Local fund managers have built up South African equities despite the weakness

Most of the private and institutional capital is held in conventional multi-asset or balanced funds, with total listed exposure around the 70% level, including equities, bonds and real estate.

The regulations for pension funds limit the maximum exposure to listed shares to 75%, but do allow a maximum of 25% to be additionally held in listed real estate.

The latest RMB survey of local balance funds found that the estimated average allocation of offshore assets continued to rise, reaching 41.5% at the end of the first quarter of this year. This is an increase of more than 11 percentage points since the amendment of Article 28 of the Pension Fund Act. The amended regulations increased the offshore limit from 30% to 45%, with effect from January 2023.

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