Market Indicators
- JSE All Share (ALSI) 75,497.15
- Rand/Euro R 16.22
- Rand/Pound R 19.22
- Rand/US Dollar R 14.62
- Rand/Aus Dollar R 10.96
The Offshore Opportunity for Retirement Funds
South Africa’s Finance Minister, Enoch Godongwana, surprised the entire savings industry with the announcement that retirement funds could increase their offshore allocation to 45%. Previously, Regulation 28 set this at a maximum of 30% with an additional 10% allowed in Africa. African exposure was very limited, so the change effectively means an opportunity for most investors to increase their direct offshore exposure from 30% to 45%.
This is a very significant change and we expect it to have wide-ranging impacts on retirement savers, local and offshore asset managers, administration platforms and even markets. In this month’s commentary, we take a deeper look into this change and what the impact may be.
