Sygnia Direct Investment

Advantages 

• Instant access to your investment.

• No set term or investment premium.

• Flexibility to invest in a wide variety of cost-effective index-tracking unit trusts and offshore funds.

Limitations 

• You may transfer your investment to another individual or legal entity, but this may activate Capital Gains Tax on your investment.

• You may not cede your investment in the Sygnia ForLife Living Annuity, nor use it as security for any debts or commitments.

Your Sygnia Direct Investment will be subject to the following taxes:

• Income tax on any interest income earned;

• Dividends Withholding Tax on any dividends earned; and

• Capital Gains Tax on any disposal of your investment.

Sygnia will provide you with an annual IT3b certificate, which details the total interest and dividends earned for the tax year. You are required to declare these amounts on your annual tax return. The dividend income earned is subject to Dividends Withholding Tax (DWT) at a rate of 20%. The South African Revenue Service requires Sygnia to pay DWT on your behalf where applicable.

Sygnia unit trust and unitised life funds
No administration fees apply on the Sygnia Lifetime Income Portfolio, Sygnia unit trusts or unitised life funds.

All externally managed unit trust funds
Administration fees are charged as follows when you are invested in external-manager unit trusts.

ETFs and ETNs
Administration fees are charged as follows when you invest in ETFs and ETNs on the Sygnia Alchemy Platform.

Minimum R500 per month. Of this amount, the minimum investment amount in any ETF must be R250.

* 0.40% (excl. VAT) is levied on the proportionate value of the external-manager funds below R2 million.
** 0.20% (excl. VAT) is levied on the proportionate value of the external-manager funds above R2 million.

Please note: While Sygnia does not charge any administration fees in respect of its own funds, we consider all your investments when assessing the R2 million threshold, including your investments in Sygnia funds. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request, or our fees page.

Investment management fees
These vary widely across the Sygnia Alchemy fund range. For a detailed breakdown of fund-specific fees, please refer to Sygnia Alchemy Funds on our website.

Lifetime Income Portfolio fee
The fee varies depending on the life company underwriting the annuity. Please request fees directly from the Sygnia Client Services Centre.

Financial advisor fees
These are negotiable with your financial advisor within the following parameters:
Initial fee: Maximum of 3% (excl. VAT) deducted prior to investing
Annual fee: Maximum of 1% per annum (excl. VAT).

If an initial fee in excess of 1.50% is deducted, the annual fee is limited to 0.50% per annum.

• Copy of South African green barcoded ID/ South African Smart ID Card, birth certificate (if minor) or valid passport (if a foreign national).

• Proof of residential address not older than 3 months.

• Proof of bank details not older than 3 months.

• Proof of deposit/transfer into the relevant Sygnia bank account.

• If a unit transfer is required, please provide a recent statement of your current investment.