Question:
Does the 10X Umbrella Fund permit in-fund preservation?
For example, a member resigns from his Employer (who belongs to 10X's Umbrella Fund), and wishes to still keep his benefit preserved within the 10X Umbrella, as an individual participant. Is this allowed? Alternatively, a member reaches retirement age and instead of taking his full benefit out of the Umbrella Fund, he chooses to still keep his benefit inside the Fund.
Answer:
In line with legislative changes and National Treasury’s final Default Regulations, released on 25 August 2017, the 10X Investments pension and provident funds allow for in-fund preservation.
When leaving your company, you can opt-in by ticking “remain invested in my current fund” option on the withdrawal form provided by your HR department. The fee applicable should you choose this option is 0,5% pa of asset value, plus VAT. There is no administration fee.
This is a great way to continue to benefit from our award-winning investment strategy, low fees, and competitive returns. You will continue to receive your annual benefit statement and can access all your retirement fund information on the Investor Portal.
Your savings will remain invested until the day you decide to withdraw, or retire (from age 55 onwards). You will however no longer be able to make monthly contributions to the fund.
Alternatively, if you fail to complete a withdrawal form, you will, by default, remain a in your existing fund invested in a cash portfolio. You will continue to pay the investment management fee applicable to your employer’s fund, as mandated by the Default Regulations. You will not incur an administration fee however. You will need to complete a withdrawal form to notify the retirement fund of what action to take (e.g. transfer the money to another fund, take a portion in cash, remain invested in the current fund).
