The Investment Committee is responsible to monitor the investment strategy, to ensure appropriate investment reporting to members, and to work 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 have performed in line with their mandates.
The Investment Committee recently concluded an in-depth review of the Sanlam Wealth Creation Lifestage strategy, and this communication details the changes that will be made from July 2022.
Sanlam Wealth Creation Lifestage Strategy
Prior to July 2022 the Sanlam Wealth Creation Lifestage Strategy was only available to participating employers with previous exposure to this strategy. As from July 2022, the Trustees have approved the inclusion of this strategy for all participating employers as an additional default investment strategy option.
The accumulation phase of this strategy invests in the Sanlam Wealth Creation Portfolio. The Sanlam Wealth Creation Portfolio will remain available to all members as part of the wide variety of investment strategies and investment choices that employers can offer their employees.
Going forward, the portfolio will be available and wrapped within an insurance policy issued by Sanlam Life. During the transition to the Sanlam Life Policy, unit prices will not be released from 18 July to 22 July 2022. 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 employers and members.
The portfolio was managed collaboratively by a Joint Investment Committee consisting of Simeka Consultants & Actuaries, Sanlam Investments Multi-Managers and Alexander Forbes Investments. As from July 2022, Sanlam Corporate Investments will replace Alexander Forbes Investments.
It is important to note that the core objective of the Sanlam Wealth Creation Portfolio remains the same which is to deliver superior real returns over the long term. This balanced portfolio is managed on a multi-manager basis and includes international exposure. Each manager has been selected on the basis of rigorous quantitative and qualitative analysis. The underlying managers of the portfolio have been selected, mandated, monitored and reviewed by the Joint Investment Committee mentioned above.
Investment Management Fees per annum
| Sanlam Wealth Creation Portfolio | 0.95% | 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 and the asset manager have been exceeded |
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.
Existing clients invested in the Sanlam Wealth Creation Lifestage Strategy have received more detailed communication confirming their specific fee arrangements after these changes.