Page 147 - Profile's Unit Trusts & Collective Investments - September 2025

Classification of CISs Chapter 8

At one time, the then Asset Table 8.2 Revised Regulation 28
Allocation sector consisted of just
two sub-sectors: Flexible funds and Sublimits /
Prudential funds (ie, Regulation 28 Per-Fund /
compliant funds). For South African Per-Entity
funds, a decision was taken in 2003, Asset Category Overall Limit Limits
however, to break the Prudential Equities 75% –
sector into a number of narrower Market cap > R20 bn 15%
sectors in order to group together
the significantly different equity Market cap R2 bn–R20 bn 10%
exposures across the category: Market cap < R2 bn 5%
Prudential–Low Equity, Prudential– Unlisted equities 10% 2.5%
High Equity and Prudential–Medium
Equity. A Prudential–Variable Equity Infrastructure 45% domestic Max 25%
sector was added in 2008. + 10% rest of per issuer/
In 2013, the Association for Africa entity (excl.
govt)
Savings and Investment South
Africa (ASISA) revised its fund Hedge funds (CISCA-approved 10% 10%
classification standard to improve only)
clarity and consistency. A key Private equity 15% 15%
change was the adoption of the Foreign exposure (including 45% –
principle that funds compliant inward listed shares)
with Regulation 28 of the Pension
Funds Act should be identified with Cash 100% –
a specific “flag” or label, rather than Any single money market instrument (SA bank) 25%
being placed in separate categories.
This addressed potential confusion Debt Instruments including “100% for debt –
from the previous “Prudential” Islamic Debt Instruments instruments
issued
categories, where only certain by or
funds (such as money market and guaranteed
bond funds) were automatically by the
Regulation 28 compliant, and Republic,
investors could mistakenly assume otherwise
that other categories were not. 75%”
Under the revised classification Market cap > R20 bn 25%
system, compliance with
Regulation 28 is not a factor Market cap R2 bn–R20 bn 15%
in categorisation; instead, Market cap < R2 bn 10%
Regulation 28 compliant funds are Unlisted debt instruments 5%
clearly identified by an additional
flag or label. A comprehensive Immovable Property 25% –
register of all Regulation 28 Market cap > R10 bn 15%
compliant funds is available on Market cap R3 bn–R10 bn 10%
Profile’s FundsData Online website:
www.fundsdata.co.za. Market cap < R3 bn 5%
Since the 2013 revision, Commodities 10% –
Regulation 28 itself was updated Other commodities (excl. gold) 5%
in 2023, introducing important
changes such as: Gold 10%
R The recognition of Other Assets 2.5%
infrastructure as a separate Housing Loans 65% (new Loans
asset class, with specific loans only) directly to
domestic and African limits. members:
5%

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