Regulatory Alerts2018-03-31
PF Circular 84: Investment Limits in Unit Trust Schemes
The South African Financial Services Board issued Circular PF 84 to clarify investment allocation limits for self-administered pension funds investing in unit trust schemes under Regulation 28 of the Pension Funds Act. The directive permits funds to allocate up to 25 percent, 75 percent, or 95 percent of their fair asset value to single unit trusts depending on the specific regulatory item, provided that combined allocations for items 6 and 7 do not exceed 90 percent and underlying assets strictly match enumerated categories. Fund administrators must distribute this circular to their auditors and valuators to ensure compliance with these clarified asset diversification thresholds.
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