Introduction National Treasury’s retirement’s road map revealed an unexpected turn with the release of Technical Discussion Paper B “Enabling a better income in retirement” in September 2012. The paper paints a grim picture of unscrupulous brokers who lure their clients into treacherous post-retirement products where they are subjected to complex choices, high fees and – […]
Investment Performance Report April 2012
A recent discussion paper issued by the Department of Economic Development recommended that South African retirement funds should help finance the country’s infrastructure development. To this end, the State should “regulate a substantial part of retirement funds to be invested in…development finance institution financial instruments.” This flies in the face of Regulation 28, which barely a year ago, stated unequivocally that the State “does not prescribe what assets a fund should be invested in as this would counter the principles guiding a fund to act in its best interests.” Its subsequent public commentary suggests that the Department also has a poor understanding of retirement investing principles. Does this mean the Department is ignorant on these matters, or just unprincipled?