ANC eyeing pension assets

Lew Skannen

Lew Skannen

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https://www.moneyweb.co.za/news/south-africa/anc-still-eyeing-pension-assets/

The ANC is once again eyeing the notion of prescribed assets, where money managers will be forced to invest a portion of their funds in state-mandated areas and/or companies.

In its 2019 Election Manifesto, the party says it will “Investigate the introduction of prescribed assets on financial institutions’ funds to mobilise funds within a regulatory framework for socially productive investments (including housing, infrastructure for social and economic development and township and village economy) and job creation while considering the risk profiles of the affected entities”.

In a note to clients, Intellidex’s Peter Attard Montalto says that the “more specific language on prescribed assets than expected” was a “surprise”.

He says that while the idea is in line with Nasrec policy “its more explicit exposition again shows a win for the Zuma faction in the manifesto formation process, and should be a wake-up call for the local asset management community that the issue of prescribed assets is alive even if it will not be pushed forwards with the current leadership of National Treasury”.

Among the resolutions adopted at the ANC 54th National Conference in 2017 was that: “Government should introduce measures to ensure adequate financial resources are directed to developmental purposes. A new prescribed asset requirement should be investigated to ensure that a portion of all financial institutions funds be invested in public infrastructure, skills development and job-creation.”
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Regulation 28 is a reason why I invest nothing in pension funds that's not compulsory. Our pensions are already borked. Most of my investments are in diversified global funds.
 
If this happens, people will drastically cut their retirement contributions. At least for investments in this country. People are already saving and imvesting too little. Will just worsen the problem.
 
Meh. Most of us die before retirement age anyways.
 
party says it will “Investigate the introduction of prescribed assets on financial institutions’ funds to mobilise funds within a regulatory framework for socially productive investments ...
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Translation: "the party is investigating forcing tax payers to fund our looting".
 
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