nottheaverageactuary

Actuarial news and views from Cape Town and beyond

African Bank – effect on Reg 28?

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Here is another perspective on what the change in the market cap of African Bank will do to pension funds.

Do you think that the concern about equity exposure is valid? How much would the fund have had to hold in African Bank prior to the collapse in order for this to be a problem?

What about the concern about debt? What do you think, given the division into good bank and bad bank and the 10% “haircut” that SARB is now proposing?

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