South Africa to let asset managers hold entire portfolios abroad under draft rules
Reuters reports a draft Synthetic Financial Centre framework would lift the 45% offshore cap for ring-fenced mandates, with comments open until November 30.
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what happened
According to Reuters, South African fund managers could place 100% of their portfolios in foreign assets through separately ring-fenced mandates. Regulators announced this on Friday, referring to a draft Synthetic Financial Centre framework published on Wednesday. Qualifying vehicles would be exempt from the long-standing 45% offshore investment limit, though that cap still applies when an institution commits its own capital. The draft is open for public comment until November 30.
why it matters
About 5 trillion rand ($301 billion) of South African portfolio assets are currently held offshore, often through overseas hubs, because local rules made managing global portfolios from Johannesburg difficult. The JSE estimates that the wider exchange-control overhaul could attract 10 trillion rand of investment over time. For the rand, this is more a structural shift in capital flows than an immediate effect, since the rules remain a draft.
market impact
Rand, JSE: looser offshore limits could send more capital abroad, adding pressure on the ZAR
tags
instruments
sources
- South Africa to allow fund managers 100% foreign assets under new framework — Reuters, 23 October 2026 at 15:49 UTC
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