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UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND REGISTRATION NUMBER 12 ...20111260747

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UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND REGISTRATION NUMBER 12 ...20111260747 Powered By Docstoc
					UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
REGISTRATION NUMBER 12/8/31608/1

ANNUAL FINANCIAL STATEMENTS
FOR THE REPORTING PERIOD ENDED 31 DECEMBER 2005
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND

ANNUAL FINANCIAL STATEMENTS

For the reporting period ended 31 December 2005



Financial Services Board registration number:             12/8/31608/1

South African Revenue Services approval number:           18/20/4/36261




   SCHEDULE                                 CONTENTS                                PAGE
       A           Regulatory Information                                             3
        B          Statement of Responsibility by the Board of Trustees              8
        C          Statement of Responsibility by the Principal Officer              10
        D          Report of the Independent Auditors                                11
        E          Report of the Board of Trustees                                   12
        F          Statement of Net Assets and Funds                                 16
        G          Statement of Changes in Net Assets and Funds                      17
       HA          Notes to the Annual Financial Statements                          18
        HB         Report of the Valuator                                            30
         I         Report of the Independent Auditors to the Registrar of Pension    32
                   Funds on Factual Findings
        IA         Schedule pertaining to Annual Financial Statements                37
        IB         Assets held in Compliance with Regulation 28 and Assurance        46
                   Report of the Independent Auditors to the Registrar of Pension
                   Funds




                                                  2
SCHEDULE A
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Regulatory Information
For the period ended 31 December 2005


Registered office of the fund
Postal address:                                         Physical address:
P O Box 652071                                          10 Torsvale Crescent
Benmore                                                 Torsvale Park
2010                                                    La Lucia Ridge Office Estate
South Africa                                            La Lucia
                                                        KwaZulu-Natal
                                                        4051
                                                        South Africa


Financial reporting periods
Current period:                                         01/01/2005 to 31/12/2005
Previous period:                                        01/01/2004 to 31/12/2004


Board of trustees                       Capacity        Date appointed        Date resigned
Employer appointed trustees
  R H Clarkson
  T Jones
  S D Maharaj
  C Mitchell                            Alternate       21 November 2005
  M Murray                              Alternate       21 November 2005
  R Palmer                                                                    21 November 2005
  I A S Vally

Member elected trustees
  R de Kadt
  S Higgins-Opitz                       Alternate       01 May 2005
  K Hodnett
  J D Krige
  R Suchipersadh                        Alternate       01 May 2005
  J Swart                               Chairperson
  T Tenza                               Alternate                             30 April 2005
  P M van Uytrecht




                                                    3
SCHEDULE A
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Regulatory Information
For the period ended 31 December 2005

Fund officers


Principal officer
Name:                J D Krige

Postal address:                                  Physical address:
University of KwaZulu-Natal                      University of KwaZulu-Natal Retirement
Durban                                           Fund
KwaZulu-Natal                                    c/o School of Mathematics
4041                                             University of KwaZulu-Natal
South Africa                                     Westville
                                                 KwaZulu-Natal
                                                 4041
                                                 South Africa

Telephone number:       +27 (0)31 260 1036
Email address:          krige@ukzn.ac.za
Date appointed:         01 January 1995


Monitoring person
Name:             J D Krige

Postal address:                                  Physical address:
University of KwaZulu-Natal                      University of KwaZulu-Natal Retirement
Durban                                           Fund
KwaZulu-Natal                                    c/o School of Mathematics
4041                                             University of KwaZulu-Natal
South Africa                                     Westville
                                                 KwaZulu-Natal
                                                 4041
                                                 South Africa

Telephone number:       +27 (0)31 260 1036
Email address:          krige@ukzn.ac.za
Date appointed:         01 January 1995




                                             4
SCHEDULE A
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Regulatory Information
For the period ended 31 December 2005

Professional service providers


Valuator
Name:                 M Hayler
Qualifications:       BSc (Hons), FIA
Organisation:         Alexander Forbes Financial Services (a division of Alexander Forbes Group
                      (Proprietary) Limited)

Postal address:                                             Physical address:
P O Box 782                                                 10 Torsvale Crescent
Umhlanga Rocks                                              Torsvale Park
KwaZulu-Natal                                               La Lucia Ridge Office Estate
4320                                                        La Lucia
South Africa                                                KwaZulu-Natal
                                                            4051
                                                            South Africa
Telephone number:        +27 (0)31 573 8000

Auditors
Full name:            Deloitte & Touche
Qualifications:       Chartered Accountants (SA)
                      Registered Accountants and Auditors

Postal address:                                             Physical address:
Private Bag X6                                              Deloitte Place
Gallo Manor                                                 The Woodlands
2052                                                        20 Woodlands Drive
South Africa                                                Woodmead
                                                            Sandton
                                                            2196
                                                            South Africa

Telephone number:        +27 (0)11 806 5000


Benefit administrators
Full name:             Alexander Forbes Financial Services (a division of Alexander Forbes Group
                       (Proprietary) Limited)
Section 13B registration number:         24/65

Postal address:                                             Physical address:
P O Box 782                                                 10 Torsvale Crescent
Umhlanga Rocks                                              Torsvale Park
4320                                                        La Lucia Ridge Office Estate
KwaZulu-Natal                                               La Lucia
South Africa                                                KwaZulu-Natal
                                                            4051
                                                            South Africa

Telephone number:        +27 (0)31 573 8000



                                                   5
SCHEDULE A
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Regulatory Information
For the period ended 31 December 2005



Fund consultants
Name:                Alexander Forbes Financial Services (a division of Alexander Forbes Group
                     (Proprietary) Limited)
FAIS registration number:              1177

Postal address:                                           Physical address:
P O Box 782                                               10 Torsvale Crescent
Umhlanga Rocks                                            Torsvale Park
KwaZulu-Natal                                             La Lucia Ridge Office Estate
4320                                                      La Lucia
South Africa                                              KwaZulu-Natal
                                                          4051
                                                          South Africa

Telephone number:        +27 (0)31 573 8000


Investment administrators
Full name:             Allan Gray Limited
Section 13B registration number:        24/69

Postal address:                                           Physical address:
P O Box 51318                                             Granger Bay Court
V&A Waterfront                                            Beach Road
Cape Town                                                 V&A Waterfront
8020                                                      Cape Town
South Africa                                              8001
                                                          South Africa

Telephone number:        +27 (0)21 415 2300


Full name:             Investec Asset Management (Proprietary) Limited
Section 13B registration number:        24/61

Postal address:                                           Physical address:
P O Box 1655                                              5th Floor
Cape Town                                                 Norwich on St George's
8000                                                      5 St. George's Mall
South Africa                                              Cape Town
                                                          8001
                                                          South Africa

Telephone number:        +27 (0)21 416 2000




                                                   6
SCHEDULE A
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Regulatory Information
For the period ended 31 December 2005

Full name:             Investment Solutions Limited
Section 13B registration number:        24/217

Postal address:                                              Physical address:
P O Box 786055                                               Investment Solutions Office Park
Sandton                                                      63 Wierda Road East
2146                                                         Wierda Valley
South Africa                                                 Sandown
                                                             2196
                                                             South Africa

Telephone number:         +27 (0)11 505 6000

Participating employer
The following employer participates in the fund in terms of the rules of the fund:

University of KwaZulu-Natal and Associated Employers




                                                      7
SCHEDULE B
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Responsibility by the Board of Trustees
For the period ended 31 December 2005


Responsibilities
The board of trustees hereby certify to the best of their knowledge and belief that, during the period under
review, in execution of their duties they:
• ensured that proper registers, books and records of the operations of the fund were kept, inclusive of
    proper minutes of all resolutions passed by the board of trustees;
•   ensured that proper internal control systems were employed by or on behalf of the fund;
•   ensured that adequate and appropriate information was communicated to the members of the fund,
    informing them of their rights, benefits and duties in terms of the rules of the fund;
•   took all reasonable steps to ensure that contributions were paid timeously to the fund or reported
    where necessary in accordance with Section 13A and Regulation 33 of the Pension Funds Act in South
    Africa;
•   obtained expert advice on matters where they lacked sufficient expertise;
•   ensured that the rules, operation and administration of the fund complied with the Pension Funds Act,
    the Financial Institutions (Protection of Funds) Act, and all other applicable laws in South Africa;
•   ensured that fidelity cover deemed adequate and in compliance with the rules of the fund was
    maintained; and
•   ensured that investments of the fund were implemented and maintained in accordance with the fund's
    investment strategy.

Approval of the annual financial statements
The annual financial statements of the University of Kwazulu-Natal Retirement Fund are the responsibility
of the board of trustees. The board of trustees fulfils this responsibility by ensuring the implementation
and maintenance of accounting systems and practices adequately supported by internal controls. These
controls, which are implemented and executed by the fund and/or its benefit administrators, provide
reasonable assurance that:
•   the fund's assets are safeguarded;
•   transactions are properly authorised and executed; and
• the financial records are reliable.
The annual financial statements set out on pages 12 to Error! Bookmark not defined. have been
prepared for regulatory purposes in accordance with:
•   the basis of accounting applicable to retirement funds in South Africa as indicated in the principal
    accounting policies contained in the notes to the financial statements on pages 18 – 20.
•   the financial rules of the fund; and
• the provisions of the Pension Funds Act in South Africa.
These financial statements have been reported on by the independent auditors, who were given
unrestricted access to all financial records and related data, including minutes of all relevant meetings. The
board of trustees believes that all representations made to the independent auditors during their audit were
valid and appropriate. The report of the independent auditors is presented on page 11.




                                                      8
SCHEDULE B
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Responsibility by the Board of Trustees
For the period ended 31 December 2005

These financial statements:
•   were approved by the board of trustees on 31 December 2005;
•   are certified by them to the best of their knowledge and belief to be correct;
•   fairly represent the net assets of the fund at 31 December 2005 as well as the results of its activities for
    the period then ended; and
•   are signed on behalf of the board of trustees by:




_________________________________
J Swart
Chairperson

Pietermaritzburg




_________________________________
R H Clarkson
Board Member

Durban




_________________________________
S D Maharaj
Board Member

Durban




                                                        9
SCHEDULE C
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Responsibility by the Principal Officer
For the period ended 31 December 2005

I confirm that for the period under review the University of Kwazulu-Natal Retirement Fund has lodged
with the Registrar of Pension Funds all such returns, statements, documents and any other information
required in terms of the Pension Funds Act in South Africa.




_________________________________
J D Krige
Principal Officer

Durban




                                                  10
SCHEDULE D
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Trustees of University of Kwazulu-Natal Retirement
Fund
For the period ended 31 December 2005

We have audited the financial statements of the University of Kwazulu-Natal Retirement Fund set out on
pages 122 to Error! Bookmark not defined.9 for the period ended 31 December 2005. These financial
statements are the responsibility of the board of trustees. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those Standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in these financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by the trustees, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The financial statements are prepared for regulatory purposes on the basis of accounting applicable to
retirement funds in South Africa as indicated in the principal accounting policies contained in the notes to
the financial statements on pages 18 – 20.
In our opinion, these financial statements present fairly, in all material respects, the net assets of the fund
at 31 December 2005 and the results of its activities for the period then ended in accordance with the basis
of accounting applicable to retirement funds in South Africa, the financial rules of the fund and the
requirements of the Pension Funds Act in South Africa.




_________________________________
Deloitte & Touche
Per: D Munu
Partner

Johannesburg




                                                       11
SCHEDULE E
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Board of Trustees
For the period ended 31 December 2005


1. Description of the fund

Type of fund
In terms of Section 1 of the Income Tax Act, 1962 the fund is classified as a provident fund. The fund is a
defined contribution fund.

Benefits

Fund benefits
The fund provides retirement and other benefits for employees and former employees of the employer,
and benefits in the event of their death.

Unclaimed Benefits
If a benefit due under the fund is not claimed within one year from the date on which it became due for
payment, it will remain in a separate account against the name of the beneficiary until claimed or dispensed
with in terms of prevailing legislation.

Contributions

Members' contributions
Members do not contribute to the Fund.

Employers' contributions
The participating employer contributes a total of 22,5% of members' fund salaries of which a minimum of
17,5% is applied to members' retirement funding benefits, the balance of 5% being available to finance risk
benefits and administration expenses. Any portion of this balance not required for these purposes is
applied to members' retirement funding benefits.

Rule amendments
Rule amendment Date of board of      Effective date               Date registered by    Date approved by
no.             trustees' resolution                              the Financial         South African
                                                                  Services Board        Revenue Services
Rule amendment 2      08/06/2005            01/06/2005            11/07/2005            19/08/2005

Description and motivation of rule amendments

Rule amendment 2
Provided for the appointment of an employer trustee on a rotational basis and for the term for all trustees
to be extended from 2 years to 3 years.
Only the significant rule amendments have been disclosed above. All rule amendments are available for
inspection at the registered office of the fund.




                                                     12
SCHEDULE E
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Board of Trustees
For the period ended 31 December 2005

Reserves

Reserve Account
At 31 December 2005, an Unallocated Surplus Reserve Account existed in terms of the rules of the fund.
The amount, if any, standing to the credit of this reserve account, less any costs and expenses specifically
arising as a result of the fund's compliance with the Pension Funds Second Amendment Act, Act No. 39
of 2001, was subject to apportionment in terms of Section 15B of the Act.
The reserve account has had a zero balance since 31 December 2003 and, subsequent to year end, has
been removed by a change to the rules of the fund.
2. Investments

Investment strategy
The investment strategy of the fund is set by the board of trustees after taking due consideration of the
advice of the fund's investment and other professional advisors. The investments are managed according
to the following principles:

General principles
The general investment principles of the fund, in operation at the reporting date, are to achieve a real long
term investment return to provide a substantial contribution to the retirement funding of members and to
limit the risk of capital depreciation through a diversified investment portfolio (see annexure A). The
investment principles are conducted through direct and indirect investments in collective schemes and
insurance policies.
For the year ended 31 December 2005 the trustees adopted the following policy:
- 50% of net contributions to Allan Gray asset Management and
- 50% of net contributions to Investec Asset Management (Proprietary) Limited

Unclaimed benefits
These are invested with Investment Solutions Limited in their Banker portfolio.

Management of investments
It is the fund's policy to mandate investment administrators to manage the fund's investments in
accordance with the fund's investment strategy. Investment administrators are granted complete discretion
as to the management and composition of the investment portfolios subject to their mandate and the
limitations imposed by the Pension Fund Act in South Africa. Investment administrators are selected on
their performance, sector or specialist knowledge, professional competence and ability to deliver on the
fund's investment strategy. Investment administrators are remunerated on a basis of fee payments which
are deducted from income earned.
The board of trustees meets regularly to (i) discuss and if necessary review the investment strategy, (ii)
discuss and if necessary review the investment management policy, and (iii) monitor the asset allocation
and performance of the investment administrators against the investment strategy of the fund.




                                                      13
SCHEDULE E
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Board of Trustees
For the period ended 31 December 2005



The fair value of the fund's investments, administered by the investment administrators at the end of the
period is:
                                                                 Current period        Previous period
                                                                       R                      R
Allan Gray Investment Managers                                        458 110 527            320 501 490
Investment Solutions Limited                                           43 024 062             48 711 733
Investec Asset Management (Proprietary) Limited                       441 766 871            335 577 901
Total investments managed by investment administrators                942 901 460            704 791 124

3. Membership

Active members
At beginning of period                                                                              2 442
Additions                                                                                             133
Less:
Withdrawals                                                                                            72
Deaths                                                                                                  9
Retirements                                                                                            20
Adjustments                                                                                            52
At end of period                                                                                    2 422

Adjustments
Late withdrawals 26
Late retirements 25
Late death 1

Unclaimed benefits
At beginning of period                                                                                205
Less:
Settled in full                                                                                         1
At end of period                                                                                      204


4. Actuarial valuation

In terms of regulations under the Pension Funds Act in South Africa, the Registrar has withdrawn any
existing valuation exemption. These funds are now required to submit an actuarial valuation at the end of
the reporting period following 7 December 2003. The surplus apportionment date of the fund has been
set as at 31 December 2003.




                                                    14
SCHEDULE E
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Board of Trustees
For the period ended 31 December 2005




5. Surplus apportionment

Nil surplus
The surplus apportionment date of the fund is 31 December 2003. The trustees, in consultation with the
valuator, have determined that there is no surplus to be apportioned. The nil return was submitted to the
Registrar on 26 May 2005. The Registrar accepted the nil return on 09 February 2006.

6. Housing loan facilities

Housing loan guarantees
The fund has granted housing loan guarantees in terms of rule 13.3.2 of the fund and Section 19(5) of the
Pension Fund Act in South Africa for the defined contribution members of the fund. Each loan is secured
by the withdrawal benefit of the respective member.

7. Investments in participating employer
The fund holds no investments in the participating employer.

8. Subsequent events
Since the end of the period the following significant events have occurred.

Settlement offer for inappropriate disclosure of fees
The fund administrator, Alexander Forbes, performs the practice of bulking of the fund current accounts,
which improves the interest rates which are paid to funds on the balances in their current accounts. The
fees paid to the administrator by the banks was historically not properly disclosed. The administrator
ceased to earn income for this practice in September 2004. Announcements have been made by Alexander
Forbes that settlement amounts will be paid to the affected funds, to compensate each fund for the non-
disclosure of fees.
A settlement offer of R1 930 709 has been made to the Fund. The offer is currently under consideration
by the trustees.

Closure of the Unallocated Surplus Reserve Account
The unallocated surplus Reserve Account maintained by the fund has been closed by means of a rule
change which, subsequent to year end, has been duly registered with the relevant authorities.




                                                     15
SCHEDULE F
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Net Assets and Funds
At 31 December 2005


                                    Notes     Current period     Previous period
                                                    R                  R

ASSETS

Non current assets
Investments                              1         942 901 460         704 791 124
                                                   942 901 460         704 791 124
Current assets
Accounts receivable                      3             139 285             297 351
Contributions receivable                 4           6 609 480           6 139 191
Cash at bank                                        13 505 043           5 194 091
                                                    20 253 808          11 630 633
Total assets                                       963 155 268         716 421 757


FUNDS AND LIABILITIES

Members' funds
Members' individual accounts                       900 144 839         682 247 633
Amounts to be allocated                  11          4 964 267                   0
                                                   905 109 106         682 247 633

Total funds and reserves                           905 109 106         682 247 633

Non-current liabilities
Unclaimed benefits                       5           2 114 967           1 988 856
                                                     2 114 967           1 988 856
Current liabilities
Retirement fund taxation                 6             256 617             256 988
Benefits payable                         7          55 538 120          31 790 060
Accounts payable                         8             136 458             138 220
                                                    55 931 195          32 185 268
Total funds and liabilities                        963 155 268         716 421 757




                                    16
SCHEDULE G
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Changes in Net Assets and Funds
For the reporting period ended 31 December 2005

                                                    Notes    Members'          Members' surplus Reserve accounts   Current period      Previous period
                                                             individual           account
                                                            accounts and
                                                            amounts to be
                                                              allocated
                                                                  R                   R                R                 R                   R

Contributions received and accrued                    4          79 686 663                   0                0         79 686 663          75 730 153
Net investment income                                 9         228 458 009                   0                0        228 458 009         125 598 100
Net income before expenses                                      308 144 672                   0                0        308 144 672         201 328 253
Less:
  Administration expenses                            10            1 333 850                  0                0          1 333 850           1 252 235
  Retirement fund taxation                           6             3 495 892                  0                0          3 495 892           2 986 145
Net income before transfers and benefits                         303 314 930                  0                0        303 314 930         197 089 873

Transfers and benefits
Transfers from other funds                                                 0                  0                0                   0             274 024
Benefits                                              7         (79 805 721)                  0                0        (79 805 721)        (45 523 627)
Net income before funds and reserves                            223 509 209                   0                0        223 509 209          151 840 270

Funds and reserves
Balance at beginning of period                                  682 247 633                   0                0        682 247 633         530 407 363
Net income before net investment return allocated               905 756 842                   0                0        905 756 842         682 247 633

Net investment return allocated
   Benefits payable current members                   7            (490 058)                  0                0          (490 058)                   0
   Unclaimed benefits                                 5            (157 678)                  0                0          (157 678)                   0
Balance at end of period                                         905 109 106                  0                0        905 109 106         682 247 633




                                                                 17
SCHEDULE G
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Changes in Net Assets and Funds
For the reporting period ended 31 December 2005


Basis of preparation
The financial statements are prepared for regulatory purposes in accordance with the Regulations of the
Pension Funds Act in South Africa. The regulations require that the basis of accounting comprise
Generally Accepted Accounting Practice, as applied to retirement funds in South Africa, except for the
following requirements:
•   disclosure of cash flow information;
•   disclosure of prior year adjustments;
•   presentation of consolidated financial statements in which investments in subsidiaries are
    consolidated in accordance with the standard on consolidated and separate financial statements.
The financial statements are prepared and presented on the going concern, accrual, historical cost and fair
value basis. The financial statements are measured and presented in the functional currency.

Principal accounting policies
The following are the principal accounting policies adopted and applied consistently for similar
transactions, other events and circumstances for the reporting period, and are consistent in all material
respects with those applied to the previous period by the fund.

Investments

Investments in financial instruments
A financial instrument is any contract that gives rise to both a financial asset of one entity and a financial
liability or equity instrument of another entity. A financial asset or a financial liability is recognised when
its contractual arrangements becomes binding.
Investments in financial instruments are classified and measured as follows:
Investment                                  Classification                                     Carrying value
Equities:
    JSE - primary listing                   At fair value through Net Investment Income        Fair value
    JSE - secondary listing                 At fair value through Net Investment Income        Fair value
    Foreign listed equities                 At fair value through Net Investment Income        Fair value
    Unlisted equities                       At fair value through Net Investment Income        Fair value
Collective investment schemes               At fair value through Net Investment Income        Fair value
Bills, bonds and securities                 At fair value through Net Investment Income        Fair value
Insurance policies:
    Non-linked policies                     At fair value through Net Investment Income        Fair value
    Linked policies                         At fair value through Net Investment Income        Fair value
Cash and deposits                           At fair value through Net Investment Income        Fair value

At fair value through statement of changes in net assets and funds (net investment income)
A financial asset at fair value through the statement of changes in net assets and funds is recognised on
acquisition using trade date accounting. Upon initial recognition it is designated at fair value through the
statement of changes in net assets and funds.




                                                                                   18
SCHEDULE G
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Changes in Net Assets and Funds
For the reporting period ended 31 December 2005

Carrying value
A financial asset at fair value through the statement of changes in net assets and funds is measured at fair
value, which is the fair value without any deduction for transaction costs that may be incurred on sale or
other disposal. Transaction costs on acquisition are expensed on occurrence through the statement of
changes in net assets and funds.

Fair value is determined as follows:

    Listed investments
    Investments listed on a recognised stock exchange are valued by reference to stock exchange quoted
    selling prices at the close of business on the reporting date.

    Unlisted investments
    Unlisted equity investments are calculated by the board of trustees, with reference to the directors'
    valuation as at the end of the reporting period.

    Linked insurance policies
    Linked insurance policies are valued at the equivalent to the market value of the underlying assets as
    certified by the investment insurers concerned.

    Non-linked insurance policies
    Non-linked insurance policies are valued at the equivalent of the guaranteed amount and bonuses as
    certified by the insurer concerned. Non-vested income is included in the valuation.

    Collective investment schemes
    Collective investment schemes are valued at the repurchase price.

    Cash and deposits
    Cash and deposits are valued at market value.

Transfers from other funds

Individual transfers from other funds
Individual transfers are recognised when the individual member's transfer value is received.

Other financial instruments
Financial instruments other than investments and transfers to and from other funds are recognised at
amortised cost. Other financial assets are tested for impairment annually and adjusted for any impairment
write offs and reversals.

Contributions
Contributions are brought to account on the accrual basis.

Dividend income
Dividend income is recognised when the right to receive payment is established.




                                                                                 19
SCHEDULE G
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Statement of Changes in Net Assets and Funds
For the reporting period ended 31 December 2005

Insurance policy income
Insurance policy income is recognised when the right to receive payment is established.

Interest income
Interest income is recognised on a time proportion basis, taking account of the principal outstanding and
the effective rate over the period to maturity, when it is determined that such income will accrue to the
fund.

Comparatives
Where necessary, comparative figures have been reclassified to conform to changes in presentation in the
current reporting period.




                                                                               20
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


1. Investments
Investment summary                                                                     Local               Foreign            Current period        Previous period
                                                                                        R                     R                     R                     R
At fair value
Equities:
    Equities with primary listing on JSE                                                 573 299 110                     0           573 299 110                      0
    Equities with secondary listing on JSE                                                38 784 332                     0            38 784 332                      0
Collective investment schemes                                                            123 516 070            83 995 610           207 511 680                      0
Bills, Bonds and Securities                                                               59 824 336                     0            59 824 336                      0
Insurance policies
    Non-linked policies                                                                   38 399 888             4 319 779            42 719 667             46 472 116
    Linked policies                                                                          304 394                     0               304 394            658 319 008
Cash and cash deposits                                                                    20 457 941                     0            20 457 941                      0
                                                                                         854 586 071            88 315 389           942 901 460            704 791 124

2. Housing loan facilities

Housing loan guarantees
The fund may provide guarantees to financial institutions to secure housing loans for its members. The guarantees are limited to 80% of the relevant members'
withdrawal benefits, in terms of the rules of the fund and Section 19(5) of the Pension Funds Act in South Africa. Each guarantee is secured by the withdrawal
benefit of the member on whose behalf the guarantee was granted. As at 31 December 2005 the balance of housing loans granted by Alexander Forbes HomePlan
JV with Absa for the fund was R 7,618,616.72

The total housing loan guarantee facility amounting to R15 000 000 is renewable on 31 August 2006.




                                                                              21
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005

3. Accounts receivable
                                                                                                                 Current period           Previous period
                                                                                                                       R                         R
Income accruals
   Dividends                                                                                                               138 700                    177 756
Prepaid expenses                                                                                                                 0                    119 595
Taxation authorities
   Regional services council levies                                                                                            585                          0
                                                                                                                           139 285                    297 351

4. Contributions
                                                   At beginning of         Towards retirement        Towards          Contributions       At end of period
                                                       period                                    reinsurance and      received and
                                                                                                     expenses           accrued
                                                           R                       R                    R                   R                    R
Employers contributions                                        6 139 191            77 889 629            1 797 034        (79 216 374)              6 609 480
 Received and accrued                                          6 139 191            77 889 629            1 797 034        (79 216 374)              6 609 480
                                                               6 139 191            77 889 629            1 797 034        (79 216 374)              6 609 480

Reported as:
  Contributions receivable                                     6 139 191                                                                             6 609 480
  Contributions payable                                                0                                                                                     0
                                                               6 139 191                                                                             6 609 480

Movement on Statement of Changes in Net Assets and Funds
Towards retirement                                                                                                                                77 889 629
Towards reinsurance and expenses                                                                                                                   1 797 034
Total                                                                                                                                             79 686 663




                                                                      22
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


5. Unclaimed benefits
                                                                Current period       Previous period
                                                                      R                     R
At beginning of period                                                   1 988 856             2 333 448
Net investment return                                                      157 678                   365
Less:
   Benefits paid                                                            31 567               344 957
Balance at end of period                                                 2 114 967             1 988 856

6. Retirement fund taxation
                                                                Current period       Previous period
                                                                      R                     R
Taxable income                                                          19 421 622            17 171 878
Less: Formulae reduction                                                         0                     0
Retirement fund taxable amount                                          19 421 622            17 171 878

Retirement fund taxation at 18%                                          3 495 892            2 986 145
Movement on Statement of Changes in Net Assets and Funds                 3 495 892            2 986 145

Balance at beginning of period                                             256 988              152 195
Retirement fund taxation                                                 3 495 892            2 986 145
Less:
   Amount paid                                                           3 496 263            2 986 145
Balance at end of period                                                   256 617              256 988




                                                           23
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


7. Benefits
                                                 At beginning of     Benefits for      Net investment      Payments      Transferred to At end of period
                                                     period         current period         return                         unclaimed
                                                                                                                            benefits
                                                        R                 R                  R                R                R               R
On retirement                                          22 922 280         47 775 603             134 838    (37 267 905)               0       33 564 816
Lump sums on retirement
   Full benefit                                        22 922 280         47 775 603             134 838     (37 267 905)             0        33 564 816
Pre-retirement                                          8 867 780         32 030 118             355 220     (19 279 814)             0        21 973 304
Lump sums before retirement
   Death benefits                                       2 451 197          3 943 481             165 572     (1 347 529)              0         5 212 721
   Withdrawal benefits                                  6 416 583         28 086 637             189 648    (17 932 285)              0        16 760 583
                                                       31 790 060         79 805 721             490 058    (56 547 719)              0        55 538 120


Movement on Statement of Changes in Net Assets and Funds
Benefits awarded                                                                                                                               79 805 721
                                                                                                                                                        0
Benefits                                                                                                                                       79 805 721

8. Accounts payable
                                                                                                               Current period         Previous period
                                                                                                                     R                       R
Administration fees                                                                                                        89 057                 83 805
Auditors' remuneration                                                                                                     47 401                 35 650
Taxation authorities
   Regional services council levies                                                                                               0                18 765
                                                                                                                            136 458               138 220




                                                                    24
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


9. Net investment income
                                                     Current period       Previous period
                                                           R                     R
Dividends received                                           19 742 497            11 662 308
Fair value adjustments                                     187 519 645             98 783 576
Insurance policies income                                     6 197 323             3 088 517
Interest received                                            20 486 786            15 588 562
Less:
   Expenses incurred in managing investments:
       Investment administrator fees                          5 488 242             3 524 863
                                                            228 458 009           125 598 100

10. Administration expenses
                                                     Current period       Previous period
                                                           R                     R
Administration fees                                           1 077 689             1 032 638
Bank charges                                                        667                   631
Fidelity insurance cover                                          8 000                 5 200
Office expenses                                                 122 250                99 950
South African Reserve Bank billing                                  513                   771
Auditors' remuneration:
  Audit fees                                                     47 547                35 128
Regional services council levies                                 57 785                62 546
Financial Services Board levies                                  19 399                15 371
                                                              1 333 850             1 252 235




                                                25
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


11. Amounts to be allocated
                                                   Current period       Previous period
                                                         R                     R
Investment return to be allocated                           4 964 267                     0
At end of period                                            4 964 267                     0




                                              26
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005


12. Risk management policies

Market risk
Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in the market. Market risk applies to all investments accounted for
at fair value.

Market risk comprises:

   Currency risk
   Currency risk is the risk that the value of a financial instrument will fluctuate, in Rands, because of changes in foreign exchange rates.

   Fair value interest rate risk
   Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates.

   Price risk
   Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors
   specific to the individual instrument or its issuer, or by factors affecting all instruments traded in the market.

The investment mandate is structured by the board of trustees to be consistent with the fund's investment strategy. Market risk is managed in accordance with the
fund's investment strategy and within the framework of statutory requirements. All components of market risk are, in turn, managed by the independent asset
managers, appointed by the trustees in accordance with their mandates or investment policies, through diversification.

Cash flow interest rate risk
Cash flow interest rate risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in the interest rate. In the case of a floating
rate debt instrument, for example, such fluctuations would result in a change in the effective interest rate of the financial instrument, usually without a
corresponding change in its value. Cash flow interest risk is limited to interest bearing financial instruments that are accounted for at amortised cost.
Cash flow interest rate risk is managed in accordance with the fund's investment strategy by the fund's independent asset managers, in accordance with their
mandates or investment policies, inter alia, by entering into floating rate loan agreements in preference to fixed rate agreements.




                                                                                     27
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005

Credit risk
Credit risk is the risk that one-party to a financial instrument will fail to discharge an obligation, and cause the other party to incur a financial loss. A credit risk also
arises when the fund has the right of set-off or to settle net in respect of certain assets and liabilities but does not intend to do so.
Credit risk is managed by investing in well researched institutions of high credit standing and reputation.

Liquidity risk
Liquidity risk is the risk that the fund will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result
from an inability to sell a financial asset at close to its fair value on short notice.
This risk is managed by evaluating the liquidity restrictions of all fund investments and then evaluating the possible impact of such restrictions, taking into account
the diversification within the fund's investments.

Solvency risk
Solvency risk is the risk that the investment returns on assets will not be sufficient to meet the fund's contractual obligation to members.
Periodic valuations are conducted by the actuary of the fund at least at the intervals prescribed by the Pension Funds Act in South Africa. The board of trustees,
with the advice of the fund's actuary, considers and takes corrective action to mitigate this risk and to ensure that appropriate assets are held to meet the fund's
obligation to members and all other liabilities.

Legal risk
Legal risk is the risk that the fund will be exposed to contractual obligations which have not been provided for.
The fund ensures that provisions have been raised in the financial statements for all significant contractual obligations in terms of the rules.




                                                                                     28
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005

13. Related party transactions

Participating employer and fund transactions
The following transactions between the participating employer and the fund occurred during the period:

The participating employer made contributions to the fund for members' retirement and towards the fund's expenses to the value of R77 889 629 and R1 797 034
respectively. (Refer note 4 of the financial statements).




                                                                               29
SCHEDULE HA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Notes to the Annual Financial Statements
For the period ended 31 December 2005




                                           30
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar and Schedules to the Annual Financial
Statements
For the period ended 31 December 2005



   SCHEDULE                                 CONTENTS                                  PAGE

         I         Report of the Independent Auditors to the Registrar of Pension      32
                   Funds on Factual Findings
        IA         Schedules to the Annual Financial Statements
        IA            Investment summary schedule                                      37
        IA            Equities                                                         38
        IA            Bills, bonds and securities                                      41
        IA            Cash and deposits                                                42
        IA            Non-linked insurance policies                                    43
        IA            Linked insurance policies                                        43
        IA            Collective investment schemes                                    43
        IA            Risk management policies                                         44
        IA            Credit/counterparty risk                                         44
        IB         Assurance report of the independent auditors to the Registrar of    45
                   Pension Funds
        IB         Assets held in compliance with Regulation 28                        46




                                                    31
SCHEDULE I
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar of Pension Funds on Factual Findings
For the period ended 31 December 2005


Scope
We have performed the procedures agreed with you and enumerated below with respect to the accounting
records of the University of Kwazulu-Natal Retirement Fund for the period ended 31 December 2005, as
required by you in terms of Section 15 of the Pension Funds Act in South Africa, (the Act). Our
engagement was undertaken in accordance with the International Standard on Related Services (4400)
Engagements applicable to agreed-upon procedures engagements regarding financial information. The
responsibility for determining the adequacy or otherwise of the procedures agreed to be performed is that
of the Registrar of Pension Funds.

Procedures and findings
Our procedures and the corresponding findings thereon are set out in the table below.
         Procedures                                          Findings
1        We selected 3 pay points and for the following
         three months: March 2005, September 2005
         and December 2005, performed the following
         procedures:
1.1      We agreed, in total, the data received by the       We found that the data received by the
         administrator to the cash received by the fund.     administrator agreed to the cash received by
                                                             the fund.
1.2      We inspected the bank statements or mutual          We found that contributions were deposited
         building society records, as appropriate, for the   with a registered bank in accordance with
         date on which the cash was received to              section 13A of the Act.
         determine whether the contributions were
         deposited with a registered bank in accordance
         with section 13A of the Act and whether late
         payment interest has been raised in terms of
         regulation 33, where applicable.


1.4      We inspected the accounting records of the          We found that amounts disclosed as arrear
         fund to determine whether amounts disclosed         contributions at year-end have been paid to the
         as arrear contributions at year-end have been       fund in accordance with the requirements of
         paid to the fund in accordance with the             section 13A of the Act.
         requirements of section 13A of the Act.
2        We inspected the list of investments held by        We found that the fund does not hold
         the fund for any investments prohibited in          investments prohibited in terms of section
         terms of section 19(4) of the Act.                  19(4) of the Act.
2.1      Where investments held in the participating         Not applicable to the fund.
         employer exceeded 5% we inspected the
         appropriate Financial Services Board approval.
2.2      We obtained written confirmations of                We found that the investment balances agreed
         investment balances from the investment             to the details in the confirmation received from
         managers and agreed details of the                  the investment managers.
         confirmations received to the investment
         balances reflected in the general ledger.



                                                      32
SCHEDULE I
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar of Pension Funds on Factual Findings
For the period ended 31 December 2005

        Procedures                                         Findings
3       We obtained the list of housing loans granted
        to members by the fund in terms of section
        19(5) of the Act by the fund as at 31
        December 2005.
3.1     We agreed the loans of the above list to the       Not applicable to the fund.
        corresponding account in the general ledger.
3.2     From the above list, we selected 25 housing        Not applicable to the fund.
        loans. We determined whether the selected
        housing loans were granted in terms of the
        requirements of section 19(5) of the Act, in
        terms of the security provided and the interest
        rates applied to the loans.
3.3     We compared the total guarantees issued on         We found that the total guarantees issued did
        behalf of the members to the total of the          not exceed the members' individual fund
        members' individual fund credits, to determine     credits.
        whether the total guarantees issued exceeded
        the total members' individual fund credits.
4       We obtained a list of all other loans as at 31     Not applicable to the fund.
        December 2005 and determined whether these
        loans were granted in terms of the
        requirements of section 19(5)B.
5       We obtained a written confirmation from the        We found that the confirmation indicated that
        fund's insurer that the fidelity insurance cover   fidelity cover was in place for the financial
        was in place for the financial period ended 31     period ending 31 December 2005.
        December 2005.
6       We obtained the list of section 14 transfers to
        and from the fund for the period ending 31
        December 2005 and performed the following
        procedures:
6.1     We agreed the section 14 transfers to and from     Not applicable to the fund.
        the fund to the approved section 14
        documentation received from the Financial
        Services Board in respect of each transfer.
6.2     We agreed the above list of section 14 transfers   Not applicable to the fund.
        to the corresponding account in the general
        ledger.




                                                     33
SCHEDULE I
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar of Pension Funds on Factual Findings
For the period ended 31 December 2005

        Procedures                                         Findings
7       We obtained a list of accumulated member
        credits as reflected on the administrator's
        member register as at 31 December 2005.
7.1     We agreed the closing balance on the list to the   The closing balance did not agree to the
        corresponding account in the general ledger.       corresponding account in the annual financial
                                                           statements by an amount of R4 964 267
                                                           relating to investment returns that duly would
                                                           be allocated to members.
7.2     We selected a sample of the lesser of 25 or
        30% of the number of members from the list
        and performed the following procedures for
        each member:
7.2.1   We agreed the employer contributions received      We found the employer contributions received
        for the selected members per the                   for the selected member per the
        administrator's system to information supplied     administrator's system agreed to information
        by the participating employers for a sample of     supplied by the participating employers for the
        3 months.                                          3 months selected.
7.2.2   We agreed the return allocated to the              We found that the return allocated to the
        member's fund credit on the administrator's        member's fund credit on the administrator's
        records to the return approved in accordance       records agreed to the return approved in
        with a trustee resolution or the rules of the      accordance with a trustee resolution or the
        fund.                                              rules of the fund.




7.3     If the member was entitled to an allocation of     Not applicable to the fund.
        the fund surplus, we agreed the surplus added
        to the member's records to the surplus
        allocated in terms of the Registrar of Pension
        Funds approved surplus apportionment
        scheme.
8       We inspected the most recent statutory
        valuation report dated 31 December 2003 on
        the valuator's findings relating to the funding
        levels of the fund and performed the following
        procedures:
8.1     We determined whether, in accordance with          We found that, in accordance with the
        the valuation report, the fund was under           valuation report, the fund was not under
        funded.                                            funded.




                                                      34
SCHEDULE I
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar of Pension Funds on Factual Findings
For the period ended 31 December 2005

         Procedures                                          Findings
8.2      Where a fund was under funded, we agreed            Not applicable to the fund.
         that a scheme, as required in terms of section
         18 of the Pension Fund Act in South Africa,
         has been proposed and is being implemented,
         to remedy the shortfall.
9        We obtained the analysis of the movements in
         the fund's reserve accounts from the financial
         statements and performed the following
         procedures:
9.1      We agreed the opening balance to the prior          Not applicable to the fund.
         year financial statements. (in the funds first
         year of operation we obtained a signed
         representation letter relating to the opening
         balances from the administrator).
9.2      We inspected the rules of the fund to         Not applicable to the fund.
         determine whether the nature of the
         movements in the fund's reserve accounts were
         in terms of the rules of the fund.
10       We obtained a list of lump sum benefits
         reflected as expenses in the fund's Statements
         of Changes in Net Assets and Funds (deaths,
         retirement, withdrawals and retrenchments)
         and performed the following procedures:
10.1     We agreed the list to the respective general        We found that the list agreed to the respective
         ledger benefit expense accounts.                    general ledger benefit expense accounts.
10.2     From the above list we selected the lesser of 10
         benefits or 5% of the number of benefit
         expenses listed and performed the following
         procedures:
10.2.1   We agreed the claim to the applicable,              We found that the claims agreed to the
         authorised supporting documentation.                authorised supporting documentation.
10.2.2   For death benefits, where a portion of the          Not applicable to the fund.
         benefit had been reinsured by the fund, we
         determined whether the recovery from the
         insurer had been received by the fund.
10.2.3   We agreed the opening fund credit for the           We found that the opening fund credit for the
         member to the opening fund credit report and        member agreed to the opening fund credit
         determined whether contributions were added         report and the contributions were added every
         every month until the date of exit. [either by R    month until the date of exit. We found that the
         amount or in case of unitised funds, by units]      balance paid out to member agreed to the fund
         We agreed the balance paid out to member to         credit report or administration system as at
         the fund credit report or administration system     date of exit.
         as at the date of exit.




                                                        35
SCHEDULE I
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar of Pension Funds on Factual Findings
For the period ended 31 December 2005

         Procedures                                         Findings
10.2.4   We inspected documentation authorising the         We found that the payouts made by the fund
         payouts made by the fund.                          agreed to authorising documentation.
11       We obtained a copy of the pensioner's payroll
         and performed the following procedures:
11.1     We agreed the total pensions paid to the           Not applicable to the fund.
         corresponding account in the general ledger.
11.2     From the above list we selected the lesser of 10
         pensions or 5% number of pensions paid as
         listed and performed the following procedures:
11.2.1   We agreed the pensioner increases to approved      Not applicable to the fund.
         trustee resolutions.
11.2.2   We inspected the certificates of existence for     Not applicable to the fund.
         the pensioners selected.
12       Where the fund has reinsured its pensioners        Not applicable to the fund.
         with an insurer, we obtained a written
         confirmation of the pensions paid from the
         insurer and agreed this to the fund's general
         ledger pension expense accounts.
As the above procedures do not constitute either an audit or a review made in accordance with
International Standards on Auditing or International Standards on Review Engagements, we do not
express any assurance on the procedures performed.
Had we performed additional procedures, other matters might have come to our attention that would have
been reported to you.
Our report is solely for regulatory purposes and may not be distributed to, or relied on, by parties other
than the Registrar of Pension Funds.




_________________________________
Deloitte & Touche
Per: D Munu
Partner

Johannesburg




                                                     36
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005


Investment summary schedule
                                                    Direct       Non-linked    Linked      Collective       Total         Local        Foreign       Total % of
                                                 investments     insurance    insurance   investment                                                  foreign
                                                                  policies     policies    schemes                                                   exposure
                                         Notes                       4            5            6
                                                     R               R            R            R              R             R            R               R
Investment properties                                          0    3 356 165           0             0      3 356 165     3 356 165             0           0.00%
Equities:                                  1
    Equities with primary listing on               573 299 110     15 839 930           0             0    589 139 040   589 139 040             0           0.00%
    JSE
    Equities with secondary listing on              38 784 332      4 634 981           0             0     43 419 313    43 419 313             0           0.00%
    JSE
    Foreign listed equities                                  0       2 532 619           0             0     2 532 619             0    2 532 619        100.00%
    Equity index-linked instruments                          0       1 148 653           0             0     1 148 653     1 148 653            0          0.00%
    Unlisted equities                                        0         229 788           0             0       229 788       229 788            0          0.00%
Bills, bonds and securities                2        59 824 336       8 498 158           0             0    68 322 494    67 289 657    1 032 837          1.51%
Collective investment policies                               0               0           0   207 511 680   207 511 680   123 516 070   83 995 610         40.48%
Cash and deposits                          3        33 962 984       6 233 688     304 394             0    40 501 066    39 992 428      508 638          1.26%
Other assets under management                                0         245 685           0             0       245 685             0      245 685        100.00%
                                                   705 870 762      42 719 667     304 394   207 511 680   956 406 503   868 091 114   88 315 389          9.23%




                                                                             37
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005

1. Equities
                                                                                                                Fair value
                                                                                                                    R
Primary listing on JSE                                                                                            573 299 110
Secondary listing on JSE                                                                                            38 784 332
                                                                                                                   612 083 442

Primary listing on JSE                               Issued shares       No. of shares held     % Holding       Fair value
                                                                                                                    R
Ordinary shares
  ABSA Group Limited                                       666 855 074                202 895           0.03%       20 492 395
  AFGRI Limited                                            365 815 000                346 200           0.09%        1 900 638
  African Bank Investments Limited                         498 367 686                324 900           0.07%        7 960 050
  African Oxygen Limited                                   342 852 910                612 900           0.18%       15 812 820
  African Rainbow Minerals Gold Limited                    205 149 667                147 425           0.07%        6 190 376
  Allan Gray Property Trust                                996 043 081              2 060 000           0.21%       11 268 200
  Allied Electronics Corporation Limited                    97 174 115                182 000           0.19%        3 822 000
  Anglo American Platinum Corporation Limited              218 494 956                 37 000           0.02%       16 909 000
  Anglogold Limited                                        265 092 132                  6 600           0.00%        2 072 400
  Apexhi - B                                               234 629 178                345 100           0.15%        5 000 499
  ApexHi Properties Limited                                234 629 178                229 200           0.10%        3 036 900
  Aspen Pharmacare Holdings Limited                        384 906 462                 88 822           0.02%        2 966 655
  Assore Limited                                            28 000 000                  3 120           0.01%          468 000
  Astral Foods Limited                                      44 627 513                 77 000           0.17%        5 929 000
  Atlas Properties Limited                                  63 784 922                100 000           0.16%        1 430 000
  Bidbee Limited                                            45 002 000                 74 864           0.17%        4 149 712
  Bidvest Limited                                          322 365 386                 48 414           0.02%        4 478 295
  Bidvest Limited                                          322 365 386                  2 305           0.00%           73 760
  Caxton Publishers and Printers Limited                   493 450 243                321 501           0.07%        5 124 726
  Consol Limited                                           315 473 188                141 565           0.04%        1 691 702
  Coronation Fund Managers Limited                         383 881 588                375 000           0.10%        2 062 500
  Datatec Limited                                          146 359 468                208 080           0.14%        4 161 600


                                                38
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005

  Firstrand Limited                                 5 615 032 468   1 198 323    0.02%   22 109 059
  Gencor Limited                                      348 590 257     101 820    0.03%       19 346
  Gold Fields Limited                                 493 408 068      25 885    0.01%    2 893 943
  Harmony Gold Mining Company Limited                 394 161 367     220 949    0.06%   18 758 570
  Hyprop Investments Limited                          143 137 272      86 923    0.06%    2 299 998
  Illovo Sugar Limited                                339 533 800     765 500    0.23%    9 711 300
  Impala Platinum Holdings Limited                     67 064 294      34 335    0.05%   32 000 220
  Investec Group Limited                               43 999 527       3 400    0.01%      938 400
  JCI Limited                                       2 218 477 000   4 692 930    0.21%      750 869
  Johnnic Communications Limited                      103 821 159     178 779    0.17%    9 654 066
  Liberty Group Limited                               278 164 413      38 863    0.01%    2 934 157
  Liberty Holdings Limited                             49 081 401       5 000    0.01%      945 000
  Martprop Property Fund                                1 450 368   1 100 000   75.84%    3 619 000
  Medi-Clinic Corporation Limited                     394 355 227     223 576    0.06%    4 024 368
  Metropolitan Life Limited                           649 066 000     607 268    0.09%    7 196 125
  MTN Group Limited                                 1 665 350 015     443 200    0.03%   27 544 880
  Mutual & Federal Insurance Company Limited          281 021 455     261 958    0.09%    8 120 698
  Nampak Limited                                      652 087 661     780 017    0.12%   13 135 486
  Naspers Limited                                     314 548 700      58 048    0.02%    6 501 956
  Nedbank Group Limited                               443 020 656     131 117    0.03%   13 111 700
  New Aplitec Part Trust                              131 500 000     150 374    0.11%    3 736 794
  New Clicks Holdings Limited                         375 304 532     259 390    0.07%    2 256 693
  Northam Platinum Limited                            234 286 000     243 000    0.10%    4 617 000
  Omnia Holdings Limited                               45 177 461      86 000    0.19%    3 216 400
  Pick 'n Pay Holdings Limited                        527 249 082     497 600    0.09%    6 443 920
  Pick 'n Pay Stores Limited                          486 133 882     272 000    0.06%    7 806 400
  Randgold & Exploration Company Limited               74 813 128     106 700    0.14%      949 630
  Real Africa Holdings Limited                        371 757 625     471 510    0.13%    2 381 126
  Remgro Limited                                      486 493 650     249 121    0.05%   30 392 762
  Reunert Limited                                     193 993 716     193 200    0.10%   10 162 320
  RMB Holdings Limited                              1 187 808 570     419 600    0.04%   11 706 840
  Sanlam Limited                                    2 408 608 304   1 013 000    0.04%   15 387 470
  Santam Limited                                      116 252 637      46 000    0.04%    3 703 000

                                               39
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005

  Sappi Limited                                           239 071 892                25 000           0.01%        1 812 750
  Sasol Limited                                           680 624 725               220 549           0.03%       49 954 349
  Shoprite Holdings Limited                               543 479 460               352 003           0.06%        6 487 415
  Spar Group Limited                                      169 077 000                52 767           0.03%        1 635 777
  Spur Corporation Limited                                 97 632 833               213 946           0.22%        1 816 402
  Standard Bank Group Limited                           1 352 877 862               380 862           0.03%       28 873 148
  Sun International (South Africa) Limited                117 859 947                84 738           0.07%       15 333 254
  Super Group Limited                                     404 843 109               205 000           0.05%        2 193 500
  Telkom South Africa Limited                             544 944 899                36 500           0.01%        4 918 375
  Tiger Brands Limited                                    169 684 715                97 824           0.06%       14 233 392
  Tradehold Limited                                       347 330 441               672 000           0.19%        2 016 000
  Trans Hex Group Limited                                  89 846 510               124 800           0.14%        1 840 800
  Trencor Limited                                         155 857 324                77 600           0.05%        1 536 480
  Venfin Limited                                          409 271 700               251 560           0.06%       11 999 412
  Western Areas Limited                                   154 053 619               104 447           0.07%        4 282 327
  Wilson Bayly Holmes - Ovcon Limited                      55 490 500               103 368           0.19%        4 548 192
  Woolworths Holdings Limited                             883 022 422               266 677           0.03%        3 786 813
Total                                                                                                            573 299 110

Secondary listing on JSE                            Issued shares       No. of shares held    % Holding       Fair value
                                                                                                                  R
Ordinary shares
  Anglo American Plc                                    1 493 434 517               108 140           0.01%       23 109 518
  Dimension Data Holdings Plc                           1 350 859 762               454 000           0.03%        2 047 540
  Investec Plc                                             74 633 746                 1 100           0.00%          303 765
  Liberty International Plc                               337 772 673                17 000           0.01%        1 836 000
  Lonmin Plc                                              142 280 656                15 000           0.01%        2 662 500
  SAB Miller Plc                                        1 497 530 469                74 947           0.01%        8 825 009
Total                                                                                                             38 784 332




                                               40
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005

2. Bills, bonds and securities
                                                Secured by or           Interest rate      Redemption value       Fair value
                                                unsecured
                                                                                                  R                   R
Government or provincial administrators
  RSA 2006                                      Government                        12.00%              1 300 000         1 362 660
  RSA 2008                                      Government                        10.05%              9 400 000        10 233 780
  RSA 2010                                      Government                        13.00%              8 300 000        10 499 500
  RSA 2014                                      Government                         8.75%              3 500 000         3 804 500
  RSA 2015                                      Government                        13.50%              1 500 000         2 177 250
Local authorities
  Dev Bank 2010                                 Uni                               14.50%                500 000             651 450
  Telkom 2006                                   Uni                               10.50%              1 000 000           1 044 500
  Thekwini THE 21/11/2006                       Local authority                   10.00%                301 379             304 031
  Thekwini THE2C 21/11/2006                     Local authority                   10.00%                200 000             202 080
  Thekwini THEA3 21/11/2028                     Local authority                   10.00%                200 000             202 020
  Trans Caledon 2008                            Local authority                    8.00%                500 000             513 450
  Trans Caledon 2010                            Local authority                   13.00%              2 000 000           2 504 800
  Trans Caledon 2016                            Local authority                   12.50%                200 000             271 060
  Trans Caledon Tun Authority CB - SCMB         Local authority                   10.00%              6 000 000           6 000 000
  Transnet 2006                                 Transnet                          12.00%              2 000 000           2 090 400
  Transnet 2008                                 Transnet                           7.50%              1 200 000           1 223 520
Corporate bonds
  ABSA 14.25% 2009                              ABSA                              14.25%              1 900 000           2 323 510
  Anglogold 10.50 % 2008                        Anglogold                         10.70%                500 000             546 900
  Barloworld 10.70% 2011                        Barloworld                        10.70%                500 000             580 850
  Fintech FINIA 15/12/2011                      Fintech                           10.00%                101 749             102 095
  Fintech FINiB 15/12/2011                      Fintech                           10.00%                200 000             200 820
  Fresco 11.20 2007                             Fresco                            11.20%                200 000             214 020
  Fresco 12.20% 2007                            Fresco                            12.20%                300 000             324 300
  Investec Bank 16.00% 2012                     Investec Bank Limited             16.00%              1 100 000           1 533 730
  Liberty Group Limited 8.93% 2012              Liberty Group                      8.93%                500 000             531 450
                                                Limited

                                               41
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005

   Nedbank 11.30% 2006                          Nedbank         11.30%      1 000 000         1 056 900
   Nedbank 13.15% 2007                          Nedbank         13.15%        500 000           535 450
   OMO 10.20% 2008                              Unilever        10.20%        700 000           760 830
   Private Mortgages1-15/12/25                  Company         10.00%        200 000           200 680
   Sanlam Cap Mrkt Call Bond                    Sanlam          10.00%      2 000 000         2 000 000
   Sasol 10.50% 2007                            Sasol Limited   10.50%      2 200 000         2 364 780
   Standard Bank 11.25% 2008                    Standard Bank   11.25%        700 000           769 720
   Standard Bank 9.5% 2011                      Standard Bank    9.50%        500 000           539 100
   Standard Bank 9.63% 2015                     Standard Bank    9.63%      1 000 000         1 101 400
   Standard Bank Senior bond 05/2010            Standard Bank   10.00%      1 000 000         1 052 800
                                                                                             59 824 336



3. Cash and deposits
                                                                         Interest rate   Fair value
                                                                                             R
Deposits
  Daily Settlements                                                      13.0                 7 377 844
  First CD 070706                                                        9.35                 5 227 986
  Initial Margin SFX                                                     13.0                 2 565 000
  Investec Internal Money Fund                                           10                   1 525 797
  Standard Bank Investment Bank Account                                  13.0                 2 598 420
  Variation Margin Inv                                                   13.0                 1 162 894
Bank
  The Standard Bank of South Africa Limited                              Prime linked        13 505 043
                                                                                             33 962 984




                                               42
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005


4. Non-linked insurance policies
                                                      Fair value
                                                          R
Non-linked policies
  Investment Solutions Limited - Fully Vesting            42 719 667
                                                          42 719 667

5. Linked insurance policies
                                                      Fair value
                                                          R
Linked policies
   Investment Solutions Limited - Banker                    304 394
                                                            304 394



6. Collective investment schemes
                                                      Fair value
                                                          R
Equity collective investment schemes
  Investec Global Managed Funds                           83 995 610
Other collective investment schemes
  Investec Private Equity                               123 516 070
                                                        207 511 680




                                                 43
SCHEDULE IA
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Schedules to the Annual Financial Statements
For the period ended 31 December 2005




Risk management policies

Credit/counterparty risk
Counterparty                                Direct       Deposits/            Scrip lending Open financial   Guarantees        Any other         Total for        Exposure to
                                        investments in liquid assets          transactions   instruments                      instrument       counter party     counter party
                                         counter party with counter                           marked to                                                           as a % of the
                                                           party                             market value                                                       fair value of the
                                                                                                                                                                  assets of the
                                                                                                                                                                      fund
                                               R                 R                 R              R              R                R                 R
Banks
   The Standard Bank of South                           0      13 505 043                 0              0                0                0       13 505 043             1.41%
   Africa Limited
Asset managers - local
   Allan Gray Investment Managers                       0                 0               0    458 110 527                0                0      458 110 527            47.90%
   Investec Asset Management                            0                 0               0    441 766 873                0                0      441 766 873            46.19%
   (Proprietary) Limited
Insurers
   Investment Solutions Limited                         0                 0               0              0                0     43 024 062         43 024 062             4.50%
Loan holder
   Alexander Forbes HomePlan JV                         0                 0               0              0      7 618 617                  0        7 618 617             0.80%
   with ABSA
Investments are reflected at fair value at the end of the financial period.




                                                                                   44
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Report of the Independent Auditors to the Registrar in terms of Regulation 28 of Pension Funds
Act in South Africa
For the period ended 31 December 2005

We have performed our assurance engagement on Schedule IB, Assets of the fund held in compliance with
Regulation 28 of the Pension Funds Act of South Africa (the Act), of University of Kwazulu-Natal
Retirement Fund set out on pages 46 to Error! Bookmark not defined. at 31 December 2005.

Trustees responsibility for the Schedule
The trustees are responsible for the preparation of the Schedule, from information derived from the
accounting records of the fund and for ensuring that the Schedule is in compliance with Regulation 28 of
the Act.

Auditors' responsibility
Our responsibility is to conclude whether sufficient appropriate evidence has been obtained to support the
conclusion expressed in this report. We performed our reasonable assurance engagement in accordance
with the International Standard on Assurance Engagements (3000) Assurance Engagements Other Than
Audits or Reviews of Historic Financial Information. That standard requires that we comply with ethical
requirements and that we plan the engagement so that it will be performed effectively.

Our reasonable assurance engagement involves performing procedures to obtain sufficient appropriate
evidence that the amounts and disclosures in the Schedule are in compliance with Regulation 28 of the
Act. The procedures selected include the assessment of the risk of material misstatement of the
information contained in the Schedule, whether due to fraud or error.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.

Conclusion
In our opinion, the Schedule represents, in all material respects, the assets of the fund held at 31
December 2005 in compliance with Regulation 28 of the Pension Funds Act of South Africa.

Restriction in use of this report
Our report is solely for regulatory purposes and may not be distributed to, or relied on, by parties other
than the Registrar of Pension Funds.




_________________________________
Deloitte & Touche
Per: D Munu
Partner

Johannesburg




                                                    45
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Assets held in compliance with Regulation 28
For the period ended 31 December 2005

                                                                                              R
 A     Total assets of the fund as per Statement of Net Assets and Funds                     963 155 268
 B     Less: Items of Statement of Net Assets and Funds:                                       6 748 765
       B.1 Property Plant and Equipment                                                                0
       B.2 Current Assets (excluding cash at bank)                                             6 748 765

 C     Subtotal (A - B)                                                                      956 406 503




Categories of kinds of assets                                         %     Fair value       Fair value
                                                                                   R             %
 1 Deposits in banks, mutual banks, post office savings
   bank and SAFEX                                                    100%       33 962 984       3.55%
   (a) Deposits and balances in current and savings
       accounts in the Republic with a bank or a mutual
       building society, including negotiable deposits and
       money market instruments in terms of which such
       bank or mutual building society is liable, or deposits
       and savings accounts with the post office savings
       bank and margin deposits with SAFEX                           100%       33 962 984       3.55%
       (i) Per bank                                                  20%        13 505 043       1.41%
       (ii) Per mutual building society                              20%                 0       0.00%
       (iii) Post office savings bank                                20%                 0       0.00%
       (iv) SAFEX                                                     5%                 0       0.00%
   (b) Deposits and balances in current and savings
       accounts with a bank outside the Republic including
       negotiable deposits and money market instruments in
       terms of which such a bank is liable
                                                                     15%                 0       0.00%

 2 Krugerrands                                                       10%                 0       0.00%

 3 Bills, bonds and securities issued or guaranteed by and
   loans to or guaranteed by:                                        100%       16 739 335       1.75%
    (a) Inside the Republic                                          100%       16 739 335       1.75%
        (i) Local authorities authorised by law to levy rates
        upon immovable property                                      20%        16 739 335       1.75%
          - Per local authority                                      20%                 0       0.00%
        (ii) Development boards established by section 4 of
        the Black Communities Development Act, 1984 (Act
        No.4 of 1984)                                                20%                 0       0.00%
        (iii) Rand Water Board                                       20%                 0       0.00%
        (iv) Eskom                                                   20%                 0       0.00%
        (v) Land and Agricultural Bank of South Africa               20%                 0       0.00%
        (vi) Local Authorities Loans Fund Board                      20%                 0       0.00%
   (b) Outside the Republic
        Bills, bonds and securities issued or guaranteed by
        the foreign government concerned                             15%                 0       0.00%

     Subtotal carried forward                                                   50 702 319       5.30%




                                                                46
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Assets held in compliance with Regulation 28
For the period ended 31 December 2005

Categories of kinds of assets                                           %     Fair value       Fair value
                                                                                  R                %
4   Bills, bonds and securities issued by and loans to an
    institution in the Republic, which bills, bonds, securities
    and loans the Registrar approved in term of section
    19(1)(h) of the Act before the deletion of that section by
    section 8(a) of the Act No. 53 of 1989, also bills, bonds
    and securities issued by and loans to an institution in the
    Republic, which institution the Registrar likewise
    approved before such deletion                                      100%                0       0.00%
           - Per institution                                           20%                 0       0.00%

5   Bills, bonds and securities and loans issued by the
    government of or by a local authority in a territory other
    than the Republic, which bills, bonds, securities and loans
    the Registrar approved in term of section 19(1)(i) of the
    Act before the deletion of that section by section 8(a) of
    the Act No. 53 of 1989, also bills, bonds and securities
    issued by and loans to an institution in such an approved
    territory, which institution the Registrar likewise
    approved before such deletion                                      100%                0       0.00%
           - Per authority                                             20%                 0       0.00%

6   Immovable property and claims, secured by mortgage
    bonds thereon. Units in collective investment schemes
    in property shares and shares in, loans to and debentures,
    both convertible and non-convertible of property
    companies                                                          25%                 0       0.00%
    These investments are subject to the following
    limitations:
        (a) Inside the Republic                                        25%                 0       0.00%
          - Per any single property or property development
        project                                                        5%                  0       0.00%
        (b) Outside the Republic                                       15%                 0       0.00%
          - Per any single property or property development
        project                                                        5%                  0       0.00%


    Subtotal carried forward                                                    50 702 319         5.30%




                                                                  47
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Assets held in compliance with Regulation 28
For the period ended 31 December 2005



Categories of kinds of assets                                              %   Fair value       Fair value
                                                                                   R                %
7   Preference and ordinary shares in companies excluding
    shares in property companies. Convertible debentures,
    whether voluntarily or compulsorily convertible and units
    in equity unit trust schemes which objective is to invest
    their assets mainly in shares                                      75%      819 595 122        85.70%
    Subject to the following limitations:
    (a) Inside the Republic                                            75%      612 083 442        64.00%
         Preference and ordinary shares in companies,
         convertible debentures whether voluntarily or
         compulsorily convertible
         (i) Unlisted preference and ordinary shares, unlisted
         convertible debentures, shares and convertible
         debentures listed in the Development Capital Sector
         of the JSE                                                    5%                   0       0.00%
         (ii) Preference and ordinary shares and convertible
         debentures listed on the JSE, other than the
         Development Capital Sector                                    75%                  0       0.00%
         (aa) Companies with a market capitalisation of R2
         billion or less                                               75%                0         0.00%
         - Per company                                                 10%      612 083 442        64.00%
        (bb) Companies with a market capitalisation of more
        than R2 billion                                                75%                  0       0.00%
        - Per company                                                  15%                  0       0.00%
    (b) Outside the Republic                                           15%                  0       0.00%
        Preference and ordinary shares in companies,
        convertible debentures whether voluntarily or
        compulsorily convertible
        (i) Unlisted preference and ordinary shares and
        convertible debentures                                         2.5%                 0       0.00%
        (ii) Preference and ordinary shares and convertible
        debentures listed on any recognised foreign exchange           15%                  0       0.00%
        (aa) Companies with a market capitalisation of R2
        billion or less                                                15%                  0       0.00%
        - Per company                                                  10%                  0       0.00%
        (bb) Companies with a market capitalisation of more
        than R2 billion                                                15%                  0       0.00%
        - Per company                                                  15%                  0       0.00%
    (c) Inside the Republic
         Units in equity collective investment schemes which
         objective is to invest their assets mainly in shares          75%      123 516 070        12.91%
    (d) Outside the Republic
        Units in equity collective investment schemes which
        objective is to invest their assets mainly in shares           15%       83 995 610         8.78%

    Limitations in respect of investments in items 6 and 7           90%        819 595 122        85.70%

    Subtotal carried forward                                                    870 297 441        91.00%




                                                                48
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Assets held in compliance with Regulation 28
For the period ended 31 December 2005

Categories of kinds of assets                                           %      Fair value       Fair value
                                                                                   R                %
8   Listed and unlisted debentures, units in collective
    investment schemes with the objective to invest in
    income generating securities and any secured claim
    against individuals and companies                                  25%                  0       0.00%
    These investments are subject to the following
    limitations:
    (a) Inside the Republic                                             25%                 0       0.00%
         (i) Claims against residents                                   25%                 0       0.00%
         - Per any one individual resident                             0.25%                0       0.00%
         (ii) Claims against companies                                   5%                 0       0.00%
         - Per any one company                                           5%                 0       0.00%
    (b) Outside the Republic                                            15%                 0       0.00%
        (i) Claims against residents                                    15%                 0       0.00%
        - Per any one individual resident                              0.25%                0       0.00%
        (ii) Claims against companies                                   15%                 0       0.00%
        - Per any one company                                            5%                 0       0.00%


9   Investments in the business of a participating employer
    inside the Republic in terms of:                                                        0       0.00%
    (a) The provision of section 19(4) of the Act                       5%                  0       0.00%
    (b) The exemptions granted in terms of section 19(4A) of
    the Act                                                            10%                  0       0.00%

10 Any other assets not referred to in this Annexure, inside
   the Republic and outside the Republic:                              2.5%                 0       0.00%
   (a) Money in hand in the Republic                                   95%                  0       0.00%
   (b) Loans granted to members in accordance with:                    95%                  0       0.00%
        (i) The provisions of section 19(5) of the Act                  5%                  0       0.00%
        (ii) Exemptions granted in terms of section 19(6)(a)
        of the Act                                                     10%                  0       0.00%
   Limitations for investment in items 6-9, and items
   10, 10(a) and (b)                                                   95%      819 595 122        85.70%
   (c) Bills, bonds or securities issued or guaranteed by the
   Government of the Republic or by a provincial
   administration                                                      100%      43 085 001         4.50%
   (d) Units in collective investment schemes as defined in
   the Collective Investment Schemes Control Act, 2002,
   the underlying assets of which consist only of:                     100%                 0       0.00%
        (i) Assets referred to in paragraphs (i), (ii) and (iii) of
        item 1(a) of this Annexure;                                    100%                 0       0.00%
        (ii) Assets referred to in paragraph (c) of item 10 of
        this Annexure; or                                              100%                 0       0.00%
        (iii) Assets referred to in items 3, 4 and 5 of this
        Annexure.                                                      100%                 0       0.00%

11 Fair value of units in collective investment schemes
   included in total assets to be excluded in terms of sub-
   regulation (2)a)(i) of Regulation 28                                                     0       0.00%
12 Fair value of insurance policies included in total assets to
   be excluded in terms of sub-regulations (2)(a)(ii) and (3)
   of Regulation 28                                                              43 024 061         4.50%
TOTAL (equal to the fair value of assets (C) above)                             956 406 503          100%




                                                                  49
SCHEDULE IB
UNIVERSITY OF KWAZULU-NATAL RETIREMENT FUND
Registration number: 12/8/31608/1

Assets held in compliance with Regulation 28
For the period ended 31 December 2005

      INVESTMENTS OUTSIDE THE REPUBLIC                                     FAIR VALUE OF ASSETS
                                                                             %                R
(a)   Cash and deposits with banks outside the Republic                    0.00%                0
(b)   Bills, bonds and securities issued by Government outside the         0.00%                0
      Republic
(c)   Immovable property, units in collective investment schemes in        0.00%                0
      property shares, shares in, loans to and debentures of property
      companies, claims secured by mortgage bonds on immovable
      property outside the Republic
(d)   Preference and other ordinary shares in companies, convertible       0.00%                0
      debentures outside the Republic
(e)   Units in equity collective investment schemes outside the Republic   8.78%        83 995 610
(f)   Debentures and other secured claims against individuals and          0.00%                 0
      companies and units in income collective investment schemes
      outside the Republic
(g)   Other investments outside the Republic                               0.00%                 0
      TOTAL (Limited to 15% of FV of assets in Annexure)                   8.78%        83 995 610




                                                        50

				
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