Issue: March/May 2008

First Word

The FSB’s now-famous circular PF 130 sets out to control the receipt of gifts by trustees. The intention, to contain corruption, would be complemented by a similar code for service providers who give the gifts. Read full article...

Fund Surpluses

A document by Peter Ghavalas, the first accused in a criminal trial, explains the mechanics of the scheme for having stripped various pension funds of their surpluses. At face value, it looks perfectly legal. But some detail appears to have been omitted.

Fund Management

He’s done it again. A comprehensive study by independent actuary Rob Rusconi reveals how pension funds can be hit with costs of which they may not be aware. The checklist begs attention from trustees and a response from asset managers.Read full article...

This & That

Long-term research of “momentum strategy” for portfolio investment shows how easy it can be to make money. Were markets “efficient”, though, it shouldn’t work.

Cover Story 1

When are contingency fees justified? When they’re appropriate to the risk, it would seem. Unless the FSB had consented to them, there’d have been no reward either for the curators or for pensioners from recovery of denuded assets in the Datakor pension funds.Read full article...

Cover Story 2

Unlike the Datakor funds, the Ovation and Fidentia funds do have assets so their curators are paid in accordance with professional tariffs. It’s imperfect in that the affected funds’ investors are called on to contribute. The FSB believes there’s no alternative.Read full article...

Financial Sector Charter

Shareholder activism isn’t necessarily confined to shouting the odds. Fund managers can point to how they’re complying with the Charter, quietly but effectively. Sometimes, more quiet can be more effective.

Retirement Fund Reform

Just take a look at the numbers. Hein Herbst, who heads a large fund for municipal workers, does his own analysis and concludes that broad social objectives outweigh the narrow retirement objectives.Read full article...

Transactions Monitor

There are now electronic means available to watch for portfolio churn. It can significantly increase funds’ costs, so trustees should carefully consider how to keep a handle on them.

Across the Continent

In Africa, the dynamics of pension funds are rapidly changing for the better. Taking in the macro picture, there are needs and opportunities aplenty.

Responsible Investment

Now for hard quantification. There’s a model that can reduce the airy-fairy to facts and figures for objective measurement and scrutiny.


The finance minister talks about “our social solidarity” as if “our” meant government, not members of pension funds who’ll pay for it.