Streaming issues? Report here
Lester Kieviet 2019 1500 BW 2 Lester Kieviet 2019 1500 BW 2
The Midday Report with Lester Kiewit
12:00 - 13:00
volume_up
volume_mute

Up Next: Lunch with Pippa Hudson
See full line-up
The Midday Report with Lester Kiewit
12:00 - 13:00
Home
arrow_forward
Business
fiber_manual_record
Lifestyle

Retirement annuities – here’s what happens if your fund manager goes bankrupt

17 September 2019 3:39 PM
Tags:
Retirement
Personal finance
ra
investing
investments
Pension
Sygnia
INVEST
Sygnia Asset Management
personal finances
retirement annuity
fund manager
fund managers
retirement annuities
ras
asset managers
asset manager

A lot can happen between now and your retirement date. What if your fund manager goes bust?

A retirement annuity (RA) is a great, tax-efficient way to save for retirement.

They are, however, extremely long-term investments, impossible to cash out before the age of 55.

So, what if you took one out with, for example, Sygnia Asset Management as a 30-year-old in 2019?

A lot can happen in 25 years; will Sygnia Asset Management still be around in 2044?

What happens to your retirement savings if it goes bankrupt?

pixabay.com

Nothing happens to your investments if your fund manager goes bust

Your RA is just a “wrapper” - managed by your fund manager - holding various investments.

You are not investing in Sygnia Asset Management (or Allan Gray or Liberty, etc.) if your RA is with it.

Your investments are in the companies the fund manager chose to invest in on your behalf.

In other words, you’re investing in Naspers, Standard Bank, MTN, etc.

Because you’re not investing in the fund manager (you’re simply paying them to manage your investments) it doesn’t matter all that much if it goes under.

Another one will simply take over the funds under its management.

The Collective Investment Schemes Act protects your Retirement Annuity

The Financial Services Board regulates asset managers.

The law prohibits fund managers from holding investors’ funds on their balance sheets.

Your funds are therefore safe no matter the financial state of the company you chose to manage your Retirement Annuity.

The Financial Services Board ensures the enforcement of the “The Collective Investment Schemes Act” which compels fund managers to make use of a separate trust with independent trustees and auditors.

Your Retirement Annuity will not be affected if your fund manager goes bankrupt and the manager’s creditors will have no claim against your investment.


17 September 2019 3:39 PM
Tags:
Retirement
Personal finance
ra
investing
investments
Pension
Sygnia
INVEST
Sygnia Asset Management
personal finances
retirement annuity
fund manager
fund managers
retirement annuities
ras
asset managers
asset manager

Recommended

More from MyMoney Online

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Supersaver Julia has changed lives, and she can change yours! – Bruce Whitfield

9 July 2020 3:00 PM

Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.

Share this:
Read More arrow_forward

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

'Demand for property below R3 million is starting to recover'

8 July 2020 1:35 PM

For some properties – with interest rates at half-a-century lows – it’s becoming cheaper to buy than to rent.

Share this:
Read More arrow_forward

Covid-19 insurance 123rf 123rfbusiness 123rflifestyle 123rfpersonalfinance

Shareholder activists grill Santam about 'business interruption insurance'

7 July 2020 6:47 PM

The lockdown did it – not the pandemic – so we can’t pay, argues Santam. Bruce Whitfield interviews Tracey Davies of Just Share.

Share this:
Read More arrow_forward

Aisha Pandor SweepSouth Alen Ribic

Job won’t make you rich. You must earn in your sleep - Aisha Pandor, SweepSouth

6 July 2020 8:39 PM

Bruce Whitfield talks to SweepSouth cofounder Aisha Pandor about her attitude to money (hopes and fears, successes and failures).

Share this:
Read More arrow_forward

Crazy funny man working from home on desktop computer 123rf 123rfbusiness

Job hunting? This CEO is hiring and interviewing remotely – he has advice

2 July 2020 2:15 PM

"We’ve hired people we haven’t met in person," says Karl Hammerschmidt. "There are things you can still do to impress."

Share this:
Read More arrow_forward

hyundai i20

Best 2nd-hand cars below R80 000 – actual examples you can buy, right now

1 July 2020 3:05 PM

"The car that stood out the most was a 2014 Hyundai i20 with just 67 000 on the clock," says motoring journalist Ciro de Siena.

Share this:
Read More arrow_forward

Naked Insurance

Car insurance from R180 per month – and you don’t pay if you don’t drive

30 June 2020 8:03 PM

Meet Alex Thomson of Naked Insurance, a high-tech company with vastly lower operating costs than most traditional insurers.

Share this:
Read More arrow_forward

Toyota-car-logo-vehicle-automotive-industry-car-manufacturers-123rf

Best 2nd-hand car to buy for less than R80 000

25 June 2020 2:42 PM

Motoring journalist Ciro de Siena discusses a few easy-to-maintain, reliable pre-owned cheapies for under R80 000.

Share this:
Read More arrow_forward

rich wealthy businessman salary 123rf 123rfbusiness

'Eskom has 3rd-highest average salary in South Africa'

25 June 2020 11:58 AM

MultiChoice, Vodacom, Eskom and the SABC pay the highest average salaries in South Africa, according to MyBroadband.

Share this:
Read More arrow_forward

Finance Minister Tito Mboweni

[WATCH] Finance Minister Tito Mboweni presents historic emergency budget

24 June 2020 11:48 AM

Finance Minister Tito Mboweni's vital address is done and dusted. Watch it, right here.

Share this:
Read More arrow_forward