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Terms & Conditions

  • Foord Unit Trusts (RF) (Pty) Ltd (Foord Unit Trusts) is an approved CISCA Management Company (#10), regulated by the Financial Services Board.
  • Portfolios are managed by Foord Asset Management (Pty) Ltd (Foord), an authorised Financial Services Provider (FSP: 578).
  • The custodian/trustee of Foord Unit Trusts is RMB Custody and Trustee Services (a division of FirstRand Bank Limited), contactable on T: 087 736 1732, F: 0860 557 774, www.rmb.co.za.
  • Foord holds both professional indemnity and fidelity insurance cover.
  • Foord is a registered VAT vendor. VAT registration number: 4560201594.

UNIT TRUSTS IN GENERAL

  • Collective Investment Schemes in Securities (unit trusts) are generally medium- to long-term investments. Unit trusts can engage in borrowing. Foord does not engage in scrip lending.
  • A feeder fund is a portfolio that, apart from assets in liquid form, consists solely of units in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for these portfolios. A fund of funds invests only in other Collective Investment Schemes, which may levy their own charges, which could result in a higher fee structure for these portfolios.

FOORD TAX FREE INVESTMENTS

  • Foord Tax Free Investments in class B4 are tax free investment as contemplated in section 12T(8) of the Income Tax Act. This means that local interest earned will be tax free, local dividends will not be subject to dividends withholding tax and gains made on disposal of tax free investments won't attract capital gains tax. Taxes may be withheld on income earned in foreign jurisdictions.
  • This investment is available to South African resident individuals only.
  • Contributions to tax free investment accounts are limited to R33 000 per year and R500 000 in the Investor's lifetime. These limits apply across ALL the Investor's tax free investment accounts (if you have more than one tax free investment account, the annual contribution limit is R33 000 across all of your accounts combined, NOT R33 000 per annum per account). Foord may not accept any investment in excess of these contribution limits.
  • Reinvestment of distributed income does not count towards the contribution limits and redemptions are not considered when calculating the Investor's annual or lifetime contributions.
  • Any contribution exceeding the annual or lifetime contribution limits is taxed at 40% of the excess amount.
  • It is the Investor's responsibility to monitor tax free investment accounts carefully to ensure that in the aggregate they do not exceed the annual or lifetime contribution limits. Foord Unit Trusts will not be liable for any losses, including taxation payable by you, as a result of your use of this investment account.

FOORD FUND FACT SHEETS

  • Foord publishes fund fact sheets each month, which are available free of charge on the website www.foord.co.za and on request. Fund fact sheets disclose important information about the composition, including asset allocation and large fund exposures, performance and characteristics of each Foord unit trust and should be read regularly.
  • Performance, as displayed on the fund fact sheets, is calculated for the portfolio. Individual investor performance may differ as a result of the actual investment date, the date of reinvestment and withholding taxes.

FEES AND CHARGES

  • The total expense ratio (TER) of a portfolio, which is set out in the latest fund fact sheet, is a measure of a portfolio’s annual expenses, fees and charges, expressed as a percentage of the average daily value of the portfolio. These expenses include the annual fee, VAT, audit fees, bank charges and costs incurred in any underlying funds. Included in the TER, but separately disclosed, is a performance fee (or credit) resulting from overperformance (or underperformance) against the benchmark. A higher TER ratio does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. Performance return information and prices are always stated net of the expenses, fees and charges included in the TER.
  • Foord’s manager’s charge varies between funds and between classes within each fund. The basis for calculation of the manager’s charge is set out in the monthly fund fact sheet.
  • Commission and incentives may be paid and, if so, are not borne by the investor. A schedule of maximum commissions is available on request from Foord.
  • Foord charges zero initial, switching and exit fees.

TAXATION

  • Foord will not be responsible for any loss, consequential or otherwise, arising from changes in tax or legislation that may have an impact on the performance of the investments.
  • Investors are encouraged to seek independent tax advice regarding the potential tax consequences of Foord Unit Trusts investments, taking account of their personal circumstances.
  • Distributions: 
  • Distributions are subject to mandatory withholding of dividend tax and interest withholding tax. Dividend Tax is currently charged at a rate of 20%. Non-SA resident investors may qualify for a reduced rate of taxation, based on their country of tax residence. Investors qualifying for exemption or a reduced tax rate must submit the required declaration to Foord.
  • Interest withholding tax is charged a rate of 15% and applies only to non-SA resident investors in respect of interest from certain underlying portfolio assets.
  • For South African investors distributions are subject to: 
  • Income tax on distributed interest
  • Income tax on distributed REIT dividends
  • Dividend tax on distributed dividends, unless they are exempt.
  • Capital gains: South African investors may be taxed on capital gains, subject to the annual exemption limits.
  • Tax reporting: Tax regulations require Foord to collect certain information about each investor’s tax residency and tax classifications. Foord is obliged to provide information about certain Foord investors to the relevant tax authorities depending on the tax residency and classification of the investors. US citizens are considered tax resident in the US irrespective of their actual country of residence.

RISKS OF INVESTMENT

  • The value of participatory interests (units) may go down as well as up and past performance is not necessarily a guide to the future.
  • Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements.
  • Foord Unit Trusts does not guarantee the capital invested or the performance return of the investment.
  • The portfolio may include underlying foreign investments. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. The underlying foreign investments may be adversely affected by political instability as well as exchange controls, changes in taxation, foreign investment policies, restrictions on repatriation of investments and other restrictions and controls which may be imposed by the relevant authorities in the relevant countries.
  • An equity indicator, that indicates the relative weight of equities in each Foord unit trust, is provided on each monthly factsheet. A higher equity weight could result in increased volatility of returns.
  • Foord will not be responsible for any loss, consequential or otherwise, arising from changes in tax or legislation that may have an impact on the performance of the investments.
  • The investor acknowledges the inherent risk associated with the selected investments and that there are no guarantees. The investor furthermore agrees that Foord will not be liable for the consequences of market influences and consequent changes in unit prices.

PRICING/VALUATION

  • Unit trust prices are calculated on a net asset value basis. This is the total value of all assets in the portfolio including any income accruals less any permissible deductions from the portfolio.
  • Permissible deductions from the total portfolio include bank charges, trustee/custodian fees, audit fees, manager's annual fees, securities transfer tax and brokerage.
  • Forward pricing is used.
  • Units are traded at ruling prices and will be repurchased by Foord in accordance with the requirements of the Collective Investment Schemes Control Act and on terms and conditions set forth in the relevant Deed.
  • The portfolios are valued daily at 15h00. The business cut-off time for receiving an instruction is 14h00. Should an instruction be received after 14h00, it will only be processed on the following business day, at the price determined on that day (excluding weekends and public holidays).

RESTRICTIONS

  • Investors wishing to redeem units amounting to more than 5% of the total market value of the relevant unit trust fund portfolio must provide Foord with at least 7 business days’ written notice of such redemption. If this notice is not received by Foord, Foord may treat such withdrawal as only having taken place on the 7th business day after such instruction is received. However, where the amount to be redeemed exceeds 10% of the total market value of the portfolio, the parties shall determine the actual date of withdrawal through mutual agreement between them.
  • Foord reserves the right to terminate the investment contract by giving 5 days’ notice to the investor. Units shall be repurchased on the 5th day after notification of termination at the ruling price on that day. Any proceeds from the termination shall be paid into the investor’s bank account given in the application form.
  • The Foord unit trusts may be capped at any time for them to be managed in accordance with their mandates.

ADMINISTRATIVE MATTERS

  • The cut-off time for receiving an instruction is 14h00. Instructions received after 14h00 will only be processed on the following business day, at the price determined on that day (excluding weekends and public holidays).
  • All instructions must be requested on the prescribed form or through the Foord Web Portal and will be executed following receipt and acceptance of such instruction and subject to Foord’s requirements having been met. Please note that in the case of redemptions, settlement may take up to 48 hours.
  • Investments will only be processed on receipt of monies and all required documentation. No interest shall accrue to monies awaiting allocation.
  • Any units purchased as a result of a cheque deposit cannot be repurchased, switched or transferred within 14 days of each investment date.
  • Any units purchased as a result of a debit order cannot be repurchased, switched or transferred within 40 days of each investment date.
  • Statements and reports are sent to all investors on a monthly basis. Advice notes are sent on a transaction basis.
  • Investors must provide current contact details to Foord Unit Trusts. If an investor becomes uncontactable or if a distribution or redemption payment is rejected by the recipient bank, their participatory interests will be considered to be unclaimed units. Foord will make reasonable attempts to contact holders of unclaimed units, which may include making use of an external tracing company. Related costs may be recovered from these investors. Unclaimed units will remain invested in the portfolio, until the units are claimed or transferred to another portfolio with the Registrar’s consent.

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