THE Treasury’s call for lower retirement fund fees and significant consolidation is not the only challenge facing the sector. Interest is building among investors for smaller, more nimble and cost-efficient passive investment offerings, which are beginning to steal a march on their bigger rivals.In an industry accustomed to charging some of the highest fees in the world, the winds of change are blowing, with active investment managers themselves reported to be moving to lower-cost index-investing retirement options for their personal portfolios. A number of high net worth individuals, and even banks, are following suit.Retirement investment fees of 3% in South Africa are among the highest in the world, yet passive managers can bring fees down to below 1%.Often overlooked by investors is that the 3% fee reduces potential returns by well over 50%, a situation CEO Steven Nathan of low-cost passive investing house 10X says is "ruining retirements" for nine out of 10 South Africans.By of...
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