Displaying items by tag: retirement
Kenya's retirement benefits eroded by coronavirus
Kenya's retirement benefits eroded by coronavirus
Pension managers in Kenya project depressed growth of retirees’ funds due to the coronavirus pandemic that has negatively impacted the financial markets.
About 17.5 per cent of retirees’ money was invested in quoted securities at the Nairobi Securities Exchange as at December 2019. This amounted to $2.1 billion, up from $1.8 billion in 2018.
In its 2019 industry report, the Retirement Benefits Authority (RBA) said: “The growth in the retirement benefits sector is projected to drop in the first half of 2020 given the effects of Covid-19, which has in the shortest time negatively impacted the financial markets and is postulated to significantly affect the global economy.”
Last week Kenya’s stock market plunged to a 17-year low with the NSE 20 Share Index nose-diving to 1,958.5 points, down from 2,666.9 points in January.
The report shows that efforts to encourage pension and fund managers to invest in new asset classes are not bearing fruit as most schemes continue to prefer traditional asset classes.
The lack of risk appetite by scheme managers throws into disarray plans by the Kenyan government to tap into pension funds to finance infrastructure projects.
The government had identified pension funds as a potential financing alternative for projects, and wanted schemes to pool funds to be directed towards manufacturing, food security, universal health coverage and affordable housing.
The RBA report showed that pension managers prefer to invest in safe havens like government securities, immovable property and quoted equities, while growth in private equity and real estate investment trusts remains muted.
The report shows that assets under management in Kenya increased by 11.2 per cent to $12 billion, from $10.8 billion in 2018. RBA attributed the growth in assets to the relative stability of the stock market during the past year.
The report indicates that pension schemes continued to invest heavily in government securities, with the asset class recording 42 per cent of the total assets under management, up from 39.4 per cent in 2018.
It was followed by immovable property, which accounted for 18.4 per cent, quoted equities at 17.5 per cent and guaranteed funds at 15.5 per cent.
The report shows that investment in alternative assets by schemes has gained traction with private equity and venture capital increased by 12 per cent from $8 million in 2018 to $9 million in 2019, accounting for 0.07 per cent of the total assets.
“The asset diversification remained almost similar to the previous periods with most of the asset classes recording minimal increases/decreases,” stated the report.
10th Annual Africa Retirement Reforms Conference 30th October-1st of November 2019
The Annual Retirement Reforms Conference has run annually since 2009. Now in its 10th edition; the conference has over the years become a premier event for local policy makers and retirement funds for bench-marking progress, professional development, creating collaborations and partnerships towards the optimization of Africa’s investment opportunities and placing retirement funds at the very heart of benefit from local and international markets.
Investment Masterclass for Trustees, Directors and Executives. 11-13 September 2019
• Investment Masterclass for Trustees, Directors and Executives. 11-13 September 2019
Labourdonnais Hotel, Port Louis,Mauritius.
GET 10% DISCOUNT THROUGH PENSIONS AFRICA (See details below)
Designed specifically for directors, trustees, principal officers, portfolio & investment managers and executives with a remit for making decisions, managing and keeping track of their investment policy statement, investment strategy and portfolio performance. The masterclass is arguably the most comprehensive practitioner-led programme designed to break away from the traditional way of teaching and start preparing your team for the future of finance. With a combination of traditional and unorthodox approach, the masterclass challenges the norms and conventions in finance.
GIPF to consult PG on lost money
Namibia: August 2019
THE Government Institutions Pension Fund has said its chief executive officer, David Nuyoma, will meet the prosecutor general to understand how her office concluded that some N$600 million in pensioners' money that the pension fund lent to start-up businesses between 1995 and 2005 was lost and would not be recovered.
"Since the matter is no longer sub judice, the chief executive officer will engage the Office of the Prosecutor General in order to better understand the decision taken," the fund said in a statement issued on Thursday.
It referred to a decision, announced by prosecutor general Martha Imalwa on Wednesday, not to institute a prosecution in respect of 18 out of 20 entities investigated in connection with the alleged embezzlement of the money the pension fund had lent to or invested in businesses through its Development Capital Portfolio (DCP).
The Namibian reported this week that Imalwa said millions of Namibia dollars supposedly invested by the fund could not be traced and prosecutions could not be carried out because of lost documents, forgetful witnesses and a lack of evidence. It is unclear what documents were lost, and what they relate to.
The fund, however, said the DCP investments yielded a profit, having earned the fund dividends and interest, with some loans repaid too. According to the fund it had realised a total profit of N$458 million from its DCP investments by March this year. The total value of investment losses during the operation of the DCP from 1995 to 2005 was N$386 million, and the value of DCP assets still owned by the GIPF stood at N$988 million in March, the fund also stated.
Also reacting to Imalwa's announcement, the chairperson of the Namibian Women Lawyers Association, Ruth Herunga, in a statement on Friday encouraged the GIPF to inform Namibians about the actual impact the loss of money invested through the DCP has had on the fund's financial position and its members.
Herunga also said the association reserved its members' rights in respect of possible private prosecutions that could be carried out with regard to the loss of money invested by the GIPF.
The full statement issued by the GIPF is available on its website.
Government must look at using pension funds to generate growth: Ramaphosa
August 23 2019
South Africa should investigate using worker pensions to fund finance development and infrastructure projects, president Cyril Ramaphosa said on Thursday.
Speaking in a parliamentary Q&A session on Thursday (22 August) Ramaphosa said that the proposal had the backing of the Congress of South Trade Unions(Cosatu), Reuters reported.
“We need to discuss this matter (prescribed assets) and we need to discuss it with a view to actually saying what is it we can do to utilise the various resources in our country to generate growth in a purposeful manner,” Ramaphosa said.
“We are facing a situation where our developmental needs are enormous, and in a number of other places pension funding is utilised for developmental purposes, for infrastructure and quite often those pension funds make good returns out of infrastructure developments.”
In an interview with the Sunday Times earlier this week, a top ANC official said the party is looking at the possibility of using private and public pension funds to rescue the country’s struggling state-owned enterprises.
Enoch Godongwana, head of the party’s economic transformation subcommittee, said that the asset management industry currently has R6 trillion under management which should be borrowed by government.
Godongwana said using this approach to gather funds is better than going the International Monetary Fund (IMF) for a bailout.
“Why would you go to the IMF and the World Bank and go and raise money when we have sufficient savings in the economy which you can borrow, probably far cheaper, and probably with little exchange rate risk?”
Godongwana added that while the ANC is also currently investigating the use of prescribed assets, this is separate from raising money through pension funds.
“Borrowing from domestic markets is not prescribed assets, that is a separate investigation,” he said.
In its election manifesto published in January 2019, the ANC announced that it planned to investigate the introduction of prescribed assets on financial institutions’ funds to ‘unlock resources for investments in social and economic development’.
Source: Business tech. Read original article
IRFA Invites stakeholders to participate in its industry survey
Please help IRFA to energise our retirement ecosystem by completing industry survey
The theme of the annual IRFA conference to be held in Durban at the end of July emphasizes the interconnectivity and impact of all the components in our African retirement ecosystem.
As the Institute of Retirement Funds Africa exists to support and serve both our membership base and the retirement sector at large, we see our primary role as equipping this ecosystem with knowledge, services, advocacy and education to generate and sustain energy in this crucial socio-economic environment.
Hence it is imperative that the retirement sector itself help us constantly redefine our delivery and service package so that we can continue to meet your dynamic needs, now and in the future.
In addition to our range of member services aimed at knowledge transfer and industry development, the IRFA represents the retirement sector in negotiations with government authorities and the Financial Conduct Services Authority. (Including commenting on legislation and tax matters affecting retirement funds/pensioners and all stakeholders.) We like to think that we are your voice in the sector and your needs and opinions define our programming and strategy.
To ensure that we consistently deliver to your requirements as well as to global standards, we believe it is time to revisit member and sector needs and opinions.
Hence we would be very grateful if you could take a few moments of your time to provide your valuable input. All results are being analysed by an independent research practice to assure anonymity and confidentiality.
Please click on the following link to complete the survey. If the link will not open please cut and paste the link on your browser.
http://www.cohesioncrd.co.za/irfa/irfa.htm
Thank you for your valued participation
Wayne Hiller van Rensburg
President
Pension Funds to meet in Livingstone Zambia for the 14th Annual PensionsAfrica Summit
Pension Funds to meet in Livingstone Zambia for the 14th Annual PensionsAfrica Summit
Pension funds from across Southern, Central and East African regions will meet at the Zambian tourist destination town of Livingstone for The 14th Annual Pensions Africa Summit which will be hosted at the Avani Victoria Falls Resort-Livingstone, Zambia on the 25, 26 and 27 of June 2019 . The summit brings together key stakeholders in the pensions and retirement industry, trustees, principal officers, financial services providers and regulators from the Southern, Central and East African regions to discuss latest developments in the pensions industry in the region.
The organisors of the event, AMC International has for the last decade kept a diligent finger on the pulse of Africa’s Pension funds industry, ensuring that trustees are constantly informed of transpiring developments and future trends across the Pension fund management and investment spectra. We have developed crucial networks with funds across the continent and with some of the leading minds and thought leaders in the industry and we are yet again excited to bring together all the major role players in the Pension Space for yet another 3-Days of fresh, relevant and though provoking presentations, informative discussions, fruitful networking, solution oriented content and educational workshops at the 14th Annual Pensions Africa Summit 2019 to be hosted at the Avani Victoria Falls Resort, Livingstone, Zambia on the 25, 26 and 27 of June 2019.
Some of the 2019 Strategic insights will among others include the following:
Once size doesn’t always fit all - Adjusting Africa’s Pension Funds’ Risk Management Framework for Contextualised Future Applicability
- Tracing the rate of reform across the continent – country focused case studies
- Innovation and Strategic Planning to Meet Members’ Needs
- Alternative Investing in Africa – Investing in Alternative asset classes for diversification and higher returns
- Beyond ticking boxes – Corporate Governance for Pension funds
- Fund Management and Crypto Currency
- Managing the inevitable interaction between man and machine in Fund administration – A focus on the increasing role of Artificial Intelligence and machine learning
- Special Opportunities Focus: Leveraging African Pension Funds for Financing Infrastructure Development
- Policy Development Review – Kenya’s Post-Retirement Medical Fund
- Addressing the impact of Improved Health-care and extended life expectancy on Current savings
- In with the new - Rules of effective communication strategies for Pension fund boards
- Focus – Shifting the landscape to accommodate micro-pensions in Sub-Saharan Africa
- Round Table – Making Private Equity Work
- Fire-side Discussion on Impact Investing- Can Pension Funds lead the way in sustainable Investing
Stakeholders in the pensions industry have been invited to take advantage of some the opportunities at the event and which include-Speaking, Delegate participation, Sponsorship as well as to join Panel session or participate through moderating some of the discussions.Additional opportunities include event branding, marketing and hospitality sponsorship. As an incentive, firms have been offered bulk registration deals including one free delegate for every three delegates booked.
To attend or registration forms kindly contact Steve on stevem@amc-intsa.com or call 011 019 2200
Institute of Retirement Funds Africa announces best of the best at its 2019 annual awards ceremony
Institute of Retirement Funds Africa announces best of the best at its annual awards ceremony
The Institute of Retirement Funds Africa (IRFA) industry awards and recognition programme has evolved considerably since its initial inception as a “Communication Challenge” some 31 years ago, into a robust and respected programme which seeks to identify and promote best practices and standards in retirement fund governance, transformation, investment practices, stakeholder engagement, trustee development and financial management and reporting.
Awards were handed out at a well attended gala banquet held at the Wanderers Club in Johannesburg on the 23rd January.
Those winners acknowledged for excellence of standards and practice are:
IRFA President Wayne Hiller Van Rensburg notes the IRFA has established the Best Practice Industry Awards (BPIA) to encourage the boards of retirement funds to continuously strive to improve the performance of those funds and to celebrate excellence in the performance of funds in relation to particular categories of their conduct of fund business. There are various ways in which participation in the BPIA programme may be beneficial to funds and their members. In particular, participation requires a fund to subject its performance to self-assessment and stimulates learning and creativity in engaging in the conduct on which the fund’s performance will be assessed for the purposes of the programme. It should also enhance member confidence in the board of a fund because it demonstrates the board’s willingness to subject aspects of the fund’s conduct of business to independent evaluation.
The programme attracts entrants from a wide range of retirement funds and is benchmarked extensively against local, regional and international programmes of this nature. One of the core objectives of the programme is to identify those practices which should set the standard for the sector and IRFA believes that by bringing these into the public domain we are promoting good practices and the body of knowledge for the ultimate benefit of the member of the retirement funds. The objective of the programme has never been commercial and our judges and moderators volunteer their time and expertise at no cost. For many years we have collaborated with regulators and they have been core partners in terms of lending guidance and judging expertise which has enabled us to develop an inclusive programme and entries continue to show learnings and practices surfaced by our awards programme. We are also extremely grateful to our category sponsors, the SABC Pension Fund, the CfA Society of South Africa, Natal Joint Municipal Pension/Provident Funds,Momentum Corporate and the School of Financial Planning Law of the University of the Free State.
Ends.
For more information: Please contact reception@irf.org.za