PENSION funds will from next year be permitted to invest 45% of their capital in infrastructure projects, the National Treasury has announced.
This comes after the Department on Tuesday published the final amendments to Regulation 28 of the Pension Funds Act.
Regulation 28, issued in terms of section 36(1)(bB) 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.
The Treasury said the regulations widen the scope of potential investments for retirement funds but continues to leave the final decision on any investment to the trustees of each fund, who determine the investment policy for any fund.
“These amendments follow two rounds of public comments in 2021. The aim of the amendment is to explicitly enable and reference longer term infrastructure investment by retirement funds, by increasing
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