|
Brantam range of funds increases.
"STONEWALL INTERNATIONAL"
With international markets in a state of disarray, leaving investors
in a quandary as to how to capitalise on a weakening Rand, and of course,
South Africa’s increasingly active entry into the "Global" arena via listed
companies such as Old Mutual and Liberty Life, it was imperative that we
(the Brantam Group) had a serious re-think on where to position ourselves.
Once again, we believe that our research has led us along the correct path,
and we can now forge ahead with confidence with the latest suite of funds.
As for our local range of funds, which we launched 6 years ago, the ability
to be able to "wrap" up a suite of global Mutual Funds has taken some time
to put together, but, just as our suite of funds locally have given us an
edge in SA, so we feel that, by applying this knowledge gleaned over the
years, plus having the expertise in Mutual Fund management of AOS
International, we feel that we have a winner.
Question – who are AOS International ?
Automated Outsourcing Services are a company under the very successful
M3 Capital Holdings banner, one of the largest asset managers in South
Africa (± R 35 billion under administration). They have been instrumental
in changing thinking in South Africa on how to administer unit trust funds,
and have also been actively involved in offshore management through companies
such as Scottish Life and SEI, one of the largest Multi-Managers world wide.
This knowledge will be used in the administration of the Brantam portfolio’s.
Question - how safe would my funds be in a Brantam International portfolio ?
Similarly to the local funds, your international investment will be
housed in a nominee account through Guernroy Ltd, a division of Royal
Bank of Canada who are the ultimate custodians, and function within a
separate legal entity. Each investment made by yourself is thus housed
within the nominee account in your (the client’s) name. Consequently,
all investments made into the nominee account are totally unaffected by
the financial status of Brantam, the administrator (AOS) or the custodian
(Royal Bank of Canada), as the structure is designed to provide the investor
with the highest degree of financial protection.
Question – who actually manages my money, and is it cost effective to have so many "arms" involved ?
Through the mandate which you will be required to sign, you will empower
the Brantam management team to manage your portfolio for you. Your only
risk is thus the actual investment performance of the portfolio (see
portfolio breakdown below) that you will have selected. Remember, though,
that at NO time does Brantam, the administrator or the custodian,
physically hold any investments in their own names, and act merely in a
facilitating position.
From a costing perspective, both Brantam and AOS have elected to reduce
their entry level and annual management fees substantially, making us one
of the lowest in the industry. A full list of fees are included further on.
So, in summary, there are no onerous added fees because of multiple
persons involved. In fact, if you have a look at the fee structure further
on, and have had experience of fees charged through other institutions, you
will probably find that ours are of the lowest in the industry.
As for your "investment risk", this will really only be in terms of the
profile that YOU will have selected and signed for in the mandate. If you
elect to go in to the high risk portfolio because you believe that the
markets are at a low, and thus have upside potential, and indicate this on
your mandate, you will not be able to then hold Brantam liable should the
markets crash even further. However, please be aware that we will always be
in a position to guide you through this selection, and will caution you
against any rash moves if we see fit to do so.
Note, also, that these portfolios are continually being re-weighted, hence
the fact that asset allocations can fluctuate from week to week as the
markets move. Consequently, unit prices on the funds will also change daily.
Despite these changes, however, the original mandates for each fund will be
strictly adhered to at all times. Attached please find a brief narrative on
the 3 funds with their present asset allocation.
As with any investment, the costing structure is an integral part of the
ultimate performance. Despite numerous newspaper reports by prominent
journalists, it is our belief that the Funds Performance are well
"priced" and extremely competitive. However, for your own sake, it is
always important to make comparisons to ensure that you are getting the
best deal available.
To be absolutely fair to all, our fees are calculated on a sliding scale,
and depending on the situation, can be negotiated down from the following.
The "situations" that could precipitate this would be business volumes
(i.e. more than one potential deal within a group) etc. - nothing is cast
in stone !
INITIAL ENTRY FEES:- * Excluding VAT
|
|
Gross
|
|
$0 - $10 000
|
2.50%
|
|
$10 000 - $30 000
|
1.85%
|
OTHER FEES APPLICABLE
ANNUAL MANAGEMENT FEES: These are constantly under negotiation
with the administrators, but for the present moment, there is a flat fee
of 1.00 % per annum being levied, deducted monthly at a rate of 0.0833 %.
Amounts in excess of R 5,0 million are open for negotiation.
SWITCHING FEES: Having multiple portfolio's would be worthless if
we did not have the facility to move freely between them as the market
dictates. This will attract an administration fee not exceeding 1.00 %
(and could be lower depending on the house that we are switching from and
to) of the value of the assets at the time of the switch. Note this fee may
well be lower, as some of the financial institutions that we may select from
time to time do have lower rates.
|
PORTO Low risk; Income generation:
|
|
|
|
As for our local "Classic Port", this fund is aimed at the investor
who has a low risk tolerance and does not want exposure to global
equities. This portfolio will, on average, be predominantly invested
in cash and bonds.
|
Global Bond Funds
|
40.00%
|
|
Low Risk Hedge Funds
|
20.00%
|
|
Low Risk Equity funds
|
10.00%
|
|
Cash
|
30.00%
|
|
MERLOT Medium Risk
|
|
|
|
A medium risk fund aimed at providing some protection against sudden
volatility, however, with a flavour of equity built in to provide upside
potential. This should be considered a 3 – 5 year term portfolio.
|
Global Bond Funds
|
30.00%
|
|
Low Risk Hedge Funds
|
35.00%
|
|
Medium Risk Equity
|
30.00%
|
|
Aggressive Equity
|
5.00%
|
INVESTMENT HOUSES:
The current list of Brantam approved investment houses are as follows :
Invesco GT (nothing to do with Investec)
Fidelity
Franklin Templeton
Investec International
NIB International Hedge Fund managers
EIM Multi Hedge Fund managers
Amongst this lot, we have access to over 200 funds worldwide, offering
diversity amongst ALL asset classes such as global bonds, both corporate
and sovereign; money markets in all denominations; equity funds in all
geographic regions; all aspects of “theme” funds such as Leisure, IT,
healthcare etc.
The choice of investment houses could obviously change from time to time,
however, the current list tend to represent all that we require to provide
you with diversification, so there should not be too many changes.
Lastly, the above 3 portfolio’s can be accessed via your R 750 000
allowance in SA Rand OR directly from an offshore source. Brantam will
naturally assist in obtaining all the necessary tax clearance certificates etc.
|
