The Board of Management is supported by a Principal Officer who ensures that the decisions are executed and properly implemented.
The fund is administered by Absa Consultants and Actuaries and audited annually by independent auditors. The benefits provided by the separate group schemes are re-insured with a life insurer. The election of the re-insurer lies with the Board of Management who regularly tests the market to ensure that the most competitive services and premiums are negotiated.
The portion of the contributions available for retirement funding (savings component) is invested in relevant portfolios of well-known investment managers to ensure that members’ savings component is exposed to growth with limited risks. The Board of Management is responsible for the selection of investment managers and this is reviewed regularly to maintain good returns on fund investments. The Board of Management of the Agricultural Sector Provident Fund has an investment strategy according to which the lower risks for Fund members are maintained but it also attempts to obtain acceptable growth.
The current investment portfolios are the Absa Absolute Return Fund (30%), Investec Opportunity Fund (25%). Allan Gray Global Balanced Fund (25%) and Foord Full Discretion Fund (20%).
Although employers are registered as participating employers of the Fund, a separate investment account is kept for every employee (who is a member of the Fund). Thus, every employee has ownership of his or her own investment account.