The 2019 Sanlam Benchmark Survey found that one-third of employers using umbrella funds have never reviewed their provider, while less than half of respondents conducted a review of their provider every one to three years.
In a recent media release, Nazia Kahlon, Group Savings specialist at Allan Gray, discusses the importance of reviewing an umbrella fund provider and provides insight on key metrics that should be used to measure the effectiveness of umbrella funds.
“Employers and their advisers should take a holistic approach when reviewing umbrella fund providers. Look at everything, from investment return to governance and service. Fees are an important factor, but it is not simply how much you are paying, but what you are paying for”, Kahlon advises.
Kahlon elaborates on the key metrics that should be used to measure the effectiveness of umbrella fund offerings, including governance, quality default investment options, fees, admin and client service capabilities.
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