A year ago, it was decided that the Sanlam Allan Gray Global Balanced and Sanlam Coronation Houseview portfolios would be restructured from the then Sanlam Life license structures to investments directly with Allan Gray Life and Coronation Life. These changes were decided primarily as the Sanlam Umbrella Fund’s significant holdings in these two portfolios meant that lower overall charging structures could be secured. These changes were successfully implemented and were well received by investors and consultants.
It was also at that stage communicated that the Sanlam Foord Balanced and Sanlam Prudential Balanced Funds would continue using the Sanlam life license structures noting that the Sanlam Umbrella Fund’s holdings in these two portfolios were much smaller and consequently any savings by changing the structure would be less significant, and also to break the review project into manageable chunks. Click here to read this previous communication.
Following the successful restructuring of the Allan Gray and Coronation portfolios to invest directly with these managers, it has subsequently been decided that the Sanlam Foord Balanced and Sanlam Prudential Balanced Funds should similarly be restructured from the current Sanlam Life license structure to investments directly with Foord and Prudential respectively for the following reasons:
- To apply a consistent approach to all portfolios in the External Single Manager Range
- To allow for the clear separation of Sanlam charges and manager charges, which is preferable from a transparency perspective
- To provide members with small cost savings on investment management fees
Further to this, Prudential Investment Managers have advised that due to ownership changes, they have changed their identity to M&G Investments. To reflect this change, and the restructure to a direct investment, the Sanlam Prudential Balanced Fund will be known as M&G Balanced Fund from 1 April 2022.
Clients significantly invested in these portfolios will receive more detailed communication shortly.