GOJ Expands Pension Funds' Private Equity Investment Cap

• The Jamaican Senate has approved the Pensions (Superannuation Funds and Retirement Schemes) (Registration, Licensing and Reporting) (Amendment) Regulations, 2026, paving the way for a phased increase in the proportion of pension fund assets that may be invested in private company equity. The allowable allocation will rise from 5.0% to 7.5% during the current fiscal year, with a further increase to 10.0% by April 2027, subject to regulatory oversight and satisfactory market outcomes.
• Piloting the regulations, Senator Kavan Gayle said the phased approach balances investment diversification with prudent risk management.
• The Government said the reform is intended to modernise the pension investment framework by expanding access to alternative asset classes while maintaining supervisory safeguards. The increased allocation is expected to improve portfolio diversification, reduce concentration risk and enhance the long-term return potential for pension funds.
• Opposition Senator Ramon Small-Ferguson supported the amendment, noting that Jamaican pension portfolios remain heavily concentrated in Government of Jamaica securities. He argued that broader exposure to private equity could strengthen portfolio resilience while directing additional long-term capital toward sectors such as housing, energy, infrastructure and productive businesses.
• Furthermore, the measure is expected to increase the availability of institutional capital for Jamaica's private sector, supporting business expansion, job creation and long-term economic growth, while providing pension fund managers with greater flexibility to pursue diversified investment strategies within established regulatory limits.
• As of September 2025, Jamaica's pension industry managed approximately J$847Bn in assets, with the higher allocation expected to unlock more than J$21Bn in additional capital for investment in private businesses, infrastructure and innovation.

(Sources: JIS & NCBCM Research)