• Sharebar
April 2003
Sneaking up

It is unfathomable why previous ‘government’ schooling has become so expensive. Parents are paying anything between R2 500 and R5 500 a year per child up to senior primary; then it gets worse, around R8 500 for high...

April 2003
No excuse

It is important for a business owner to know what taxes and levies he will be liable for, particularly as most of these are payable on a regular basis. Furthermore, in most cases, failure to pay the amounts timeously...

April 2003
Clear and simple

The Collective Investment Schemes Control Act (CISCA), the new legislation governing the unit trust industry, introduces a new, simplified method of pricing of unit trusts. The Act, effective 3rd March, replaces the...

April 2003
Irrelevant motion

Deneys Reitz on insurance case law: Free State Agriculture & Ecotourism Development (Pty) Ltd v Mthembu & Mahomed 2002

The applicant and respondent concluded a written agreement in terms of which...

April 2003
Smoothed option

The challenge for managers of retirement fund assets will be to deliver real returns in a bear market while also catering for an increasingly sophisticated industry that demands customised solutions.

...

April 2003
Rich pickings

Let’s put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to US$100. If they paid their bill the way we pay our taxes, it would go something...

April 2003
Broaden your horizons

A hedge fund can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity, in any market where impressive gains at reduced...

April 2003
Valuable learning tool

Investment Management published by Van Schaik is for undergraduate financial management, business management and investment management students. The publishers say the title is also a valuable learning tool for Level...

April 2003
Shrink-wrapped

A shrinking market and a slump in equity markets resulted in an overall decline in the short-term insurance market during 2001. According to the fourth report of the Registrar of Short-Term Insurance, growth slackened...

April 2003
Pretty tight

There was a huge increase in the number of lapses for the life industry in 2001. According to the fourth annual report of the Registrar of Long-term Insurance the numbers bailing out rose a shocking 53% from 934 000...

April 2003
Act swiftly

The announcement of a tax amnesty for those repatriating illegal foreign assets is good news all round — including for financial planners. Solly Keetse, head of legal & compliance (Financial & Actuarial...

April 2003
Balloting change

RMB Asset Management is to change the name and mandate of its Consumer Fund to enable it to invest in all industrial stocks.

The company says its drive to maintain ‘the most appropriate balance between...

April 2003
Stay with it

I see that Old Mutual’s share price has fallen further, down to R9,45 on the local stock exchange at the last count. The reason evidently is ‘short-selling’ of the company’s shares. Earlier falls have been ascribed to...

April 2003
Keeping local

From a valuation point of view, JSE equities are an attractive investment, but the final arbiter of the markets’ performance will be investor sentiment, says OMAM senior portfolio manager Alwyn van der Merwe....

April 2003
Building a portfolio

Stanlib has introduced a multi-manager property fund, with “a moderate risk profile.”

According to Busisa Jiya, director of multi-manager investments at Stanlib Wealth Management, a multi-manager approach...

April 2003
September 9/11 slip

In a rather dreary rerun of innumerable similar cases, the litigation on the 9/11 catastrophe has revealed that the policy wordings had not been issued.

There were two different wordings being hawked...

April 2003
Keeping to form

The South African unit trust industry continued to grow in 2002 despite lacklustre equity markets, with record gross sales of R137,4 billion and substantial total net inflows of R19 billion helping boost assets under...

April 2003
Controlling costs

The expanded list of benefits that medical schemes will have to cover from January next year should not push costs up to consumers, according to a study commissioned by the Council for Medical Schemes.

...

April 2003
Street shock

Deneys Reitz on insurance case law: Padiachy v Motor Mecca Jhb CC 2002

The appellant took his vehicle to the respondent for repairs, who sent it to auto electricians for some of the work. The respondent’s...

April 2003
In a state

Members of medical schemes, who already pay high membership contributions, could face a further shock if, as reported recently, medical schemes will have to cover certain chronic conditions in full from next year....

April 2003
Disappointing time

The second half of 2002 was disappointing for SA Eagle, when it suffered a R26,2m setback in underwriting performance, compared to a promising R4,9m for the first half. It ended the year with an overall loss of R21,3m...

April 2003
Attitude problem

I can’t believe government has now started blaming the media for the numbers of road accidents. Evidently, according to press reports, transport deputy director Sipho Khumalo “attacked the media,” saying it had “...

April 2003
Down, but not out…

Sanlam’s embedded value amounted to R27,1 billion at the end of December 2002, which represents a negative growth of some R2,7 billion, or - 8,9%. The negative impact of equity and currency markets on the value of the...

April 2003
Double crime

Deneys Reitz on insurance case law: Schoeman v Constantia Insurance Co Ltd 2002

The plaintiff insured household goods with the defendant. The plaintiff’s home was burgled and she completed and submitted a...

April 2003
Boost from the budget

This year’s budget at last gave a firm message that we need to save more, especially for our retirement. And the reduction of the tax rate on retirement funds from 25% to 18% will go a long way towards this goal, and...

April 2003
No son shine

Deneys Reitz on insurance case law: Santam  v Van Schalkwyk 2002

The respondent’s son concluded an instalment sale agreement with Stannic. The respondent and his son decided on the vehicle and the...

April 2003
Full steam ahead

“There is no doubt that Government finances are in a very healthy state,” comments OMAM’s Head of Asset Allocation & Strategy, Charles De Kock. He says the Budget is clearly growth oriented with the tax cuts aimed...

April 2003
Budget 2003

As much as R3 billion in illegally transferred funds could be repatriated to South Africa if Finance Minister Trevor Manual’s foreign exchange amnesty goes according to plan (see accompanying article); although as...

April 2003
It is never too late

“Of the many financial goals we have, ensuring adequate retirement funding is one of the most important,” says Mike Galloway, head of linked investments at STANLIB Wealth Management. Retirement annuities (RAs) are one...

April 2003
In-house

Old Mutual South Africa has announced the appointment of Advocate Gerhard de Kock as internal ombudsman for long-term assurance.

Reporting to executive general manager of Client Services, Jerry van...

April 2003
Credit card confusion

Motor policies require the insured to possess a valid drivers’ licence, failing which a claim could be repudiated. The deadline for obtaining the new credit-card type licence expired on 28th February 2003, suggesting...

April 2003
It’s a gas

Against a backdrop of rising gas utilisation in South African homes, gas safety specialist SureGas says it has developed, “an affordable, high-quality device that detects flammable gas leakages and raises an alarm if...

April 2003
Consumer protection

Globally, a Code of Good Business Practice represents an agreement between an institution and its constituents, pledging a combined commitment to ensuring the delivery of excellence in service and conduct.

...
April 2003
FAIS brief

Following the Portfolio Committee of Finance and the National Council of Provinces’ approval of the Financial Advisory and Intermediary Services (FAIS) Bill, it was signed into law on 15th November 2002.

...

April 2003
Another solid year

Lack of profitability in the large commercial and industrial portfolio continued to dog Mutual & Federal during its 2002 year, although it turned in a very creditable overall underwriting profit of R116m. This...

April 2003
No fault

The Road Accident Commission has completed its 2 000+ page report on the complex task of investigating the Road Accident Fund (RAF) and the provision of benefits to accident victims in South Africa. The report has now...

April 2003
Going public

Government’s proposed medical scheme for an estimated 900 000 public sector workers will improve the delivery of healthcare in South Africa.

According to Nandipha Solomon, Old Mutual Healthcare’s national...

April 2003
Poor show

South African companies must take out cover against terrorism related losses. But the trouble is, many international reinsurers are making it increasingly difficult for such covers to be acquired.
...

April 2003
Shift in burden

Comparatively moderate increases of around 15% in medical aid contributions this year appear to be the result of cost shifting on the part of schemes, rather than an indication that rampant medical inflation is being...

April 2003
More choice, more risk…..

Urgent need for education in investment and retirement planning; the industry needs to develop products that provide better returns, and more security for those retiring in a bear market.

...

April 2003
Snippets

Boeing has given up on its supersonic cruiser and is turning its attention to modifying 747s to carry high-energy laser weapons designed to shoot down ballistic missiles after launch. The laser beam is focussed on the...

April 2003
General idea

Although it is still true that only a relatively small part of the actuarial profession works in general insurance, there has been significant advancement in recent years, writes Adrian Ericsson in a recent edition of...

April 2003
Investment battering

Santam suffered a 47% decline in actual earnings to R305 million for its year ended December 2002, compared to R571m the year before. This was put down to a direct result of poor investment performance. Its solvency...

April 2003
More admin………….

The Promotion of Access to Information Act II of 2002 brings with it unnecessarily high costs to the retirement fund industry, which will probably have to be passed on to members of funds. This is the view of Mike...

April 2003
Managing costs

Resolution Health Medical Scheme has launched a debit card facility that enables clients to pay on the spot for out-of-hospital medical services. Apart from the convenience it gives them the power to bargain for...

April 2003
German good-bye

In a multi-million rand deal a consortium of investors led by Dr Gerrit Sandrock and Charles Matthews, has reached agreement with Gerling Global Reinsurance AG, based in Cologne to purchase the entire share capital of...

April 2003
In trouble again

The Council for Medical Schemes is to investigate a complaint it has received from the Treatment Action Campaign on possible problems in the HIV/AIDS benefits offered to members by certain medical schemes.

...
April 2003
This I gotta see...

The thought of millions of homeowners paying monthly unemployment insurance of R6.50 is diabolical. How on earth government expects to administer the newly introduced contributions for domestics to the Unemployment...