South Africa to allow fund managers 100% foreign assets under new framework
South African fund managers will be able to hold 100% of portfolios in foreign assets under ring-fenced mandates, regulators said on Friday, in a new framework that exempts qualifying vehicles from a longstanding 45% offshore investment cap.
South African regulators announced on Friday a new framework allowing fund managers to hold 100% of their portfolios in foreign assets, bypassing the longstanding 45% offshore investment cap. This change, unveiled by the South African Reserve Bank, National Treasury, and the Johannesburg Stock Exchange, exempts qualifying vehicles from the cap once they are inside a registered mandate.
The regulation would permit asset managers, banks, insurers, and private equity firms to manage global portfolios from a South African base in any currency. However, the originating institution would still count the investment towards its prudential foreign limit. Stuart Theobald, executive chairperson of Krutham, emphasized this as the "most fundamental change" in the framework, which could position South Africa competitively.
The overhaul aims to attract 10 trillion rand in investment over time by addressing the difficulty of managing fully global portfolios from Johannesburg. The framework, part of a broader overhaul of South Africa's exchange controls, will remain open for public comment until November 30.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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