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Category Retirement
SUB CATEGORIES Annuties |  General |  Savings & Investments | 

Something new

22 May 2004 Angelo Coppola

The Innofin International Multi-Currency fund has been launched for investors wishing to increase the overseas and rand hedge exposure of their portfolios.

"The rand's current strength against the US dollar, the currency with the largest weighting in the fund, provides an excellent investment opportunity," says Cobus du Plessis, head of marketing the SP2 products.

"At its current levels, the probability is that the rand will depreciate rather than appreciate against the US dollar, resulting in the fund's returns being enhanced."

Secondly, the fund's underlying investments are a weighted basket of hard currencies. Foreign cash is an appealing asset class relative to foreign equities and bonds, which are currently trading at expensive levels.

“The funds’ exposure to a basket of currencies makes investing in foreign cash less expensive, as investors do not have to combine several funds, each with their own annual fee structure.

“Switching actions and fees are also reduced, as the investor does not have to make tactical moves - these will all take place within the fund."

The fund, which is rand based and classified as a foreign fixed interest varied specialist fund, will have at least 85% invested in foreign fixed interest securities and bank deposits. The remainder of the fund will be invested in rand denominated fixed interest securities and bank deposits.

"The fund is ideal for investors requiring low risk international exposure and a hedge against potential rand depreciation," says Du Plessis.

"Investors who have made gains in foreign equities or bonds and wish to capitalise their profits can switch into this fund."

Investors can invest discretionary and contractual money in the fund through the various SP2 linked products.

The fund has no fixed investment period or minimum investment amount, however, the SP2 minimum investment requirements for the different products must be met.

The fund, managed by Sanlam Multi-Managers, will be open until 23 July 2004, unless capacity is reached before then.

Quick Polls

QUESTION

There are countless articles written about South Africa’s poor retirement outcomes. Which of the following would you single out as the biggest contributor to local savers not accumulating enough to buy an adequate and sustainable pension?

ANSWER

Lack of personal accountability
Poor participation in formal retirement funds
Reluctance to seek financial advice early on
SA’s high unemployment rate
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