BL Premium reports that the National Treasury gazetted proposed changes to regulation 28 of the Pension Funds Act on Friday for comment.

The changes are aimed at making it easier for the savings industry to invest in infrastructure, but do not introduce prescribed assets. Speaking to MPs on Thursday, Treasury deputy director-general Ismail Momoniat said the proposed regulation will enable trustees to invest in infrastructure, but it “doesn’t force them to, it just enables the trustees to do so at a higher level and through different ways.” Regulation 28 sets the maximum level that pension funds and life insurers can hold in various asset classes, such as property, bonds, listed shares and unlisted assets to spread risk and protect savers. But the regulation does not set a floor — or a mandatory level of investment in an asset class — for any asset class. The proposed change could introduce a specific infrastructure category of investment, which, at the moment, is done quite extensively through other asset categories. Many pension funds already invest in infrastructure, either through the listed bonds of state-owned entities or directly in projects under the unlisted assets category.

• Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)

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