Automated Outsourcing Services (AOS) will, from July 1, reduce the fees it charges to administer the exchange traded funds (ETFs) on its investment platform.
AOS’s current annual administration fees are: 0.8 percent on investment amounts up to R100 000; 0.75 percent on amounts between R100 001 and R250 000; 0.7 percent on amounts between R250 001 and R1 million; and 0.45 percent on amounts over R1 million.
From July 1, the annual fees will be: 0.7 percent on amounts up to R500 000; 0.55 percent on amounts between R500 001 and R1 million; and 0.4 percent for amounts over R1 million.
You can invest in ETFs via a stockbroker, instead of using the AOS platform, because ETFs are both collective investment schemes and listed securities.
However, if you wish to invest comparatively small amounts each month, you will have to use the investment plans offered by the various ETF sponsors, which, in turn, use the AOS platform to administer their plans.
The AOS fees are additional to the ETF fees.