RA options for doing a section 14

Eti1 said:
Indeed. They have a listed property index fund. Thanks a lot for this, never thought of doing it this way.
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Pleasure.

If it was me, I'd have it like this:
30% - Sygnia Top 40 Index Fund
20% - Sygnia DIVI Index Fund
25% - Sygnia Skeleton International Equity Fund of Funds
20% - Sygnia Listed Property Index Fund
5% - Sygnia All Bond Index Fund

In fact, if I changed jobs to a employer with a managed fund, I'd stop my Coronation RA contributions, put my 10X provident fund money into a 10X preservation fund and start an Sygnia RA with above funds, for my monthly contributions.
 
supersunbird said:
Pleasure.

If it was me, I'd have it like this:
30% - Sygnia Top 40 Index Fund
20% - Sygnia DIVI Index Fund
25% - Sygnia Skeleton International Equity Fund of Funds
20% - Sygnia Listed Property Index Fund
5% - Sygnia All Bond Index Fund
Click to expand...

Looks good. I already have the Sygnia 70 Fund so I figure I will just add property and see the mix I can come up with.

I do like that International equity fund though. I plan to get down on that in a TFSA with them. Just need to make some time for all the printing
 
Eti1 said:
Looks good. I already have the Sygnia 70 Fund so I figure I will just add property and see the mix I can come up with.

I do like that International equity fund though. I plan to get down on that in a TFSA with them. Just need to make some time for all the printing
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Obviously if you add property fund in the RA portfolio with the Skeleton the other percentages for local equity and such will go down slightly.
 
supersunbird said:
Me neither. So what's also nice in my opinion about having a few different RAs or preservations funds, is when you retire, you can convert them into life or living annuities as need arises, don't have to do it in one big go.
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Very good point I didn’t consider.

Had three for ages with old Preservation Fund at Alexander Forbes.

RA at Old Mutual and the my company one.

So will be back to three now and it’s something to consider going forward.

But even at Old Mutual it was split into two for some reason related to regulation change as I recall.
 
supersunbird said:
Pleasure.

If it was me, I'd have it like this:
30% - Sygnia Top 40 Index Fund
20% - Sygnia DIVI Index Fund
25% - Sygnia Skeleton International Equity Fund of Funds
20% - Sygnia Listed Property Index Fund
5% - Sygnia All Bond Index Fund

In fact, if I changed jobs to a employer with a managed fund, I'd stop my Coronation RA contributions, put my 10X provident fund money into a 10X preservation fund and start an Sygnia RA with above funds, for my monthly contributions.
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So I decided to play around with Sygnias funds to make a personalised RA like you described.

I don't know whether I overlooked something but from what i gathered, and I don't know whether this is limited to Sygnia or whether it's what Reg 28 actually says, the limits don't apply only to your RA, but to each individual investment you make as well. For example I tried to just do a small ad hoc investment to play around and to get a good mix which I could just schedule as debit orders in the future.

It did not work! Well that is to say, the interface works well, but it was actually quite tricky. For instance, I obviously couldnt contribute 100% to a Property Fund or to a global equity fund. Should have been obvious, but hey. Also, I couldn't even make it 25% property or international equity, because I had to then balance it with local equity, non-compliant. Then add more bonds, still non-compliant! More SA equity, less property, non-compliant still. And so it went.

As an aside, I started wondering. Do the REITs in the Top 40 count as equity exposure, property exposure, or both?

Eventually I tried your mix, and it was way non-compliant.

Almost threw in the towel, but after introducing a money market fund and swapping the cheap international equity fund for the more expensive global high equity fund (by accident, darn it! the names are so similar), this is what I came up with:

All Bond Fund: 25%
International Flexible Fund of Funds: 20%
SA Listed property fund: 17%
Top40 Fund: 15%
SA swix Fund: 15%
Money Market Fund: 8%

Not terribly unhappy with that, although I have to check out that international fund.
 
Eti1 said:
So I decided to play around with Sygnias funds to make a personalised RA like you described.

I don't know whether I overlooked something but from what i gathered, and I don't know whether this is limited to Sygnia or whether it's what Reg 28 actually says, the limits don't apply only to your RA, but to each individual investment you make as well. For example I tried to just do a small ad hoc investment to play around and to get a good mix which I could just schedule as debit orders in the future.

It did not work! Well that is to say, the interface works well, but it was actually quite tricky. For instance, I obviously couldnt contribute 100% to a Property Fund or to a global equity fund. Should have been obvious, but hey. Also, I couldn't even make it 25% property or international equity, because I had to then balance it with local equity, non-compliant. Then add more bonds, still non-compliant! More SA equity, less property, non-compliant still. And so it went.

As an aside, I started wondering. Do the REITs in the Top 40 count as equity exposure, property exposure, or both?

Eventually I tried your mix, and it was way non-compliant.

Almost threw in the towel, but after introducing a money market fund and swapping the cheap international equity fund for the more expensive global high equity fund (by accident, darn it! the names are so similar), this is what I came up with:

All Bond Fund: 25%
International Flexible Fund of Funds: 20%
SA Listed property fund: 17%
Top40 Fund: 15%
SA swix Fund: 15%
Money Market Fund: 8%

Not terribly unhappy with that, although I have to check out that international fund.
Click to expand...

That sucks, doesn't make sense.

When I use the Coronation one to play around it tells me exactly where I am non compliant. I would think index funds would bring you closer.

Obviously I don't have the Sygnia one to play with...
 
supersunbird said:
That sucks, doesn't make sense.

When I use the Coronation one to play around it tells me exactly where I am non compliant. I would think index funds would bring you closer.

Obviously I don't have the Sygnia one to play with...
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Ja something that said "Non-compliant because ABC" would have helped immensely.
 
I know someone who has a Sanlam RA (with that Echo bonus) .... well, by the looks of it this Sanlam product works in the same way how my Liberty RA worked.

Milk you dry with fees (have a carrot in front of you for decades to come).
 
I have a lump sum in my RA (Liberty). I want to move it but can't decide between 10X or Sygnia. Can anyone summarize a few advantages / disadvantages between the two.

Also how easy is it to do a section 14 between 10X and Sygnia? Are there any hidden penalties?
 
nothing is really hidden ... ITS ALL IN THE CONTRACT !!!!

Search for termination values / penalty fees

In mine they disclosed EVERY single fee, from making the RA paid up, to switching funds, doing a section 14 you name it !
 
Napalm2880 said:
I have a lump sum in my RA (Liberty). I want to move it but can't decide between 10X or Sygnia. Can anyone summarize a few advantages / disadvantages between the two.

Also how easy is it to do a section 14 between 10X and Sygnia? Are there any hidden penalties?
Click to expand...

Well...

10X:
-you are invested in the single fund they have (there are different levels thought, high equity and low equity and such)
-the high equity fund is 50% JSE Top 60 with a 6% max limit for single equity that gets rebalanced whenever (so Naspers might be 7% of that portion, 3.5% of overall fund, and then get rebalanced to 6% as some stage), 22% is foreign equity, 2.5% is foreign cash, 5% SA property, 12% SA bonds, 8.5% SA cash

sygnia:
-if you invested the skeleton 70 fund (available in boutique and alchemy options), it's similar to the 10X , but from what I understand, Sygnia can (and does?) manage the asset class (equities, property, cash, bond) percentages
-in the boutique option, you can also access other Sygnia unit trust funds for your RA, compose your own RA out of the various funds if you want, no platform fees charged
-on the alchemy option you have access to other unit trusts form other providers as well, not just the sygnia ones, this option has a platform fee

The above is just a very brief explanation from what I have read up on these.
 
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