Retirement fund trustees will have to up infrastructure investment skills

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Retirement funds will have to invest in upskilling trustees to navigate infrastructure investing following the gazetting of Regulation28 amendments: Andrew Davison of Actuarial Society of South Africa. financialplanning Reg28

Retirement funds will have to invest in upskilling trustees to empower them to navigate the complex world of infrastructure investing opened up by the long-awaited gazetting of the amendments to Regulation 28 of the Pensions Fund Act. The new Regulation 28 investment limits allow retirement funds to invest up to 45% of assets in South African infrastructure projects, effective from the beginning of January 2023.

The right infrastructure projects have the potential to deliver stable, inflation-beating returns over the long term that align well with members’ needs. At the same time, increased investments in infrastructure projects will also be good for South Africa’s economic growth. An important point for trustees to note in the new regulations is the requirement for retirement funds to report on their investments in infrastructure.

 

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