The consultant is involved in all the aspects of managing a retirement fund - whether it be monitoring the administration function (contributions, claims, transfers etc), the selection of a risk underwriter for the risk benefits provided for in terms of the rules of the fund, or the appointment of an investment manager.
The consultant’s duty is to provide the trustees with the following information:
Where to find the best investments products
The consultant is best placed to know who the providers are and how to contact them.
What the different products are
The consultant can provide the board of trustees with information relevant to a specific company, its product and the specification of the product.
Which products might be best suited for members’ needs
Based on experience established over a number of years, the consultant will be able to give the trustees an indication of which products or product combinations will be best suited for members’ needs.
How to better the current products
The consultant will be able to introduce the trustees to additional or newly launched or alternative products or services that can enhance the current status of members’ benefits.
At the end of the day, however, the final decision on the appointment of investment managers and the selection of products lies with the trustees and not the consultant. Once the trustees make the decision, the consultant is given the task to ensure that the decision is implemented.
The first issue of Motswedi for 2010 reflects on investment returns and focuses on market recovery. The following excerpt from the article ‘Making the Call on Where to Invest’ is taken from the latest Motswedi.