This client appointed us in 2017 as the members of their retirement fund (defined contribution) were in distress. On initial analysis we discovered that the members were on average only projected to be able to acquire a pension at retirement, using their expected fund share, to replace 22.9% of their final salary.
However, through the consistent use of our approach including our PlanMyBenefits™ tool, and our focus on improving investment outcomes, the average member is now projected to be able to purchase a pension at retirement equal to around 70% of their final salary.
Mentenova was appointed by a large medical scheme in 2015. They faced a number of challenges and a sustainability crises, with a solvency level (reserve assets) of only 8.9% as compared to the regulatory requirement of 25%.
Through our extensive and holistic approach, using our proprietary liability tools to guide the client to understand their financial position and various investment options, we were able to identify the various challenges and opportunities, guide the client to an appropriate goals-driven investment strategy, and assist in some instances with operational decision making.
The net result was a solvency of 49.4% in 2022, almost double the regulatory requirement.
This University holds significant reserves (in excess of R10 billion) on their balance sheet in order to fund various initiatives. Based on our understanding of the needs and requirements, an investment strategy was devised to provide for the annual income requirement as well as ensure that the assets keep up with inflation.
Our investment portfolio has however exceeded this target consistently by an average of 4% above target per annum. As a result the University is in a position where additional initiatives such as new faculties could be pursued, with around R400 million in additional income per annum, purely as a result of the direct impact of our investment strategy on the financial position of the University and its balance sheet.
