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...
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.
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
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...
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.
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.