WORLDWIDE FLEXIBLE FUND

Globally diversified

Long term capital growth

Actively managed

Capturing our best investment view for long-term investors.

THE FUND

The Ginsburg SCI Worldwide Flexible Fund has been developed by Ginsburg & Selby Private Wealth in order to offer investors access to our very best blend of global investment managers in a simple, regulated and cost effective vehicle.

 

The Fund provides exposure to an actively managed selection of exceptional portfolios, many of which are not typically accessible to the South African investor directly. It offers diversification across the various asset classes, with a bias towards global equities.

 

The Fund is an ideal investment vehicle for South African investors with a long term capital growth objective, who wish to access a globally diversified, managed portfolio without having to use their foreign investment allowance.

 

Ginsburg & Selby directors and staff co-invest alongside our clients, ensuring an alignment of interests and our absolute focus on the long-term success of the Fund.

INVESTMENT APPROACH

Our investment approach is predicated on the following principles and philosophy:

We partner with exceptional investment managers

We allocate capital to managers with differing styles and strategies, each of whom have passed through our thorough due diligence and whom we have identified as having competitive advantages in their area of specialisation.

We have a bias towards active asset management

Through experience in our institutional and private advisory business, we have a proven track record of identifying managers that add value through stock picking and/or superior risk management over the long term.

We invest alongside our clients

Ginsburg directors and staff co-invest alongside our clients. This aligns our interests with those of our clients.

We diversify globally

Restricting investment to one country or market strikes us as inherently risky. We expect to allocate a substantial portion of the portfolio to global markets.

We avoid exotic products

We do not believe that the benefits of investing in exotic products warrant the associated costs and risks. We consequently only invest in regulated investment structures that offer the necessary transparency and liquidity.

We value transparency

We believe in open communication and provide full disclosure in respect of the Fund investments and fees.

Our independence gives us the flexibility to carefully select who we believe to be the best managers globally and in whom we have utmost conviction. This objectivity enables us to diversify the Fund across a blend of manager styles and mandates, consistent with our best view.

 

We only invest in strategies that we believe to be intrinsically sound, where the benefits out-weight the costs and where managers stand up to our scrutiny. We only allocate capital to portfolios that offer the levels of transparency that we demand.

THE STRATEGY

The primary objective of the Fund is to deliver capital growth of 5% above inflation in Rand terms over a 5-year rolling period. The return target necessitates a meaningful exposure to risk assets which may result in a high level of volatility through the various market cycles. The Fund is therefore suited to investors with a long-term time horizon and a tolerance for short-term volatility.

 

The Fund is unconstrained in terms of its exposure to the underlying asset classes and currencies. We can therefore exercise full discretion to implement our highest conviction view, in terms of both asset and currency allocation, as well as manager selection.

 

The Fund employs an active strategy by investing in a blend of managers comprising both flexible and specialist mandates. The underlying investments comprise carefully selected active managers, diversified across the various asset classes, with a bias towards global equities.

 

We believe that global markets, notably in equities, provides the necessary opportunity set to generate favourable returns while concurrently diversifying country-specific risks. The majority of the fund assets are consequently allocated to offshore investments

Fund Asset Class Exposures *

* The asset class exposures shown are as at 3o September 2018.

FUND STRUCTURE

Ginsburg & Selby have partnered with Sanlam Collective Investments (SCI) to offer investors a globally diversified portfolio through a single Rand-denominated unit trust.

 

The Fund is registered in the ASISA Worldwide Flexible Sector (Association for Savings and Investment South Africa), which provides the investment manager with the full flexibility to allocate assets in line with their best view.

 

The underlying investment managers and funds are all registered and regulated in their respective jurisdictions and have passed the due diligence requirements of Ginsburg & Selby. Investments in foreign funds is subject to and in line with legislative requirements.

 

Ginsburg & Selby Private Wealth is registered as a Category I and II Financial Services Provider with the Financial Services Board of South Africa (licence number 42594).

* The Effective Annual Cost (EAC) is a measurement that aims to standardise cost disclosures across different investment products. It is expressed as an annualised percentage and is made up of four components (investment management charges, advice charges, administration charges and other charges), which are added together.

 

The EAC expressed in the table is all inclusive and has been calculated based on actual data where possible and best estimates where actual data is not available given the short history of the Fund. The EAC shown is for the Investor A1 share class.

ASISA Fund Classification Worldwide - Multi Asset - Flexible
Risk Profile High
Benchmark

45% Global Equity (MSCI ACWI), 25% South African Equity (JSE ALSI), 10% South African Cash (STeFI), 10% South African Bonds (Beassa ALBI), 5% Global Cash (Citi 1m CD), 5% Global Bonds (Citi WGBI)
Fee Class Launch Date 3 July 2017
Portfolio Launch Date 3 July 2017
Minimum Investment
Lump Sum : R1 million
Effective Annual Cost * 2.05%
ISIN ZAE000243374
Fund Domicile South Africa
Fund Currency ZAR
Investment Manager Ginsburg & Selby Private Wealth (Pty) Ltd
Management Company Sanlam Collective Investments (RF) (Pty) Ltd

HOW TO INVEST

Application forms for investing in the Fund are available for download on the Sanlam website. Links below:

 

Application Form – Individual Investors (new investors only)
Additional Investment Form (for existing investors)

 

On page 4 of the application form, under Section 8 Investment Instruction, ensure that you enter the GINSBURG SCI WORLDWIDE FLEXIBLE FUND and Class A1 into the Unit Trust Fund(s) table.

 

Once completed, the form can be sent, along with the necessary supporting documents to : UTinstructions@sanlaminvestmentssupport.com

 

The following supporting documents need to accompany your application:

 

  • Proof of bank details (e.g. cancelled cheque or bank statement not older than 3 months)
  • Proof of residential address less than 3 months old
  • Copy of your bar-coded ID, passport (if foreign national) or birth certificate (if minor)
  • Proof of payment

 

You are more than welcome to contact us for assistance with your application.

FREQUENTLY ASKED QUESTIONS

Q1. What is the aim of the Fund?

The Ginsburg SCI Worldwide Flexible Fund has been developed to capture our best investment view in one regulated unit trust for long-term investors. The Fund seeks to provide investors with a return of 5% per annum above South African Inflation (CPI), after all cost, measured over five-year rolling periods.

Q2. Is the Fund appropriate for me?

The Fund is intended for investors with a long term investment horizon (5 years+), who are willing to tolerate the volatility that may be associated with achieving real growth. It is an ideal investment vehicle for South African investors to access a tax efficient, globally diversified portfolio without using their foreign investment allowance.

Q3. Who is the investment manager?

The investment manager is Ginsburg & Selby Private Wealth (Pty) Ltd. The manager selection and portfolio construction is determined by our Investment Committee.

Q4. What are the underlying investments of the Fund?

As a hybrid fund, the manager can invest in a portfolio of direct securities and/or funds. The Fund will have a minimum of 20% invested in direct securities, and a maximum position of 20% per portfolio. The Fund capital is allocated to a blend of independently managed investment portfolios. These are managed by a selection of the best active investment managers that we have encountered globally.

Q5. Against which passive composite benchmark is the Fund compared?

The passive benchmark is a composite of different domestic global asset classes, in the allocation indicated below:

 

Global Equity 45%
South African Equity 25%
South African Bonds 10%
South African Cash 10%
Global Bonds 5%
Global Cash 5%

 

The benchmark has been constructed to target a return of SA CPI + 5%, over the long term.

Q6. What are the fees associated with the product?

We pride ourselves in having created a fund that provides all the elements of a holistically managed investment strategy, including prudent geographic, style and manager diversification, at a comparatively low fee basis.

 

The total estimated fee within the Fund equates to approximately 2.05% per annum. This includes the advisory costs, the underlying manager fees, all operational costs and VAT.

 

We do not charge performance-based fees, as the advisor. We have negotiated preferential fees with managers where possible. Some of the underlying managers charge a performance-based fee, when they generate a return above their respective benchmarks. The total fee may therefore change from time to time, based on manager out- or under-performance.

 

The full detail of the fees is provided below:

 

Ginsburg & Selby 0.75% advisory fee
Fund Manager Fee 0.88% weighted-average flat fee of the underlying managers
Operational Fees 0.25% Sanlam administration, audit, Trustee, offshore capacity etc
VAT 0.17%
Total Estimated Fees 2.05% as at July 2017

 

This fee basis is the all-inclusive estimated annual fee that is incurred, with the exception of the trading costs within the portfolios which will be insignificant. This fee is deducted within the Fund and is included in the daily price (i.e. the daily Net Asset Value). The unit price therefore reflects the Fund performance, after all costs.

 

We do not charge any entry or exit commissions of any kind on investments. We are extremely mindful of the impact of fees on investment returns and believe that costs in the industry will come under greater scrutiny going forward. We endeavour to negotiate fees with managers and vendors to the Fund, where possible, to ensure that our clients incur the lowest possible total cost.

 

Furthermore, we have no commission or trailer fee arrangements with any fund managers either locally or globally. We do not receive any rebates (undisclosed incentive fees) or any other form of remuneration from product/service providers. This fee methodology is consistent with our principles of transparency and independence in respect of the selection of asset managers, platforms and service providers.

Q7. Please provide an overview of the regulatory framework and fund structure?

The Fund is a traditional unit trust co-branded and utilising the Sanlam Collective Investments Management Company licence. The Fund is registered in the ASISA Worldwide Flexible Sector (Association for Savings and Investment South Africa) and is regulated by the FSB.

 

Ginsburg & Selby Private Wealth is registered as a Category I and II Financial Services Provider with the Financial Services Board of South Africa (licence number 42594).

 

The underlying investment managers and funds are all registered and regulated in their respective jurisdictions and have all passed the regulatory due diligence requirements of both the Standard Bank Trustees and Ginsburg & Selby Private Wealth.

Q8. What role does Sanlam play?

Sanlam Collective Investments is our co-branding partner. The Fund is registered under their Management Company licence. Ginsburg & Selby Private Wealth chose to partner with Sanlam due to their long term track record and financial stability.

 

Sanlam Collective Investments (“SCI”) is a wholly-owned subsidiary of the Sanlam Group and falls within the Sanlam Investment Cluster. With more than R134bn in assets under management and administration and over 90 unit trust portfolios, SCI is one of the largest collective investment management companies in South Africa. They have successfully administered collective investment schemes since 1967 and have an outstanding track record in client services.

Q9. Who are the different role players?

The role players and their responsibilities are illustrated below:

 

Investment Manager Ginsburg & Selby Private Wealth (Pty) Ltd
Co-Branding Partner Sanlam Collective Investments (RF) (Pty) Ltd
Custodian Standard Bank of South Africa Ltd
Trustees Standard Bank of South Africa Ltd
Bankers Standard Bank of South Africa Ltd
Administrator Curo Fund Services (Pty) Ltd

Q10. Are there any constraints in terms of liquidity or access to my capital?

The Fund offers daily liquidity. The unit trust will buy back the investors units on request. The market value of the investment will typically be paid out in 3-4 working days.

 

In exceptional circumstances where an underlying position cannot be liquidated in a timely manner, the Management Company (Sanlam) reserves the right to extend the period of payment of redemption proceeds to a period not exceeding thirty Business Days.

 

Where an investor’s assets comprise a large portion of the total fund assets, a ‘ringfencing’ process may be implemented on redemption, so as not to compromise the other investors in the fund.

Q11. What is the Minimum Investment and additional contributions?

The minimum investment is an amount of R1,000,000, or such other amount as the Investment Manager may in its discretion determine. Additional contributions above R100,000 are accepted.

Q12. How can I Invest?

Application forms for investing in the Fund are available for download on the Sanlam website. Links below:

 

Application Form – Individual Investors (new investors only)
Additional Investment Form (for existing investors)

 

On page 4 of the application form, under Section 8 Investment Instruction, ensure that you enter the GINSBURG SCI WORLDWIDE FLEXIBLE FUND and Class A1 into the Unit Trust Fund(s) table.

 

Once completed, the form can be sent, along with the necessary supporting documents to : UTinstructions@sanlaminvestmentssupport.com

 

The following supporting documents need to accompany your application:

 

  • Proof of bank details (e.g. cancelled cheque or bank statement not older than 3 months)
  • Proof of residential address less than 3 months old
  • Copy of your bar-coded ID, passport (if foreign national) or birth certificate (if minor)
  • Proof of payment

 

You are more than welcome to contact us for assistance with your application.

CONTACT US

Belmont Square, Belmont Road, Rondebosch, Cape Town

+27 (0) 21 685 6364

+27 (0) 21 685 6366

info@ginsburg.co.za

CLICK HERE TO FIND US

GET IN TOUCH

Please feel free to contact us, should you have any queries with regards the Fund or the application process. We will gladly attend to any questions that you may have.