Saving costs, creating more value

B7: Affordability is more important than ever after the pandemic. What is Alexander Forbes’ stance on this?

JM: We are confident that we can provide a tailor-made plan to save costs and create additional value for members, helping them to secure their financial well-being now and in the future. We can assist with a holistic umbrella fund solution – the Alexander Forbes Namibia Retirement Fund (AFNRF).

Risk benefits through an insurer are available in addition to retirement savings in the AFNRF. Alexander Forbes reviews their fees regularly and negotiates terms and conditions specifically for Namibian employers to ensure the most competitive risk rates with the best suitable benefits.

B7: How did Alexander Forbes manage to reduce contributions while keeping risk benefits intact?

JM: Various clients experienced financial distress as a result of the pandemic and lockdown of business and needed our advice. The tourism industry was affected most. Employees were sent home with reduced or no salaries over the extreme lockdown periods.

We advised our clients on the provision in their fund rules:

• temporary absence from work (with or without pay)

• a break in service (in instances where employees are not working)

In these instances, we advised that the risk benefit premiums and management fees continue on the pre-Covid salaries to ensure members are covered for full potential risk benefits while their retirement savings were invested and kept intact. It was a difficult period; however, almost all clients have resumed normal contributions.

B7: Give an overview of your current products.

JM: Our flagship umbrella fund, the Alexander Forbes Namibia Retirement Fund, provides solutions for any size retirement fund. Services includes benefit consulting, fund administration and actuarial services.

The AFNRF offers a choice of distinct investment portfolios which comply with Regulation 13. These portfolios can be discussed individually, each with its own risk and return profile as specified in the Alexander Forbes Surveys. From these the management committee can opt to invest their portion of the fund’s assets. The Alexander Forbes Goals-Based LifeStage model is both the trustees’ default investment strategy and our best advice.

In addition, we provide consulting services on stand-alone retirement funds and group employee benefit arrangements. We understand our clients’ unique requirements and therefore look at these benefits arrangements holistically in our consulting approach to provide integrated solutions through ideal insurance arrangements, investment philosophies and cost-effective services.

Importantly, we consult our clients in terms of the legislative and statutory requirements affecting the industry. We are working on an active implementation plan when the Financial Institutions and Markets (FIM) becomes law. We assessed the requirements of the relevant sections of the FIM Bill to identify what needs to be done so that Alexander Forbes and the funds comply with these requirements. We will guide the boards of trustees of stand-alone funds through this process, providing support and additional service where required.