ASSET ALLOCATION
Treasury to raise offshore investment thresholds, with an eye on Africa
The Treasury is to increase the prudential limits on offshore investments for funds managed by institutional investors by five percentage points for all categories, including the allowance for investments in Africa. The limits for collective investment schemes, investment managers and long-term insurers will rise from 35% to 40% and for nonlinked long-term insurers and retirement funds from 25% to 30%. An additional allowance is available to all institutional investors for investment in Africa, and this is increased from 5% to 10%. Treasury chief director for financial markets and stability Roy Havemann said that the last significant increase in the allowance for foreign investment by domestic funds was in 2010. Limits are usually increased during times of rand strength and heightened business confidence. Havemann said most institutional investors had not yet reached the current limit, so the Treasury did not fear large outflows as a result of the increase in the limits, given the l...
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