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| Issued May 2025 | ||||
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| In this newsletter... | ||||
| Benchtest 04.2025 – The FIMA restarted; building a versatile and resilient fund and more... | ||||
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| IMPORTANT NOTES AND REMINDERS | ||||
NAMFISA levies
The repo rate remained unchanged at 6.75% during May. The interest rate of 10.75% on funds’ direct loans and repayments will remain unchanged for June 2025. RFS and Benchmark closed in May RFS Fund Administrators will be closed for the last week of May due to the prolific public holidays in the week. As a result, its services to the Benchmark Retirement Fund will pause and recommence on Monday, 2 June 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, registered as of June 2024, here... |
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| IN THIS NEWSLETTER... | ||||
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In this newsletter, we address the following topics:
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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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| TILMAN FRIEDRICH'S INDUSTRY FORUM | ||||
| Monthly Review of Portfolio Performance to 30 April 2025 |
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| In April 2025, the average prudential balanced portfolio returned 1.9% (March 2025: 0.1%). The top performer is the Allan Gray Balanced Fund, with 2.6%, while the Lebela Balanced Fund, with 1.0%, takes the bottom spot. Allan Gray Balanced Fund took the top spot for the three months, outperforming the ‘average’ by roughly 3.2%. The Namibia Coronation Balanced Fund underperformed the ‘average’ by 1.7% 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 April 2025 reviews portfolio performances and provides insightful analyses. Download it here... |
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| Conventional Investment Wisdom is Dead: Rethinking the future of investing | ||||
| For many years, the investment world has relied on conventional wisdom, focusing on long-term global economic stability and diversification. But today, that wisdom is outdated. The international political and economic landscape is shifting, especially with the rise of China as a competitor to the United States. Since World War II, the world has been largely shaped by US economic interests; however, the US now views China as a serious challenge to its global influence. The US-China Economic Decoupling The turning point began during Donald Trump’s first presidency. In 2018, the US imposed tariffs on Chinese goods, sparking an economic decoupling. This trade war wasn’t just about tariffs—it was about reshaping the global economy. The US started encouraging companies to bring manufacturing back home, particularly in critical sectors like semiconductors and pharmaceuticals. Under President Biden, the focus shifted from "decoupling" to "de-risking," but the core strategies remained the same: restricting Chinese access to advanced technologies and offering incentives for domestic manufacturing. The US has made it clear that economic self-sufficiency and supply chain independence are top priorities. Meanwhile, it continues to use its dominance in the international financial system to pressure countries that resist US influence. The Road to Conflict The US isn’t just reshaping its economy—it’s preparing for a broader geopolitical shift. With global tensions rising, especially regarding Russia and China, the US seems to be laying the groundwork for a potential future conflict. The three US administrations that have followed similar policies suggest a long-term strategy to maintain global dominance, even if it requires conflict... Read paragraph 6 of the Monthly Review of Portfolio Performance to 30 April 2025 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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| The FIM Act – a new start Contributed by Carmen Diehl, C.A.(Namibia), Senior Manager: Risk Management and Compliance |
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The FIMA (Act 2 of 2021) was promulgated in Government Gazette no. 7645 on 1 October 2021. The Minister of Finance has not yet set a date for it to become effective. Although it has been inactive since its promulgation, following last year’s elections, we can expect action on it again in 2025, once the new Minister of Finance has settled into her role. NAMFISA, however, has not been idle, spending a lot of time revising and issuing FIMA standards and regulations. In the next few issues of this newsletter, we will present the latest status on the standards and regulations and provide a brief overview.
This summarises the main provisions of draft standards and regulations under the FIM Act and implications for retirement funds. Standards Chapter 5: Retirement Funds
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| Building a versatile and resilient Pension Fund | ||||
| An employer looking to revamp their company's retirement fund must ensure the fund will continue to serve its purpose effectively. In this article, I will discuss the key objectives of a retirement fund and the principles to observe when restructuring it. Besides the objectives set out further on, any student of benefit structuring under the Pension Funds Act would have learnt that a retirement fund should meet the needs of a member in the event of a life event in a balanced manner. Life events would refer to death, disability and retirement. Namibia’s educational institutions do not offer curricula for studying retirement fund theory. Students would have to enrol at a South African institution because of the common roots of both countries' pension laws. In Namibia, NAMFISA applies a different interpretation to the Pension Funds Act. Firstly, the employer’s interests in its retirement funding arrangement supporting the employer’s recruitment and retention objectives are not recognised. Instead, the employer’s role is confined to being responsible for member communication and deducting and paying contributions to the fund. It has resulted in employers losing interest in their retirement funding arrangements and in funds being unable to provide for a member’s needs in the event of death and disablement. Benefit structuring is, therefore, severely constrained by NAMFISA’s interpretation nowadays. Employers must now take the initiative to arrange death and disability cover for their employees, and it will likely be less tax-effective and certainly more burdensome. Unfortunately, because of this interpretation of the law, members cannot rely on NAMFISA to protect their interests regarding an important component of their compensation and well-being. Given the constraints mentioned earlier, I will discuss how to construct a resilient and versatile pension fund structure. Key Objectives of a Retirement Fund A well-designed retirement fund should strive to achieve the following key objectives:
The membership demographics should play an important role in structuring a fund. One size often does not fit all. Typically, two types of members can be identified based on their demographics. One type is young, educated and highly mobile, like professional firms. The second type is older, less educated and less mobile, like manufacturing or trading businesses. Professional businesses should offer more flexibility and personal choice, and benefits should emphasise the employees’ medium-term needs and priorities. The likelihood of an employee retiring with the employer is slim, and retirement benefits are not at the top of their priority list. Disability and resignation benefits are more important. Flexibility and choice add to the cost of the arrangement, but also to the perceived value. In contrast, manufacturers and traders do not need to offer flexibility and personal choice, and benefits should emphasise the employees’ long-term needs and priorities. Their employees are more concerned about provision for their dependants should they pass away, and about retirement rather than resignation benefits. This arrangement can be structured simply and cheaply to add value to the employee. When restructuring your retirement fund, keep these principles in mind:
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| COMPLIMENT | ||||
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Compliment from a principal officer of a large fund
Dated March 2025 |
“Hi Rauha, Our discussion refers. Rarely does one receive service of a seamless nature, such as that of Joan who stepped in and provided Certificates of Existence to our fund at a moment's notice. A note of appreciation to your colleague, Joan. Kind regards, Austin-John Robberts.” |
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Read more comments from our clients, here...
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| BENCHMARK: A NOTE FROM GÜNTER PFEIFER | ||||
| Welcoming Benchmark Participating Employers | ||||
We are delighted to announce that the following employers joined the Benchmark Retirement Fund, further solidifying the Fund’s commitment to providing top-tier retirement solutions.
As Namibia’s largest umbrella fund and the second largest fund overall, following the GIPF, we take immense pride in being Namibia’s preferred choice for retirement benefits. The decision by these employers to join our fund underscores our reputation for excellence and our dedication to supporting the long-term financial security of both our employers and their employees. We warmly welcome the employees of our new employers to our Benchmark community. Your inclusion enriches our collective strength and diversity. We are committed to providing you with exceptional service, the best pension expertise, and industry-leading solutions to help you achieve your retirement fund goals. We thank each employer for choosing the Benchmark Retirement Fund. We look forward to a prosperous and rewarding partnership. |
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| RFS Offices closed the last week of May | ||||
| Due to the numerous public holidays in the last week of May, RFS offices will be closed starting Monday, 26 May, and re-open on Monday, 2 June. Members with access to ‘Benefit Counsellor’ will still be able to view their latest benefits and investment values from anywhere, at any time. |
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| Circulars issued by the Fund | ||||
The Benchmark Retirement Fund did not issue any new circular or announcement after -
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| NEWS FROM RFS | ||||
| RFS reports great strides in implementing Everest A contribution by Kai Friedrich, Director of Operations |
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| We are pleased to share a progress update on the implementation of Everest, our new retirement fund administration system. As part of our commitment to continuous improvement and service excellence, Everest represents a significant technological upgrade that is already delivering key benefits for our clients and their members. Key Implementation Milestones Achieved:
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| RFS celebrates academic excellence | ||||
| RFS celebrated academic excellence by sponsoring Namcol students’ academic achievements to the tune of N$26,000 during the Namcol awards evening. Over the years, RFS contributed over N$180,000 to this inspiring event. From Best Achiever per PETE, Best Overall NSSCO (excluding PETE), Best Overall PETE Performer, to the best overall Namcol achiever, each winner received well-deserved recognition and cash prizes ranging from N$3,250 to N$5,000. Our client managers, Leana Rieckerts and Rudiger van Wyk, were delighted to hand over the prizes and words of encouragement to the winners. This year's best overall achiever went home with a whopping N$12,250 in cash prizes from RFS! |
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| We congratulate the outstanding Namcol learners who shone brightly in their academics! | ||||
| Welcoming our new staff | ||||
We are delighted to announce that the following new staff have joined our permanent staff on 1 May 2024:
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We are delighted to announce that the following new staff have joined our permanent staff on 1 May 2024:
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| Wishing a Happy Retirement! | ||||
| It’s hard to say goodbye to beloved team members who have been such a cornerstone of our team. After nearly 25 wonderful years, Frieda Venter retired on 31 March 2025. Frieda worked with our founder, Tilman Friedrich, at UPA since 1990. When he left UPA in 1999, Frieda soon followed to lay the foundation of RFS, meticulously running the accounting unit of the Benchmark Retirement Fund and delivering its annual financial statements on time, year by year. Frida leaves behind a legacy we will always treasure. Ina Jooné retired on 31 December 2024, after 18 years at RFS. She also joined the pensions industry as a fund administrator at UPA. She served as portfolio manager for some of RFS’s largest private funds and later took up the position of executive assistant to our Managing Director. Ina endeared herself to her clients and colleagues with her sweet and lovely personality. We congratulate Frieda and Ina on their retirement and wish them all the best for this new chapter, health and many happy years in retirement! |
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| RFS Team Excels at MVA Bowling Day | ||||
| At the fundraising bowling day organised by the MVA Fund on Friday, 25 April, at the Eros Bowling Club, the RFS team finished third out of 14 teams after a fun-filled afternoon. RFS Financial Advisers sponsored the RFS team. In the photo from left to right in the dark t-shirts: Giovanni van Wyk, Karin Douglas, Annemarie Nel, and Amanda O'Callaghan (Rudigar van Wyk was not in the photo), standing between MVA Fund representatives in white t-shirts. | ||||
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| RFS sponsors the SKW soccer tournament | ||||
| The RFS SKW Youth Tournament 2025, held at SKW in April, was an action-packed event with a total of 95 teams. The spirit of sportsmanship shone, and all the players, supporters, and not forgetting the soccer parents, gave their best, making everyone winners! The SKW organising team was complimented for this exceptionally well-organised event! The winners in their respective age groups were as follows: |
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 U7 gold – Swakopmund
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 U8 gold – SKW
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 U9 gold - Ramblers
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 U11 gold:Jolinho Athletics FC
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 U13 gold: SKW
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 U15 gold: SKW
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| RFS encourages complaints and fraud reporting | ||||
| NAMFISA assists the public in resolving complaints regarding non-banking financial institutions such as RFS, the Benchmark Retirement Fund or RFS Financial Advisers. However, it expects any complainant to have first unsuccessfully approached the relevant financial institutions regarding the complaint before it would assist. The RFS website was expanded recently to allow the public to lodge complaints. The RFS website also allows the public to confidentially alert an independent professional adviser about any suspected or committed fraud a person may become aware of regarding RFS, the Benchmark Retirement Fund or RFS Financial Advisers. The adviser will inform RFS management of the report without disclosing the reporting person's identity. |
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| Elevate your fund experience with EPIC | ||||
| Members of funds administered by RFS can now access EPIC, its member communication platform, if the trustees agree to make the platform available to members. Members can access benefits and investment values online from any place at any time. Members of the Benchmark Retirement Fund take note that they have similar functionality through Benefit Counsellor. We encourage our fund members to make the best use of these facilities. |
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| The RETIREMENT COMPASS | ||||
| RFS Fund Administrators sponsor this newsletter as part of their social responsibility and 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. This issue covers the following insightful articles:
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| Important circulars issued by RFS | ||||
RFS issued no new circular after the circular
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| LEGAL SNIPPETS | ||||
| Severance pay and resignation – legal question now settled | ||||
| In case you missed the important Namibian High Court judgment in the case Hardap Regional Council v The Labour Commissioner [2025] NALCMD 8, here is a summary. This case clarified a key point about severance pay under Namibian labour law. The High Court ruled that employees are only entitled to severance pay if they resign or retire upon reaching the age of 65, provided they have completed at least 12 months of continuous employment. In this case, Mitchel Mwabi resigned at the age of 45 after ten years of service and claimed severance pay under Section 35(1)(c) of the Labour Act 11 of 2007. The Labour Commissioner awarded him severance pay, citing the earlier Gibeon Village Council decision. However, the court in Hardap rejected this, explaining that the Gibeon decision only made a passing remark on severance pay and did not decide on the issue. Judge Schimming-Chase ruled that section 35(1)(c) clearly requires an employee to have reached the age of 65 for severance pay to be due, regardless of whether they resign or retire. She acknowledged the section’s poor wording but held that reaching age 65 is a mandatory requirement. Summary of legal position post- ‘Hardap’: Severance pay is only payable to employees who:
Read the full article by Mia Kellerman and Duane Dausab in DLA Africa’s Insights journal, here... |
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| Unpaid and unclaimed benefits: what trustees should know | ||||
| Unclaimed and unpaid benefits are a regular topic at trustee meetings. While some pension fund rules provide clear guidelines on what happens to unclaimed benefits, there's often confusion about when a benefit stops being unpaid and becomes "unclaimed." Defining Unclaimed vs. Unpaid Benefits The Pension Funds Act does not directly address unclaimed or unpaid benefits. However, it does make it clear that a person remains a member of the fund until all benefits due to them have been paid. In this context, an unpaid benefit can eventually become an unclaimed benefit. Key Regulations from NAMFISA NAMFISA has issued several directives and guidelines to help manage unclaimed benefits:
While the Pension Funds Act does not provide direct rules for unclaimed benefits, NAMFISA has adopted the AEA as the governing framework for their disposal. In practice, a benefit becomes "unclaimed" if it remains unpaid for five years as of December 31st of a given year. Trustees should be aware of the importance of properly classifying unclaimed benefits in financial statements. According to Regulation 6, unpaid benefits should be listed as current liabilities, while unclaimed benefits are non-current liabilities. This distinction helps fund administrators track and manage unpaid benefits more effectively. Managing Unpaid Benefits Trustees may consider creating categories within the fund to track unpaid benefits that are delayed due to reasons within the fund's control (e.g., missing paperwork) versus those outside of their control (e.g., a member not having complied with all requirements of the exit form). However, these categories should be used only as management tools and not formalised in the fund's rules, as doing so could conflict with NAMFISA's regulations. In summary, while the exact treatment of unclaimed benefits depends on both the fund's rules and applicable laws, trustees should ensure they follow NAMFISA's regulations on classification and reporting in financial statements. A careful distinction between unpaid and unclaimed benefits can help avoid regulatory issues and maintain smooth fund administration. |
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| Unjustified Withholding of Benefit: B Molose v Corporate Selection RUF | ||||
| This case concerns the unjustified withholding of a withdrawal benefit from a former fund member, B Molose, by Corporate Selection RUF (PFA/GP/000789541/2021). The SA Pension Fund Adjudicator's determination underlines the obligation of employers and funds to act promptly, lawfully, and with due consideration of members’ rights. Facts of the Case The complainant, Mr. B Molose, resigned from his employment and signed a withdrawal claim form on 16 February 2021. The form was received by the fund on 9 March 2021, but had not been signed by the employer. Despite several follow-ups by the complainant, the employer failed to respond or submit the signed form. The fund confirmed that it had not received the required documentation from the employer. The employer alleged that the complainant stole R40,000 from its safe and had opened a criminal case. The accused was held in custody for 48 hours but was released without being charged. Complainant’s Complaint The complainant was aggrieved by the employer's refusal to sign and submit the withdrawal claim form, thereby delaying the processing of his benefit. Employer’s Response The employer relied on an allegation of theft and the existence of a criminal case as justification for not signing the form. However, it admitted that no civil action was instituted due to the high cost and that the criminal case had effectively stalled. Fund’s Position Initially, the fund withheld payment, citing the employer’s allegation. However, upon discovering that no criminal prosecution or civil claim was proceeding, it decided to release the benefit. Despite this, no payment was made by the time the Adjudicator issued her ruling. Legal Principles Considered
This determination reinforces the principle that pension funds cannot indefinitely withhold members' benefits based solely on employer allegations, especially where no legal action is being pursued. Employers must act within the framework of the Pension Funds Act, and funds have a responsibility to ensure that procedural delays or unfounded accusations do not undermine member rights. From the Integrated Annual Report 2022 – 2023 of the Office of the SA Pension Funds Adjudicator. |
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| SNIPPETS FOR THE PENSION FUND INDUSTRY | ||||
| Allan Gray’s golden rules for investing | ||||
The article highlights the key investment advice from Richard Carter, head of assurance at Allan Gray, as South African investors brace for a difficult 2025 marked by market volatility, inflation, high taxes, and tariff threats. He raises the following key points:
Read the article by Kirsten Minnaar in the Daily Investor of 12 April here... |
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| Where to invest in shaky markets | ||||
| South African investors, facing volatile markets and currency fluctuations, are increasingly turning to private credit — direct lending to businesses outside public markets — for more stable, attractive returns. Private credit typically offers annual returns of 8–15% in USD. It is a core component of wealthy and institutional portfolios, although it has historically been inaccessible to everyday investors due to high entry thresholds and long lock-in periods. Altify, a Cape Town-based firm backed by JSE-listed Sabvest, has now made private credit more accessible through its offering, ALFI (Altify Legal Finance Investment). Investors can start with as little as R1,900 (about 100 USDC/USDT), gaining exposure to a diversified portfolio of loans made to vetted UK law firms, managed by specialist lender Fenchurch Legal. ALFI offers a fixed 11% annual USD return, paid quarterly. Key features include:
Read the article by Altify in BusinessTech of 25 April 2025, available here… |
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| SNIPPETS OF GENERAL INTEREST | ||||
| Generational wealth – more than money, a legacy that lasts (part 1) | ||||
| This article argues that lasting generational wealth is not just about money or assets, but about creating a shared family vision, grounded in values, relationships, and purpose. With 70% of inherited wealth lost in the first generation and 90% by the third, families must go beyond financial strategies and focus on communication, preparation, and mindset. It emphasises the importance of relational capital (trust, communication), human capital (skills, education), intellectual capital (family wisdom), and social capital (networks, reputation). Generational wealth should be intentionally built and managed as a legacy of stewardship, not merely inheritance. Key Advice
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| The importance of nominating a beneficiary for your life insurance policy | ||||
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Nominating a beneficiary on a life insurance policy is a critical part of financial and estate planning. It ensures that the proceeds are paid swiftly to the intended recipient, bypassing the estate and avoiding delays, unnecessary costs, and potential disputes. The article explores various beneficiary options available to South African policyholders, such as spouses, estates, minor children, and others, outlining the legal and tax implications of each. It emphasises the need for clear, deliberate nominations and periodic reviews, especially after major life events.
Key Lessons
Read the article by Jonathan Braans in Moneyweb, dated 6 May 2025, here...
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| AND FINALLY... | ||||
| Wise words from wise men | ||||
| "As we express our gratitude, we must never forget that the highest appreciation is not to utter words but to live them." ~ John F Kennedy (1917 - 1963) | ||||
| 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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