Appendix 11: Schedule of Similarities and Differences between
a) Foreign (Ireland) & South African Regulations;
b) Foreign (Ireland) & South African Collective Investment Scheme
Foreign Scheme: Nedgroup Investments Funds PLC (Ireland domiciled UCITS)
Topic/Item
Foreign Regulation
Foreign Scheme
South African Regulation
South African Unit Trust
No limit.
No limit.
A Sub-Fund may invest no more
than 10 per cent. of its Net Asset
Value in Transferable Securities
or money market instruments
issued by the same body
provided that the total value of
Transferable
Securities
and
money market instruments held
in the issuing bodies in each of
which it invests more than 5 per
cent. is less than 40 per cent
Maximum of 5% of portfolio if
company market cap is less than
R2 billion, else 10%
3. Investment restriction on a
class of security i.r.o. equity
portfolios
A Sub-Fund may invest no more
than 10 per cent. of its Net
Asset Value in Transferable
Securities or money market
instruments issued by the same
body provided that the total
value of Transferable Securities
and money market instruments
held in the issuing bodies in
each of which it invests more
than 5 per cent. is less than 40
per cent
Maximum of 5% of amount in issue
if company market cap is less than
R2 billion, else 10%. An overall
limit of 15% of the aggregate
amount of securities in any one
class issued by a concern within
the same group as the manager
across all portfolios. An overall limit
of 24% of the aggregate amount of
securities in any one class issued
by a concern other that a concern
within the same group as the
manager across all portfolios.
4.Investment restrictions for
specialist funds eg. money
market portfolio or fund of funds
or feeder funds
This paragraph is not applicable
as the Foreign Scheme portfolios
are not specialist funds but
general equity focused.
Subject to certain limits prescribed
in regulation (Applicant must
Furnish detail regarding the
specific type of portfolio is
applicable)
** 5. Investment restrictions on
the use of derivative instruments
100% effective exposure restricted
for purposes of efficient portfolio
management only/no gearing
allowed
100% effective exposure restricted
for purposes of efficient portfolio
management only/no gearing
allowed.
** 6. Investment in listed
instruments
Up to 100% can be invested in
“Permitted Investments” (as
described in fund Prospectus).
90% of securities must be listed on
Exchanges having obtained full
membership of the World
Federation of Exchanges. Over the
counter derivative instruments that
are allowed: forward currency
swap, interest rate swap, exchange
rate swap and index swap.
1.Investment restriction of
instruments issued by
Government
2. Investment restriction on an
individual security i.r.o. equity
portfolios
Any investments not being
“Permitted investments” limited to
10% in total.
**7. Non equity securities (other
than issued by the Government)
Must comply with limits as
prescribed in Regulation and
Prospectus with Supplements.
Must comply with limits as
prescribed in Regulation
**8. Investment in unlisted
instruments
Maximum of 10% of portfolio
value.
Maximum of 10% of portfolio value.
Such instruments must be valued
daily based on a generally
recognised methodology and by a
person acceptable to trustee.
9.Investment of own resources
into the fund
No prescriptions. Scheme or
investment manger does not
invest own resources in its
portfolios.
Manager must invest 10% of own
resources in each fund; can be
limited to R1,000,000 maximum per
fund. The R1m may be reduced
with 10% for every R1m invested.
** 10. Borrowing
10% of Net Asset Value of Portfolio
on a temporary basis to meet
redemptions and for buying and
sale transactions.
10 % of the Value of the underlying
portfolio permitted to meet its
obligations in relation to
the administration of a scheme
relating to settlement of buying and
sale transactions and repurchase
or cancellation of participatory
interests.
Leveraging/Gearing
11.
No leverage/gearing allowed for in
portfolios as set out in each portfolio
supplement to the Prospectus
Leverage/Gearing not allowed
Markets/Exchanges
11.1
Listed
See Appendix 1 to the Prospectus
for complete list
11.2
See Appendix 1 to the Prospectus
for complete list
Not allowed
Full disclosure in Deed and a
notice to unit holders of change
OTC Markets**
90% of exchanges must have
been granted full membership of
the World Federation of
Exchanges, the rest must follow
due diligence guidelines as
prescribed by Regulation
** 12 Expenses/Charges
12.1
Costs to
investors
Full disclosure in latest
Prospectus
12.2
Charges against
income of the
portfolio.
Full disclosure in latest
Prospectus
13.
Determination of market
value of investments
See Prospectus for valuations of
assets
14
Risk factors
See Prospectus for full risk
disclosures
**15. Capped or not capped
Not capped
Brokerage, MST, VAT, stamp
duties, taxes, audit fee, bank
charges, trustee/custodian fees,
other levies or taxes service
charge and share creation fees
payable to the Registrar of
Companies
Fair market price, or as
determined by stockbroker
Not capped
** 16. Redemption (repurchase) Redemptions daily, details for
of participatory interests
redemptions are disclosed in the
Scheme Prospectus
17.
Independent
Trustee/custodian
** 18. Taxation of Portfolio
Legally obliged to redeem at same
day’s or previous day’s price as
determined in Deed
The Custodian and the
Trustee/custodian must be
Administrator of the scheme is
completely independent
within the same group of companies
(i.e. Citibank group).
No taxation of income in the
portfolio
No taxation
Interest and dividend portion
taxable in the hands of the
individual
No Irish interest or dividend (incl.
withholding) taxes applicable for
South African shareholders
Interest and dividends (dividend
withholding tax introduced on 1
April 2012) are taxable.
There is no distribution of income
for Sub-Funds of the scheme (i.e.
all income stay within the portfolio
as part of NAV)
Capital gains tax introduced on 1
October 2001
** 19 Taxation of unitholders
19.1
19.2
Income
- Dividends
- Interest
Capital gains
No Irish capital gains tax
applicable for South African
shareholders
South African shareholders are
subject to South African tax laws
regarding capital gains.
** 20. Interval at which
participatory interests are priced
Daily
Daily
21. Distributions
There is no distribution of income
for Sub-Funds of the scheme (i.e.
all income stay within the portfolio
as part of NAV)
All income distributed regularly or
reinvested at option of the investor
** 22. Switching
Allowed
Allowed – charges differ
** 23. Pledging of securities
(See 10)
The Directors have determined
that securities will not be pledged
for investment purposes
Allowed only for purposes of
borrowing (refer to borrowing in
par 10 above)
Allowed only for purposes of
short term borrowing.
** 24. Scrip lending
Although allowed for under
“permitted investments” the fund
will not enter into securities lending
transactions
Allowed, may not exceed 50% of
market value the portfolio, plus
other conditions as prescribed in
Deed.
The fund will not enter into
securities borrowing transactions
Not allowed
** 25. Certificates, if issued and
needed for redemption
Shares will be in non-certificated
and registered form.
Issued on request
26. Reporting to supervisory
authority
Requirement to report quarterly
and annually in addition to adhoc
reporting eg reporting of breaches
27.Inspection powers by
supervisory authority
Yes
** 28. Reporting to investors
Quarterly and annual audited
financial statements refer to
prospectus page 52 9.1
** 29. Legal structure if different
from trust
Open Ended Investment Company
30.Interest earned on funds
pending investment and
r edemption
No interest is earned on funds
pending investment and
redemption
** 31. Any other material
difference
Global Flexible Sub Fund may
invest in below investment
grade and unrated bonds
subject to issuer and other
investment restrictions limits
as per UCITS regulations.
Disclosed in relevant portfolio
supplement as required by
Ireland regulator.
Scrip borrowing
Quarterly and annually
Yes
Annually
Collective Investment Scheme,
whether trust based or Open
Ended Investment Company
Interest paid to clients