|In this newsletter:
Benchtest 04.2018, s14 and unclaimed benefits, levies on long-term insurers, RF.S.5.14 and RF.S.5.15 analysed and more...
Important notes and reminders
The following regulations and standards were issued and covered in the process:
The above regulations were covered in the Benchtest 2018-02 newsletter issued in February.
Requirements applicable generally
Requirements applicable generally
Requirements applicable to defined contribution funds –
Requirements applicable to retirement funds other than defined contribution funds –
The following documents can be further adapted with the assistance of RFS.
News from RFS
Carmen Diehl C.A. (Namibia) matriculated at DHPS in 2000. She obtained a B. Accounting (Honours) degree in 2004 at 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, whereafter she joined Ohorongo Cement. Carmen is certainly best qualified and destined to promote our slogan ‘rock solid pension fund administration that lets you sleep in peace’!
We are pleased to announce that Karin Douglas has joined our permanent staff establishment as from 1 May 2018. Karin joined us in November 2017 from Alexander Forbes Financial Services where she last held the position of administration supervisor. She completed her schooling at Windhoek High School. Karin obtained a diploma in financial management from Damelin Management School and underwent a number of pensions related training courses at Alexander Forbes. She started off her career in various accounting and retail positions to eventually enter the world of pension fund administration in 2006. Karin serves a portfolio of Benchmark employers and her 12 years’ experience no doubt stand her in good stead to promote our slogan ‘rock solid fund administration that lets you sleep in peace’ amongst her clients! We extend a hearty welcome to Karin and look forward to her being a key ‘player’ for many years to come!
On a sad note, we announce that Alida Venter will be leaving RFS at the end of May. Alida was no stranger to the founders of RFS, when she joined RFS in November 2005, having been employed by UPA as part of the same team before. Alida has been responsible for the administration of a number of our largest pension funds over the 13 years she has been in RFS employment. Alida stood out with her friendly and helpful demeanour. She will be remembered fondly by those she has been serving over the years and will be missed dearly by her colleagues at RFS. Alida will be emigrating to SA. We thank Alida for her contribution to the success of RFS and wish her all the best in her future endeavours!
News from NAMFISA
Stakeholder engagement session – directors and trustees
NAMFISA hosted a stakeholder engagement session for boards of trustees and directors of fund sponsors and financial institutions, on 19 March. We provided our notes of the proceedings in our previous newsletter. NAMFISA has now circulated the minutes of the meeting.
Download the minutes here...
(for stakeholders of the retirement funds industry)
Could this be ‘the single most important chart’ when it comes to managing money?
“Warren Buffett once said, “wide diversification is only required when investors do not understand what they are doing.”
The knock on spreading funds across a variety of assets has traditionally been that such a composition saps a portfolio’s power. The upside, of course, is it limits risk exposure, which is particularly compelling during times like these…In fact, according to Mark Rzepczynski, of advisory firm AMPHI Research, if properly constructed, there’s actually more upside to a globally diverse, multistrategy, multiasset class portfolio. He used this illustration from Adam Butler of ReSolve Asset Management to show the power of low correlation. Rzepczynski describes it as “the single most important chart for any portfolio manager or investor”…
Read this short article by Shawn Langlois in Marketwatch of 17 May 2017, with a very revealing graph depicting the benefit of diversification, here...
(for investors and business)
Jim Rickards on the next financial crisis
In the link below is a very interesting interview with Jim Rickards who predicted the great financial crisis, a ‘must read’. Although slightly dated it is still very relevant and anybody following John Mauldin’s commentaries will be aware that he too currently emphatically warns of another financial crisis. Jim Rickards, the author of "Currency Wars", "The Death of Money", "The New Case for Gold" and most recently "The Road to Ruin" is no stranger to financial meltdowns. As general counsel for the hedge fund Long-Term Capital Management (LTCM), he had a front row seat as dozens of Wall Street institutions worked to bailout the firm with a $3.6 billion recapitalization.
The power of praise
“There's a movement afoot that says year-end performance reviews don't provide the frequency of feedback people require to understand and act on their professional development needs early enough. Ditch the year-end performance review, and instead provide regular, on-the-spot feedback, goes the thinking... A recent article by Rabbi Jonathan Sacks, the former Chief Rabbi of the United Kingdom, tells the remarkable story of Lena Rustin, a woman who discovered--and deployed--the power of praise to positively transform behavior. Most speech therapists focus on speaking and breathing techniques, and on the individual child...Lena did more. She focused on relationships and worked with parents, not just children. Her view was that to cure a stammer, she had to do more than help the child to speak fluently. She had to change the entire family environment.
The answer, Lena discovered, was praise. She told the families that every day they must catch each member of the family doing something right and say so specifically, positively, and sincerely. Every member of the family, but especially the parents, had to learn to give and receive praise… Through his work filming Rustin, Rabbi Sacks realized she had discovered a solution not just for stammering, but for group dynamics as a whole…”
Read the full article by Glenn Leibowitz in Linkedin of 9 May 2018, here...
Best paid listed insurance execs and the Gini coefficient
How about earning R 44 million per year? Outrageous most would say. Is this capitalism at its worst? Most of us will not be able to accumulate that figure in wealth over his or her entire working life.
Although we do not have the insight, we doubt that any Namibian earns even 10% of that amount. On the other end of the income scale, there is likely not much difference between SA and Namibia yet in accordance with the UNDP country comparison of Gini coefficient of 2013, Namibia’s coefficient at 63.9 is worse than SA’s at 63.1. Can any reliance be placed on these indicators?
Have insight into the full list of the best paid insurance executives in SA by Hilton Tarrant in Moneyweb of 18 May 2018, here…
From Capricorn Asset Management Daily Brief of 24 April 2018.
Blackboard wisdom at a filling station
A filling station has become quite a landmark in Gauteng, South Africa, with its daily #PetrolPumpWisdom, which are uplifting quotes written on a chalkboard. Some motorists say they deliberately travel this road just to read the quote which brightens their day. Here's one: