SOUTH AFRICA - For the first time in South Africa's history, total pension fund assets have hit the R1trn (US$162.7bn) mark, according to the latest annual report released by the Financial Services Board.
The 46th annual report for 2004 shows that total assets increased on the year previous from R909bn to R1,098bn due, in part, to a 22.1% increase in employer contributions and an increase of 13.9% in member contributions.
Income from investments also increased by 33.6% during the two years, while the adjustment to fair value of investments changed from a deficit of R19.832m in 2003 to a surplus of T49.587 in 2004. Income from investments, including the adjustment to fair value, increased by 350%.
The return on investment made by pension funds for the past five years averaged 12.5%, with a low of 0.7% in 2003 to a high of 21.5% in 2004.
Total contributions of Official, Transnet, Telkom and Post Office funds increased by 10.2%, while total contributions to self-administered, underwritten and bargaining council funds in their private sector increased by 13.3%. In the same period benefits paid increased by 18.3%.
By Daniel Flatt
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