Factors influencing umbrella fund selection offered by the employee benefits industry in South Africa.
Date
2016
Authors
Bapoo, Irshaad
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Abstract
This research addresses the factors, which influence an employers or companies
decision in umbrella fund selection, which are offered by the employee benefits
industry in South Africa.
Fuzzy Cognitive Mapping (FCM) was the research methodology utilised as a
result of the qualitative and quantitative nature of the study. Nine interviews were
carried out with decision makers and industry experts where applicable, based on
an initial FCM produced from literature. Thereafter, a reinforced validated FCM
was produced which allowed simulations to be run, based on the results from
interviews.
The research results did not deviate far from the literature with major factors
influencing umbrella fund selection being explicit such as administration and
servicing, costs, the value add by the employee benefits consultant, the risk
benefits provider as well as the investment manager chosen. Furthermore,
additional factors such as product marketing, global contractual agreements,
industry regulations, decision making bureaucracy as well as the company outlook
were identified.
This research and its implications are key to providing guidance to employers or
companies when selecting products from service providers. Furthermore, the
results of this study may allow employee benefits providers to position themselves
in such a way so as to take advantage of opportunities within the industry and also
to be aware of the potential risks that may arise when developing and marketing
products.
Description
MBA Thesis
Keywords
Pension trusts -- South Africa -- Management.