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Business Unit Trust
Collective investment schemes
What is a Business Unit Trust?
Business Unit Trusts, or mutual funds, are pooled investment schemes that amalgamate funds from various investors to build a diversified asset portfolio, including stocks, bonds, and securities. These vehicles aim for capital growth or income over time, based on the fund’s goals and asset distribution. Businesses investing in unit trusts can achieve higher returns than traditional savings, aiding in capital growth, expansions, or covering unexpected costs. In South Africa, unit trusts offer benefits like professional management, diversification, and liquidity, making them appealing for businesses looking to enhance capital, generate income, or diversify investments, thus maintaining a competitive market stance.
How would a Business Unit Trust benefit me?
Diversification
Business Unit trusts offer instant diversification by spreading investments across various asset classes and sectors, reducing the risk of significant losses due to market fluctuations. This diversification can lead to more stable returns and protect businesses from the adverse impacts of economic downturns or underperforming assets.
Liquidity
Business Unit trusts offer a high level of liquidity, enabling businesses to access their funds relatively quickly and easily when needed. This can be particularly advantageous for businesses that may require capital for unforeseen expenses, opportunities, or other financial obligations.
Range of Investment Options
Business Unit trusts offer a wide variety of investment options, catering to different risk appetites, financial goals, and investment time horizons. Businesses can choose from funds that focus on capital growth, income generation, or a combination of both, depending on their specific financial objectives.
Professional Management
Business Unit trusts are managed by experienced investment professionals who possess the expertise and resources to conduct in-depth market analysis and make informed investment decisions. This allows businesses to benefit from professional management without needing to dedicate time and resources to managing their investments actively.
Benefits of Having an
Mont Blanc Financial Services (MBFS) Financial Advisor:
01
Comprehensive Approach:
MBFS advisors go beyond basic financial products. They take a holistic view of your situation, considering short-term insurance, employee benefits, risk management, and even investment options. This comprehensive approach ensures your financial plan addresses all your needs.
02
Technology & Innovation:
MBFS prides itself on being a "Fresh-Tech" ™ company. Your advisor will leverage modern tools and resources to deliver efficient service and provide you with up-to-date financial information.
03
Client-Centric Focus:
Rooted in their core value "We Care" ™ , MBFS advisors prioritise building strong relationships with our clients. They act as partners, understanding your unique goals and tailoring solutions to achieve them.
04
Peace of Mind & Security:
With MBFS's focus on "Getting You Claims Ready" ™ , our advisors can ensure you have the right insurance coverage in place. This proactive approach can give you peace of mind knowing you're protected financially in case of unforeseen events.
Multi-Manager Investments
Mont Blanc Financial Services also offers its unique range of Multi Manger Funds under the MBFS label structured according to inflation-beating returns. These portfolios offer some of the most cost-effective and lowest fees in the market.
Frequently Asked Questions
What is Business Unit Trust, and how does it benefit businesses?
Business Unit Trust protects a business from financial losses in the event of the death, disability, or critical illness of a key employee. This ensures the business can continue operating smoothly and financially secure the deceased/disabled individual's dependents.
Who are considered "Key Employees" in this context?
Key employees are individuals whose absence due to death, disability, or critical illness would significantly impact the business's operations, profitability, or expertise. This could include top executives, specialized professionals, or individuals with vital industry knowledge.
What types of cover are typically included in Business Unit Trust?
This insurance typically offers a death benefit paid to the business upon the key employee's death. It might also include disability benefits to replace lost income if the employee becomes incapacitated, and critical illness benefits to support the employee financially if diagnosed with a major illness.
How is the beneficiary determined for this type of insurance?
The beneficiary of the insurance policy is typically the business itself. The payout can then be used to cover various expenses, such as hiring and training a replacement, maintaining business continuity, or assisting the deceased/disabled individual's dependents.
What other clients also insured
