Page 139 - Profiles's Unit Trusts & Collective Investments - September 2024

Classification of CISs

Fund Classification
REGIONAL
WORLDWIDE
GLOBAL
Assets) SOUTH AFRICAN Invest in South African Invest at least 80% Invest at least 80% of
TIER of their assets in South (complete flexibility, up to of their assets outside South Africa, in a specific
Invest at least 55% of
their assets outside
and/or foreign markets
of South Africa
African investments.
(Domicile (including Africa) other
1st 100% either way) geographical region
than South Africa

TIER Allocation) stock exchanges, depending equity, interest bearing and INTEREST BEARING Listed property shares on
EQUITY
MULTI ASSET
REAL ESTATE
Listed shares on various
Invests in a combination of
Bonds, money market
instruments and other
local and overseas stock
2nd (Asset on 1st tier classification listed real estate assets interest-bearing securities exchanges
Funds Funds Funds Funds
General Flexible Variable Term General
Large Cap High Equity Short Term
TIER (Focus) Mid & Small Cap Medium Equity Money Market
Resource
3rd Financial Low Equity
Income
Industrial
Africa
Unclassified

Many permutations are possible across first and second tiers
(eg, SA - Equity, Global - Equity, Worldwide - Multi Asset, Regional - Equity, etc).
Third tier classifications are specific to Equity, Multi Asset, Interest Bearing and Real Estate.

categories (the four geographic divisions) can be combined with any of the four second-tier
divisions. The third-tier classifications, however, are specific to their second-tier “parent”
categories.

First Tier
At the first level, funds are classified according to the geographic focus of their underlying
investments – whether they are invested in South Africa, offshore, or in a combination of local and
offshore assets.
South African Funds (previously called Domestic funds) are funds that have at least 55% of
their assets invested in South African markets at all times. They may invest up to 45% of assets
outside South Africa.
Worldwide Funds are funds which invest in both South African and foreign markets. These
funds have total flexibility as to where they invest – they can have 100% of their assets offshore, or
100% in South Africa, or any mix in between, depending on their view of local and overseas
markets, the rand and other factors. (For the record, a minimum of 15% each way was required
prior to 2003, and a minimum of 30% each way until June 2005.) Some management companies
offer investors the option of investing in worldwide funds while they are waiting for space in a

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