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August 2011
Opportunity to guide change

 

The Code for Responsible Investing in South Africa (CRISA) was launched at the Sandton Convention Centre on 19th July 2011, making the country one of only two countries globally to encourage institutional investors formally to...

August 2011
The five principles

 CRISA originally consisted of four principles. While the original four remain, a fifth principle addressing conflict of interest was added as a result of feedback by stakeholders on the draft Code.
Principle 1 – An institutional...

August 2011
Exposing survival rate

Retired investors commonly face the dilemma of either maintaining a certain lifestyle or lowering it in order to preserve their capital for longer. The more income one draws and spends now, the less is available to...

August 2011
Standard deviation problem

Risk in investments can be described or measured in various ways. The most common method of measuring the risk of an investment is to calculate its volatility or standard deviation. The reason for the popularity of the standard deviation is...

August 2011
Shear Joy

Absa Asset Management, investment arm of the Absa Financial Services Group reported towards the end of July that the firm’s absolute return assets under management reached the R10 billion mark. Institutional investments are underpinned by...

August 2011
No wild card

Following the ruling by the Ministry of Finance allowing retirement funds to increase their offshore exposure to 25% with an additional 5% of their assets to be invested in Africa, industry focus has been on the potentially large returns...

August 2011
Don’t get caught off guard

Most people have faced a bill for specialist in-hospital procedures, only to find the medical aid covers just one third of the procedure. One answer, says Marco Fonto, managing director of Stratum Benefits, is to buy...

August 2011
Staying on track

Recent regulatory changes may have the unintended consequence of discouraging, rather than encouraging clients to seek financial advice. In what Mark Kitching, head of Linked Investments at Absa Investments, refers to...

August 2011
High net worth boost

The rapid growth in the number of millionaires on the African continent is resulting in a rising demand for financial services solutions that meet the specific requirements of these high net worth individuals....

August 2011
Start small

The investment arm of the country’s largest retail bank said the rate of bad debt growth was slowing but challenged consumers to go one better and lift the rate of household savings – a figure that has hovered around...

August 2011
Time trials

As a rule of thumb, the average South African should save enough to cover his final gross salary 12 times by the age of 65. You can use your present salary to estimate this amount in current money terms.

...
August 2011
Too easy not to save

In a keynote address on 13th July, at the 10th Anniversary of the South African Savings Institute and Launch of Savings Month 2011, Finance Minister, Pravin Gordhan, posed the question: ‘Why don’t we save?’...

August 2011
Apply of explain

The Code for Responsible Investing in South Africa (CRISA) makes South Africa only the second country next to the UK to formally encourage institutional investors to integrate into their investment decisions...

August 2011
Thumbs down in professional survey

Results from the latest PPS Graduate Professionals Confidence Index, which tracks confidence levels of more than 3 000 of South Africa’s graduates, show their confidence levels have deteriorated over the second...

August 2011
One false move and you’re dead

Dominique Strauss-Kahn was at the peak of his career as head of the IMF until he was charged with sexual assault, wrongful imprisonment and attempted rape. Guilty or not, his career took a nosedive along with the IMF’...

August 2011
Concrete advice

The market value of a property does not represent the cost of rebuilding and may be considerably more or less depending on housing market supply and demand.  As such, homes must be insured for the cost of...

August 2011
Know the hidden costs

With fuel prices and toll fees on the rise, and traffic congestion eating hours out of every day, more and more people are considering motorcycles as a convenient and cost-effective transport option. But, says direct...

August 2011
Leakey problem

Water damage is the most common cause of homeowners’ insurance claims. Not surprisingly, it is also the area in which most damages claims are rejected by insurers.


This is because “home owners often...

August 2011
Poor oversight

Back in April Southwest Airlines had a nasty fright when it found cracks after a B737 made an emergency landing in Arizona. This followed a rapid loss of cabin pressure. There was a tear along the lap joint which is...

August 2011
Reluctant capital

The latest market overview BoE Private Clients shows that the South African government as well as local and provincial governments should urgently shift focus to investing in future growth.


BoE...

August 2011
Foreign Investment

South African banks, management companies and financial services, such as Standard Bank, Investec and AfrAsia, are helping to conduct worldwide businesses from their offices in Mauritius.

...

August 2011
Optimising capital

Mutual & Federal, a member of the Old Mutual Group, has successfully entrenched its new risk control self-assessment (RCSA) methodology throughout the organisation as part of its greater Solvency II initiative....

August 2011
Striding ahead

Following various meetings with the industry, Astute is now in a position to formalise the timelines around phase 1 of the STRIDE project.


STRIDE stands for ‘Short Term Insurance Data Exchange’. The...

August 2011
Into darkest Africa

It appears the local aviation market is well resourced and insured, leaving insurers to explore opportunities in the rest of the African continent if they are to grow their businesses. Local experts believe they have...

August 2011
Strippers caught naked

The sanctioning on 17th March 2011 by the Johannesburg High Court of a plea settlement between the National Prosecuting Authority and certain companies within the Alexander Forbes Group, marked the successful end of...

August 2011
Local rules

The Financial Services Board (FSB) recently released a Directive (149.A.iii) with an implementation date of 1st July 2011.


Comments Suzette Strydom of the SA Insurance Association, “This directive...