You are invited to provide comment, input or objections to Draft Amendments to Regulation 28 of the Pension Funds Act – intended to encourage investment in infrastructure projects.
Regulation 28 sets the maximum percentage of a fund’s assets that can be invested in different asset classes. The proposed amendment adds the a new class; investment in domestic infrastructure projects.
10652 participants (closed 31 March 2021)
Have your say – shape the outcome.
The amendments to Regulation 28 provide government’s response to calls for retirement fund investment in infrastructure to bridge the infrastructure gap. The decision to invest in any asset class, including infrastructure, remains that of the board of trustees of retirement funds. The draft notice on amendments to Regulation 28:
- Provides specific reference to investment in infrastructure through various asset classes already permitted through the Regulation and introduces an aggregate limit for infrastructure;
- Inserts two new columns in Table 1 of Regulation 28 with limits applicable to infrastructure investments. Investment in infrastructure will be recognised within the various underlying asset categories specified in Regulation 28. This will also enable better and more accurate data for this form of investment;
- Proposes that the overall investment in infrastructure across all asset categories, may not exceed 45% in respect of domestic exposure and an additional limit of 10% in respect of the rest of Africa; and
- Limit aggregate exposure per issuer or entity to 25% of the total assets of the fund.
IN THE MEDIA
- Businesstech – The projects your retirement money could help fund in South Africa
- Moneyweb – Changes to Regulation 28 expansive rather than restrictive
- Moneyweb [listen] – How the proposed amendments to Reg 28 will affect your retirement
- Moneyweb – SA proposes Regulation 28 changes