The campaign is aimed at helping South Africans rebuild their wealth as the country emerges from almost two years of pandemic and related emergency regulation. The offer runs until February 28.
“Many South Africans have lost a lot in the past couple of years, and some will feel like they are starting from the beginning again,” says 10X's CEO Tobie van Heerden. “We hope this campaign will help South Africans to start to rebuild their finances after two tough years, which came on the back of the wrecking ball of State Capture.”
He adds: “Our limited offer to investors is truly zero fees. There are no hidden costs, small print or hidden agendas. We have worked with our service providers and we have all have decided to chip in to help South Africans.”
The accompanying campaign of seven wildlife videos features animals – from ants to peacocks and sharks – suffering setbacks before going on to pick themselves up and start again, apparently undeterred. Each video is narrated in a light and humorous way by a variety of South African comedians: KG Mokgadi, Angel Campey, Dalin Oliver, Rob van Vuuren, Louw Venter and Faniswa Yisa.
Watch the videos
From the ant whose freshly built anthill is flattened to the peacock who just cannot catch the eye of a female no matter how he flaunts his gorgeousness, the videos are amusing but poignant as South Africa gets into what will hopefully be a year of recovery and rebuilding.
“South Africans have a reputation for being resilient and each video is a metaphor for that toughness,” says Van Heerden. “The videos suggest we follow the lead of the creatures featured and start rebuilding ‘with zero’.”
10X, which has always focused on the importance of keeping fees low, has invested resources over the years in educating consumers about investing, specifically about the damage that high fees can wreak on even the most well-constructed investment portfolio.
10X has launched a variety of new products and funds in the past year, moving beyond its earlier incarnation as a retirement-focused provider. 10X has offered zero fees for a period of time on new retirement products in the past.
“Investors, whether they are putting their money into retirement products or discretionary products like unit trusts, very often forfeit a high proportion of their investment growth, ie their earnings, to high fees,” says Van Heerden.
“What we want to do with this limited period of zero fees is to kickstart growth for investors. They will enjoy some accelerated investment growth after a couple of years of not being able to save. After the fee-free period, they have the option to stay invested in a product with very low fees, which will mean more money for them down the line."
Van Heerden explains that “an additional 1%, even half a percent, here and there can compound over the years to become a large hole”.
“You can save diligently into the right investment vehicle for years, but it can all go horribly wrong thanks to high costs,” he adds. “A small difference often has a disproportionately large effect.”
Van Heerden says he believes that the wildlife videos will engage South Africans and encourage them to start rebuilding their wealth.
“We hope that the fee reductions on the unit trust and tax-free savings accounts will provide the extra nudge needed to inspire people,” concludes Van Heerden. “We want to give South Africans that kick-start they need to get back into the good habit of saving and rebuilding their wealth.”
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised FSP (number 28250). 10X Index Fund Managers (RF) (Pty) Ltd is a Manager registered under the Collective Investment Schemes Control Act, 2002.
