Financial Data
Updated 27 Sep 2020

Enjoy transparency, personal budget control and holistic investment advice

Standard Trust is advancing a practical, workable strategy that provides beneficiaries with adequate returns and enough liquidity to cater for maintenance, education, medical expenses and general well-being, while preserving capital.

19 November 2014  Share  0 comments  Print

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Thanks to a market-first innovation from Standard Trust, Retirement Fund Trustees are now able to confidently advise fund members' that dependents can pay a fixed rate for the management of their death benefits.

Transparent fees 

Mthokozisi Bhengu, General Manager, Institutional Business, Standard Trust, says the positive impact of an evolution of Standard Trust's product model is that beneficiary accounts pay fixed acceptance and management fees if they opt for a fixed-based pricing structure for the allocation of death benefits.

"As part of our fiduciary duty, we are offering the market a product with published, transparent fees. Clients have the flexibility to choose either a rand-based or percentage-based structure.

"There are tangible benefits. Beneficiaries, for example, are guaranteed on-time payments in line with their needs; a free simple Will and other Will services at age 16; and a 48 -hour turnaround time for the payment of claims," says Bhengu.

Let's look at a fixed price scenario, Standard Trust receives R1 000 000 for a beneficiary to be kept in Trust to terminate when the beneficiary reaches 18 years of age. From a fixed-pricing point of view, the acceptance fee will be R114.00. 

The management fee is taken monthly in arrears e.g R570 pm on a trust valued R1 000 000 as per current pricing offer. 

In terms of Distribution fees, when a client requests payments on an ad-hoc basis, he or she will be charged only R136.80 even if the amount requested is e.g. R50 000. 

On termination of the Trust only R136.80 will be charged as termination regardless of the value of the trust being over R1 000 000.

From a percentage-based fee perspective, the Acceptance fee will be R11400. (1.14% of R1 000 000 received into the Trust. The Management fees will be +/-R12 000 (1.2% of the value of the Trust).

Regarding Distribution fees, each time a client submits a request for an ad hoc payment, 2.28% will be charged e.g. for a R50 000 payment. R1140 will be taken as distribution fee.

Termination fee - 2.28% will be taken on the final distribution (value as at date of termination) e.g. R22 800 on a trust valued at R1 000 000.

Fixed- pricing fee

Bhengu says: "The advantage of the fixed-pricing fee structure is that the client now has control of a budget with the knowledge of exact fees that he or she will be administered. Clients have options, in 11 languages."

Standard Trust beneficiaries, guardians and caregivers have access to more than 1 000 branches nationwide. Back office staff handle administration enquiries 24/7. 

"Standard Trust contributes positively to society by ensuring the well-being of our beneficiaries through education and support.

"Ultimately we offer beneficiaries a practical investment approach that ensures their needs are met across the board. Standard Trust members also enjoy the stability of being part of a stable financial services organization, Standard Bank Group,” concludes Bhengu

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