Sanlam : Stable Bonus Fund

[zerocool2009]

Is anyone investing or having this fund part of their savings ?

I am tracking this for years. In March it took a bad dip (I suspect covid reason related), but it remains down, but the JSE recovered well.

I assume this is like the Sanlam Echo Bonus RA ... (all BS talk). Sanlam would give any reason to say why its massively down

Reading now whats their fees (2.34%)

 

[Koosvanwyk]

Is anyone investing or having this fund part of their savings ?

I am tracking this for years. In March it took a bad dip (I suspect covid reason related), but it remains down, but the JSE recovered well.

I assume this is like the Sanlam Echo Bonus RA ... (all BS talk). Sanlam would give any reason to say why its massively down

Reading now whats their fees (2.34%)

It is a guaranteed fund that offers some level of capital guarantee (you cannot lose a certain % of your capital invested, I am not sure what that % is, most likely 80% to 90% guaranteed).

In any event, you pay for that guarantee ( capital charge) that is included in the 2.34% quoted (P.S. the fees on this in the institutional space is +- 1.4%, the 2.34% sounds incorrect?).

It is suppose to smooth returns, the monthly bonus is not directly linked to market performance as that is not how the policy was designed to operate, doing a comparison between the bonus rate/return of the policy to the JSE (especially when focusing on such a short period) is not really meaningfully.

It is highly likely that the bonus/return after fees for March and April was significantly higher that what a pure market linked fund would have provided (would be surprised if the net return was below zero) as the Insurer would have declared a bonus / return out of its own balance sheet (from the smoothing reserwe). They would now be trying to restore their balance sheet ( improve the funding level of the smoothing reserwe) by declaring bonus/returns that are lower that what a pure market linked portfolio would return.

That is how they attempt to smooth the return

 

[zerocool2009]

It is a guaranteed fund that offers some level of capital guarantee (you cannot lose a certain % of your capital invested, I am not sure what that % is, most likely 80% to 90% guaranteed).

In any event, you pay for that guarantee ( capital charge) that is included in the 2.34% quoted (P.S. the fees on this in the institutional space is +- 1.4%, the 2.34% sounds incorrect?).

It is suppose to smooth returns, the monthly bonus is not directly linked to market performance as that is not how the policy was designed to operate, doing a comparison between the bonus rate/return of the policy to the JSE (especially when focusing on such a short period) is not really meaningfully.

It is highly likely that the bonus/return after fees for March and April was significantly higher that what a pure market linked fund would have provided (would be surprised if the net return was below zero) as the Insurer would have declared a bonus / return out of its own balance sheet (from the smoothing reserwe). They would now be trying to restore their balance sheet ( improve the funding level of the smoothing reserwe) by declaring bonus/returns that are lower that what a pure market linked portfolio would return.

That is how they attempt to smooth the return

A quote related to y our fees question:

"Fund Manager Sanlam Investment Management (SIM)
Risk Level Cautious
Commencement Date 01/10/1982
Fund Management Fee 2.34% per annum"

 

[TofuMofu]

Is anyone investing or having this fund part of their savings ?

I am tracking this for years. In March it took a bad dip (I suspect covid reason related), but it remains down, but the JSE recovered well.

I assume this is like the Sanlam Echo Bonus RA ... (all BS talk). Sanlam would give any reason to say why its massively down

Reading now whats their fees (2.34%)

I wouldn't touch Sanlam....not again.

 

[zerocool2009]

I wouldn't touch Sanlam....not again.

They said their "Actuarial Department" will get back to me.

If I see how their RA's work (echo bonus) ... I think I must cash in and just move.

Its a savings pocket (for life cover (which aint change), as it added up over the years

 

[TofuMofu]

They said their "Actuarial Department" will get back to me.

If I see how their RA's work (echo bonus) ... I think I must cash in and just move.

Its a savings pocket (for life cover (which aint change), as it added up over the years

I had an RA with them for many many years. Got it when I was in uni. The growth was laughable. I moved it to 10X a few years ago and been very happy with them.

 

[zerocool2009]

I had an RA with them for many many years. Got it when I was in uni. The growth was laughable. I moved it to 10X a few years ago and been very happy with them.

I do know their Echo Bonus RA product. (Utter BS honestly).

This is somewhat more complicated, as its life cover with a savings leg.

But if the number read BS to me, I am moving (getting straight life cover rather)