Understanding Investments

1. Collective Investment Scheme (CIS)
A collective investment portfolio 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.

2. Collective Investment Scheme (CIS)
Total CIS Net Asset Value = R1m
Amount of Units Issued = 500 000
Value of 1 unit = R2
Collective Investment
Scheme
You are the unit holder
The total value of the pool of invested money is split into equal portions called participatory interests of units.
When you invest in collective investment portfolios, 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

3. Security
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 industry is also strictly regulated by the Registrar of Collective Investment
Schemes, the Financial Services Board and each collective investment
portfolio company's trustees to protect your investment.

4. Multi Asset Allocation Funds
Multi Asset Class CIS Asset Classes Regulation 28
Limits
Cash Max 75%
Bonds
Equity Max 25%
Property
Max 25%
Offshore

5. Equity Breakdown
Equity Owns Various Shares
BAT CND
Equity
CCL ADW
AGL ASA
The unit price of the CIS changes as the share price changes. Any dividends
received from the shares will be re-invested automatically to buy more units.

6. Fund Classifications - SA

7. Fund Classifications (non SA)

8. Linked Investment Service Provider (Lisp)
A Lisp is a company that enables you to invest in a wide range of collective investment
schemes, such as unit trust funds, via one source.
Effectively an investment administration and product packaging business, a Lisp also offers
CIS
access to products such as endowments, retirement annuities, preservation funds and living
annuities to cater for the full range of your investment needs.
A Lisp is licensed to buy and sell units in collective investment schemes on your instruction,
effectively acting as your agent.
A Lisp never owns the units that it buys. By law all money received by a Lisp from clients
must be held in a trust account until invested and similarly the proceeds of all sales must be
paid into a trust account. Under no circumstances may your money be mixed with Lisp
assets.
All Lisps must be licensed with the Financial Services Board (FSB) as Administrative Financial
Services Providers. Lisps are regulated by the Financial Advisory and Intermediary Services
(FAIS) Act.

9. Collective Collective Collective
Investment Investment Investment
Scheme Scheme Scheme
Retirement Annuity (RA)
Linked Investment Services Platform (LISP)