Regulation 28: South African savers are being shafted – Magnus Heystek

The hard-hitting Magnus Heystek pulled no punches on his return from Mauritius, where he says economic growth is booming led by a surge in infrastructure and development. South Africa’s economy paints a different picture, one that’s been at a standstill for the better part of a decade. As a result of amendments to Regulation 28 – which limits the extent to which retirement funds may invest in particular assets or asset classes – South African savers have been unduly punished. The amendments limit foreign investment exposure to 30% and have been a drag on relative global market performance, giving rise to the raging bull market since the recovery of the global financial crisis. Unfortunately, relative to most other economies, South Africa’s economy and the stock market have performed poorly. Heystek notes that the majority of retirement investment products in South Africa have been unable to beat the inflation rate, meaning a relative loss of purchasing power and an increasingly poor population.