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Financial Planning
08 minutes

Different Ways to Access the Same Unit Trust Portfolio

Investors can simplify their financial planning by accessing the same underlying unit trust portfolio through multiple vehicles, from retirement annuities and preservation funds to TFSAs and direct investments. Perspective Investment Management outlines how each structure supports different goals, tax treatments, and stages of an investor’s journey.
Written by
James Steere
Published on
December 3, 2025
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Investors often want to achieve multiple financial goals — such as saving for retirement, growing discretionary wealth, and making use of tax-efficient investment options, without complicating their portfolio. The good news is that the same underlying unit trust portfolio can often be accessed through a range of different investment vehicles, each tailored to specific goals and tax treatments.

By way of example: Perspective offers investors this flexibility through the Perspective Balanced Prescient Fund and the Perspective Executive Equity Prescient Fund, which are available across a variety of investment structures.

Please note that this is not financial advice, and that Perspective is a discretionary fund manager that does not provide financial advice. If you are in need of financial advice, we recommend that you work with a reputable FSCA registered independent financial advisor.  

Investment Vehicle Options Explained

Tax-Free Savings Account (TFSA)

Both our Balanced Fund and our Equity Fund are eligible for use within a TFSA, in large part because they do not charge fund investors any performance fees.
This TFSA option allows South African investors to earn returns free of tax on both distributions and capital gains.

  • Annual limit: R36,000 per tax year
  • Lifetime limit: R500,000
  • Excess contributions: Subject to tax penalties

Investors can start a new TFSA investment with Perspective or transfer an existing one.

“The same underlying fund can meet very different goals, depending on the vehicle you use to access it.”

James Steere
Head of Operations at Perspective Investment Management

‍Direct Investment

Investors can access both funds directly, providing maximum flexibility with no restrictions on purchases or withdrawals.
However, unlike retirement or tax-free products, direct investments do not carry any tax benefits, and capital gains tax (CGT) will apply when units are sold or redeemed.

Retirement Savings

Our Balanced Fund complies with Regulation 28 of the Pension Funds Act, making it suitable for use within:

  • Retirement Annuities (RA) via the Prescient Retirement Annuity Fund
  • Pension and Provident Preservation Funds via the Prescient Preservation Funds

Benefits of Retirement Investments

  • Tax-Deductible Contributions: Contributions to an RA reduce taxable income.
  • Tax-Free Growth: No tax on interest, dividends, or capital gains while invested.
  • Compounding Effect: Tax-free compounding enhances long-term returns.

Considerations

  • Limited Access:
  • One-third of contributions go into a savings pot, accessible once per tax year and taxed as income when withdrawn.
  • Two-thirds go into a retirement pot, which is locked until retirement and must fund an annuity.
  • Existing retirement savings can also be transferred into the Perspective Balanced Fund via the Prescient RA or Preservation Funds.
  • Additional contributions cannot be made to preservation funds after transfer.

Upon retirement, investors can use the Balanced Fund to fund a Living Annuity.

At retirement, investors can withdraw up to one-third of their accumulated retirement savings as a cash lump sum.
The remaining amount must be used to purchase a living annuity, which provides an income during retirement.

Regulation 28 does not apply to living annuities, giving investors the flexibility to select either:

  • Perspective Balanced Prescient Fund, or
  • Perspective Executive Equity Prescient Fund as the underlying investment portfolio.

Example: Using Multiple Vehicles for the Same Portfolio

An investor may wish to:

  • Invest for long-term growth,
  • Save for retirement, and
  • Maximise tax efficiency — all while staying invested in the same underlying portfolio.

This can be achieved by investing in the Balanced Fund through three distinct “pots”:

While each pot invests in the same underlying fund, they are governed by different rules, purposes, and tax treatments. This structure allows investors to align their investments with both their short-term goals and long-term retirement planning in a simple, coordinated way.

20 Years of Covering the Gaps That Matter

At X’S Sure, we believe insurance should feel lighter. That’s why, for two decades, we’ve been specialising in Value-Added Products (VAPS) that remove the unexpected excess burden — on vehicles, buildings, and contents. Our solutions are designed to give clients peace of mind when life happens. With our trusted broker network and direct client division, we’ve built a reputation for being innovative, reliable, and always one step ahead.

XS Sure (Pty) Ltd is an authorised financial service provider, FSP number 21101.

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