Top performing global index fund now available through a feeder fund in SA

At the start of this month, Boutique Collective Investments (BCI) launched a new unit trust that feeds into the GinsGlobal Equity Index fund. That portfolio tracks the MSCI World index, with dividends reinvested.

The GinsGlobal Global Equity Index fund itself has been available to South African investors since 2001. It is one of the 20 best performing portfolios registered for sale in this country over the past decade, having returned 16.3% per year in rands according to Morningstar.

However, making it available through a feeder fund will make it accessible to a wider market. It can be found on both the Glacier and Momentum lisp platforms.

The BCI GinsGlobal Global Equity feeder fund will have an annual fee of 0.15%, with an expected total investment charge (TIC) of 0.43%.

The Mauritius-domiciled GinsGlobal Global Equity Index fund has shown extremely low tracking error over the past decade. According to its latest fact sheet, it has outperformed its benchmark index by between 0.08% and 0.14% over every period from one year to 10 years, gross of fees.

The fund’s effective annual cost is 0.19%.

GinsGlobal MD Anthony Ginsberg told Citywire in a written response to questions that the fund is sub-advised by State Street Global Advisors, and benefits from their strong global indexing capabilities.

‘These include very efficient use of global tax treaties – helping to further reduce any tracking error. This is particularly important with regards to global dividend payments received.’

He added that: ‘it is highly tax-efficient as it is a rollup fund, so any dividends are automatically reinvested in the fund resulting in a higher NAV.’

Dividends are typically reinvested as soon as they are received, which is mostly quarterly.


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