Alongside other 19 listed companies, Old Mutual says it is determined to help these shareholders and beneficiaries gain access to their unclaimed benefits.
Image: Independent Newspapers.
Unclaimed dividends in South Africa are currently standing at approximately R4.5 billion. These are dividends you may have forgotten about or may have belonged to parents as part of employee share schemes, for example, and have never been claimed after the death of the principal owner.
Old Mutual has partnered with the Johannesburg Stock Exchange to trace the rightful owners and beneficiaries of these benefits to ensure that they receive their unclaimed funds.
Old Mutual is proud to be a participant in the JSE-led Claim It campaign, aiming to reconnect those shareholders with their unclaimed benefits.
“There is an estimated R4.5 billion in unclaimed share benefits held by South African listed companies,” says John Manyike, Head of Financial Education at Old Mutual. “This money has not reached the rightful shareholders for various reasons including, outdated contact information, old banking details and in some cases, beneficiaries being unaware that these benefits exist in their names.”
Alongside other 19 listed companies, Old Mutual says it is determined to help these shareholders and beneficiaries gain access to their unclaimed benefits.
“Think of the positive contribution these could make to your financial goals if you were to receive such an unexpected payout,” comments Manyike.
“The Claim It campaign underscores the JSE’s commitment to empower South Africans and drive financial inclusion. We are not only reuniting unclaimed dividends with their rightful owners, but we are also encouraging a culture of financial awareness as well as economic inclusion,” says Vuyo Lee, Director: Marketing and Corporate Affairs at the JSE. “This initiative has the potential to transform lives by enabling people to invest in their futures and contribute to the broader economy.”
Companies, as a means of distributing their earnings to their shareholders, usually declare and payout dividends to shareholders each year and these remain unclaimed as their beneficiaries have not been traced.
“If you were employed by a company, or your parents or siblings, you may have received shares as part of your employee benefits scheme and therefore might have unclaimed dividends owed to you,” explains Manyike.
How to claim
The process of checking whether you have these unclaimed benefits in your name is easy and quick, assures Manyike.
“The JSE has developed an advanced tracing tool to trace the shareholders shareholders,” he says. “Whether you’re a former employee, a shareholder or a beneficiary of an estate that held shares in a participating company, you’re urged to visit the JSE Claim It website to check if you have unclaimed benefits or call the call centre on 0861 401 105.”
Manyike, however, believes scepticism is understandable given the high prevalence of scams.
“Many people are probably going to think this is too good to be true,” he concedes. “But it’s worth checking as it only takes a few minutes in a secure online environment to protect your information, and the results are instantly made known.”
Think before you splurge
“For those fortunate enough to receive funds, Manyike urges caution, “this could be a very exciting time for you but do take a moment to pause and plan,” he advises. “You should firstly pay off any high-interest debt and then build up your emergency fund.” He also recommends adding to your long-term retirement savings.
Only after then should you think about treating yourself. “Set aside a small portion of the funds (no more 5%) for guilt-free spending,” he concludes. “This will satisfy the urge to splurge without derailing your financial goals.”
PERSONAL FINANCE