PPS RA

R13...

R13...

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Anyone here with PPS RA, I don't mean the Sanlam one I mean the new PPS direct one?

I took my RA through PPS in early 2000s and that legacy RA was then transferred to Sanlam. I have recently decided to do a proper audit of what I pay on my investment and found out that just under 10% of what I pay in monthly premiums goes towards fees :sick:

My PPS advisor has now suggested I transfer to PPS and it's better because there's a dividend and the fees are lower and transparent. The only problem of course is that transferring means Sanlam get to take 17% of the fund value as "lost" fees upon transfer :sick:. I feel a bit ill looking at that quote.

So what's best really, do I take the hit and get out or leave it - making it paid up is no use either as I will still pay the 17%. I went with PPS at the time as a one stop shop because I have life and other benefits with them.
 
I had the same problem with ABSA AIMS..... It never made any money because of the fees.

How long before retirement though? There are a few things to consider... like can you just stop payment, and start a new RA elsehwere.
 
Stopping payment means it is paid up and they will call in their fees upfront. And I am still a couple decades from retirement. I just wonder if I should take the hit, to be honest I should sit down and calculate the cost of staying at 10% fees or taking a once off 17%. I suspect it should be the same because they have calculated the charges based on premiums and nothing to do with returns.
 
R13... said:
Anyone here with PPS RA, I don't mean the Sanlam one I mean the new PPS direct one?

I took my RA through PPS in early 2000s and that legacy RA was then transferred to Sanlam. I have recently decided to do a proper audit of what I pay on my investment and found out that just under 10% of what I pay in monthly premiums goes towards fees :sick:

My PPS advisor has now suggested I transfer to PPS and it's better because there's a dividend and the fees are lower and transparent. The only problem of course is that transferring means Sanlam get to take 17% of the fund value as "lost" fees upon transfer :sick:. I feel a bit ill looking at that quote.

So what's best really, do I take the hit and get out or leave it - making it paid up is no use either as I will still pay the 17%. I went with PPS at the time as a one stop shop because I have life and other benefits with them.
Click to expand...

Where did you get the information to calculate the fees for Sanlam? I have an RA with them and maybe I should do this calculation too...
 
UserZ said:
Where did you get the information to calculate the fees for Sanlam? I have an RA with them and maybe I should do this calculation too...
Click to expand...
I got the info from PPS. Sanlam should be able to provide it too, but they will likely bamboozle you by sending you a complex table like they did me. It was only when I asked PPS that I got to see how much of what I pay goes to investments and how much is fees.
 
Actually, PPS Investments' RA offering is on par with Allan Gray's offering. The difference is PPS offers clean pricing (lower fees on unit trust) whereas Allan Gray only offers it on some funds. The unit trust industry has become very competitive - they are all very much in line. PPS is unique in the sense that it's clients share in its profits because they are essentially the shareholders. I am in the industry :)
 
R13... said:
Stopping payment means it is paid up and they will call in their fees upfront. And I am still a couple decades from retirement. I just wonder if I should take the hit, to be honest I should sit down and calculate the cost of staying at 10% fees or taking a once off 17%. I suspect it should be the same because they have calculated the charges based on premiums and nothing to do with returns.
Click to expand...

These products are horrible, stay away from insurance companies' investment products. Pure unit trust / share investments are more transparent. If you are still young, chances are good you will make up the "17%" penalty. I would take the difference in fees and extrapolate that over your remaining term to see if you will make up. i.e. lets say you are paying 2% less fees p.a., it will take you about 8 years to recover the fees.
 
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