The Investment Committee is responsible for monitoring the investment strategy, to ensure appropriate investment reporting to members, and working with the Board’s appointed investment consultants to review the entire investment offering from time to time. This includes reviewing the trustee approved default strategies to identify possible improvements that may benefit members and refining the member investment choice menu to ensure available portfolios perform in line with their mandates.
After consulting with the Fund’s appointed Investment Consultants and investigating various alternative solutions, a decision has been made to replace the SIM Moderate Absolute Fund with the SMM Moderate Absolute Fund as a member investment choice portfolio.
About the SMM Moderate Absolute Fund
| Objective | The SMM Moderate Absolute Fund is a multi-managed portfolio, which aims to provide real returns to investors. The objective of the portfolio is to consistently beat the benchmark of CPI + 5% over rolling 36-month periods and to provide positive returns over any rolling 12-month period. The portfolio will primarily invest in equities, bonds, listed property and cash instruments. It is managed using specialist absolute return managers and value is added through manager selection and underlying absolute strategies. |
| Type of portfolio | Absolute Return Portfolio |
| Investment Manager | Sanlam Investments Multi Manager |
| Regulation 28 Compliant | Yes |
| Risk Profile | Moderate Aggressive |
| Benchmark | CPI +5% |
The key reason for this change: Although both portfolios target a CPI+5% benchmark, the SMM Moderate Absolute Fund has shown a better return profile then the SIM Moderate Absolute Fund. The graph below illustrates that the SMM Moderate Absolute Fund has outperformed the SIM Moderate Absolute Fund significantly over all time periods. The SIM Moderate Absolute Fund has also not met the CPI +5% benchmark over the longer terms, ie: 5 and 10 years.
Performance (gross of fees) as at August 2025:
Investment Management Fees
The table below shows the difference in investment management fees, per annum, between the two portfolios:
| SIM Moderate Absolute Fund* | The first R100 million: 0.70% |
| SMM Moderate Absolute Fund* | The first R100 million: 0.80% |
*A rebate is payable to sub-funds investing in excess of R50 million in respect of this portfolio, and the quantum thereof will be formally confirmed by Sanlam in writing.
There is a performance fee payable on the SMM Moderate Absolute Fund. The Sanlam Investments Multi Manager may mandate any asset manager that manages assets within the Portfolio on a performance fee basis. This may result in higher overall fees, but only when performance targets agreed between Sanlam Investments and the asset manager have been exceeded.
Although the SMM Moderate Absolute Fund fees are higher, members are likely to benefit from the higher performance numbers as illustrated in the graph above.
Affected Members
Members invested in the SIM Moderate Absolute Fund as a member choice option have received targeted communication, and will have an opportunity to select a new portfolio from the range of member investment choice portfolios on the Sanlam Umbrella Fund menu. If no alternative election is made, members’ fund values in the SIM Moderate Absolute Fund will be switched to the SMM Moderate Absolute Fund in February 2026. Members have until 31 January 2026 to make an alternative selection.
Important to note is that during the period from 12 February until 25 February 2026, unit prices will not be released on these two portfolios and as a result, there will be no member transacting during this period. That is, we are unable to update member contributions, pay member claims, or effect member switches for the impacted members invested in these portfolios.
The Sanlam Umbrella Fund offers a range of risk-profiled investment options ranging from passive, smoothed bonus, multi-managed and single manager balanced funds. Members may choose to invest in a maximum of four portfolios at a time and can switch between portfolios free of charge, and can view options and make election via the member Portal or My Portfolio App.
Please rest assured that the Sanlam Umbrella Fund’s aim is to ensure the continued effectiveness and suitability of the default investment strategies and member choice options offered to our members.