What are the costs?
All the Portfolio’s expenses, including the investment management fee, are deducted before performance figures are calculated. There are no separate or additional costs. The total investment charge is broken down below:
- Investment management fees are charged for the investment manager’s investment research and decision making. This figure includes Vindew Wealth’s investment management fee, which is charged on the portion of the fund invested locally, as well as the portion invested offshore.
- This includes audit fees, taxes and other administration costs.
- This is a measure of the actual costs that have been deducted from the fund over the past five years till the end of term (annualised).
The investment management fee depends on performance
The fee we charge depends on how well the portfolio performs against its benchmark.
- 30% is charged when the portfolio performance is the same as its benchmark’s performance and above.
- If the portfolio fails to achieve benchmark performance (measured yearly), we deduct 10% to the fee.
- If the fee would have been negative, no fee is charged until all underperformance has been recovered. The negative fee is carried forward and reduces the fee once it becomes positive.
Important information for investors
Securities (shares) are generally medium- to long-term investments. The value of a portfolio invested in shares may go down as well as up and past performance is not necessarily a guide to future performance. The Company does not provide any guarantee regarding the capital or the performance of its managed portfolios. Positions may be closed to new investments at any time in order for them to be managed according to their mandates. Dividends may differ as a result of the invested amount and investment date.
The annual management fee charged by Vindew Wealth is included in the Total investment charge. The total expense ratio (TER) is the annualised percentage of the portfolio’s average assets under management that has been used to pay the portfolio’s actual expenses over the years. The TER includes the annual management fees that have been charged, VAT and other expenses like audit and tax fees. Transaction costs include brokerage fees and Securities Transfer Tax. Transaction costs are a necessary cost in administering the financial product and impacts financial product returns. They should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of financial product, the investment decisions of the investment manager and the TER. Since Fund returns are quoted after the deduction of these expenses, the TER and transaction costs should not be deducted again from published returns.
As fund expenses vary, the current TER cannot be used as an indication of future TERs. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. Instead, when investing, our investment objective is always aligned with the investor’s objective and compared against the performance of the portfolio. The TER is used to evaluate whether the portfolio’s performance offers value for money. The sum of the TER and transaction costs is shown as the total investment charge.
You can obtain additional information about your proposed investment from Vindew Wealth free of charge. Simply email firstname.lastname@example.org or call our office on 065 928 6610.
Need to know more? See our frequently asked questions about opening a corporate investment portfolio with us.