Retirement fund a reliable constant in members’ lives
enhancement of members’ benefits.
“The TSRF lays an emphasis on the integration of environmental, social and governance [ESG] factors in measuring the sustainability and ethical impact of any investment, which helps to better determine the future financial performance of the investment.
“The integration of ESG factors into our investment strategy is one of the main reasons we have invested in the Harrismith highway junction truck stop, which will improve the wellbeing of fund members by providing safe and secure overnight parking, a fully equipped and staffed medical clinic, accommodation for drivers to rest, ablution facilities and a laundromat, truck service facilities and a 24-hour restaurant, to name only a few of the facilities specifically geared to improve conditions for members and their employers.”
Letswalo says another element of the TSRF’s good governance are the clean audits the fund has secured for the past seven years and the submission of all regulated statutory returns.
“We are one of the few funds that has risk log by which we manage our investments by putting risk mitigation processes in place. We have diversified our investment strategy in order for us to be able to navigate both the good and bad investment environment in the economy.”
The fund has experienced excellent growth, with its asset base having grown from R2-billion in 2012 to R7-billion in 2018.
Letswalo explains that the strong governance of the fund is a result of the board of trustees, who themselves are members of the fund, so they know and understand memthe Transport Sector Retirement Fund, because the TSRF’s sphere of operations expanded to encompass the broader transport sector and the scope of the fund’s activities. The fund changed its rules to become an industry umbrella fund after the cancellation of the Collective Bargaining Agreement in 2014.
“The fund originally only covered the road freight and logistics sector, which is limited to transporters carrying other people’s goods for gain. However, there is a lot of movement in the industry among our members, most of whom are truck drivers and can work in any one of the many sectors in the transport industry.
“This movement negatively affected members’ retirement savings when they changed jobs and moved to a transport company outside our jurisdiction, as they had to withdraw their retirement savings.
“Now, the fund is seeing a lot of demand among employers and employees to join, because our fee structures are very low, which means members benefit directly from the fund returns that go directly into their retirement savings.
“We have recently finalised the benefit structure of the new people expected to join the fund from transport sectors that previously fell outside the scope of the TSRF.”
Letswalo explains that in a rapidly changing transport environment the TSRF is aiming to be the constant factor in members’ lives, which they can rely on both while they are working and when they have retired.