Participatory Interests

Participatory Interests are issued by Collective Investment Schemes in Property (also known as Property Unit Trusts). Property Unit Trusts are similar to other types of unit trusts in that investor funds are pooled together and then used to purchase a portfolio of assets, in this case, property assets.

Benefits

• A regular stream of income. Property Unit Trusts (PUT's) generally distribute income twice a year
• Stringent investor protection. PUT's are regulated by CISCA and the JSE which provides stringent investor protection
• PUT's are accessible, allowing investors to invest in a diverse portfolio of properties without having to manage the properties themselves
• Avoid double taxation. Income distributions are not taxed in the trust but taxed in the hands of the end investor
• Participatory Interests are traded like regular shares on the JSE and are therefore more liquid than immovable property
• Smaller initial margins - participatory interests require smaller initial outlays relative to immovable property

Who should use this product?

• Investors looking to gain exposure to the property market without paying large initial outlays
• Investors with a long term investment horizon who require an income stream from their investment

How to use this product?

• Participatory Interests trade like regular shares and can be purchased through a stockbroker.