Page 141 - Profile's Unit Trusts & Collective Investments - March 2026

Classification of CISs Chapter 8

principle that funds compliant with Table 8.2 Revised Regulation 28
Regulation 28 of the Pension Funds
Act should be identified with a specific Overall Sub CISCA
“flag” or label, rather than being placed Asset Category Limit limits limit
in separate categories. Equities 75%
Under the revised classification
system, compliance with Regulation 28 Market cap greater than R20bn 15% 10%1
is not a factor in categorisation; instead, Market cap between R2bn and R20bn 10% 10%1
Regulation 28-compliant funds are
clearly identified by an additional flag Market cap less than R2bn 5% 5%1
or label. A comprehensive register of Unlisted equities (subject to strict valuation 15% 10%2
all Regulation 28-compliant funds is requirements)
available on Profile’s FundsData Online
website: www.fundsdata.co.za. Foreign exposure including inward listed shares 45% 45%
Since the 2013 revision, Regulation 28 Cash 100%
itself was updated in 2023, introducing Any single money market instrument issued 25% note3
important changes such as: by a South African bank
R The recognition of infrastructure Debt 100%
as a separate asset class, with
specific domestic and African On-balance sheet bank-issued corporate and 75% note3
limits.The separation of hedge public debt
funds and private equity from Public Debt 100%
“other assets,” each with distinct
allocation limits. Immovable Property 25%
R Adjustments to foreign exposure, Market cap greater than R10bn 15% note4
unlisted assets, and housing
loans, along with a new issuer Market cap between R3bn and R10bn 10% note4
concentration cap. Market cap less than R3bn 5% note4
R An explicit prohibition on crypto
assets for pension funds. Commodities 10%
These 2023 amendments mean that Commodities other than gold 5% note5
while the ASISA classification flag still Kruger rands, gold and other commodities 10% note5
identifies Regulation 28-compliance, listed on an exchange, including exchange
the underlying rules defining compliance traded commodities
have evolved, and fund allocations must
now reflect the updated limits and new Hedge Funds 15%
asset categories. Hedge FoFs and Private Equity FoFs (per fund) 5% note5
The South African–Multi Asset
category has since 1 October 2025 Limit per individual fund (ie, not a FoF) 2.5% note5
included the following sectors: Private Equity 10%
R Multi Asset – Flexible funds Funds of private equity funds 5% note5
R Multi Asset – High Equity funds Private equity funds 2.5% note5
R Multi Asset – SA High Equity funds
R Multi Asset – Medium Equity funds Housing Loans 65%
R Multi Asset – Low Equity funds Loans granted to members directly by the fund 5% note5
R Multi Asset – Income Funds 1 Greater of percentage or 120% of free float index weighting but no more than
R Multi Asset – SA Income Funds 20% of fund (or 35% for specialist funds)
R Multi Asset – Unclassified 2 Max 5% in any one unlisted entity
3 See FSB notice 90 of 2014
The equity exposure bias in the 4 Limits as per other equities for listed property shares
sector names – a feature preserved 5 Collective investment schemes cannot invest directly in these categories
from the old prudential categories –

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