Reg28
Getting to Grips with Regulation 28 (For information on our Namibian Regulation 28 services, please click here.) Fundamental amendments to Regulation 28 of the Pension Funds Act place complex reporting and compliance obligations on the trustees of retirement funds. Trustees must fully understand these new responsibilities if they are to integrate the...
Regulation 28: Hedge Funds Performance – The South African experience
In the previous article on hedge funds, we mentioned that the South African hedge fund industry is relatively young compared to the global market. The first South African hedge fund was launched in 1998, a fair few decades after the fund started by Alfred Winslow Jones in 1949 in the United States....
Regulation 28: Hedge Funds – Additional Scope for Pension Funds
When it comes to optimising pension fund portfolios, the new Regulation 28 of the Pension Funds Act gives trustees more arrows in their quiver. By allowing pension funds to increase their exposure to hedge funds to a maximum limit of 10% of portfolio allocation, the opportunities and potential advantages offered by hedge funds or hedge...
Regulation 28: Should SA pension funds allocate more capital to private equity?
Before the redraft of Regulation 28, the amount of capital SA pension funds could allocate to private equity was ill-defined. This was largely because regulators didn’t fully acknowledge the importance of this investment vehicle. Under the revised Regulation 28, pension funds can now invest up to 10% of their total assets in private equity. However,...
What can private equity offer SA pension funds?
Now that Regulation 28 of the Pension Funds Act allows pension funds to invest 10% of their portfolio in private equity, it is worth considering what this asset class has to offer. Internationally, it is best practice to include private equity in an institutional portfolio. In the U.S., for example, both pension funds and endowment...
Why the move to liability-driven investment?
The 'old school' approach to setting a pension fund’s investment strategy has usually been to set a target return and then structure the assets to try to match the actual performance with the targeted performance. This approach didn’t fully recognise the importance of meeting the fund’s future pension obligations. The success of...
Liability-driven investment – the only framework in today’s pension environment
You don’t have to spend a great deal of time researching global pension issues to establish that threats like longevity and adverse equity and interest rate environments have contributed to the near-demise of Defined Benefit (DB) plans. As a result, the risk of not having enough money in retirement now falls firmly on the individual...
Responsible investing – where do you start?
Learn the regulatory frameworks on integrating ESG into investments Since 2007, PF130 has actually included sections on responsible investing and clearly states: “Funds should include a policy on socially responsible investments (SRI) in their investment policy statement.” The incorporation of ESG factors into the requirements of the new Reg 28...
Regulation 28 puts responsible investing firmly on the agenda
“We are living off the Earth’s capital – we need to live off the interest.” Achim Steiner, Executive Director of the United Nations Environment Program The preamble of the new Regulation 28 of the Pensions Fund Act states that prudent investing means giving appropriate consideration to any factor that could materially affect...
