STEPHEN CRANSTON: Unpacking smoothed bonus funds
The smoothed bonus fund has never been a favourite product of mine. It is insanely expensive, with a charge of up to 2.5% for the privilege of some stability in a portfolio — it is not as if an outright guarantee is provided in all circumstances. And when you need your investment most and cash in, you are often paid out far less than the nominal value of your units, through a device known as the market value adjustor. I will be deeply disappointed if the Financial Services Board allows life offices to offer smoothed bonus funds as the default portfolios for retirement funds. So I suppose it was inevitable that self-proclaimed disrupter-in-chief and Sygnia CEO Magda Wierzycka would launch an artillery attack on smoothed bonus funds as we know them. I hear her new catch phrase is: "Don’t call me Ivana Trump." These bright Eastern Europeans have a lot in common; just pray that the Trump family does not try disrupting the world with the artillery at its disposal.The new Sygnia Stabilise...
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