Magda Wierzycka says Reserve Bank’s offshore investment cap rules a ‘disaster’ for active managers
The Sygnia founder says as active managers struggle to justify their higher fees, the new regulations are likely to provoke fierce resistance
New rules effectively removing caps on how much local investment vehicles such as pension funds can invest offshore by using exchange-traded funds (ETFs) is likely to be a disaster for the active managers, according to Sygnia founder Magda Wierzycka.
In an environment where many companies are de-listing from the JSE and managers who pick individual shares, as opposed to tracking indices, are struggling to justify the higher fees, the regulations are likely to provoke fierce resistance, said Wierzycka, whose first business was a fund of hedge funds, but has been increasingly focusing on cheaper index trackers...
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