SNG ARGEN Umbrella Fund Survey 2025
Welcome
Welcome to the 2025 Umbrella Fund Survey, prepared by SNG ARGEN Actuarial Solutions in collaboration with ITS Consulting and SNG Grant Thornton. We extend our sincere appreciation to all participating umbrella funds for their willingness to contribute to this work. Their support has enabled one of the broadest independent comparisons of the South African commercial umbrella fund market, covering fund scale, costs, investments, governance, administration and member outcomes.
Our objective is not to identify a single “best” fund, but rather to provide trustees, employers and advisers with practical information that supports more informed decision-making.
Key Takeaways
The survey confirms that the South African umbrella fund market continues to grow as employers increasingly migrate from stand-alone arrangements to larger umbrella structures. Participating funds reported continued growth, reinforcing the importance of independent comparison in an increasingly concentrated market.
While costs remain an important consideration, the survey highlights that meaningful differences also exist in governance structures, service models, investment design, risk-benefit arrangements and member support services. The findings once again demonstrate that umbrella fund selection is rarely determined by a single factor. The most appropriate solution depends on the unique characteristics, priorities and demographics of the participating employer and its members.
Understanding the Impact of Fees on Retirement Outcomes
Fees remain one of the most significant drivers of long-term retirement outcomes. Even seemingly small differences in annual costs can compound into materially different retirement benefits over a member’s working lifetime. The survey illustrates that the impact of fees varies considerably depending on salary levels, accumulated savings and the underlying fee structure. For this reason, trustees should be cautious about relying solely on headline fee comparisons or overall RSC figures.
Investment management fees remain the largest differentiator between funds, but administration, advice and other charges can have a significant impact on certain groups of members.
The survey further highlights that cost should always be considered alongside the value delivered through investment strategy, governance oversight, member support and service quality. A fund that appears more expensive at first glance may still provide better overall value when assessed holistically.
Going Beyond the Numbers: The Importance of Good Governance
While costs and investment returns are important, the survey reinforces that governance remains one of the strongest determinants of sustainable member outcomes. Effective governance provides the framework through which trustee oversight, risk management, service provider accountability and member protection are delivered.
The results of this survey, compared with the 2021 survey, suggest an increasing focus on governance, reflected in broader trustee structures, greater use of independent trustees and enhanced oversight practices.