South Africa.
South Africa ranked 10th globally with an average total score of 55.
The South African pension system consists of a means-tested, non-contributory government social security system supplemented by voluntary occupational retirement schemes.
The five South African funds that were reviewed are not a homogenous group. They included two defined benefit plans: GEPF, one of the world’s largest funds and the national electricity utility, Eskom. The other funds are ‘umbrella’ funds, defined contribution providers that compete for employer and individual members. Umbrella funds offer business owners and their employees the opportunity to join a larger established retirement fund while retaining some flexibility in plan design and features.
Overall Factor Ranking
Cost
Governance
Performance
Responsible Investment
Overall Results
South Africa.
Funds Analysed
Eskom Pension and Provident Fund (EPPF)
EPPF provides investment management and benefit administration services for the defined benefit plan for employees of Eskom, South Africa’s public electrical utility company.
Government Employees Pension Fund (GEPF)
GEPF is a defined benefit fund that manages pensions and related benefits on behalf of government employees in South Africa. GEPF is by far the largest pension fund in South Africa and one of the largest in the world.
Old Mutual SuperFund
Old Mutual SuperFund is South Africa’s first ‘umbrella’ fund, introduced by Old Mutual in 1992. Old Mutual is a large diversified financial services company that operates in 14 African countries.
Sanlam Umbrella Fund
Sanlam Umbrella Fund is a defined contribution fund offered by Sanlam, part of the Sanlam Group, a large, diversified financial services company with operations in 44 emerging and developed market countries.
Sentinel Retirement Fund
Sentinel Retirement Fund was founded in 1946 and originally served the mining industry. It converted to an umbrella pension fund that is now open to all industries and employers in South Africa. Sentinel has a mutual, not-for-profit business model.