SOUTH AFRICA - The R30bn ($3.1bn) Engineering Industries Pension Fund is to review its investment strategy in January next year and may allocate some of its assets to alternative investments.
Pension fund manager Edward Jacobs said the exercise may lead to a review of the existing investment manager line-up but added that he did not want to pre-empt this since the managers were currently performing according to the fund’s requirements.
Investment analyst and portfolio manager John Symons said the fund may invest in alternative investments such as offshore hedge funds, but this would depend on the budget announcement in February 2002 when the Government is expected to decide whether it will relax the laws on offshore investing.
Symons said he hoped the offshore limit would be extended as the fund was reluctant to shift assets from the offshore equity portfolio into a hedge fund portfolio. He explained that the fund was already over the offshore limit of 15%. “As soon as the announcement is made, hedge fund investing will become a top priority for the fund,” he said.
The Engineering Industries Pension Fund is invested in local equities (57%), offshore equities (12%), local bonds (24%), offshore bonds (3%), property (2.5%) and cash (1.5%).
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