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June 2003
All in a cycle

The difficult market conditions over the last few years have greatly complicated the process of making investment decisions, both locally and globally. Choosing the right financial manager is, of course, essential at...

June 2003
Improved standards

The Life Offices’ Association (LOA) has launched a new HIV pre-test counselling initiative in support of the Voluntary Testing and Counselling (VCT) programme of the Department of Health.

Gerhard Joubert...

June 2003
Simpler approach

Sanlam Unit Trusts (SUT) says it has made changes to its product range to “simplify investors’ investment choices in future.”

The Sanlam Consumer Fund and the Sanlam Industrial Trust have been merged and...

June 2003
In place

Although fees have become a significant portion of the overall investment return, clients should not necessarily look for the lowest-cost product.

Sidney Place, chief investment officer (group &...

June 2003
Don’t cash in

Some financial advisers with retail clients who moved aggressively into offshore equities at the height of last year’s run on the rand may find themselves under pressure in the upcoming ‘review season’.

...

June 2003
Book of understanding

I thought vanilla was a flavouring extract used in custard, ice creams and various other confectionaries. But it also means, ‘A straightforward financial instrument with no customised components.’

And so...

June 2003
Is cash still best?

The ‘smart money’ is increasingly going into cash and fixed interest instruments, according to Stanlib. Henk Viljoen, head of fixed interest instruments. He says that financial service intermediaries serving the...

June 2003
All to pot…

One great truism is that no one learns from history. Time and time again, investors persist in buying into past performance, greedily hoping to make quick and bountiful profits. Analysis of fund inflows and outflows...

June 2003
Best of both words

Old Mutual Asset Mangagement (OMAM) recently introduced its Dynamic Floor Fund to individual unit trust investors, after 18 months of success with pension fund clients. The floor fund is based on a clever model that...

June 2003
Simple solutions

Increasing complexity of investment products in a more diverse market is making the job of selecting the right deal ever more difficult. There were only 23 registered asset managers in 1990; now there are over 300....

June 2003
Turning a corner?

Latest global figures show that unit trusts or mutual funds (as they are known in the US) collectively declined 3,6% to US$11,2 trillion in the year to end-December 2002, principally reflecting weakness in stock...

June 2003
Taking the pain out of accidents

Mutual & Federal has recently launched a vehicle accident management programme in association with First Road Emergency. Initially deployed in the Gauteng area, the service will later be extended nationwide,...

June 2003
back on the agenda

South Africa attracted US$2,7 billion in foreign direct investment in 2002, up on the average $2,5 billion per year since 1994 — although still less than other developing countries. One counter to foreign investment...

June 2003
Matching risk

Retiring and retired individuals with an investment linked life annuity can now derive their pensions from one or more listed bonds, which can be selected to match their specific risk and term profiles. Previously,...

June 2003
More than a formality

Deneys Reitz on insurance case law: Napier NO v Spearhead Rice Mills (Pty) Ltd 2002
The respondent sued the appellant in his capacity as the general representative in South Africa for Lloyd’s for damages...

June 2003
Cleansing work

Gauteng MEC for Public Transport, Roads and Works, Khabisi Mosunkutu says he has “declared war on crooked licensing officials” in the province and vowed to put an end to theft, fraud and corruption in his department...

June 2003
Looking for safe havens

Unit trust investors continue to invest their money in safer havens amidst ongoing market volatility and poor equity market performance, with most of the past quarter’s R4,3 billion net inflows (previous quarter R3,6...

June 2003
Advice centre

Sanlam has launched Nexus Finance Services, as its “central service point for entrepreneurs.” It will provide financial management, tax advice, retirement provision, investment advice, estate planning, IT solutions,...

June 2003
Tardy and turgid

It is expected that ‘private bodies’ will be exempted from the most onerous aspects of the Promotion of Access to Information Act 2000 (PAIA).

Private bodies include both listed and non-listed companies,...

June 2003
Positive outlook

Short-term insurance brokers generally have a positive outlook on the South Africa economy and their future prospects, according to research conducted in the second half of last year.

According to a...

June 2003
Unequal burden

The following statistics have been gathered from various sources: Kobus Hannekom, Sanlam head of Employee Benefits, Statistics SA, SARS, Old Mutual Actuaries (Mike Harper), OMAM, McKinsey 2002 Report, and the...

June 2003
Confusing, discouraging and unfair

South Africa’s taxes are about on a par with those in the first world – but local tax specialists say the third world priorities driving government create a fiscal environment that cannot match that of developed...

June 2003
Time ripe for equities

With the first interest rate cuts in the current cycle expected from June, the JSE is continuing to offer excellent value, says Charles De Kock, OMAM’s Head of Asset Allocation. “While in the short term the strong...

June 2003
Healthy move

Old Mutual Healthcare has been contracted to administer the Selfmed Medical Scheme with effect from 1st July 2003. It is currently administered by Medscheme and has around 17 500 members, operating in the open schemes...

June 2003
Robust rules

The new Collective Investment Schemes Control Act (CISCA), which came into effect on 3rd March, greatly improves investor protection while opening up the industry to product innovation.

Jurgen Boyd, head...

June 2003
Wise move

Old Mutual plc has entered into an agreement to purchase Sage Life (Bermuda) Ltd, for an undisclosed sum. The agreement does not include any other business units of the Sage Group.

The deal will provide...

June 2003
Bonds do well

“Investors continue to feel the effects of exceptionally difficult and volatile markets during the past quarter, but bond unit trust investors did well,” says Di Turpin, executive vice-chairperson, Association of Unit...

June 2003
Seven sins

In our previous article on this aspect, we set out a list of the taxes and levies for which a small business may be liable. Provisional tax and employees’ tax was discussed earlier. The other taxes and levies referred...

June 2003
Cost-effective

Cost-effective treatment of HIV/AIDS makes good business sense for medical aids and employers looking for long term, sustainable solutions. Aid for AIDS chairman, Yvonne Motsisi, says, “There is now substantial...

June 2003
Green policy

Recognising the high cost of replacing trees, shrubs, garden furniture, containers and irrigation systems in the event of damage from the elements, garden retailer GardenShop has motivated a tailor-made insurance...

June 2003
Going direct

“The historic view of and the manner in which capitation models were introduced in South Africa, has to be adapted to keep up with the demands of an ever-changing medical environment,” says Jannie Kotze, Chairman of...

June 2003
War wary

Just for the record, predictably insurers have slapped huge premiums on those trading with countries in the Persian Gulf, plus Israel and the Palestinian authority. New rates were brought in from 20th March, due to...

June 2003
Sneak attack

It’s true we have had some hefty cuts in income tax over the last few years. But how better off is the average man-in-the-street? A rise of, say, 12% in the average rate of inflation, means a breadwinner has to get a...

June 2003
Claim by cell phone

Resolution Health Medical Scheme says it has introduced an SMS system so it can communicate quickly with its members as, for example, when a claim has been processed.

The member is also able to obtain the...

June 2003
Gnashing of teeth

I am glad that South Africa’s fluoride programme has been delayed. I don’t want anyone adding chemicals to what I drink (which is why I try to stick to naturally brewed ales). Such mass medication is a violation of...

June 2003
Third approach

Managed healthcare initiatives are definitely showing financial savings for medical aid members. According to Andre Meyer, Medscheme’s new CEO and formerly MD of Alexander Forbes Healthcare, “They are the most...

June 2003
Geared up

Leon Vermaak is back in the short-term insurance industry, all geared up for a brand new challenge. After a brief and unhappy sojourn with one of the mammoths of the life industry, he has taken on the role of CEO of...

June 2003
Plugging the gaps

A number of underwriters have withdrawn from the Single Project Professional Indemnity market, creating a void in terms of expertise and capacity. Glenrand MIB is able to fill the need for this form of PI cover, which...

June 2003
More cost effective

The Department of Health’s new in-house State Scheme will add about 350 000 employees not yet covered by a medical aid into the system, plus some 650 000 that will be transferred from existing private sector schemes...

June 2003
Choose carefully

It is not news that healthcare is very expensive. The increasing numbers of options available has also made the matter far more complex. Put the two together and you end up with a cauldron of problems: you need the...

June 2003
Pensioner security

The depreciation in asset values on the back of falling equity markets coincided last year with a surge in inflation when the headline consumer price index climbed to above 14%. The result for retired people is that...

June 2003
New broom

Europ Assistance (SA) says it has introduced a service to help individuals who employ domestic help and need to administer and pay their unemployment insurance. It costs R15 a month per employee — pretty expensive...

June 2003
Not the same

The South African risk industry is currently debating the relative strengths of occupational disability benefits versus impairment-based benefits. It is also clear that many clients are uncertain which disability...

June 2003
Fund managing

Old Mutual International (OMI) has appointed GAM as investment adviser for its OMG Diversified Plus and Growth Plus multi-manager portfolios, with effect from 3rd March 2003. These invest over the five asset classes...

June 2003
Discovering a better way

The new Medscheme CEO, Andre Meyer, has set his sights on changing his company’s approach to the healthcare intermediary market, together with its entire brand image.

To achieve his goals, he brings six...

June 2003
Debt poser

In a recently reported case, Van der Merwe v Nedcor Bank Limited 2003(1) SA 169 (SCA), the Supreme Court of Appeal reiterated the need for caution in splitting claims against a debtor by cession of a portion of a debt...

June 2003
Reluctant brokers

Insurers and brokers are coming under heavy fire for blatantly holding on to premium refunds and delaying settlement of claims, disregarding the insured’s right to a reasonably swift payment, notes Aviation Consultant...

June 2003
Flood concern

High property losses from flooding - overall loss burden 2002 below the long-term trend

In 2002 losses from natural catastrophes and man-made losses cost non-life insurers US$13,5 billion across the globe...

June 2003
Guideline

The SA Insurance Association (SAIA) has introduced the Collective Policies Market Agreement with effect from 1st May 2003. This new agreement is a guideline used by insurers when placing business on a collective...

June 2003
Recovering millions

During a year when complaints to the Ombudsman for Short-Term Insurance shot up 31%, no less than R22,5 million was recovered on behalf of policyholders.

In commenting on his success, Helm van Zijl,...