What are primary asset management fees?

Last updated on 8th March, 2019 at 11:49 am

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What are primary asset management fees?

Most types of investments incur a fee for managing them – meaning that a % of the amount you’re investing is paid to the investment company who manages the investment. The size of this fee depends on a number of things, including who you’re investing with, the type of investment, and how much you’re investing.

What doesn’t change, however, is that you should always be able to clearly see how much is being deducted in fees via your investment statements. Any charges like primary asset management fees must also be laid out in the paperwork you sign when you open an investment.

If you’re unsure of the kinds of fees you’re being charged, and why, speak to your financial planner – their job is to ensure that you understand these charges, and that you’re getting the best value for money. Click here to speak to a financial planner.

Understanding fee classes

Collective investment funds can have multiple fee classes. This allows managers to charge different investors different fees for the same performance. Certain fee classes also include additional charges such as intermediary and platform fees in the fund fee. As an investor, you should understand how your unique circumstances will impact your investment journey.

In cases where the fund invests in other funds, the fees you’re charged may be layered. The fund management fee will not necessarily give an accurate indication of the total fund management fees you will pay. In this case, the total expense ratio of the fund (which will include the layers of fees) will give a better indication of the cost of the portfolio.

Ultimately, the lower your asset management fees, the more you’ll save in the long run. Because we believe in rewarding financially responsible behavior, as a Sanlam Reality member, you can enjoy up to 100% off primary asset management charges when you invest in one of Sanlam Investment’s flagship funds. The returns can be enormous.

Here’s an example of the impact primary asset management fees can have on your investments over time

Get the most out of your investment over time. Save up to 100% off primary asset management charges with a Sanlam Investment flagship fund. Click here to find out more.