Finance and Public Service Minister Fayval Williams says the Government is taking steps to encourage pension fund managers to invest more of the roughly $850 billion in invested assets under their control in private companies.

Williams spoke to the issue on Tuesday during her opening contribution to the 2026/27 Budget Debate in the House of Representatives.

“The funds held in pension accounts are long‑dated and patient funds with investors whose return horizons naturally align with long‑term national investment needs.

“At present, pension funds face a five per cent limit of total assets for investment in the equity of private companies. This constraint has materially limited the ability of pension schemes to participate in local corporate and infrastructure financing,” Williams said.

She told the House that, “beginning in the new fiscal year, we will begin a process aimed at increasing the percentage of their assets that they can invest in the equity of private companies”.

“We anticipate that together with the Financial Services Commission, we can take a small but consequential step to increase the pension fund private asset limit from five per cent of total assets to 7.5 per cent of total assets,” Williams added.

According to the minister, this represents a measured, reversible step to allow funds to begin reallocating to well‑governed private investments that match their long‑term liabilities.

“Subject to supervisory monitoring and in the absence of any unforeseen adverse consequences, we will complete the second phase of this increase to 10 per cent by April 2, 2027,” she shared.

The finance minister also shared that as at the end of September 2025, pension funds held approximately J$847.0 billion in invested assets. Of this amount, roughly J$42.4 billion (based on the current five per cent limit) is available for investment in the equity of private companies.

“Under the first phase of this change, an additional J$21.2 billion of long‑term capital will be allowed to be invested in private companies. Subject to supervisory monitoring and absent any unforeseen adverse developments, we will complete the second phase and raise the limit to 10 per cent by the beginning of the fiscal year 207/28,” said Williams.

“If we assume pension fund assets continue to grow at the recent rate of approximately eight per cent, a further J$28.2 billion would be expected to become available for investments,” she said.

-Lynford Simpson