SOUTH AFRICA - Proposals from South Africa's president Mbeki (pictured) that the billions of dollars lying in pension funds should be used in developing the country's infrastructure, have been met with caution by one of the country's leading consultants.
Mbeki floated the idea in a speech to the World Chamber of Commerce in Durban on Tuesday.
Wayne Hilton, principal consultant at Alexander Forbes Asset Consulting, said the proposals were not a new idea and that the government had been trying to persuade funds to invest more of their money in infrastructure projects for some time.
He said: “I don’t think many funds are going to take this up. This is because they have a fiduciary responsibility and are therefore bound to invest where they think they will get the best returns.”
He went on to say: “Unless the government actually starts enforcing this it is unlikely it will catch on of its own accord.”
This week's edition of Professional Pensions is out now
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