The anticipated amendment to Regulation 28 will give fund managers the ability to invest higher portions of retirement portfolios in unlisted assets. This creates new investment opportunities for asset managers and asset owners to invest more of their clients' funds in infrastructure bonds, impact investing projects and other unlisted assets which may yield profitable returns.

Looking towards unlisted assets for positive returns

Rather than forcing asset managers to invest in government bonds, asset managers will be able to explore the additional opportunities of impact investing, government infrastructure projects and social development and invest in those that offer the most attractive profile in terms of risk and return.

Investing in well-structured and viable projects may generate superior long-term returns, while helping to finance much-needed infrastructure and social development initiatives that drive wider economic growth in South Africa.

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IRESS Limited published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 12:04:01 UTC