Sygnia Itrix ETF fees

[backstreetboy]

As you might be aware, Sygnia has acquired db X-trackers (RF) Proprietary Limited from Deutsche Bank. The acquisition of the management company in no way affects your existing investments in the DBX ETFs. As an investor, the only change you will see is the rebranding of the products from DBX ETFs to Sygnia Itrix ETFs.

Sygnia dbX fee's

1. You can immediately transfer from the existing db X-trackers Investment Plan to the Sygnia Alchemy Platform. The fee savings to you are very material.

servIces	current Investment Plan fees (excl VAT)	sygnIa alchemy Platform fees (excl VAT)
Administration Fee	1% p.a.	First R2m: 0.20% p.a. Over R2m: 0.10% p.a.
Stockbroking Fee	0.10% per transaction	0.10% per transaction
Debit Order Fee	R4.50 per transaction	Nil

2. If you register as an individual investor through the Sygnia Alchemy Platform, we will immediately reduce the management fees you currently pay in respect of the DBX ETFs as follows:

db X-trackers MSCI World ETF

Investment sIze	current management fee (excl VAT)	management fee vIa sygnIa Alchemy plATform (excl VAT)
Under R100m	0.60% p.a.	0.50% p.a.
Over R100m	0.40% p.a.	0.30% p.a.

db X-trackers Eurostoxx 50 Index ETF, db X-trackers FTSE 100 Index ETF, db X-trackers MSCI Japan Index ETF and db X-trackers MSCI USA Index ETF

Investment sIze	current management fee (excl VAT)	Investment sIze	management fee vIa sygnIa Alchemy plATform (excl VAT)
First R10m	0.75% p.a.	First R2m	0.55% p.a.
R10m - R100m	0.60% p.a.	R2m - R100m	0.50% p.a.
Over R100m	0.40% p.a.	Over R100m	0.30% p.a.

3. Once you register on the Sygnia Alchemy Platform you can access all our ETFs either directly or via a tax-free savings account at no extra cost. By September you will also be able to access ETFs through our retirement annuities, preservation funds and living annuities. The Sygnia Alchemy Platform fee covers the cost of all savings products. This is not the case for any of our competitors who charge an extra tier of fees for the provision of savings products.

4. If you are using another ETF platform to access our ETFs or other ETFs, you can transfer to the Sygnia Alchemy Platform which charges lower administration fees, no debit order fees and lower brokerage. We have provided a comparison of costs for your convenience as these are often not apparent to investors, who tend to focus on management fees or TERs alone and ignore the access costs.

investment siZe	etfsa platform: all etfs	itransact platform: all etfs	satriXnoW: satriX etfs only	sygnia alchemy platform: sygnia itriX etfs	sygnia alchemy platform: other etfs
Investment Plan Fee	First R0.5m: 0.65% pa R0.5m-R1m: 0.50% pa Over R1m: 0.35% pa	First R0.5m: 0.65% pa R0.5m-R1m: 0.50% pa Over R1m: 0.35% pa	0.20% pa (on recurring investments)	First R2m: 0.20% pa Over R2m: 0.10% pa	First R2m: 0.40% pa Over R2m: 0.20% pa
Stockbroking Fee (per transaction)	0.08%	0.08%	0.25% plus 0.07% administration fee added to the STRATE Settlement Fee	0.10%	0.10%
STRATE Settlement Fee and Investor Protection Levy (per transaction)	0.005987%	0.005987%	0.005987%	0.005987%	0.005987%
Debit Order Fee	Nil	Nil	Nil	Nil	Nil
Telephone Trades	Nil	Nil	R50	Nil	Nil
Termination Charges	Nil	Nil	Termination: R150 per security	Nil	Nil

Can someone explain this in layman's terms?

Now how do I transfer my EE ETF's to them?

 

[Muttley]

Also got the mail.
Their fee's are generally lower and no debit order fee if you switch to their platform.

I e-mailed them - It's a mission which I've put off till next week...

Here's was their reply:

"Thank you for contacting Sygnia Financial Services.

In connection with your below enquiry please find my feedback below.

- As an investor in the DBX ETF’s you have the option to transfer this across to Sygnia in order to receive the lower fee structure that Sygnia is currently offering.
- If you are invested directly into the Db-x tracker ETF’s then we require the DBX transfer out form. Should you be invested into the Db-x tracker ETF’s through a stock broker or another lisp platform then we will require their transfer out form. This needs to be sent to us with the Sygnia ETF Investment application form that I have attached for you.
- Please note the fica documentation is illustrated on the application form. If you are a new investor we require full fica in order to load you on as an investor on the Sygnia Alchemy Platform.

Please note Sygnia has also launched the Sygnia ETF Tax Free Savings Account for which you are able to invest new funds into should you not hold a Tax Free Savings account that has exceeded the annual limit already."

Basically I need to get a transfer out form from DBX and complete their application form with FICA docs etc

Not sure what you need to do for EE though but I must say that they completely over complicated that whole e-mail which they sent out.

 

[backstreetboy]

Thanks see they updated their website. Will move all my ETF's to them. Will make things easier.

https://www.sygnia.co.za/docs/defau...441826bb7e4363819367ff0000ba709f.pdf?sfvrsn=4

 

[Eti1]

This is great from Sygnia. Just not sure, after briefly scanning the docs, whether it is worthwhile to move my Dbx funds over from EasyEquities. Seems to be 0,1% brokerage and 0.2% annual fee at Sygnia vs 0.25% brokerage and no admin fee. Since the date for allowing TFSA moves is now 1 March 2018, it's moot at the moment.

But I would definitely consider buying new Dbx ETFs with Sygnia, that 0,1% brokerage fee is pretty sweet.

 

[stealthywealth.co.za]

I must say I am a little disappointed at Sygnia's "price cut". I was expecting more, especially in light of the new Satrix international ETF offerings. Sygnia reduced the TER's of the DBX funds by 0.1%, but the only way this will benefit you is if you are already on their platform (at 0.1% fee p.a.). If you were on a free platform (for example Easy Equities) and you transfer to them, you end up paying the same TER, and in fact it seems you will end up paying 0.1% more TER if you have less than R2Million - because then Sygnia's platform fee is 0.2% p.a.

For a worldwide ETF, you will probably be better off moving into the new Satrix Worldwide Feeder ETF (TER of 0.35%). Yes the Sygnia brokerage is low, but the increased TER will work more and more against you as your investment grows (and brokerage saving will become less and less of an issue).

You can check out my full take on the new products (including the new Easy Equities US offering) over here - What To Do About The New

 

[Eti1]

I must say I am a little disappointed at Sygnia's "price cut". I was expecting more, especially in light of the new Satrix international ETF offerings. Sygnia reduced the TER's of the DBX funds by 0.1%, but the only way this will benefit you is if you are already on their platform (at 0.1% fee p.a.). If you were on a free platform (for example Easy Equities) and you transfer to them, you end up paying the same TER, and in fact it seems you will end up paying 0.1% more TER if you have less than R2Million - because then Sygnia's platform fee is 0.2% p.a.

For a worldwide ETF, you will probably be better off moving into the new Satrix Worldwide Feeder ETF (TER of 0.35%). Yes the Sygnia brokerage is low, but the increased TER will work more and more against you as your investment grows (and brokerage saving will become less and less of an issue).

You can check out my full take on the new products (including the new Easy Equities US offering) over here - What To Do About The New

Yes, slightly disappointing in that we always want more for less. Just reading through the communication from Sygnia now, and your post helped.

So if I understand correctly, if I were to move my Dbx ETFs from EasyEquities I would pay the same ter, have lower brokerage, but have an admin fee.

But if I buy new dbx ETFs with Sygnia, then I would pay a reduced ter (it's not as straightforward as - 1% though), lower brokerage fees, but have an admin fee of 0.2% per annum..

Hmm. You are right, it is not an overwhelmingly great offer from Sygnia, but it's darn competitive. Plus, the new etfs they are introducing look like they could be interesting.

 

[Eti1]

I see Sygnia's new ETFs listed today. Not available on EasyEquities yet though.

 

[backstreetboy]

HOLDING OF SECURITIES IN SAFE CUSTODY

"Company name" is hereby authorised to have a personal interest as principal in any transaction on your behalf of your local securities. Should they disclose that every time or is it not needed?

 

[backstreetboy]

They are really confusing this. You can invest via their alchemy platform or you can register on Sygnia Securities.