2 February 2023
Glacier has extended the availability of hedge funds as an underlying investment option to the Personal Portfolios Retirement Annuity and Preservation Funds. They were previously (since the beginning of 2021) only available on endowment and living annuity investments.
*Available only to appropriately approved independent financial advisers.
Regulation 28 changes
Regulation 28 of the Pension Funds Act exists to ensure that those saving for retirement do so in a prudent manner, and that money invested is diversified across the different asset classes. Previously, hedge funds - together with private equity and other - had a combined limit of 15%. Earlier in 2022, it was announced that the overall combined limit would fall away and, effective 3 January 2023, hedge funds will be viewed as an asset class on their own, with an exposure limit of 10%. Exposure is further limited to 5% per fund of hedge funds and 2.5% per hedge fund.
Retirement funds will only be able to invest in hedge funds approved in terms of the Collective Investment Schemes Control Act (“CISCA”).
Glacier’s range of available hedge funds
Given their low correlation to other asset classes, hedge funds have the ability to cushion an investment portfolio in times of market stress. We are excited about the opportunity this now also creates for clients saving for retirement.
Access Glacier's hedge fund brochure
