Oasis Money Transfer

Oasis Money Transfer

Oasis Money Transfer Frequently Asked Questions

  1. What type of products does Oasis have?

Oasis has two types of products that are marketed to retail investors:

  • Collective investment schemes (or unit trusts) of various risk profiles.
  • Retirement products, consisting of a retirement annuity fund, a preservation pension fund, a preservation provident fund and a conventional retirement fund for companies that manage employer and employee contributions.
  1. How safe is my money with Oasis?
    Oasis has taken stringent measures to ensure that the schemes that the company has established provide the highest levels of security.

Although the legislation in each of the regions in which Oasis operates differs, we would usually seek to establish a fund where the assets are held within a trust that has an independent board of trustees that usually take the form of large financial institutions. In South Africa we have appointed Standard Bank as our trustee.

The investments of the fund are then registered in the name of the respective scheme, and not in any of the Oasis companies. These assets are held by an independent custodian that is responsible for keeping all the securities in safe custody. The custodian needs to be duly authorised to perform this function and as such, Oasis cannot be the custodian.

By segregating the above responsibilities the institutional risk to investors has been limited. The remaining risks that pertain to unit trust investments largely reflect the investment risk, which we try to limit with our investment philosophy of providing “Superior returns at lower than market risk”TM.

  1. What is a unit trust?

A unit trust is a collective investment that enables you to pool your money with other investors who have similar investment objectives. Experienced investment managers invest this pool of money in different assets in financial markets. This includes a wide range of local and international shares or equities (companies listed on a stock exchange), bonds, property, money market instruments and their derivatives.

The total value of the pool of invested money is split into equal portions called participatory interests of units. When you invest in unit trusts, you buy a share of the units of the total fund. The unit price (also known as the net asset value (NAV)) is dependent on the market value of the instruments in which the pool of money is invested and therefore rises and falls. It is calculated daily.

There is a wide range of collective investment funds offered in South Africa. These are both rand and foreign currency based, catering for a myriad of investor needs. This includes funds that generate income to those that offer capital growth in the medium to long term (three to five years and longer). Units should be held for these periods to reap the full benefit of the investment and to minimise the effects of any market ups and downs.

Collective investments such as unit trusts are the most accessible, flexible, protected, regulated and transparent long-term savings vehicles.

 

  1. Why invest in unit trusts?
    Unit trusts have a range of benefits: ·  They reduce investment risk

    Unit trusts invest in a range of underlying assets. This means that all your eggs are not in one basket. Your risk is spread amongst many assets, rather than amongst one or only a few. If any assets perform poorly, your overall investment won’t necessarily perform poorly as there are other assets that may have done very well.

     ·  They are easy and accessible

    Unit trusts are a very convenient way of investing in markets which you otherwise would find difficult to access. Although the minimum investment amounts differs in each region, you can invest in them in South Africa with as little as R500 per month (monthly debit order) or a R2000 lump sum.

     ·  They offer good returns

    History has shown that average unit trust returns compare very favourably with returns from more traditional investment products. The longer you leave your money invested in most unit trusts, the greater the opportunity for growth.

     ·  They benefit from expert decision-making

    Unit trusts are managed by highly qualified investment managers, whose full-time job it is to make investment decisions. Few people have the necessary time, skills or experience to actively manage their own investments on a day-to-day basis.

     ·   They offer value for money

    Unit trusts are designed to give you good value. The pooling of money increases buying power, enabling investment managers to buy assets the small investor normally cannot afford. Fees are competitive and clearly set out. They comprise an annual management fee of 1-2% (excl. VAT) of the fund’s market value and an initial fee up to a maximum of 3% (excl. VAT) of your investment. These usually decrease on a sliding scale for larger investments. The initial fee is deducted from the amount invested before units are purchased at the NAV price and the annual management fee is deducted before income distributions are declared. Unit trust fees are deregulated and investors should familiarise themselves with all fees applicable to any investment as these may differ from fund to fund.

     ·    You always know how much you own

    The NAV prices of units are quoted daily in the national press and can also be obtained directly from the unit trust company. You can calculate the value of your investment at any time by multiplying the number of units you own by the NAV price of your fund.

     ·    Your investments are protected

    Your money is held separately from the managing company’s assets in a trust. If anything goes wrong with the company, your money is safe. The local industry is also strictly regulated by the Registrar of Collective Investment Schemes, the Association of Collective Investments and each unit trust company’s trustees to protect your investment. Similar institutions, such as the Irish Financial Services Regulatory Authority, perform comparable functions in their respective jurisdictions. A vigilant financial press and analysts who continuously monitor the performance of the industry also protect you. In addition, you receive optional quarterly reports and an annual report listing all the assets in which your unit trust invests.

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