Speaker 0:
the topic is realistic approach to impact. And we're gonna use our own plan as a case study.

Speaker 0:
Thank you so much. Uh, if you look at the

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you find

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the fund is a public sector fund from a South African

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is a big time. 55,000 us.

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Uh, we're looking at, um

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last time the 50 billion rand asset and management

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98% of the membership. They all active member,

Speaker 0:
uh, and in terms of employees, you're looking at an organisation with 14 employees that influence the game with the people.

Speaker 0:
Right. So this is when everything happened in 2020

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we took a step back.

Speaker 0:
We pass,

Speaker 0:
we will recommend

Speaker 0:
and we ask ourselves a number of questions.

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The real situation was what kind of future do we want? What kind of do we want to be in 15, 20 years time? What is good for us? So we actually set an honest conversation with ourselves and ask ourselves a number of questions

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at the centre of

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those questions

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or discharging.

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We needed to understand for ourselves as to why we exist.

Speaker 0:
Why can't we just get close? Why should we continue to exist

Speaker 0:
in trying to answer those questions we ask ourselves, Who are we? Is is anything that you and also what are the underlying reasons? Why should the inform means of in close to belong to anything that you assuming that

Speaker 0:
there was no information asymmetry in the English, every member,

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everything about everything

Speaker 0:
issues my African member decides to come and enjoy as a member, and we also needed to look at the the the the position that we were giving to our members.

Speaker 0:
So

Speaker 0:
when we are trying to look at these things, and and these questions,

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uh comes from various provinces because it's a, it's a national country. So

Speaker 0:
look at all the issues that is coming from the from various provinces where the the trustee comes from in the city. What are the issues that are facing our members? And some of the answers that came through was there are issues around education. There are issues around health. There are issues around transport, infrastructure, housing, water and sanitation.

Speaker 0:
I unemployment,

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poverty, inequalities in our issues. We saw what what happened in, in, in, in, in in lion and all sorts of things that in the issues have already been addressed

Speaker 0:
of the financial challenges that our members are going through our members are. We all know that these are challenges when someone is in debt and is facing serious financial challenges, things like expiration. Such things, like you are no longer practise

Speaker 0:
angry.

Speaker 0:
It is a member, but membership comes from

Speaker 0:
of of, of any of if you are dismissed. Therefore, for for other reasons, you can't become AAA member.

Speaker 0:
So, he said, For us to address those issues, we needed to

Speaker 0:
the purpose refine we needed to redefine

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in. In doing that, we started to. We agreed that we should take NFMW as a hybrid, multi type of mutual financial institution that tries to address all those issues. In trying to

Speaker 0:
do that, we have in one way or the other act and behave like we are an institutional system of which we are, and we also needed to act in one way. We are as a different financial finance institution.

Speaker 0:
He had in one way or the other act as an insurer act as a retirement savings vehicle. He also act as

Speaker 0:
a financial planning to or a financial plan to our members. But more importantly, we need to structure all these offerings in the of. And I know some of you

Speaker 0:
already are saying, But how can you find a financial plan? It's really that that's what we did and we we want to discuss er er all these things as we move along. I hope the skills that we have is going to allow us to have some of the things and for my Children to, uh uh, express some of the ways in which we we do these things.

Speaker 0:
But more importantly, we have to

Speaker 0:
change the mindset shift mindsets totally from the conventional way that things have been done

Speaker 0:
first. The,

Speaker 0:
uh, people always say change is the only constant. He went further and said change is the only constant, but the intensity of the constant is also changing. So we had that in the back of our mind over the time.

Speaker 0:
Then we looked at the members as being part of the process. We cannot or we could not separate our members from the environment in which they exist. And this environment is close to

Speaker 0:
as families to communities and the economy

Speaker 0:
we we looked at, we wanted to make a difference in a very intentional and very impactful manner. We responsible as

Speaker 0:
looked at society and said Society must be

Speaker 0:
and I emphasise, must be a big part of the conversation. One single example was health. I also mentioned health is is an issue that we need to deal with.

Speaker 0:
I've just quoted here

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the WH OS resolution of air is being

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physical income and social well-being

Speaker 0:
not really absent of the disease. So we also needed to make sure that the physical element is taken care of. The mental element is taken care of and the social and the social well being is taken care of

Speaker 0:
and say that we then finalise our strategy and at this point we are sitting with a plus minus 25 page organisational strategy looking and and to summarise

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humans.

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We then have ourselves who agreed on a vision to say our vision.

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Obviously the people that are existing fall into the future

Speaker 0:
to positively impact the life of our members, their families, their communities today and tomorrow. We also needed to make sure that we

Speaker 0:
understand our character is an organisation. Those are some of the values that we we agree with. If you look at the last two be in the community. You may

Speaker 0:
rarely see growth in organisation, but for us, even when we

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it was important that we care for our members and we are responsible, we took all our responsibility for their welfare.

Speaker 0:
So at the end of the day, or to summarise what we spoke about,

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this was the model that we ended up with. We needed to make sure that

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and they were

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is taken care of

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their families and their communities. We needed to operate in such a way that our investments and resources and all that we have that is under our control is financially rewarded in our actions and everything that we do, including our investment, we get the right financial returns that are also the risk we're taking. At the same time, we need to make sure that the environment is protected. So

Speaker 0:
where SMW is operating,

Speaker 0:
which is that, uh, the intersection of those of those enemies.

Speaker 0:
But at the end of the day, all have you seen there?

Speaker 0:
We did that. We see

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having its strength.

Speaker 0:
I've just spoken about concepts, so probably what I've just spoken about. Everybody knows about it.

Speaker 0:
But I think if we don't do anything about it, then we just We're wasting our time

Speaker 0:
and reforms put it like that. The issue without execution is just a so we didn't want to be another kind of trustees who are dating, So this is the practical component of these things.

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So in our strategy document, we ended up with five pillars.

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Number one

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was investment. So we we then agreed that we're going to

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implement an impact investing programme

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that we focus the investment strategy to the broader needs of the economy in a sustainable manner. We also say we need to ensure a seamless and effortless member experience by enhancing the existing communication mediums and also to introduce new communication mediums and platforms. We also say we wanna

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provide a superior me value proposition through an integrated approach to our member needs. We also said we want

Speaker 0:
and customise our member of faith. We acknowledge first we are correct,

Speaker 0:
but our purpose is to address the needs of

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member of all the 55,000 we needed to make sure that we are treating them as individuals. So

Speaker 0:
to implement that, we then allocated these pillars

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cheese

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investment communities.

Speaker 0:
Investments is point number one

Speaker 0:
innovate. Find new ways to make things and come back to the board and say, These are the recommendations. This is what we think should happen The Communications Committee

Speaker 0:
Take points number two. Pillar number two go in your head. Find new ways.

Speaker 0:
There are so many things, I think do what we can do in bringing, uh, of what we must do going forward, obviously everything looking into a fund of 10, 15, 20 years time.

Speaker 0:
So let's let's talk to one of those screeners, which is to customise and personalise our members offering.

Speaker 0:
We approached it in two ways. First was holistic financial planning for our members. So what we did, we appointed a service provider called in funds. You can appoint anyone you want.

Speaker 0:
Assuming you you you agree with the the the model that you used. So we appointed a service provider

Speaker 0:
that was going to provide financial planning to our members. I'm not talking real counselling. I'm talking holistic financial planning

Speaker 0:
for your financial planner to sit with them again. Talk to them again. How many Children do you have? How much do you earn? What is your financial spending. What are your life goals and and and and so this is your financial planning report.

Speaker 0:
Proper financial planning. So we're gonna do that

Speaker 0:
to all the 55,000 members. So the first word that we did was to acknowledge that we have got

Speaker 0:
we have time

Speaker 0:
55,000 members who must receive financial planning. But for us to do that, let's start by making sure that those who are coming into the system as new members, we catch them. At that point in time, we provide them financial planning going forward. Right now, we are conducting this hard. Those that we have provided financial planning, we are following them such that in 10, 15 years time, we are able to say

Speaker 0:
this must impact our intervention that we had put in place 10, 10 years 10 years ago.

Speaker 0:
We appoint a dis provider

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in June of last year, so that's not

Speaker 0:
quite number. Then

Speaker 0:
you can see that number 15

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because I

Speaker 0:
left his hand,

Speaker 0:
who will have the option to withdraw cash and

Speaker 0:
move away. But we managed through that intervention to convince those 52 not to take attention. So so to take their benefit. At the end of the day, they preserved the benefit. So for the board

Speaker 0:
was five

Speaker 0:
who who have worked even if that number 52 was one who would have impacted one family who would have impacted

Speaker 0:
the outcome of

Speaker 0:
why?

Speaker 0:
But for that six months, eight months, period with 852. I'm not gonna talk about the the the the but this is a typical example of what we are doing.

Speaker 0:
Then you recall I spoke about the

Speaker 0:
issues around mental illness depression you had, you could

Speaker 0:
So he said, This is also something that we need to address.

Speaker 0:
Then we appointed a partners as part of, uh uh, self insurance. This administration it was July last year. We decided to self insure. So the the the partners have got as part of they are offering NFMW

Speaker 0:
no

Speaker 0:
organisational psychologist of psychologists counsellors. So our members, uh, have got a 24 hour outline where they can go and get assistance from a later perspective and and and their their their their well being.

Speaker 0:
I've got some numbers here from

Speaker 0:
the point of the appointed. That was July last year.

Speaker 0:
You can see from the death claims that we receive

Speaker 0:
about 621 cases

Speaker 0:
needed attention. So we're talking about the same labour guide this house we, we, we, we we need to provide counsel in this house or to the Children, whoever is coping. But you can see from these 385 received containment. Essentially, they were fined

Speaker 0:
right. 428 received the sessions

Speaker 0:
he will have my not coping

Speaker 0:
is out of the death that happened in whether it's the death of the labour or it's the death of the spouse or the death of the the the

Speaker 0:
with a family member. So essentially you change the course

Speaker 0:
of 228 lives.

Speaker 0:
We are even able to speak and say What are the issues that most people were facing so that we can provide the right interventions?

Speaker 0:
That's only on the mental wellness side. On the communication side, we decided

Speaker 0:
we are going to use our website

Speaker 0:
is essential hub that contains all find information. If you happen to get to our site national fund you see

Speaker 0:
on our website there is no information that a member should have. That's not on that website.

Speaker 0:
We we have

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We went to the point where

Speaker 0:
we even pay for our members to go to our website. We use one thing. Oh, this video. So as you are on our website, we pay for you. So for us, our member is already paid for being a member of NFMW. And we are saying we wanna give that information

Speaker 0:
it to you. So we are giving it to you for free. We know that required you just need to go get information. And on our website there is all sorts of technology. You can ask questions. The website responds to you

Speaker 0:
mhm

Speaker 0:
the data of questions and how that the the the technology responds to you. If the technology can respond to you, then it sends the signal to to listen to address your your your issues. They confirm that we use all sorts of channels.

Speaker 0:
How messaging chaps ils there's there's no electronic area that we we don't have or that our neighbours are not privy to over and above that we could achieve that Now

Speaker 0:
these are municipalities our own employee to personally engage with our members in their own languages. We've got about 10 employees who does that. We all communication with scientists,

Speaker 0:
then heading into the

Speaker 0:
this type of things.

Speaker 0:
We then out of those challenges that we identified, we say, OK, let's adopt a few. We can't actually resolve or solve all problems. Let's let's change this thing and we focus on those that we think we can make a meaningful impact. Then we design that education, health, housing, infrastructure and job creation. We wanna adopt these things and we're going to

Speaker 0:
sign.

Speaker 0:
So if you look at it, we did not go to SDGS and picked. We went to the community and see what the problems and picked what the the the challenges were. But we could align those to to the SDGS

Speaker 0:
an implementation point of view. What we had was, he said, having

Speaker 0:
adopted those six leads. So what do we do? We then went into a war portfolio. At that point, I think it was about 26 billion rands and said out of the 26 million rands, how much do we have? Unintentional was invested in education and health in those teams that we have identified. Then we identified how much that that er

Speaker 0:
those numbers So you can see from this chart that

Speaker 0:
was about 0.3% of what we have in our portfolio.

Speaker 0:
Er so education was about 0.3% health, um,

Speaker 0:
0.8% housing, 6.9%. Infrastructure was much. About 82%. If you combine. What what is what is part of the infrastructure? Let me say. But now how do we

Speaker 0:
intention?

Speaker 0:
Mhm.

Speaker 0:
Uh uh, these allocations in the states that we we are looking for. So what we then did we know that

Speaker 0:
all the alternative sense, but that's where you can be a part of the

Speaker 0:
direct impact that is more meaningful. So we went and changed the asset application in order to move much of the the the application to to alternatives. So we we decided

Speaker 0:
much of our allow allowable infrastructure. So alternative is so we moved. We took a decision to move, uh, the alternative strategic acidification from where we where it was, it was about 12.5%

Speaker 0:
to 15%. That created of 1.5 billion rand budget

Speaker 0:
that we hear now to to allocate and so that we could reconstruct

Speaker 0:
his future,

Speaker 0:
right? Obviously, in in an investment space, you also need to make sure that your risk, uh, return profile is is is maintained. So we have to go make decisions around out of that 1.5 billion that we've created. How do we allocate it or what? What kind of, uh, tools? Instruments that we can use. Then we notice we need a private equity. We can invest in easily funds. Uh,

Speaker 0:
OK,

Speaker 0:
yes. So if I can keep moving So we then appointed number of

Speaker 0:
manage

Speaker 0:
in those in private equity mezzanine and and in debt. Then when we deploy the capital that we had, right? Er without or before we talk about some of the commitments that that we had met, we can actually see how those numbers were shifting. Education was now

Speaker 0:
2%. Health is now, uh uh, 12% housing, 6%. But we already had our own targets that we we needed to We needed to meet

Speaker 0:
these numbers. Shows you what we had what we deployed and what we had committed. Er as it, um as an arm. So which means when we deploy everything that we have committed.

Speaker 0:
We we end up with a picture like this. So this is no longer a concept.

Speaker 0:
In December, when we finalised the deployment of the 1.5 billion rand budget that we had, we now can end up with a picture like that. You remember the

Speaker 0:
education? Initially it was 0.3%. At the end of December of 2023 it would be

Speaker 0:
10%.

Speaker 0:
Education was

Speaker 0:
OK. I think I've got that slide. But yeah, you can OK, I can give a little picture so you can You can see er er here for 0.8% it will be a 10%

Speaker 0:
SMME development was 4.9. It would be sitting at 8.2. Health is now sitting. It will be sitting at 10% but initially it was around 0.8%. Then we have diluted the infrastructure. Now we are sitting with a

Speaker 0:
This point would fall out of the conscious decision making and the impact investing programme that we we had decided.

Speaker 0:
So we also measured some of the direct elements that we could pick up from from the the investments that we would be. We have. I'm not gonna go through Uh, all this. Uh, I'm sure etcetera will share with the delegates the the presentation, but one particular example that I can I can pick up road infrastructure.

Speaker 0:
The total kilometres attributable to NFMWS investments that we have currently in in ideas is 89 kilometres. Just to get a picture

Speaker 0:
visualise you

Speaker 0:
making a turn from a freeway into a dust route and you drive 89 kilometres in a dust route. That gives you a picture of what we trying to achieve.

Speaker 0:
They had operational say we have built strong operational capability. We submit financial statements

Speaker 0:
and we've submitted them for the last six years. Within the six months time, without even applying for an extension, we know a failure of valuation. You must submit once and every three years. We submit every year a failure of valuation for a fund of 25 billion rands.

Speaker 0:
We have 25 million rands in unchained benefits. That's outstanding. I want you when you go back to your to your hand, do the ratio of the untrained in you hand vis a vis the total assets. You see the number that you come up with ours. That ratio is about 0.0 rate. We will try and do this thing you find and you see what? What? What that gives you.

Speaker 0:
So thank you so much. In conclusion, out of the three points that I have put in there, the biggest

Speaker 0:
argument that you are presenting to to to the delegates is that a retirement fund in rural adjustment view is a link of structure or an SPV for provision of pensions, but is a vehicle to transform people's lives during their working life into post retirement? Thank you so much.

Speaker 0:
If if you can help me, I'm going to

Speaker 0:
Awesome.

Speaker 0:
True blessing

Speaker 0:
from the chair, probably er, er our host to open the floor, Mr Chair, Just just share with with the delegates.

Speaker 0:
What do you achieved to what you've achieved so far?

Speaker 1:
Thank you very much. And thank you to the delegates for the opportunity. I think what we have said we have actually given,

Speaker 1:
uh, an overview of what we have achieved within this space of three years and and and I must I must, you know, confirm that, uh, this has been, um, nothing else, but as a result, of a very coherent, coherent board that operates as a collective as a team which has, as much as you have division views as a board amongst ourselves. But it is very

Speaker 1:
important that you have to understand the purposes we could not have actually achieved all of what you have just presented before us here. If we did not have that coherent, uh, members of the Board of Justice, and more than anything else, I think you you would remember that it was an important time for us when we actually started this journey. Because at the time

Speaker 1:
when we started the journey, I think it was a time when we just had, uh, our trusted elections, where we actually were able to get new fresh minds and new fresh ideas from the trustees and you as well. We were just happy.

Speaker 1:
Appointed as the view of the fund that has also assisted the board to be able to work as a team and to actually understand without working in OS and without working as opposite or as opposition

Speaker 1:
and and and and furthermore, it is also very important to you and and the delegates that you as a board. You need to have very strong governance structures or systems in place, which will actually inform whatever decision that you take as a board. Because without governance, uh, would cooperate governance systems, you know, you will be actually working. Um, at times you find yourself that you will be working outside the prison

Speaker 1:
evidence refers to you need to have some kind of framework that informs the decision that you actually put in place or you actually take as the board. Because, remember, we are just custodians. This man does not belong to us as justice or some of us are members. But it belongs to the majority members who actually entrust,

Speaker 1:
uh, their their money with us as as as as as as as trustees. So it's very encouraging that whatever you do, it is informed by a particular framework so that you can actually you don't just take decisions, uh, in in, in in you have to put that in place as a board and then so that you follow those particular, uh, uh, frameworks that we have put in place as as a board. Thank you.

Speaker 0:
Thank you. Thank you so much. Uh, and and that is what an interesting story in case that, indeed, I don't want to spoil that. Let me give the audience an opportunity to ask one or two questions. We also have

Speaker 0:
the online platform up. You can start firing away there. Um, is there anyone in the audience? I think there's a head down here with who would like to ask a question. But while we wait for the mic to go there, there is a question

Speaker 0:
that has been asked by the audience what is in the role of global exposure in the fund's diversification approach.

Speaker 0:
What has been the role of global exposure, global investment, offshore investment, exposure, new overall diversification approach.

Speaker 0:
So obviously we we especially in a in A in a space of, um, the the current geopolitical space. But obviously we know we will work. Uh uh, consider in much of the short term, but still, for for

Speaker 0:
the purpose of hedging, you also need to have, uh, assets in in in dollars so that when the the the rand decide er takes another term, you still have got some of the members money hedged in in, so it's it's it's it's important. It's important So what would you say is your allocation to, uh to to foreign investment as a percent of

Speaker 0:
the total five. Ok, so right now. So we we actually have got about three portfolios, right? Depending on the profile of the members that are in those portfolios. But the the the portfolio with the highest risk and and the exposure I think now it's sitting at about

Speaker 0:
30 31%. We saw it not necessary at this point in time to move that allocation to to to the max maximum. So we still comfortable at those numbers? If we are going to move it, probably it's another 23 3% maximum 35%. OK, great. I think we have a question. Can you ask a question?

Speaker 1:
Thank you, I. I heard the speaker talking about the

Speaker 1:
the good strategy. Or let me rather start by introducing myself. I'm I'm purchasing my back from, uh, HAPF Speaker. You you talk of your the the good, uh, strategy that you have, uh, already finalised.

Speaker 1:
And it it According to me,

Speaker 1:
uh, it's a it's a good strategy. And

Speaker 1:
II, I think if that that will help the members uh it will also be

Speaker 1:
imperative or a lesson for all the member trustees here who can help our members.

Speaker 0:
Now, my passion

Speaker 1:
on what you have alluded to is how do you dare,

Speaker 1:
uh will you address the whole issue of those members who are already indebted

Speaker 1:
as well as those who are on your

Speaker 1:
and reviews? Because you rightfully said that, uh, members are are struggling, are indebted, or workers working class are indebted. But the strategy that you spoke about obviously brings a remedy of taking all those members out of the deep well that they are sitting in.

Speaker 1:
If you can maybe give us that, uh, clarity. Obviously, we're gonna implement that for the members so that they can get out of that, uh, well of being indebted as well as

Speaker 1:
TV view platforms. Thank you.

Speaker 0:
So thank thank you so much. II. I think the the

Speaker 0:
the first point was

Speaker 0:
or is

Speaker 0:
address financial planning.

Speaker 0:
Seen many of, uh uh,

Speaker 0:
Our members are in debt is because

Speaker 0:
they were left to their own device to craft their

Speaker 0:
in courts financial plan. Right, You

Speaker 0:
and we've seen it. Those reports came to us. You get to an employee he's in. But if you go to that place, that guy's pastry.

Speaker 0:
There are 34 funeral policies. There are four risk policies. Uh, there is another debit order. So

Speaker 0:
if if a financial planner sit with this person,

Speaker 0:
how much do you earn? What are your requirements? You don't need this and this and this and this. This OK, how where is your child going to school at the moment, OK for us to do this, Let's adjust here. What do you buy? Every mother's grocery? Let's adjust play with. Then, at the end of the day, there is a holistic financial report that is produced

Speaker 0:
that talks to that particular person with recommendations. If you follow those recommendations in in a year or so,

Speaker 0:
you could be out of hand. But the process, obviously it's it's It's painful because you you now, as a person, going through transformation, changing some of your habits.

Speaker 0:
It's painful. But in two years or so,

Speaker 0:
implementing those recommendations, you will be out of date. But what we can do as a fund is OK. How much do you owe? Uh, Mr Raise 5000 for Joseph that we can do. We want to provide sustainable solutions that are within the of what we can provide. For those who have been involved in the financial planning industry

Speaker 0:
to provide the reports, financial planning reports and holistic financial planning to get that service we must pay in the region of 7000 rand,

Speaker 0:
Most of our blue collar employees and workers. You can't take around 7000 to go get a financial plan. And we are paying for that as a member. And obviously, because of our, uh, our numbers and and and the scale we are paying much less than what an individual member could could go and get as a service,

Speaker 0:
Thank Thank you very much for that Less and, um, as well as chance. Thank you. I think I've seen lots of admiration for what you are you are doing here. And as colleagues before, please feel free to further engage Charles and less. They've opened

Speaker 0:
that and are willing to share their experience and learning learning with other fans. And, uh, yeah, thank you very much.

Speaker 1:
Thank you. The last message that I would like to share with you. Just what the view just indicated. Lastly,

Speaker 1:
er, because it's it is very important that we take this financial education process very, very, very important.

Speaker 1:
I mean, our members, unfortunately, they made a decision based on ill informed information and and and like has indicated it's a process We've just started in 2020 you can see the the results. And we believe that in 10 years time we'll be in a much better stage of, uh, F. Our members will be in a much better financial stage in 10 years time. We know it's a process that painful, but as

Speaker 1:
education is power, we need to and and as NFM what we are doing. Currently, we make sure that in each and every information sessions that we conduct, one of the key information that we share with the members is this financial education. Because our members take unfortunate decisions which are dire and that unfortunately affects themselves, their families and their communities. The future.

Speaker 0:
Thank you very much.