Product Guide

Verso Umbrella Retirement Funds

Verso Financial Services (Pty) Ltd established the Verso Umbrella Retirement Pension Fund and the Verso Umbrella Retirement Provident Fund in an effort to address the retirement funding needs of their clients and prospective clients. The Funds are independently and professionally managed by a Board of Trustees as a cost-effective alternative to Employers and Management Committees.

Umbrella Fund arrangements are structured solutions for small to medium funds that allow many unrelated employers to participate in one overall legal retirement fund structure, while at the same time defining their own terms of participation and risk benefits. This provides a professionally managed and cost effective alternative for clients who do not want the fiduciary responsibility that comes with the management of a private fund, or who lack the knowledge or time to effectively apply themselves as a Trustee of a fund.

The main differences between private and umbrella funds can be summarised as follows:

Private Funds Umbrella Funds
  • A Board of Trustees must be appointed to perform fiduciary duties and manage the Fund.
  • Professional Trustees are appointed to manage the fund as a whole.
  • Trustees are liable in their personal capacity and take full responsibility for the management of the Fund.
  • The participating employer appoints a Management Committee, which has no fiduciary duties or responsibilities, to make decisions within the Fund framework.
  • A Principal Officer must be appointed.
  • There is no legal obligation to appoint any fund officers.
  • The Trustees appoint an Auditor and Valuator for the fund. The total cost for these services is payable by the fund over and above the normal administration fee. As private funds usually have fewer members than umbrella funds, the fee per member can be high.
  • The Trustees appoint an Auditor and Valuator for the fund. The cost is again payable over and above the normal administration fee, but as it is split between all the participating employers, the fee per member is usually cost-effective.

It is possible to convert existing private funds to umbrella funds. If you would like to consider this option, please contact us for a full market survey comparing costs and benefits.

For more information on our umbrella funds, contact a member of our team.