You will soon be able to compare the costs of various investment products in a simple, transparent and standardised way.
The savings industry relies on complexity to hide how much they’re charging.— Magda Wierzycka, Sygnia CEO
The Money Show’s Bruce Whitfield interviewed Michael Summerton, Convenor of the Effective Annual Cost Working Group at the Association for Savings and Investment South Africa (Asisa), for his "Make Money Mondays" feature.
Scroll down for quotes from the audio below.
In future it’ll be a whole lot easier to understand what you’re paying for.— Michael Summerton
The Total Expense Ratio looks back in history to see how much of your investment you’ve given away in charges.— Michael Summerton
For the first time you’ll be able to compare, for example, the cost of a unit trust with a living annuity.— Michael Summerton
From 1 June there’ll be a very simple table outlining your costs over one, three and five years.— Michael Summerton
By understanding costs you can understand what value you’re receiving.— Michael Summerton
This article first appeared on 702 : Standardised investment fee comparison coming (no more hiding behind complexity)