Dear Member,

The Board of Management has pleasure in presenting a report on the Fund for the period ended 31 March 2006.

The Metal Industries Provident Fund was established in May 1991 and provides lump sum benefits to members on retirement, retrenchment, resignation or dismissal or to their beneficiaries on their death. Members also automatically belong to the Metal and Engineering Industries Permanent Disability Scheme, which provides a salary continuation benefit for members who have been declared permanently disabled by the Medical Advisors of the Scheme.

Contributions payable to the Fund in terms of the Industrial Agreement are 6,6% of pensionable remuneration by employees and 6,6% by employers.

As at 31 March 2006, the Fund had 257 433 contributing members. NOTE: New employees have the choice of participating in the Metal Industries Provident Fund or in the Engineering Industries Pension Fund. This option may be changed within the first 3 months of Employment.
	CONTRIBUTING MEMBERS

INTEREST AWARDED ON MEMBERS' FUND CREDITS The Board of Management has agreed to award members 15% interest for the period ended 31 March 2004.
	INTEREST AWARDED TO MEMBERS

CONTRIBUTIONS RECEIVED, INVESTMENT INCOME AND BENEFITS PAID Income from investments earned by the Fund during period amounted to R5 126m whilst contributions by members and employers amounted to R1 301m. Thus total income excluding transfers amounted to R6 427m.
	CONTRIBUTION AND INVESTMENT INCOME Rm
BENEFITS PAID Rm	ASSETS Rm

Change in year end from 31 December to 31 March (15 months period)

ACTUARIAL REVIEW AS AT 31 MARCH 2006

INTRODUCTION

An actuarial review by Simeka Actuaries (previously Sanlam Actuaries) was carried out as at 31 March 2006 to assess the financial position of the Fund and to recommend an interest rate to be declared on your fund credits.

ASSETS

As at the 31 March 2006 the assets of the Fund amounted to R18 752m. The assets were held in the following types of investments, per market values, as set out in the notes to the Financial Statements.

INTEREST DECLARATION ON MEMBERS' FUND CREDITS

The Board of Management in consultation with the Actuary to the Fund declared an interest rate of 21% for the period ended 31 March 2006.

It was further declared that the interim interest rate from 1 April 2006 would be 20% .

ACTUARIAL CONCLUSION

The actuary certified that the Fund was in a sound financial position as at 31 March 2006.

FUND MANAGEMENT

The management of the Fund is vested in a Board of Management, comprising an equal number of Employee and Employer representatives, with the Chairman being appointed from either side on a two year rotational basis.

The Employers are represented by the Steel & Engineering Industries Federation of South Africa (SEIFSA), whilst the Employees are represented by the following Trade Unions:-

• Metal & Electrical Workers' Union of South Africa (MEWUSA)
• United Association of South Africa (UASA)
• National Union of Metal Workers of South Africa (NUMSA)
• Solidarity
• South African Equity Worker's Association (SAEWA)

The Fund is administered by: Metal Industries Benefit Funds Administrators (MIBFA)

The Chairman: Mr P. Wittstock

Vice Chairman: Mr F. Mjalo

The Fund's Auditors: Ernest & Young / Xabiso Accounts and Auditors

The Fund's offices: Metal Industries House, 42 Anderson Street, Johannesburg

Telephone Number: (011) 870-2000

Facsimile: (011) 870-2396

Principal Officer: Mr E Masoga

Website: www.mibfa.co.za