unit trusts available
For purposes of these terms, unless otherwise indicated by the context of the sentence or clause, the following terms will have these meanings:
1 Administrator: the company which administers the Client’s investment, being either Allan Gray or Peregrine, depending on the Product under administration;
2 Adviser: A financial service provider as contemplated in the Financial Advisory & Intermediary Services Act 37 of 2002.
3 Allan Gray: Allan Gray Unit Trust Management Limited or Allan Gray Investment Services Limited depending on the Product under administration, both wholly owned subsidiaries of Allan Gray Limited;
4 Business Day: Any day other than a Saturday, a Sunday or a holiday (including a public or bank holiday).
5 Client: Refers generally to any person who uses the Service who signs the Investor Declaration / Record of Advice, Client Service Agreement and has signed the Client Declarations when submitting a Request.
6 Information: Includes all of your personal and confidential information.
7 Intellectual Property Rights: All patents, trademarks, service marks, design rights, copyright, trade or business name, know-how, concepts, ideas, methods, procedures, processes, techniques, models, reports, templates, software, and other similar rights or obligations, whether or not registerable, registered or application for registration having been made, in any part of the world. It includes any changes or additions;
8 InvestOnline: Torchway Investments (Pty) Limited (Registration Number 2009/016758/07) trading as InvestOnline, approved by the Financial Services Board as a Category 1 licensed non-discretionary Financial Service Provider (FSP), whose FSP licence number is 40592, which offers the Service to Clients through the Website– addressed as ‘we’, ‘us’ or ‘our’;
9 Investor: a Client who has entered into a Product related contract with an Administrator for the investment;
10 Losses: All loss or damage, including direct, indirect, extrinsic, special, penal, punitive, exemplary or consequential loss or damage;
11 Marks: Any trademarks, logos, brand names, domain names, or other marks of InvestOnline;
12 Peregrine: Peregrine Collective Investments Pty Ltd.
13 Profile: The information you provide to us through the Website using our risk profiling tool, regarding one of the Products for which rankings and recommendations are offered on the Website.
14 Product: The Unit Trust Fund administered or supplied by an Administrator from time to time;
15 Request: An application form completed by the Client and submitted through InvestOnline to an Administrator to transact on a Product;
16 Service: The limited, independent advice and risk profiling service offered by us aimed at facilitating your purchase of a Product from an Administrator;
17 Website: The InvestOnline website currently found at http://www.investonline.co.za;
You: Any person who visits or uses the Website,
including a Client and Investor.
1 We have inserted the clause headings for convenience only. The headings should not affect your interpretation of the terms.
2 Any reference to a person includes a natural and juristic person.
3 The rule of construction, that a contract must be interpreted against the party responsible for the drafting or preparation of the contract, does not apply.
4 All defined terms are used in title case. You should interpret the same terms appearing in lower case according to their plain English meaning.
5 Whenever “including” or “include”, or “excluding” or “exclude” is used, together with specific examples, they will not limit the ambit.. This does not apply to one specific example.
References to any enactment will be deemed to include references to the
enactment as re-enacted, amended, or extended from time to time.
1 These terms and conditions govern the provision of the Service with respect to the Product for which rankings and recommendations are offered on the Website.
2 Your relationship with us is also governed by the Investor Declaration / Record of Advice, Client Service Agreement and Client Declaration which you sign when submitting a Request, which documents are located at http://www.investonline.co.za/compliance-docs.php and are incorporated herein by reference. In the event of a conflict between the provisions of any of those documents and these terms and conditions, the provisions of the relevant document will prevail.
3 A separate contract is entered into between you and your Administrator once you select a Product. We are not a party to that contract. We are merely the Administrators accredited agent.
4. Acceptance of these terms
1 You accept these terms when you visit the Website or use the Service and thereafter you are deemed to have accepted these terms each time you visit or use the Website or you login to your Online Account.
Your acceptance of these terms will be deemed to have taken place at our
offices in Cape Town.
5. THE SERVICE
1 We provide an Internet-based service that generates personalised rankings and recommendations of units trusts based on your Profile.
2 The Services is not targeted at residents outside of the Republic of South Africa. In particular, nothing on this Website should be interpreted as targeting persons or entities in the United States of America, Canada, the United Kingdom, Australia and Hong Kong.
3 Prior to making use of the Service, you are required to read and familiarise yourself with the contents of the Website in which information about the Service is provided.
4 The information on the Website is provided solely to enable you to make your own investment decisions and should not be regarded as a solicitation or recommendation to buy, sell or otherwise deal with any particular investment.
5 The Services referred to on the Website may not be suitable for all Clients. If you are in need of personal in depth financial advice or a full financial needs analysis, you should consult an Adviser.
6 Our provision of the Service with respect to the Products is non- discretionary. We rely on the information submitted by you in your Profile in order to generate our rankings and recommendations with respect to a Product and cannot be held responsible for any rankings or recommendations based on inaccurate information.
7 We do not and will not have custody of the Product you may acquire and do not and will not have any authority to make any investment, switch or withdrawal on your behalf.
8 Once a recommendation or ranking has been generated by the Website, in particular our “IOL recommended portfolio“, the choice of whether or not to implement a transaction based on any such recommendation or ranking and the method of making the investment (including the selection of service provider) is in your sole and absolute discretion.
9 The Service is intended as a single need advice tool for investment savings designed to help you make investment decisions. It is designed to assist you in your investment planning. It is not a retirement planning tool. We do not conduct a financial needs analysis. The Service is not a substitute for your own informed judgment. You are responsible for your own investment decisions, and you may accept, reject or modify the investment rankings and recommendations provided by us.
We specifically draw your attention to the fact that you have a right to
a full analysis of your financial objectives before acquiring a Product. Should
you decide to acquire a Product without conducting a full financial needs
analysis, we draw your attention to the fact that there may well be needs in
your personal financial planning which require more urgent attention than the
need which you are addressing at present. Accordingly it is your responsibility
to ensure that the advice we provide is appropriate given your current
1 You may use the Website and Service free of charge. No subscription or other fees are levied against you for the Service. In you acquire a Product no upfront fees are charged. However, an annual service of 0.57% + VAT will be charged per annum.
A schedule of fees and charges is available on the Website under the
“Fees” tab. The TER (total expense ratio) for each of our unit trust funds
available is accessible on the fund fact sheets section housed in the unit
trusts available section of the Website. We will endeavour to keep these fund
fact sheets up to date at all times. However, we cannot be held liable for
recent unit trust fund fee changes not updated on the funds fact sheets
displayed on the Website.
7. Submitting REQUESTS
1 We will only enable you to place a Request where:
1.1 You are legally entitled to do so;
1.2 The Request complies with all of our relevant terms;
1.3 You furnish us with all the information and documentation we require, as specified under point 5 of “How to Invest” on the Website; and
1.4 You provide us with the FICA documents we require, failing which we cannot process your Request. .
2 If you submit a Request you warrant that:
2.1 All information is current, accurate, true, and complete; and
2.2 You are old enough to contract with InvestOnline or an Administrator;
2.3 Are legally capable of concluding any transaction;
2.4 Possesses the legal right, full power, and authority to contract with InvestOnline or an Administrator;
3 If you are younger than 18 years of age, you warrant that you have obtained the consent of your legal guardian to contract with us or that you have obtained legal status in another manner.
4 All your Requests will be deemed to have taken place at our office in Cape Town.
5 When you communicate with us relating to a Request, it will be deemed received when the communication is received on our web server. When we communicate with you regards a Request, it will be deemed received when the communication leaves our web server.
6 We will provide you with a confirmation of receipt by e-mail when we receive your Request. Your receipt of the email constitutes acknowledgement of receipt of the Request. This is proof that we have received the Request. If you do not receive an acknowledgement of receipt, then your Request has not been received by us.
7 You agree that the physical and electronic records of all Requests will constitute prima facie evidence of the contents of the Request.
8 A Request cannot be terminated or revoked once submitted to us.
9 Under no circumstances will we be held liable should there be a delay in the processing of any Request, except where the delay is solely attributable to gross negligence on our part. You agree to indemnify us and hold us harmless against any Loss arising from any delay. Us includes our directors, employees, agents, consultants, and advisers.
You undertake to furnish us in writing with any changes in your personal
details. We are not responsible for any consequences arising from your failure
to inform us.
1 You must receive an email from us confirming that all is in order for redemption to proceed. Here we need proof of your bank details and the fully completed and signed Redemption form of the Administrator. For timelines, please refer to Administrators Terms and Conditions.
All cut off times for new investments, switches and redemptions is 12pm
in order to meet Administrator cut off times.
9. PRODUCT RELATED CONTRACT
1 Once you proceed with the recommendation you will enter into a separate contract with an Administrator governs your use of the product. You are not a party that contract.
2 Your Administrator will process your completed application form which we sent to them on your behalf.
3 We draw your attention to the fact that you are responsible for making sure that sufficient funds are available in your bank account for collection by your Administrator for your lump sum investment and your monthly debit order.
4 We will communicate with you annually on the anniversary date of your investment with respect to ongoing investment advice.
You will receive approximately 4 quarterly statements by e-mail from
2 We will do all things reasonably necessary to protect your rights of privacy while you are using the Website.
3 Information which you transmit to us is encrypted via a secure socket layer ("SSL") and is an accepted means of securing electronic information furnished over the internet. Kindly check the lock in your browser to verify the existence of SSL when completing a Request and for information relating to our digital certificate.
4 Notwithstanding this, we cannot accept any liability for unauthorised or unlawful disclosure of any information made by third parties who are not subject to our control.
We cannot be held responsible for any Losses suffered by you or by any
other third party as a result of your Information being disclosed.
11. Availability of the Website
1 We will make every effort to ensure the Website is always available.
2 We reserve the right to temporarily or permanently suspend the operation of the Website (downtime). The reason for this may include:
2.1 Maintenance and software upgrades;
2.2 Security concerns; or
2.3 Technical issues.
3 The Website will not be available when we are conducting maintenance and software upgrades.
We will not be liable for any Loss incurred or suffered arising from any
cause as a result of any suspension or downtime.
1 We reserve the right to preserve the security and reliable operation of the Website at all times.
You must not do anything (or permit anything to be done) that will
compromise our security.
1 We record your login data, including the date and time, your IP address, HTTP header information, browser type and version, and screen resolution. We also monitor the Website to track activity and performance to improve the quality of the Website.
You waive your right to claim from or institute legal action against us
because we record your login data or monitor the Website.
14. Changes to these terms
1 We may change these terms at any time, to which you will be bound. We may change these terms to cater for changes in our business needs and applicable legislation (amongst other things).
If you object to any change, you are entitled to terminate your access
telephonically or in writing
15. Intellectual Property Rights
2 You are obliged to comply with all laws applicable to any Intellectual Property Rights in respect of any information you access, retrieve, or store when using the Website.
3 We grant you a limited, non-exclusive licence to access and use the Website. You are not allowed to modify (other than by page caching) any portion of the Website without our prior written consent. However, an Investor may change their Information.
4 Unless we explicitly permit you to do so, the licence does not permit you to:
4.1 Resell or make commercial use of the Website or its contents;
4.2 Collect or any use of any product listings, descriptions, or prices;
4.3 Make derivative use of the Website or its contents;
4.4 Download or copy any information for the benefit of another service provider; or
4.5 Use data mining robots or similar gathering and extraction tools.
No part of the Website (or any information or documents available on the
Website) may be reproduced, duplicated, copied, sold, or otherwise exploited
for any commercial purpose without our prior written consent. Furthermore no
person may frame (or use any framing techniques to enclose) any Marks or other
proprietary information (including images, text, page layout, or form) without
our prior written consent.
1 We do not and cannot guarantee the future performance of any Product ranked or recommended by us. Past performance is not necessarily a guide to the future and investors may not get back the full amount invested. Asset class information is as at the stated date on each of the fund fact sheets accessible under the “unit trust funds available” tab on the Website. However asset allocations could change considerably over time subject to mandate parameters.
2 We do not promise that any investments we rank or recommend will be profitable or that those ranked higher will outperform those that are ranked lower.
3 The prices of Products ranked and recommended by us may be volatile, and any investment made in reliance on the rankings and recommendations we provide may lose value.
4 The price and value of investments and their income may fluctuate. You may get back less than the amount that you invested. Past performance is not necessarily a guide to future performance.
5 The levels of and bases of taxation can change. The value to an investor of any tax benefits will depend on that Investor's tax position. Investors should consult their own tax advisers in order to understand any applicable tax consequence.
6 Where an investment is described as likely to yield income, or being suitable for an investor particularly seeking income from his/her investments, you should note that income from investments may fluctuate and part of the capital may be used to pay that income.
7 We do not provide recommendations as to general asset allocation, and do not take your existing asset allocation into account in determining its rankings. The recommendations provided by us are specific to the Profile information you provide, and we assume that the Profile information you provide falls within your chosen asset allocation parameters.
8 We may provide access to news and content provided by third parties over which we do not exercise editorial control or review, and we are not responsible for the content of such materials. The information is compiled in good faith and based on sources believed to be reliable, accurate and up to date. We accordingly do not
8.1 and cannot guarantee the completeness, accuracy, correct sequencing or timeliness of the educational, news and financial market information that we obtain from others and make available to you on our Website;
8.2 guarantee the suitability or potential value of any information or particular investment source. You agree that we will not be liable for any action you take or decision you make in reliance on this information or any other information found on the Website;
8.3 make any representations or give any warranties, express or implied, are made as to the accuracy, completeness or suitability of the information and no responsibility or liability is accepted by us for any Loss which may flow, directly or indirectly, from any use of any information.
9 The recommendations made and opinions expressed herein are done in good faith and to the best of our ability.
We use reasonable care, consistent with sound industry practice, in
providing the Service.
17. Exclusion of liability and indemnity
1 To the extent permitted by applicable law, we will not be liable for any Losses (whether arising out of or based on negligence or whether under contract, delict, strict liability, breach of express or implied warranties, or otherwise) that you sustain. We includes our directors, employees, agents, consultants, or advisers.
2 If a court or other competent authority rules that liability cannot be excluded, our responsibility to you will be limited to direct damages only.
You agree to indemnify us and hold us harmless against any Losses
suffered or incurred by you or instituted against us by any third party as a
direct or indirect result of your failure to comply with these terms. Us
includes our directors, employees, agents, consultants, and advisers.
18. CIRCUMSTANCES BEYOND CONTROL
We will not be held responsible for a failure in performance or breach
of these terms caused by circumstances beyond our control, including any
breakdown or failure of power supply, the Internet, any telecommunications
systems, or any computer hardware or software.
1 If you are not satisfied with our Service, you can write to our compliance officer at the address given under “Contact” on our Website. Remember to include all supporting documents. We will acknowledge the complaint in writing and will inform you of the contact details of the person who should be able to resolve it.
If you are not satisfied with our response, or if you have a complaint
about the advice given by us in respect of a Product, you can write to the
Ombud for Financial Service Providers at the following address:
The Ombud for Financial Service Providers
P.O. Box 74571 Lynnwood Ridge 0040
Toll-free: 0860 324 766
20. DISPUTE RESOLUTION
1 Notification. A dispute between us exists once either of us notifies the other in writing of the nature of the dispute and requires it to be resolved under this clause. We agree that all disputes will be resolved by:
1.1 negotiation; failing which
1.2 mediation; failing which
2 Negotiation. Within 3 Business Days of notification, we must try resolve the dispute by signing an agreement resolving it within a further 7 Business Days.
3 Mediation. If negotiation fails, we agree to refer the dispute for resolution by mediation under the rules of the Arbitration Foundation of Southern Africa (AFSA).
4 Arbitration. If mediation fails, we agree to refer the dispute for resolution by arbitration within seven Business Days by one arbitrator appointed by agreement between us, as an expedited arbitration in Cape Town in English under the then current rules for expedited arbitration of AFSA. If we are unable to agree on any arbitrator within a period of 5 Business Days after the referral, the Secretariat of AFSA will appoint the arbitrator.
5 Periods. The periods for negotiation or mediation may be shortened or lengthened by written agreement between us.
6 Urgent interim relief. This clause will not preclude us from access to an appropriate court of law for interim relief in respect of urgent matters by way of an interdict, or mandamus pending finalisation of this dispute resolution process.
7 Severability. This clause is a separate, divisible agreement from the rest of these terms and conditions.
1 Whole agreement: These terms constitute the entire agreement between you and us regards the subject matter of the terms. Neither of us will be bound by any undertakings, representations, warranties, or promises not recorded in these terms.
2 No Variation: No change, cancellation of, or addition to these terms by you will be enforceable, unless put in writing and signed by both of us.
3 Waiver: No granting of time or forbearance will be, or be deemed to be, a waiver of the terms and no waiver of any breach will operate as a waiver of any continuing or subsequent breach.
4 Severability: If any term is found to be invalid, unlawful, or unenforceable, the specific term will be removed from these terms. The remaining terms will continue to be valid, lawful and enforceable. If any term is found to be invalid, but it is possible to change the term to make it valid, then we agree to negotiate a change.
5 Applicable Law: This Agreement is governed by and construed in accordance with the laws of South Africa. All disputes, actions, and other matters relating to these terms will be settled according to those laws.
This is the company which administers your unit trust investment on the Allan Gray Investment Platform – Allan Gray Investment Services Limited is an authorised administrative financial services provider. In this document it is referred to as the `Administrator´.
The person/legal entity, including a trust, who has invested in unit trusts via Allan Gray Investment Platform – addressed as `you´.
Allan Gray Nominees
This is the company who holds the investments in safe custody for your exclusive benefit - Allan Gray Nominees (Pty) Limited.
The company that administers the Portfolio(s) of a Collective Investment Scheme in terms of the Collective Investment Schemes Control Act. Allan Gray Unit Trust Management Limited is an example of a Manager.
The account through which the Portfolio(s) you choose are administered.
Portfolio of a Collective Investment Scheme
This is an arrangement that enables investors to pool their money and have it professionally managed and invested in a range of underlying assets. The underlying assets of a Portfolio vary depending on the Portfolio’s investment objective. Portfolios are commonly referred to as `unit trust(s)´ or `fund(s)´. In this document the term `Portfolio´ is used.
Participatory interest in a Portfolio of a Collective Investment Scheme
A Portfolio of a Collective Investment Scheme is divided into equal parts, also referred to as `units´. Each unit represents a direct proportionate interest in every underlying asset of the Portfolio. The number of units in your Investment Account depends on how much money you contribute and what the unit price is when units are bought.
A business day is any day other than a Saturday, Sunday or South African public holiday. In this document day and business day have the same meaning.
There are different legal entities that are party to this agreement. These are:
• The Administrator
• The Manager
• Allan Gray Nominees (Pty) Limited
The terms of your unit trust investment with the Administrator is based on the application form, supporting documentation that you provide and this document. All other instructions which you provide and which the Administrator accepts will also form part of the agreement.
All instructions need to be in the prescribed format and accepted by the Administrator.
All instructions are subject to:
• the requirements of the Administrator, the Manager and applicable legislation at the time of the transaction
• the availability of the selected Portfolios,
• processing requirements of the Administrator (this includes cut-off times and time periods for processing),
• terms and conditions of the Administrator or the Manager,
• minimum amounts specified by the Administrator, applicable at the time of the transaction
The Administrator may suspend, delay or withdraw your instruction due to the above.
a. Provide accurate information
You must ensure that all information in instructions and supporting documentation that the Administrator receives from you is true and accurate.
b. Make informed financial decisions
If you require financial advice it is your responsibility to appoint a financial adviser. Neither the Administrator nor Allan Gray Unit Trust Management Limited provide financial advice. It is also your responsibility to negotiate the fees payable for advice with your financial adviser.
c. Appoint or change your financial adviser
You may appoint, change or remove your financial adviser at any stage by writing to the Administrator. The Administrator will inform your financial adviser of the change. If you remove your appointed financial adviser, this will take effect after five business days.
d. Make contributions
You may make the following contributions:
• initial lump sum,
• additional lump sum,
• recurring monthly contributions via debit order.
e. Select your Portfolio(s)
You need to select one or more Portfolio(s) that suit your investment needs and risk profile. Portfolios may be available in different classes which may have different fee structures. Based on Exchange Control Regulations and the discretion of the relevant Manager, certain Portfolios may be subject to availability.
f. Monitor your Portfolio(s)
You are responsible for regularly reviewing your Portfolio(s) and ensuring that they suit your circumstances. The Administrator does not take responsibility for your selection.
g. Phase your investment into your selected Portfolios
When you make an initial investment or an additional contribution you may phase your investment into your selected Portfolio(s) monthly over 3, 6, 9 or 12 months. If you wish to phase your investment in, your contribution must initially be placed in the Allan Gray Money Market Fund or the Allan Gray Stable Fund. This option is subject to the minimums applicable at the time of the transaction.
h. Switch between Portfolios
You may switch between the available Portfolios. All switch transactions have two components:
• sell units from your existing Portfolio
• buy units in another Portfolio
If the market value of a Portfolio from which you wish to switch is less than the minimum amount prescribed by the Administrator, the entire amount must be switched. This amount must be switched into one Portfolio. The two components of the transaction may not take place on the same day and the prices are not guaranteed.
i. Withdraw some or all of your investment
You may withdraw some or all of your investment by selling the units in the Investment Account. You may also schedule regular withdrawals on a monthly, quarterly, half-yearly or yearly basis. However, should the market value of the Investment Account decrease below the Administrator’s required minimum balance after your withdrawal(s), the Administrator may require you to withdraw the remaining balance.
j. Transfer ownership
You may request a transfer of some or all of your units in your Investment Account to another legal entity or natural person. This may result in a payment of Capital Gains Tax.
k. Report errors
You have 14 days after receipt of the investment confirmation or any statement from the Administrator to report any errors to the Administrator.
l. Notify the Administrator of changes in bank or contact details
You need to inform the Administrator of any changes in your bank or contact details, including your postal and email address, and provide supporting documentation where appropriate.
m. Cede the units
You may cede some or all of your units in your Investment Account as security. It is your responsibility to manage the cession.
n. Vote in a ballot
You may vote in any ballot that affects the Portfolio(s) you selected. The Administrator will not vote on your behalf.
a. Accept or reject instructions
The Administrator may decide whether it will accept or reject your application or any subsequent instructions. The Administrator may also reverse a transaction if it decides the circumstances justify it.
b. Communicate with you
The Administrator will communicate with you on behalf of the Manager(s). You are entitled to any information that the law requires a Manager or listed company to disclose.
c. Confirm changes
The Administrator will confirm any changes made to your investment with you.
d. Provide statements
The Administrator will provide you with quarterly statements and certificates of income and capital gains for taxation purposes where applicable. Additional statements are available from secure section of www.allangray.co.za or the Administrator.
e. Process all instructions
The Administrator is responsible for processing your instructions. The Administrator will process an instruction once all supporting documentation is received and requirements are met.
Unit prices are calculated daily at 16:00 by taking the total value of all assets of the Portfolio, including any income accrual less permissible deductions, and dividing that by the number of units created for the Portfolio. Because pricing takes place at the close of each business day, the price is only available the following business day.
Processing timelines for:
1. Buying, selling and switching
The table below shows the timeline for buying and selling units in a Portfolio, and for switching between Portfolios administered by the same Manager.
Business cut-off to receive an instruction is 14:00
Process the instruction
Buy or sell units
Unit price received from the Manager
Shows on investor statement
Before 14:00 (Day 1)
The price at the close of Day 2
After 14:00 (Day 1)
The price at the close of Day 3
For certain Portfolios there will be an additional business day for the units to show on your Allan Gray statement. It is noted on the Allan Gray Investment Platform fund list when and where this applies. Units purchased with a debit order cannot be sold within 32 days of each investment date. Units purchased with a cheque deposit cannot be repurchased within 14 days of the investment date.
Although the selling of the units will show on your statement within four days if you make a withdrawal, it may take longer for the payment to show in your bank account.
2. Recurring monthly contribution via debit order
You may select to contribute via debit order on the 1st or 15th of each month. The Administrator will collect the contribution on your selected date and then invest it at the unit price of the following day. If your selected date is not a business day the Administrator will collect the contribution on the next day. The Administrator needs to receive the instruction by 14:00 three days before the selected date. Any instructions received after the cut-off date will be processed the following month.
3. Switching Portfolios administered by different Managers
Business cut-off to receive an instruction is 14:00
Process the instruction
Administrator sells units
The Administrator receives money from the Manager
The Administrator pays the money to the new Manager
Manager buys units
Shows on Investor statement
Before 14:00 (Day 1)
After 14:00 (Day 1)
Transactions that require a sale of the underlying investments will normally take a maximum of six business days to process. However, the last contribution via a recurring debit order cannot be sold within 32 business days of that contribution date. For certain Portfolios there will be an additional business day for the units to show on the statement.
Phase-ins are scheduled on the 5th of every month. If the 5th is not a business day it will take place on the next day. The Administrator needs to receive the instruction by 14:00 five days before the scheduled phase-in day. Any instructions received after the cut-off date will be processed the following month.
5. Regular withdrawals
The payment day is the 27th of every month. If the 27th is not a business day the payment will take place on the next day. The Administrator needs to receive all instructions by 14:00 six days before payment day for payment to take place that month. Any instructions received after the cut-off date will be processed for the following month’s payment date.
Business cut-off to receive an instruction is 14:00
Sale of units in the market
Price Date for units sold
Payment made to you
Income shows in your bank account
Six days before payment day
Two days before payment day
Two days before payment day
One day after payment day
6. Processing sequence of multiple instructions
If the Administrator receives an instruction while another instruction is in progress, the second instruction may be delayed until the first is complete.
f. Allocate bank interest earned
Bank interest earned by the Administrator in its bank account on deposits made by you will be added to the investment amount if it is in the Administrator’s bank account for more than 24 hours.
g. Make payments
When you withdraw some or all your units in your Investment Account payment will be made to you only. Proceeds from the sale of any units will be paid per Portfolio, which may result in multiple payments to you. All payments are made in South Africa in South African Rand, via electronic fund transfer only, into a current, transmission or savings account held in your name.
h. Reinvest income distributions
Any income distribution made within a Portfolio will be re-invested automatically.
i. Remove a Portfolio
If for any reason a Portfolio you selected is no longer available, the Administrator will give you written notice. The Administrator will ask you to select an alternative from the remaining Portfolios. If you do not select another Portfolio within the time period given by the Administrator, the Administrator will switch your investment from the affected Portfolio to the Allan Gray Money Market Fund.
j. Professional indemnity and fidelity insurance cover
The Administrator is insured against fraud, negligent or dishonest behaviour.
k. Amend the terms of this agreement
The Administrator may amend its terms and conditions. Please contact your financial adviser, the Client Service Centre on 0860 000 654 or www.allangray.co.za for the latest version of these.
The Administrator must be notified of your death in writing at its head office. The notification should include:
• your personal details,
• identity number,
• a certified copy of the death certificate, and
• your investor number
Following the notification of death, the Administrator will act on instructions received from the executor of your estate.
Neither the Administrator nor Allan Gray Unit Trust Management Limited give advice. They do not employ financial advisers.
b. Certain losses suffered
Neither the Administrator nor Allan Gray Unit Trust Management Limited are responsible for any losses that may be suffered due to:
• errors made by the Manager of a Portfolio;
• the investment or market risk of the underlying investments;
• changes in tax or other legislation;
• delays in the processing or the rejection of an application because the financial adviser is either not an authorised Financial Services Provider or does not have a contract with the Administrator;
• financial advisers acting beyond the scope of their FSB license
• unauthorised instructions given by the financial adviser;
• the failure of any networks or electronic or mechanical devices;
• the Administrator or Allan Gray Unit Trust Management Limited providing your appointed financial adviser with details about your investment either via telephone, email, fax or a secure website;
• the Administrator acting on information sent electronically;
• the delayed sale of units in a Portfolio due to ring-fencing:
Ring-fencing is the separation and delayed sale of units in a Portfolio. Large sale of units in a Portfolio above certain thresholds may cause ring-fencing. This ensures that the sale of a large number of units will not force the Manager to sell the underlying investments at a price in the market which could have a negative impact on investors. The Administrator may delay the payment or reinvestment of the proceeds of the sale of units.
c. Delays in processing instructions
The Administrator will carry out instructions at the earliest possible opportunity, subject to legislation, its own administration procedures and any Portfolio limitations. The Administrator does not accept responsibility for delays in processing instructions as a result of extraordinary events that cause extensive disruptions.
You cannot cancel the investment as there is no cooling-off period. However, you may sell the units in your Investment Account at the ruling unit price.
b. Investment guarantees
The market value of the units may go down as well as up, and past performance is not necessarily a guide to the future. Portfolios are therefore generally medium- to long-term investments. You carry the investment risk, which includes the possibility of losing capital.
If a fee or charge is levied, this is passed on to you by reducing the underlying investments of the Investment Account by the same amount. Your choice of Portfolios and their associated class will determine certain aspects of the fee structure.
Where applicable, these fees and charges are levied proportionately across all Portfolios of the Investment Account. You may choose to have your annual administration and annual adviser fees deducted from your Allan Gray Money Market Fund. This will be known as your preferred fee Portfolio.
If the preferred fee Portfolio does not have sufficient funds to pay the fees, the Administrator will deduct fees from the Portfolio(s) where the fees have accrued. If there is an insufficient balance in that Portfolio the Administrator will deduct fees proportionately from the remaining Portfolios.
The Administrator may be required to pay any charges due to a change in:
• tax (including any new tax),
• practice, or interpretation of any legal or regulatory authority.
• There are generally three types of fees that may be deducted from your investment on an initial and annual basis:
• administration fees
• Portfolio management fees and
• financial adviser fees.
a. Initial Fees
Initial fees are deducted before the investment is made.
i) Administration fee
There is no initial administration fee.
ii) Portfolio management fee
The Manager deducts any initial Portfolio management fee from each investment amount (or amount to be switched) before the purchase of units. The fee is based on the investment amount (or amount to be switched) less any initial financial adviser fee.
iii) Financial adviser fee
If you and your financial adviser agree to an initial financial adviser fee (as indicated in the application form or any other written communication acceptable to the Administrator), the Administrator will pay the financial adviser the agreed amount from the investment before the investment is made.
b. Annual fees
All annual fees are calculated and accrued daily, based on the market value of the investment at the end of each day.
i) Administration fee
The Administrator charges a maximum annual administration fee of 0.5%( excl. VAT) per year less any fee discount provided by the Manager of your chosen Portfolio. Depending on the class of your chosen Portfolio, annual administration fees are either:
a. Deducted by selling units from the Portfolios; or
b. Included in the published price of the Portfolio and paid to the Administrator by the Manager.
If the Administrator receives a full fee discount, as is currently the case with Allan Gray Portfolios, no fee will be deducted from your investment.
ii) Portfolio management fee
The Manager charges annual Portfolio management fees. There are also other allowable expenses associated with Portfolios. These fees and expenses are included in the published price of the Portfolio. Please refer to the relevant Portfolio fund fact sheets and the Allan Gray Investment Platform fund list for more details.
iii) Financial adviser fee
If you and your financial adviser agree to an annual financial adviser fee (as indicated in the application form or any other written communication acceptable to the Administrator), financial adviser fees will be paid. Depending on the class of your chosen Portfolio, annual financial adviser fees are either:
a. Deducted by selling units from the Portfolio.
The Administrator pays this amount to the adviser monthly; or
b. Included in the published price of the Portfolio.
The Manager pays this amount to the financial adviser, or to the Administrator who pays the financial adviser
c. Other fees
i) Termination fee
There is no fee when you withdraw your investment.
ii) Portfolio exit fee
The proceeds of the sale of any units will be reduced by an exit fee if the Manager charges one.
iii) Portfolio switching fee
The Administrator does not charge a switching fee. However, because a switch is made up of a ‘buy’ and a ‘sale’ of units, the Manager may charge Portfolio initial and exit fees.
d. Value added tax (VAT)
VAT may be added to any fees or charges relating to your investment.
e. Changes in fees or charges
The fees and charges that the Administrator recovers from the Investment Account may change. The Administrator will notify you when:
• New or additional charges or fees are added,
• There is a change in the method of calculation to any:
• initial administration fee
• annual administration fee
• Portfolio switching fee
• Portfolio exit fee, which leads to an increase in fees
f. Reporting of fees
The quarterly statement will indicate the applicable fees for your investment for the applicable period.
More information about the fees and charges may be obtained from a financial adviser or from the Administrator’s Client Service Centre.
The following are some of the main acts and regulations that govern this contract. Amendments to or replacements of the legislation and directives issued by the regulatory authorities may change these terms and conditions.
The Collective Investment Schemes Control Act
This act regulates Collective Investment Schemes and their Portfolios.
Exchange Control Regulations
The availability of certain Portfolios are subject to these regulations.
Income Tax Act
This act applies where we refer to taxation.
Financial Intelligence Centre Act
This act requires that the Administrator obtains certain information to verify who you are before it processes your application.
Financial Advisory and Intermediary Services Act
This act applies to any advice given relating to this investment. It also governs any form of intermediation between you and the Administrator.
Administrator: Allan Gray Investment Services Limited
Postal and physical addresses of the head office and contact details of the Allan Gray Client Service Centre:
PO Box 51605
Tel: 0860 000 654 or +27 (0)21 415 2301
Fax: 0860 000 655 or +27 (0)21 415 2492
If you are not satisfied with this investment or the services from the Administrator, you can write to the compliance officer at the address above. Remember to include all supporting documents. The Administrator will acknowledge the complaint in writing and will inform you of the contact details of the person who should be able to resolve it.
If you are not satisfied with the response from the Administrator, or if you have a complaint about the advice given by a financial adviser in respect of this investment, you can write to the Ombud for Financial Service Providers.
The Ombud for Financial Services Providers
PO Box 74571
Toll-free: 0860 324 766