|In this newsletter:
Benchtest 07.2017, housing loan interest rate declines, Benchmark breaches N$ 2 billion and more...
Important notes and reminders
Kai Friedrich's Administration Forum
News from RFS
We are pleased to announce that Carmen Diehl was recently appointed to our permanent staff complement as Manager: Internal Audit, Compliance and Risk Management. Carmen matriculated at DHPS in 2000. She obtained a B. Accounting (Honours) degree in 2004 at the University of Stellenbosch. She started her articles with KPMG in 2005 and moved to EY in October 2006. She completed her articles with EY in 2008 and qualified as a Chartered Accountant (CA). She joined Bravura Namibia Trading in 2008 as Financial Manager. From 2009 until 2012 she was employed by the O&L group as group financial manager: corporate finance, where after she joined Ohorongo Cement. We extend our sincere welcome to Carmen and look forward to her contribution for the benefit of the company and our clients for many years to come!
News from NAMFISA
Update from meeting with NAMFISA held on 28 July 2017
By Marthinuz Fabianus
Proposed amendments to Regulation 29 under the PFA
The meeting was attended by mostly representatives of unlisted investment managers. There were only 3 or 4 pension fund representatives. Purpose of meeting was to find common ground on matters requiring further deliberation per Table B of latest NAMFISA notice letter of 14 July 2017.
(for stakeholders of the retirement funds industry)
PFA orders fund to pay compensatory damages
In this case (M Mhlanga vs Mineworkers Provident Fund) the younger brother of a deceased member of the fund complained to the Pension Fund Adjudicator (PFA) on 10 May 2016 that the fund had not paid out any death benefits to him as he had to take care for the maintenance of the children of the deceased who passed away on 11 August 2014. He had informed the fund of the demise of his brother in October 2014.
The fund initially claimed that the deceased was not entitled to a death benefit but only to a resignation benefit and that the resignation benefit was paid. On 27 July 2016, the fund realised that the payment made was in respect of a housing loan and that there was indeed a death benefit still payable. It requested the complainant to provide certain specific documents to the fund for the purpose of considering the allocation of the death benefit and that it will attend to the allocation of the benefit upon receipt of these documents.
The Pension Funds Act requires of the fund to identify the dependants of the deceased, allocate and pay a death benefit within 12 months, i.e. by 11 August 2015. The PFA found that as the result of the fund’s dilatory conduct, the deceased’s dependants suffered prejudice in that they have potentially been denied access to benefits which may have become available to them had the investigation been completed on time.
As the result of the fund’s failure to carry out its duties in terms of section 37 C of the PF Act the PFA ordered the fund to collect the required documents from the complainant, within 2 weeks from the date of the determination, to investigate and proceed with the allocation and distribution of the death benefit together with 10% compensatory damages within 8 weeks of the determination and to submit a prescribed report on the allocation of the death benefit to the PFA and the complainant within 2 weeks of payment of the benefit.
Read the PFA determination, here...
Retirement is not what it used to be
The increased use of living annuities has brought about huge challenges.
This article is a must read for anybody contemplating his or her options at retirement and considering to invest in a living annuity in particular. Investing in a living annuity presents risks to the annuitant arising from the investment portfolio/s chosen by the annuitant that he or she must be aware of and must know how to manage.
“The greatest risk that investors in living annuities face is the possibility that their money will run out. If they don’t even know that they face this threat, they are unlikely to be managing their investments properly. A living annuity needs to pay an income, and it needs to grow that income above inflation. To do that, you either have to keep growing the capital faster than you are paying it out, or you have to start giving capital back. That is a very difficult thing to manage over 30 years. On the other hand, investors who do recognise this problem may be so fearful of losing capital that they invest too conservatively. This means that they end up drawing income faster than they are growing their assets, ultimately leading to the same outcome.”
Read the full article by Patrick Cairns in Moneyweb of 10 August 2017, here...
6 Things you must get right at retirement
“For most people, reaching retirement will be the biggest financial event of their lives. It is a big jump from receiving a regular salary and the benefits that come along with that, to living off what you have saved. The risks of getting this wrong are severe. Making a mistake at this point could jeopardise all the years of hard work that have led up to it. There are essentially six important decisions that need to be made at retirement, and they are all inter-related.
(for investors and business)
10 qualities of superior leaders
Thousands of articles and books have been published describing what it takes to be a superior organizational leader. Some researchers and authors claim a superior leader possesses certain traits or abilities; others say it's all personality. Still others maintain it's the behaviors - not necessarily the intentions or thoughts -that are crucial.
Whatever your viewpoint, it boils down to this: successful leaders share the following characteristics or views:
Mission: A superior leader has a well thought out (often written) mission describing the purpose of the organization.
Cutting through the Bitcoin and Blockchain hype
By now most people would be aware of these new concepts in the world of finance, but do we understand what it entails?
Read part 1 of a series of 3 articles by Raymond de Villiers in Tomorrowtoday of 17 August 2017, here...
“Nothing strengthens authority so much as silence.”
~ Leonardo da Vinci