a lump sum or a recurring debit order. Please note that when making a payment, it is important to use your name as a reference. You will receive a transaction advice statement for each deposit you make.

1. Lump sum investments

Electronic funds transfer:

You can use internet banking or any bank’s ATM machine to transfer money. This may require instructing your bank to ‘load’ the relevant Foord Unit Trust’s bank account as an account into which you can make payments. Once these details have been loaded, electronic fund transfers can be the most convenient way to make payments.

Direct deposit:

This requires going to your bank or First National Bank and filling out a deposit slip. You will then need to fax a copy of the deposit slip to Foord Unit Trusts.

2. Recurring debit order

You can complete Section C of the Investment Application Form authorising Foord Unit Trusts to deduct a regular investment amount from your bank account.

Which Foord funds offer tax free investment accounts?

Tax free investment accounts are available in the Foord Balanced Fund, the Foord Equity Fund and the Foord Flexible Fund of Funds.

What is a redemption?

A redemption (also called a "repurchase") is when you sell some or all of the units that you own in a unit trust portfolio, and the proceeds are paid into your nominated bank account.

Will my personal information remain confidential?

Confidentiality is assured, and information will not be passed on or sold to third parties. Investor access to statements via the website is password controlled.

Is Foord able to accommodate my retirement fund assets?

Foord focuses exclusively on investment management. If you have a lump sum from your withdrawal or retirement from a retirement fund, then you may invest this directly with Foord Unit Trusts (or in an individual portfolio if the amount exceeds R20m).

If you wish to invest the balance of your retirement savings within a preservation fund, retirement annuity or similar product, or if you wish to draw an income from a living annuity, you should first contact one of the LISPs listed below and then select a Foord Unit Trust fund as the underlying investment.

Equinox.co.za: tel 0860 378 466

Momentum Wealth: tel 0800 113 634

Glacier by Sanlam: tel 021 917 9000

Fairbairn Capital (Old Mutual): tel 0860 300 000

Investments Solutions: tel 0860 001 750

Allan Gray Investor Services: tel 0860 000 654

Investec: tel 0860 500 100

Stanlib Wealth Management: tel 0860 123 003

Absa Investment Management Services: tel 011 259 0111

How long will it take to execute my transaction?

When investing in unit trusts:
If we receive all of the relevant documents and verify your deposit before 14h00 on a business day, your investment will be processed at 15h00 on the same day. If all relevant documentation is received and your deposit is verified after 14h00 on a business day, your investment will be processed at 15h00 on the next business day.

When redeeming unit trusts:
Redemption instructions will be processed immediately provided they are received before the transaction cut-off time of 14h00 and the transaction price will be determined as at 15h00 on that business day. The proceeds should reflect in your bank account within two working days, depending on the efficiency of the relevant banks.

Can I visit Foord's offices?

Yes, with pleasure.
We welcome the opportunity to talk to you about our services and the investment options available to you. Please click Contact Us for our contact and address details.

How do I open a unit trust account with Foord?

You can open a unit trust account with Foord by completing and submitting an application form accompanied by the appropriate supporting documentation. Online and pdf application forms are available from the Transaction Forms page on this website.

When is the best time for me to invest in Foord Unit Trusts?

Unit trusts are medium- to long-term investments and investors should understand that portfolio managers do not manage funds on a short-term basis. The Foord Unit Trust Funds, are managed to generate consistently good returns over a period of three to five years. A common mistake made by investors is switching between funds based on short term performance – this often has the effect of destroying wealth, and should be avoided. A good strategy for many investors is to invest regularly, which reduces the potential negative effects of bad timing.

What is a linked investment service provider (LISP)?

Linked Investment Service Providers (LISPs), are wholesalers of unit trusts and other investment products. They buy unit trusts in bulk from the unit trust management companies such as FUT and then sell them on to retail investors (usually through financial advisors or brokers), often inside another product ‘wrapper’ that may have its own fees and rules.

Can I view my unit trust statement online?

Yes, all existing Foord unit trust investors can access their online statements at www.foord.co.za by accessing the INVESTOR LOGIN link at the top of the page.  First time users are required to complete a simple registration process.

Can I transact online?

No, for security reasons Foord Unit Trusts does not permit online transactions at present. If you wish to purchase additional units or redeem your units, please download the relevant instruction form or complete the forms online, print, sign and submit the forms to Foord Unit Trusts.

Can I request that the proceeds of a redemption be paid to a third party?

No, you cannot. For security reasons, the proceeds of any unit trust redemption (repurchase) will only be paid to the bank account set out in your Investment Application Form (which account you proved was opened in your own name).

What is forward pricing?

Forward pricing, which is used throughout the unit trust industry, bases unit transactions on a Net Asset Value (NAV) price calculated at the next valuation point. Therefore, your purchase or repurchase instructions are processed at prices that are not yet determined when your instructions are received. The Foord Unit Trusts funds are valued daily at 15h00 and carry an instruction cut-off time of 14h00. This means that if you send your instructions through before 14h00 on any business day, they will be processed at the price that is determined at 15h00 that afternoon. Instructions received after 14h00 will be processed at the forward price determined at 15h00 the following business day.

What are unit trust distributions?

South African tax legislation requires that all domestically registered collective investment schemes distribute their net income (interest and dividends, less expenses) periodically. Distributions are usually made annually, semi-annually or quarterly. Foord Unit Trusts distributes semi-annually – at the end of February and August each year. Distributions are paid to unit holders in proportion to their unit holdings. Distributions can either be paid into your bank account or can be reinvested into the fund to take advantage of compounding returns.

What are the benefits of investing in unit trusts?

  1. Diversification: even a small investment (R20 000 lump sum or R1 000 per month) into a unit trust has all the benefits of diversification as the unit trust portfolio is invested across several assets.
  2. They give you access to the experts: Foord’s team has managed funds successfully through good and bad times over the last 30 years.
  3. Your investment is easily accessed at no cost: if you choose to redeem your investment, the funds will be in your bank account within two business days typically. Foord Unit Trusts charges no entry fees and no exit fees.
  4. Unit trusts come with safeguards: unit trusts are regulated by the Collective Investment Schemes Control Act, and each fund must appoint a trustee who looks after all the cash, shares or bonds that your fund owns. Also, each fund has a strict mandate that sets out the objectives of the fund and the risk that may be tolerated.
  5. You always know the value of your units: Most daily newspapers publish the prices of unit trust funds, and you can therefore always confirm the value of your investment by multiplying the number of units you own by the price published in the newspaper. Errors and omissions can occur from time to time and we therefore recommend confirming your investment value with Foord Unit Trusts. This can be done online or by telephoning our help desk on 021 531 5085.

Which LISPs offer Foord Unit Trusts in their suite of investments?

The following LISPs (Linked Investment Product Companies) offer preservation funds, living annuities and various other life insurance and retirement fund products that may be invested into Foord Unit Trusts:

Equinox.co.za: tel 0860 378 466

Momentum Wealth: tel 0800 113 634

Glacier by Sanlam: tel 021 917 9000

Fairbairn Capital (Old Mutual): tel 0860 300 000

Investments Solutions: tel 0860 001 750

Allan Gray Investor Services: tel 0860 000 654

Investec: tel 0860 500 100

Stanlib Wealth Management: tel 0860 123 003

Absa Investment Management Services: tel 011 259 0111

Who should invest in unit trusts?

Unit trusts are ideally suited to people who don't have the time or skills required to select individual shares themselves, or who have limited capital but want the benefits of professional fund management and diversification.

Different unit trusts suit different investors' financial needs and have different levels of risk. You should invest in a fund that suits your needs and particular circumstances.

What notice period is involved when instructing a debit order investment or changing debit orders?

Changes to standing debit orders can take up to three days to process. If the bank account holder is a third party individual, we will require a copy of that person’s identity document and that person’s specimen signature. If the bank account holder is a third party legal entity, we require a copy of the resolution of signatories, identity documents and specimen signatures of those signatories.