beneficiary fund example

Beneficiary funds – stretching benefits

The graph illustrates an example of a member, aged five years at inception, with an original capital investment of R100 000. The funds are invested according to the board approved asset allocation model and payments from the fund include:

  • Regular income payments to the guardian until the child reaches the age of majority
  • Annual capital payments for education related expenses
  • All fund costs
  • A final termination benefit of approximately R115 000 payable in a lump sum to the member upon reaching the age of majority.

Note: The above example is based on Fairheads Umbrella Beneficiary Fund’s approved asset allocation model which is reblended annually. Historical investment returns have been used to project future investment returns (money market 12 month performance, income fund 36 month performance, stable funds 36 month performance and balanced fund 60 months performance). The example includes annual capital payments equivalent to 5% of capital introduced, income payments of 5% of capital introduced (paid monthly) and includes all fees and charges.