"Aim to generate a high level of tax-free income in the form of preference dividends"
Overview
Preference shares provide a dividend stream linked to the prime overdraft rate. Although preference share dividends receive priority over those of ordinary shares, preference share dividends are not guaranteed. In addition, preference share prices can fluctuate and may be affected by such factors as the perceived ability of the company to fulfil dividend payment obligations.
Investment Objectives
The portfolio managers aim to generate a high level of tax-free income in the form of preference dividends, subject to strict trading rules, and liquidity and risk management guidelines. Capital growth is not an objective of the Portfolio and investors must be willing to tolerate some fluctuations in the value of the investment and should ideally have a time horizon of at least one year.
Methodology
The Vunani Pref Share portfolio is a segregated portfolio of preference shares listed on the JSE Securities Exchange. At least 60% of the portfolio will be invested in the big 5 banks (including Investec) with not more than 10% of the total portfolio in Investec and not more than 15% of the total portfolio in any one of the other 4 big banks.
40% of the total portfolio will be invested in the rest of the shares on the approved list with no more than 10% of the total portfolio in any one share. In addition, the portfolio will not include both Abil and Capitec prefs.
Only variable rate, cumulative, non-redeemable, non-participating preference shares are invested in.
Benchmark performance is measured against the average performance of Domestic – Fixed Interest – Money Market unit trusts
"Aim to generate a high level of tax-free income in the form of preference dividends"
Overview
Preference shares provide a dividend stream linked to the prime overdraft rate. Although preference share dividends receive priority over those of ordinary shares, preference share dividends are not guaranteed. In addition, preference share prices can fluctuate and may be affected by such factors as the perceived ability of the company to fulfil dividend payment obligations.
Investment Objectives
The portfolio managers aim to generate a high level of tax-free income in the form of preference dividends, subject to strict trading rules, and liquidity and risk management guidelines. Capital growth is not an objective of the Portfolio and investors must be willing to tolerate some fluctuations in the value of the investment and should ideally have a time horizon of at least one year.
Methodology
The Vunani Pref Share portfolio is a segregated portfolio of preference shares listed on the JSE Securities Exchange. At least 60% of the portfolio will be invested in the big 5 banks (including Investec) with not more than 10% of the total portfolio in Investec and not more than 15% of the total portfolio in any one of the other 4 big banks.
40% of the total portfolio will be invested in the rest of the shares on the approved list with no more than 10% of the total portfolio in any one share. In addition, the portfolio will not include both Abil and Capitec prefs.
Only variable rate, cumulative, non-redeemable, non-participating preference shares are invested in.
Benchmark performance is measured against the average performance of Domestic – Fixed Interest – Money Market unit trusts