In this newsletter:
Benchtest 05.2013, how do you cost for a service, should you rotate your service providers, a change of guard at RFS, Benchmark, developments re National Pension Fund and more...
We have been concerned about the exaggerated growth of local equity markets as the result of fiscal and monetary intervention by governments and reserve banks across the globe for some time. This intervention has resulted in large flows of capital into emerging markets such as South Africa, in search for higher yields outside the low interest rate environments of the developed world.
For us in Namibia, equity and equity investors benefited from a strong Rand and borrowers from low interest rates. Those that invested offshore or in fixed interest instruments suffered.
It becomes ever more evident that the tide is busy turning. Interest rates will increase further over time and the trend of the Rand will remain negative.
Considering these key risks a service provider presents to a fund, it is quite evident that the risks referred to will not be addressed through rotation of service providers.
Did you know?
The National Pension Fund
The report recommended the following final design for the NPF after a workshop that was held in September 2012 with the participation of Social Security, labour and employers:
The social protection element is envisaged to look as follows:
Word has it that after all the time and effort invested in, and despite the consensus that was attained, senior government officials have now vetoed these proposals.
Linda Eedes, analyst at RE:CM comments on the following 3 ‘investment myths’ in Sanlam’s Funds on Friday:
Download the article here…
Read the full article, published in Forbes, here…