M.Comm. / The South African investment management sector is considered well-developed with local fund managers managing approximately ZAR2.1 trillion in assets as at the end of June 2009. These assets grew to approximately ZAR2.4 trillion as at the end of June 2010. The majority of these assets are made up of institutional funds which include retirement funds. Retirement-fund investment savings have a profound impact on the country’s economic welfare not only because it provides income to a large number of aged people in South Africa, but also because it contributes to the country’s overall economic wellbeing. Therefore, one of the biggest challenges within the retirement fund industry is to ensure that retirement-fund savings are invested in an optimal way.