Sygnia Investment Policy

Advantages 

• Flexibility to make additional contributions.

• All growth is taxed within the policy, so all proceeds are net of tax.

• Discretionary savings product that enables saving in a more tax-efficient manner (particularly suited to investors with a marginal tax rate higher than 30%, as the tax rate applicable within an endowment policy is the average tax rate payable by the insurer).
  

Limitations 

• You may not transfer this investment to another insurer or transfer another insurer’s policy into the Sygnia Investment Policy.

• You may make additional contributions to the Sygnia Investment Policy at any time during the first five years, subject to our minimum investment limits. If the contributions exceed 120% of the greater of your annual contributions in the prior two-year period, your investment will enter an extended restriction period of five years from the date the contribution was made.

• During the five-year restriction period, you may make one loan and one surrender.

• The maximum amount you may withdraw is the lesser of: your contributions during the restriction period plus 5% per annum compound interest; or the market value of the investment account, less fees and charges.

• Provided it is more than R2 500, any remaining balance must stay invested until the restriction period ends. After five years, or at the end of any applicable extended restriction period, you may withdraw part or all of your capital as you wish.

The Sygnia Investment Policy offers tax benefits to higher income tax payers:

• All growth is taxed within the policy.

• For individual investors, interest and net rental income is taxed at a flat rate of 30%.

• Capital gains are taxed at 12% and dividends at 20%.

• Sygnia is responsible for the payment of all taxes on behalf of investors.

• You will receive all proceeds net of tax.

Sygnia unit trust and unitised life funds
No administration fees apply on Sygnia unit trusts and unitised life funds.

All externally managed unit trust funds
Administration fees are charged as follows when you are invested in external-manager unit trusts.

ETFs and ETNs
Administration fees are charged as follows when you invest in ETFs and ETNs on the Sygnia Alchemy Platform.

Minimum R500 per month. Of this amount, the minimum investment amount in any ETF must be R250.

* 0.40% (excl VAT) is levied on the proportionate value of the external-manager funds below R2 million.

** 0.20% (excl VAT) is levied on the proportionate value of the external-manager funds above R2 million.

*** 0.20% (excl VAT) is levied on the proportionate value of the external-manager funds above R10 million.

A separate safe custody fee of 0.03% (ex. VAT) per annum applicable to ETFs will be charged.

Note: We consider all your investments when assessing the R2 million and R10 million threshold, including your investments in Sygnia funds. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request, or online at www.sygnia.co.za.

Please note: While Sygnia does not charge any administration fees in respect of its own funds, we consider all your investments when assessing the R2 million threshold, including your investments in Sygnia funds. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request, or online at www.sygnia.co.za.

Investment management fees
These vary widely across the Sygnia Alchemy fund range. For a detailed breakdown of fund-specific fees, please refer to Sygnia Alchemy Funds on our website.

Financial advisor fees
These are negotiable with your financial advisor within the following parameters:
Initial fee: Maximum of 3% (excl. VAT) deducted prior to investment
Annual fee: Maximum of 1% per annum (excl. VAT).
If an initial fee in excess of 1.50% is deducted, the annual fee is limited to 0.50% per annum.

• Copy of South African green barcoded ID/ South African Smart ID Card, birth certificate (if minor) or valid passport (if a foreign national).

• Proof of residential address not older than 3 months.

• Proof of bank details not older than 3 months.

• Proof of deposit/transfer into the relevant Sygnia bank account.