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June 2001
Simple selection

In 1980, South Africans had a choice of eight unit trusts and five management companies, according to Sanlam. Today, there are over 300 funds and 33 management companies from which to choose, to say nothing of the...

June 2001
Moderate risk

Funds that invest in Europe are ideal for investors seeking moderate risk offshore exposure as the US economy slides to a soft landing.
“Exposure to European equities can potentially provide good returns...

June 2001
Ideal style

Private client investors who have constructed their portfolios by picking stocks are more likely to get better returns in current market conditions.
“Local markets have been volatile and performance three...

June 2001
Pros and cons

As the number and range of unit trust funds continues to grow, it is becoming increasingly important when selecting a portfolio of unit trusts, to have a level of analysis and expertise behind both the selection and...

June 2001
Short on short

In 1999 insurance companies wrote US$2 324 billion in premiums worldwide, an increase of 7,3% over the previous year, and 4,5% after adjustment for inflation. This is according to the latest World Insurance report...

June 2001
Multiple choices

Old Mutual recently launched its ‘risk only’ product package intended to be a client’s plan for life. Called ‘Greenlight’ it is basically a modular life policy, to which components can be added, changed or removed...

June 2001
Burial wrongs

The Financial Services Board (FSB) has issued a warning against C & W Financial Services and PBG Group Schemes, which have been conducting unregistered insurance business and not meeting death claims.
...

June 2001
Watch out

Nothing is more calculated to incur the anger and raise the hackles of an insured who genuinely believes his claim under the policy was a perfectly valid one, than to be advised that in fact his claim is being thrown...

June 2001
Angry patient needs to see a doctor for tranquillisers

Comment from an irate reader who evidently woke up at 2am one morning, so agitated, he could not get back to sleep again until he had written this down.
In the typical complacent South African consumer...

June 2001
Three year transition

René Otto, the Managing Director of OUTsurance, has resigned after successfully nurturing OUTsurance through its initial development. Within the space of three years OUTsurance has matured from a small “niche” player...

June 2001
Flexible spectrum

Old Mutual’s lnvestment Horizons is a monthly investment product for the middle to upper income market (R8 000 to R30 000 per month), providing a wide range of monthly savings plans. Launched November 2000 it was...

June 2001
Back to reality

When negative sentiment continues to hit dot-corn companies, must IT providers and software houses using the Internet as a solution space also despair? No, says Mike Bergen, CEO of Cape-based Uskotec - part of the...

June 2001
Out of pocket

Widows and orphans provided for through trusts could fall victim to an Income Tax Act amendment unless they review the wording of trust deeds. In fact, all beneficiaries of discretionary trusts risk being pushed into...

June 2001
Residency-based warning

Tax planning ahead of emigration is now essential in view of South Africa’s move to the residency-based system of international taxation. The warning comes from leading tax attorney Danie Erasmus as South Africa’s ‘...

June 2001
CGT side-step

Sanlam Personal Portfolios (SP2) can now recover monthly investment costs solely from money market funds, resulting in a saving on capital gains tax (CGT).
“The industry’s standard procedure is to recover...

June 2001
Spreading the CGT load

There was much speculation - and even panic - about how trusts would fare under the capital gains tax, but it turns out that the authorities have been kind to them.
Although trusts will potentially be...

June 2001
Enough to make the blood curdle


The planned introduction of Capital Gains Tax (CGT) with effect from 1st October 2001 has generated increasing panic amongst taxpayers the last few months. It is not the first time new taxes have been introduced with a dearth of information...

June 2001
Controlling business costs

An absence management programme, which complements an existing disability management service, would significantly increase the success rate of preventing potential long- term disability claims, and would represent...

June 2001
Challenge to employers

Many companies in South Africa have undertaken to assist their employees financially by contributing towards their medical scheme contributions after retirement. This obligation may have its foundation in the contract...

June 2001
Payroll bind

South African businesses can save hundreds of millions of rands by implementing integrated human risk benefit solutions into their overall financial management, says Momentum Risk Management Consultancy (RMC)...

June 2001
Employee guidelines

The South African government has recently released its draft Code of Good Practice on employment issues concerning the HIV/AIDS epidemic. The aim of the Code is to provide guidelines to employers to manage the...

June 2001
Managing human risk in the workplace

Who, in the past, gave any thought to human risk management? Death and disability benefits weren’t issues mam employers agonised over. At best sonic sort of cover was tacked on to the pension benefit, hut the unspoken...

June 2001
Rules come into force July 1st

After much deliberation, the Policyholder Protection Rules for Long-term Insurance have been signed and published in the Government Gazette. Insurers and intermediaries now have their work cut out to ensure compliance...

June 2001
Ways to pay

Capitation is payment for services on a per member per month basis, and is one of six major types of pricing structures that can be used to generate managed care business:
• Fee for service (hospitals/...

June 2001
Wider net

Did you know that with effect from 1st August 2000 any ‘personal service company’ would be taxed on income at a rate of 35%? Furthermore, deductions are limited to the salaries paid to the employees of the personal...

June 2001
Bed manners

The South African medical scheme industry generates R24 billion in gross revenues annually. At the heart of the industry are the medical schemes, which are non-profit financing vehicles. However, several commercial...

June 2001
Affordable plan

Sanlam has launched a new and affordable savings plan, aimed at the lower end of the market. The Halala savings plan enables clients to save as little as R50 a month over a minimum period of 10 years.
...

June 2001
Changing beyond all recognition

Assumptions made by industry executives in the financial services industry diverge sharply from the needs of consumers, an international study by Deloitte Research found.
In 1998, Deloitte Research...

June 2001
Split personality

At the best of times, retirement planning can be tough, whether you are a salary earner or a financial adviser called in to consult on retirement issues. The challenge sharpens even further when divorce enters the...

June 2001
Encouraging transparency

A comprehensive set of accounting guidelines has recently been issued which will encourage transparency and ensure consistency of financial reporting across the sector.
The guidelines were drawn up by a...

June 2001
Taking control

Santam has acquired Mutual and Federal’s 50% share in Associated Marine Underwriting Agency, giving it full ownership.
“Associated Marine underwrites R60m of premiums each year in a niche insurance sector...

June 2001
Clean sheet

The life cell captive assurance industry has been given the thumbs up by Jeremy Andrew, chief actuary of the Financial Services Board, as an ideal solution for the funding of post-retirement health care benefits....

June 2001
Unfriendly warning

The Financial Services Board (FSB) will in future supervise Friendly Societies concluded in terms of collective agreements, previously registered with the Department of Labour. And with 15% of societies guilty of...

June 2001
Self-administered sickness

Financial returns — year ended December 1999
• Klerksdorp Mines Benefit Society - monetary benefits;
• Journalists’ Joint Unemployment Benefit Fund;
• Golden Arrow Employees’ Benefit Fund;
• Great North Burial Society;
•...

June 2001
Insolvent risk

The revised accounting standards issued by the South African Institute of Chartered Accountants (AC116) with regard to the disclosure of post- retirement medical aid liabilities will have a significant effect on many...

June 2001
Timber roots

Co-operative insurer Safire has been converted to a general insurer, following a decision taken the end of last year. Safire was founded only in 1987 by local timber-growers in response to rising insurance costs. But...

June 2001
Leaks and clots

Following the recent dust up over Deep Vein Thrombosis (a nasty blood clot that forms in steerage class apparently due to paralysis of the legs after eating the airline food), class actions are being put together in...

June 2001
Educating for self interest

The life industry is finally waking up to the fact that individuals need educating, not just on the need to save, but also on the importance of debt management and, indeed reducing debt as part of their financial...

June 2001
Joining forces

The Association of Health Benefit Advisors (AHBA) and the South African Healthcare Intermediaries Association (SAHIA) joined forces at the beginning of this year in discussions with the Registrar for Medical Schemes...

June 2001
Strong focus

Professor Johan van Zyl (44), rector and vice-chancellor of the University of Pretoria (UP), has been appointed as the chief executive of Santam Limited. This follows Dr Leon Vermaak’s appointment as chief executive...