The National Treasury today announced the final amendments to Pension Fund Rule 28. To that end, the amendments provide that the pension fund can operate 45% of the coast.
The gap between hedge funds and private equity has been split to further facilitate investment in infrastructure and economic development.
There is now a separate and higher allocation for private equity assets, which has increased by 15% to 10%.
Pensions are limited to 25% of all assets to limit exposure to not only the infrastructure but also to one entity.
Outside the boundaries of the legal entity, there is one exception but the debt documents and loans issued by the Republic Government and any debts or loans certified by the Republic.
Housing loans to pension fund members will be reduced from 95% to 65% only in the case of new loans. This is to stop fund members from abusing the housing loan scheme.
As a party, only investments in funds approved by the Joint Investment Programs Control Act (CISCA) are allowed.
“The regulations expand the scope of investments that can be made to the pension fund but will continue to leave the final decision on any investment to the trustees of each fund, for those who decide on an investment policy for any fund,” the National Treasury said in a brief statement to the Gazette.
“Retirement funds will continue to be barred from investing in crypto assets. Excessive volatility and uncontrolled behavior of crypto assets requires recent careful market volatility as such assets require.”
The amendments will take effect on January 3, 2023, allowing regulators and fund managers to comply with the new rules.