Sygnia Has New Fees

ADMIN: CHARGE ON UNIT TRUSTS, ETFS FIRST SINCE LAUNCH 11 YEARS AGO

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Sygnia will introduce an administration fee from 9 April on all of its unit trusts and exchange-traded funds (ETFs) for the first time since launching 11 years ago.

It has never charged a fee for administration, but says this fee, for using its platform, has become necessary because it can no longer absorb costs related to providing its service.

It has always charged management fees on all but a tiny amount of its funds, and its total expense ratio (TER) has generally been one of the lowest in the industry.

For its R7.7 billion Skeleton Balanced 70 fund, the management fee plus other costs results in a TER of 0.46%.

The highest fees charged on its funds are for some of its specialist offshore-focused funds, such as the FANG, AI Funds and Fourth Industrial Revolution Global Equity Funds, where the TER is between 0.86% and 1.08%.

The new fees are based on a sliding scale, depending on the size of an investor's portfolio.