In the frenetic debate over retirement-fund reform, there’s
a basic assumption that’s false. It’s that there are competent trustees, and aspirant trustees, in abundance. Insufficient
attention to this detail can affect the entire process. Read full article...
So who are these guys wanting to consolidate the numerous municipal funds into a
R90 billion centralised fund? The start that’s been made is embarrassing,
particularly for the Minister and the Registrar. Read full article...
As if the “Ghavalas option” in the Lifecare rigmarole doesn’t
sufficiently reek of scandal, there’s more. Check what the fund curators stand
to earn at the expense of fund members. Read full article...
Ouch! The share market isn’t behaving in the way that has made fund trustees
feel so comfortable over the past four years. What are they to do? Some top
investment managers and consultants offer their advice.
Investors such as retirement funds will ultimately have to pay the
R100 million fine levied against Tiger Brands for bread-price collusion. It
isn’t right. So bring a class action against those responsible. Read full article...
Chile is touted as a great success from which South Africa can
learn. But its experience must be examined warts and all. Rob Rusconi
scrutinises the warts.
This & That
Trustees should spend 20 days a year on their fund duties, and be
paid for it by their funds, says the National Association of Pension Funds in
the UK. It offers sound reasons, also arguable here.
In 1996, government legislated for half of retirement funds’
boards to comprise trustees elected by fund members. In 2007, it started to look
like turning out rather differently from government’s original participatory
intention. Read full article...
Financial Sector Charter
Latest report from the Charter Council is as interesting for what it does say as
for what it doesn’t. There’s not a word on shareholder activism, ostensibly
because there’s nothing to report. Seems that Charter signatories don’t
appreciate, or don’t want, the points they can get for it. Read full article...
Adjudicator Rulings 1
Back to the whole BEE debate. It’s peculiar that no companies or funds have yet
taken the opportunity for black members of retirement funds to be recognised for
purposes of the ownership scorecard. Such apathy is in the financial interests
of neither companies’ shareholders nor funds’ members.
Adjudicator Rulings 2
What a pleasure. No longer do the spouses of divorced fund members have to wait
for the member to retire before they can get their hands on the lolly. The
clean-break principle overrides retrospectivity.
The Big Issue
The more fund managers use their muscle, the more the excesses of
executive remuneration are brought under control. Research by Institutional
Shareholder Services proves the point.
These days, trustees have a greater number of investment choices
than ever before. Into the future, they can expect that different varieties of
old and new products will increasingly converge.
At last, a thorough analysis of socially responsible investment in
corporate South Africa. “Staking Their Claims” cuts through the gloss and into
The PIC isn’t a government slush fund. Much of what’s been
speculated about the proposed Koni bid for the Sunday Times proprietor is pure
nonsense. But if there is to be a serious bid at R7 billion, let potential funders beware.
Rupert Murdoch can tell us a thing or two about press freedom.