Retirement savers will soon be able to diversify further into offshore markets, but whether to do so is no longer clear cut. Finance Minister Malusi Gigaba said in his budget speech this week that the offshore allocation and the Africa allocation for institutional investors such as retirement funds and unit trust funds would be increased by five percentage points. A circular giving effect to this was published by the Reserve Bank on Wednesday. It means retirement funds governed by investment limits in terms of the Pension Funds Act can increase offshore allocations. Roy Havemann, chief director for financial markets and stability at the Treasury, says the new limits offer greater diversification of investment in a wider range of asset classes as well as jurisdictions that may be yielding higher returns while balancing the need to protect you from overexposure to volatile global markets. For retirement savers this means retirement funds will be able to invest 30% offshore instead of ...

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