Ernst & Young Provident Fund
Message from the chairman & principal officer
Chairman and principal officer’s address to fund members
Staying the course amid global and local shifts
Dear Valued Members
As 2025 draws to a close, we take this opportunity to thank you for your continued trust and commitment to your retirement journey. It has been a year marked by both economic challenges and cautious optimism, and through it all, our focus has remained clear – safeguarding your long-term financial future.
A year of transition and resilience
The global economy continues to adjust to shifting trade policies, persistent inflationary pressures and evolving geopolitical risks. The US and China’s trade relationship has once again dominated market headlines, influencing global supply chains and investor confidence. Meanwhile, ongoing tensions in Eastern Europe and the Middle East have affected global commodity and energy prices, keeping inflation stubbornly higher than expected across many regions.
Domestically, South Africa has faced its own headwinds — from slower-than-expected growth and energy supply challenges to a fluctuating rand and constrained consumer spending. Yet, amid these challenges, there are encouraging signs – a gradual decline in inflation, improving prospects for lower interest rates, and strong performance from select local equity and fixed-income markets. These developments highlight that disciplined, long-term investors continue to find opportunity in uncertainty.
Time in the market – not timing the market
It is natural for members to feel uneasy when financial headlines seem dominated by volatility.
However, the most powerful investment principle remains unchanged – time in the market matters more than timing the market.
Remaining invested through the cycle allows your money to benefit from the compounding effect — the quiet, steady force that grows wealth over decades, not months. Short-term market reactions often come at the expense of long-term gains. Your retirement fund is designed to weather volatility through diversification and disciplined management, helping you reach your retirement goals despite temporary fluctuations.
The value of consistent saving
Your provident fund remains one of the most effective vehicles for building long-term financial security. Every contribution — no matter how small — is tax-deductible within legislated limits, reducing your taxable income and allowing you to save more efficiently. These tax advantages, coupled with the benefit of compound growth over time, make consistent saving into your retirement fund one of the most powerful steps you can take toward financial independence.
Our ongoing commitment
Your Fund remains committed to prudent and transparent management. Our investment managers continue to monitor local and global developments, ensuring your portfolio remains well-diversified and aligned with your long-term objectives. We will continue to communicate openly and equip you with the information you need to make informed decisions about your retirement savings.
Looking ahead with optimism
As we move into 2026, we encourage you to stay focused on the bigger picture. Markets will always move in cycles — but those who remain patient, disciplined and consistent are the ones who ultimately succeed. Sensible investing and staying the course are the surest ways to secure a comfortable and dignified retirement.
On behalf of the Board of Trustees and the Office of the Principal Officer, we wish you and your families a joyful festive season. Travel safely, take time to rest and reflect, and may the New Year bring renewed purpose, good health and prosperity.
Regards
Fund Chairman
Happy holidays and have a joyful new year
Marius Otto
Principal Officer
The importance of beneficiary nominations for retirement funds
Retirement funds provide financial security after the working years. If a retirement fund member dies, and a lump sum death benefit becomes payable, the Trustees of the Fund are responsible for distributing the death benefit fairly, in accordance with section 37C of the Pension Funds Act (section 37C). These death benefits do not form part of the deceased estate and section 37C overrides any provision made in a will relating to them.
The primary aim of section 37C is to protect those who were financially dependent on the member. This includes legal dependants e.g. minor children, spouses with maintenance orders; factual dependants e.g. someone supported without legal obligation; and future dependants e.g. unborn children and other persons the member would have become legally liable to support had the member not died. The Trustees of the Fund may not accept unverified claims at face value.
In the Constitutional case of Mutsila v Municipal Gratuity Fund and Others [2025] ZACC 17 – the court confirmed that the dependency must be assessed as at the date of death of the Member, not at the later date of distribution.
The court further confirmed that the distribution must be equitable (fair in the circumstances), not necessarily equal.
The importance of providing written, clear nominations of beneficiaries
While Trustees are not bound by beneficiary nominations, members should submit clear, written nominations of beneficiaries and keep them updated.
These nominations help guide the Trustees, who must conduct an investigation to identify all dependants and nominees, and establish various determining factors before equitably allocating the death benefit.
Providing complete and transparent information assists Trustees reduce delays within the 12-month distribution window dictated by section 37C. It also helps to avoid legal complications. In the absence of written nominations and if no dependants are identified, the benefit may be paid into the estate, potentially triggering adverse tax implications, and higher estate duty and executor fees.
The death claims process: What dependants and beneficiaries need to do when a member passes away
Although death is a sensitive matter, it helps dependants immensely to have information about the death claims process before the retirement Fund Member passes away, as summarised below:
1
Notification:
Dependants, a financial adviser or the executor must notify the retirement fund of the Member’s passing by submitting the relevant forms and documents.
2
Await the Trustees’ decision:
Trustees must conduct a thorough investigation to identify all dependants and nominees. This may involve contacting family members, dependants and other third parties, and can take up to 12-months from notification of the death.
3
Submit objections and complaints:
Any party who disagrees with the Trustees’ decision can submit a complaint to the principal officer of the Fund and, if unresolved, to the Pension Funds Adjudicator. The Adjudicator’s decision may be reviewed by the High Court.
4
Choose a payment option:
Beneficiaries may take the benefit as a cash lump sum, purchase an annuity or combine both. Trustees may also pay benefits into a nominated trust or beneficiary fund on behalf of a dependant or nominee, particularly for minors or vulnerable individuals.
Why young professionals should start financial planning now
Many young adults think financial planning is only for wealthy people close to retirement.
The opposite is true: the earlier you start, the more power you have to build wealth and design the life you want. Real wealth doesn’t come from a
A financial plan simply helps you leverage time to create future wealth and stability.
Source: Pensions World (South Africa)_Aug 2025
Three myths about financial planning
1
It’s only for wealthy people
Modern financial planning isn’t about cutting lattes — it’s about aligning your money with your life goals. Whether you dream of starting a business, travelling or funding your children’s education, planning turns dreams into achievable projects. Smart planning uses both tech and expert advice to keep you on track.
2
My savings account is my biggest asset
When you’re young, your greatest asset is your future earning potential. A good plan protects and grows it through: income and disability protection smart debt management early investing (RAs, unit trusts, tax-free savings, and so on.)
career development and skills growth
Protecting your future early is cheaper and far more effective than trying to catch up later.
3
I’m too young — I’ll plan later
Delaying planning often leads to stress, debt pressure and investment delay. A financial plan isn’t just about investments — it provides clarity and peace of mind, helping you stay focused during market noise, job changes or unexpected life events.
Why your provident fund matters
The bottom line
You don’t need wealth to start planning — planning is how you build wealth. Even investing R100 a month and using compulsory debit-order savings creates long-term discipline and compounding growth.
Contributing regularly to your provident fund is one of the simplest and most effective ways to build long-term wealth. Your contributions are tax-deductible (within annual limits), meaning you pay less tax today while growing your future nest egg. The earlier you start, the more time your money has to compound — turning small, consistent contributions into significant savings over decades. Staying invested through market ups and downs allows your retirement fund to do what it’s designed for: grow quietly in the background while you focus on living your life.
The best time to start was years ago. The second-best time is today.
Source: Ashburton Investments – ebnet.co.za/articles
Stay consistent, stay invested
Consistency matters more than timing. Regular investing lets you benefit from compounding and smooths out market ups and downs.
The Ernst & Young Provident Fund – Quarterly Investment performance
The Ernst & Young Provident Fund is a defined contribution Fund. Members are defaulted into a lifestage strategy in which they are invested aggressively during the younger years of their career, and de-risked as they approach retirement. Members are also able to opt out of the lifestage strategy and select their own investment portfolios, as additional member choice portfolios are available to choose from.
Since the Fund is a defined contribution fund, it is the Trustees’ responsibility to ensure that there is an appropriate range of investment portfolios. The Trustees are also required to make an assessment of the investment needs or risk profile of the majority of the members, and then to tailor the investment as conservatively or aggressively as necessary in terms of the Fund’s overall profile. The Trustees therefore aim to provide members with suitable investment portfolios with long-term returns that suit the majority of the members’ needs.
In a defined contribution fund, the performance of the invested assets directly determines the member’s eventual retirement benefit. Prudent financial management therefore dictates that one regularly monitors these investments with the aim of assessing their continued appropriateness.
A key part of this process is monitoring the performance and determining whether actual investment performance measures up to expectations.
The Ernst & Young Provident Fund has an Investment Sub-Committee. The Board delegates to this committee the responsibility of selecting investment vehicles that meet the needs of the majority of Members. In making their decision to choose a particular investment vehicle over another, a key criterion will be the past and the future expected performance of such vehicles. It is crucial that the Trustees monitor investment performance in order to establish if these expectations have been met.
The Accumulation portfolio is the Funds’ flagship investment portfolio providing members with exposure to eight different underlying investment managers, providing investments in a mix of different asset classes. This portfolio is also the cornerstone of the Fund’s lifestage strategy.
EY Accumulation Portfolio/ Aggressive
As of date: 30/09/2025
3-year rolling returns Time period: Since common inception 1/10 2019 to 31/07/2025
Investment objective
The EY Accumulation Portfolio is aggressive and therefore displays high levels of volatility over the short term, while aiming to provide market-related growth. The EY Accumulation Portfolio or Aggressive Portfolio is a combination of balanced portfolios and best-of-breed specialist managers in various asset classes, to deliver an optimal risk return payoff.
The Accumulation portfolio has consistently outperformed the AF Global Large Manager Watchlist Medium over a 1-, 3and 5-year period since its inception.
Summary of Returns
Total Return (Gross) As of Date: 30/09/2025
Fund Costs
The Board of Trustees are pleased to advise that as from 1 January 2026 the ad-hoc deductions from contributions will decrease to 0.500% of pensionable salary. This is illustrative of the ongoing commitment from the Board of Trustees to manage fund costs. This has the effect that more
Financial advisors
Just a brief reminder –approximately 90% of South Africans who retire, cannot afford to do so. Please make sure that you are saving adequately for your retirement.
Reminder to seek financial advice:
at least once a year to consider the adequacy of your retirement plan savings when you resign from the Employer to understand the various options on what to do with your retirement benefit
at least three years prior to your actual retirement date
Staying connected to your Fund:
AF Connect (previously AF Online) has a new look and feel, along with added functionality — including the retirement planning projection tool!
AF Connect
WhatsApp functionality has also been launched by Alexforbes.
Note, in order to make use of the WhatsApp functionality, you have to be registered on AF Connect (Online).
Members can view their online benefit statements, download them in PDF format, and access other information such as their investment values.
reasons to start investing while you are young
More time = more growth
The earlier you invest, the more time your money has to grow through compound interest.
Build better financial habits
Investing early teaches discipline and patience; skills that lead to smarter money decisions in the long run.
Reach your life goals sooner
Investing makes big goals more real and achievable like travelling, owning a house or retiring early.
Meet
the Trustees
Employer-Appointed Trustees
Member-Elected Trustees
Mike Bourne
Chairman of the Board
Independent EmployerAppointed Trustee
Deon van der Walt
Employer-Appointed Trustee
Chairman of the Audit Sub-Committee
Chairman of the Governance and Risk Sub-Committee
Member of the Finance and Budget Working committee
Ronelle Govender
Employer-Appointed Trustee Risk and Governance Sub-Committee
Hannes Boshoff
Employer-Appointed Trustee Chairman of the Investment Sub-Committee
Janneman Labuschagne
Employer-Appointed
Alternate Trustee
Chairman of the Death Claims Sub-Committee
Allister Carshagen
Employer-Appointed
Alternate Trustee
Investment Sub-Committee
Finance Working Committee
Chairman
Christo Du Toit
Deputy Chairman
Member-Elected Trustee
Death Claims Sub-Committee
Sarah Masinamela
Member-Elected Trustee
Audit Sub-Committee
Risk and Governance Sub-Committee
Emile Du Toit
Member-Elected Trustee
Death Claims Sub-Committee
Investment Sub-Committee
Finance and Budget working committee
Jason Samara
Member -Elected Trustee
Tamaryn-Leigh Winter
Alternate-Member Elected Trustee
Chairperson of the Communications Sub-Committee
Cameron Stewart
Alternate-Member Elected Trustee
Audit Sub-Committee
Communications Sub-Committee
Complaints process
Complaints, queries and questions – Who to lodge your complaint with
To make things easier and more efficient for you as a Fund member, we ask that you first lodge your complaint in writing to the Fund’s Principal Officer and then the Administrator of the EY Provident Fund.
Contact details
Alexforbes Complaints:
Tel: 0860 000 279
Email: contactus@alexforbes.com
The Principal Officer’s contact details are:
Name: Mr Marius Otto
Tel: 083 601 2759
Email: Marius.Otto@za.ey.com
The Chairperson’s contact details are:
Name: Michael Bourne
Tel: 082 603 0772
Email: Michael.Bourne@za.ey.com
Alexforbes Contact Centre
Tel: 0860 100 333
Email: admin@alexforbes.com
Pension Funds Adjudicator
Tel: 086 066 2837 or 012 748 4000
Email: enquiries@pfa.org.za www.pfa.org.za
FAIS Ombud
Tel: 012 470 9080
Email: info@faisombud.co.za www.faisombud.co.za
National Financial Ombud of South Africa (NFO)
Tel: 0860 800 900 www.nfosa.co.za
Information officer
Name: Mr Marius Otto
Tel: 083 601 2759
Email: Marius.Otto@za.ey.com
Information Regulator Email:
Email: complaints.IR@justice.gov.za www.justice.gov.za/inforeg
Lodge an official complaint in writing to the Fund. All complaints should be lodged here so that they can be investigated and dealt with promptly. We aim to resolve 80% of complaints within 4 working days.
If your complaint is not resolved to your satisfaction, then you may direct your complaint to the Fund’s Principal Officer and /or the Fund’s Chairperson.
All queries to be logged at the Alexforbes Contact Centre. We have a 2 business day turnaround timeline for a response.
Lodge a complaint with the Pension Funds Adjudicator if your complaint about the Fund or the Trustees is not resolved to your satisfaction through the Contact Centre.
Lodge a complaint with the FAIS Ombud, if your complaint about the quality or appropriateness of the financial advice you received from your financial adviser was inappropriate.
If you have a complaint about a financial service provider in the banking, short-term insurance, longterm insurance and credit sectors, you can contact the NFO for free assistance.
Lodge a complaint in writing to the Fund’s information officer if you are dissatisfied with the manner in which your personal information has been processed or if your privacy rights have been compromised or breached.
Lodge a complaint with the Information Regulator if you remain dissatisfied with the Fund’s information officer’s response to your complaint.
Your feedback is important to us and we take your complaints seriously!
