06/10/2007 14:16 - (SA)
New pension fund will give women much bigger clout
Bongolethu Futuse
GLORIA Serobe, one of the founders of the financial services group, Wiphold, could emerge as a powerful force to be reckoned with if her plans to set up a women-led multi-billion-rand pension fund gets off the ground.
If Serobe manages to build the pension fund, she will have Brian Molefe’s financial clout. He is the controversial chief executive of the Public Investment Corporation (PIC), who has used the R700 billion he manages on behalf of government employees to promote black economic empowerment.
Serobe can use the financial muscle of the women’s-only pension fund to push a women’s empowerment agenda – particularly in the ownership and control of the economy – in the companiesin which the fund would invest.
Last week Serobe – who is also chairperson of the Presidential Working Group on Women (PWGW) – launched the Women’s Retirement Fund (WRF) which will have a strong bias towards women’s economic interests.
She said: “The fund has set itself a goal of becoming an economic personality in this country. We plan to use the financial muscle of the fund to influence corporate behaviour.
“The fund is going to push for the kind of shareholder activism that allows active participation in companies to bring about changes relating to the advancement of women.”
Under Molefe’s leadership, the PIC has been able to use its muscle to speed up the advancement of blacks in white-controlled companies.
The PIC has used its substantial holdings in big industrial companies such as petrochemicals group Sasol and the diversified industrial company, Barloworld, to bring about change.
After a barrage of public attacks by Molefe, both companies were left with no option but to embrace black empowerment.
Just like blacks, women are, by and large, still a marginalised group in the South African corporate sector. Companies that drag their feet on advancing women may find themselves in Serobe’s sights.
She plans to build WRF into the second-largest pension fund in the country after the Government Employees’ Pension Fund. Its R700 billion worth of assets is managed by the PIC.
Serobe says that WRF will promote shareholder activism that will result in:
Women getting into leadership positions to influence the implementation of policies that benefit them;
Women influencing funds to design products that address their needs;
Women pushing policies that protect them from HIV/Aids and sexual harassment; and
Networking opportunities for women to share business ideas.
Donald Molema, an independent actuarial consultant, said the fund was a step in the right direction since women were the poorest at retirement.
“The pool of funds that will emanate from the WRF should be invested in black communities and small businesses that are owned by black women,” Molema said.
The fund is the brainchild of the working group which works closely with the office of President Thabo Mbeki.
The group consists of women from business, labour organisations, non-governmental organisations and the South African Domestic Workers’ Union.
The WRF will create access and provide a safety net for women who are trapped in poverty because they do not have enough savings to rely on during retirement.
Research shows that about 33.3% of the trillion rand invested in retirement savings belongs to women, but less than 10% of retirement fund trustees are women. Trustees run pension and retirement funds.
“We have earmarked this space. The board of trustees of this fund will consist of women only,” said Serobe.
Due to the fact that there are fewer female trustees, women have no influence in the designing of products and how the pooled funds will be invested.
The new fund will address this by employing women in key positions such as portfolio managers, actuaries and consultants.
“Because there is a lack of these skills among women, the fund will also be a ground to groom this skills base,” Serobe said.
Research shows that women are likely to outlive men by seven years. However, this is not taken into consideration when insurance products are being designed.
The WRF will include the following benefits:
A temporary death and disability cover;
Cover for children who are not officially adopted;
Breast cancer and stroke cover; and
Flexible working hours to give women time to raise children.
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