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South African Actuarial Journal Volume 5 (2005)

 

The relative investment performance of the Community Growth Fund

Author(s): A Asher
Abstract:
This paper examines the impact of social criteria on the investment performance of the Community Growth Fund, a trade-union-controlled South African unit trust. It gives a brief history of the fund, discusses reasons for performance deviations, and shows that there may be reason for believing that some social criteria improve performance.
Keywords: Investment performance; ethical; socially desirable; socially responsible

The relative investment performance of the Community Growth Fund (pdf)

 

An investigation of the mortality of South African assured lives, 1995-1998

Author(s): BR O’Malley, RE Dorrington, SC Jurisich, JA Valentini, TM Cohen and BJ Ross
Abstract:
This paper outlines the findings of an investigation of the mortality of South African assured lives, covering the period 1995 to 1998. The investigation was carried out by the Continuous Statistical Investigations (CSI) Committee of the Actuarial Society of South Africa (ASSA).
Some of the major findings of the investigation were worsening mortality below age 50, general improvements in mortality above age 50, substantial differences in mortality between the different socio-economic classes and signs of anti-selection below age 50, especially in the better socioeconomic classes.
Keywords: Mortality; experience; investigation

An investigation of the mortality of South African assured lives, 1995-1998 (pdf)

 

Saving for retirement in South Africa: Charges to the consumer

Author(s): RD Rusconi
Abstract:
Whether in occupational plans or private supplementary arrangements, workers pay for the opportunity to save for retirement through a variety of charges that erode the prosperity of their retirement years. This paper provides an analysis of the administrative charges paid by South Africans saving for retirement in the areas of occupational retirement funds, individual-life products and unit trusts, using a model designed to evaluate the lifetime effect of these charges.
The analysis suggests that retirement funds are cheapest, followed by unit trusts and then individual-life products. These results are consistent with the flexibility of the more expensive products. Overall, however, charges appear to be high. Comparison with international benchmarks appears to confirm these concerns.
South Africa is in need of new pension-fund legislation and initial thinking on the framework has begun. The paper ends with thoughts on the implications of this research for policymakers.
Keywords: Retirement; administration; charges

Saving for retirement in South Africa: Charges to the consumer (pdf)

 

Mutuality and solidarity in healthcare in South Africa

Author(s): HD McLeod
Abstract:
This paper uses Wilkie’s definitions of mutuality and solidarity to review the history of private healthcare in South Africa. The vision for a future unified national healthcare system is given and the phases of reform are outlined. The first phase of reforms has been completed and these are contextualised in terms of a return to solidarity principles. The elements of a planned social healthinsurance system are described and it is shown how income cross-subsidies will further entrench the principles of solidarity. In the past, healthcare actuaries largely supported mutuality principles. The implications for the actuarial profession are suggested.
Keywords: Healthcare; medical schemes; social solidarity; community rating; minimum benefits; social health insurance; risk equalisation

Mutuality and solidarity in healthcare in South Africa (pdf)

 

Editorial

SAAJ Volume 5 Editorial (pdf)

The views and opinions expressed in this journal are, unless otherwise stated, those of the authors. Editorial opinion or comment is, unless otherwise stated, that of the Editor and publication thereof does not indicate the agreement of the Actuarial Society of South Africa.

Actuarial Society of South Africa
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Cover design: The Fire Room, Cape Town
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ISSN-8: 1680-2179
ISSN-13: 977-1680-2170-02