Think of the platform as the filing system your money lives in. It holds the records, processes your contributions and withdrawals, produces the statements and gives you access to the investment options. The platform fee pays for that layer, and only that layer.
It is separate from what you pay for advice, and separate again from the cost of the underlying funds, even though a statement or proposal may present all three as one number. The platform charge might be a flat percentage, tiered by balance, or structured differently for particular products. It may also be worked out across linked accounts rather than one at a time, which is worth knowing if your family holds several.
Here is the part that catches people. The platform does not necessarily decide how your money is actually invested. That could be the fund managers, a discretionary fund manager, an advisor mandate, or your own choices. Knowing who does what stops you paying for one layer while expecting a service from another.
Try this now
Take one investment statement and find the platform or product administrator. Write down the annual fee rate, the estimated rand cost, what it is calculated on, and the services provided. “Not shown” is a legitimate answer, and a useful one.
Ask your advisor
- What administration does this platform provide?
- Are lower fee tiers, family aggregation or alternative platforms relevant to the comparison?
- What would change in cost, access or function if a different platform were used?
Platform features and fee structures vary. Compare current documents rather than relying on a general label.
Next: What is a fund management fee, and why can't you see it?