Sygnia firmly believes that South Africans are currently being charged too much when it comes to investment fees and savings products.
Sygnia firmly believes that South Africans are currently being charged too much when it comes to investment fees and savings products.
This is particularly true given the current investment environment. We are focused on reducing these costs and currently offer the lowest cost savings and investment products in South Africa by charging an all-in-fee of 0.4% per annum (including VAT) with no switching, transacting or withdrawal penalties. There are no hidden fees. This is fairly revolutionary in the South African financial services industry, has the support of the regulators and has positioned Sygnia as a ‘market disruptor’.
Right now you are being charged:
Fees by asset managers for managing your money.
Fees by administration platforms for the provision of savings products and access to unit trusts.
Fees by financial advisors for the provision of financial planning services.
We believe that consumers should be made aware of all the hidden costs they are currently paying and we would like to bring some transparency into the industry.
The National Treasury is also very committed to reducing the same fees and is introducing legislation to that effect. To quote their recent paper:
A regular saver who reduces the charges on his retirement account from 2.5% of assets each year to 0.5% of assets annually would receive a benefit 60% greater at retirement after 40 years. For someone who is a member of a preservation fund for 30 years, this increases to 80%.
If each party takes just 1% per annum, 3% disappears every year before your money is even put to work for you.
It is time to change that.
It is time your money starts to work for you again.
With Sygnia you can:
Choose a low, medium or higher risk-profiled investment strategy designed and managed for you by Sygnia with all asset classes managed on an index-tracking basis.
Customise your investment strategy to your particular requirements by choosing from a variety of index-tracking unit trusts.
Invest directly or through a range of savings products, such as retirement annuities, living annuities and preservation funds.
We charge an all-in-fee of 0.4% p.a. (including VAT) for all of the above options.
There are no switching, transacting or withdrawal penalties. There are no hidden fees.
You save from the day you invest.
A 2.5% p.a. fee means that your asset managers have to consistently outperform the market index by a minimum of 2.5% p.a. before you, as an investor, do so on an after-fee basis. An index-tracking fund, at 0.4% p.a., sprints out of the starting blocks just on the basis of fees.
The difference between investing R200 000 for just five years at a fee of 2.5% p.a. versus 0.4% p.a. translates to an extra benefit of R31 371 to you (this assumes a modest market return of 12.0% p.a.). This will cover the cost of one year at university.
The difference over a 10-year investment period is a massive R103 693. You can pay for your child’s 3-year university degree with the difference.
Future investment returns are unpredictable, investment fees are known and completely under your control.
It is time for fees to fall and for your investments to grow.