The Investment Platform for Exchange Traded Products

Transcription

1 The Investment Platform for Exchange Traded Products

2 Exchange Traded Products are popular around the world because they make investing simple and cost effective. Traditionally, investing on the share market has meant searching for individual shares or portfolios of shares that, investors hope, will do better than the market. This is known as active investing. It requires skill and that skill comes at a price. Strange as it may seem, it is this price that results in a large number of actively-managed funds underperforming, not outperforming, the market. When it comes to simplicity, one of the best investment products you can own doesn t try to pick the winners, but invests in all the shares of a market index. For instance, it is now possible for you to own the performance of the top performing shares on a stock exchange with one simple investment. Exchange Traded Products are low-cost index products that invest in all or some of the shares of an index. Because they are traded on an exchange, you can buy or sell them whenever the market is open. For your peace of mind, virtually all Exchange Traded Products are subject to robust regulations such as the Financial Markets and Collective Investment Schemes Acts. Who are we? We are South Africa s leading Exchange Traded Products investment platform. What do we do? We make investing simple, easy and cost effective for everyone by bringing low cost Exchange Traded Funds, Notes, Portfolios, Retirement Annuities, Living Annuities, Structured Products and Market Linked Endowments together in one convenient place. How to Invest (You and your Financial Advisor) Itransact believes in the value of independent financial advice. We provide products and services through authorised professional financial advisers. Ask your financial advisor how you can benefit from Exchange Traded Products. Consolidated Online Reporting We provide you and your financial advisor with online access to consolidated reports and valuations across all your investment products with Itransact, keeping you informed and saving you time. Keep it simple

3 We make investing simple for everyone...

4 Access leading South African and international asset managers and banks. All in one place, for your convenience. Keep it simple

5 Investor Market The complexities of investing. Simplified.

6 Exchange Traded Products don t try to beat the market. They are the market. Despite the share market s impressive long term growth, many investment professionals believe they can outperform it by picking shares or buying when the market dips and selling when it peaks. However, over many decades, around the world, research has shown that approximately 85% will fail. Simply put, only 1 out of every 5 funds that invest in shares might outperform the market. Keep it simple

7 Exchange Traded Funds (ETFs) ETFs are index-based unit trusts that hold the physical assets of the index they track and are traded like individual shares on stock exchanges. ETFs cover most equity, bond, property, commodity and money market indices. ETFs don t try to do better than the market, but because of their lower costs they often end up beating the funds that try. Exchange Traded Notes (ETNs) ETNs differ from ETFs in that they do not hold the physical shares of the indices they track. They track an index through synthetic replication of the index in the form of unsecured debt underwritten by a bank. ETF Living Annuity Index based living annuities let you choose and switch between your own low cost, penalty free, risk profiled index portfolios. Nominated beneficiaries receive the residual value, free of any estate duty, on the death of the annuitant. ETF Preservation Fund Your pension fund savings cannot be transferred to your next employer. A low cost penalty free ETF preservation fund enables your retirement savings to continue to grow through a choice of index tracking risk adjusted ETF portfolios that are managed according to pension regulations. Exchange Traded Fund Portfolios (ETFs) ETF portfolios track the market by investing in a basket of low cost ETFs and ETNs according to a strategic asset allocation model. They simply provide the return of the market on a risk adjusted basis. ETF Retirement Annuity ETF retirement annuities are low cost penalty free investment products which track the market according to pension fund regulations by investing in a basket of low cost ETFs and ETNs on a risk profiled basis. Structured Products Structured Products Index based structured products are designed to provide varying levels of capital protection, whilst offering investors tailor made enhanced return strategies by utilising traditional shares, but replacing their payment features with non-traditional payoffs derived from the performance of one or more underlying assets. Market Linked Endowment Policy These are used to house investment assets in a tax efficient structure. Other benefits include the absence of capital gains tax and the ability to transfer the assets with their tax benefits intact to nominated beneficiaries on the death of the policy holder. Keep it simple

8 Simplicity is the ultimate sophistication - Leonardo da Vinci Contact us Financial Advisors Investors Web Mobile info@itransact.co.za Keep it simple Disclaimer Exchange Traded Products are subject to risks similar to those of shares. Investment returns will fluctuate and are subject to market volatility, so that an investor s shares, when redeemed or sold, may be worth more or less than their original value. Past performance is not necessarily a guide to the future. The information furnished in this publication may include opinions, estimates, indicative rates, terms, price quotations and projections. It reflects the existing judgment of Itransact and current market conditions, which judgment and conditions are subject to change without notice, modification or amendment. The information herein has been obtained from various sources, the accuracy and/or completeness of which Itransact does not guarantee. Itransact recommends that independent tax, accounting, legal and financial advice be sought should any party seek to place any reliance on the information contained herein. Itransact does not provide investment advice. This publication has been prepared for general dissemination and information purposes only and may not be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. All rights reserved. Any unauthorised use or disclosure of this publication is prohibited. This publication may not be reproduced without the consent of Itransact. Itransact is an authorised financial services provider.