Characteristics of the South African retirement fund industry
Using administrative data, we examine three characteristics of the South African retirement fund industry–funding stability, risk sharing and efficiency–over the period 1996-2018. We find that there have been significant decreases in assets per member for private funds, pension funds and retirement annuities, which could reflect decreasing funding ratios in the retirement fund system. The retirement […]
Diversification measures and the optimal number of Stocks in a portfolio: An information theoretic explanation
This paper provides a plausible explanation for why the optimum number of stocks in a portfolio is elusive, and suggests a way to determine this optimal number. Diversification is dependent on the number of stocks in a portfolio and the correlation structure. Adding stocks to a portfolio increases the level of diversification, and consequently leads […]
Stokvels as an instrument and channel to extend credit to poor households in South Africa: An inquiry
Policy Paper 19 A stokvel can in general terms be defined as an umbrella term used to describe informal savings organisations in the African community in South Africa. Stokvels operate mainly in black areas, and have social, economic and entertainment functions (Verhoef, 2002). The aim of the paper is to rationalise the possible use of […]
State pension payouts boost migrant job prospects for household members
Large cash transfers to elderly South Africans, in the form of government pensions, boost the job prospects of working-age members of their households. In particular, men and women between the ages of 18 and 50, who live in a household with a pensioner, are more likely to become migrant workers than those living in households […]
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