October 2018

26Oct

South African state pension fund CEO denies corruption allegations

The chief executive of South Africa’s state pension fund denied corruption allegations on Thursday, as a judicial inquiry into governance at the 2 trillion rand ($137 billion) fund prepares to get under way. The Public Investment Corporation (PIC) is Africa’s biggest pension fund and the biggest investor in South Africa’s economy, holding a large volume of bonds issued by government and state-owned firms and equity stakes in some blue-chip companies. President Cyril Ramaphosa ordered an inquiry into the fund after opposition...

October 26, 2018
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24Oct

S.African pension fund buys majority stake in Africa’s biggest cattle firm

South Africa’s state pension fund and a local black investment firm have bought a majority stake in Africa’s biggest cattle company for 5.2 billion rand ($360 million). The Public Investment Corp. (PIC), Africa’s largest investment fund and the biggest investor in South Africa’s economy, said on Tuesday it had bought a majority share in Karan Beef alongside Pelo Agricultural Ventures, a black-owned agriculture investment firm. President Cyril Ramaphosa has made the agriculture sector one of his top growth priorities as he...

October 24, 2018
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19Oct

South Africa. Pensions of more than 80‚000 security guards at risk

The Private Security Sector Provident Fund (PSSPF) is fighting 315 court battles against employers who are failing to comply with rules‚ putting the pensions of more than 80‚000 security guards at risk. The fund has more than 242‚600 registered members‚ of whom over 2‚500 are not complying with the rules. As a last resort‚ these companies are handed over to the fund’s attorneys who either resolve the matter by agreement or through litigation. The fund says non-compliance by employers is...

October 19, 2018
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18Oct

South Africa’s Ramaphosa orders inquiry at $142 billion state pension fund

South Africa’s President Cyril Ramaphosa on Wednesday appointed a judicial inquiry into the 2 trillion rand ($142 billion) state pension fund, a government gazette said, following corruption allegations. The PIC is Africa’s biggest pension fund and the biggest investor in South Africa’s economy holding a large volume of bonds issued by government and state-owned firms. The gazette notice said it will investigate “persistent and continued negative reports about alleged improprieties regarding investments” by the Public Investment Corporation (PIC), which manages assets...

October 18, 2018
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16Oct

South Africa Loses QROPS Status For Expat Pensions

South Africa has dropped off the list of financial jurisdictions offering QROPS expat offshore pensions. The latest HM Revenue & Customs QROPS List published on October 15, 2018, confirms the removal of the last QROPS based in South Africa. The ABSA Group Pension Fund was the final South African QROPS. Neither ABSA or HMRC have commented about the removal. Generally, QROPS are delisted for three main reasons: HMRC is probing the administrative or tax status of the scheme The last member has drawn down on...

October 16, 2018
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03Oct

South Africa. Nearly half of SA’s workforce estimated to have no retirement plan – survey

About 41% of economically active South Africans are estimated not to have any retirement plan in place, according to a survey by 10X Investments. It defines "economically active" people as those with a monthly income of more than R7 600. The survey went out to over a million South Africans and, according to 10X, this serves as a representation of the 11.9 million economically active South Africans in the country. The survey estimates that more than 40% of economically active women across...

October 3, 2018
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02Oct

South African state pension fund’s assets grow 8.6 pct

The value of assets managed by South Africa's state-owned pension fund rose by 8.6 percent in the year to March 2018, supported by a diversified investment strategy, the fund said in its latest annual report on Monday The Public Investment Corporation (PIC), which manages pensions of civil servants and is Africa's biggest pension fund, said assets under its custody grew to 2.08 trillion rand ($147 billion) from 1.91 trillion rand the year before. "Through prudent investment decision-making, underpinned by diversification, robust...

October 2, 2018
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September 2018

20Sep

South Africa’s state pension fund invests $100 million in Afreximbank

South Africa's state pension fund said on Thursday it would invest $100 million to buy shares in African Export-Import Bank (Afreximbank) as part of the pension fund's plan to invest in the rest of the continent. The Public Investment Corporation (PIC), which manages roughly 1.9 trillion rand ($130 billion) of civil servants' pensions and is Africa's biggest pension fund, said it would acquire Class B shares in Afreximbank. The PIC said the investment was part of its plan to invest 5...

September 20, 2018
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06Sep

South Africa. PFA decisions can now be appealed with the Financial Services Tribunal

Until recently PFA determinations could only be taken on appeal to the High Court - at great cost - within six weeks of the decision. The Financial Sector Regulation Act, 9 of 2017 (“FSR Act”) considers the Pension Funds Adjudicator as a “decision-maker” and his/her decisions are “decisions” as respectively defined in paragraphs (e) and (d) of section 218 thereof. This section came into effect on 1 April 2018 along with the FSR Act. Thus, the tribunal is now in a...

September 6, 2018
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August 2018

29Aug

South African expats get access to international living annuity

South Africans living abroad and invested in South African retirement annuities (RAs) will be able to transfer their investment to a living annuity with full offshore exposure through investment group Sable International. On retirement, South Africans with RAs can take out a third as a lump sum and transfer the balance to a living annuity where they can draw down 2.5% to 17.5% per year. Their RAs were invested in portfolios with a maximum of 30% offshore exposure in terms of Regulation 28, and while this threshold does not apply to living annuities, most providers keep...

August 29, 2018
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