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Satrix Unit Trusts FAQs

Discover Satrix Unit Trusts, from their low cost and accessibility to their regulations and investment details. Learn how to buy unit trusts and how to protect your investments. Find answers in our comprehensive FAQs.

What are Unit Trusts?

A unit trust is a collective investment vehicle that pools money from various investors to create a diversified portfolio managed by an appointed asset manager. Different unit trusts aim to achieve specific investment objectives by investing across different asset classes like shares, bonds, property, etc. The total investment value is divided into units, and their prices fluctuate based on market conditions.

What are the Benefits of Investing in Unit Trusts and How Can I Buy Them?

Investing in unit trusts offers several advantages, including:

  • Accessibility: Easy access to diversified investments.

  • Low Cost: Satrix offers index-tracking unit trusts at competitive rates.

  • Transparency: Clear insight into investments and their performance.

  • Liquidity: Ability to buy and sell units at any time.

Satrix provides index-tracking unit trusts with no minimum investment through SatrixNOW. Our unit trusts are also accessible via Linked Investment Service Providers (LISPs) or private stockbroking accounts.

How Can I Buy Satrix Unit Trusts?

Satrix unit trusts can be conveniently purchased through various means:

  • Online: Visit SatrixNOW.co.za to buy units directly.

  • LISPs: Access through Linked Investment Service Providers.

  • Private Stockbroking Accounts: Available via your private stockbroking account.

How is My Investment Protected?

Unit trusts are rigorously regulated and monitored:

  • Regulation: Governed by CISCA and monitored by independent trustees under FSCA.

  • Safety: Investor funds are safeguarded and held separately from the management company's assets.

Can I Invest in Unit Trusts on Behalf of My Children?

Yes, parents or legal guardians can open a SatrixNOW investment account for minors and then invest in a Satrix Unit Trust. Parents or guardians are required to manage the investment until the minor reaches adulthood (18 years old).

How Can Unit Trusts Make Money for Investors?

Unit trusts generate returns through:

  • Capital Growth: Based on the increase in the value of the underlying assets.

  • Dividends: Accumulated dividends can be reinvested or distributed to investors, depending on the specific fund strategy.

  • You typically have the option to payout or automatically reinvest your dividends.

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Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities and an authorised financial services provider in terms of the FAIS. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange.

ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF Minimum Disclosure Document and or on the Satrix website.

Performance is based on NAV to NAV calculations of the portfolio. Individual performance may differ to that of the portfolio as a result of initial fees, actual investment date, dividend withholding tax and income reinvestment date. The reinvestment of income is calculated based on actual distributed amount and factors such as payment date and reinvestment date must be considered.

*Note exchange prices are delayed in accordance with regional exchange rules.South African prices are delayed by 15 minutes; North American prices are delayed by 15 minutes.