Unit Trusts - Income

If you want to draw an income from your investment portfolio, Old Mutual’s range of unit trusts offers you access to a selection of income-generating investments, each with their own unique investment aim. View our Classic Investment Collection, or our full range of over 40 unit trusts to build an income generating unit trust portfolio. Always remember that in order to draw a sustainable income you need to continue to grow your capital, which means that you need equity exposure too.

Income types

There are three types of unit trust-based income, and some unit trusts, such as Old Mutual Real Income Fund, offer a best-of-both-worlds solution by combining options.

Interest income: This is the result of investing in assets such as money markets and bonds. This income is taxed according to your applicable income tax rate (after your tax exemptions are exhausted). Unit trusts that pay interest income are generally lower risk and offer little to moderate growth, but good capital protection.

  • Old Mutual Money Market Fund
  • Old Mutual Bond Fund
  • Old Mutual Income Fund
  • Old Mutual Enhanced Income Fund

Dividend income: Dividends are the portion of a company’s profits that are paid to shareholders, usually twice a year. Dividend income is currently tax free in your hands.

It is the equity portion of a unit trust that pays a dividend income, if the companies in which it has invested have opted to pay dividends. Most notably in our range of unit trusts, Old Mutual High Yield Opportunity Fund has consistently offered investors generous dividend income payouts.

Rental income: paid by unit trusts that invest in listed property, this is also taxed according to your income tax rate.

We offer the Old Mutual SA Quoted Property Fund for investors who are bullish on this sector. In addition many of our equity and asset allocation unit trusts also hold part of their portfolio in property.

Retirement Income

If you are nearing retirement and are looking for an additional source of retirement income, you might like to invest a portion of your retirement saving in Old Mutual Unit Trusts Living Annuity - a unit trust-linked living annuity.

How to invest: If you know which unit trusts are right for you, you can invest online right now, or you can download an investment form.