David Le Page
First stop on a tour of websites dealing with unit trusts in South Africa must be the Association of Unit Trusts, www. aut.org.za.
The association is the industry’s promoter and watchdog, and its website, though not properly kept up to date, is a good introduction to the industry. Its “guided tour” explains how funds work, what the rationale behind them is, the different kinds of funds and how to choose those that best match your investment profile.
Part of the site is an excellent glossary of financial terms covering investment and the industry. It is also a good first stop in looking for links to those institutions selling unit trusts.
Bear in mind, though, that as an industry association, it takes pains to present unit trusts in the best possible light, and does not dwell on their potential pitfalls. It’s also rather thin on explaining something of how the industry is legislated, though the classification of funds is laid out in simple terms.
Unfortunately, it suffers from that standard malaise of South African websites: it is not updated as new information becomes available.
M-Web’s Moneymax, www.moneymax.co.za, which covers all aspects of investments, offers a 30% discount on unit trusts purchased through its website. It also carries an investor risk profile assessment and a free assessment of your unit trust profile. Its performance figures are up to date, carrying assessments of the past three- and six-month periods.
Serious analysis is summarised from an investor newsletter, the complete version of which is available at a reduced rate. Finding the product in which you are already invested is quick and simple, and those with a bent towards technical analysis will appreciate the interactive data and graphs sourced from BFA-Net.
Unit Trusts South Africa (www.utsa.co.za) offers certain discounts on online purchases. But even if you prefer the old- fashioned purchasing method, the site offers a tracking service through a weekly e-mail dispatch, giving you information on the movements of your unit trust portfolio over the last week. Its online information is rather more sketchy than that offered by Moneymax.
Tradek.com is an online investment site, concentrating on equities. But the brokerage is also a re-seller of linked funds at a commission of only 1%, rather lower than the more standard 5%. This facility comes through the Momentum Advisory Services. Tradek is also able to provide information and advice should you wish to invest in offshore funds, and have the required minimum capital of R10 000.
Fundsdata.co.za is another accessible information service, and its graphical analyses are a statistician’s delight. Crucially, it offers information not just on fund performance and composition, but also on management. If you’re tracking a team more than you are a sector, this site will ensure you don’t lose them.