Issue: September/October 2007

First Word

A shop steward wants to know why he should undergo trustee training. The question isn't as simple as it sounds. Here's an attempt at an answer. Read full article...


Duty of confidentiality on fund's management boards.

Court Cases

When union members are elected by their unions to serve as trustees on boards of funds comprising mainly union members, are they obliged to follow union mandates and be accountable to the unionists who elected them? Certainly not, the High Court has ruled.

Fund Governance

The Financial Services Board circular PF130 looks a lot more complex than it really is. Problem is with the presentation, not the content. Aspirant trustees should not be intimidated, and trustees will find it a most useful guide to good governance. Read full article...

Trustee Training

Trevor Manuel is unhappy that the Setas are not doing all they should with the money at their disposal. It's a sharp wake-up call.

This & That

August was the most turbulent month on world markets. Experts are divided on the reasons, and governments on the policy responses, so "volatility" is likely to be with us for some time yet. Some pension funds have been hammered.

Cover Story

Between the proposed National Savings Fund and the ever-enlarging Public Investment Corporation, shareholdings by state-controlled bodies in the JSE-Listed companies can only increase. Particularly with the PIC flexing its activism muscle, there are overarching political implications that corporate South Africa cannot ignore. Read full article...

National Savings Fund

Actuarial research quantifies the extent of the carve-out from membership of existing funds. The numbers are huge, and worrying.

Shareholder Activism

When a company is fined for wrongful behaviour, it’s wrong that shareholders are penalised for the wrongs committed by its directors. There is recourse available against them, if only it were used.

Big Issue

Back to the whole BEE debate. It’s peculiar that no companies or funds have yet used 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. Read full article...

Pension Funds Adjudicator

Bargain-council funds and industry-sectoral funds might have similar objectives, but legally they are quite different. An important difference, according to a recent determination, is that members of sectoral funds can lodge complaints with the Adjudicator.

Umbrella Funds

As the industry consolidates, more standalone funds will be collapsed into them. Employers should be aware of their strengths and weaknesses before taking what appears an easy decision.

Company Reports

King 3 is being introduced before vital aspects of King 2 have been implemented. So far as the JSE is concerned, the requirement for reporting in a way that stakeholders can understand is not a priority.

Retirement Annuities

On costs alone, RAs of the unit-trust variety beat their insurance counterparts hands-down. Karin MacKenzie puts her case, and the LOA responds.


Behind the ‘sub-prime’ crisis. It was seen coming, suggests the top US publication for sponsors of retirement plans, but it’s much more difficult to see going.


It’s known where hedge-fund managers keep their yachts. But as for their customers....