The Sanlam Unity Umbrella Fund investment strategy has been updated to invest 100% in the Sanlam Stable Bonus Fund.
Previously, the strategy allocated 95% to the Sanlam Stable Bonus Fund and 5% to the Sanlam Enhanced Cash Fund. The cash allocation was introduced in early 2024 as a precautionary measure ahead of the implementation of the Two Pot Retirement System and the anticipated increase in member Savings Pot withdrawal activity.
At the time, Sanlam’s policy allowed for market value adjustments (MVAs) to be applied to Emergency Savings Pot withdrawals if these withdrawals occurred during periods when the Stable Bonus portfolio was underfunded. Holding a portion of assets in cash helped provide additional liquidity and reduce the potential impact of withdrawal activity on the portfolio.
Effective 1 April 2026, Sanlam discontinued the application of market value adjustments on Savings Pot withdrawals when the Stable Bonus portfolio is underfunded, except in extreme circumstances. As a result, the rationale for maintaining a dedicated cash allocation within the strategy no longer applies.
The Sanlam Unity Umbrella Fund has therefore reverted to a fully invested position in the Sanlam Stable Bonus Fund. This simplifies the investment strategy while ensuring that all assets are invested in the fund selected to achieve the portfolio’s long-term objectives.
Consultants should note that this change does not alter the overall purpose of the investment strategy. Instead, it reflects the evolution of Sanlam’s approach to managing liquidity requirements in the post-Two Pot environment and enables members to benefit from full exposure to the Stable Bonus Fund.