Moving pension funds from Allan Gray to Discovery

Candystore

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Jan 23, 2009
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They offer a 10% '"Invest Boost" if you invest for minimum 10 years.

Good idea to move the funds there, or are there better options in the market?
 

jman

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Just don't. Their fees are exorbitant and you need to have more than 1 discovery product for it to actually work in your favour. Rather look at Sygnia, 10x, Nedgroup core series, etc
 

Tander

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Just don't. Their fees are exorbitant and you need to have more than 1 discovery product for it to actually work in your favour. Rather look at Sygnia, 10x, Nedgroup core series, etc
10X is great. I am with them and their fees are not bad at all.
 

zerocool2009

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I am with Sygnia, the down part there, you never see fees at all. :(

AG on the other hand, everything is visible !
 

beefymoocow

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If you have vitality or purple vitality diamond and discovery card then it's goodish.

But the best retirement product is the DRO by discovery in terms of returns if you can get their other products and stay committed until retirement. The net fees are pretty good as well.
 

zerocool2009

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The question is simple, lets remove that 10% added value. Ask the broker if you stop the investment in day 2 ... what happens ? How much are you losing ....
 

Hansolo

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LOL ... Had the same offer ! Check the F E E S !
Yeah they are terribad. Alexander Forbes and Discovery a match made in hell an ll these extra bullcrap options. I wish companies would give you a choice at least but Discovery must giving money under the table to get all these companies business but then offer such **** packages and support.
 

Hamster

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They offer a 10% '"Invest Boost" if you invest for minimum 10 years.

Good idea to move the funds there, or are there better options in the market?
Ask yourself why these companies are adding all these bells and whistles to their products when the guys who are tried and tested don't?

What's wrong with Allan Gray anyway or are you "bored" looking for something new?
 

zerocool2009

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If companies offer you "bonus's" .... start running for the hills (seriously!)

Lets take momentum and Liberty, every 5 years you get a bonus on a certain product. They have a very nice table counting down from 60 to 1 (12 X 5 years) .... In year 1, you lose x% if you stop. You look straight into the bonus all the time, mean while, they rape you with fees. The same with Liberty.

With Sanlam (echo bonus product), the same thing. But they have a fee called "marketing fee" going off monthly.

I also paid school fees (in the RA sector), time lost (which is the sad part).

Sometimes I wonder how much of these big firms shiny windows did I fund in Sandton !
 

zerocool2009

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Related to brokers ... if a broker keep on saying "pump lump sums in" .... ask what will the result in fees would be !

My fees doubled when I added a lump sum !

Be pro-active, ask the right questions .... and keep on asking if you have DOUBTS !
 

Masataka

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Doubt their funds will perform anywhere near the likes of AG, Coronation, Sygnia, etc.
 

Foxhound5366

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Did anybody escape the dip in the market the past couple of years? My pension fund shows negative growth over this period, never mind positive returns ... and it's with Coronation sommer, in one of the funds that was one of the best-performing for the longest time *rolls eyes* My broker says everybody has had the same experience, and we just have to ride it out until the markets bounce back.
 

zerocool2009

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Did anybody escape the dip in the market the past couple of years? My pension fund shows negative growth over this period, never mind positive returns ... and it's with Coronation sommer, in one of the funds that was one of the best-performing for the longest time *rolls eyes* My broker says everybody has had the same experience, and we just have to ride it out until the markets bounce back.
That is every brokers sentence "wait it out". And in the mean while, fees are going off left and right. So they are still making money, but not you as customer.

In a way glad to see the JSE above 58k points to be honest. Last year Jan it was on 61800 ... so we are getting there slowly I think
 

Mars

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Just don't. Their fees are exorbitant and you need to have more than 1 discovery product for it to actually work in your favour. Rather look at Sygnia, 10x, Nedgroup core series, etc
Yep. I've been with discovery for more than 10 years, my overall growth is 3.2%. Except that I'm paying almost 9% in fee's :/ So the fund grew 12.2% and discovery took the lions share for the privelage of... I duno. The kicker is the R20k penalty if I move it.

I'm moving my investment to an investment firm despite the penalty. if I even see half the growth over the next 10 years that I saw at discovery it will be worth the move.
 

jman

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Yep. I've been with discovery for more than 10 years, my overall growth is 3.2%. Except that I'm paying almost 9% in fee's :/ So the fund grew 12.2% and discovery took the lions share for the privelage of... I duno. The kicker is the R20k penalty if I move it.

I'm moving my investment to an investment firm despite the penalty. if I even see half the growth over the next 10 years that I saw at discovery it will be worth the move.
Ah man, that sucks.
 
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