Know what you payUnderstand what your fees and charges are with
our effective annual costs

What is the Effective Annual Cost?

The Effective Annual Cost (EAC) is a measure which allows you to compare the estimated charges you will likely incur and their impact on investment returns when investing in retail investment and savings products. These include retirement annuity funds and preservation funds but exclude pure risk-based products.

The EAC is expressed as an annualised percentage. It is made up of four cost components, namely investment management, advice, administration and other. The effect of some of the charges may vary, depending on your investment period.

The EAC calculation assumes that an investor terminates his or her investment in the selected fund at the end of the relevant periods shown in the table below.

Example of the Effective Annual Cost calculation

IMPACT OF CHARGES

1 YEAR

3 YEARS

5 YEARS

10 YEARS

Investment management1

0.72%

0.72%

0.72%

0.72%

Advice2

0.00%

0.00%

0.00%

0.00%

Administration3

0.50%

0.50%

0.50%

0.50%

Other4

0.70%

0.70%

0.70%

0.70%

Effective Annual Cost

1.92%

1.92%

1.92%

1.92%

Investment management1

Advice2

Administration3

Other4

Effective Annual Cost

1 YEAR

0.72%

3 YEARS

0.72%

5 YEARS

0.72%

10 YEARS

0.72%

1 YEAR

0.00%

3 YEARS

0.00%

5 YEARS

0.00%

10 YEARS

0.00%

1 YEAR

0.50%

3 YEARS

0.50%

5 YEARS

0.50%

10 YEARS

0.50%

1 YEAR

0.70%

3 YEARS

0.70%

5 YEARS

0.70%

10 YEARS

0.70%

1 YEAR

1.92%

3 YEARS

1.92%

5 YEARS

1.92%

10 YEARS

1.92%

  1. The Investment Management charge is the total of the weighted Total Expense Ratio and the transactional costs of the underlying financial product.
    It is calculated on a quarterly basis over a historical 3 year rolling period.
  2. The Advice charge is only applicable upfront when the product is purchased.
    Where no adviser has been engaged, no advice charges are included in the calculation.
  3. The Administration fee is charged as a percentage of assets.
  4. This category reflects the capital charge, which is for smoothing investment returns and providing a capital guarantee,
    charged as a percentage of assets
    (refer to fund fact sheet for more on these benefits).

The EAC shows the estimated impact of immediate and future charges, and does not include the impact of charges that have already been incurred.

Want to request your EAC?

If you would like to request the EAC for your investment, please email us at ProtektorEnquiriesComplaints@oldmutual.com. Alternatively, you can contact the Service Centre on 0860 20 30 40.  

For more information download information brochure

Protektor EAC Calculator Need to know more info on EAC? Need more information? Here we answer all your questions but if you need more info you can speak to a consultant, call 0860 38 88 73. You can also download a pdf of the frequently asked questions here

    The Effective Annual Cost (EAC) is a measure introduced by ASISA which allows you to compare the estimated charges you will likely incur and the impact these have on investment returns when investing in retail investment and savings products.

    They are the Association for Savings and Investment South Africa. ASISA represents the majority of the country's asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life insurance companies. ASISA performs an oversight role for South Africa’s savings and investment industry.


    ASISA and the companies they represent are committed to operating within the Treating Customers Fairly (TCF) principles framework. Outcome three of the TCF principles requires financial services providers to give their customers clear information and make sure that they are fully informed about all aspects of the products and services they are being sold.

    By using the EAC table, customers will be able to make better-informed decisions around both their new and existing retail savings and investment product choices.

    The EAC table groups fees that a Protektor member incurs into four separate charge categories which are then added together. These charges are disclosed over four periods, namely 1, 3, 5 and 10 years.

    Costs will reflect under the following charge categories:

    • Investment Management
    • Advice
    • Administration
    • Other

    The Investment Management charge includes all the costs on your underlying investments, including investment performance driven charges and trading costs.

    The Advice charge includes the once-off brokerage fees if you have used the services of a financial adviser. This amount is agreed upfront between you and your financial adviser.

    The EAC standard prescribes that the once-off brokerage fee is divided by the number of years in the relevant disclosure period for the purpose of the EAC calculation. Therefore, for a brokerage fee of 1% including VAT, you will see 1%, 0.33%, 0.2% and 0.1% over the 1, 3, 5 and 10 year periods. Note: this will only be displayed in the EAC calculated when the product is purchased.

    Once you become a Protektor member, the Advice charge will be zero as no further advice fees are incurred.

    The Administration charge includes the cost of managing Protektor and administering your account.

    The Other charge includes a fee linked to the investment portfolio you are invested in and providing a capital guarantee (refer to the fund fact sheets on the Protektor website for more on these benefits). https://www.oldmutual.co.za/protektor

    A compounded annual gross investment return of 6%, where applicable.

    • All calculations include value-added tax (VAT) at the prevailing rate, where applicable.
    • Inflation has been taken into account when calculating the EAC, where applicable.

    Yes, all assumptions used and necessary explanations relating to each charge will appear in the notes below the EAC table.

    For example:

    A 10-year EAC of 1.92% means that the costs you pay will likely reduce your investment returns by 1.92% if you stay invested in the product for 10 years.

    The EAC figures only show the estimated impact of immediate and future charges, and do not include the impact of any charges that have already been incurred. The effect of some of the charges may vary, depending on your investment period.

    • The growth to date of your investment portfolio.
    • A reduction or exit fee as Protektor does not charge these fees.
    • The actual ongoing Rand based fees and charges on your product.

    If you would like to request the EAC for your investment, please email ProtektorEnquiriesComplaints@oldmutual.com.

    Alternatively, you can contact the Service Centre on 0860 20 30 40.

    For new Protektor members, the EAC table will also be added as an annexure to the membership certificate sent out once their investment has been processed.

    Yes! It is however important to remember that there are other things you should take into account besides low costs. Your

    EAC is one aspect that you need to consider when making a decision on where to invest.