Collective Investment Schemes are generally medium to long term investments. The value of participatory interests or investments may go down as well as up and fluctuations or movements in exchange rates may also cause the value of underlying international investments to go up or down. Past performance is not necessarily a guide to the future. The manager does not provide any guarantees either with respect to a funds’ capital or investment returns. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The manager may borrow up to 10% of the market value of the portfolio where insufficient liquidity exists. A schedule of fees and charges and maximum commissions is available on request from the manager. Commission and incentives may be paid and if so, would be included in the overall costs. The quantifiable deduction is the annual management fee (and performance fee where applicable), whilst non-quantifiable fees included in the net asset value price may comprise brokerage, auditor’s fees, bank charges, taxes, trustee and custodian fees. Collective investment prices are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. Forward pricing is used. Where a fund is exposed to foreign securities, investors should consider the (a) potential constraints on liquidity and repatriations of funds, (b) global macro-economic risks, (c) political risks, (d) foreign exchange risks, (e) tax risks, (f) settlement risks and (g) potential limitations on the availability of market information. Funds may be closed. Prior to investing, please read the Minimum Disclosure Document for your chosen fund/s available at www.recm.co.za
This document contains objective factual information about our products; does not constitute advice and the reader should approach a financial adviser to determine suitability before investing. No warranty is given as to the accuracy or completeness of the information and no liability is accepted for reliance upon the information.
The Manager of the RECM Funds is RECM Collective Investments (Pty) Ltd, Company Registration Number: 2004/027540/07, registered under the Collective Investment Schemes Control Act of 2002 and is a member of the Association for Savings and Investment SA (ASISA). The Investment Manager is Regarding Capital Management (Pty) Ltd, FSP No 18834 and the Trustees, the Standard Bank of SA Limited, PO Box 54, Cape Town, 8000. Domestic funds are valued daily at 15h00. Instructions must reach RECM before 14h00 to ensure same day value (11h00 for the RECM Money Market Fund and 13h00 for the Prescient RECM Global Feeder Fund).
The RECM Global Fund is regulated in Guernsey and is an approved foreign collective investment schemes in South Africa. The Management Company is RECM Global Management Limited. The Custodian is Northern Trust (Guernsey) Limited; the Investment Advisor is Regarding Capital Management (Pty) Ltd, FSP No 18834 and the Administrators are JT Fund Solutions (Guernsey) Limited. Please read the Offering Memorandum in conjunction with the Minimum Disclosure Document and “Schedule of Similarities and Differences” available on www.recm.co.za. Global Fund valuations take place at 23h00 Guernsey time. Withdrawal requests and contributions must be received by the Administrators by 15h30 Guernsey time on the business day preceding the next dealing day.
A Feeder Fund is a fund that invests in a single collective investment scheme, levy their own charges while the underlying fund charges its own fees separately and in addition to the feeder fund. The Manager of the Prescient RECM Global Feeder Fund is Prescient Management Company (RF) (Pty) ltd, Company Registration Number: 2002/022560/07, registered under the Collective Investment Schemes Control Act of 2002. The Investment Manager is Regarding Capital Management (Pty) Ltd, FSP No 18834 and the Trustees, Nedbank Investor Services Limited, 2nd floor, 16 Constantia Boulevard, Constantia Kloof, Roodepoort, 1709. The fund is valued daily at 15h00. Instructions must reach RECM before 13h00 to ensure same day value.
The RECM Money Market Fund is not a bank deposit account. The price of each unit in the Fund is targeted at a constant value. Investors’ total returns are made up of interest received and any gain or loss made on any particular instrument; and that in most cases the return will merely have the effect of increasing or decreasing the daily yield, but in cases of abnormal losses it can have the effect of reducing the capital value of the Fund.
The Fund’s yield quoted on an annual effective rate (NACA) basis. The NACA is the effective interest rate an investor can expect to earn over a 12 month period based on the nominal yield of the fund at a point in time. The nominal yield is simply the net interest accrual of all the instruments in the fund divided by the number of units in the fund (the fund NAV). The quoted NACA is always higher than the nominal yield because the calculation is based on an investor re-investing the monthly income distribution back into the fund at the nominal yield. (i.e. The NACA is the compounded annual 12-month rate). Excessive withdrawals from the Fund may place the Fund under liquidity pressures; and in such circumstances a process of ring fencing of withdrawal instructions and managed pay-outs over time may be followed.