/ 25 February 2000

OFFSHORE LIMIT RISE

THE government has decided to retain the current asset swap dispensation, but to change the definition of the 15% limit from total assets employed in South Africa, to 15% of total assets. Unit trusts would be permitted to invest up to 20% of their total assets under management by way of asset swaps. Pension funds, long terms insurers and unit trusts can now make foreign currency transfers of up to 10% of the net inflow of funds during 1999. This is subject to overall limits of 15% of assets under management for pension funds and long term insurers, and 20% for unit trusts.