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Pricing Guide 1 July 2017 – 30 June 2018
Investments
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FNB Investments 01
Invest in Unit TrustsIntroduction 02
Fees 03
Invest in SharesIntroduction 04
Fees 05
Trade on local and global exchangesIntroduction 08
Fees 10
Portfolio ManagementIntroduction 16
Fees 17
Contact us 20
Index
01
Our customers have evolved and they need more from their investments. Now customers can access a range of investment solutions that will help them achieve their medium and long term goals.
FNB Investments
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Invest in Unit TrustsThe FNB Horizon Series has been specifically designed to take the complexity out of investing and offer investors superior fund solutions, with exposure to inflation-beating returns over different time horizons.
There are five funds to select from, each fund has been designed to optimise returns over a specified time horizon. You can simply select the fund that best matches your investment horizon. Investors benefit from multi-manager funds that offer value for money, managed by the brand that you trust.
2%IncomeFund
Investment Term
Return Benchmark
StableFund
In times of market volatility your investments should not suffer losses of more than
ModerateFund
GrowthFund
Growth Plus Fund
6% 15% 25% No limit
Inflation+1%
Inflation+2%
Inflation+3.5%
Inflation+5%
FTSE/JSE All Share Index
1-2 years
3 years
5 years
7 years
10 years+
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Who is this forThe FNB Horizon Series Unit Trusts have been designed to out pace inflation and are the ideal investment solution for anyone looking to invest for the medium to long term.
Investment Management charges
Fee Description Income Fund
Stable Fund
Moderate Fund
Growth Fund
Growth Plus Fund
Asset Management Fees 0.63% 0.76% 0.92% 1.04% 1.21%
Fund Costs 0.03% 0.03% 0.03% 0.03% 0.03%
TER of underlying Funds 0.05% 0.10% 0.11% 0.13% 0.12%
TER of Fund of Funds 0.71% 0.89% 1.06% 1.20% 1.36%
Transaction Costs 0.03% 0.07% 0.12% 0.15% 0.15%
Total Investment Charges 0.74% 0.96% 1.18% 1.35% 1.51%
Initial, exit and switching fees 0% 0% 0% 0% 0%
Fee Structure B1 Class B1 Class B1 Class B1 Class B1 Class
All figures INCLUDE VAT. The TER of the underlying funds, Fund Costs and Transaction Costs cannot be determined accurately because of the short life span of the Financial Product.
* Calculations are based on actual data where possible and best estimates where actual data is not available.
Administrations charges are on a flat fee of 0.25% (excl. VAT) depending on assets invested on the platform.
Advice fees may differ from person to person and are agreed upon by the advisor and the client and will be provided in your quote, application and statement. This fee is facilitated by the platform.
TER=Total Expense Ratio
Product and Administration Fee
Tax Free Savings Account 0.25% (excl. VAT)
Investment Account 0.25% (excl. VAT)
Retirement Annuity 0.25% (excl. VAT)
Preservation fund 0.25% (excl. VAT)
Living Annuity 0.29% *
Endowment fund 0.29% *
* VAT not applicable
AUM = Assets under administration
Fees will be calculated on total assets across all products on the platform.
Advisor Fees
Your financial advisor can charge an Initial Fee of between 0% - 3% on AUM (plus VAT) and an Ongoing Fee of 0% to 1% on AUM (plus VAT).
For more information or to apply for the FNB Horizon Series, log onto www.fnb.co.za
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Invest in sharesShare Investing gives you access to invest directly in JSE shares and Krugerrands – online and in real time.
Did you know?You can invest safely in Krugerrands online, simply by opening a Share Builder or Share Investor account.
Investing in shares and directly in gold (through Krugerrands) is a great way to build your wealth, as it allows you to diversify your investment and benefit from company profits and dividends over time.
Who is this for?Whether you are new to investing in shares, or a seasoned share veteran, we offer various options that will suit your level of experience in the share market:
Share Saver
Invest monthly in the top 100 JSE listed companies from as little as R300 per month. This means you don’t have to choose your own shares.
Share Builder
Choose from a pre-selected range of JSE blue chip shares to help you start your Share Investing Portfolio. You can also invest directly in Krugerrands via this product.
Share Investor
If you have some experience in the share market, Share Investor allows you to invest in the full range of JSE listed shares and Krugerrands in real time.
Tax-Free Shares
Invest in the top 100 JSE listed companies and all dividends and capital gains are tax free.
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Fee Descriptions Share Saver & Tax-Free Shares (based on portfolio value)
Share Builder Share Investor
Monthly Fees
Monthly account fee
R0 - R250 000 **0.50% per annum plus VAT
R35 R65*R250 001 – R1 000 000
0.45% per annum plus VAT
>R1 000 001 0.35% per annum plus VAT
Subscriptions to inContact, Online, Cellphone and Telephone Banking and the FNB Banking App
Free
Krugerrand safekeeping fee - 0.86% of market value per annum
*For Share Investor Accounts, a monthly account fee of R75 is charged on Non-resident and Emigrant Blocked accounts. No VAT is payable on Non-resident Accounts.
**The monthly account fee for Share Saver and Tax-Free Shares account is 0.5% per annum charged monthly with a minimum of R20 per month.
Fee Descriptions Electronic Channels Telephone Branch
Transaction Fees
Withdrawals - - R60 + R1.90 per R100
Transfers Free R65.00
Payments R3.75 R65.00
Fee Descriptions Share Saver & Tax-Free Shares (based on portfolio value)
Share Builder Share Investor
Trade fees (of trade amount)
Trade OptionDelayed trades
(Today at 15:00)1st trading day
of monthDelayed trades
(Today at 15:00) Now trades Delayed trades (Today at 15:00)
Investor Protection Levy - - - 0.0002% plus VAT -
STRATE Settlement Charge - - -
0.005787% (minimum
R10.19 maximum R73.49) plus VAT
-
Securities Transfer Tax (only on share purchase) - - - 0.25% -
For the purpose of calculating fees all “sell” instructions shall be considered a delayed trade – even if placed on the 1st trading day of the month. This is only applicable to Share Saver and Tax-Free Shares.
Share Investor delayed trades option only applicable to shares contained in the Share Builder basket.
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Other account related fees Fee
Deposits
Cheque deposits* FNB ATM and FNB branch (per deposit) R45 + R5 per Cheque
Cash deposits
FNB ATM with envelope or Automated Deposit (ADT) R0.90 per R100 (no minimum)
FNB Branch R60 + R1.90 per R100
ENC upliftment fee and special clearance R115
Deposit of post-dated cheques (per cheque) R45 + R5 per Cheque (same as normal cheque deposit)
*The standard cheque clearance period is 7 days. Clearance could differ per account. Kindly call 0860 11 22 44 or your branch for details.
Non-standard services Fee
Share transfer (per counter)
Account transfer in Free
Account transfer out R135
Internal transfer Free
Portfolio move in Free
Portfolio move out R100
Other fees
Telephonic trade instructions 0.5% with a minimum of R100
Cancellation (off-exchange instruction) R140
Normal dematerialisation (per counter) R105
Urgent dematerialisation (per counter) R1 500
Normal rematerialisation (per counter) R1 200
Urgent rematerialisation (per counter) R1 250
Exchange (per counter) R105
Indemnities (excl insurance per counter) R390
Value add fees – price alert Share Investor only R0.35 (incl VAT) per alert that gets sent
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Non-standard services Fee
Other fees
Registration/Change of beneficiary R45 (excl VAT)
Krugerrand Deliveries POA
Portfolio Evaluation R40
Dividend Tax Refund (per refund processed per beneficial owner) R150
Brokerage Fee 1st Trading day Delayed trades (Today at 15:00)
Delayed trades (Today at 15:00)
Now trades Delayed trades (Today at 15:00)
0.10% plus VAT 0.60% (minimum of
R40) plus VAT
0.80% (minimum of
R80) plus VAT
0.60% (minimum of
R80) plus VAT
0.80% (minimum of
R80) plus VAT
Share removal (per instruction) Fee
Normal: Value of securities
R1 – R50 000 R990
R50 000 – R2 000 000 R1 550
R2 000 000+ R2 650
Fast Track: Value of securities
R1 – R50 000 R1 650
R50 000 – R2 000 000 R2 750
R2 000 000+ R4 800
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Trade on local and global exchanges
FNB Securities is a full service traditional and online stockbroker that offers you both local and global share trading and investing.
You have the ability to invest directly in shares listed on the local and international stock exchanges or work with skilled investment professionals.
Who is this for?Whether you are looking to buy and sell shares for the short term or hold for the long term, FNB Securities has a solution to help you make the right investment decisions. You can buy and sell shares independently via the FNB App, FNB Securities online or telephonically, or work with our investment professionals.
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Local Trader
Offshore trading account (Global Trader)
If you’re passionate about trading, investing or even learning about local stocks, then Local Trader is for you. Achieve your trading and investing goals by buying or selling shares on the Johannesburg Stock Exchange (JSE). The JSE allows you to invest in shares, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), Warrants and Preference Shares.
You can choose your level of service. Either take full control of your account and make all decisions, or choose to work with a relationship manager who will deliver an investment portfolio tailored to your needs.
Diversify your trading and investment portfolio by going global. Buy and sell shares on more than 15 exchanges around the world with access to various instruments. You can invest offshore using your foreign investment allowance. Alternatively you can transfer assets using our transfer facility.
You can choose your level of service. Either take full control of your account and make all decisions, or choose to work with a relationship manager who will deliver an investment portfolio tailored to your needs.
We help you on your investment journey by:
• Providing state-of-the-art, simple, interactive trading and charting tools
• Allowing you to trade easily online, over the phone or on the FNB App - anytime, anywhere.
• Giving you the ability to trade over the phone by talking to investment specialists from our trading team
• Making both delayed and live share prices available
• Giving you access to the latest market research and share analysis
• Letting you set smart price alerts that will notify you when share prices move and set a stop-loss to control how much risk you take on
• Sharing live news updates from our dedicated trading team
Continue your investment journey offshore by:
• Choosing one of three major currencies for your transactional account: US Dollar (USD); Euro (EUR); or the Great British Pound (GBP).
• Trading and investing online
• Having 24 hour access to your portfolio
• Getting access to our dedicated trading team
• Giving you access to the latest market research and share analysis
Achieve your trading and investing goals by buying or selling shares on the Johannesburg Stock Exchange (JSE) and on global exchanges.
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Local Trader
Relationship Manager Clients
Bespoke Discretionary Bespoke and Discretionary
Advisory fee (% of the portfolio value)
Portfolio management fee (% of the portfolio value)
Brokerage fees Bond facilitation fee
Assets under Management *% of Assets under
Management% of Assets under
Management Up to R500 000: 0.75% or R100*
*minimum R100 per transaction.
0.25% per nominal value
of bond traded
R 3 000 000 to R 5 000 000 1.25% 1.10%
R 5 000 001 to R 10 000 000 1.15% 1.00%
R 10 000 001 to R 15 000 000 1.00% 0.85% R 500 000 to R 1 000 000:
0.50%R 15 000 001 to R 20 000 000 0.85% 0.70%
R 20 000 001 to R 30 000 000 0.65% 0.55%
Over R 1 000 000: 0.35%R 30 000 001 to R 50 000 000 0.45% 0.40%
R 50 000 001 and above Negotiable Negotiable
* Portfolios below the minimum criteria will be charged at 1.25% for Bespoke and 1.10% for Discretionary mandates.
Non-Discretionary Brokerage fee
R 0 to R 50 000 1.25% (min R100 per transaction)
R 50 001 to R 100 000 1.00%
R 100 001 to R 500 000 0.75%
R 500 001 to R 1 000 000 050%
Over R 1 000 001 0.35%
Non-Discretionary Bond facilitation fee
Minimum R500 flat fee
R 0 to R 5 000 000 0.50%
Over R 5 000 001 0.35%
Basic fee of R50 per contract note for transactions in listed securities. Brokerage fees are applied on a sliding scale basis i.e. effectively it is a blended rate. Brokerage and Bond fee is per transaction. Portfolio management and Advisory fees are applied on the bands of Asset under Management i.e., not on a sliding scale basis.
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All fees and commissions quoted exclude third party broker’s commission effective, and any third party charges, government
levy, stamp duty, withholding taxes (if any) and further charges of external settlement agents or custodian entities. All fees
are exclusive of VAT unless otherwise indicated.
Online Trading and Investing Clients
The fees under this section apply to all clients that have entered into a relationship with FNB Securities via the Dealing Desk, FNB Securities online trading or telephonically.
Non-Discretionary Access to trade online or via the Dealing Desk
Flat fee0.50%
*minimum R100 per transaction.
Non-Discretionary Bond facilitation fee
Minimum R500 flat fee
R 0 to R 5 000 000 0.50%
Over R 5 000 001 0.35%
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Other fees applicable
The fees in this section apply to both the Relationship Manager Clients and Online Trading and Investing Clients.
Other levies charged by the JSE
Ad hoc service fees
Cash balances ** Administration fees Multi-manager funds
STRATE levy of R10 to R60 dependent on value of transaction.
Securities Transfer Tax (0.25%) is levied on the value of purchase transactions, before the brokerage fee and VAT.
Investor Protection levy at 0.0002% of trade value.
Registration of scrip in our nominee company: No charge.
Debit balance: Prime + 3.00% is charged on all debit balance accounts.
Registration of scrip other than in our nominee account: R 500 per certificate.
Replacement of lost scrip: R 1000 plus insurance per certificate.
Estate Late valuations: R 100 per share (min of R 500).
Cash deposit fee: Amount charged by FNB Securities bankers. (Under the JSE rules FNB Securities may not accept or receive a cash deposit in excess of R 5 000.)
Cash deposit penalty fee: R 1000 per cash deposit plus bank charges.
Rematerialisation of shares: R 1200 per counter.
Urgent Rematerialisation of shares: R 1500 per counter.
Urgent Dematerialisation of shares: R 1500 per counter.
Withdrawal / upliftment from transfer secretaries: R 100 per counter.
CSDP exit fee: R 100 per counter.
Households***: A fee of 0.20% per annum is charged monthly on cash balances held in money market.
Corporates***: A fee of 0.20% per annum is charged monthly on cash balances held in money market.
A fee of 0.88% per annum is charged monthly on cash balances held with JSE Trustees.
A fee of R10 per payment made to clients’ bank accounts.
A fee of R100 per “live” payment made to clients’ bank accounts.
A fee of R85 per transaction for all third party payments.
A fee of R85 per month applies for all Securities Based Lending accounts.
A fee of R70 per month if you choose to receive electronic communications (eg.Contract notes, statements, tax statements).
A fee of R125 per month if you choose to receive printed and posted communications (eg. contract notes, statements, tax statements).
Transact five times within a month and monthly account fee is waived.
FNB Securities does not charge initial fees.
Annual commission: 0.50% per annum, if applicable.
Administration fee: 0.25% per annum on Market Value, excluding Ashburton Money Market Funds and Atlantic Stable Income Funds.
0.20% per annum based on Market Value relating to Ashburton Money Market Funds and Atlantic Stable Income Funds.
Management and service fees apply – a fee breakdown is available on request.
** JSET is the interest rate paid by the Johannesburg Stock Exchange on Cash.
*** Please refer to the website for an explanation of households and corporates
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Other fees applicable continued
Offshore Fees
Currency transactions 0.50% per a transaction with a minimum R500 per a transaction
Asset Transfer Capacity minimum of R500 per transaction (not applicable for discretionary clients)
R 0 to R 20 000 000 0.40%
R 20 000 001 to R 50 000 000 0.30%
R 50 000 001 to R 75 000 000 0.20%
R75 000 001 and above 0.20%
Market Data
User Type 15 Minutes Delayed1 Snapshot2 Equities and Indices
Streamed Live Pricing3
Value Added Fee4 (Corporate Actions
& EOD)
Non-Professional Free
Equities - R0.16 per snapshot
Indices - R0.09 per snapshot
R125.00 per month R18.00 per month
Non-Professional Free
Equities - R0.16 per snapshot
Indices - R0.09 per snapshot
R445.00 per month R60.00 per month
1 15 Minutes Delayed - Prices are defaulted to a 15 minute delay for all holdings and any instruments displayed on the quote or trade page.
2 Snapshot (Equities & Indices) - Real-time market update including the price, aggregate display quantity, number of orders and display position for each price level. Equities (depth of 5) capped at R99.20 per month for Non-Professional and R368.00 per month for Professional. Indices capped at R20.00 per month for Non-Professional and R82.80 per month for Professional.
3 Streamed Live Pricing – Prices of indices and equities are continuously updating to reflect the current value of holdings and any instruments. If you switch from delayed to live pricing the full fee will be levied and will not be pro-rated. You can switch to delayed pricing at any time.
4 Value Added Fee (Corporate Actions & EOD) – Value added record types for equities which are packaged into EOD Data products. This includes corporate actions.
Please refer to the website for additional terms and conditions in relation to the fees.
Default live pricing option – 15 minute delayed, this option is free.
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Global Trader Fee Schedule
All fees and commissions quoted exclude third party broker’s commission effective, and any third party charges, government levy, stamp duty, withholding taxes (if any) and further charges of external settlement agents or custodian entities. All fees are exclusive of VAT unless otherwise indicated. Unless otherwise stated all fees quoted are per annum but charged monthly. All fees charges are quoted at % per a transaction unless otherwise stated.
Please be advised that the fees below do not include additional fees that may be charged by the exchange you are trading on or taxes, levies or other duties that may be applicable. For additional information on the type of additional fees, taxes or other relevant information that may affect what you are being charged please visit [insert website address].
You agree to be bound by the latest fee schedule which may be amended from time to time. You will be notified of any changes to the fee schedule.
Share Execution Fees: Shares and ETF’s
Commission for European Exchanges
Exchange Exchange Name Symbol Execution fees for Discretionary, Bespoke and Non-Discretionary
Minimum execution fees (this minimum fee applies
regardless of whether Non-Discretionary,
Discretionary Bespoke client or whether the trade is executed by
a Relationship Manager, online or the dealing desk)
Spain (BME Spanish) Stock Exchange SIBE 0.35% 20 EUR
Netherlands Euronext Amsterdam EURONEXT 0.35% 20 EUR
Belgium Euronext Brussels EURONEXT 0.35% 20 EUR
France Euronext Paris EURONEXT 0.35% 20 EUR
Germany Frankfurt Stock Exchange XETRA FSE 0.35% 20 EUR
Austria Wiener Börse (Vienna) Stock Exchange VIE 0.35% 20 EUR
Italy Milano Stock Exchange MIL 0.35% 20 EUR
UK London Stock Exchange LSE_SETS 0.35% 12 GBP
UK London International Order Book LSE_IOB 0.35% 24 USD
Switzerland Swiss Exchange SWX 0.35% 36 CHF
Switzerland Swiss Europe Exchange VX 0.35% 36 CHF
Denmark OMX Nordic Stock Exchange Copenhagen OMX 0.35% 39 DKK
Sweden OMX Nordic Stock Exchange Stockholm OMX 0.35% 80 SEK
Finland OMX Nordic Stock Exchange Helsinki OMX 0.35% 20 EUR
Norway Oslo Stock Exchange OSE 0.35% 20 EUR
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Commission for American and Canadian Exchanges
US NYSE MKT (American Stock Exchange) AMEX 0.35% 20 USD
US NASDAQ NASDAQ 0.35% 20 USD
US NASDAQ (Small Cap) NSC 0.35% 20 USD
US New York Stock Exchange NYSE 0.35% 20 USD
US New York Stock Exchange (ARCA) NYSE Arx 0.35% 20 USD
Canada Toronto Exchange TSE 0.35% 35 USD
Canada Toronto Exchange TSX 0.35% 35 CAD
Commission for Asian / Australasian Exchanges
Australia Australia Securities Exchange ASX 0.35% 30 AUD
Data subscriptions for real-time prices
At FNB Securities Global all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, you will have to subscribe independently to the individual exchange via third party providers.
A subscription to live price data from an exchange gives you access to live prices on Shares and ETFs from the particular exchange.
An Online Subscription Tool is available in the Trading Platform. In the tool, you will find a list of available exchanges and news services alongside the applicable monthly fees. You will be able to subscribe and unsubscribe to services of your choice. Further information can be found in the Subscription Tool guide, which is also available on the Trading Platform.
Level 1 or Level 2 data
Level 1 price data refers to the first level of the order book on the exchange. With a Level 1 subscription you can see live, streaming, bid and offer prices.
With a Level 2 price data subscription you can see live, streaming prices as with Level 1 but on top of this you can see the market depth of bid/offer prices and the amounts available at each price point.
Please note that we are entitled to vary and/or increase such fees and charges immediately without notice when the change is to your benefit, or the grounds for changes are due to external circumstances beyond our control. Please refer to the General Terms and Conditions of Business available on our website for further information.
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The fees under this section apply to all clients who have entered into a relationship with FNB Securities via a Relationship Manager.
Bespoke – Advisory Fees
Minimum Band Commission (%) -
R1 Million R 1 000 000 – R 3 000 000 1.50%
R 3 000 001 – R 5 000 000 1.25%
R5 000 001 – R 10 000 000 1.15%
R 10 000 001 – R 15 000 000 1.00%
R 15 000 001 – R 20 000 000 0.80%
R 20 000 001 – R 30 000 000 0.65%
R 30 000 001 –R 50 000 000 0.50%
R 50 000 001 and above Negotiable
Execution Fees: Bonds
Brokerage fees for Bond Trading
Commission - FNB Securities Global Minimum Commission – FNB Securities Global
0.20% 160 EUR
Other fees applicable
Custody Fee Currency Conversion Fee
Custody for stock portfolio – if you do not conduct at least
one trade per quarter
Equity Research for active clients
Bank withdraw fee Exit Fee
Custody fee is charged at 0.15% per annum, charged monthly.
1.00% is automatically applied to the client account
when the trade is executed, where the instrument currency
differs from the account currency.
In such a case the inactivity fee is
calculated as 0.025% (0.10% p.a. and min
EUR 5) of the average end month value of the stock portfolio during the quarter.
If you make one trade (in any instrument)
or more during a quarter no inactivity
fee is charged.
Equity Research & Stock Screener EUR 1.99/month
(Private), US$ 180.00/month (Professional).
GBP 10.00 fee will be levied for each cash withdrawal.
For transfers of shares or a
repository to another bank, an exit fee
will be charged for all clients upon
final closure and settlement of the
account. The fees are as
follows: All listed shares: 25 EUR per
ISIN (max. 160 EUR.
Offshore Fees
Currency transactions – 0.50% per a transaction with a minimum R500 per a transaction. Asset Transfer Capacity (“ATC”) – minimum of R500 per transaction (only applicable when using FNB Securities ATC)
R 0 to R 20 000 000 0.40%
R 20 000 001 to R 50 000 000 0.30%
R 50 000 001 to R 75 000 000 0.20%
R75 000 001 and above 0.15%
Please note that we are entitled to vary and/or increase such fees and charges immediately without notice when the change is to your benefit, or the grounds for changes are due to external circumstances beyond our control. Please refer to the General Terms and Conditions of Business available on our website for further information.
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Portfolio management
We offer a range of portfolio management services to meet your needs.
Bespoke Personal Portfolio
This portfolio has been specifically developed for investors who require very personal wealth management within a disciplined, risk-controlled, investment management process.
Equity Portfolio
This portfolio’s objective is to maximise returns to the investor over the medium to long term through investing in FTSE/JSE listed shares. The portfolio’s returns are based on the ability of the All Share index to deliver returns above inflation and the ability of the fund manager to identify undervalued securities within the asset class.
Dividend Income PortfolioThe portfolio is actively managed and invests in local equities. It aims to provide investors with an attractive dividend yield over the long term. This is based on the selected companies’ ability to generate sustainable earnings growth through the investment cycle.
Global Leaders Equity Portfolio
This should be considered as a long-term investment option. The portfolio is unconstrained by individual benchmarks, enabling concentrated focus on a selection of world-class mega caps which should deliver sustainable above average returns over time through the strength of their market position in their respective industry.
Balanced Portfolio
The portfolio is actively managed and invests in local equities, listed property, bonds, cash as well as offshore assets. The objective is to deliver risk adjusted returns over the medium to long term.
Property Portfolio
The portfolio aims to outperform the South African listed property index on a sustainable basis. The objective is to invest in high quality listed property companies with robust earnings and long term growth prospects. The portfolio can be used for capital growth or income generating purposes.
Preference Share Portfolio
The portfolio consists of a selection of FTSE/JSE listed preference shares. It aims to provide investors with an attractive interest rate linked income in the form of dividends and is aimed at investors looking for an attractive income.
Fixed Income Portfolio
This portfolio is conservatively managed and aims to generate stable and optimal income returns from interest earning securities. A combination of bonds, fixed deposits, money market and other cash instruments is used to achieve these objectives.
Our portfolios are structured with the goals of long term capital appreciation and income generation in mind, while targeting diversification and risk protection at the same time.
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Fee schedule
The annual management fees payable to Ashburton portfolio management are detailed in the schedule below. Fees will be levied to portfolios depending on the level of engagement required in meeting their obligations to the client or within the portfolio. There are three varying sliding scales which are based on the level of client interaction and/or involvement from the portfolio manager. These fees are only applicable to new business and are not applicable to existing clients who already had an agreement relating to portfolio management services before 31 July 2015. Please note that the fees detailed in this document are asset management fees only and do not include any advice fees. All fees exclude VAT.
No client interaction/involvement required
Annual fee
This option refers to agreements where a client signs a discretionary mandate and invests in a selected solution or model portfolio. The client will not have any input into the portfolio construction. The advisor will be the primary contact for the client and the portfolio manager will not take instructions from, or communicate with, the client directly. The minimum investment amount is R1 million per client and the asset management fee scale for this option is:
R1mil - R5mil 0.85%
R5mil - R10mil 0.75%
R10mil - R15mil 0.65%
R15mil - R20mil 0.55%
R20mil - R30mil 0.40%
R30mil - R50mil 0.30%
> R50 mil Negotiable
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Fee schedule
Limited client interaction/involvement required
Annual fee
Should the client require access to a dedicated portfolio manager for feedback or reporting on the above mentioned solutions or model portfolios together with an investment advisor an additional fee will be levied on the portfolio. The portfolio manager will only be able to report on the investments held within the portfolio for information purposes and will not make any changes to the portfolio as the solutions within these mandates are managed centrally. The minimum investment amount is R3 million per client and the asset management fee scale for this option is:
R3mil - R5mil 1.10%
R5mil - R10mil 1.00%
R10mil - R15mil 0.85%
R15mil - R20mil 0.70%
R20mil - R30mil 0.55%
R30mil - R50mil 0.40%
> R50 mil Negotiable
Client interaction/involvement required
Annual fee
This management arrangement is referred to as the co-pilot approach. The investment portfolio will be structured this way when a client requires a tailor made/bespoke portfolio. Where a client wants to have input into the initial investment structuring and requires on-going input or communication directly from the portfolio manager this arrangement will best suite their needs. The primary contact for the client remains the investment advisor but in this instance the portfolio manager can contact the client to discuss markets, specific trends or trades (stock level). The level of interaction and involvement will differ from client to client. Based on the client’s needs they will sign a discretionary or a non-discretionary mandate which will form the basis for the agreement and interaction. The portfolio manager will be available for quarterly feedback sessions and other ad-hoc client meetings. The minimum investment amount for this structure is R3 million per client and the asset management fee scale is:
R3mil - R5mil 1.25%
R5mil - R10mil 1.15%
R10mil - R15mil 1.00%
R15mil - R20mil 0.80%
R20mil - R30mil 0.65%
R30mil - R50mil 0.50%
> R50 mil Negotiable
Share Investing Securities Portfolio managementUnit Trusts
20
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Share Investing Securities Portfolio managementUnit Trusts