Retirement Annuity Options

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mintydroid

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Looking for a retirement annuity, mainly for the tax benefit. I've been doing research and the retirement options sometimes don't give performance fact sheets.

I've got unit trusts and will be using the tax free accounts as well so the RA is a sideline thing.

The money should do something while it's in there so which are the most aggressive ones available?
 
ETFSA or Allan Gray if you want to self manage it and avoid any contract issues.
 
SauRoNZA said:
ETFSA or Allan Gray if you want to self manage it and avoid any contract issues.
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I've checked 10x and no performance data, I've checked Sygnia and it's currently doing 7% on the Skeleton 70 and Etfsa RA doesn't have performance data as far as I can see.

Also, looking at Coronation and Allan Gray but not sure which Reg 28 fund will do.
 
If I recall Allan Gray has a guide somewhere to choose the funds to adhere to Reg 28.

Think they only have performance data after five years.

But as usual past performance doesn't indicate future performance.
 
mintydroid said:
Looking for a retirement annuity, mainly for the tax benefit. I've been doing research and the retirement options sometimes don't give performance fact sheets.

I've got unit trusts and will be using the tax free accounts as well so the RA is a sideline thing.

The money should do something while it's in there so which are the most aggressive ones available?
Click to expand...

I've had my RA with Allan Gray for around ten years now and feel that they (as well as other active managers) aren't completely transparent on the fees they charge, and whether their funds truly outperform the index. I'm thinking of moving over to Sygnia, which in effect offers passively managed funds that track the index (like 10x), and as a result, is able to offer performance fees of only 0.4% : http://www.sygnia.co.za/ Allan Gray's fees on their Balanced Fund, by comparison, is 1.69%
 
hyperian said:
I've had my RA with Allan Gray for around ten years now and feel that they (as well as other active managers) aren't completely transparent on the fees they charge, and whether their funds truly outperform the index. I'm thinking of moving over to Sygnia, which in effect offers passively managed funds that track the index (like 10x), and as a result, is able to offer performance fees of only 0.4% : http://www.sygnia.co.za/ Allan Gray's fees on their Balanced Fund, by comparison, is 1.69%
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I've found this article. It's very interesting that the etf RA's are managed differently. Sygnia is tactically managed which means it changed according to market conditions.

www.iol.co.za/business/personal-fin...s-compare-1.1693224?noredirect=#.VYYxFNwaLqA
 
mintydroid said:
Looking for a retirement annuity, mainly for the tax benefit. I've been doing research and the retirement options sometimes don't give performance fact sheets.

I've got unit trusts and will be using the tax free accounts as well so the RA is a sideline thing.

The money should do something while it's in there so which are the most aggressive ones available?
Click to expand...

Remember most aggressive doesn't necessarily mean best performing. And I doubt you'll find an aggressive balanced fund.

If doing R2000 per month or lumpsums into the RA, you should easily be able to chose the underlying unit trusts in the RA. If its under R2000pm but more than R1000pm its doable too, but you might not be able to get exposure directly to say a property fund, and will have to do an internal switch in from one of the other funds (the bond fund for example) that contributes every months. If you want a longer example/description of this, just ask and I'll post about it later.

With a platform (LISP) like Allan Gray, you can choose from a few underlying funds from other companies as well (there is a small cost to it). Coronation just does Coronation funds on their platform.

You can even get Satrix ALSI Index Fund and Satrix MSCI World Equity Index Feeder Fund on Allan Gray now.
http://www.allangray.co.za/factsheets/# > under other local funds
 
mintydroid said:
Thanks, it's hard finding things on their website.
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Pleasure, if there is anything you want to ask on that one (its a bit different to the usual ones), feel free. My employer fund is with them so I have figured a few things out. Like the SA equity part is a Top 60 fund, with a limit of 6% on the companies representation in the index as can be seen in the Top 6 SA Shares as % of DB 10X Index column. Gets rebalanced twice a year. So that's why Naspers might currently be on 6.8% (of that SA Equity part), but that will get rebalanced to 6%.
 
mintydroid said:
Looking for a retirement annuity, mainly for the tax benefit.
Click to expand...
Anyone have a link to something that explains the tax benefits? I've also just started looking into RA's and haven't dug that deep yet.
 
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