In this review, we will talk about Nine One investments and inquire into what’s going on with its funds, plus other relevant updates.
Ninety One is an international investment manager for long-term investments. Using a range of investment vehicles, pooled funds, and individual accounts, the company provides specialized investment solutions to clients worldwide.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
The firm continues to strategically navigate its role in the investment landscape. We recommend to look at your portfolio if you have Ninety One investments or wish to consider alternatives.
A reduction in the assets under management and earnings has resulted from major cash outflows that Ninety One Investments has experienced in 2023. A shift in buyer tastes towards lower-risk assets amid higher interest rates, low confidence among investors, and declining asset values were some of the reasons for these outflows.
Ninety One Review
Independent asset management firm Ninety One first concentrated on domestic assets. The company was established in 1991 in Cape Town and now operates in Asia, Australia, Europe, the UK, and the US after its buildout. The firm’s current headquarters is in London, with more than 20 offices spread throughout 14 countries.
The firm is dual listed in Johannesburg and London.
As of March 31, 2024, Ninety One has 126 billion worth of assets under management, a slight improvement from its decline in 2023.
Ninety One was previously named Investec Asset Management. This was while it was still under Investec Group, prior to their demerger in 2020.
Ninety One Investments
Although the majority of its operations are focused on stocks, Ninety One has expanded its multi-asset business. The company serves institutions, advisors, and individual investors worldwide and specializes in unique fixed income and credit products, niche equities, and alternative investments.
Let’s explore some Ninety One Investments below, particularly offshore investments, retirement annuity, tax-efficient opportunities, unit trusts, tax-free savings, preservation fund, and living annuity for individual investors in South Africa.
We’ll also touch on investments for global investors (global funds).
Offshore Investments
Ninety One offshore investments give individual investors in South Africa access to options in various nations, sectors, firms, as well as currencies.
- There’s the Ninety One Global Investment Portfolio which allows investors to get access to global markets and to make direct investments in offshore unit trusts with different asset classes.
- For investors with higher tax rates, the Ninety One Global Life Portfolio offers an enticing tax benefit over other global market investment options.
- With a preference for capital preservation, the Ninety One Global Diversified Income Fund is designed for cautious investors looking to increase their yield in comparison to US dollar bank accounts. The fund is actively managed and employs Ninety One’s best income-generating prospects across the global fixed income spectrum.
- A standard fixed income portfolio or defensive fund may be substituted with the Global Multi-Asset Income Fund. Investors can choose to invest in the underlying offshore fund using rands through a feeder fund denominated in rands, or access the fund directly as an international vehicle with foreign domicile in USD.
- The Ninety One Global Multi-Asset Income Feeder Fund makes global investments in bonds, company stock, and associated derivatives.
- The Global Strategic Managed Fund actively manages a diversified portfolio made up of cash instruments, fixed income and convertible securities, etc., on an international level to provide long-term income and capital increase.
- Since its launch, the multi-asset Ninety One Global Strategic Managed Feeder Fund has continuously produced returns that are comparable to those of stocks.
- Global Franchise Fund sticks to a long-term investing strategy, emphasizing investments in top global businesses.
Retirement Annuity
Individual investors in SA have a straightforward and tax-efficient way to save for retirement with the help of the Ninety One Retirement Annuity. It provides access to funds that are matched to the investor’s profile and easy online operations.
Tax-Efficient Ninety One Investments
A tax-efficient tool to help with medium- to long-term savings goals is provided by the Ninety One Life Portfolio. With frequent withdrawals allowed after five years, it offers flexibility and access to local and offshore unit trusts.
Unit trusts
Through the purchase of units within a fund, unit trusts give investors access to professionally managed investments. These funds cover different asset classes, such as money market fund, bonds, and stocks. Some funds offer a combination of both domestic and offshore assets, while others concentrate only on one.
Tax-free savings
Leverage a TFSA’s perks to maximize the long-term growth of assets. Investors can even invest on their child’s behalf, if still underage.
Preservation fund
When leaving an employer’s retirement fund, preservation funds provide a tax-beneficial way to protect retirement resources. Within preservation funds, there are no withholding taxes on income, capital gains, or dividends.
Living annuity
When they retire, those who have saved for their future through retirement annuities, preservation funds, or employer-sponsored funds may choose to invest their proceeds in the Ninety One Living Annuity to yield income.
Global Funds
They offer various global funds with different share classes, depending on the investor’s location and applicable laws where they reside.
Since December 2023, Ninety One is said to have combined its fund offerings through a number of closures and liquidations. To be more precise, the business closed two funds because of problems with the assets they were managing, and as part of restructuring efforts, three more funds were combined.
How to Invest in Ninety One funds
- Complete the application form.
- Select funds in line with your investing goals.
- Select the account that you want to make investments in.
- Start investing with a one-time or monthly payment. For the Ninety One Global Investment Portfolio, the minimum lump sum requirement is 25,000 USD or its equivalent in euros and British pounds. For TFSA, it’s either a lump sum or 500 rand per month.
Pros and Cons of Ninety One Investments
Investors may experience both benefits and drawbacks from Ninety One’s plan to simplify its fund offerings through liquidations and closures.
Positively speaking, Ninety One may focus more efficiently on managing a smaller number of funds by streamlining and condensing its fund range. Improved performance and results for investors could result from this.
Higher-quality investment solutions for investors may arise from the company’s pledge to offering the best of its long-term investment management experience.
Operational efficiency and cost reductions can arise from streamlining the fund range. Investors may profit from this if fees are reduced or fund performance is enhanced.
However, less investment options may become available to investors who had previously invested in the closed or combined funds, which could limit their capacity to adequately diversify their portfolios.
Investors may have difficulties during the transition period if there are any short-term disruptions or changes in investing strategies brought about by the closure or merger of funds.
Investors may also experience changes in asset allocation or risk exposure depending on the impacted funds, which could have an effect on the overall structure of their investment portfolios.
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