In June 2024, the average prudential balanced portfolio returned 1.7% (May 2024: 1.2%). The top performer is Momentum Namibia Growth Fund, with 2.8%, while Allan Gray Balanced Fund, with 0.01%, takes the bottom spot. Momentum Namibia Growth Fund took the top spot for the three months, outperforming the ‘average’ by roughly 1.3%. Allan Gray Balanced Fund underperformed the ‘average’ by 2.0% on the other end of the scale.

The Monthly Review of Portfolio Performance to 30 June 2024 reviews portfolio performances and provides insightful analyses.

The Early Bird fund performance indicators for June 2024 have been released. To get an early feel for what to expect of the month in terms of returns on your pension investment, the market gained 3.91% (Allshare Index ex div), ranging between 6.84% (Consumer Services) and -5.64% (Oil & Gas Producer). The Rand strengthened by 3.78% to the US$. Typical prudential managed pension portfolios returned between 2.235% (Ninety One Namibia Managed Fund) and -0.097% (Allan Gray Namibia Managed Fund) after fees.

In May 2024, the average prudential balanced portfolio returned 1.2% (April 2024: 1.0%). The top performer is Allan Gray Balanced Fund, with 1.7%, while Lebela Balanced Fund, with 0.7%, takes the bottom spot. NinetyOne Managed Fund took the top spot for the three months, outperforming the ‘average’ by roughly 0.8%. Lebela Balanced Fund underperformed the ‘average’ by 1.0% on the other end of the scale.

The Monthly Review of Portfolio Performance to 31 May 2024 reviews portfolio performances and provides insightful analyses.

Should you still try to make hay while the sun shines?

Would you invest in Europe or the US if you knew that Russia would launch missiles armed with nuclear warheads tomorrow? It is perhaps a hypothetical question now but closer to reality than most people might think.

When we think of investing, we think of Europe, the US and Japan. Every other destination would only be considered hesitantly. Pension fund asset managers’ asset allocation reflects the same thinking. Besides their compulsory domestic exposure, most of their funds are invested in Europe, the US and Japan. The investment in other markets is usually well below 10%. I have never seen any Chinese, Indian or Turkish share in their top ten. It is a bit of herd mentality aimed at protecting their interests. They do not want to be the tallest poppy getting its head chopped off.

The West is facing a severe threat to its economic system that dominates the global economy. As a result, many prominent commentators agree that World War III is already raging in Ukraine and now the Middle East. Europe is not ready to enter the war yet. Europe is propping up Ukraine while it gears up to join the war with all its resources. In the meantime,  it will push ever more resources into Ukraine, hoping it will last long enough until Europe is ready. Will Russia afford Europe the time to prepare? It is inconceivable as it would drastically weaken Russia’s chances of surviving. As things stand, Russia’s best bet is to overrun Ukraine before Europe is ready to engage it. However, Russia is facing a dilemma.

Read on in paragraph 6 of the Monthly Review of Portfolio Performance to 31 May 2024. It also reviews portfolio performances and provides insightful analyses

A number of members of employer groups have unclaimed benefits in the Benchmark Retirement Fund. They were employees of Ark Trading, African Business Investments, Agra, Brandberg Construction, Diesel Electric Holdings, Gondwana Group, Lady Pohamba Private Hospital, Namibia Lead and Zinc Mining, Namibia Engineering Corporation, Nedbank, Plastic Packaging and Wilderness Group. Members should please contact RFS Fund Administrators’ offices on tel. 061 - 446 000 and present a valid Identification Document or valid Drivers License. If you know a person on this list, please inform her or him.

The Benchmark financial highlights for 2023 have been released and can be downloaded here.

If you couldn't attend but still want the updates and insights, or want to refresh your knowledge, watch the videos of the 2023 Annual Member Meeting here...

The Board of Trustees announced the appointment of Mr. Hermann Hentschel as independent trustee to the Benchmark Retirement Fund effective 1 November 2023.

Mr. Hentschel brings a wealth of experience to the Benchmark Board, having served as Chairperson of the FirstRand Namibia Board, Vice Chairperson of the FirstRand Namibia Pension Fund, and Trustee on the O&L Pension Fund.

Mr. Hentschel holds a Master of Science in Leadership and Change Management and a B-Com (Hons) in Management Accounting. He is an associate member of the Chartered Institute of Management Accountants (CIMA).

The Board welcomes Mr. Hentschel to the Board and looks forward to the value he will add to the Benchmark Retirement Fund.

The Board of Trustees resolved to appoint Mrs. Sophia Amoo-Chimunda as Principal Officer of the Benchmark Retirement from 1 July 2022.

Mrs. Amoo-Chimunda will take over from Mr. Günter Pfeifer, who has been serving as Principal Officer in the interim while the Fund was recruiting an independent Principal Officer, as required by the Financial Institutions and Markets Act.

Mrs. Amoo-Chimunda is a legal practitioner with some 16 years’ experience in pension, labour, contract and financial services laws. She has been serving as an Independent Principal Officer of the Protektor Namibia Preservation Funds and is still serving as Independent Principal Officer of the Roads Authority Employee Retirement Fund as well as the Old Mutual Namibia Retirement Fund. She serves as an Independent Trustee of the Napotel Pension Fund.

From 2007 to 2010, Mrs. Amoo-Chimunda was employed at NAMFISA, initially as legal advisor and eventually as Manager Pensions and Friendly Societies.

On behalf of the Board, I want to welcome Mrs. Amoo-Chimunda – we look forward to the wealth of experience and industry-related knowledge she brings along, which will equip the Fund to continue serving its members and stakeholders, as well as transitioning to the new legislative environment.

H-H Müseler
Chairman: Board of Trustees

The Board of Trustees of the Benchmark Retirement Fund appointed Ms. Sabrina Jacobs as a Trustee of the Fund effective 1 May 2021. More...

Benchmark Retirement Fund is changing its trustees. In terms of the Financial Institutions and Markets Bill, service providers to a fund can no longer serve as trustees to the Fund once the new Act is effective. Over time, trustees of the Benchmark Retirement Fund who are closely associated with the founder Retirement Fund Solutions (RFS), either as shareholders or employees will not serve on the board. More...

Trustees mostly understand that it is a risk to engage a single manager to manage their fund’s assets within a single investment mandate. But do they understand what risk or risks they face and which one will be reduced through the appointment of more than one manager and what is the correct number of managers to use?

Read more...

We wish to draw the attention of employers who participate in the Benchmark Retirement Fund, to the fact that it is a requirement that all new employees joining the employer after the date the employer joined the fund, must be enrolled as members of the fund. This is not optional and employers affording new employees the choice whether or not to become a member are transgressing the rules, the agreement with the fund and the requirements of the Income Tax Act.

Employers who engage in such practice firstly may find that the Receiver of Revenue cancels the tax approval of the employer’s pension fund. In terms of the Income Tax Act, membership of a fund must be obligatory in order for employee contributions being allowed as a deduction against the employee’s taxable income. Cancellation of tax approval will mean that the contributions that employees have made to the fund will be disallowed. In other words the employees that participate will be punished for the transgression by those the employer afforded the choice to join and who chose not to join.

From the fund’s and the insurer’s perspective it is also important that membership is a condition of employment. This serves to ensure that the employees cannot apply anti-selection. In other words healthy employees are more likely not to join while those who know to have a health impediment are more likely to join. As the result the fund may end up with the poor risks undermining the principles of group underwriting. To protect the fund against such practices, the trustees have the powers to terminate membership of an employer.

Seven habits of financially healthy retirees

Sanlam has provided a guide to the seven good habits of financially healthy retirees. How do you measure up? Click here for the bigger picture...

Why preserve your retirement capital?

How you manage your pension fund when you resign will decide your wealth. You may withdraw it, but is that the best choice for your future?

Benchmark retirement capital preservation

When you change jobs, stop working or are retrenched and have to withdraw from the retirement fund you have been contributing to, you can preserve your fund credit in the Benchmark Retirement Fund.

By transferring your fund credit to the Benchmark Retirement Fund you will preserve it for retirement and will be able to grow it with investment returns.

Preserving your fund credit is imperative to ensure that you reach your retirement objectives and is a tax efficient way to exit your current retirement fund.

Benchmark living annuities

When reaching retirement age (depending on the rules of your current retirement fund), you can invest your fund credit in an investment linked living annuity in the Benchmark Retirement Fund to receive your monthly pension.

You can join Benchmark Retirement Fund on retirement. You do not already have to be a member of the Fund at that stage.

The monthly pension can be chosen by you, taking the requirements of the Income Tax Act into account. The monthly pension will be a function of the amount of capital available, the investment returns earned and the period for which you require a monthly pension.