Deputy Finance Minister David Masondo has urged retirement funds, including asset managers, to rethink how they have done business in the past and assist the economy to achieve high levels of growth.
This comes as the debate rages on about the government permitting pension funds to invest 45% of their capital in infrastructure projects after the National Treasury published the final amendments to Regulation 28 of the Pension Funds Act in 2022.
Regulation 28, issued in terms of Section 36(1)(b) of the Pension Funds Act, protects retirement fund member savings by limiting the extent to which funds may invest in a particular asset or in particular asset classes, and prevents excessive concentration risk.
It also includes a framework for pension funds to allocate up to 45% of their assets to infrastructure, and further separates private equity and other assets from hedge funds in the limits to promote investment into infrastructure since these investments are often housed in alternative asset classes such as private equity and private debt.
Speaking at the Nedgroup Investments Cash Solutions Treasurers Conference yesterday, Masondo said Treasury was working on measures to encourage private investment in infrastructure projects.
