Join our Mailing list!
Sign up to get all the latest financial news and business updates.
Sign up to get all the latest financial news and business updates.
The simple answer is fees. Alexforbes Invest’s ONEfee model (explained below) helps to minimise the Effective Annual Cost (“EAC”) of the investment. Minimising fees helps to maximise the after-costs growth of your Retirement Annuity. The diagram on the left provides a generalised illustrative example of the effect of cost savings on investment performance – a reasonable cost saving makes a huge difference!
Effective Annual Cost (“EAC”) is an industry-wide standardized disclosure methodology that can be used by investors to compare charges and their impact on investment returns across most retail investment products. The EAC enables investors to make better informed decisions when assessing various regulatory wrappers (such as Retirement Annuities). You can find out more about EAC and how it is calculated on the Association for Savings and Investments South Africa’s website here.
To obtain the EAC on your existing RA, you can simply request the Effective Annual Cost from your current RA provider, alternatively we are also happy to assist but will need a signed Letter of Authority from you.
Alexforbes Invest has taken the unusual step of ensuring that the investment management fees1 (see note below) for its underlying funds are invoiced directly to Alexforbes Invest, thereby excluding this cost from the EAC that eats away at investor returns. The Company’s ONEFee model is novel because they deduct only one fee that covers the entire investment process, including advice, investment management, and administration. This simplifies and makes it more transparent for clients.
The range of CoreSolutions funds is designed to ensure that you meet your investment goals. The Cautious, Stable, Moderate and Aggressive index funds are all passively-managed, rules-based portfolio designed in conjunction with CoreSolutions to track their various benchmarks. The funds all have one thing in common – Total Expense Ratios of 0% (for the reasons above ). The funds are rounded off with a money market fund run by Granate.
Your future deserves careful planning and smart investing. With the right RA solution, you can enjoy tax benefits today while building wealth for tomorrow. Let Cratos Asset Management guide you — secure your retirement with confidence.