Prudential launches tax-free unit trusts

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Press Release

2 March 2015

Prudential Investment Managers is pleased to report that we have launched our new tax-free class of unit trusts that are available with effect from 2 March 2015.

“We place a great deal of importance on the government’s initiative to encourage savings by introducing Tax-Free Savings Accounts, and are happy to be able to participate in such a valuable and accessible savings tool,” says John Kinsley, MD of Prudential Unit Trusts. “As a consequence, we have been working hard since the measures were first announced to implement a new Tax-Free class (T Class) for some of our most popular unit trusts, where investors can benefit from 100% tax-free growth on their performance.”

Investors will be able to access Prudential’s award-winning Inflation Plus Fund, as well as four other unit trusts with different risk profiles investing across a variety of asset classes. This means 5 of the total of 12 unit trusts Prudential offers will be available for tax-free investments. See the table below for details. The Prudential Enhanced SA Property Tracker Fund will be available from 1 April 2015.

 

Fund Name (T-Class)	Open to investments	Risk Profile	Annual Management Fee (excl. VAT)		Income Distribution Frequency
			Local Assets	Foreign Assets
Prudential Enhanced Income (Tax-Free)	2 March 2015	Low/Med	0.60%	0.95%-1.05%	Quarterly
Prudential Inflation Plus (Tax-Free)	2 March 2015	Low/Med	0.80%	1.15%-1.25%	Bi-annually
Prudential Balanced Fund (Tax-Free)	2 March 2015	Med	0.80%	1.15%-1.25%	Bi-annually
Prudential Enhanced SA Property Tracker Fund (Tax-Free)	1 April 2015	Med/High	0.60%	N/A	Quarterly
*Prudential Dividend Maximiser Fund (Tax-Free)	2 March 2015	High	1.25%	1.25%	Bi-annually

 

Regarding fees, Prudential does not charge initial (up-front) fees on any products. The annual management fees are as shown above, and we will not be charging a performance fee for the Dividend Maximiser Fund, which normally does attract a performance fee for the standard retail A class.

The minimum monthly investment is R1,000, while the minimum initial lump sum investment is R10,000; thereafter no minimums apply for lump sums.

Adds Kinsley: “It is important for investors to remember that the maximum contribution limits imposed by the FSB are R30,000 in a year and R500,000 over the individual’s lifetime. Investors should keep close track of their contributions because they face a stiff penalty from SARS should they exceed these limits – 40% of the excess contribution.”

For more information, investors can visit www.prudential.co.za/our-funds or phone Prudential at 0860 105 775.