The RFS Blog: research, news & topical articles

August 2008 - Life stage investing : Does it make sense? Certainly some sell it as the alpha and the omega of pension fund investment philosophy. Read a detailed exposition of the dangers of life stage investing and fixed annuities from itinews of 1 August 2008, here>>

June 2008 - The geopolitics of US$ 130 per barrel: We all know of course that oil is a limited and declining resource and therefore it is highly sensitive to speculation. But why should people be concerned about projected short supplies in 5 to 10 years’ time today? Many analysts believe that speculation is at the root of this problem of global proportions. Read more, here >>

May 2008 - When will the Labour Act 2007 be implemented? "We don’t know," says the Namibian Employer's Federation, and recommends "… do not try to implement any clauses, do not be coerced into implementing any clauses, until you have a clear message as to which clauses have been implemented…" For more information, download their circular, here >>

March 2008 - How Buffet did it: A long term investment strategy is how Warren Buffett made his fortune as the richest man on earth.For some insight into growing your wealth, click here>>

March 2008 - How to choose your fund manager: an interesting commentary on a rather difficult subject can be found here>> And a ruling by SA Pension Fund adjudicator from itinews, on the case of AJ Nortje vs Joint Municipal Pension Fund, that contemplated to reduce benefits that had already accrued to Nortje retrospectively to a date before date of registration of the enabling rule amendment can be found here>>

March 2008: Recent amendments to Regulation 28 as well as the Severance Pay clause of the Labour Act require close scrutiny by asset managers and employers respectively. Find comment on Regulation 28, here>> And find commentary on the Labour Act, here>>

March 2008: An interesting ruling by SA Pension Adjudicator in the case of P vs Escom Pension & Provident Fund, where the fund turned down a disability claim based on mental infirmity that appeared in itinews of 6 February 2008 can be read here>>

February 2008: The market has recovered nicely leading some to ask if they should get out now? It may be unjustified risk behaviour. Do you understand your own investment behaviour? Read an interesting analysis and understand yourself on investment behaviour here>>

January 2008: On the events of Monday, 22 January 2008: Did you foresee the recent blood-letting in global financial markets? We didn’t exactly either, but for the past two years we were adamant that, certainly our local markets, had grown inexplicably, way out of line with inflation and economic growth, and seemingly tracking the increase in the price of oil. Read RFS' position and find advice, here>>

January 2008: An SA ruling on trusts - In Lepebe vs Premier Foods and in Mafe vs Barloworld Retirement Fund, SA Adjudicator rules that death benefits of minor beneficiaries should not be paid into a trust as a matter of course, if the guardian is competent and qualified to administer the benefit. Read the report in itinews here>>

December 2007: The end of the interest rate cycle may not have arrived yet. Read Metropolitan Asset Management Rajaan Woodroffe's views here>>

December 2007: The Bank of Namibia decided to leave the Bank Rate unchanged at 10.5%, despite a 0.5% increase to 11% announced by SARB on Thursday 6.12.2007. For a review of the economy, read the Monetary Policy Press Statement issued by BoN, here>>

November 2007: The Retirement Funds Institute is 'rising from the ashes', and it deserves support in achieving the goals it has set itself by every pension fund and every other person and party that draws any benefit from the retirement funds industry. For more information on RFIN's objectives and plans, download the November RFIN Newsletter, here>>

November 2007: Where are our governance shortfalls? A summary of the PwC Survey, by Richard Morris of PwC, that appeared in September 2007 Pensions World can be read here>>

November 2007: Can you transfer capital at retirement, or in respect of pensions in payment, out of one approved fund into a policy that is not issued to another approved fund? Some insurers want to make us believe you can – we disagree. Read more here>>

November 2007: Union members take note – you are accountable only to the fund you serve, not to your union! Important reading for you, here>> Or visit Today's Trustee>>

November 2007: Fund Governance - Don’t Get Shookup By PF 130 - Fund governance, fiduciary duties, risk, blah… blah…blah -Who still wants to be a trustee? Get some consolation from this perspective in Today’s Trustee Sep/Oct 07 issue. Or visit Today's Trustee>>

October 2007: Trustees take note of Namfisa’s full page advert in the newspapers of 23 October. A number of compliance issues are addressed here and funds are urged to get their house in order by 31 March 2008. If you missed it, read it here>>

October 2007: Living Annuities – how long will your capital last? A scientific analysis by Mathew de Wet of Nedgroup Investments (August 2007 edition of Blue Chip) that should make interesting reading, here>> (PDF)

October 2007: Another ruling by the SA Pension Funds Adjudicator, confirming the principle to pay death benefits to major beneficiaries in form of a lump sum in Moralo vs Holcim, and while we are at it, another reminder to trustees, to comply strictly with the rules of the fund in Mnguni vs Abbott Laboratories on entitlement to benefits (September edition of Cover magazine), here>> (PDF)

October 2007: Ever wondered what the issue of ‘risk’ is all about? For a concise discussion of key areas by Mimi Pienaar of SkillCore (Blue Chip August 2007), click , here>> (PDF)

October 2007: The SA Reserve Bank lifts repo rate by another 0.5% to 10.5%. This would raise prime rate in Namibia to 14.25%. Read the BoN Monetary Policy Statement, here>> (PDF)

October 2007: The new and long-awaited Labour Act amendments have been released. Retirement Fund Solutions Director Marthinuz Fabianus has cast his eye over the document and noted a few points of immediate interest. Read his impressions and find a few pointers, here>> (PDF)

September 2007: SA needs clarity on social security pleads Hillary Joffe in Business Day of 11 September following conflicting statements made by President Mbeki, Finance Minister Manuel and Social Development Minister Skweyiya. Discussion is about compulsory participation of all employees and employers, but where SA is different to many countries who followed this route she says, is that there already exists a vibrant well developed private sector industry. Cosatu on the other hand gets impatient with the progress – ‘Retirement industry needs a revolution ..and…it seems likely workers would see the World Cup before they saw the new Retirement Funds Act’ it complains (reported in same paper). So were are we heading in Namibia?

August 2007: South African courts now mean business when when handing down sentences involving contravention of fiduciary duties and have handed down a breakthrough sentence for surplus stripping. Read the article from itinews of 29 August 2007, here>> (PDF)

August 2007: The SA Reserve Bank raised the Repo rate by another 0.5% to 10% on 16 August. For the full policy statement click here>> (PDF)

August 2007: Many Retirement Funds have introduced a capital preservation/ protection option for those within sight of retirement. If you are one who can exercise this option, for some sound advice by Tobie van Heerden, actuary at Investec, from July edition of Extra Cover, click here>> (PDF)

July 2007: If there is no evidence that a major beneficiary is under legal or mental disability, trustees have failed to properly exercise their discretion if they pay the lump sum benefit into a trust. Read Mamodupi Mohlala’s commentary in 20 July 2007 itinews, on Motalo vs Holcim SA Provident Fund, here>> (PDF)

July 2007: What controls exist within an asset manager and how ‘safe’ are these ‘safeguards’? Greg Fury of Allan Gray looks at this in an article in itinews of 18 July 2007, here>> (PDF)

July 2007: Most funds pay death benefits due to minor dependants into a trust. But does this rid you of your responsibility? Read the article by Cathy Mclune of ABSA Trust from the June 2007 edition of Pensions World, here>> (PDF)

July 2007: Corporate Governance should be at the top of every manager’s agenda, after all the fidelity breaches in the recent past! Funds must beef up on corporate governance, but members must brace themselves to pick up the tab. Read more about the vital role of the Independent Trustee from itinews of 29 June 2007, here>> (PDF)

June 2007: The SA Evercrest hedge fund has collapsed, losing R 200 million for its investors. Here are some interesting ex post facto observations about this case for the adventurous investor, from Moneymarketing of 29 May. Click here for more>> (PDF)

May 2007: R 1 bn of Fidentia assets is still unaccounted for - Here is a real life story of how the 'big fish' typically manage to get away - as told by an attorney, on how R 24 million was stolen from under his nose. Read more from this extract from Moneymarketing, here>> (PDF)

May 2007: Some interesting observations by former SA Pension Funds Adjudicator Vuyani Ngalwana about the status of pension funds legislation and consumer protection in SA, with relevance to Namibia as well (source: Sunday Times website). Read more, here>> (PDF)