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What is Effective Annual Cost (EAC)?

The Effective Annual Cost (EAC), expressed as a percentage of your investment amount, is a measure which has been introduced to allow you to compare the cost you incur when you invest in different financial products.

The EAC is made up of four charges which are added together, as indicated below:

  • Investment Management 
  • Advice 
  • Administration 
  • Other

Some of the charges may vary, depending on your investment period. The EAC calculation assumes that an investor terminates his or her investment in the financial product at the end of the relevant periods shown in the table

PLEASE NOTE: To determine the EAC for a specific Satrix ETF, please utilise the EAC calculator available just a short scroll down, on our Satrix.co.za site HERE

To use the calculator simply:

Select the particular ETF you are interested in from the Fund dropdown. 

Select whether you will contribute a lumpsum amount or monthly.

Input the lump sum or monthly amount you want to invest in the cell.

Once you've input the data and hit the light-blue calculate button, the calculator will present the 4 different charges making up the EAC, as well as the total EAC figure for 1, 3, 5, and 10 year periods.

Notes

The investment management component includes all costs and charges for managing the underlying investments within the fund; The advice fee charge is not applicable to the SatrixNOW platform; Administration includes the cost of administering the recurring investment facility which allows investors the ease of automatically allocating their ETF trade on a monthly basis. It is calculated as 0.20% (Excl. VAT) of the investment amount. The recurring investment fee is not applicable to lump-sum investments; Other charges includes brokerage charges (0.25% excl. VAT), Investor protection levy (0.0002% excl. VAT) and STRATE electronic settlement fees (0.075% excl. VAT) incurred on the buying and selling of ETFs. All calculations include value-added tax (“VAT”) at the prevailing rate, where applicable. Where applicable, inflation has been taken into account when calculating the EAC.

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Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities and an authorised financial services provider in terms of the FAIS. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange.

ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF Minimum Disclosure Document and or on the Satrix website.

Performance is based on NAV to NAV calculations of the portfolio. Individual performance may differ to that of the portfolio as a result of initial fees, actual investment date, dividend withholding tax and income reinvestment date. The reinvestment of income is calculated based on actual distributed amount and factors such as payment date and reinvestment date must be considered.

*Note exchange prices are delayed in accordance with regional exchange rules.South African prices are delayed by 15 minutes; North American prices are delayed by 15 minutes.