1

In early 2010 Fairheads announced a broad strategic communication initiative in the Fairheads Times with the bold headline “Asikhulume!” (let’s talk). And that is what we did last year. We talked to our members, beneficiaries and guardians/caregivers. We sent them questionnaires, we held focus groups at guardian workshops, we held internal workshops, and we talked. We wanted to find out what members need from us, how they would like to get it and what they would like to hear.

This client-centric exercise was very useful and has already led to some major changes in our communi-cation. This article describes some of these. Elsewhere in this Fairheads Times, other projects are discussed, such as our call centre. We see this strategic communication process as ongoing. We now need to check in again with our members to see if we are doing things better and giving them what they asked for. What we do know is that the more we communicate, the more we learn and the better our service.

Member guideThe most recent outcome from the communication process has been a new member guide for our flagship Fairfund Umbrella Beneficiary Fund. See pages 4 and 5 for a glimpse at this 18-page booklet. It aims to answer, in plain language with the use of graphics, the most common questions that we get asked by our members and guardians/caregivers. Although written specifically for this fund, the information will be of use to members, beneficiaries and guardians/caregivers in other funds. It should also be of interest to employers, trustees and consultants as it provides a comprehensive A-Z of how beneficiary funds work. We would like to thank Anette van der Spuy of Nyani Communication who is advising us on member communications and who produced the guide.

We are launching the guide in May, sending it to current active members and guardians/caregivers of the Fairfund Umbrella Beneficiary Fund and all new members joining the beneficiary fund. It will also be distributed electronically via e-mail to trustees, principal officers, consultants and intermediaries. The brochure will be downloadable on our website and hard

copies available at all of our walk-in offices in Cape Town, Johannesburg, Sandton and Durban. We also plan to use the guide in educating the media, as a way of spreading awareness of the important role beneficiary funds play in our society.

Plain languageIn line with the requirements of PF130 and now the Consumer Protection Act, we are rewriting some of our member documentation as an ongoing project. To date we have vastly improved the format and content of documents such as the beneficiary statement and certificate of existence. Such documents are important and can get extraordinarily complex. It has been a challenge yet rewarding to distil the information, while retaining the necessary detail.

Digital strategyThe new Fairheads website has been well received. We are making the above member information accessible on the web as an initial project and longer-term we are working on a beneficiary/member portal for individual interaction to provide online access to

information, submission of requests and updating of information. As the world – and South Africa is no exception – moves towards online email, mobile internet and cellphone banking, we are looking to the future in this regard. Our new Facebook page is a start in making ourselves more accessible to our clients and other audiences (see page 9) .

One of the main outcomes from our focus groups at the guardian workshops held last year was the request to communicate via sms. Although we have used sms for some years now, we have increased the usage. We now sms receipt of all documents from guardians/caregivers and members if we have been provided with a cellphone number. Sms is used extensively to request relevant outstanding documents as well as to notify that certificates of existence have been posted and reminders to return them.

Guardian workshopsAfter a successful and rewarding run of regional guardian workshops in 2010, we plan to include more regions this year. We are planning workshops for

KEEP ON TALKING

Benefit Services (Pty) Ltd

May 2011 Issue 19 Authorised financial services provider

Southern Africa’s leading independent service provider of beneficiary funds and umbrella trusts

By Nikki Jacobs, Client Consulting Director

Continued on Page 2

What we do know is thatthe more we communicate,

the more we learn andthe better our service.

2

KwaZulu-Natal, Eastern Cape, Gauteng, Mpumalanga, Free State and North West, Limpopo, Lesotho, Mozambique, Swaziland and Western Cape. The workshops will be run over the months of September and October. The aim is to educate, inform and gather any outstanding information from the guardians/caregivers and members/beneficiaries. To spread the word we make use of local newspapers, community radio and information posters – and generally the “community grapevine” never lets us down.

Trustee roadshowsRegional trustee roadshows are also planned for July this year in Cape Town, Johannesburg and Durban where we will have a chance to interact with trustees and consultants and discuss industry issues.

So 2011 is filled with communication but we want to be effective in communicating. What is the point otherwise? So we will keep on talking and learning. There will always be room for improvement.

KEEP ON TALKING 1by Nikki Jacobs, Client Consulting Director

MESSAGE FROM THE CEO 3

NEW MEMBER GUIDE 4

THE CPA: TOUGH ON BENEFICIARY FUNDSERVICE PROVIDERS 6by Darlene Stoffels, Compliance Officer, andGiselle Gould, Business Development Director

MEMBERS BENEFIT FROM IMPROVED CALL CENTRE 8by Ivor Jennet, Call Centre Manager

JOIN US ON FACEBOOK 9by Alexis van Reenen, IT Administrator

WHO IS GLENDA VAN DYK? 10

WHO IS MANDISA HEMPE? 11

FAIRHEADS AND THE COMMUNITY 12by Nikki Jacobs and Mercia Nkonyana, CSI Co-ordinators

CONTENTS

The Fairheads Times is published as a service to our clients and other interested parties.

The information contained herein is for general guidance only. Any reader intending to base a decision on information contained in this publication

is advised to consult a director of Fairheads before proceeding.

CAPE TOWNTel +27 21 410 7500 | Fax +27 21 410 7994

E-mail benefitservices@fairheads.com

SANDTONTel +27 11 883 9755 | Fax +27 11 883 4791

E-mail nancy@fairheads.com

JOHANNESBURGTel +27 11 025 3451/2/3 | Fax +27 11 86 5464 511/054

E-mail davis@fairheads.com

DURBANTel +27 31 368 9260 | Fax +27 31 368 9270

E-mail andile@fairheads.com

Call centre0860 102 919 (share call)

www.fairheads.com

Continued from Page 1

• Fairheadsemploys16callcentreagentsandtwosenioragents who constantly coach and help the agents.

• Helpisofferedinall11officiallanguages.• Thecallcentreagentsare linkedtotheTriconadmini-

stration system and can enter into the individual profile of a member. They can answer most questions directly without having to put you through to an administrator.

• Thecallcentre isopenfrom8amto5pmMondaytoThursday and 8 am to 4h30 pm on Friday.

DID YOU KNOW?

3

In 2011 both Fairheads and our clients should feel the benefits of the strategic groundwork that has been laid over the past two years. I would like to briefly describe the main focus areas.

In the last Fairheads Times I wrote about the importance of an investment strategy for beneficiary funds. The work we have done in revising our investment policy statement and asset allocation model has been literally life-saving for some members.

Together with investment consultants we have developed an investment blending model which includes an annual reblend at member level depending on the member’s age, the amount of funds and the time horizon to termination. This model creates over 70 different permutations and combinations. It is effectively a life-stage model unique to beneficiary funds and umbrella trusts. Through our conservative yet creative approach we have continued to pay income and grow capital where possible to meet the needs of minor members by sticking to our investment strategy regardless of market movements.

In this issue of Fairheads Times Nikki Jacobs, Client Consulting Director and Fairheads communication champion, gives an update on communication. In line with PF130 and the CPA and together with a member communication expert we have reviewed all our communication as an ongoing project. Major documents have been rewritten in plain English and we have produced a comprehensive guide for members and guardians. This document, described elsewhere in this issue, should prove very helpful to clients and we believe it is a first for beneficiary funds.

In 2010 we held 26 workshops in Lesotho, Mozambique, KZN, Gauteng and the Eastern Cape. These were attended by more than 1 500 guardians. Beneficiary funds were explained and queries attended to face to face.

Administration systems and training have been another major focus area. The complete roll-out of our new administration system and new call centre technology have increased efficiencies and turn-around times. Elsewhere in this issue some pleasing call centre statistics are discussed.

Finally, a raft of new legislation, including the Consumer Protection Act, has kept our legal and compliance team busy. Read what our compliance officer has to say about the CPA in this issue.

Looking ahead, Fairheads will build on these and other areas of the business to continue providing the high levels of service that our clients, members and beneficiaries have come to expect. We thank you for your ongoing support.

Enjoy the read!

MESSAGE FROM THECEO

4

NEW MEMBER GUIDE

5

Published here are two spreads from the 18-page Fairfund new member guide.

6

In the beneficiary fund industry this was no different. Indeed it has to be asked whether the CPA is regulation overkill. The industry is highly regulated as it is, with amendments made to the Pension Funds Act in 2009 specifically to protect “widows and orphans” following the Fidentia scandal. Furthermore, parts of the CPA overlap with the FAIS Act, the POPI Bill, Regulation 28 and PF Circular 130. It has fallen to compliance officers to make sense of this overlap and create detailed comparisons and risk analyses along with implementation recommendations to management.

The CPA, like FAIS, focuses on regulating the function rather than the institution. The Act must be read in conjunction with other laws that regulate the financial services industry. Where there is a conflict of laws, the law that offers the most protection to the client will override the other statutes.

Is it all too much? It may appear so, but the answer has to be no. This is because the beneficiary fund industry serves one of society’s most vulnerable sectors, minor dependants, many of whom have lost both parents and are cared for by guardians. Part of the purpose of the CPA is to reduce obstacles in accessing any supply of goods or services to clients:

• whoarelowincomeearnersinlowincomecommunities• wholiveinremoteareas• whoareminors,seniorsorothervulnerableconsumers• whohavelowliteracyandnumeracylevels.

This consumer profile closely matches the typical beneficiary fund member, most of whom live in rural areas. An informal survey by Fairheads last year into financial literacy among guardians in rural areas revealed that an average of 50% are unable to complete forms in their mother tongue and 90% do not know basic financial literacy concepts such as the difference between capital and interest.

This is why a client communication strategy and policy are so essential. PF 130 already requires service providers to have such a strategy and the CPA will make sure that it happens. The CPA will further ensure that there is ongoing monitoring of client communication and, in the process, ensure that client education takes place. In this way, beneficiary fund service providers have an important social role to fulfil in helping lift levels of financial literacy in South Africa.

THE CPA:TOUGH ON BENEFICIARY FUND

SERVICE PROVIDERS

The Consumer Protection Act (CPA) had compliance officers working overtime. The Act became effective on 1 April 2011.

By Darlene Stoffels, Compliance Officer, andGiselle Gould, Business Development Director

7

So what should providers be doing? At a minimum, client communication must comply with plain language requirements as per the CPA and FAIS. Graphics can be used to enhance understanding. Call centres should offer as many languages as possible. Face-to-face contact in the clients’ home language should be facilitated through walk-in offices or guardian workshops. Communication media should be adapted to clients’ convenience, such as sms and radio. Strategies should be forward-looking, to incorporate growing future trends such as web-enabled mobile communications. All client communication should contain the contact details of the CPA regulator which means that clients now not only have recourse to the Pensions Funds Adjudicator but also to the National Consumer Commission.

In conclusion, as regards beneficiary fund member communication, the CPA is a good thing as it reinforces the requirements of PF130. Stronger communication efforts will not go unnoticed by the industry and incentives such as Imbasa Yegolide awards and the IRF communication challenge go a long way to ensuring healthy competition.

Fairheads has recently expanded its legal and compliance team. Pictured here from left to right: DarleneVanDiemanStoffels;RasheedaToffey;PrudenceZitshu;OdilePearce;JoyLaVita;RomeHogan

8

This busy period runs from December each year till around April when members, beneficiaries and guardians/caregivers need the most help with the payment of tuition fees and other ad hoc capital requests such as for uniforms and books.

Call volumes to the call centre have decreased compared to previous years. This is good news as it means that members, beneficiaries and guardian/caregivers are generally more empowered and do not need to ask as many questions as before, such as when beneficiary funds were first introduced. This also reflects a huge improvement in turnaround times by the administration teams who work behind the scenes. Better turnaround times mean that members, beneficiaries and guardians/caregivers do not need to call and follow up progress on their requests. This service delivery improvement is the result of various initiatives that Fairheads implemented over the past year in the lead-up to the peak period.

Please hold on, please be patientAnother service record was broken over the peak period, relating to the time it takes to answer incoming calls. Over the eight months to March 2011, it took two to five seconds on average for agents to answer incoming calls. The call centre industry average is 30 seconds (which is hard to believe given the waiting time people often have to suffer).

Our members, beneficiaries and guardians/caregivers often have limited airtime, so the least we can do is answer their calls promptly. If all the agents are busy, the call is routed to a message option. We call back on the same day if a message is left before 3 pm. If a message is left after 3 pm, we call back before 8 am the next day.

AnalyticsThe power of the new call centre technology lies also in the way it allows Fairheads to analyse trends and use this information to see where we need to focus our attention or improve service if necessary. For example, over the year to end-February 2011 it was revealed for the Fairfund Umbrella Beneficiary Fund and the Fairfund Umbrella Trust that on average 50% of calls related to ad hoc requests (eg for school fees, uniform or transport) and the other 50% related to queries on monthly income and termination procedures.

ThanksThe call centre has come a long way since it was established in January 2008. Our general success rate (calls answered versus those received and within 20 seconds) has improved steadily over the years, from 51% at the beginning to 96% in January 2011. The team has worked hard to achieve these wonderful results and I congratulate them on their dedication to ongoing good service.

MEMBERS BENEFITFROM IMPROVED CALL CENTRE

Fairheads’ investment in state-of-the-art call centre technology in July last year has already started to benefit members, beneficiaries and guardians/caregivers, with the call centre team setting some new service records over the peak administration period.

By Ivor Jennet, Call Centre Manager

9

Well, it’s time to change our thinking. Facebook is also a powerful business tool.

With so many people visiting one website, it was inevitable that businesses jumped in with profiles or pages of their own. There was potential to reach millions of customers.

Fairheads joined the Facebook family in October last year when we started our “Official Facebook Page”. We’re hoping that this marketing tool will be useful to our clients. They can post their comments or give us feedback regarding our service. Or just see that there’s a lot more to our company. So far we have about a hundred “likes” which means these users are following our page and getting our updates as we create them.

We’ve had interaction with a few of our beneficiaries too. I work in conjunction with our Compliance Department to provide answers to them, usually on the same day. It’s been a great tool and I hope that by adding our Facebook button to outgoing emails we will attract loads more “likes”.

See you there!

JOIN US ONFACEBOOK!

We all used to think Facebook was for kids. Then it became a social tool for friends and family to share photos, thoughts and anything else that the huge Facebook network allowed.

By Alexis van Reenen, IT Administrator

10

WHO ISGLENDA VAN DYK?

How did you get to this position?I joined Fairheads 14 years ago and was immediately struck by the service ethic and commitment of the staff. No-one just packed up at 5 pm! I knew it was where I wanted to work. I started off in various administration departments before dealing with walk-in clients and then I was promoted to team leader of the call centre in 2008 when it was started. I have the benefit of knowing the business really well from my previous experience in Fairheads administration.

What does the job involve?I have 19 people reporting to me, namely 16 agents, two senior agents and a quality assessor. I see my main task as instilling in our team the need for empathy and product knowledge. Where agents need to learn, I send them to the administration departments to update their knowledge on procedures. We deal with real life situations where people call in, sometimes desperate for funds that they need urgently for whatever reason. It is our task to handle the calls with care, honesty and friendliness as our clients depend on us. Occasionally emotions run raw and I need to help keep our staff motivated.

What do you enjoy most?Undoubtedly the satisfaction of knowing that I have helped an agent to be able to deal with an angry client. Through the right tone of voice and careful instruction that client can end the call on a happy note. My message to all guardians and beneficiaries is: Please call us, we are here to help you.

What challenges lie ahead?The new RICA process will definitely be a challenge as we may lose contact with some beneficiaries and guardians who fail either to RICA their cellphone numbers or fail to notify us of changes to their contact details. We aim to maintain our current service levels and introduce further improvements.

Life after work?Being married with two daughters keeps me very busy. I relax by listening to music and reading a good book.

Team Leader, Fairheads Call Centre

11

WHO ISMANDISA HEMPE?

What is your background?I joined Fairheads in 2008 when the call centre had just opened. I remember that we started off without proper headsets! The call centre has certainly moved on since then. I came from Vodacom where I had worked in their call centre for over two years. Before that I built up call centre experience at Eskom, Telkom and Medscheme. So I suppose with 10 years’ experience I was able to contribute ideas and suggestions to help the growth of the Fairheads call centre. After six months I was appointed as a senior agent to deal with the more complicated calls and after a further six months I was appointed as quality assessor.

What is your role?I am sure you all have heard that recorded greeting when you contact a call centre. It goes something like this: “Your call may be recorded for quality purposes”. If you have ever wondered what that means, it describes my job! My sole focus is to concentrate on the quality of the service given by the Fairheads call centre agents. To do this, I listen to a sample of the

recorded calls daily and rate them out of 100 in terms of eight criteria (such as was the client’s query solved? professionalism, information given etc). Our set target is 95%. If an agent averages less than 95% over a month I will monitor his or her calls more closely and send a report to the team leader with my recommendations for improvement. This might be a need to improve interpersonal “soft” skills or to improve product knowledge.

What do you enjoy most?I love the feedback sessions on a Friday. I get the agents to listen in to their own calls and identify their own mistakes. This playback actually shows a screen shot which means you can see what the agent was doing at the time of the call. The agents take constructive criticism very well and are keen to improve service delivery and upskill in the areas identified.

What do you do in your free time?I spend quality time with my six-year-old daughter, friends and family.

Quality Assessor, Fairheads Call Centre

12

Fairheads staff are voluntarily involved in numerous local community initiatives. Some 2010 highlights are described below. This shows that for many of us the concept of care and responsibility goes beyond the workplace. We aim for several staff initiatives annually and strive to make a difference in the lives of the few individuals we manage to reach.

Towards the end of 2010, our team of staff volunteers was not yet done giving and we once again embarked on a XMAS Shoebox Campaign. The team donated money and gift wrapped boxes, which we filled with special gifts and delivered to several children’s homes. The children and their caregivers were delighted with these gifts and we once again successfully brought good cheer and love to those less fortunate than we are.

In June/July 2010, our Winter Blanket Campaign warmed children at several homes, the aged and young and old residents of local shelters. Our gifts of kindness were received with great appreciation and each delivery trip grew more heart-warming and rewarding.

Support services team buildOursupportservicesteamdecidedthatfortheirteambuildingtheywouldspendtimewiththeorphansatHeaven’sNestChildcareandRecreationCentrein Ottery, Cape Town. The time they spent was rewarding and brought a sense of fulfilment to the team and great joy to the children.

In the hope of making life a little easier at Christmas time for two of our beneficiaries, our Johannesburg team managed to collect R850 and bought groceries, which they delivered to the home of the beneficiaries aged 17 and 14 years in Alexandria. Both their parents are deceased.

Fairheads’ flagship social responsibility initiative is the Clanwilliam Arts Project which we have supported for over 10 years. Since 2005 up to 60 Fairheads staff members have taken a bus up to Clanwilliam in September each year to show their support for this award-winning project.

FAIRHEADS AND THECOMMUNITY

By Nikki Jacobs and Mercia Nkonyana, CSI Co-ordinators