OASIS HOUSE • 96 UPPER ROODEBLOEM ROAD • UNIVERSITY ESTATE • CAPE TOWN 7925 • SOUTH AFRICA | info@oasiscrescent.com • TEL: +27-21-413 7860
INVESTMENT INSIGHTS
The first step to investing in a Collective Investment Scheme is to define the objective of investing. You should clearly decide why you want to invest. There are several schemes tailor-made to meet a range of personal financial goals (children's education, marriage, retirement etc.).
You should also define the period over which you want to invest and the risk appetite that you have. Thereafter, you can select a fund type that best suits your need i.e. equity scheme, liquid scheme, balanced scheme, etc.
Remember that when you decide to make an investment of this nature, it is usually a good idea to contact a professional investment consultant who will assist you in formulating your investment needs and goals before attempting to select an investment product.
Once you have a good idea of the type of investment you would like to make, you can choose the fund on the criteria that you feel are relevant. Common criteria that have been used to select funds include the following:
-
The track record of performance of schemes over the last few years
-
Quality of management and administration
-
Parentage of the Collective Investment Scheme
-
Quality and adequacy of disclosures
-
Service levels
-
Independent rating of the schemes, if available
-
The initial fees and its impact on overall return
-
The ongoing fees and its impact on overall return.
CHOOSING A FUND
TYPES OF FUNDS AND PORTFOLIOS
In order to cater for the wide variety of investors needs, whatever their age, financial position, risk tolerance or return expectations, Oasis has a range of Funds and Portfolios that will be suitable to invest in.
Fixed-Income Funds
PORTFOLIOS
Balanced
Funds
Money
Market
Funds
The financial services industry has, over the years, spread the range of collective investments into different classes of the same fund. When discussing a specific fund that has a range of different classes these are most commonly know as multiple class funds.
​
Different classes within the same fund hold an interest in one underlying portfolio. The assets within the fund are not split. What is the difference between the classes in the same fund? This can vary, but in the main the differences revolve around the fee arrangements in the classes.
In times there has been a move away from fixed fee classes to performance fee arrangements. The main objective is to incentivise the investment manager to generate high performance in the fund, thereby aligning the interests of the manager with that of the investors. Performance fees are only paid when performance is better than the bench mark. The manager’s share is 20% of the out-performance, so that the investors still enjoy 80% of the out-performance, after performance fees have been deducted.
​
Performance fees are capped at 2%, annually.
The Oasis and Oasis Crescent range of funds, in South Africa, are moving to a performance fee calculation basis, in the form of a A & D Class, for each fund.
However, going forward, ALL new investments or additional investments whether for existing or new investors, will be invested in the new D Class of the fund selected.
CLASSES OF FUNDS