10X Investments has announced that it will be reducing the fees on new investment policies to zero for most of the year.<\/p>\n
In a statement released on Wednesday (2 January), the asset manager said clients who started a new retirement policy in the month of January would start paying 10X\u2019s fees only in October.<\/p>\n
Using the monthly returns in the 2017 Alexander Forbes Large Manager Watch (LMW) as a reference, the 10X fund\u2019s annualised return of 11.3% over the decade is 0.8% above the large fund manager average before fees.<\/p>\n
“We\u2019ve consistently beaten the country\u2019s large manager average. When you factor in the average 2% in fees that we save our clients those returns look even better,” said Chris Eddy, head of Investments at 10X.<\/p>\n
“The difference compounded over a 40-year saving period really is the difference between a dignified retirement and a dismal one.”<\/p>\n
Eddy said that it is important to focus on those aspects of your retirement plan that you have control over.<\/p>\n
He recommends that retirement savers diligently contribute 15% of their salary on a monthly basis, invest in a portfolio that is appropriate for their time horizon (which for most retirement savers would be a high equity portfolio), and keep fees as low as possible.<\/p>\n
“In an environment of heightened uncertainty, no one can realistically predict what the market will return over the next year,” he said.<\/p>\n
“The only thing that is guaranteed with any certainty is the fees that you pay.”<\/p>\n
The company\u2019s fee-free promotion applies to new retirement annuities, living annuities and preservation funds and is open to all individual investors.<\/p>\n
The asset manager signed a total of R300 million of new business during its fee-free promotion last January, which means a potential saving of almost R3 million in fees for clients, it said.<\/p>\n