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From Kirsten Bischoff, Opalesque New York:

Up until now, in South Africa, pensions have been regulated in regards to how they may allocate to alternative investments. Regulation 28 is an often-discussed topic during the Opalesque South Africa Roundtables. Earlier in 2010, the group of hedge fund managers who gathered to discuss market and industry issues and expressed frustration at the rule that up until now, limited pensions to 2.5% portfolio allocations to alternatives (in total – further divided into private equity, hedge funds, etc), and hope that expected changes would soon be rolled out and allow for larger investments.

That wait appears to be over. 2nd draft proposals relating to the revamp of Regulation 28 were announced last week by the South African National Treasury.

According to Africa based hedge fund and private equity fund administrator IDS Group, the proposed changes are more significant, “doubling if not trebling the amounts pension funds will be able to invest into alternative products,” said the firm in a statement.

The proposals will allow pension funds to invest up to 10% into hedge funds or 10% into private equity, although together the combination of investments cannot exceed 15% of the assets of the pension fund.

“I am delighted that South Africa is coming into line with international standards. Whilst these are still proposals it is a sig......................

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