Preservation Fund Advice

RandomGeek

RandomGeek

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Good morning All

I will be changing jobs in the coming weeks, and would like to transfer my company RA/pension to a Preservation Fund.
Therefore 2 questions - 1) which company and 2) which fund(s)?

One of the options is to use Coronation's preservation product and put the money in e.g. the Balanced Plus fund (TER of 1.64%). I am a current client of their and is happy with the service...but a lower TER would always be nice.

Any suggestions for other providers and funds?

On a side note Coro has 2 options - "Coronation Preservation Pension Fund and Coronation Preservation Provident Fund". What the heck is the differences between these 2?

Thanks in advance :)
 
pinball wizard

pinball wizard

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One has the word pension in it, the other has the word provident in it.

Seriously, ask a cfp.
 
supersunbird

supersunbird

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As said, pension preservation fund has the word pension in it and is where you would put your employer pension fund money to preserve it, but if your employer has a provident fund... I'm sure you can figure the rest ;)

A RA is a private retirement fund (some small employer might use them too, but they are always in your name already) in your name and is not employer pension/provident fund and you can't put it into a preservation fund, because there is no need.

10x or Sygnia have low cost index fund preservation funds.
 
RandomGeek

RandomGeek

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pinball wizard said:
One has the word pension in it, the other has the word provident in it.

Seriously, ask a cfp.
Click to expand...

Thank you CAPTAIN OBVIOUS.

And no, I'm not looking at enriching a glorified salesman. DIY all the way, from there the question regarding TERs
 
RandomGeek

RandomGeek

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supersunbird said:
As said, pension preservation fund has the word pension in it and is where you would put your employer pension fund money to preserve it, but if your employer has a provident fund... I'm sure you can figure the rest ;)

A RA is a private retirement fund (some small employer might use them too, but they are always in your name already) in your name and is not employer pension/provident fund and you can't put it into a preservation fund, because there is no need.

10x or Sygnia have low cost index fund preservation funds.
Click to expand...

I checked with our HR, indeed our current structure is a Pension fund, from there the pension preservation fund route is the one to take. Will check out the 10x and Sygnia alternatives thanks
 
RandomGeek

RandomGeek

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UPDATE - decided to go with Sygnia and their Sygnia Skeleton Balanced 70 Fund

Thanks for the advice! Great week to all.
 
supersunbird

supersunbird

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Tag11 said:
Had a look at https://www.sygnia.co.za/docs/default-source/institutions---global-balanced-funds/2017-may-(skel70)-sygnia-skeleton-70-fund---ffs_2016_institutional.pdf?sfvrsn=48 and can't help but notice that the performance has been terrible the last year or two.

Is this still the one everyone is recommending?
Click to expand...

The super great best and most awesomenest Coronation Balanced Plus Fund did 0.5% in 2016 and 8.1% in 2015 (so slightly better in 2016 and a bit worse in 2015 than Sygnia, and AG has a TER of 1.64% vs whatever the low TER for Syngia is).

http://www.coronation.com/Assets/za...2017-May-Balanced-Plus-Fund-Comprehensive.pdf

So your point is moot. The SA market itself is flat, the rand strengthened so the 25% overseas allocations and the Rand hedge shares are flat in R terms and both these fund are/were too low in property shares (I see AG has finally uped it to an almost acceptable 13%, up from the historical 6% range, my self constructed RAs have an 20% to 25% property allocation).

If you have evidence of a recommendation from yourself on a Balanced Fund to use from 2014 that did better then the Sygnia or AG funds, that would be pretty sweet and brag worthy.

If your seriously just asking a question, now you have the answer.
 
Last edited:
Tag11

Tag11

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supersunbird said:
If you have evidence of a recommendation from yourself on a Balanced Fund to use from 2014 that did better then the Sygnia or AG funds, that would be pretty sweet and brag worthy.

If your seriously just asking a question, now you have the answer.
Click to expand...

Your answer is exactly what I expected, confirming my suspicion... :)

Thanks.
 
supersunbird

supersunbird

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Tag11 said:
Your answer is exactly what I expected, confirming my suspicion... :)

Thanks.
Click to expand...

A post expanding on this:

supersunbird said:
Would be nice if one could compare fully, unless their redo their website performance or the balanced fund fact sheet one can't compare AG 2015 and 2016 performance against Sygnia or Coro since they don't even list it like that.

At best one can compare 1 year annualised (can't do 2 since not all list that, but lets do 1 year:
AG - 1.5%
Coro - 0.9%
10X - 1.2%
Sygnia - -0.3%

Lets do 3 years too:
AG - 8.3%
Coro - 6.5%
10X - 7.3%
Sygnia - 7.9%

And 5 Years:
AG - 12.9%
Coro - 12.8%
10X - 13.3%
Sygnia - 13.6%

Interesting, that 5 year one... are you starting to take notice?

Cant do 7 years cause Sygnia isn't that old, only 10X lists that and AG and Coro jump to 10. Can't do 10 years cause only the managed funds are old enough.
Click to expand...
 
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