Fund Updates
Enabling the Age of Confidence: Sanlam Umbrella Fund appoints first female Chairperson
In a landmark move that signals both progress and promise, the Sanlam Umbrella Fund has appointed Jolly Mokorosi as its new Chairperson, effective 1 April 2025. Mokorosi becomes the first woman to lead the Fund, bringing with her a wealth of experience and a strong commitment to transformation, good governance, and member-focused leadership.
Sanlam Umbrella Fund’s rate revision and the impact of the VAT increase
The 2025 annual rate review for Sanlam's three umbrella funds has been finalised. Client-specific communications have been sent, outlining fee changes effective from March and April 2025. All fees will be adjusted to reflect the VAT increase to 15.5% from 1 May 2025, with no new statements issued.
Review of the Sanlam Unity Umbrella Fund default investment strategy post implementation of the Two-Pot System
In anticipation of the Two-Pot System effective 1 September 2024, the Fund initially redirected contributions to the SIM Cash Portfolio to enhance liquidity for expected withdrawals. Following a review in March 2025, the Board of Trustees concluded that a 5% allocation to the SIM Cash Portfolio - reduced from the original 10% - is sufficient to meet withdrawal demands efficiently, while maintaining the Fund’s long-term investment strategy.
Sanlam Umbrella Fund introduces new minimums for its annuity strategy
The Sanlam Umbrella Fund has completed a review of its Trustee Endorsed annuity strategy, resulting in key changes effective from 1 April 2025. The minimum member share required to access in-fund living annuities has been raised from R100 000 to R500 000, marking the first increase since the product’s inception in 2015.
Closure of the Pension Fund to New Business
Regulatory reforms in recent years have seen the harmonisation of tax treatments, annuitisation and preservation rules for pension and provident funds. Sanlam has therefore taken the decision to close the Sanlam Umbrella Pension Fund to new business with effect from 1 April 2025.
Notice of Endorsement to the Unapproved Group Risk Insurance Umbrella Policy
We have made some changes to the insured benefits policy covering the employers participating in the Sanlam Umbrella Pension or Provident Fund that provide unapproved insurance benefits for their employees, which are insured by either Sanlam Life Insurance Limited or Absa Life. Attached is the notice to all such employers. A summary of the main changes are: Increases in maximums, addition of comprehensive critical illness and minor amends to conversion options.