KEEPING FEES CLEAR, SIMPLE AND TRANSPARENT
Dr BM Griesel
Global investors, and South Africans in particular, are being buffeted by a surge of market volatility and investor uncertainty. During these trying times, Citadel is committed to ensuring its clients reach their remarkable by helping to craft a financial roadmap that will turn dreams into realities. One way we achieve this is by presenting clients with a simple and transparent fee structure.
The ethical management of client investments and portfolios has always been a central pillar of Citadel’s business ethic and we pride ourselves on being candid when it comes to the costs associated with our client portfolios. In addition, Citadel meets all the requirements of the Financial Sector Conduct Authority and, as a member of the Association of Savings and Investments South Africa, complies fully with all disclosure directives.
With over 26 years as a leading financial services company, Citadel has held firm to the belief that clients should know exactly what fees they will be paying and how these will impact their investments.
But it is not only a quest for transparency that drives this philosophy. Citadel has always strived to keep its fee structures competitive relative to industry standards.
To this end, when Citadel’s new sliding-scale on advice fees comes into effect on 1 August 2019, most clients will see a reduction in their fees – as you can see from the table below. Our advice fee refers to the fixed fees we charge based on portfolio value and these are calculated based on a sliding scale. It is this sliding scale which has been adjusted.
As you can see from the above table, it is only in one scale bracket where some investments may now fall into a higher bracket. The previous rate for this scale brackets was 0.90%, which has now been adjusted to 1%. We have kept this increase marginal and to the absolute minimum. Our performance fee sliding scales remain unchanged, as do our flat fees.
In addition to the above tiered fee structure, the company has not made any changes to fees charged on funds. Furthermore, the Citadel review on these products has given the company the leeway to ensure that clients can enjoy maximum returns on these investments without incurring further fee hikes.
CASH INVESTMENT FEE CHANGES
One area where Citadel has been compelled to implement a new fee structure is the introduction of a nominal fee on the administration costs associated with the Nedbank Corporate Saver and Investec Corporate Cash Manager accounts.
Until now Citadel had resisted the common industry practice of charging for services rendered in relation to these accounts. However, due to the increase in the volume of transactions and new regulatory requirements, Citadel had no alternative but to implement an administration fee of 0.25% per annum of the interest earned on these accounts, plus Value Added Tax. This is to ensure better administration of these accounts on behalf of our clients.
Rest assured that any increases Citadel introduces are necessary to ensure that the company continues to offer clients the world-class, holistic financial service to which they have become accustomed, be it in the realm of investment, risk, fiduciary or forex services.
At a time where the cost of living is soaring, an easy-to-understand, transparent fee structure is just one way in which Citadel can ensure that your wealth legacy continues to grow, assuring you of a remarkable financial future.