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| Issued December 2024 | |||||||||||||||||||||||||||||||||||||
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| In this newsletter... | |||||||||||||||||||||||||||||||||||||
| Benchtest 11.2024 – year-end-message from the managing director, cybersecurity in Namibia and more... | |||||||||||||||||||||||||||||||||||||
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| IMPORTANT NOTES AND REMINDERS | |||||||||||||||||||||||||||||||||||||
NAMFISA levies
The Bank of Namibia announced a further reduction in the repo rate to 7% in early December. The interest rate on funds’ direct loans will reduce to 11% from 1 January 2025. Registered service providers Certain pension fund service providers must register with NAMFISA and report to NAMFISA. Download a list of service providers registered as of June 2024, here... |
Retirement calculator Use our web-based retirement and risk shortfall calculator for your personal retirement planning. Find it here... If you need help with your financial planning, get in touch with
RFS provides comprehensive support for trustees. Find a list of download documents to assist with governance and management of private funds, here... |
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| IN THIS NEWSLETTER... | |||||||||||||||||||||||||||||||||||||
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In this newsletter, we address the following topics:
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Read the end-of-year message to RFS stakeholders in ‘A note from the managing director’.
In 'Tilman Friedrich's industry forum' we present...
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In 'Legal snippets', read about...
As always, your comment is welcome, so open a new mail and drop us a note! Regards Tilman Friedrich |
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| A NOTE FROM THE MANAGING DIRECTOR | |||||||||||||||||||||||||||||||||||||
| End-of-year message to RFS stakeholders | |||||||||||||||||||||||||||||||||||||
| RFS Fund Administrators (RFS): A Year in Review 2024 2024 was an eventful year, filled with significant achievements and growth. Through determination and teamwork, our team successfully tackled challenges while staying dedicated to delivering on commitments to our pension fund clients and their members. Here’s a look back at a year of transformation and resilience. Innovation at the Core: Driving Future Growth We took a monumental step by deciding to change our core business system, a transformation we began last July 2023. Completing the migration of all client records for our stand-alone pension funds by June this year was a tremendous achievement. We encountered unfamiliar hurdles, from pressure on our project leaders to team-wide challenges adapting to the new system. Adapting the new system to meet our stringent and unique operational needs required patience, flexibility, and resilience from all involved. We want to thank our exceptional team for their perseverance and our clients for their patience. This project is crucial to our future success; together, we are making daily progress. Celebrating Milestones: A Year to Remember In September 2024, we celebrated our company’s 25-year milestone in style, and we thank our dedicated employees, our loyal customers, our trusted partners, and our supportive communities. This milestone is a testament to the hard work, trust, and unwavering belief in us and our vision. Our success over the past quarter-century is a collective achievement - the overwhelming and patriotic support of our clients, most of whom supported us from the very beginning and have since not looked back. Together, we have built something truly special, a company that not only thrives but also makes a difference in the lives of many. Stronger Together: Our People, Our Strength We are thrilled to have added several new faces to our team, bringing fresh perspectives, enthusiasm, and talents that enrich our team. They have jumped in during a year of transformation, and we are deeply grateful for how they have embraced both the excitement and challenges. Building long-lasting service relationships is at the core of our business. This philosophy is extended to our employment relationships, and we celebrated service milestones of many of our colleagues - those marking 5, 10, 15, 20, and remarkably 25 years celebrated by Tilman Friedrich as founder employee of RFS Fund Administrators. We thank our loyal employees for their dedication, resilience, and the years of service that shaped our path. Delivering Value, Upholding Trust This year, we had the privilege of reaffirming the value we bring to our clients. During their regular service reviews, many of our clients benchmarked our offerings against strong competition, carefully evaluating their options. We are proud to have remained the partner of choice for many of our clients, a testament to their trust and confidence in our team. This trust underscores our commitment to delivering measurable value, fostering genuine relationships, and consistently exceeding expectations. We deeply appreciate the opportunity to serve as a reliable partner. Building Wealth, Securing Futures Responding to the fast-changing regulatory landscape, we established RFS Financial Advisors (RFSFA), which opened its doors at the beginning of March this year. This entity houses our Long-Term Insurance broker services and responsibilities. RFSFA currently employs a young and vibrant team of financial advisors under the experienced leadership of Annemarie Nel. We are excited and believe RFSFA will go a long way in building on our inspiring solutions and fostering innovation to navigate our business challenges and secure a resilient future for our business and the retirement funding industry. A Vision for Tomorrow: 2025 and Beyond It is not just about looking back. It’s also about looking forward. The world is changing faster than ever, and while we celebrate the past year, we embrace the future with the same passion and commitment that got us here. The next years hold incredible potential. With the successful implementation of our new and exciting pension fund management system, the addition of RFS Financial Advisors, alongside our tried and tested flagship umbrella fund, the Benchmark Retirement Fund, has given us every reason to remain confident and committed to the growth of our business and to be at the forefront and of service to our clients. |
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| TILMAN FRIEDRICH'S INDUSTRY FORUM | |||||||||||||||||||||||||||||||||||||
| Monthly Review of Portfolio Performance to 30 November 2024 |
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| In November 2024, the average prudential balanced portfolio returned 1.8% (October 2024: -0.2%). The top performer is NAM Coronation Balanced Plus Fund, with 3.3%, while Momentum Namibia Growth Fund, with 0.8%, takes the bottom spot. NAM Coronation Balanced Plus Fund took the top spot for the three months, outperforming the ‘average’ by roughly 2.8%. Allan Gray Namibia Balanced Fund underperformed the ‘average’ by 1.2% on the other end of the scale. Note that these returns are before (gross of) asset management fees. The Monthly Review of Portfolio Performance to 30 November 2024 reviews portfolio performances and provides insightful analyses. Download it here... |
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| An outlook on the world economy and financial markets in 2025 | |||||||||||||||||||||||||||||||||||||
| As we cross into 2025, the world faces many uncertainties that could severely impact economies and the financial market. During 2024, my main theme was that the world might drift into World War III. President-elect Donald Trump’s election statements on the US waging never-ending costly wars and ending the Ukraine war within 24 hours dim the prospect of a major military confrontation somewhat. My fear is, though, that there are very strong vested interests in driving global conflict. Commentators refer to these interests as the military-industrial complex in the US. Where I would have expected the US war industry to pull back in anticipation of a change of direction by President Donald Trump, I am seeing the opposite happening. Pressure on Russia and its allies is being intensified unrelentingly. Most recently, we had to witness the fresh offensive of Jihadists in Syria and social unrest in several neighbouring countries of Russia. Perhaps the US war industry intends to create facts for the new president that will force him to abandon his plans for America. In the event of a global conflict, the dynamics would change drastically. It would severely disrupt international trade, financial flows, economies, and supply chains while reallocating resources towards the war economy and essential services. Read paragraph 6 of the Monthly Review of Portfolio Performance to 30 November 2024 for our views on investment markets and global political developments. It also reviews portfolio performances and provides insightful analyses. Download it, here... |
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| Cybersecurity in Namibian pension fund administration: a path forward | |||||||||||||||||||||||||||||||||||||
| In today’s digital age, cybersecurity is critical across all sectors, especially in financial services. As Namibia’s largest pension fund administrator (outside the GIPF), we are at the forefront of addressing these cybersecurity demands. However, Namibia’s small-scale economy, limited economies of scale, and international competition present unique challenges that must be addressed holistically. This article outlines the current cybersecurity landscape in Namibia’s pension fund administration and proposes regulatory strategies to protect our members effectively. The Cybersecurity Landscape and Challenges The Namibian pension fund administration environment is unique. We operate in a small market where our entire member base constitutes only 46,000 records, a relatively modest number by international standards. Meeting global cybersecurity standards is challenging due to the high costs of implementing advanced cybersecurity infrastructure, often designed for larger markets. For our members, the cost implications are significant and unavoidable, as the expense of cybersecurity is ultimately reflected in administration fees. Our foreign competitors, on the other hand, benefit from economies of scale linked to their global operations. These companies rely on the cybersecurity infrastructure of their international parent organisations, achieving compliance more cost-effectively. However, this also limits our national regulator, the Namibia Financial Institutions Supervisory Authority (NAMFISA), from having clear, transparent oversight of the efficacy and scope of the foreign operators’ cybersecurity measures. A Path Forward for NAMFISA To effectively protect public interests while considering the limitations of the local market, NAMFISA could implement a multi-faceted approach to cybersecurity that balances regulatory oversight with practical, scalable solutions for Namibia’s pension fund administrators. Below are some recommendations:
In Namibia’s unique economic and regulatory environment, achieving robust cybersecurity requires innovative regulatory solutions that accommodate local realities and global best practices. By implementing a risk-based approach, encouraging certification for foreign operators, fostering resource-sharing, and emphasising continuous monitoring, NAMFISA can protect the public against cybersecurity risks while supporting the growth and competitiveness of Namibia’s financial sector. This balanced approach would protect Namibians’ financial security while enabling local administrators to compete in a challenging market, ultimately enhancing Namibia’s cybersecurity resilience for the future. |
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| Our safety net for our clients | |||||||||||||||||||||||||||||||||||||
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By sound business practice, we confirm that we have just renewed the following covers through our brokers until 30 June 2025. Details were forwarded to all clients under separate cover.
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| COMPLIMENT | |||||||||||||||||||||||||||||||||||||
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Compliment from an investor
Dated November 2024 |
“Middag Christina Ek wil net vir jou bedank, jy is uitstekend, vriendelik en was baie behulpsaam. Dankie vir jou vinnige diens en dat jy so met geduld alles aan my verduidelik het. Jy is puik, jy is beslis ‘n aanwins, ek sal enige tyd die vrymoedigheid hê om jou te skakel. Mooi naweek. Groete Marietjie Taljaard” |
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Read more comments from our clients, here...
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| BENCHMARK: A NOTE FROM GÜNTER PFEIFER | |||||||||||||||||||||||||||||||||||||
| Fund annual member meeting feedback | |||||||||||||||||||||||||||||||||||||
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The Benchmark Retirement Fund held its well-attended, dual modus annual member meeting on Thursday, 21 November, at the Weinberg under the theme -
Beyond Challenges Embracing the Future Keynote speaker Solomon Hei spoke on ‘Geopolitics and Economic Trends: Impact on Asset Allocation and Investment Returns’, summarised here... The fund showcased its impressive growth and excellent returns over the years under the watchful eyes of a highly qualified and experienced board of Trustees. The fund’s growth: |
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 The fund’s investment returns: |
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 The Board of Trustees and its advisers: Present at the Weinberg was the board of trustees with its advisers. In the photo, on the left, Mrs Raazia Ganie, investment consultant (NMG), Mrs Sophia Amoo-Chimunda, principal officer, second from the left and Mr Günter Pfeifer, employee benefits consultant (director of RFS), fifth from the left.
From left to right, the board comprises Mr Harald Müseler, who will be retiring at the end of the year after serving on the board for 18 years, 13 of which as the chairman; Mrs Sabrina Jacobs, chairlady of the death claims committee, Mr Tilman Friedrich (chairman of RFS board), chairman of the finance committee, Mr Marthinuz Fabianus, (managing director of RFS), Mrs Afra Schimming-Chase, chairlady, Mr Hermann Hentschel and Mrs Malverene Theron, chairlady of the FIMA committee. |
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| A farewell message to Harald Müseler by Afra Schimming-Chasse, chairperson of the board As 2024 draws to a close, we bid farewell to Harald Müseler. Harald has become a familiar face at the Benchmark Retirement Fund over the years, having served the board since 2006 as trustee until 2011, when he became the fund’s first independent chairman. In that position, he brought a wealth of experience and expertise as a Chartered Accountant and Auditor, leading the Board, navigating challenges with great skill, brokering consensus, and allowing every board member to express their contribution to any matter at hand. Harald’s manner was always inclusive, and he took time to check in with various stakeholders and service providers with a genuine interest in each and everyone’s personal well-being.
As the Fund’s new chairperson, I will miss his quiet wisdom and consistent encouragement while keeping the risks the fund faces front and centre of every board meeting. Throughout this first year as board chair, I have been lucky to have his ear whenever I needed it, his counsel on every occasion that I found it challenging to be decisive and move forward. The entire board acknowledges his unwavering commitment to serve the best interests of the members, participating employers and beneficiaries. His absence on the board will surely be felt, yet at the same time, it is with happy hearts that we wish him well as he embarks upon the next phase of his great life. Every journey must come to an end, and at the end of every journey lies the promise of a new beginning, fresh opportunities and exciting paths that lead to the next experience. I do not doubt that wherever Harald finds himself, he will always offer the best of himself in service to the bigger community he serves. I am honoured and truly grateful to have worked with Harald over the years, and thank him for the difference he has made on the board and to us all.
Benchmark sponsors DHPS achievers. The Benchmark Retirement Fund sponsored top achievers in four categories at the D.H.P.S. We congratulate all prize winners and wish them all the best in the future!
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Fund Announcements
The Benchmark Retirement Fund issued no new circular after Announcement 202404 – Benchmark default portfolio annual review: Clients are welcome to contact us if they require a copy of any circular. |
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| NEWS FROM RFS | |||||||||||||||||||||||||||||||||||||
| The RETIREMENT COMPASS | |||||||||||||||||||||||||||||||||||||
| RFS Fund Administrators sponsor this newsletter as part of its social responsibility and its initiatives to support the retirement fund industry. It aims to provide members of funds managed by RFS Fund Administrators and other parties in their network with retirement funding and planning-related news and insights presented understandably. Read the latest Retirement Compass here... |
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| Important circulars issued by RFS | |||||||||||||||||||||||||||||||||||||
| RFS issued no new circular after RFS 2024.10-07: Confirmation of professional indemnity and fidelity insurance cover. Clients are welcome to contact us if they require a copy of any circular. |
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| NEWS FROM THE MARKET | |||||||||||||||||||||||||||||||||||||
| Sanlam and Ninety-One transaction | |||||||||||||||||||||||||||||||||||||
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Sanlam’s recent announcement to select Ninety-One as its primary active manager for single-managed assets will not impact Sanlam Investments Namibia’s investment strategies. This transaction is specific to South Africa, and clients in Namibia will continue to experience the same level of service and management as before.
Read the announcement by clicking here...
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| LEGAL SNIPPETS | |||||||||||||||||||||||||||||||||||||
| The Employment Equity Bill vs the Affirmative Action Act | |||||||||||||||||||||||||||||||||||||
The draft Employment Equity Bill (EEB) expands upon and modifies the AAEA in several significant ways:
The EEB introduces several new compliance requirements not found in the AAEA, such as monetary penalties, more detailed reporting requirements, a focus on violence and harassment in the workplace, and a more explicit emphasis on reasonable accommodation for persons with disabilities. The EEB also significantly expands the potential penalties for non-compliance. Conclusion: The EEB substantially strengthens Namibia's employment equity framework compared to the AAEA. The compliance burden on employers is likely to be considerably greater under the EEB, requiring more detailed planning, record-keeping, and reporting and potentially facing harsher penalties for non-compliance. |
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Fiduciary Duties and Benefit Withholding PFA Determination: KK Maharaj v Corporate Selection Umbrella Retirement Fund No: 2 |
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| 1. Case Overview The determination by the South African Pension Funds Adjudicator (PFA) addresses a dispute between KK Maharaj (the complainant), Corporate Selection Umbrella Retirement Fund No. 2 (the fund), Liberty Group Limited (the administrator), and Manuchar SA (the employer). The primary issue is whether the fund's decision to withhold the complainant’s withdrawal benefit for over six years complied with fiduciary and statutory obligations. 2. Background
Fund and Administrator
Key Findings:
Read the case report here... |
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| SNIPPETS FOR THE PENSION FUND INDUSTRY | |||||||||||||||||||||||||||||||||||||
| SA Inc. shares still have the potential to surprise to the upside | |||||||||||||||||||||||||||||||||||||
| Have you been keeping an eye on the South African market? It's an interesting time, especially post-election. With a positive sentiment and rising asset prices, things seem to be looking up. The local investors are driving the market right now. It's unusual, as foreign investors haven't been as active. That could be a good thing! It might mean there's untapped potential, especially for those willing to dig deeper. One thing to consider is the "SA Inc" segment. It's a group of companies focused on the domestic market. Many of these companies are undervalued, and with the improving economic outlook, they could be poised for growth. Think about sectors like construction and infrastructure – they might be worth a closer look. However, as with any investment, it's important to be selective. Not all SA Inc. stocks are created equal. Some might be overpriced, while others could be real gems. Doing your research or consulting with a financial advisor to make informed decisions is crucial. Overall, the future looks promising for the South African market. With careful consideration and a long-term perspective, some exciting opportunities could be on the horizon. Read the full article in Cover of 26 November 2025 here.. |
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| Schroders crystal ball 2025 investment outlook | |||||||||||||||||||||||||||||||||||||
| The "Schroders Crystal Ball 2025 Investment Outlook" emphasises the need for investors to diversify and look beyond recent equity market winners to identify new return opportunities in the evolving financial landscape. Key Insights:
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| SNIPPETS OF GENERAL INTEREST | |||||||||||||||||||||||||||||||||||||
| The importance of holistic retirement planning (to be continued) | |||||||||||||||||||||||||||||||||||||
| Understanding Your Risk Profile in Retirement Planning In the latest instalment of this retirement series, the author dives into the critical role of risk profiles in shaping your investment strategy. Understanding your risk tolerance is essential for aligning your investments with your financial goals and comfort level. Key takeaways include:
Exploring the financial foundations essential for a secure retirement, it is clear that many are unprepared for the realities of this significant life phase. This article emphasises the importance of proactive financial planning to enhance retirement comfort and fulfilment. Key Insights Include:
This comprehensive guide underscores the importance of planning beyond saving—engaging with professionals and understanding your financial landscape can lead to a more fulfilling retirement. Don’t miss out on these insights to secure your financial future! The Longevity Blueprint In an age where life expectancy is soaring, planning for retirement means more than just financial stability—it’s about crafting a life filled with health, purpose, and connection. The latest research reveals that while genetics play a role, 75% of longevity is influenced by lifestyle choices. From the Blue Zones, regions known for their centenarians, we learn key habits that promote a long and fulfilling life: natural movement, a positive outlook, strong social ties, and a plant-based diet. The article outlines six essential habits to incorporate into daily life, emphasising that many changes are low-cost and accessible. In the next edition, the author examines the financial strategies essential for a secure and rewarding retirement! Source: Moneyweb, article series by Jaco Fouché, Jenwil Blue Star. |
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| Life and living annuities – what you must know | |||||||||||||||||||||||||||||||||||||
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The article by Devon Card from Crue Invest discusses the critical decision retirees face when choosing between life and living annuities, outlining their main differences, benefits, and risks.
The choice between life and living annuities significantly impacts financial security and requires careful consideration of personal financial goals and risk tolerance.
Read the full article by Devon Card, Crue Investments, in Moneyweb of 7 November September 2024 here… |
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| AND FINALLY... | |||||||||||||||||||||||||||||||||||||
| Wise words from wise men | |||||||||||||||||||||||||||||||||||||
| "Die Macht des Geldes wirkt auf den Menschen genau wie jede andere irdische Macht: wohltätig, solange er sie beherrscht, verderblich aber, sobald er ihr zu gehorchen beginnt." “The power of money affects humans just like any other earthly power: beneficial as long as they control it, but corrupting as soon as they begin to obey it.” ~ Karl May (1842 – 1912), German author. |
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| Unsubscribe If you do not want to receive these newsletters {unsubscribe}click here...{/unsubscribe} Disclaimer Whilst we have taken all reasonable measures to ensure that the results reflected herein are correct, Benchmark Retirement Fund and RFS Fund Administrators (Pty) Ltd do not accept any liability for the accuracy of the information and no decision should be taken on the basis of the information contained herein before confirming the detail with the relevant portfolio manager. |
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