Hey how is this I had to decide to transfer my fund or take the money so did a quick analysis had a lump sum 6 years ago I transfered together with the deposits for 6 years at a 10% interest rate based on the deposits ( without compounding it ) I would have had more money than I got in my fund statement by 40 000 rand thats before the tax of 36% If I had a bought a house with the same Money six years ago I would have been better off as the tax would only have been on the capital gain reason why, I used the same amount six years ago to by a holiday home which even in this depressed market has been valued at about 100 000 more than my provident fund statement.So come to the conclusion we are paying these provident fund commissions fees to these so called specialist investors for no reason we would be better off using all that money we pay them just to buy shares in the bank.Shares should be traded not collected and try take your provident fund money and keep it as cash see what you have to pay ( If you were a trustee where would your money be now ? shares or cash )
& if you had taken that cash, bought a greenhouse in J-Bay, stocked it with Hydroponic Ganja & sold it over the December period to the stressed out Vaalies.... A six week job with a huge return. LOL I agree with you - why pay a bunch of Techno-Trade-Cats to poek with yr cash. You can do better yourself.
Rat, the trustees for your provident would come from your own company or are elected by your company. The asset managers managing your fund would have been given mandates to follow in investing the money from your fund. They are limited by these mandates that are set out by your trustees. The risk profiles of your provident fund, buying a property and investing in cash are very different. Bottom line is you cant say the managers are not worth it till you know what the details are. What is the funds benchmark and how has it performed relative to it?
Trustees are governed by legislation used to be called prudent investment guidelines-basically you could not have more than around 60% in equities around 10 % in property,5% in cash and balance in bonds as I recall.It follows the returns are much different to the returns of shares or property.You would tend to find this account would lag a bull market but beat a bear market-probably the right sort of thing to do with retirement money.Of course the salesman,administrator,investment manager,trustees,fsb and goverment all want their fees and this takes money out of account.It's even worse if death,disability and funeral insurance costs are taken off the investment money-this can make a big dent in the savings-I used to be in this business-if you know what you are doing and get the appropriate tax relief a provident fund can be a good security blanket for your old age(assuming you make it) but you will never get rich this way.