What does the advent of the EAC mean for 10X?

The advent of Effective Annual Cost (EAC) is superfluous for clients when examining the 10X offering.

EAC was introduced by ASISA so that customers have one standard with which to measure and compare the total cost of owning and accessing an investment like a retirement annuity, including investment management, administration, advice, penalties for early termination, cost of loyalty bonuses and guarantees.

10X was set up to provide a simple retirement solution with one all-in fee for the client. In addition to the transaction costs, which every portfolio incurs in management of the underlying investments, 10X charges clients one flat fee that covers investment management and administration.

At 10X there are no penalties for leaving early (usually the clawing back of fees paid to financial advisers as an upfront lump sum to sell the product). There are no costs for loyalty bonuses or guarantees. The entire fee comes through in the Investment Management section of EAC and it is consistent across time. All of the additional costs that would have been paid to other providers are invested on behalf of the client.

A client could pay a financial advisor to invest with us; in this case his/her specific EAC would be higher. Our one solution is designed so that clients do not need to ask or pay for advice to select what fund they are invested in.