The term “institutional risk” refers to the likelihood of a client losing money by doing business with Amity Wealth. “Market risk” refers to any investment that is tied to the fluctuations of the equity markets. Market risk is managed and reduced as described in the section on our investment philosophy and strategy.

We always ensure that clients investing in Amity Wealth’s unit trusts never undergo institutional risk. This is achieved, firstly, by complying with all regulations and with both the letter and the spirit of the law. Our funds are registered with the Financial Services Board and we adhere to the rules set out by the Association for Savings and Investments of South Africa. Secondly, the role players in the relevant fund are selected to ensure that no one single party performs all the required tasks, and that only reputable institutions are used.



The diagram above illustrates the composition of the Amity Wealth’s unit trust Funds of Funds. Metropolitan Asset Management is the managing company of our unit trusts. This means that our funds are operated under their licence and that they ultimately take responsibility for the management of our funds.

The trustee of the Amity funds is Standard Bank Trust, which holds the clients’ money and investments in trust. JP Morgan is our fund administrator responsible for capturing each transaction, creating new units and valuing the units on a daily basis. PricewaterhouseCoopers is the auditor of the funds.

In our selection of the underlying funds we ensure that we deal with reputable asset management companies that investors also know are reputable and trustworthy.

Amity Wealth also holds indemnity insurance.

Metropolitan

Amity Wealth and Metropolitan Collective Investments have entered into a strategic partnership, approved and registered with the Financial Services Board of South Africa. In terms of this arrangement, Amity Wealth invests and manages corporate and private individuals’ funds on the Metropolitan Collective Investments Platform, with the full technical and administrative support of Metropolitan multi-managers.