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Pension Funds

Last Friday, November 19, saw the launch of the Asset Owners Forum South Africa, initiated by Batseta (Council of Retirement Funds of SA) in partnership with the US Agency for International Development, World Bank, and MiDA Advisors. The forum is a first-of-its-kind collaboration of local pension funds to support a common goal of investing in South African infrastructure and real assets for the benefit of their members, while maximising the positive socioeconomic impact of those investments. The forum was founded by 12 of the largest pension funds in South Africa with collective assets of almost R3 trillion.

The Eighty20 Credit Stress Report for the third quarter 2021, compiled in collaboration with credit bureau

XDS, shows the current balance on all consumer loans is just over R2 trillion, with half of that in mortgages, just under a quarter in vehicle finance, and the rest in unsecured loans, credit cards and retail accounts. The overdue balance on all loans is almost R200bn (9.4% of the total balance, compared with 8.8% in Q2), up from R160bn two years ago. The highest default rates are in the 18-24 year age group, where three out of five credit active individuals are in default.