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Welcome to Mind Matters 11 October 2021
Three important habits for mental health are:
- Sleep (good sleep)
- Social interaction (positive vibes)
- Exercise (enjoyable)
It is amazing what a good night's sleep can do for your mood and your productivity. Make sure you connect with others once a day. Take a break and go for a walk or exercise to release those feel good hormones, have some sunshine and get the blood flowing. The key to longevity is mobility!
If all of these habits do not work, seek help immediately as advised above. The sooner the better.
“For the greatest benefit of mankind" Alfred Nobel
Global news: Nobel Prize Winners
Maria Ressa: Nobel prize-winner risks life and liberty to hold Philippines government to account
The importance of journalists who take considerable risks to bring people the truth in countries where this involves going up against authoritarian governments has been recognised by the Nobel committee’s decision to award the 2021 peace prize to Maria Ressa of the Philippines and Dmitry Muratov of Russia.
A four minute read which makes one think about the message to governments who silent the voice of truth. I ask you, "Does this matter? " Read alongside the story of Dmitry Muratov below who is co winner with Maria Ressa.
Nobel peace prize: how Dmitry Muratov built Russia’s ‘bravest’ newspaper, Novaya Gazeta
In 1993, Soviet Union president Mikhail Gorbachev used part of his Nobel peace prize money to help set up the newspaper Novaya Gazeta, buying the publication its first computers.
Nearly 30 years later, the paper has another Nobel peace prize in its history. Dmitry Muratov, editor-in-chief of Novaya Gazeta, was jointly awarded the prize with Filipina journalist Maria Ressa, “for their efforts to safeguard freedom of expression, which is a precondition for democracy and lasting peace”.
A four minute read. It is not as straightforward as it would seem to keep investigative journalism alive. This read brings to light the treacherous waters one has to navigate to keep afloat.
Abdulrazak Gurnah: what you need to know about the Nobel prize-winning author
Abdulrazak Gurnah has been awarded the 2021 Nobel prize for literature. The Tanzanian novelist, who is based in the UK, was awarded the prize for his “uncompromising and compassionate penetration of the effects of colonialism and the fate of the refugee in the gulf between cultures and continents”.
Migration and cultural uprooting along with the cultural and ethnic diversity of east Africa are at the heart of Gurnah’s fiction. They have also shaped his personal life.
Another instance where the prize has gone to someone who brings the truth alive by retelling it. A four minute read.
The most influential climate science paper of all time
After the second world war, many of Japan’s smartest scientists found jobs in North American laboratories. Syukuro (Suki) Manabe, a 27-year-old physicist, was part of this brain drain. He was working on weather forecasting but left Japan in 1958 to join a new research project by the US Weather Service to develop a numerical model that could be used to study the climate.
A very interesting four minute article and one which raises the question: "Is this the mark that Climate Science needs to be considered real science? " It certainly has taken some time since the the paper in which Manabe modelled the links between temperature, altitude and CO2 levels was published in 1967. Looks like truth comes with competing interests.
Syukuro Manabe shares the Nobel Prize for Physics with Klaus Hasselmann and Giorgio Parisi.
Linking climate, weather and chaos
The work of the other winners of the 2021 Nobel Prize in Physics, Hasselman and Parisi, followed on the heels of Manabe’s early research and shows how large–scale interactions across the globe give rise to the chaotic and hard-to-predict behavior of the climate system on day-to-day time scales.
This four minute article provides a fuller picture of how it hangs together and the role each scientist has played in advancing our understanding of climate change and what we need to manage its risks.
Industry news: ASSA Convention & ASABA Conference
Standard Bank supports the development of the actuary profession in South Africa
Standard Bank has taken title sponsorship of one of the longest-standing events of the actuarial profession in South Africa: The Convention of the Actuarial Society of South Africa (ASSA) 2021. This year marks the 48th annual convention, which will take place virtually from 19-22 October.
In addition to sponsoring the Convention of the ASSA this year in a bid to support the growth and development of the profession, Standard Bank offers a graduate development programme for data, analytics and actuarial graduates. This programme aims to equip young and talented Africans with skills required in meeting the current and future demands of the world of work, given the proliferation of changes within the technology space and insurance landscape in the country.
The ASSA Convention is something you will be wanting to be a part of as soon as possible and this is great news for the society showing support for the profession.
“The time for change is now”
Changing times requires a new approach. As such, the annual conference of the Association of South African Black Actuarial Professionals (ASABA) to be held from 16:00 to 19:00 on the 2nd, 3rd and 4th of November will be hosted as a jam-packed virtual event.
“The prestigious gala dinner that concludes the conference on 4 November, however, will allow attendees to attend in person,” says Nabeelah Kolia, ASABA president for 2022/2023. (Kolia will be taking over the reins from the 2020 Insurance Apprentice finalist and 2020/2021 ASABA president, Memory Zimba.)
ASABA has grown from strength to strength in the past decade let's get behind it! A four minute read of the exciting programme wit keynote speaker Dr Sizwe Mpofu-Walsh of the youth current affairs show, the Sizwe Mpofu-Walsh Xperience (SMWX).
Industry news: Acquisitions
Sanlam deal to acquire ABSA Consultants & Actuaries concluded
It appears that the deal where Sanlam Life acquires ABSA Consultants and Actuaries (ACA Employee benefits) has finally gone through all of the regulatory approvals necessary to be concluded.
This is not an article. more like a notice ( one minute read) that the deal which was started in 2017 has finally been concluded. However it appears that the investment unit is also being purchased.
Sanlam deal may value Absa investment unit at R700m
‘It is a good deal for Sanlam in terms of the price paid, which is not excessive.’
Sanlam CEO Paul Hanratty said the deal was about the amalgamation of the asset management businesses of Sanlam and Absa.
This three and a half minute article goes into a high level explanation of the deal, but it really is a debatable acquisition which some of the quantitative analysts will enjoy discussing.
Short and long term insurance
Santam loses Supreme Court appeal against Covid-19 pandemic payouts
When it comes to business interruption insurance, short-term insurer Santam finds itself on the receiving end of the judicial system. Again.
A year ago short-term insurance company Santam determined that the courts needed to provide legal certainty on the vexed issue of business interruption insurance: were insurers liable in the case of a pandemic? Santam argued that this was crucial if its reinsurers were to honour its claims.
Legal certainty was provided by several courts, most specifically in November when the Western Cape High Court ruled in favour of Ma-Afrika Hotels and Stellenbosch Kitchen in its case against Santam.
Santam accepted this judgment and began to settle claims. What it did not accept, however, was the duration of the cover. The court ruled that cover should apply for 18 months, while Santam argued it was three months at best. It took this issue on appeal. And once again, Santam found itself on the receiving end of the legal system.
A four minute read showing. It appears that clarity is the greatest gain for Santam. This is specifically Contingent Business Interruption (CBI) please note.
Actuaries show that proposed 'two-bucket' retirement plan will improve outcomes
Actuary Natasha Huggett-Henchie, a member of the Retirement Matters Committee and Principal Consulting Actuary from NMG Consultants and Actuaries, says a recent analysis of fund administrator data shows that more than 80% of retirement fund members cash in their retirement benefits when changing jobs rather than preserving their savings. While all retirement funds are compelled to encourage preservation in terms of the retirement funds default regulations introduced by National Treasury in 2016, members are still allowed to take their full benefit in cash.
A five minute read with two scenarios demonstrating the impact of withdrawals.
Healthcare matters
Money for nothing and your pills for free
If you’re running a large workforce and the guy cleaning the entrance to the lift you ride to the top floor has nothing to fall back on when he’s sick, shame on you. Not every company can put the entire workforce on Discovery or Bonitas but in the edition of Podcasts from the Edge Peter Bruce talks to Dr Reinder Nauta, an entrepreneurial medical man who reckons he can get blue collar employees private sector primary care for under R100 a month, per employee. Is that really possible? Nauta has signed up some 3 000 South African GPs reckons he can get your lift entrance cleaner into the same doctors rooms as the CEO with little more than a WhatsApp exchange. Back of an envelope, he reckons the potential market for his product could be 20m people. Put another way, 20m fewer people wasting time standing in queues at public hospitals…. listen in.
The 27 minute podcast is available by clicking on the link or by accessing it below courtesy of Peter Bruce and Podcasts from the Edge.
Trade-offs on the road to Universal Health Coverage
Percept has been working with the Inclusive Society Institute on engaging health-sector stakeholders in deep discourse on South Africa’s path to Universal Health Coverage. This report is an attempt to ensure feasibility and sustainability, a fresh look at the approach to implementing universal healthcare, and an assessment as to how best to ensure the progressive realisation of the basic right to quality and affordable healthcare for all.
Please see the report below for your convenience but respect the copyright restrictions. The Executive Summary is a substantial 30 minute read, but essential if you're in health care.
An inconvenient truth: The real reason why Africa is not getting vaccinated (Part One)
As a consequence of neocolonial economic and social policies in Africa, fragile health systems affect communities’ access to health services in much of the continent. In this context, African civil society, the private sector and governments grapple daily with the complexity of vaccine hesitancy and work diligently to build vaccine confidence.
But it is more convenient for a fully vaccinated Bourla to glibly cite “hesitancy” as the reason for the low number of vaccinations in Africa than to engage with the ongoing supply crisis and the complexity of historical mistrust, exclusion and inequitable access.
Africa seems to be at the receiving end of double standards once again. An eight minute read.
Regulatory news: Namibia and SA
Namibia: Namfisa Slaps Industry With N$1,5 Million Penalties
Namfisa regulates pension funds, medical aid schemes, the stock exchange, unit trust entities, as well as long- and short-term insurance players.
According to the 2021 annual report, the industry still has unruly players breaching good corporate governance and actively engaging with directors with known conflicts of interest.
A three and a half minute read providing you with a quick overview of the value of the financial services sector in Namibia.
FSCA statement on universal life policies
The Financial Sector Conduct Authority (FSCA) has been alerted by the office of the Ombudsman for Long-term Insurance (OLTI), that there have been various complaints received over the last few months, relating to policies known as universal life policies.
The complaints include high premium increases, lack of suitable alternative policy cover options being provided, premiums being deducted from the savings portion of the policies without the permission of policyholders and policies becoming unaffordable, especially for the elderly policyholders after the guaranteed periods. In response, the FSCA has begun consultations with industry to develop solutions that are aimed at achieving fair customer outcomes, in addition to the existing policy interventions made in the past few years.
A three and a half minute read bringing you up to date with irregularities regarding universal life policies.
Investments: global equity, local equity and the JSE
'Growth versus value is a false dichotomy'
Artisan's Dan O’Keefe explains his approach to value investing, discusses his winners and losers, and argues that US stocks are not as expensive as they look.
" I view growth versus value as a false dichotomy. Growth is a characteristic of a business. Value is a judgement about what a business is worth. Our investment process is focused on understanding the intrinsic value of a business, and then buying at a discount to that value. In order to understand the value of a business, you need to consider all the financial characteristics holistically – and this obviously includes whether a business is growing or not."
Hear O'Keefe's explanation. It will build your understanding of these two elements and how they could be used to make investment decisions. A three and a half minute read.
‘Our bond yields are vulnerable, even from these elevated levels’
Aluwani’s Conrad Wood believes that the risk in the South African bond market has increased in recent months.
"A 6% pickup to invest in South African bonds relative to global risk-free is incredibly elevated,’ Wood said. ‘This reflects the risk of debt sustainability, fiscal sustainability and the ability to service our debt. To the extent that that is going to be with us for some time, it is going to be reflected in bond yields."
In this article Wood explains why our bond yields are vulnerable. You will enjoy the economic justification for his point of view not the reality of it. A five minute read.
The big shift on the JSE
The returns from local equity funds in the third quarter of 2021 tell an interesting story.
This article shows that a substantial shift that has taken place over the past year despite the 17% drop in Naspers shares. A good read of three minutes but please read the next article on bonds which tells us to watch out this bubble may not last!
‘No one has learnt anything from 2000 or 2008’: Why the Aylett Balanced fund is 20% in cash
Walter Aylett believes it is important to keep some powder dry.
He said Aylett & Co’s approach shared a lot with value contrarian investors, but the fund manager also was ‘eclectic’ and paid attention to pessimists.
‘I have seen several crises,’ Aylett told Citywire South Africa. ‘There is a lot of speculation, free money and debt around. It is just too easy. A lot of gambling is taking place. There is so much speculative behaviour, which is when things go wrong. No one has learnt anything from 2000 or 2008. So, I think we will see another crisis.’
A three and a half minute read and a lot to think about - we don't want another crisis now do we!
World Mental Health Day is 10 October
Pandemic creates a cycle of decline of physical activity and mental health, study suggests
Has your mental health suffered during the pandemic?
Exercise — known to help lift moods and counter symptoms of stress, depression and anxiety — could help.
But it can be hard to get moving.
A study in the journal Preventive Medicine Reports lays the blame not on laziness or lack of motivation, but on a cycle created and perpetuated by the pandemic.
A two minute read which confirms what we know to be true, possibly even from our own experience. Are you managing to get enough exercise? The research paper is available below thanks to ELSEVIER and Creative Commons licence.
11 October is International Day of the Girl Child: focus on teenage pregnancy
South Africa’s stance on teenage pregnancy needs a radical review: what it would look like
Much has been made recently in South Africa about the increase in teenage pregnancies in the past year, fuelled by the COVID-19 pandemic and lockdowns. Sensationalisation of such pregnancies isn’t new. Every couple of years newspaper headlines shout moral outrage at the rates of early reproduction.
The focus of discussions then usually turns to prevention. Solutions posed are mostly premised on the assumption that young women are responsible for their situation – through ignorance, fecklessness, rebellion, or lack of assertiveness.
We argue that a different approach is needed. Instead of asking, “How can teenage pregnancies be prevented?”, the following question should be posed: “How can reproductive injustices in relation to young women be reduced?”
Reproductive justice as a concept has gained significant ground in the last decade. The fundamental principles are that women and gender queer people with uteri have:
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the right not to have a child
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the right to have a child
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the right to parent children in safe and healthy environments.
Reproductive justice approaches are focused on how individual rights intersect with the socio-political or health contexts in which they are taken up.
So, what would this mean in the case of early reproduction in South Africa?
An eye opener on what justice means in this case. A four minute read, also available below.