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SA proposes Regulation 28 changes

Seeks to lift infrastructure investment.
Image: Shutterstock

South Africa’s National Treasury is proposing changing rules governing pension funds to encourage investment in infrastructure projects.

Africa’s most industrialised nation – the hardest-hit by the coronavirus pandemic on the continent – has put public works in sectors such as transport, energy and water at the heart of its economic recovery plans.

The Treasury is proposing changes to Regulation 28 of the Pension Funds Act in draft amendments published for public comment on Friday. This rule sets the maximum percentage of a fund’s assets that can be invested in different asset classes and is aimed to shield savers from over-concentrated investments.

The proposed amendments do not introduce infrastructure as a new asset class alongside existing ones like equities, debt instruments and property, but allow for infrastructure investments to be recognised within those asset classes.

They also say overall investment in infrastructure across all asset categories may not exceed 45% of domestic exposure and an additional 10% for the rest of Africa.

The changes should make it easier for retirement funds to invest in infrastructure and allow for better measurement of investment in projects, the Treasury said in a statement.

The changes are “informed by a number of calls for increased investment in infrastructure given the current low economic growth climate,” it said, stressing that the decision to invest in any asset class remained up to the board of trustees of each fund.

The public can comment on the amendments until late March.

See Treasury’s full statement on draft amendments to Regulation 28.

LISTEN: Malusi Ndlovu of Old Mutual on how the proposed amendments to Regulation 28 will affect your retirement

COMMENTS   8

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Nothing like a little WMC when a comrade are running low on tender love!

All i know is that everything this Government touches turns into jelly and flows away into an abyss of nothingness, even changing a Tegulation

If only they would focus on recapturing the billions/trillions stolen, this country will flourish and there would be no need to change regulation 28, another attempt at laying their dirty paws on OUR money

The dire financial position of all ANC run Municipalities and Parastatals is evidence enough of the ruin they have caused

To quote a well known Afrikaans axiom:

“Daar is geen salf meer te smeer”

The aim of Regulation 28 is to protect investors from undue risk.

So your “caring” anc government now encourages your “fund manager” to invest your funds into a sector where skills have emigrated. What’s left is the type of skill and ethics that is trying (or not) to build a Kusile power station or maintain you Municipal sewage works.

Some of the powerful players not mentioned are the unions and the Construction Mafia. We all know their contribution.

Who in his right mind will invest his own money in this debacle??

TSK!!!!!

Hopefully reputable investment houses/companies such as Allan Gray, Coronation, Old Mutual, Sanlam and the like will investigate, scrutinise and evaluate any changes to its existing product offerings. They should not be compelled, bullied or patronised into accepting any proposals that will jeopardize the investments/savings of ordinary citizens.

Ha ha; if it works for the executives’ remuneration they will go for it.

Yea we used to trust the “big four” auditing firms to do objective audits. Now we know they were in on the deals. The institutional investment houses will follow

It was only when not if the ANC regime tried to get their hands on this lovely big pot of money. Sticky Icky cleaned out the PIC with no implications. Now a veneer of respectability is being used to plunder these funds…infrastructure managed by the ANC.. a truly sound, safe , liquid and great returning investment.

Look at Medupi, Denel, SAPS etc to see what the ANCs track record is when managing infrastructure projects.

But, in fairness-as they won 6 elections in a row-the opposition can do nothing except FLEE this broken country at any cost. Go while you can as Zimbabwe/DRC/Nigeria is on the horizon here!

Infraaaaaaastructuuuuure. Long duration assets to meet long term liabilities.

i.e. lets measure performance in 20+ years time.

ESG, ESG, ESG, ESG, ESG.

End of comments.

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