Frequently Asked Questions
A pooled fund does not require FSCA approval and 27four Life is also not registered with the FSCA. This allows for quick and easy creation of pooled funds. To create your own branded pooled fund you would need a CATII License with approved subcategories:
- Long-term Insurance subcategory:
- Pension Fund Benefits
27four Life through an Investment Management Agreement will appoint the CATII manager to manage the pooled fund on our balance sheet.
Setting up a unit trust requires an application to the FSCA to launch a new CIS. Standard documentation, which include the below, is required to be completed and submitted to the Regulator.
- Application letter to have new fund approved
- Business plan of the appointed manager
- Feasibility study of the new fund
- Manager TCF Policy
- Supplemental deed of the new fund
- Investment Management Agreement
The application to the Regulator has applicable fees set out which is payable on submission. The process of regulatory approval can take up to three months once submitted to the FSCA.
A life-pooled portfolio is a fund created on a linked-life insurer’s balance sheet where multiple policyholders can invest in. The fund/pooled portfolio is managed by licensed third-party asset managers and structured per an agreed-on mandate. Pooled portfolios are attractive funds for institutional investors such as retirement funds as they can be constructed and managed with very little limitations on the underlying asset classes within the fund. Pooled portfolios cannot be invested into directly. Investors would need to purchase a policy or wrapper (RA, Preservation Fund, etc.) to invest into a pooled portfolio.
A collective investment scheme or more commonly known as a unit trust is a fund that is priced, bought, and sold in units that represent a mixture of the securities underlying the fund. Unit trust investments have proved to be the safest investment vehicles as it is governed by the Collective Investment Scheme Control Act. Unlike a life-pooled portfolio, investors can buy units directly in a unit trust without having to purchase a policy or product which includes RA, preservation funds, etc. 27four Collective Investments appoints approved third party CATII managers on our Manco to manage CIS portfolios. Each fund manager will use the unit trust fund to invest in various securities within a specific or selection of asset classes.