The transition from fossil fuel to renewable energy will positively impact South Africa in several beneficial ways, including reducing carbon emissions, building a secure and abundant electricity supply, and creating millions of direct and indirect jobs.
Sanlam Investments’ mission to become Africa’s premier sustainable and impact investor has been accelerated with the launch of the Sanlam Investments Sustainable Infrastructure Fund. The fund, which has launched with commitments of R500-million, plans to invest in local projects that drive economic growth, market development and job growth, with an emphasis on environmental sustainability. Stable, inflation-beating returns will be delivered to investors over the long term via an easy-to-access fund structure.
Investment infrastructure is discussed broadly in the pension fund industry. But how can you check for your fund’s readiness to invest in infrastructure? Is this form of investment suitable for your fund? Malizole Mdlekeza, Pensions & Investments Actuary, Managing Director of MDM Actuaries and Chairman of the Actuarial Society of South Africa’s Alternative Investments Forum, walks you through a high-level decision-making process.
As South Africa heads into winter, the northern hemisphere heads into summer – but regardless of where you live, everything is different all over again, with experts seeming to agree that we’re closer to the end of the pandemic than we are to the beginning.
The market for bonds issued to meet environmental and social outcomes is expected to grow exponentially in South Africa within the next year. Social Bonds are expected to feature prominently, as the country looks to “build back better” post Covid-19.
Allocators of capital have welcomed government’s recent proposal to open the way for local retirement funds to invest more in infrastructure in South Africa and the rest of Africa. The proposed relaxation coincides with a notable shift in domestic and international asset allocation strategies to accommodate environmental, social and governance (ESG) opportunities and impact/infrastructure investing.
National Treasury’s draft amendment to pension fund asset allocation limits places infrastructure at the centre of future investment decisions. Dr Hendrik Snyman, an investment professional, argues that infrastructure as an asset class will benefit those retirement funds utilising it as the core of their holdings over the long term.
The National Treasury today published the draft amendments to Regulation 28 of the Pension Funds Act for public comment. This follows the 2021 Budget and 2020 MTBPS announcements that government is in the process of reviewing Regulation 28 to make it easier for retirement funds to invest in infrastructure.
Leading up the 2021 Budget speech South Africans could be forgiven for not being too optimistic about the prospects, especially when considering the Medium-Term Budget Policy Statement shared in October 2020. That concern was arguably not fully justified as the finance minister announced a budget that addressed some major concerns and a path to improvements on the debt to GDP ratio and the budget shortfall.
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za