Investments Pricing Guide - FNB - First National Bank - FNB · PDF fileYou have the ability to invest directly in shares listed on the local and international stock exchanges or work

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Pricing Guide 1 July 2017 – 30 June 2018

Investments

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FNB Investments 01

Invest in Unit TrustsIntroduction 02

Fees 03

Invest in SharesIntroduction 04

Fees 05

Trade on local and global exchangesIntroduction 08

Fees 10

Portfolio ManagementIntroduction 16

Fees 17

Contact us 20

Index

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Our customers have evolved and they need more from their investments. Now customers can access a range of investment solutions that will help them achieve their medium and long term goals.

FNB Investments

Share Investing Securities Portfolio managementUnit Trusts

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Invest in Unit TrustsThe FNB Horizon Series has been specifically designed to take the complexity out of investing and offer investors superior fund solutions, with exposure to inflation-beating returns over different time horizons.

There are five funds to select from, each fund has been designed to optimise returns over a specified time horizon. You can simply select the fund that best matches your investment horizon. Investors benefit from multi-manager funds that offer value for money, managed by the brand that you trust.

2%IncomeFund

Investment Term

Return Benchmark

StableFund

In times of market volatility your investments should not suffer losses of more than

ModerateFund

GrowthFund

Growth Plus Fund

6% 15% 25% No limit

Inflation+1%

Inflation+2%

Inflation+3.5%

Inflation+5%

FTSE/JSE All Share Index

1-2 years

3 years

5 years

7 years

10 years+


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Who is this forThe FNB Horizon Series Unit Trusts have been designed to out pace inflation and are the ideal investment solution for anyone looking to invest for the medium to long term.

Investment Management charges

Fee Description Income Fund

Stable Fund

Moderate Fund

Growth Fund

Growth Plus Fund

Asset Management Fees 0.63% 0.76% 0.92% 1.04% 1.21%

Fund Costs 0.03% 0.03% 0.03% 0.03% 0.03%

TER of underlying Funds 0.05% 0.10% 0.11% 0.13% 0.12%

TER of Fund of Funds 0.71% 0.89% 1.06% 1.20% 1.36%

Transaction Costs 0.03% 0.07% 0.12% 0.15% 0.15%

Total Investment Charges 0.74% 0.96% 1.18% 1.35% 1.51%

Initial, exit and switching fees 0% 0% 0% 0% 0%

Fee Structure B1 Class B1 Class B1 Class B1 Class B1 Class

All figures INCLUDE VAT. The TER of the underlying funds, Fund Costs and Transaction Costs cannot be determined accurately because of the short life span of the Financial Product.

* Calculations are based on actual data where possible and best estimates where actual data is not available.

Administrations charges are on a flat fee of 0.25% (excl. VAT) depending on assets invested on the platform.

Advice fees may differ from person to person and are agreed upon by the advisor and the client and will be provided in your quote, application and statement. This fee is facilitated by the platform.

TER=Total Expense Ratio

Product and Administration Fee

Tax Free Savings Account 0.25% (excl. VAT)

Investment Account 0.25% (excl. VAT)

Retirement Annuity 0.25% (excl. VAT)

Preservation fund 0.25% (excl. VAT)

Living Annuity 0.29% *

Endowment fund 0.29% *

* VAT not applicable

AUM = Assets under administration

Fees will be calculated on total assets across all products on the platform.

Advisor Fees

Your financial advisor can charge an Initial Fee of between 0% - 3% on AUM (plus VAT) and an Ongoing Fee of 0% to 1% on AUM (plus VAT).

For more information or to apply for the FNB Horizon Series, log onto www.fnb.co.za


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Invest in sharesShare Investing gives you access to invest directly in JSE shares and Krugerrands – online and in real time.

Did you know?You can invest safely in Krugerrands online, simply by opening a Share Builder or Share Investor account.

Investing in shares and directly in gold (through Krugerrands) is a great way to build your wealth, as it allows you to diversify your investment and benefit from company profits and dividends over time.

Who is this for?Whether you are new to investing in shares, or a seasoned share veteran, we offer various options that will suit your level of experience in the share market:

Share Saver

Invest monthly in the top 100 JSE listed companies from as little as R300 per month. This means you don’t have to choose your own shares.

Share Builder

Choose from a pre-selected range of JSE blue chip shares to help you start your Share Investing Portfolio. You can also invest directly in Krugerrands via this product.

Share Investor

If you have some experience in the share market, Share Investor allows you to invest in the full range of JSE listed shares and Krugerrands in real time.

Tax-Free Shares

Invest in the top 100 JSE listed companies and all dividends and capital gains are tax free.


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Fee Descriptions Share Saver & Tax-Free Shares (based on portfolio value)

Share Builder Share Investor

Monthly Fees

Monthly account fee

R0 - R250 000 **0.50% per annum plus VAT

R35 R65*R250 001 – R1 000 000

0.45% per annum plus VAT

>R1 000 001 0.35% per annum plus VAT

Subscriptions to inContact, Online, Cellphone and Telephone Banking and the FNB Banking App

Free

Krugerrand safekeeping fee - 0.86% of market value per annum

*For Share Investor Accounts, a monthly account fee of R75 is charged on Non-resident and Emigrant Blocked accounts. No VAT is payable on Non-resident Accounts.

**The monthly account fee for Share Saver and Tax-Free Shares account is 0.5% per annum charged monthly with a minimum of R20 per month.

Fee Descriptions Electronic Channels Telephone Branch

Transaction Fees

Withdrawals - - R60 + R1.90 per R100

Transfers Free R65.00

Payments R3.75 R65.00

Fee Descriptions Share Saver & Tax-Free Shares (based on portfolio value)

Share Builder Share Investor

Trade fees (of trade amount)

Trade OptionDelayed trades

(Today at 15:00)1st trading day

of monthDelayed trades

(Today at 15:00) Now trades Delayed trades (Today at 15:00)

Investor Protection Levy - - - 0.0002% plus VAT -

STRATE Settlement Charge - - -

0.005787% (minimum

R10.19 maximum R73.49) plus VAT

-

Securities Transfer Tax (only on share purchase) - - - 0.25% -

For the purpose of calculating fees all “sell” instructions shall be considered a delayed trade – even if placed on the 1st trading day of the month. This is only applicable to Share Saver and Tax-Free Shares.

Share Investor delayed trades option only applicable to shares contained in the Share Builder basket.


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Other account related fees Fee

Deposits

Cheque deposits* FNB ATM and FNB branch (per deposit) R45 + R5 per Cheque

Cash deposits

FNB ATM with envelope or Automated Deposit (ADT) R0.90 per R100 (no minimum)

FNB Branch R60 + R1.90 per R100

ENC upliftment fee and special clearance R115

Deposit of post-dated cheques (per cheque) R45 + R5 per Cheque (same as normal cheque deposit)

*The standard cheque clearance period is 7 days. Clearance could differ per account. Kindly call 0860 11 22 44 or your branch for details.

Non-standard services Fee

Share transfer (per counter)

Account transfer in Free

Account transfer out R135

Internal transfer Free

Portfolio move in Free

Portfolio move out R100

Other fees

Telephonic trade instructions 0.5% with a minimum of R100

Cancellation (off-exchange instruction) R140

Normal dematerialisation (per counter) R105

Urgent dematerialisation (per counter) R1 500

Normal rematerialisation (per counter) R1 200

Urgent rematerialisation (per counter) R1 250

Exchange (per counter) R105

Indemnities (excl insurance per counter) R390

Value add fees – price alert Share Investor only R0.35 (incl VAT) per alert that gets sent


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Non-standard services Fee

Other fees

Registration/Change of beneficiary R45 (excl VAT)

Krugerrand Deliveries POA

Portfolio Evaluation R40

Dividend Tax Refund (per refund processed per beneficial owner) R150

Brokerage Fee 1st Trading day Delayed trades (Today at 15:00)

Delayed trades (Today at 15:00)

Now trades Delayed trades (Today at 15:00)

0.10% plus VAT 0.60% (minimum of

R40) plus VAT

0.80% (minimum of

R80) plus VAT

0.60% (minimum of

R80) plus VAT

0.80% (minimum of

R80) plus VAT

Share removal (per instruction) Fee

Normal: Value of securities

R1 – R50 000 R990

R50 000 – R2 000 000 R1 550

R2 000 000+ R2 650

Fast Track: Value of securities

R1 – R50 000 R1 650

R50 000 – R2 000 000 R2 750

R2 000 000+ R4 800


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Trade on local and global exchanges

FNB Securities is a full service traditional and online stockbroker that offers you both local and global share trading and investing.

You have the ability to invest directly in shares listed on the local and international stock exchanges or work with skilled investment professionals.

Who is this for?Whether you are looking to buy and sell shares for the short term or hold for the long term, FNB Securities has a solution to help you make the right investment decisions. You can buy and sell shares independently via the FNB App, FNB Securities online or telephonically, or work with our investment professionals.


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Local Trader

Offshore trading account (Global Trader)

If you’re passionate about trading, investing or even learning about local stocks, then Local Trader is for you. Achieve your trading and investing goals by buying or selling shares on the Johannesburg Stock Exchange (JSE). The JSE allows you to invest in shares, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), Warrants and Preference Shares.

You can choose your level of service. Either take full control of your account and make all decisions, or choose to work with a relationship manager who will deliver an investment portfolio tailored to your needs.

Diversify your trading and investment portfolio by going global. Buy and sell shares on more than 15 exchanges around the world with access to various instruments. You can invest offshore using your foreign investment allowance. Alternatively you can transfer assets using our transfer facility.

You can choose your level of service. Either take full control of your account and make all decisions, or choose to work with a relationship manager who will deliver an investment portfolio tailored to your needs.

We help you on your investment journey by:

• Providing state-of-the-art, simple, interactive trading and charting tools

• Allowing you to trade easily online, over the phone or on the FNB App - anytime, anywhere.

• Giving you the ability to trade over the phone by talking to investment specialists from our trading team

• Making both delayed and live share prices available

• Giving you access to the latest market research and share analysis

• Letting you set smart price alerts that will notify you when share prices move and set a stop-loss to control how much risk you take on

• Sharing live news updates from our dedicated trading team

Continue your investment journey offshore by:

• Choosing one of three major currencies for your transactional account: US Dollar (USD); Euro (EUR); or the Great British Pound (GBP).

• Trading and investing online

• Having 24 hour access to your portfolio

• Getting access to our dedicated trading team

• Giving you access to the latest market research and share analysis

Achieve your trading and investing goals by buying or selling shares on the Johannesburg Stock Exchange (JSE) and on global exchanges.


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Local Trader

Relationship Manager Clients

Bespoke Discretionary Bespoke and Discretionary

Advisory fee (% of the portfolio value)

Portfolio management fee (% of the portfolio value)

Brokerage fees Bond facilitation fee

Assets under Management *% of Assets under

Management% of Assets under

Management Up to R500 000: 0.75% or R100*

*minimum R100 per transaction.

0.25% per nominal value

of bond traded

R 3 000 000 to R 5 000 000 1.25% 1.10%

R 5 000 001 to R 10 000 000 1.15% 1.00%

R 10 000 001 to R 15 000 000 1.00% 0.85% R 500 000 to R 1 000 000:

0.50%R 15 000 001 to R 20 000 000 0.85% 0.70%

R 20 000 001 to R 30 000 000 0.65% 0.55%

Over R 1 000 000: 0.35%R 30 000 001 to R 50 000 000 0.45% 0.40%

R 50 000 001 and above Negotiable Negotiable

* Portfolios below the minimum criteria will be charged at 1.25% for Bespoke and 1.10% for Discretionary mandates.

Non-Discretionary Brokerage fee

R 0 to R 50 000 1.25% (min R100 per transaction)

R 50 001 to R 100 000 1.00%

R 100 001 to R 500 000 0.75%

R 500 001 to R 1 000 000 050%

Over R 1 000 001 0.35%

Non-Discretionary Bond facilitation fee

Minimum R500 flat fee

R 0 to R 5 000 000 0.50%

Over R 5 000 001 0.35%

Basic fee of R50 per contract note for transactions in listed securities. Brokerage fees are applied on a sliding scale basis i.e. effectively it is a blended rate. Brokerage and Bond fee is per transaction. Portfolio management and Advisory fees are applied on the bands of Asset under Management i.e., not on a sliding scale basis.


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All fees and commissions quoted exclude third party broker’s commission effective, and any third party charges, government

levy, stamp duty, withholding taxes (if any) and further charges of external settlement agents or custodian entities. All fees

are exclusive of VAT unless otherwise indicated.

Online Trading and Investing Clients

The fees under this section apply to all clients that have entered into a relationship with FNB Securities via the Dealing Desk, FNB Securities online trading or telephonically.

Non-Discretionary Access to trade online or via the Dealing Desk

Flat fee0.50%

*minimum R100 per transaction.

Non-Discretionary Bond facilitation fee

Minimum R500 flat fee

R 0 to R 5 000 000 0.50%

Over R 5 000 001 0.35%


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Other fees applicable

The fees in this section apply to both the Relationship Manager Clients and Online Trading and Investing Clients.

Other levies charged by the JSE

Ad hoc service fees

Cash balances ** Administration fees Multi-manager funds

STRATE levy of R10 to R60 dependent on value of transaction.

Securities Transfer Tax (0.25%) is levied on the value of purchase transactions, before the brokerage fee and VAT.

Investor Protection levy at 0.0002% of trade value.

Registration of scrip in our nominee company: No charge.

Debit balance: Prime + 3.00% is charged on all debit balance accounts.

Registration of scrip other than in our nominee account: R 500 per certificate.

Replacement of lost scrip: R 1000 plus insurance per certificate.

Estate Late valuations: R 100 per share (min of R 500).

Cash deposit fee: Amount charged by FNB Securities bankers. (Under the JSE rules FNB Securities may not accept or receive a cash deposit in excess of R 5 000.)

Cash deposit penalty fee: R 1000 per cash deposit plus bank charges.

Rematerialisation of shares: R 1200 per counter.

Urgent Rematerialisation of shares: R 1500 per counter.

Urgent Dematerialisation of shares: R 1500 per counter.

Withdrawal / upliftment from transfer secretaries: R 100 per counter.

CSDP exit fee: R 100 per counter.

Households***: A fee of 0.20% per annum is charged monthly on cash balances held in money market.

Corporates***: A fee of 0.20% per annum is charged monthly on cash balances held in money market.

A fee of 0.88% per annum is charged monthly on cash balances held with JSE Trustees.

A fee of R10 per payment made to clients’ bank accounts.

A fee of R100 per “live” payment made to clients’ bank accounts.

A fee of R85 per transaction for all third party payments.

A fee of R85 per month applies for all Securities Based Lending accounts.

A fee of R70 per month if you choose to receive electronic communications (eg.Contract notes, statements, tax statements).

A fee of R125 per month if you choose to receive printed and posted communications (eg. contract notes, statements, tax statements).

Transact five times within a month and monthly account fee is waived.

FNB Securities does not charge initial fees.

Annual commission: 0.50% per annum, if applicable.

Administration fee: 0.25% per annum on Market Value, excluding Ashburton Money Market Funds and Atlantic Stable Income Funds.

0.20% per annum based on Market Value relating to Ashburton Money Market Funds and Atlantic Stable Income Funds.

Management and service fees apply – a fee breakdown is available on request.

** JSET is the interest rate paid by the Johannesburg Stock Exchange on Cash.

*** Please refer to the website for an explanation of households and corporates


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Other fees applicable continued

Offshore Fees

Currency transactions 0.50% per a transaction with a minimum R500 per a transaction

Asset Transfer Capacity minimum of R500 per transaction (not applicable for discretionary clients)

R 0 to R 20 000 000 0.40%

R 20 000 001 to R 50 000 000 0.30%

R 50 000 001 to R 75 000 000 0.20%

R75 000 001 and above 0.20%

Market Data

User Type 15 Minutes Delayed1 Snapshot2 Equities and Indices

Streamed Live Pricing3

Value Added Fee4 (Corporate Actions

& EOD)

Non-Professional Free

Equities - R0.16 per snapshot

Indices - R0.09 per snapshot

R125.00 per month R18.00 per month

Non-Professional Free

Equities - R0.16 per snapshot

Indices - R0.09 per snapshot

R445.00 per month R60.00 per month

1 15 Minutes Delayed - Prices are defaulted to a 15 minute delay for all holdings and any instruments displayed on the quote or trade page.

2 Snapshot (Equities & Indices) - Real-time market update including the price, aggregate display quantity, number of orders and display position for each price level. Equities (depth of 5) capped at R99.20 per month for Non-Professional and R368.00 per month for Professional. Indices capped at R20.00 per month for Non-Professional and R82.80 per month for Professional.

3 Streamed Live Pricing – Prices of indices and equities are continuously updating to reflect the current value of holdings and any instruments. If you switch from delayed to live pricing the full fee will be levied and will not be pro-rated. You can switch to delayed pricing at any time.

4 Value Added Fee (Corporate Actions & EOD) – Value added record types for equities which are packaged into EOD Data products. This includes corporate actions.

Please refer to the website for additional terms and conditions in relation to the fees.

Default live pricing option – 15 minute delayed, this option is free.


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Global Trader Fee Schedule

All fees and commissions quoted exclude third party broker’s commission effective, and any third party charges, government levy, stamp duty, withholding taxes (if any) and further charges of external settlement agents or custodian entities. All fees are exclusive of VAT unless otherwise indicated. Unless otherwise stated all fees quoted are per annum but charged monthly. All fees charges are quoted at % per a transaction unless otherwise stated.

Please be advised that the fees below do not include additional fees that may be charged by the exchange you are trading on or taxes, levies or other duties that may be applicable. For additional information on the type of additional fees, taxes or other relevant information that may affect what you are being charged please visit [insert website address].

You agree to be bound by the latest fee schedule which may be amended from time to time. You will be notified of any changes to the fee schedule.

Share Execution Fees: Shares and ETF’s

Commission for European Exchanges

Exchange Exchange Name Symbol Execution fees for Discretionary, Bespoke and Non-Discretionary

Minimum execution fees (this minimum fee applies

regardless of whether Non-Discretionary,

Discretionary Bespoke client or whether the trade is executed by

a Relationship Manager, online or the dealing desk)

Spain (BME Spanish) Stock Exchange SIBE 0.35% 20 EUR

Netherlands Euronext Amsterdam EURONEXT 0.35% 20 EUR

Belgium Euronext Brussels EURONEXT 0.35% 20 EUR

France Euronext Paris EURONEXT 0.35% 20 EUR

Germany Frankfurt Stock Exchange XETRA FSE 0.35% 20 EUR

Austria Wiener Börse (Vienna) Stock Exchange VIE 0.35% 20 EUR

Italy Milano Stock Exchange MIL 0.35% 20 EUR

UK London Stock Exchange LSE_SETS 0.35% 12 GBP

UK London International Order Book LSE_IOB 0.35% 24 USD

Switzerland Swiss Exchange SWX 0.35% 36 CHF

Switzerland Swiss Europe Exchange VX 0.35% 36 CHF

Denmark OMX Nordic Stock Exchange Copenhagen OMX 0.35% 39 DKK

Sweden OMX Nordic Stock Exchange Stockholm OMX 0.35% 80 SEK

Finland OMX Nordic Stock Exchange Helsinki OMX 0.35% 20 EUR

Norway Oslo Stock Exchange OSE 0.35% 20 EUR


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Commission for American and Canadian Exchanges

US NYSE MKT (American Stock Exchange) AMEX 0.35% 20 USD

US NASDAQ NASDAQ 0.35% 20 USD

US NASDAQ (Small Cap) NSC 0.35% 20 USD

US New York Stock Exchange NYSE 0.35% 20 USD

US New York Stock Exchange (ARCA) NYSE Arx 0.35% 20 USD

Canada Toronto Exchange TSE 0.35% 35 USD

Canada Toronto Exchange TSX 0.35% 35 CAD

Commission for Asian / Australasian Exchanges

Australia Australia Securities Exchange ASX 0.35% 30 AUD

Data subscriptions for real-time prices

At FNB Securities Global all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, you will have to subscribe independently to the individual exchange via third party providers.

A subscription to live price data from an exchange gives you access to live prices on Shares and ETFs from the particular exchange.

An Online Subscription Tool is available in the Trading Platform. In the tool, you will find a list of available exchanges and news services alongside the applicable monthly fees. You will be able to subscribe and unsubscribe to services of your choice. Further information can be found in the Subscription Tool guide, which is also available on the Trading Platform.

Level 1 or Level 2 data

Level 1 price data refers to the first level of the order book on the exchange. With a Level 1 subscription you can see live, streaming, bid and offer prices.

With a Level 2 price data subscription you can see live, streaming prices as with Level 1 but on top of this you can see the market depth of bid/offer prices and the amounts available at each price point.

Please note that we are entitled to vary and/or increase such fees and charges immediately without notice when the change is to your benefit, or the grounds for changes are due to external circumstances beyond our control. Please refer to the General Terms and Conditions of Business available on our website for further information.


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The fees under this section apply to all clients who have entered into a relationship with FNB Securities via a Relationship Manager.

Bespoke – Advisory Fees

Minimum Band Commission (%) -

R1 Million R 1 000 000 – R 3 000 000 1.50%

R 3 000 001 – R 5 000 000 1.25%

R5 000 001 – R 10 000 000 1.15%

R 10 000 001 – R 15 000 000 1.00%

R 15 000 001 – R 20 000 000 0.80%

R 20 000 001 – R 30 000 000 0.65%

R 30 000 001 –R 50 000 000 0.50%

R 50 000 001 and above Negotiable

Execution Fees: Bonds

Brokerage fees for Bond Trading

Commission - FNB Securities Global Minimum Commission – FNB Securities Global

0.20% 160 EUR

Other fees applicable

Custody Fee Currency Conversion Fee

Custody for stock portfolio – if you do not conduct at least

one trade per quarter

Equity Research for active clients

Bank withdraw fee Exit Fee

Custody fee is charged at 0.15% per annum, charged monthly.

1.00% is automatically applied to the client account

when the trade is executed, where the instrument currency

differs from the account currency.

In such a case the inactivity fee is

calculated as 0.025% (0.10% p.a. and min

EUR 5) of the average end month value of the stock portfolio during the quarter.

If you make one trade (in any instrument)

or more during a quarter no inactivity

fee is charged.

Equity Research & Stock Screener EUR 1.99/month

(Private), US$ 180.00/month (Professional).

GBP 10.00 fee will be levied for each cash withdrawal.

For transfers of shares or a

repository to another bank, an exit fee

will be charged for all clients upon

final closure and settlement of the

account. The fees are as

follows: All listed shares: 25 EUR per

ISIN (max. 160 EUR.

Offshore Fees

Currency transactions – 0.50% per a transaction with a minimum R500 per a transaction. Asset Transfer Capacity (“ATC”) – minimum of R500 per transaction (only applicable when using FNB Securities ATC)

R 0 to R 20 000 000 0.40%

R 20 000 001 to R 50 000 000 0.30%

R 50 000 001 to R 75 000 000 0.20%

R75 000 001 and above 0.15%

Please note that we are entitled to vary and/or increase such fees and charges immediately without notice when the change is to your benefit, or the grounds for changes are due to external circumstances beyond our control. Please refer to the General Terms and Conditions of Business available on our website for further information.


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Portfolio management

We offer a range of portfolio management services to meet your needs.

Bespoke Personal Portfolio

This portfolio has been specifically developed for investors who require very personal wealth management within a disciplined, risk-controlled, investment management process.

Equity Portfolio

This portfolio’s objective is to maximise returns to the investor over the medium to long term through investing in FTSE/JSE listed shares. The portfolio’s returns are based on the ability of the All Share index to deliver returns above inflation and the ability of the fund manager to identify undervalued securities within the asset class.

Dividend Income PortfolioThe portfolio is actively managed and invests in local equities. It aims to provide investors with an attractive dividend yield over the long term. This is based on the selected companies’ ability to generate sustainable earnings growth through the investment cycle.

Global Leaders Equity Portfolio

This should be considered as a long-term investment option. The portfolio is unconstrained by individual benchmarks, enabling concentrated focus on a selection of world-class mega caps which should deliver sustainable above average returns over time through the strength of their market position in their respective industry.

Balanced Portfolio

The portfolio is actively managed and invests in local equities, listed property, bonds, cash as well as offshore assets. The objective is to deliver risk adjusted returns over the medium to long term.

Property Portfolio

The portfolio aims to outperform the South African listed property index on a sustainable basis. The objective is to invest in high quality listed property companies with robust earnings and long term growth prospects. The portfolio can be used for capital growth or income generating purposes.

Preference Share Portfolio

The portfolio consists of a selection of FTSE/JSE listed preference shares. It aims to provide investors with an attractive interest rate linked income in the form of dividends and is aimed at investors looking for an attractive income.

Fixed Income Portfolio

This portfolio is conservatively managed and aims to generate stable and optimal income returns from interest earning securities. A combination of bonds, fixed deposits, money market and other cash instruments is used to achieve these objectives.

Our portfolios are structured with the goals of long term capital appreciation and income generation in mind, while targeting diversification and risk protection at the same time.


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Fee schedule

The annual management fees payable to Ashburton portfolio management are detailed in the schedule below. Fees will be levied to portfolios depending on the level of engagement required in meeting their obligations to the client or within the portfolio. There are three varying sliding scales which are based on the level of client interaction and/or involvement from the portfolio manager. These fees are only applicable to new business and are not applicable to existing clients who already had an agreement relating to portfolio management services before 31 July 2015. Please note that the fees detailed in this document are asset management fees only and do not include any advice fees. All fees exclude VAT.

No client interaction/involvement required

Annual fee

This option refers to agreements where a client signs a discretionary mandate and invests in a selected solution or model portfolio. The client will not have any input into the portfolio construction. The advisor will be the primary contact for the client and the portfolio manager will not take instructions from, or communicate with, the client directly. The minimum investment amount is R1 million per client and the asset management fee scale for this option is:

R1mil - R5mil 0.85%

R5mil - R10mil 0.75%

R10mil - R15mil 0.65%

R15mil - R20mil 0.55%

R20mil - R30mil 0.40%

R30mil - R50mil 0.30%

> R50 mil Negotiable


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Fee schedule

Limited client interaction/involvement required

Annual fee

Should the client require access to a dedicated portfolio manager for feedback or reporting on the above mentioned solutions or model portfolios together with an investment advisor an additional fee will be levied on the portfolio. The portfolio manager will only be able to report on the investments held within the portfolio for information purposes and will not make any changes to the portfolio as the solutions within these mandates are managed centrally. The minimum investment amount is R3 million per client and the asset management fee scale for this option is:

R3mil - R5mil 1.10%


R10mil - R15mil 0.85%

R15mil - R20mil 0.70%

R20mil - R30mil 0.55%

R30mil - R50mil 0.40%


Client interaction/involvement required

Annual fee

This management arrangement is referred to as the co-pilot approach. The investment portfolio will be structured this way when a client requires a tailor made/bespoke portfolio. Where a client wants to have input into the initial investment structuring and requires on-going input or communication directly from the portfolio manager this arrangement will best suite their needs. The primary contact for the client remains the investment advisor but in this instance the portfolio manager can contact the client to discuss markets, specific trends or trades (stock level). The level of interaction and involvement will differ from client to client. Based on the client’s needs they will sign a discretionary or a non-discretionary mandate which will form the basis for the agreement and interaction. The portfolio manager will be available for quarterly feedback sessions and other ad-hoc client meetings. The minimum investment amount for this structure is R3 million per client and the asset management fee scale is:

R3mil - R5mil 1.25%


R10mil - R15mil 1.00%

R15mil - R20mil 0.80%

R20mil - R30mil 0.65%

R30mil - R50mil 0.50%



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Contact us

Telephone: 0873 Invest (0873 468 378)

Share Investing:[email protected]

Investments:[email protected]

[email protected]


Documents

Investments Pricing Guide - FNB - First National Bank - FNB · PDF fileYou have the ability to invest directly in shares listed on the local and international stock exchanges or work