Retirement funds are wary to invest in SA's infrastructure - here is why

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Sanlam Corporate's research shows that standalone retirement funds would invest up to 6.6% on average; umbrella funds are willing to invest 4.7%.
Sanlam Corporate's research shows that standalone retirement funds would invest up to 6.6% on average; umbrella funds are willing to invest 4.7%.
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Efforts to attract pension funds' monies into infrastructure might have a minimal impact on clearing South Africa's infrastructure deficit if government can't convince retirement funds trustees that it's a deal worth buying into.

In February, National Treasury published the draft amendments to Regulation 28 for public comment. The proposed review of Regulation 28 is to make it easier for retirement funds to invest in infrastructure.  

But research gathered by Sanlam Corporate in its 2021 retirement benchmark survey shows that even though funding infrastructure has become a hot debate in SA, standalone retirement funds would invest up to 6.6% on average into infrastructure, and umbrella funds are willing to invest 4.7%.

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