In my September 2020 article on umbrella funds a number of shortcomings in umbrella funds were highlighted. Has anything changed? My last article for Pensions World SA on umbrella funds highlighted a number of shortcomings, how the actual costs in an...
Over the past two decades, there has been a notable shift from standalone retirement funds to commercial umbrella funds. This transition has been driven by increased cost pressures, tighter regulatory requirements, increased demands on trustees, the desire...
Increased flexibility In the old days, joining an umbrella fund meant a very limited set of investment options for participating employers – and the cost of any customisation outweighed its benefits. Today, many umbrella funds offer participating employers a...
Over the past few months positive sentiment has swung significantly in South Africa's favour, thanks to the formation of South Africa's first government of national unity (GNU) since the 1990's and its new Cabinet. The new administration is expected to...
Risk in investing is a feature, not a bug. It is, in fact, the reason we expect to earn higher long-term returns than provided by risk-free assets. When thinking about risk, investors should think equally about investment term too. The longer we remain...
How global pension funds have been investing in private markets Having spent the last 12 months in the United Kingdom as head of defined contribution investments at a large pension consultancy in London, I was surprised at the striking similarities between...
The escalating debt in two of the world's largest economies, China and the US, is pushing investors to seek value in unexpected places. In addition to the usual safe havens like gold, the Japanese yen and German Bunds (Bonds) are gaining attention as global...
South African investors have necessarily limited their exposure to global fixed interest bonds over the past several years for two primary reasons: unattractively low yields and the 25% offshore asset restriction for retirement portfolios under Regulation...
The quote “What gets measured gets managed” is attributed to the celebrated American management consultant Peter Drucker. By quantifying tasks or goals individuals can better understand their performance, set clear objectives and track progress. In this...
When most South African retirement fund trustees think of a custodian bank, a set of standard criteria comes to mind. Custodian banks hold and safeguard financial assets, protecting them from loss. Custodians facilitate the settlement and clearing of trades,...