What do your Investments Cost?

Ruvan J Grobler • March 18, 2024

Investment fees should not be difficult to understand and must at all times be transparent. Many years ago, this was not the case but in recent years the industry has standardized the terms and set out clear limits.

Annual fees set out as an EAC table (Effective Annual Cost) is relatively easy to access even for the investor by logging into their online portal. These fees will always be set out in the initial proposal and quotation before any investment is done and is a good reference point for reporting.


The total fees are shown as a percentage of the capital invested on an annual basis and includes VAT.



Here is an example of how that would look:

  •  Investment Management: The impact of the investment management charge is based on the weighted average annual fee of the underlying assets
  • Advice: The impact of the advice charge is based on the annual fee as shown in the table
  • Administration: The impact of the administration charge is based on the annual administration fee charged by the platform, which is calculated on a sliding scale
  • Other: The impact of other charges is based on fees paid in respect of model portfolios or other discretionary managers


- How are these fees paid?

The fees will automatically be paid monthly from the capital to the parties involved by the investment platform. Some investors choose to pay the advice fee direct to the advisor firm. The advice fee will in this instance not be included in the table above.



- Do fees have an effect on growth?

Fees are an expense to the invested capital and growth should be reported on after fees. Lower fees mean higher effective growth rates.

Some advisors ask higher annual advice fees than others, but these fees are justified in the amount of hours and knowledge that goes into the planning and management of an investor’s portfolio.


A “value add” may include tax- and estate planning using the underlying structures of an investor’s portfolio. Providing feedback on financial goal setting based on investment horizons in annual review meetings may also be a way to justify advice fees.


Ruvan J Grobler RFP™ (PGDip Financial Planning)



Photo by StellrWeb on Unsplash

Start Investing Today

How to invest in a volatile market

By Geo Botha • July 4, 2025
How to invest in a volatile market: 3 Principles to keep in mind ‘In the short term, markets can be very volatile depending on which news story makes headlines. However, over the longer-term investors are always rewarded for staying invested and riding out the waves.’ We know this by now, we have heard it many times before and historical data proves it. Yet it’s easier said than done. When it gets to our own money we are emotionally involved and there is a part of us that believes that this time, it might indeed be different. What if the markets never recover and I suffer permanent capital loss. And with the increase power of AI and social media, it feels like my portfolio hangs on the thread of a single Tweet. In this article Stephen Bernard, an actuarial analyst form our partner Allan Gray share his views, backed by statistics and historical evidence: Read the article here: https://www.allangray.co.za/latest-insights/markets-and-economy/how-to-invest-in-a-volatile-market/

Invest Globally, Prosper Locally: Offshore Strategies for SA Investors

By Ruvan J Grobler • July 1, 2025
In an increasingly interconnected global economy, South African investors are finding compelling reasons to look beyond local borders when building long-term wealth. Offshore investing offers access to broader, more resilient markets, particularly in developed economies with stronger currencies and more stable political environments. Given South Africa’s constrained economic growth, fiscal uncertainty, and the rand’s vulnerability as an emerging market currency, allocating a portion of your portfolio offshore can serve as both a growth engine and a hedge. Investing offshore provides exposure to world-leading companies, industries, and fund managers that are often unavailable in the local market. It allows investors to participate in innovation-led growth in sectors like technology, healthcare, and clean energy, which are typically underrepresented on the JSE. Most importantly, it supports diversification—not just across asset classes, but across geographies, currencies, and economic cycles—reducing concentration risk tied to the South African economy. Key Reasons to Invest Offshore: Diversification: Reduce reliance on South African markets and benefit from a broader global opportunity set. Currency Hedge: Protect your wealth against rand depreciation by investing in hard currencies. Global Access: Gain exposure to top-tier international asset managers and world-class investments. Growth Potential: Participate in faster-growing economies and industries driving global expansion. Important Considerations for South African Tax Residents Before investing offshore, it’s essential to evaluate how your investment aligns with your broader financial planning, particularly around access, succession, taxation, and estate planning: Flexibility: Will you have access to your funds when needed? What types of investments can you hold? Succession Planning: Can your investment be transferred to your heirs? Will Capital Gains Tax (CGT) apply? Tax Compliance: Is the structure tax-efficient, and what must be declared on your tax return? Estate Structuring: Will your investment attract foreign estate duties? Is an offshore executor required? An Efficient Offshore Solution: The Offshore Wrapper A tailored offshore wrapper can simplify many of these complexities, offering a cost-effective and administratively streamlined solution. Key benefits include: No exposure to offshore estate duties No South African executor fees on death No inheritance tax in the offshore jurisdiction Ability to nominate beneficiaries directly for smooth succession Creditor protection for assets held within the structure Consolidation of various investments (e.g., share portfolios, funds) under one structure Minimum investment from $25,000 Tax Treatment The offshore wrapper also provides significant tax efficiency: Taxes are calculated and settled annually by the platform—no action required by the investor CGT is capped at 12%, and income tax at 30% Taxes are applied to USD returns, meaning rand depreciation is not taxed Reach out to me at ruvan@bovest.co.za for more information. Ruvan J Grobler RFP™ (PGDip Financial Planning)