The Association for Savings and Investment South Africa (ASISA) says that government is unlikely to force retirement funds to invest in specific projects through prescribed assets.

Leon Campher, chief executive of ASISA, said that in recent months the various National Economic Development and Labour Council (Nedlac) partners, namely government, labour, business and community, tabled their economic recovery plans and not a single one mentioned the prescription of assets as a possible solution.

“It needs to be noted that not even the ANC discussion document on economic recovery mentioned prescription of assets as an option that should be considered,” said Campher. He added that proposals to amend Regulation 28 of the Pension Fund Act to include a separate category for retirement funds to invest in infrastructure assets does not equate to ‘prescription’.

The association, which represents the collective interests of the country’s asset managers, said that it has repeatedly made it clear that its members are opposed to the prescription of assets, it does not believe that there is an imminent threat of this happening.

“The fact that we do not believe that there is an imminent threat does not equate to ignorance,” it said. ASISA addressed some of the main concerns around prescribed assets. It noted that asset managers are not the owners of the assets that could be prescribed. The bulk of the assets that could be prescribed are owned by the retirement fund on behalf of its members.

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