Wednesday, 14 March 2012 - 20:00
Charts
Death benefits from Approved Retirement Funds vs Policies One of the most misunderstood areas of financial planning in South Africa is how trustees of retirement funds deal with death benefits of the funds. Most people either have their own benefits or have to deal with family members or staff who are frustrated when a claim either takes too long or the benefits aren’t paid out as stipulated in the beneficiary nomination form.
The beneficiary nomination form for an approved retirement fund benefit does not carry the same weight as one for a life policy. When you nominate a beneficiary on a life policy or an unapproved group scheme, the insurer will pay the proceeds of the policy directly to your nominated beneficiary, whether it is your mistress, your brother or the SPCA. This is not the case with a beneficiary nomination on death benefits on an approved retirement fund.
Death benefits on a retirement fund are paid out in accordance with the stipulations of section 37C of the Pension Funds Act. It grants the trustees a 12 month period from the death of the member to search for dependants of the deceased member. This needs to be done despite the existence of a nominated beneficiary. The trustees are granted discretionary powers in awarding the death benefits; however, the overriding consideration is equity in distributing the death benefit. The trustees cannot merely follow the beneficiary nomination that the member placed on the policy or pay the benefit to the dependants found by them, but must exercise their discretion provided to them by section 37C in doing so. The beneficiary nomination will act as a guideline to the trustees as to the wishes of the member, but in no way diminishes their responsibility in determining who should receive the death benefit.
In a Pension Fund Adjudicator decision of S Segal v Lifestyle RA Fund, the adjudicator stated that in order for the trustees to act equitably, they should give regard to the following factors:
• The age of the parties;
• The relationship with the deceased;
• The extent of dependency;
• The financial affairs of the dependants, and
• The future earning potential and prospects of the dependants.
The adjudicator then goes on to provide a class of potential claimants, which includes:
• Those whom the deceased had or would have had a legal duty to support, namely spouses, children, parents, grandparents, and unborn children;
• Factual dependants, such as so-called common law spouses and same-sex partners;
• Customary law spouses and those married under Islamic law, Hindu, Buddhist, Confucian, or Taoist rites;
• Major children of the deceased whom the deceased had no legal duty to support; and
• Beneficiaries nominated in writing after 30 June 1989.
A nominated beneficiary, for example a brother, who is not financially dependant on the deceased, will have very little chance of receiving the benefits if the deceased had a wife and children. This is an example of where customary law and legal statue are directly in conflict with one another, because it is common practice amongst Zulus that the oldest brother / oldest son must inherit and he will then look after the remaining dependants. Unfortunately, for customary law legal statute carries more weight.
Therefore, when you are nominating beneficiaries for your retirement fund’s approved risk benefits, take note of the parameters, which the trustees must use when allocating benefits. They are not trying to be difficult if they do not follow your wishes, they are just following the law.
Kind regards,
Barry Hugo
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Wed, 14 Mar 2012
Top News
The rand tumbled over two percent against the dollar after surprisingly weak retail sales data while a strong dollar on Wednesday jolted the currency out of its recent lethargy. Full story
Zimbabwe's monthly gold production has fallen short of the targeted 1,100 kilogrammes since the start of 2012, according to figures published by the finance ministry on Wednesday, throwing into doubt a projected annual output of 13 tonnes for the year. Full story |
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Forces loyal to President Bashar al-Assad attacked rebel strongholds in various parts of Syria on Wednesday, intensifying their assault as the uprising entered its second year with a negotiated solution as far off as ever. Full storyU.S. Defense Secretary Leon Panetta on Wednesday told troops in Afghanistan that the massacre of 16 Afghan civilians by an American soldier should not deter them from their mission to secure the country ahead of a 2014 NATO withdrawal deadline. Full storyDistraught parents flew to Switzerland on Wednesday after a bus carrying a Belgian school party home from a ski trip crashed into the wall of a Swiss tunnel, killing 22 children and six others. Full story |
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Markets | European stocks ended
higher on Wednesday, with benchmarks closing at levels not seen
since August after a drop in Italy's borrowing costs at. . . Full story | | The dollar rallied and
U.S. Treasury yields soared on Wednesday, boosted by
a brighter economic outlook from the Federal Reserve and news
that most. . . Full story | | Gold hit its lowest since
mid-January on Wednesday after a modest upgrade of the U.S.
Federal Reserve's economic outlook added zip to the. . . Full story | | U.S. stocks were
largely flat on Wednesday as investors balanced
comments from the U.S. Federal Reserve on the economy and
banking sector against the. . . Full story |
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| Britain's top shares rose
on Wednesday as a more upbeat global economic outlook and robust
corporate earnings placed the FTSE 100 index within. . . Full story | | European shares were
higher at midday on Wednesday, extending their march towards
last summer's highs, on upbeat comments from the U.S. Federal
Reserve and. . . Full story | | European shares rose
early on Wednesday to reach fresh 33-week highs, led by
financials as the U.S. Federal Reserve improved its economic
outlook for. . . Full story | | Hong Kong shares
reversed early gains to snap a four-session winning streak on
Wednesday, dragged by China plays after Premier Wen Jiabao
doused expectations. . . Full story |
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SA Business | South African stocks rose for a second straight day on Wednesday as a slightly brighter outlook for the U.S. economy from. . . Full story | | Growth in South Africa's retail sales slowed to 3.9 percent on an annual basis at constant prices in January, from 8.7. . . Full story | | South Africa's rand was softer against the dollar on Wednesday, following stronger upbeat U.S. data that dimmed the prospects for further. . . Full story | | The rand was steady in its recent range on Tuesday, with investors awaiting comments from U.S. Federal Reserve at 1815 GMT,. . . Full story |
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| South Africa's biggest construction group Aveng reported a 31 decline in first-half profit, hit by contract execution problems in Australia and an industry-wide slump at home.. . . Full story | | South Africa's National Union of Mineworkers (NUM) said on Wednesday it had served a strike notice to Modikwa Platinum, a joint venture between African Rainbow Minerals and Anglo American Platinum, over. . . Full story | | Gold fell about 2
percent on Tuesday to a seven-week low after the Federal Reserve
acknowledged the recent signs of economic strength and offered
few clues on further U.S. monetary easing.. . . Full story |
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Company News | The board announce that a final dividend of 13 cents per share (dividend no. 10) resulting in a total dividend of. . . Full story | | Evraz announce that Mr Vusimuzi Moses Nkosi will join the board as from today, 14 March 2012 as Non-executive Director. Mr. . . Full story | | Implats announces further clarification of the agreement reached with the Government of Zimbabweon 13 March 2012. The Government has agreed in. . . Full story | | At the general meeting of Old Mutual plc held in London, shareholders voted to approve the sale of the company's Nordic. . . Full story |
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| Shareholders are advised that Erbacon entered into an agreement on 24 February 2012 in terms of which Erbacon disposed of its. . . Full story | | As all the terms of the disposal are contained herein, caution is no longer required to be exercised by shareholders when. . . Full story | | Further to the cautionary announcements dated 17 October 2011, 28 November 2011, 12 January 2012 and 23 February 2012, shareholders were. . . Full story | | Shareholders of Sephaku Holdings ("shareholders") are referred to the finalization announcement dated 7 March 2012 ("the finalization announcement") which sets out. . . Full story |
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Company Results | Revenue increased to R3.6 billion (R3.3 billion). Gross profit rose to R989.9 million (R896.9 million) and operating profit improved to R187.7. . . Full story | | Revenue for the year ended 31 December was higher at R1.4 billion (2010: R1.3 billion). Total comprehensive income for the year. . . Full story | | Revenue increased by 44.1% to R1.6 billion (R1.1 billion). Gross margin rose to R716.7 million (R467.5 million) and operating profit improved. . . Full story | | Revenue for the interim period increased by 13% to R19.1 billion (2010: R16.9 billion). Operating profit fell by 35% to R332. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 34426.74 | 251.35 | 0.74% | JSE Top 40 | 17:00 | 30521.67 | 218.87 | 0.72% | JSE Gold | 17:00 | 2483.12 | -53.74 | -2.12% | JSE Financial | 17:00 | 25056.21 | 236.31 | 0.95% | JSE Industrial | 17:00 | 38021.68 | 358.89 | 0.95% | JSE Indust 25 | 17:00 | 31918.51 | 301.96 | 0.96% | JSE Resource | 17:00 | 51722.25 | 185.51 | 0.36% | DJ Futures | 19:30 | 13140.00 | 27.00 | 0.21% | DJ Ind | 19:45 | 13182.79 | 5.11 | 0.04% | SP 500 | 20:00 | 1393.58 | -2.37 | -0.17% | Nasdaq | 20:00 | 3038.65 | -1.23 | -0.04% | FTSE 100 | 18:35 | 5945.43 | -10.48 | -0.18% | DAX | 19:06 | 7079.42 | 83.51 | 1.19% | CAC40 | 19:06 | 3564.51 | 14.35 | 0.40% | Nikkei | 08:26 | 10050.52 | 151.44 | 1.53% | Shanghai | 09:26 | 2391.23 | -64.57 | -2.63% | Hang-Seng | 10:26 | 21307.89 | -31.81 | -0.15% | All Ords | 07:39 | 4375.60 | 39.10 | 0.90% | NZSE 50 | 07:12 | 3498.99 | 28.18 | 0.81% |
| | Name | Time | RP | Move | % Move | Gold | 19:58 | 1635.90 | -37.40 | -2.23% | Gold/Rand | 20:00 | 12633.07 | -92.63 | -0.73% | Gold/R kg | 20:00 | 406153 | -2978 | -0.73% | Silver | 19:58 | 31.8000 | -1.5480 | -4.64% | Platinum | 19:58 | 1659.50 | -28.50 | -1.69% | Palladium | 19:58 | 687.90 | -15.10 | -2.15% | R157 | 17:00 | 6.83 | .18 | 2.71% | R204 | 17:00 | 7.70 | .17 | 2.26% | Brent Crude | 19:56 | 125.66 | -.91 | -0.72% | Rand / Dollar | 19:58 | 7.7224 | 0.1929 | 2.56% | Rand / Pound | 19:55 | 12.0705 | 0.2759 | 2.34% | Rand / Euro | 19:55 | 10.0510 | 0.2021 | 2.05% | Rand / NZD | 13/03 | 6.1913 | 0.0191 | 0.00% | Rand / AUD | 19:55 | 8.0623 | 0.1248 | 1.57% | Yen / Dollar | 19:58 | 83.6430 | 0.7790 | 0.94% | Euro / Dollar | 19:55 | 0.7679 | 0.0037 | 0.48% | Dollar / Euro | 19:59 | 1.3016 | -0.0066 | -0.51% | Pound / Dollar | 19:55 | 0.6377 | 0.0013 | 0.20% |
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The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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14/03/2012 | 250 | 117 | 68 | 435 | 380,934,505 | R22,163,507,388 | 130964 | 2383594 | 13/03/2012 | 228 | 117 | 68 | 413 | 254,846,329 | R16,348,900,948 | 107465 | 2137011 | 12/03/2012 | 183 | 139 | 96 | 418 | 293,286,117 | R13,620,773,576 | 83070 | 2325052 | 09/03/2012 | 209 | 120 | 89 | 418 | 223,412,715 | R10,721,735,604 | 81913 | 2268613 | 08/03/2012 | 224 | 119 | 83 | 426 | 271,402,811 | R16,743,014,100 | 96844 | 2348090 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 30,521.67 | 218.87 | 0.72% | Industrial | 38,021.68 | 358.89 | 0.95% | Mid Cap | 48,279.32 | 390.45 | 0.82% | Small Cap | 35,777.11 | 252.84 | 0.71% | Resource 20 | 51,722.25 | 185.51 | 0.36% | Industrial 25 | 31,918.51 | 301.96 | 0.96% | Financial 15 | 9,503.60 | 104.16 | 1.11% | Financial & Ind. 30 | 35,570.02 | 346.90 | 0.98% | All Share | 34,426.74 | 251.35 | 0.74% | Oil & Gas | 29,322.38 | 187.67 | 0.64% | Mining | 33,272.78 | 82.54 | 0.25% | Gold Mining | 2,483.12 | -53.74 | -2.12% | Platinum Mining | 61.58 | .74 | 1.22% | GENERAL MINING | 8,421.79 | 52.97 | 0.63% | Oil & Gas Producers | 15,766.10 | 100.91 | 0.64% | Basic Materials | 28,458.72 | 97.87 | 0.35% | Chemicals | 15,502.19 | 141.89 | 0.92% | Forestry & Paper | 14,284.46 | 157.24 | 1.11% | Industrial Metals | 31,466.40 | 481.14 | 1.55% | Industrials | 32,990.56 | 308.12 | 0.94% | General Industrials | 90,760.29 | 502.08 | 0.56% | Consumer Goods | 32,996.62 | 416.83 | 1.28% | Automobiles & Parts | 5,321.48 | 113.23 | 2.17% | Household Goods | 181.40 | 1 | 0.40% | Health Care | 40,079.87 | 679.09 | 1.72% | Beverages | 108.67 | 1.37 | 1.28% |
| | Index Name | RP | Move | % Move | Food Producers | 59,999.16 | 91.71 | 0.15% | Personal Goods | 490.29 | 8.89 | 1.85% | Consumer Services | 63,829.43 | 930.97 | 1.48% | General Retailers | 53,636.09 | 662.63 | 1.25% | Travel & Leisure | 3,754.74 | 40.29 | 1.08% | Media | 91.87 | 2.46 | 2.75% | Support Services | 2,474.87 | 51.14 | 2.11% | Telecommunications | 69,497.69 | -724.46 | -1.03% | Financials | 25,056.21 | 236.31 | 0.95% | Banks | 47,511.68 | 542.37 | 1.15% | Non-life Insurance | 41,221.03 | 358.88 | 0.88% | Life Insurance | 20,013.19 | 254.99 | 1.29% | General Financial | 2,372.64 | 9.07 | 0.38% | Technology | 28,049.10 | 234.73 | 0.84% | SHARIAH TOP40 | 3,151.92 | 11 | 0.36% | FTSE/JSE SHARIAH ALL | 3,258.20 | 12 | 0.37% | COAL MINING | 27,881.49 | 358 | 1.30% | FTSE JSE Fledgling | 5,305.97 | 8 | 0.14% | FTSE/JSE Alt X | 1,240.98 | -10 | -0.83% | SA LISTED PROPERTY | 419.89 | | 0.18% | CAPPED PROPERTY | 341.08 | | 0.48% | RESOURCE | 28,567.04 | 88 | 0.31% | DIVIDEND PLUS | 200.22 | 2 | 1.06% | FTSE/JSE RAFI 40 | 7,221.27 | 54 | 0.75% | Capped Top 40 | 16,110.95 | 117 | 0.73% | Capped All Share | 17,416.66 | 128 | 0.74% | JSE TABACO | 4,977.76 | 63 | 1.29% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | INL | INVESTEC LIMITED | BUY | 12 Mar | HPA | HOSPITALITY PROP FUND A | BUY | 12 Mar | VPF | VUNANI PROP INV FUND LTD | BUY | 12 Mar | REB | REBOSIS PROPERTY FUND LTD | BUY | 12 Mar | CPI | CAPITEC | BUY | 12 Mar |
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Results Expected** Expected | Company Name | Fin. Date | 15 Mar 2012 | 1TIME | December 2011 (Final) | 15 Mar 2012 | ARROWA | September 2011 (Final) | 15 Mar 2012 | ARROWB | September 2011 (Final) | 15 Mar 2012 | BELL | December 2011 (Final) | 15 Mar 2012 | CIPLAMED | December 2011 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | AFRIMAT | 12-03-14 | 12-03-29 | 12-04-10 | R 0.1300 | JSE | 12-03-13 | 12-05-18 | 12-05-28 | R 2.5000 | CLOVER | 12-03-13 | 12-03-29 | 12-04-10 | R 0.1500 | VPIF | 12-03-12 | 12-03-29 | 12-04-10 | R 0.2700 | SASOL | 12-03-12 | 12-04-04 | 12-04-16 | R 5.7000 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | KUMBA | 12-02-09 | 12-03-09 | 12-03-19 | R 22.5000 | DSY B PREF | 12-02-23 | 12-03-09 | 12-03-19 | R 2.8923 | MASSMART | 12-02-22 | 12-03-09 | 12-03-19 | R 2.5200 | AMPLATS | 12-02-13 | 12-03-09 | 12-03-19 | R 2.0000 | CAPEVIN | 12-02-17 | 12-03-09 | 12-03-19 | R 1.9840 |
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Upcoming AGMs** Code | Company Name | Date | Status | SDH | SecureData Holdings Ltd. | 20/03/2012 | Confirmed |
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