Featured Speaker at PI Africa 2025
Q: What key industry trends from the past year will you highlight at PI Africa 2025 and how are they affecting pension fund investments and fund growth?
Leslie Ndawana: We have seen a continuous increase in offshore allocations in African pension funds, particularly in South Africa, following the increase in the permissible regulatory limit on offshore investment by SA pension funds. The volatility in both the local and global markets has also seen various big pension funds moving towards building resilient portfolios through the use of unconventional strategies such as private equity, hedge funds and private debt instruments in portfolios. The increase in offshore allocations and leveraging alternative investments has seen some pension funds achieve alpha in challenging market conditions. However, this comes at the opportunity cost of using the capital allocations locally for local economic development. The two-pot system meant to balance the emergency cash needs relative to preservation for income at retirement is another topical issue in South Africa, and some pension funds have been reviewing their investment policy statements/strategies to accommodate these two competing imperatives. However, the outcomes of these reviews are heavily dependent on the asset/liability profile of these funds.
Q: How is the NFMW leveraging innovation and strategic approaches to navigate the evolving pension industry landscape?
Leslie Ndawana: NFMW, as a retirement fund in the local government sector, our liability profile has proved to be very long-term with relatively manageable morbidity and mortality rates. Unlike other pension funds, there is less employee mobility in the local government sector compared to the private sector. NFMW is leveraging these elements to create holistic financial solutions and non-financial welfare programmes that address our members’ immediate and long-term needs. This is possible through innovatively blending the benefits of good morbidity/mortality experience through implemented self-insurance structures and the resilient investment portfolios created through increased use of alternatives, albeit with sufficient built-in liquid assets.
Join us at PI Africa 2025 to hear more from Leslie Ndawana and other thought leaders on the forefront of investment innovation, risk management, and strategic asset allocation. Stay ahead of market shifts, discover new opportunities, and sharpen your competitive edge—only at PI Africa 2025, brought to you by AME Events.
