Wednesday, July 11, 2007

2007 Annual Survey of Retirement Benefits in South Africa

The 2007 Sanlam Survey was conducted among principal officers of retirement funds. Respondents were selected at random to represent small (<100>South Africa. These included pension and provident funds structured on a defined contribution basis, as well as umbrella funds.

The survey recorded a 100% response rate with a total of 200 funds responding.



Highlights

  • In the past year, the amount of employee and employer contributions to pension funds has fallen by almost a full percent per year, with the total provision for retirement now at only 11.3 percent per year, the study reveals.
  • Only 10.5 percent of retirement funds have a formal investment policy to invest a proportion of assets in socially responsible investment (SRI) portfolios.
  • Almost 60 percent of funds are considering paying for financial education of members to address the perceived lack of understanding of the information provided to members.

Download the full report

Tuesday, July 10, 2007

KPMG and SAVCA Private Equity Survey- May 2007


The results of the KPMG and SAVCA ‘Venture Capital and Private Equity Industry Performance Survey’ for 2006 conclude that the private equity industry represents a significant sector within the overall financial services industry, and is an attractive asset class within the broader capital markets.

Compiled from 44 private equity fund managers representing 71 funds, the survey data confirms that 2006 was a watershed year for the industry, with record activities across all measurement criteria, including fund raising, investment and exit activity. The survey, covering the 2006 calendar year, provides a vital summary of performance highlights and provides insights into current trends and forecasts of the industry, as well as comparisons to historical data and global trends.

South African investors are beginning to understand that private equity provides positive absolute returns and significant portfolio diversification benefits.

75% of funds raised last year were from offshore investors, of which half were from the US, contributing to the US overtaking Europe as the highest provider of foreign funds to the SA.

The South African industry improved fund raising drive last year has caused funds under management to surge to R56, 2bn at the end of 2006 compared with R42, 5bn in 2005.

Overtures from foreign private equity houses are confirmation of the stability of the SA political system, macroeconomics, a sound banking system, a functional regulatory system and, good economic growth prospects.

Black economic empowerment (BEE) remains a major source of activity in the industry with investment in entities that are black owned empowered or influenced up 23% from R3.1 billion during 2005 to R3.8 billion during 2006.Funds returned to investors increased by R18, 4bn from R4bn during 2005 to R22, 4bn during 2006.

Download the survey

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