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  • Benchtest 2019-07

    In July 2019 the average prudential balanced portfolio returned -0.7% (June 2019: 1.7%). Top performer is Allan Gray Balanced Fund with 0.1%, while Momentum Namibia Growth Fund with -1.6% takes the bottom spot. For the 3-month period, Investment Solutions Balanced Fund takes top spot, outperforming the ‘average’ by roughly 1.2%. On the other end of the scale Allan Gray Balanced Fund underperformed the ‘average’ by 1.8%. Note that these returns are before asset management fee.

    When is a good time to switch to another investment manager?

    Retirement fund members who have become used to Allan Gray ‘shooting the lights out’ often can no longer bear with its performance lingering right at the bottom or close to the bottom of the performance ranking tables of prudential balanced managers, for periods up to 5 years as depicted in graphs 1.2 to 1.7 in our review. For the month of July Allan Gray managed to rise to the top, given that it is a very short period and bears no relevance.

    As the result, clients more and more often contemplate or even decide to move their investments away from Allan Gray to another manager. The questions are - is it a good time to move away from Allan Gray and when is a good time to move away from your trusted manager?

    I guess when we talk about buying or selling a house, there will be little argument about not selling when the market is at the bottom and not buying when the market is at the top. This is a sensible principle that one should apply to one’s investments and investment manager as well. The difficulty however is to know when any asset has reached the bottom or the top.

    Read part 6 of the Monthly Review of Portfolio Performance to 31 July 2019 to find out what our investment views are.

  • Quarterly reports 2019 Q2



  • Early Bird 2019-07

    The Early Bird fund performance indicators for July 2019 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 lost 2.44% (Allshare Index ex div), ranging between -5.24% (Basic Materials) and 3.21% (Consumer Goods). The Rand weakened by 0.41 % to the US$. Typical prudential managed pension portfolios returned between 0.772% (Coronation Balanced Plus Fund) and -2.722% (Prudential Balanced Plus Fund) after fees.

  • Benchtest 2019-06

    In June 2019 the average prudential balanced portfolio returned 1.7% (May 2019: -2.8%). Top performer is Hangala Prescient Balanced Fund with 2.8%, while Allan Gray Balanced Fund with 0.4% takes the bottom spot. For the 3-month period, Hangala Prescient Balanced Fund takes top spot, outperforming the ‘average’ by roughly 1.7%. On the other end of the scale Allan Gray Balanced Fund underperformed the ‘average’ by 3.3%. Note that these returns are before asset management fees.

    Avoid permanent loss but be prepared to give up value

    If you own something you do not use, chances are you will lose – “use it or lose it” is a rugby rule. It applies to all spheres of life. What you use, no one will be able to take from you, if we equate ‘using’ to ‘consuming.

    This wisdom also applies to your investments. Your capital is something you do not use and chances are you will lose. This is not to say that you will always lose, but there will be times when you will lose. The best thing you can do is to be prepared for losing at times.

    One also needs to distinguish between different types of losses namely, a temporary loss and a permanent loss. A permanent loss is something you cannot recover as opposed to a temporary loss.

    Since we are dealing with pension fund and personal investments, in terms of market conditions we find ourselves in a situation where we feel we have been on a losing streak for quite some time.

    Read part 6 of the Monthly Review of Portfolio Performance to 30 June 2019 to find out what our investment views are.

     

  • Unclaimed benefits

    A number of members of employer groups have unclaimed benefits in the Benchmark Retirement Funds. They were employees of African Business Investments, Agra Ltd, Brandberg Construction, Gondwana Group, Hartlief Corporation, Hollard Insurance Company of Namibia, Medfam Holdings, Namibia Engineering Corporation, Namibia Nature Foundation Trust, Namibia Red Cross Society, Diroyal Motors t/a Novel Motor Company, Plastic Packaging, Scania Namibia, Schoemans Office Systems, Tunacor Fisheries Limited, The Free Press of Namibia, Tyrepro Namibia and Wilderness Group. Members should please contact Retirement Fund Solutions’ 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.

  • 2018 Financial Highlights

    The Benchmark financial highlights for 2018 have been released and can be downloaded here.

  • Quarterly reports 2019 Q1

  • Selecting asset managers to diversify risk

    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...

  • Fund membership must be a condition of employment

    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

    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?

    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

    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

    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.

Retirement Fund Solutions

Managed by Namibians. Trusted by Namibians.

Benchmark Retirement Fund

Efficient. Trusted. Namibian.

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