consolidate or not

[cbfc]

I've been an avid reader of this part of the forum and learnt a lot. I have a question.
I have the following investments.
Satrix - had it for about 5 years with a debit order. About R100k currently
FNB share saver RMB top 40 and midi- about 2 years old with a debit order - a few k
Allan Gray Balanced Fund - about 5 years with a debit order. About R80k
I also have a RA, some shares in a JSE company,not too worried about these.
My question is...I have another R100k or so to invest...and am wondering if i am duplicating costs unnecessarily. Many of these funds are invested in the same companies. I want to take better advantage of compounding and believe having small amounts in different places is not helping. Also the associated costs of these investments.

 

[Hendrix]

Mmm, I would personally not consolidate, but perhaps adjust the amounts you invest into each.
The main reason I would not consolidate, is CGT.
I don't know how much CGT you would pay, or if even at all, you'll need to work that out.
If I recall correctly, no CGT on the first R33k profit made.

 

[Freaksta]

You could transfer everything to one provider. No tax etc just usually a transfer fee.

 

[Hendrix]

You could transfer everything to one provider. No tax etc just usually a transfer fee.

Not sure what you mean by "transfer"?
You cannot move all the money to say Allan Gray without selling the other unit trusts... This triggers a CGT event.

What might work is transferring to a LISP that has these funds in their portfolio.

 

[cbfc]

Thanks for the replies, think I am still way off the threshold for CGT. Guess the question is, will the effect of compounding and one or two costs vs the current 3 set off against CGT anyway. I guess if you are paying CGT, it means your money is growing which is a good thing. Obviously I have to be smart with regards to tax and hear you on CGT. Satrix and FNB Share Saver have very similar portfolios and probably same growth too, so is it worth paying 2 management fees for these? (I realize that these are ETF's and the fees are low already, compared to managed funds)

 

[Hendrix]

Um, makes sense to rather buy the ETF's through FNB and not through the Satrix Investment Plan. Your costs should be less going forward.