Fee structure

We work on a fixed fee for service basis and/ or a combination of percentage of assets under management.  Through bulking in excess of R9 billion, we have negotiated reduced rates on behalf of our clients (also see Finsolnet Association). As such we have better control over performance fees.

Keep in mind that annualised return figures are reported after fund or asset management fees, but excludes administration and advisory services where applicable. In other words asset management fees have already been deducted from the reported net performance.  Hence, by reducing fees we are able to offer improved net performance.  Read more >>

Charges always occur in three layers:

  • Advisory and Planning Services
  • Administration or Brokerage Services
  • Fund or Asset Management
  Initial (Once-off) Annual Fee*
1. Advice & Planning 0% Upon a sliding scale
2. Administration 0% Upon a sliding scale
3. Asset Management 0% Approx. 0.40% to 1.25%

*The fee structure differs for direct equity portfolios

There are:

  • No initial or inception fees (with the exception of brokerage fees associated with direct share portfolios)
  • No switching fees
  • No penalties, or fees related to ad-hoc withdrawals
  • No withdrawal terms. Thus clients maintain freedom of choice
  1. Advisory (for Professional Advice and Planning)
    • Afrafin may charge a fixed planning fee which is usually negotiated upfront with any prospect. This fee pertains to the analysis of individual requirements
    • Clients pay annual fees based upon a formal fee arrangement. This agreement is reviewed annually
  1. Administration or Brokerage (for Receiving/ Making Payments, Internet Access, Account Calculations, and Tax Certificates)
    • Administration fees are levied in addition to the fund management fee
    • Administration fees are calculated upon a sliding scale; hence, costs are reduced for larger amounts
    • Administration might be substituted by a brokerage arrangement
  1. Fund Management (for Asset Selection, Strategic Asset Allocation and Blending Styles)
    • The Total Expense Ratio (TER) tallies trading expenses, management- and performance fees. Please reference the applicable Fund Fact Sheet
    • Performance fees are applicable where fund managers outperform targets and usually apply where performance exceed historic (high water mark) levels. As such, fees may vary due to complicated performance fee formulas. In practice these fees could reach up to 33% of the TER. We have been able to significantly reduce these performance fees

 

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