10X and NUMSA Financial Services (NFS) entered into a joint venture to provide NUMSA members with Retirement Fund products that are much more cost effectively managed and with better investment returns than the existing retirement fund management systems. 10X has a unique approach that leverages a combination of asset under management with administration services and the elimination of multiple middlemen and side men to reduce fees as well as a Passive investment strategy that tracks the market and is proven to beat active managers 9 out of 10 times. We have learnt through 10X that a 1% cost reduction can increase the retirement pay-out by as much as 30% over a 20 years period.
The joint venture has been in existence now for 3 years and the NFS business now accounts for 10% of 10X business and the flagship client is General Motors in Port Elizabeth. With reference clients and greater than 40% reduction in fees and higher returns, we expect this Joint Venture to grow exponentially in months and years to come.
Union Life has entered into a joint venture agreement with the SAFPA, and association of black funeral undertakers.
The purpose of the joint venture is to enable SAFPA to use the Union Life platform to create and migrate into their own insurance businesses. We see this as a significant enterprise development project for 360 FSG, in establishing another black insurance company in the future.