for subscribers

Finding offshore flexibility

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town - Not everyone is a fan of paternalistic prescriptions that restrict investors’ choice of where to invest their money.

Regulation 28 of South Africa’s Pension Funds Act imposes limitations on the extent to which pre-tax income can be invested in equities, bonds, property and cash. More contentious is the 25% cap on a fund’s offshore investment allocation, which limits investor’s ability to hedge against slumps in the local currency.

Considering that South Africa contributes less than 0.05% to global gross domestic product and less than 1% of world stock market capitalisation, these restrictions clearly do impose limitations on your ability to invest abroad.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.01
(-0.11)
ZAR/GBP
21.86
(+0.22)
ZAR/EUR
19.91
(-0.18)
ZAR/AUD
12.12
(-0.34)
ZAR/JPY
0.16
(+0.22)
Gold
1883.08
(+0.02)
Silver
23.80
(+0.22)
Platinum
876.00
(-0.45)
Brent Crude
42.88
(+1.08)
Palladium
2270.50
(+1.03)
All Share
54571.01
(-0.27)
Top 40
50419.44
(-0.31)
Financial 15
9991.13
(+0.59)
Industrial 25
73766.78
(-0.30)
Resource 10
53977.77
(-0.71)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1383 votes
It depends on how the funds are used.
73% - 8960 votes
No. We should have gotten the loan elsewhere.
16% - 1979 votes
Vote