Our Funds
Our emergency savings and tax free saving accounts are backed by well-known top-tier funds from the best fund managers in South Africa.
Our thinking behind the choice of funds and investment options we offer through the platform is laid out in more detail below. If there is a fund you think we should offer, let us know at [email protected].
Emergency Savings
Allan Gray Money Market Fund
https://www.allangray.co.za/
Format: Money Market Fund
Fees (Total Investment Cost): 0.29%
Our emergency savings account is backed by the Allan Gray Money Market Fund for a number of reasons:
- Capital preservation (Safety): The fund invests in low-risk, short-term money market instruments such as government bonds, treasury bills, and corporate debt with high credit quality.
- Liquidity: Money market funds offer high liquidity, you can access your funds quickly when needed. This is crucial for emergency savings, where immediate access to cash is essential.
- Inflation beating returns: The fund provides stable, predictable returns that are generally higher than traditional fixed-interest savings accounts. This protects the value of your savings against inflation without exposing them to the high volatility of equity markets.
- Low volatility: Money market funds typically experience minimal price fluctuations, making them suitable for short-term savings goals like emergency funds, where capital stability is more important than high returns.
- Professional management: The fund is managed by professional fund managers from one of South Africa’s best known and respected wealth managers, Allan Gray.
Tax Free Savings Accounts
Your Tax Free Savings Account doesn’t have to be invested in a fixed interest “saving account” like you will get from most banks.
With a long investment horizon the better option is to take a little more short-term risk by investing in something more volatile that is likely to have higher returns over the long term, such as equities.
How we choose our TFSA funds
We have curated a set of funds well suited to very long term investing that you can choose to back your TFSA. When considering an investment horizon in decades, not years, we optimise for very different fund characteristics than we might under a more generic investment strategy.
Which TFSA funds are available
The following funds are available through the Fynbos tax-free investment account:
FNB Global 1200 Equity FoF
https://www.fnb.co.za
Codes: ISIN:ZAE000303145 or JSE:FNBEQF
Index tracked: S&P Global 1200 Index
Exposure: 70% of global market capitalization across the USA, Europe, Japan, Canada, Australia, Asia, and Latin America
Format: Fund of Funds
Fees (Total Investment Cost): 0.43%
Top shares from the world’s largest economies. This is a “Fund of Funds” that invests in other funds that invest in the top shares in each country. A good choice to get a wide exposure to multiple developed economies.
Sygnia Itrix S&P 500
https://www.sygnia.co.za
Codes: ISIN:ZAE000251377 or JSE:SYG500
Index tracked: S&P 500 Index
Exposure: The 500 largest companies in the US. Represents ~80% of the available U.S. market capitalisation.
Format: Direct
Fees (Total Investment Cost): 0.20%
Warren Buffet once said: “for most people, the best thing to do is own the S&P 500”. This fund buys shares in the 500 biggest companies on the US stock market. It’s a great option if you believe the US (and US-based companies) will continue to dominate the world economy.
10X Total World
https://www.10x.co.za
Codes: JSE:GLOBAL
Index tracked: FTSE Global All Cap Index
Exposure: 9000+ companies of all sizes from 47 countries and across multiple sectors.
Format: Feeder Fund - Vanguard Total World Stock ETF
Fees (Total Investment Cost): 0.29%
A great choice for maximum diversification, the fund invests across multiple countries, company sizes and sectors. An easy way for South Africans to invest indirectly in the Vanguard Total World Stock ETF (VT).
1nvest S&P500 Info Tech
https://1nvest.co.za
Codes: ISIN:ZAE000255063 or JSE:ETF5IT
Index tracked: S&P 500 Capped 35/20 Information Technology Index
Exposure: Companies from the S&P 500 within the GICS information technology sector, capped to ensure diversification.
Format: Feeder Fund - iShares S&P 500 Information Technology Sector UCITS ETF
Fees (Total Investment Cost): 0.35%
Invest in shares from from the largest US tech companies. A good choice if you believe the growth of some of the today’s biggest companies such as Apple, Microsoft, Meta and others is just the start of a long term trend.
Satrix MSCI World
https://satrix.co.za
Code: JSE:STXWDM
Index Tracked: MSCI World Index
Exposure: Large and medium size businesses in 23 developed markets.
Format: Feeder Fund - iShares Core MSCI World UCITS ETF
Fees (Total Investment Cost): 0.35%
A good choice for diversification across sectors and geographies without exposure to developing markets or smaller companies. An easy way for South Africans to invest indirectly in the iShares Core MSCI World UCITS ETF.