Further relaxation of exchange control and the effect on your portfolio

Sonja Saunderson, Chief Investment Officer at Momentum Investments

In the budget documents released as part of the Minister of Finance’s budget speech on 23 February 2022, Annexure F of the budget documentation contained the following:

‘The offshore limit for all insurance, retirement and savings funds is harmonised at 45 per cent inclusive of the 10 per cent African allowance. The previous maximum limits were set at 30 per cent or 40 per cent for different investors.’

This announcement effectively continues the trend towards relaxing exchange control in the past number of years. As has been the case previously, the increase in the offshore allowance makes the role of the offshore portion of portfolios ever more important in driving investment outcomes. This further validates the deep integration of our investment team with our global team and partner, Robeco, in managing our portfolios.

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