Understanding fees and costs

How Fynbos fees work

Fynbos uses a simple, transparent fee structure. Unlike many investment platforms that charge percentage-based fees on your total portfolio (Assets Under Management or AUM fees), Fynbos charges a flat monthly subscription fee.

• No AUM fees: We do not charge a percentage of your investments

• No brokerage fees: We do not charge fees when you buy or sell investments

• No advisor fees: We do not charge for the investment guidance built into our platform

• Flat subscription: One predictable monthly cost, regardless of how much you invest

This approach means the more you invest, the more cost-effective Fynbos becomes compared to percentage-based platforms.

Subscription plans

Fynbos offers two subscriptions to suit different needs:

Your subscription is billed on the first day of each month. If you upgrade mid-month, you only pay for the remaining days of that month.

Fund fees (Total Expense Ratios)

While Fynbos does not charge AUM or brokerage fees, the underlying investment funds have their own costs called Total Expense Ratios (TERs). These are industry-standard fees charged by fund managers for managing the investments.

What is a TER?

A Total Expense Ratio is the annual cost of running a fund, expressed as a percentage of your investment. It includes the fund manager's fees, administrative costs, and other operational expenses. TERs are automatically deducted from the fund's returns before you see them.

What this means for you:

• TERs are built into the fund's performance - you do not pay them separately

• When you see a fund's return, TERs have already been accounted for

• Lower TER funds keep more of your returns

Comparing fee types

Understanding the different types of fees helps you make informed decisions about where to invest:

Fynbos only charges a platform subscription. Other platforms may charge AUM fees, brokerage fees, or both in addition to subscription costs.

Why flat fees matter

Percentage-based fees can significantly impact your long-term returns due to compounding loss. When fees reduce your invested amount, you lose not just the fee itself but also the growth that money could have generated.

Example: Consider two investors with R100,000, both earning 10% annually over 30 years:

• Investor A (0.5% AUM fee): Ends with approximately R1.2 million

• Investor B (flat fee only): Ends with approximately R1.7 million

The difference comes from compounding loss - the AUM fee reduces the principal each year, which reduces future growth.

Tip: Use our Cost Calculator to compare how different fee structures affect your specific investment scenario.

How fees are charged

Platform subscription (Protea plan):

1. Your subscription is billed monthly on the first of each month

2. Payment is processed via card or debit order

3. If payment fails, you have a grace period before account access is affected

4. You can view all invoices in Settings > Invoices

Fund TERs:

1. TERs are calculated daily based on your fund holdings

2. The cost is automatically deducted from the fund's value

3. You do not see a separate charge - it is reflected in the fund's price

4. TERs are disclosed in each fund's fact sheet

Viewing your costs

You can track your subscription costs in the Fynbos app:

1. Navigate to Settings from the home screen

2. Tap Subscription to view your current plan

3. Tap Invoices to see your billing history

Each invoice shows the billing date, amount, and payment status.