10X Investments

Low Cost Retirement Funds

Industry Problem 10X Solution

Expensive

The total cost of retirement investing is around 2.5%. Over a working life this absorbs 75% of your return.

Low costs

10X’s fees are well less than half the industry average. You capture the bulk of the investment return.

Costs are too high relative to the real return. Long term investors should expect a real return of about 5% pa; 1% in cost (as a % of assets) is therefore 20% of the real return. Unfortunately the aggregate cost of investing in South Africa is closer to 3% or 60% of the real return. And it gets worse — over a 40-year investment term, the real return lost to costs compounds to as high as 75%!

  • Show me an example

    Investment value: R1 000 pm contribution, 40 year investment and 5% pa. real return

    Low cost retirement funds
    Source: 10X Investments

    An investor saving R1 000 per month for 40 years earning a 5% p.a. real return, will have a retirement investment of almost R1.5 million (in today’s money) in a zero cost environment. This comprises roughly R500 000 of contributions and R1 million in investment returns.

    Now look at the impact of costs.

    • A 1% cost reduces the investment return to R660 000 and the final investment value to around R1.1 million. The investor captures two thirds of the investment return or 68 out of every 100 cents of return.
    • The 3% average cost reduces the investment return to R240 000 and the final investment value to R720 000. The investor captures just 25% of the return.
    • Cost ratios above 3% are not uncommon for individual investors and small to medium-size companies, so many investors receive back little more than their contributions (adjusted for inflation) after 40 years of investing!

    A high cost retirement solution can thus derail even a diligent 40-year savings plan. At 10X, we provide a low cost retirement solution.

 

Retirement Annuities Funds: 10X Low Cost Fee Scale

Investment Value 10X Fee pa (ex VAT)
First R1 million 0.90%
Next R4 million 0.70%
Next R5 million 0.50%
Above R10 million 0.35%

Please see the 10X Retirement Annuity Fees for more information.

Preservation Funds: 10X Low Cost Fee Scale

Investment Value 10X Fee pa (ex VAT)
First R500 000 0.90%
Next R500 000 0.80%
Next R4 million 0.70%
Next R5 million 0.50%
Above R10 million 0.35%

Please see the 10X Preservation Fund Fees for more information.

Umbrella Funds: 10X Low Cost Fee Scale

Investment Value 10X Fee pa (ex VAT)
First R1 million 0.90%
Next R9 million 0.70%
Next R15 million 0.50%
Next R75 million 0.30%
Above R100 million 0.25%

Please see the 10X Umbrella Fund Fees for more information.