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On 22 March 2013 we announced that the Sanlam Umbrella Fund will be adopting Sanlam Lifestage as the Fund’s default investment strategy. The response from our clients has been very positive. Nonetheless we again remind Contracted Benefit Consultants that we are allowing any Participating Employers / Joint Forums to use this opportunity to review their chosen default investment strategy provided they notify us of their decision by returning a completed Confirmation of Amendment form by no later than 31 May 2013. Given the positive client response, we are hereby confirming that we intend implementing effective 1 July 2013, and we are now in a position to unpack more detail pertaining to the change. The trustees will continue to monitor developments and reserve the right to delay the implementation date if necessary.

Time lines and implementation strategy

Taking the best interest of members into consideration, the detailed timeline and implementation plan for this bulk switch is as follows:

  • In the period 1 to 23 June 2013, our administrators will be doing all the final checking and preparation for the switch.
  • A necessary freeze period will be in place for the period Monday 24 June up to and including Monday 1 July 2013. No transactions will be processed during the freeze period, including (but not limited to) receipting and investment of contributions, member exits and investment changes. This will only impact Participating Employers with investments in the Lifestage Programme (no matter how small the investment). Participating Employers with no investments in the Lifestage Programme will not be impacted by the freeze period.
  • All switches and changes to Sanlam Lifestage will be effected during the freeze period. We remind you that as part of the implementation switch process, all members within 6 years of retirement will be defaulted into the Sanlam Lifestage Capital Protection Preservation Portfolio.
  • From 2 July 2012, we will be ready to resume all administration processes as the affected members would already have been switched to Sanlam Lifestage. From this date, all reporting i.e. Retirement Fund Web will reflect the new Sanlam Lifestage portfolios.
  • Although members will be invested in the Sanlam Lifestage Accumulation Portfolio from 1 July the trustees have agreed with the Investment managers that the month of July will be used as a period of transition of the underlying assets from the SMM70 benchmark to the benchmark of the new portfolio (Sanlam Lifestage Accumulation Portfolio). Because of the transition phase, is anticipated that the investment returns for this month will be between the returns of SMM70 and the portfolio’s benchmark returns.
  • Members in Sanlam Lifestage within six years of retirement will have the opportunity to select one of the two other preservation options from 1 September 2013. Further communication in this regard will follow in due course to these members.

A reminder as to why this decision was made

  • The new strategy represents Sanlam’s best houseview for a lifestage model.
  • The trustees believe the new strategy is an enhancement that will benefit the Sanlam Umbrella Fund members.
  • The new strategy is more closely aligned to National Treasury’s retirement fund reform thinking that will require Boards of Trustees to consider matters such as default annuitisation.

For further enquiries or assistance, Contracted Benefit Consultants and Contracted Financial Advisers may contact us at or contact their regional Account Manager.