The current charges for the Sanlam Tax-free Investment consist of the administration charge plus the Investment Management Charges. The current charges are:
Administration charge This fee is a percentage of the fund value. The charge is calculated on a monthly basis, which means the percentage is divided by 12 to calculate the monthly amount. This charge is subject to a minimum rand amount that will be increased gradually over 24 months from R0 per month on the start date of the plan to R42 per month if you invest in the default fund or R50.50 if you add the ability to select your own funds. This current minimum rand amount will be increased from time to time to allow for inflation.
The graph below shows how the percentage will reduce as your fund value increase:
Investment Management Charge
An asset manager charges fees for investment research and selecting the underlying assets for a specific investment fund. These fees are taken into account in the calculation of the daily unit price of the investment fund. The published performance figures of the investment fund are therefor net of these fees.
The Investment Management Charge for the default Satrix Life Time Investment Option is 0. 7% per year for the underlying funds.
If you select your own funds, the Investment Management Charge of your plan is the weighted average of the Total Investment Cost of the selected investment funds.
The Total Investment Cost for each of the available investment funds is shown on the fund selection table and in the fund fact sheet for that fund - View Fund Fact Sheets
There will be no transaction charge for any of the following:
You will be charged R 300 to add the ability to select your own funds to a plan that currently invests in the default Satrix Life Time Investment Option.