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Retirement Funds Under the Spotlight

June 11, 2019

Department of Trade and Industry

11 June 2019

Retirement funds can help to develop the South African economy through investment in real assets.

The trade and industry minister, Ebrahim Patel, declared this during an address at a conference hosted by Batseta – the Council of Retirement Funds for South Africa in Johannesburg.

He added that partnerships with retirement funds can increase GDP growth and returns to pensioners.

The minister described retirement funds as an essential part of South Africa’s capital market environment and called for the role they play to be better appreciated.

“Aside from underpinning equity and debt markets, they have a role to play in the development of South Africa through investment in real assets. Government’s investment drive is looking not just to Foreign Direct Investment but also and very strongly to domestic investment to stimulate
economic growth,” said Patel.

The minister called on pension fund trustees to ensure good governance and support increased private sector investment in the economy.

He added that trustees had a responsibility towards their members to contribute towards increasing the growth rate in order to realise the pension promise.

“A growing economy lifts your entire portfolio, hence helping to increase both the value of, and the annual return on the portfolio, to the benefit of retirement fund members,” he said.