Private Model Share Portfolios vs Unit Trusts
A share portfolio is a tailored collection of individual stocks that gives investors partial ownership in companies listed on local or international stock exchanges. While primarily focused on equities, it can also include income-generating assets like bonds to improve diversification and stability. The portfolio is designed to align with your specific investment goals and risk appetite.
A model share portfolio is a pre-constructed, professionally designed share portfolio that reflects a specific investment strategy, theme, or risk profile. A well-balanced portfolio spreads risk across different industries and regions. This generally reduces the impact of poor performance in any one area.
At Overberg Asset Management, we pride ourselves on the consistent performance of our model share portfolios—carefully constructed by our investment team and Asset Managers to deliver strong, risk-adjusted returns across market cycles. Each portfolio reflects our deep market insight, disciplined research process, and commitment to helping clients grow their wealth with confidence. Whether you’re seeking growth, income, or diversification, our model portfolios offer a smart, structured path to achieving your financial goals.
A unit trust is a type of collective investment scheme where money from multiple investors is pooled together and generally invested in a diversified portfolio of assets—such as shares, bonds, property, or cash.
Each investor owns units in the trust, which represent a proportional share of the total fund. The fund is managed by portfolio managers who make investment decisions on behalf of all unit holders, aiming to meet the fund’s stated objectives (e.g., capital growth, income generation, or capital preservation).
There are over one hundred thousand unit trusts available across markets, and identifying those that are reputable, liquid, and consistently high-performing can be a complex and time-consuming task.
At Overberg Asset Management, we leverage deep market expertise and rigorous research to curate a focused selection of top-tier unit trusts. We essentially save you the effort, time, and choice fatigue when it comes to choosing the correct unit trust.
Direct ownership of individual shares.
Indirect ownership via a pooled investment fund.
Share prices change when traded, which could happen multiple times a day.
Units are valued once a day.
Professionally constructed, actively managed, or guided.
Professionally managed by fund managers.
Full visibility of each stock and its performance.
Holdings disclosed periodically; less granular.
Can be tailored to investor preferences and themes. In Overberg Asset Management’s case, for example, we would give you access to London Stock Exchange-listed investment companies.
Limited; investors buy into a predefined fund strategy.
Private share portfolios are segregated and unique.
Unit trusts are collective investment schemes, which means investors have the exact same exposure.
Depends on portfolio design, but often diversified across geographies, sectors and asset classes.
Depends on the unit trust objectives, but often diversified across geographies, sectors and asset classes.
High: shares can be sold individually.
High: units can be redeemed, usually within a few days.
Often higher, varies by Asset Manager.
Lower entry point; accessible to most investors.
CGT on the sale of shares.
CGT on the sale of units.
Dividends and/or interest can be distributed to investors. Income generation is dependent on client requirements.
Dividends and/or interest can be distributed to investors. Income generation is dependent on the fund criteria.
Asset management fees, brokerage fees, and platform/custodian fees.
Annual management fees, administration fees, platform fees, and possibly a performance fee.
Depends on investment objectives.
Depends on investment objectives.
Potentially higher if well managed; more responsive to market changes.
More stable; performance depends on the Fund Manager and strategy.
Investors who seek direct investment in companies, transparency, diversification, and professional management.
Investors seeking simplicity, diversification, and professional management.
What are your financial goals?
Are you looking for long-term growth, income generation, or a combination of both?
How much capital do you have to invest?
- To access the expertise of a professional asset manager, investors typically need to commit a minimum of R1 million, or the equivalent in foreign currency, into a managed share portfolio. This threshold opens the door to tailored investment strategies and expert oversight, enabling the desired diversification across asset classes, sectors and geographies.
- Holding a unit trust portfolio valued at R1 million or more, or the equivalent in foreign currency, can enhance diversification compared to investing a smaller amount in a single unit trust. A larger capital base enables broader exposure across multiple asset classes, sectors, and geographies.
Do you want a level of transparency?
- Model private share portfolios offer enhanced transparency, giving investors access to in-depth information about each individual holding. This allows for closer monitoring and a clearer understanding of how specific assets contribute to overall performance.
- In contrast, unit trusts provide a more passive investment experience, with unit trust managers providing limited information regarding the underlying investments.
Overberg Asset Management: A Partner in Your Investment Journey
Both private model share portfolios and unit trusts have their place in a well-rounded investment strategy. By understanding the differences and evaluating your financial situation, you can create a portfolio that balances risk, returns, and flexibility. Speak to a Wealth Manager to determine the right mix for your goals and take the next step toward financial freedom.
At Overberg Asset Management, we are committed to helping you build a diversified portfolio that aligns with your unique needs. Whether you opt for a private model share portfolio, a unit trust, or a combination of both, our Wealth Managers will guide you every step of the way.
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