In this newsletter:
Benchtest 10.2014, our investment market commentary, service provider due diligence, tax and benefits, status of SIH reporting and unlisted investment and more...
Areas that need to be addressed through a due diligence assessment of the SPV and of the UIM should cover the following areas:
If any of the afore going conditions cannot be met through circumstances considered out of the control of the trustees at any point in time, an application for extension or exemption is made to and granted by Namfisa.
Having provided an extensive process and checklist, good governance dictates that the attention trustees apply to unlisted investments should be commensurate with the attention they apply to the 'conventional' investments of their fund.
RFIN breakfast session on tax issues affecting pension funds
Death benefits, housing loans and income tax
Lahja Hailulu from Rand Merchant Bank won the NS 5,000 bursary offered at the RFIN Expo and the Annual Member Meeting. Ms Hailulu said she is very grateful for the opportunity and will use the amount to fund a part of her daughter's school fees in 2015. Pictured FLTR: Günter Pfeifer (RFS Director of Operations), Lahja Hailulu (RMB), Tilman Friedrich (RFS Managing Director).
RFS Staff movements
All principal officers have received the latest version of the statement of investment holdings report from Namfisa on Monday 3 November. The format of this report has changed once again. The due date for submission of the reports for each quarter of 2014 remains 28 February 2015.
In this article the author makes the point that companies which reliably grow their dividends, tend to outperform over time. He cites an investment of R 100,000 in Clicks in 1996 that would have bought 25,641 shares and would have earned a dividend of R 1,840 in the first year. The same number of shares would have earned a dividend of N$ 43,000 in 2013. This is an annual growth in income of 20.4% over a time when inflation average 6.1%.
Download the article by Brian Vambe in Sanlam's Funds on Friday, here...
The first case is that of Complainant vs Protea Technology Retirement Fund, NBC Administration Services (Pty) Ltd and Protea Technology (Pty) Ltd. In this case the employee retired and accepted another job with a competing employer during his notice period. The employer labelled this breach of the restraint of trade as amounting to misconduct. The Adjudicator acknowledged an earlier court ruling that the member was in breach of his restraint of trade clause in his employment contract. However the adjudicator found that a breach of restraint of trade is not misconduct and cannot justify withholding payment of a withdrawal benefit.
"There has hardly been a day that goes by where the media headlines grip the attention of citizens, announcing yet another case of poor governance practices, or a director engaging in reckless business conduct."
This is another must read for anybody who serves on a board of directors (or trustees for that matter). Download the article by Terrance M Booysen in InsuranceGateway here...
Read this useful advice by Liz Ryan, CEO of Human Workplace in LinkedIn, here...