Moneyweb reports that Finance Minister Enoch Godongwana announced during his budget address to parliament on Wednesday that amendments to Regulation 28, which sets out the criteria and maximum limits of where and in which asset classes retirement funds may invest, would be published in March.

The Budget Review document advised that local pension and savings funds would be able to invest up to 45% of their capital offshore. This would be inclusive of the 10% allowance for investments into other African countries. Previously, funds could only invest 30% of their portfolio outside Africa, and the amendment means they can now invest up to a maximum of 35%. The minister initiated the process to amend the regulation to enable greater infrastructure investment by retirement funds. Meantime, National Treasury will later this year publish draft legislation regarding its long-awaited ‘two-pot’ retirement structuring, which will aim to give people in financial distress part of their pension savings before they retire. Godongwana said that, having released a discussion paper last year, a consultation process was ongoing and he foresaw that draft legislation would be published for comment around June. The proposed restructuring will allow people to access a third of their savings for emergencies. However, two-thirds of retirement savings will have to be retained in a compulsory retirement fund, from which no withdrawal before retirement will be able to be made.

• Read the full original of the report in the above regard by Ryk van Niekerk at Moneyweb

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