No sense in SARB suspending Circular 15/2020. If I wanted to ‘circumvent’ 30% limit on offshore investments now I would invest 25% SA bonds, 30% Sygnia Itrix 500 Index ETF, 45% in Naspers, BAT, Richmond and some other ‘pretend’ SA companies. Magic 75% offshore exposure portfolio. Rather focus on incentivizing/encouraging SA retirement funds to invest in the real SA economy via infrastructure debt, VC funds etc. Small exposure due to risk but a real creator of jobs. This is not an advocacy for prescribed assets.

I now have the letter. ASISA misrepresented itself as voicing the opinions of “the industry”. We will publish all of it later today. I am still waiting for ASISA to confirm which members of ASISA were involved in drafting the letter. They did not consult all members.@tito_mboweni

https://twitter.com/Magda_Wierzycka/status/1331618527720198146

Suspension has prejudiced all South African investors who could benefit from greater diversification, lower fees and a strong rand if allowed to invest now. Large asset managers cannot be allowed to operate as a cartel against the interests of their own clients.

It scares me that so many people are willing to talk about Regulation 28, SARB and ETFs with limited knowledge. Sygnia obtained a legal opinion from one of the top 4 legal firms before making any statements. 1. SARB re-classified inward listed ETFs referencing foreign assets (eg Sygnia Itrix S&P500 Index ETF) as domestic assets for institutional investors, trusts, partnerships and others. This means they no longer fall under 30% or any other prudential limit on foreign investments.