SA Open Fund

"Dear members

 

The year under review was a constructive year for the trustees in managing the affairs of the Funds.  

 

The most significant of these was a decision to change administrators. After an extensive review process, Sanlam Employee Benefits was appointed with effect from 1 January 2011 from a short list of three administrators. In choosing the administrator, the trustees focussed on the following aspects: accounting and financial requirements, daily pricing of investment values, cost, reporting ability and sound administration record. Sanlam was the recipient of the Principal Officers Association 2010 award for “The Best Umbrella Fund Administrator.”
 

From a member perspective, Sanlam have some exciting member services;  which includes enhanced online access functionality as well as retirement and death benefit calculators.

 

For a third year in a row the trustees were able to reduce the fund costs; in the face of rising inflation. This improves the allocation to your investment and retirement savings.

 

A market survey by independent consultants revealed that the preservation funds are probably the most cost effective available, whilst the Funds’ pricing for housing unclaimed benefits was in the top 3 in the survey.

 

The design of these umbrella funds is different to most, and members have better security because employers’ monies are not comingled and each employer has a separate bank account and investments, with monthly reporting to employer management committees. Employers have a choice as to insurers and investment portfolios (provided that these are through a life licence).

 

In the interests of greater transparency, and to keep members updated about the Funds and related matters, the SA Open Funds issue a weekly Facebook post as well as a quarterly communication. Previous copies of the “Communiqué” are available on the Funds’ website (www.saopenfund.co.za). Please take the time to join the SA Open Funds’ on Facebook to receive regular updates directly. We are not aware of any other fund that communicates as frequently, and the Funds were second in their category in the 2010 Institute of Retirement Funds Communication Challenge. 

 

In summary, the primary objective of the trustees is to provide an umbrella fund offering that is different from the rest in terms of cost, independence, security, transparency and flexibility. This is a member centric fund, and our aim is to provide a better service to our members.   

 

You are welcome to send any comments or suggestions to the Fund." 

 

Mike Nosworthy

Chairman

June 2011