To our valued Clients
We are pleased to share an exciting and positive development for our valued clients at Resolute Wealth Management. In partnership with Morningstar Investment Management South Africa (“Morningstar”) and Prescient Management Company (“Prescient”), Resolute Asset Management is launching its own unit trusts in the form of Fund of Funds. This initiative will enhance the investment outcomes for our clients by providing more flexibility to actively manage our client’s investments and access a broader range of investment opportunities. This letter outlines further details on the Fund of Funds and the benefits thereof, what it means for you, and whether any action is required from you as our client.
Our relationship with Morningstar spans more than a decade, and we were proud to be among their founding advice partners in South Africa. As a globally recognised leader in investment research and asset management, with approximately $370 billion in assets under advisement and management globally (as of 31 March 2026), Morningstar has been an important partner in supporting our ability to deliver professional, disciplined, research-driven investment solutions for our clients.
As markets grew more complex and regulation continued to evolve, we established Resolute Asset Management in 2014 to provide professional investment portfolio management solutions for our clients. Working closely with Morningstar, this enabled us to further strengthen our investment capability and governance framework in the best interests of our clients.
The developments outlined in this letter represent the next step in our continued evolution to enhance how we manage investments on your behalf.
What we are launching
Resolute Asset Management is launching five local Fund of Funds, through the conversion of six of our existing model portfolio solutions on the Ninety One and Allan Gray platforms. The Fund of Funds span a range of risk profiles and have been designed specifically to meet the needs of our clients. The table below maps the conversion of the six model portfolios to the five Fund of Funds. As indicated, two portfolios will be converted into one Fund of Funds.
| Existing model portfolio | Fund of Funds |
| Resolute Wealth Conservative Portfolio | Resolute Conservative Prescient Fund of Funds |
| Resolute Wealth Balanced Portfolio | Resolute Balanced Prescient Fund of Funds |
| Resolute Wealth Growth Portfolio | Resolute Growth Prescient Fund of Funds |
| Resolute Wealth Worldwide Feeder Portfolio | Resolute Global Equity Prescient Fund of Funds |
| Resolute Wealth Flexible Portfolio | Resolute Flexible Prescient Fund of Funds |
| Resolute Wealth Tax Free Portfolio |
Each Fund of Funds will continue to be overseen by the Resolute Asset Management Investment Committee in partnership with Morningstar, drawing on Morningstar’s global network of more than 400 investment and research professionals across 32 countries. Prescient Management will serve as the management company for each of the Fund of Funds, assisting with the operation and administration of the Fund of Funds. Prescient Management is a global, full-suite fund services firm with over two decades of specialist expertise and more than $77 billion in clients’ assets under administration and management.
What this means for you
At present, your investments in the above Resolute Wealth portfolios are in the form of model portfolios, spread across a selection of underlying unit trusts. At launch, the new Fund of Funds will provide a single, unified fund structure whereby your investment portfolio is held through a single unit trust, which in turn holds the same underlying unit trusts that make up the model portfolio. This will provide a more efficient way to manage your investments, while preserving the core investment philosophy you know. In summary, the difference between your existing model portfolio and the new Fund of Funds is:
- Model portfolios: Your investment portfolio is spread directly across underlying unit trusts (funds), each in your name. When the investment team rebalances or makes changes to your investment portfolio by selling and/or buying the underlying unit trusts, those trades happen in your account and can trigger capital gains tax (CGT) events in your name.
- the Fund of Funds: Your investment portfolio is in one unit trust (fund), which in turn holds the underlying unit trusts. All trading and rebalancing of the underlying unit trusts happens inside the Fund of Funds — not in your personal account — meaning no CGT events are triggered each time the portfolio is adjusted.
Key benefits of the Fund structure
- Tax efficiency: No CGT implications when the investment team trades or rebalances within the Fund of Funds.
- Improved flexibility: Greater agility to adapt to changing markets through active asset allocation across asset classes, sectors, and funds.
- Broader investment universe: Access to a wider range of underlying funds and strategies beyond those available for model portfolios, including ETFs.
- Daily trading efficiency: The fund structure enables daily trading, removing the constraint of trade periods applicable to model portfolios.
- What stays the same: Morningstar’s fundamental, valuation-driven investment process, the diversification approach, and the investment team remain unchanged.
Fund management fees
The management and administration of the Fund of Funds structure will require an increase in the Management Fee payable to Prescient and Resolute Asset Management of between 0.13% and 0.15% (excluding VAT) of the value of assets under management per annum. However, this additional fee is expected to be offset by the aforementioned benefits, namely tax efficiencies and better expected performance, as well as cost rebates from the underlying asset managers.
The transition: tax roll over relief
To move your investments from the current model portfolios into the new Fund of Funds without triggering a CGT event, Resolute will make use of a Section 42 asset-for-share transfer under the Income Tax Act. Under this mechanism, your assets are transferred in exchange for units in the Fund of Funds, with no CGT crystallised at the point of transition. The base cost (for CGT purposes) of your investment in the model portfolio will be rolled over across to your investment in the Fund of Funds and remain unchanged. This offers a meaningful advantage over a conventional sale-and-reinvestment process, which would ordinarily trigger an immediate taxable event.
The transition will be managed in full by Resolute and the relevant platforms (Ninety One and Allan Gray). There will be a transaction freeze period impacting the above-mentioned model portfolios on the two platforms in the lead up to the Section 42 transfer to ensure a seamless process. No additional action is required from you in order to participate in the Section 42 process.
What type of investments will initially be transitioned from the model portfolios into the Fund of Funds
Unless you elect to opt out (as per below), initially all of your investments within the above-mentioned six model portfolios on the Allan Gray and Ninety One platforms will be transitioned into the Fund of Funds, except for investments held through sinking funds and endowment policies. This means that direct investments in unit trusts, as well as investments through retirement annuities, Living Annuities, and preservations funds, within the above-mentioned model portfolios will be transitioned into the Fund of Funds.
Your right to opt out
Participation in the Section 42 transfer will be the default course of action for all eligible assets. If, however, you would prefer to remain in the current model portfolio structure and not transition into the Fund of Funds, you are welcome to opt out.
If you wish to opt out, please notify your financial advisor in writing, or email us at infojhb@resolutewealth.co.za, by no later than 19 August 2026.
If no opt-out instruction is received by this date, your eligible assets will automatically be included in the Section 42 transfer process.
What will happen to the remaining model portfolios
The remaining model portfolios on the Ninety One and Allan Gray platforms, as well as all model portfolios on the Glacier and Momentum platforms, will continue as is and will not be converted into a Fund of Funds structure. They will continue to be overseen by Resolute Asset Management in partnership with Morningstar.
Questions
We understand that changes to your investment arrangements may raise questions, and our team is here to help. Please do not hesitate to reach out to your financial advisor. We will be communicating further information in the lead-up to the Fund launch and will keep you fully informed throughout the process.
Disclaimer
Resolute Asset Management (Pty) Ltd is an authorised financial services provider [FSP number 48269]. Collective Investment Schemes in Securities (CIS) should be considered medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. There are no guarantees. Please note that there are risks involved in buying or selling any financial product. A Fund of Funds is a portfolio that invests in portfolios of collective investment schemes, which levy their own charges, which could result in a higher fee structure for these portfolios. Prescient Management Company (RF) (Pty) Ltd is approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information please go to www.prescient.co.za.
