The Pensions Fund Act empowers the Minister of Finance to make regulations limiting the amount and the extent to which a pension fund may invest in particular assets. The Prudential Investment Guidelines of Regulation 28 currently apply to all retirement fund assets.
The aim of retirement fund investment regulation is to ensure that the savings South Africans contribute towards their retirement is invested in a prudent manner that protects the retirement fund member.
Do you need to comply with Regulation 28?
Any savings that an individual invests and continues to invest in an occupational or umbrella retirement fund, a retirement annuity fund, or a preservation pension or provident fund, are required to meet the asset allocation limits stated in the Prudential Investment Guidelines of Regulation 28.
The asset allocation limits in Regulation 28 are broadly defined as follows:
Foreign (excluding Africa) 25%
Africa (excluding South Africa) 5%
We offer a suite of investment options (some of which are Regulation 28 compliant and some of which are not - owing to the type of objective followed); which will form the underlying building blocks of your investment in the Prescient Retirement Annuity Fund, Prescient Preservation Pension or Prescient Preservation Provident Funds.
In order to ensure that your selection of investment options meets the restrictions of Regulation 28, you will only be allowed to invest in a product that is regulation 28 compliant or your own PSP.
If you require any further information, please do not hesitate to contact us on firstname.lastname@example.org