As analysts continued to discuss what a horrible year 2018 was for the JSE, 10X Investments has offered South African investors a great start to 2019. Photo: File

DURBAN - As analysts continued to discuss what a horrible year 2018 was for the JSE, 10X Investments has offered South African investors a great start to 2019.

10X Investments will be slashing the fees on new investment policies to zero for most of the year.

As fears about global growth intensified, the disruptive asset manager said clients who started a new retirement policy in the month of January would start paying 10X’s fees only in October.

The asset manager ran a similar offer in January 2018 in celebration of its first decade of market-beating performance.

10X’s annualised return over its first 10 years was 11.3 percent, an industry-beating performance, for which the company never charges more than 1 percent before VAT in fees, 2 percent less than the industry average.

Using the monthly returns in the 2017 Alexander Forbes Large Manager Watch (LMW) as a reference (Global – Best Investment View Category), the 10X fund’s annualised return of 11.3 percent over the decade is 0.8 percent above the large fund manager average before fees.

“We’ve consistently beaten the country’s large manager average. When you factor in the average 2 percent in fees that we save our clients those returns look even better,” said Chris Eddy the Head of Investments at 10X. 

Eddy added that the difference compounded over a 40-year saving period really is the difference between a dignified retirement and a dismal one. 

He also emphasised that it is important to focus on those aspects of your retirement plan that you have control over. He recommends that retirement savers diligently contribute 15 percent 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.

“In an environment of heightened uncertainty, no one can realistically predict what the market will return over the next year,” he says. “The only thing that is guaranteed with any certainty is the fees that you pay.”

Eddy said that 10X’s fee-free offer was a great opportunity for investors to capture as much of the market return as possible. The company’s fee-free promotion applies to new Retirement Annuities, Living Annuities and Preservation Funds and is open to all individual investors.

10X said it had signed a total of R300 million rand of new business during its fee-free promotion last January, which means a potential saving of almost R3 million in fees for clients.

BUSINESS REPORT ONLINE