Draft amendments to regulation 28 of the Pension Funds Act, published by the Treasury last month, will allow retirement funds to invest up to 45% of their assets in infrastructure, opening up a huge potential source of funding for domestic infrastructure projects. But will this help bridge the infrastructure gap, as Treasury hopes?

SA retirement funds are subject to quantitative investment limits, aimed at promoting diversification and limiting the risk of bubbles emerging from too many assets chasing too few opportunities. Though these limits are generous for “mainstream” asset classes (for example, funds may invest up to 75% of their assets in equities or in non-governmental debt instruments), “alternative assets” get short shrift. Funds may invest no more than 15% in private equity, hedge funds and “other assets” combined...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.