South Africa. Pension funds may now invest up to 45% of their capital offshore
During his budget address to parliament, Finance Minister Enoch Godongwana said amendments to Regulation 28 would be published in March. Regulation 28 sets out the criteria and maximum limits of where and in which asset classes retirement funds may invest.
The Budget Review document announced that local pension and savings funds may invest up to 45% of their capital offshore. This is inclusive of the 10% allowance for investments into other African countries.
The proposed amendments have been through two rounds of public consultations and are seen as an attempt to force or prescribe investments into infrastructure projects.
The minister initiated the process to amend the regulation to enable greater infrastructure investment by retirement funds and improve data reporting on such investment by the funds.
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